Porter & Co. Black Label Podcast George Gammon - America's Debt Crisis
Aug 4, 2025
George Gammon, an influential investor and educator known for his insights on macroeconomics, dives into the murky waters of America's debt crisis. He discusses the real threat of government spending over bond markets and debates the potential insolvency triggered by inflation. The conversation veers into geopolitical risks and how foreign policy could provoke major repercussions. George also shares compelling ideas on shrinking government to foster wealth while highlighting potential black swan events that could shake the foundations of trust and markets.
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Baltimore's Social Collapse And Personal Encounters
- Porter describes shocking social breakdown in Baltimore: high homicide, truancy, illiteracy, arrests, and public-health crises.
- He recounts personal violent encounters and argues drastic intervention is required to restore safety.
Treasury Yields Follow Growth, Not Supply
- George Gammon argues treasury supply doesn't determine yields; growth and inflation expectations do.
- He shows long-term 10-year yields track nominal GDP, not absolute debt supply.
Banks' Arbitrage Keeps Yields Stable
- Gammon explains banks and the Eurodollar system mechanically absorb treasury supply by arbitraging funding spreads.
- This bank-driven demand keeps yields near nominal GDP until the monetary system changes.