Bankless 128 - Scariest Macro Setup In 20+ Years | Luke Gromen
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Jul 18, 2022 
Luke Gromen, a seasoned macro analyst and founder of Forest for the Trees, dives into the dire macroeconomic landscape, citing the scariest setup he's seen in over 20 years. He discusses the implications of the sovereign debt bubble and how it mirrors historical crises. Gromen illuminates potential outcomes for the U.S. economy and investors, emphasizing the pivotal role of energy prices and the dollar. He also shares strategies for navigating this volatility, encouraging unlevered, diversified investment approaches to weather the impending storm.
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Scariest Macro Setup
- This is the scariest macro setup Luke Gromen has seen in 27 years.
- It's a confluence of factors like a sovereign debt bubble, peak cheap energy, and geopolitical tensions.
End of the Road
- The current macro situation presents a binary choice: deflationary collapse or aggressive money printing.
- Money printing is the likely outcome to prevent sovereign insolvency, mirroring emerging markets.
How We Got Here
- The current macro environment is a result of human nature, optimism, and a debt-backed system requiring constant inflation.
- Political incentives discourage addressing issues until a crisis emerges, leading to cyclical problems.