In financial markets, the denominators are not the same; while most people assume the dollar is equivalent to oil, they are distinct entities. The speaker emphasizes the importance of considering both the dollar return and the real return in investments. They argue that the value of assets like gold and Bitcoin are tied to the energy expended in mining and refining them. This insight challenges the common perception that the dollar and oil are interchangeable and highlights the need to consider multiple factors when evaluating investment returns.
“Energy is the base layer of money” - that’s how our guest Luke Gromen puts it in today’s episode.
Luke is an Author and Investor who gives us a completely new way to look at money, through the lens of energy costs.
The essential learning of today’s show is that you can’t understand money until you understand energy markets. Apart from that Luke explains why the price of oil is about to force a monetary system change, why the 60/40 portfolio is dead and much more.
0:00 Intro 5:57 Luke’s Thesis 12:23 Energy lens 23:23 Arc of the Dollar 28:31 Why Oil? 31:31 Energy as a Denominator 38:12 Energy Price Changes 45:31 Energy Miracles 59:22 Monetary System Change 1:10:41 Capital Controls 1:18:12 Future of the US 1:24:56 How to Prepare 1:30:37 Closing & Disclaimers