Macro investor Luke Gromen says the US government will soon be forced to print more money to address its rising debt and obligations.
In a new interview with Peter McCormack on the What Bitcoin Did podcast, Gromen says that with the combination of diminishing productivity and rising costs, the US will face a simple choice between printing more money or defaulting on its debt.
Gromen, the founder and president of investment research firm Forest for the Trees (FFTT), says that cuts to public entitlements to balance the US budget would be politically and practically impossible. Cutting defense spending is even more far-fetched, the investor says, leaving money printing as the final option.
“[People say] they’re just going to have cut entitlements. It’s not going to happen. It’s not going to happen, in my opinion. So then what’s left? Print the money, do the QE (quantitative easing). Slash defense? They’re not slashing defense. All that’s left is [printing money]…
They’re not going to cut the entitlements, they’re going to print the money, and they’re going to print the money with oil at $90 or $84 or wherever it is, and they’re going to print the money with Bitcoin at $35,000. They’re going to print the money.
And people say ‘They wouldn’t do that because that means they’re going to have to do yield curve control and that means you’re going to have significant inflation, and the US inflation is going to look like Argentina…’
It’s like yeah, that’s what’s going to happen, because there’s only two things you can cut here in the US: entitlements or interest. That’s it. You can try to cut defense, [but] good luck being the guy who raises his hand right now and says ‘let’s give Israel and Ukraine a pat in the ass and say hey go get’em guys’ and leave.”
Gromen recently said that relentless QE and a potential pivot from the Federal Reserve will create an environment where assets such as gold, oil and BTC can thrive.
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