US Government Will Resort to Money Printing, Says Investor
Macro investor Luke Gromen predicts that the US government will be compelled to print more money in order to address its mounting debt and obligations. In an interview on the What Bitcoin Did podcast, Gromen explains that due to diminishing productivity and rising costs, the US will face a choice between printing more money or defaulting on its debt. According to Gromen, cutting public entitlements to balance the budget is not feasible, and reducing defense spending is unlikely. Consequently, money printing becomes the only remaining option.
Inevitable Money Printing with Inflation Consequences
Gromen emphasizes that cutting entitlements is not a viable solution and believes that the US government will choose to print money instead. Despite concerns about inflation and the potential need for yield curve control, Gromen asserts that significant inflation is likely. He argues that there are only two areas where cuts can be made: entitlements or interest. Gromen suggests that defense spending is politically sensitive and therefore unlikely to be reduced. As a result, he predicts that money printing will occur despite the potential consequences.
Gromen’s View on QE and Asset Performance
Gromen recently stated that continuous quantitative easing (QE) and a possible shift by the Federal Reserve will create an environment conducive to the success of assets like gold, oil, and Bitcoin (BTC).
Hot Take: US Government’s Dilemma
According to macro investor Luke Gromen, the US government will have no choice but to resort to money printing as it grapples with increasing debt and financial obligations. The options of cutting public entitlements or defense spending are politically unfeasible, leaving money printing as the only remaining alternative. Although this approach may lead to significant inflation, Gromen argues that it is inevitable given the limited areas for budget cuts. As a result, he believes that assets like gold, oil, and Bitcoin will thrive in this environment.
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