Luke Gromen: The Hard Landing Isn't Going To Come In Stocks. It Will Come In Treasuries.

Luke Gromen, founder of FFTT, joins The Julia La Roche Show to discuss the macro picture and the sovereign debt bubble that’s bursting in the U.S.
In this episode, Gromen makes a case that he thinks this is the year where the consensus realizes the Federal Reserve as a “shadow third mandate,” which is the Treasury market functioning. He explains the concept of fiscal dominance and its implications for the economy, including higher inflation and a weaker dollar.
Gromen predicts that there will not be a recession in 2024 due to the Fed's focus on maintaining the functioning of the treasury market. He recommends investing in gold, Bitcoin, and industrials as these assets are likely to perform well in the current environment.
Gromen also discusses potential scenarios that could avoid the negative outcomes of the sovereign debt bubble.
Links:
fftt-llc.com/
Twitter/X: / lukegromen
Dr. Charles Calomiris’ paper on fiscal dominance: files.stlouisfed.org/files/ht...
Timestamps:
0:00 Introduction and macro view
1:40 The Fed has a “shadow third mandate”
3:54 Fiscal dominance and its symptoms
9:24 Realization of fiscal dominance by the consensus
14:10 No recession in 2024
21:31 It’s a new Great Depression
26:00 Investment Opportunities: gold, Bitcoin, and industrials
35:19 Avoiding the scenario
40:05 Conclusion and parting thoughts
#economy #bitcoin #gold

[@TheJuliaLaRocheShow]

A huge shoutout to everyone who recommended I ask Luke Gromen on the show. I ALWAYS appreciate your guest suggestions, so please keep them in the comments section or email me at [e-mail]. I hope you all enjoy this episode as much as I did. Be sure to hit the like 👍, subscribe, and ring the notification 🔔! This will help me grow the channel and bring on more great guests. I appreciate you all. 💙Julia

[@rudeawakening3833]

Great for you for taking this suggestion and actually getting HIM ! BRAVO !!!

[@issenvan1050]

Finally.

[@TheJuliaLaRocheShow]

One of your guest recommendations! I didn't forget @@issenvan1050 😊

[@georgelien]

This guy is so wrong 😂 I cannot stop laughing

[@issenvan1050]

@@georgelien His FED pivot timing was horrible. But, what is he wrong about?

[@BidenIsPoTUS.JFK.]

31:17 We’re already seeing savings dwindle over time because of higher prices and the rising costs of paying back debt. We are looking at turning to emergency funds.

[@benalfredo]

The current market/economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.

[@user-cv2gn2tr1k]

Buy gold and bitcoin, your govt has failed u

[@clintscott3300]

Gold is a great investment and a good bet against the devaluating dollar, been holding some for awhile now, I’m grateful my fin-planner momentous changes in the market are lightening quick, cos who know how much losses I would’ve had by now.

[@MimaLopez-jt4vq]

I envy you, I’m still trying to recover from losses I incurred in during covid, who is this investment adviser you work with, I’m intrigued and I could use some quality guidance

[@clintscott3300]

I have used the same money manager for more than 10years now. We got in fairly early with a modest amount of money. Then it mushroomed like an atomic bomb. We had a couple million dollars after GameStop profits in 2020/2021. Inflation has eaten away at the nest egg but lucky to have Monica look after it diligently like she has done the past years.

[@khensley007]

We need to hear a debate between the two very different views I keep hearing!! I would love to hear Luke discuss with DeMartino Booth or David Rosenberg or Lacy Hunt! Instead I watch a million videos of them speaking alone and not being challenged.

[@fhowland]

Totally agree . Lance Robert’s too

[@mariahay22]

Keeping up with current trends and strategies can help traders stay ahead of the curve and make informed decisions, It is important for beginners in trading and investing to understand that success in these fields requires technical analysis, emotional maturity, and self-discipline. Thanks to Flora Elkins insights, daily trade signals, and my dedication to learning, I've been increasing my daily earnings. Kudos to the journey ahead!

[@gray56675]

Please educate me, i'm willing to make consultations to improve my situation, is she on TG?

[@DJRonMane]

It's unexpected to come across her name here. She understands every beginner’s intention and fix you to a trading course that matches your capacity, she knows her stuff! Her advice has been invaluable to my trading journey. Definitely worth giving a shot!

[@stewart109]

Investing has proven to be an incredibly beneficial decision. My cryptocurrency profits continue to play a substantial role in growing my overall wealth, reducing my reliance on my salary

[@Khanatla32]

Nice to see this here, Flora Elkin's understanding of market indicators is impressive. She knows exactly when to enter and exit trades for maximum profit. her siignals are top notch

[@user-cl8je1or6n]

BOT @@bellafoster635

[@Armstrong741]

I've heard that some experts are pointing to factors like rising inflation and the possibility of interest rate hikes as potential triggers for Treasury market instability. It's making me rethink my investment strategy, especially with my portfolio of $400k declining over 35%

[@BenTodd-fl8nv]

I'm also thinking about keeping an eye on economic indicators and staying informed on any policy changes that could impact the market. It's essential to be proactive in managing our portfolios or just get yourself a portfolio manager

[@RickWatson-xu6gw]

Agreed, instead of panic or following a hearsay, I simply adopted the service of an advisor early 2020 amid covid-outbreak, and so far, I've attained my most measurable financial milestone of $650k after subsequent investments.

[@Debbie.Burton]

Speaking with a consultant helped me stay afloat in the market and grow my $430K portfolio to about 65% in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and bonds. If you're uncertain about the market like its already said you should speak with an advisor.

[@benitabussell5053]

Speaking with a consultant helped me stay afloat in the market and grow my $430K portfolio to about 65% since January, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and bonds. If you're uncertain about the market, you should speak with an advisor.

[@judynewsom1902]

True, proper asset allocation is critical. Furthermore, some folk employ hedging strategies or devote a portion of their portfolio to defensive assets that perform well during market downturns. How else is this achievable except through expert guidance? So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.

[@rudeawakening3833]

Great interview ! Refreshing to see a host ask awesome questions and then ALLOW the guest to answer without interruption … ( love you hair Julia … )

[@Reflect50]

Luke is so brilliant and such a humble and all around nice person !!!

[@bradjohnson233]

Cannot believe the quality of guests you have... Luke, Jim Rogers, Ackman, Dalio, Lacy Hunt.... truly amazing. Appreciate your style is to ask questions and not try to push an agenda. I am guessing you allow your guest 80-90 percent of air time where some other hosts are babbling for half the interview. Keep up the good work!

[@TheJuliaLaRocheShow]

Yes! Thank you so much, Brad. I call it my "90-10 Rule," where I try to speak only 10% of the time so my guests can give their answers uninterrupted. I really appreciate you recognizing that and that it resonates. It's something I always felt was missing when I was a member of the media. Thank you again. 💙

[@organic723]

It’s very enjoyable, hearing from people that aren’t making the rounds on every other channel out there… It’s not the same person on a different channel for the 10th time, so thank you!

[@sbain844]

Enjoyed this, Luke is one of the best.

[@hansdoreen]

The entire financial system is based on treasuries. It's funny to think other assets are fine, but treasuries will be toast.

[@jj4cpw]

Agreed. But as I didn''t actually listen to the interview as I've heard similar analyses from other "experts", I assume that, like those others, he also acknowledges that, over the longer term, equities are toast too.

[@willnitschke]

Most assets (not bonds or US dollar) will go up because inflation is going up. Which means you might do ok in inflation adjusted terms if you own those things as opposed to having to buy goods and services in the real economy.

[@thehungergames8918]

Thank you guys 🙂👊🤝

[@wiblin701]

Great interview Julia! Keep up the good work and hang in there. Only a matter of time before more people discover your work. Thank you! ❤❤❤

[@BerniePearl]

Many thanks Luke for your brilliant insights.

[@jaytan915]

Thanks, best macroeconomic perspective from LG.

[@johnborrelli7944]

Great job Luke

[@jupesa2100]

Great interview Julia. I like very much your interviews. Your guests are really smart and you allow them sufficient time to talk and expand on the topics. Thank you very much 🙏

[@westekforest1712]

As to the focus on investments into industrial sectors that are dependent on electric vehicles, I would recommend caution. The reason I say this is the consumption market for these vehicles is taxpayer subsidy dependent. It is NOT due to intrinsic demand. Internal combustion vehicular energy systems are far cheaper and more efficient to manufacture. Further, the infrastructure to make this hydrocarbon energy system work, is already in place and mature. When fiscal restraint handcuffs are placed on the issuers of credit instruments, by the market demand for those fiat instruments, the ability to demand consumers embrace EV transportation evaporates. We are already seeing this in early stages.

[@DanielMeininger]

Mr Groman is quite intelligent and an excellent communicator!

[@tradecraftcapital4113]

Luke is the best! I'm so glad I watched this pod and found out about the fiscal dominance paper. Our analysis was lacking this key piece of info. We'll be recommending this podcast to our investors.

[@kiosunightstep6640]

Luke is...not the best. Go back the past 2 years and look at his calls. He's blinded by his biases. He's phenomenally intelligent, and is right about most things. But the few things he's wrong about make many of his calls useless.

[@putty360]

Respectfully disagree. We are in a recession right now. Manufacturing sector has been in a tailspin for over year and now your starting to see services approach contraction levels. Last year also saw massive job loss that seems to be accelerating in Q1 with record multiple job holders, massive underemployed, and most consumer excess savings appear to have been absorbed into the price level.

[@TheJuliaLaRocheShow]

Thank you so much for your feedback! One of the reasons I love hosting the show is the diversity of viewpoints that get shared.

[@Tony-dx3eo]

Couldn't agree more putty...

[@istvanpraha]

The job market is horrible as well (at least for well paying jobs). It's just not an obvious because there are so many fake ads/duplicate ads/jobs, and companies that are hiring limit hours/benefits, don't pay much. I was looking and OMG, everyone wants someone who is better than their existing best employee, or isn't hiring anyone. I don't consider that a real job opening since they're most likely never hiring anyone.

[@omnimoeish]

I think Luke's main point isn't if we are now in a recession or if there will be a recession or not but that the government will run out of room to kick the can down the road as the economic growth can't keep up with the growth of the federal debt and deficit. At some point the Fed has to stop pretending it cares about inflation will be focused solely on printing money to fund the Federal government. He doesn't have a hard timeline for that scenario but it will eventually happen and will weaken the dollar which will increase asset prices but cause mayhem for people don't own non duplicatable assets like real estate, gold, bitcoin, industrial stocks, etc.

[@martinback187]

I would guess stagflation 🎉

[@texasrunner]

Luke is such an awesome guest! Smart and humble. He speaks plainly and makes things understandable for the average listener

[@pjstew9331]

Very very enlightening.

[@lenr7068]

Great interview...its a WTH interview. Thank to both participants.

[@gdan8599]

Great interview w Luke 🙏

[@R-Woz]

Great interview I really enjoyed The hypothesis and what it's backed up by. Good job.

[@MeJonTheDon]

While i dont argue that money printing wont continue, the incomes are simply not keeping up with prices alone, which doesn't even include the increased borrowing costs. Home prices are going down (slowly) and rents are going down. Every year i dont buy a house is not only saving me on the price of the home, but also making me money in a CD, treasury bond, etc, they skews the economics away from inflation because it is simply easier to not participate in the FOMO. I have friends outside of Austin, TX who make hundreds of thousands of dollars a year and cant afford to live near the city, which further points to the fact that hime peices will need to come down for those cities to exist in their current state, or people will simply relocate

[@philhadi172]

Excellent interview

[@farmerdude3578]

Luke was fantastic. I understood everything. Thank you for a excellent interview.

[@issenvan1050]

Then, answer these: fiscal dominance is a notion pertinent to the Treasury, not the FED, right? How did the FED’s rate hikes put us back into fiscal dominance? Aren’t negative real rates more ideal for the Treasury’s debt-servicing? Besides, didn’t the Treasury collect higher taxes during the QE+ZIRP regime, when it came to fiscal dominance? @farmerdude3578

[@user-tw2oe6zi6q]

Exactly @@issenvan1050

[@lee-yz6ze]

30:06 he tried pretty hard to keep that “I told you so” smirk off his face but couldn’t quite do it 🤣🤣

[@paulinechernick2537]

Excellent interview! Very informative.

[@TheJuliaLaRocheShow]

Glad you enjoyed it!

[@minnesotasalamander5913]

Good interview

[@elonmuskox4305]

"They won't let the bond market fail". Unless they want to bring down the system quickly so they can introduce CBDC.

[@eaglewing1415]

The dollar and gold were separated not by a bunch of oligarchs in an evil plot, but because the US govt spent money overseas in deficit spending, mostly for the Vietnam War, and France wanted gold out of Ft Knox. We lost billions of gold before Nixon decided, not by choice, to stop paying off all those balance of payments dollars with gold. We would have run out of gold. Don't blame Nixon or evil oligarchs like today, blame Congress and LBJ. I would expect him to know this.

[@romefl6723]

Great interview Julia 😊

[@Scoobyism3]

Luke’s always the smartest guy in the room

[@fishtherapy100]

Very smart guy. Excellent interviewer. Top notch.

[@jameskelly9243]

We boomers are not leaving anything behind we all plan on dieing in debt.

[@tlindsay1007]

Especially due to the outrageous cost of eldercare. It will break most Boomers' bank accounts if they have to utilize it. And, don't expect to get actual "care."

[@peterbedford2610]

They're spending it right now!!

[@DanielMeininger]

makes sense - great video.

[@nesd1]

Great interview. Subscribed. Like your interview style Julia.

[@TheJuliaLaRocheShow]

Thank you so much 😊

[@smsfelipe]

I think that moment has already happened twice, first with BTFP and second with Yellen rushing to modify the Treasury issuance towards bills after the Nov 2023 bond auction failure.

[@HectorYague]

Agreed. Both the Fed and the Treasury showed their cards in 2023: they wont allow the debt/credit market take a hit, so they will ease as needed when sh!t hits the fan. That is the 3rd shadow mandate Luke mentioned in this video.

[@christinewai3723]

Wow, that was great

[@johntan9151]

One simple rule of thumb to use is investing in inelastic companies eg. Utilities, Oil and gas producers which provide stable dividends, AI companies which provide the ongoing momentum to a digital world, commodity producers.

[@MarkhallPete]

I think the easiest way for folks to understand what Luke is talking about is to imagine a business that needs to borrow money to stay afloat but at some point nobody wants to lend at low interest rates. So business is forced to print or go bust. Hence why people will sell treasuries to buy stocks in order to keep up with inflation. Because other option is a global bust/ Great Depression. Also forget looking at real economy. It has nothing to do with real economy…. Unfortunately.

[@zwatwashdc]

Clear as mud😂

[@donaldduck926]

Luke is a sharp cookie...

[@RichardSKLim]

You're ascribing to the Fed much more influence and power than it really has over the economy, Mr. Gromen.

[@coffeecupman]

...but if inflation shoots back up, you'll push the working class past its breaking point, and you'll have bankruptcies and an economic crash, including in housing, etc. The return of inflation means a vicious hard landing for everyone who doesn't own financial assets.

[@HectorYague]

That is called stagflation, which Luke mentioned.

[@5dc61]

Right, but…..it will be further down the road keep that in mind

[@nicolasciani1933]

Greetings from Argentina! I follow Luke in every video..!

[@TheJuliaLaRocheShow]

Thank you so much! Glad to have you here.

[@RolfStumpfRailMedia]

Great interview. This underscores my gut feeling and that's why I only hold little cash in my portfolio. No point waiting for a recession.

[@jameskelly9243]

So when it all crashes down don't come crying to us who prepare

[@hansdoreen]

Recency bias is good 90% of the time until it goes terribly wrong. @@jameskelly9243

[@RolfStumpfRailMedia]

@@jameskelly9243 Don't worry, I AM prepared.

[@peterbedford2610]

Growing inflation in a country with this level of debt and a fiat currency... Is a very solid bet.

[@christophersoto1986]

Great guess 👍

[@issenvan1050]

When will different assets stop trading in the same direction?

[@iancormie9916]

Wish economists would ditch the 2% inflation target. No matter how you cut it, inflation is debasement of the currency, a loss of buying power and the theft of people's savings.

[@jbru8725]

Great guest. Would the US Treasury market ‘fail’ or would it mean other countries and companies struggle to raise funds / credit spreads blow out at they would struggle to compete against the US government?

[@issenvan1050]

How would silver act during a recession?

[@markl1473]

1:34 What is he talking about. There has been no bursting of any housing bubble.

[@user-vr7ey2zn6p]

What a boss!!!

[@cicaizrogace8054]

Komplikovana i verujem netačna priča. 🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉

[@lakeguy65616]

So COVID was a missed opportunity to solve our debt / interest problem.

[@user-cl8je1or6n]

Though Gromen speculates weirdly, a 40% death rate among the sickest of boomers this year and next will solve some of these major problems. I wonder what he knows about Covid and its supposed cures.

[@cmeola1066]

Luke kind of put his finger on an interesting point: the Fed's Shadow Mandate. In other words, the Fed uses jawboning ad nauseum; but in conjunction with usually revised to the downside economic data points to create a very confusing ecosystem for people to navigate. The answer so far has been AI and Mag7, in order to simplify. 2024 is really a atory of expansion of narrative

[@Cardroid]

Saw your post on twitter.. Great interview.

[@nosac1230]

We're in an election year. It doesn't make any difference if anything breaks because a firehose full of liquidity is going to be turned on if it does, inflation be damned.

[@fhowland]

Very interesting interview- would love to see Luke debate Lance Roberts. Lance says the debt is deflationary in the long run..

[@issenvan1050]

What does “objectively” mean?

[@stephengerrard6412]

Where does all this leave long term treasury yields? Up because of the deficit or down because of QE?

[@randywhelchel4674]

No recession ? He need to get out more

[@williamblair2934]

Another idealist realist who understands the importance of having Real money. I expect our real estate to drop 50% plus. Doesn’t bother me because we purchased and improved them when the median house price was $160-180k. It will drop again, we will buy more then. This is the only way we have been able to profit off of rentals. Repairs due to damage, property taxes rising, insurances rising, private property rights decreasing are all reasons why you should in no way be buying rental properties right now. But gold and silver and wait for the opportunity. You will be able to help drive the economy and hopefully buy right so that you can then charge a reasonable rent price so that people are not strapped so intensely. God bless to all. Remember you were created to glorify God and love your neighbors

[@acornsucks2111]

Highly unlikely.

[@tlindsay1007]

I like your way of thinking. Hopefully, real estate doesn't drop 50%. But, if you look at the trajectory RE was on before interest rates went down too far over the past 10 years, or so, home prices have gone up far too much since then. So, whatever that trajectory would have been if interest rates had remained at say 6%, I could see the home prices drop down to match where the trajectory should be. I'm thinking maybe 30-35%. Just a guess, though. How are you calculating a 50% drop?

[@janremus1539]

Will gov start buying bonds?

[@spinecat]

There IS another option besides cutting entitlements and defense spending. Graduated taxation HAS TO push up into the higher income levels. There's no reason why extreme-high end income and wealth has to continue to wallow in complete and total luxury--I'm talking CEOs and other high end administrators,, athletes, hedge fund managers, upper end entertainers--people making tens of millions of dollars per year. In this nation we have the highest level of inequality on the planet. The Democrats have consistently tried to push through legislation to tax at higher levels the high income/high net worth individuals but they keep getting pushed back at by Republicans who would rather cut taxes for those same high income/high wealth entities. And unfortunately just enough of the American people are blind enough, ignorant enough, to make poor political choices that end up screwing themselves over.

[@user-df6kb7md4c]

I’d like to see Luke debate Brent Johnson and the Euro dollar university guy. Both of them believe the dollar will go higher. But I see Luke’s point. I wonder who is right.

[@HectorYague]

Actually, Luke also believes that USD would go up vs other currencies. What he points out is that, for the Fed to save the debt market, they need to push for a weaker USD so foreign investors can afford buying Treasuries. To that goal, in his view, the Fed will ultimately be FORCED to lower rates.

[@zobry2xxx]

I totally agree with what that guy is saying.

[@issenvan1050]

Where/when is the point after which yellen (or whoever) cannot afford to pay these higher interests? Can he offer a specific calculation for that point of no return, so to speak?

[@stevenblack122]

Simple question he says” Fed won’t let treasury market break”. Define what that would be..ie. Moving to a broken treasury market.

[@truewealth50]

Its the Bond Market...

[@modelmark]

Kick it up to the currency

[@issenvan1050]

Luke should learn about the Quantity Theory of Money!

[@zwatwashdc]

Those assets have already moved in the ripping upward direction.

[@romefl6723]

Loaf of bread 5 bucks , s&p 7500 . Lol either way you still get Obambidentrumpville they all raised deficit.

[@innovita7502]

Major currencies will depreciate a lot, very positive for gold, stocks, and hard commodities

[@tlindsay1007]

I found some of his commentary to be somewhat confusing. He uses buzz words, and such, that I'm not familiar with. It would be helpful to drill down on some of those things with him in a future interview. As far as gold buying goes, I think it is very wise to have that and some silver, for sure. China has a plan to use gold in their favor and for a lot of future power. So, it makes sense for individuals to do the same in order to be able to buy food and keep a roof over our heads. A rising stock market is great, until your earned dollar has little to no value.

[@amid_invests]

18:12

[@modelmark]

The moment will probably be in march when they say: BFTP will be another year, tou can keep handing in your underwater assets at par.

[@dr9299]

"A Controlled Demolition" of the old structure while transitioning into the new system is seemingly underway and it means that there WILL be changes that should affect some positively (asset "appreciation"/debt jubilee?) and others in a very not so positive way (those without real assets): i.e. current free rides will be over. A forest HAS to be thinned; a garden HAS to be pruned and the current system hasn't been filtered for decades awaiting this Western event. The inner cities will cleanse (hence they will need digital controls possibly UBI/CBDC's?) AND the USD will have to weaken to align with rising BRICS Eastern currency values OR a "one global marketplace" will be split into two E/W marketplace hemispheres. It's a tricky transition altogether.

[@steveglica7109]

Luke Gromen's explanation and recollection of how the FED (Chairman J.Powell) and US Treasury (Sec Yellen) dealt with the 'bail-out' of the banks in March 2023, examples SVB, Signature Bank etc and the creation of the BTFP which is to come to a close this March 2024.....soft landing recession, is no destruction of the banks and the equity markets....

[@georgegale6084]

Settling in Gold? Hmmmm. Ya, like they are shipping gold back and forth, or they got it in off shore escrow? How does that actually work?

[@georgeroesser974]

Julia, please get Dr. J Segal at Wharton together with Luke Gromen.

[@Mdaddy4]

So money printing no recession assets all rise dollar weaken. But inflation rips again. Rinse repeat…

[@robertrinehart9036]

It is overwhelmingly by the top 10%

[@issenvan1050]

Fiscal dominance is a notion pertinent to the Treasury, not the FED, right? How did the FED’s rate hikes put us back into fiscal dominance? Aren’t negative real rates more ideal for the Treasury’s debt-servicing? Besides, didn’t the Treasury collect higher taxes during the QE+ZIRP regime, when it came to fiscal dominance?

[@to2455]

The US cannot inflate their way out of this debt. inflation has excluded over 2/3 of the US population so far. inflating this debt makes that situation even worse and $5,000 Gold makes the Government even more likely to confiscate it. that’s history talking..

[@issenvan1050]

CPI wouldn’t rise within two months from re-starting of QE, it’d take 1.5-2 years… Monetary policy acts with lags.

[@issenvan1050]

How about gold miners & BTC miners?

[@deanbrooke7103]

I did wonder wat he meant by "hard landing won't come in stocks" lol, I'm glad he clarified that position that stocks won't be the "focus" of the hard-landing but rather a symptom of it. His viewpoint makes sense to me now after that clarification. I am on-board with that view because I think we're gonna see the S&P cuck shorts by pulling another inexplicable "melt-up" similar to what happened in Q1 2020 before we get the downside. I'm looking for 5200 there myself.

[@motorheaddave3981]

Luke was spot on. How many "pundits" called for the S&P to go to the 3000's in 2023 or the NASDAQ to go to back to 10,088?

[@issenvan1050]

How about a Swiss debt break, instead?

[@caroledoerr6872]

IT SOUNDS LIKE THEY ARE HYPERINFLATING THE DEBT AWAY AT THE EXPENSE OF THE MIDDLE CLASS.

[@kneesusforjesus2879]

How does hyperinflation not lead to Great Depression

[@darinthesecularspiritualist]

No recession?

[@user-oz9fs1xs9u]

I think US Treasure/Fed already have the BIS interbank 'CBDC' clearing for international banks, won't they need the retail CBDC in place to let the Treasury market fail? Is this a chicken and egg scenario? UST fail ->CBDC->UST fail ? I'm waiting for gold to dip a bit.

[@edwardk4198]

OK I'm 9 minutes in but here is my takeaway: Trreasury funding is the weak spot. That enomormous amount of money market funds should be driven into the stock market because tax receipts from capital gains also support the treasury and the overextended entitlements we are carrying. Does not stop but mitigates debt service.

[@btimothygordon2777]

I disagree. Money supply , credit, savings & jobs all declining...just like 1929. Manipulation of Treasuries isn't going to stop this Runaway Locomotive