To-date, Adam’s efforts have educated and informed millions of people just like you, and directed hundreds of $millions of their investment capital into good protection and stewardship – achievements he’s very proud of because he predicts challenging times lie ahead for the unprepared investor.
To-date, Adam’s efforts have educated and informed millions of people just like you, and directed hundreds of $millions of their investment capital into good protection and stewardship – achievements he’s very proud of because he predicts challenging times lie ahead for the unprepared investor.
Luke Gromen: Ballooning Deficit Caused By Higher US Debt Costs Likely To Force The Fed To Pivot
With the aggressive return of higher interest rates, the gargantuan piles of debt that world nations owe to each other suddenly become a lot more worrisome.
Higher interest rates means higher debt service costs. Which means less money left over for governments to fund their operations.
Today’s guest, macro analyst Luke Gromen, has long warned that the world has been heading into a massive sovereign debt crisis.
Have today’s rising interest rates just accelerated the day of reckoning? And what will such a reckoning look like?
In this video, we dive deep with Luke for answers.
To-date, Adam’s efforts have educated and informed millions of people just like you, and directed hundreds of $millions of their investment capital into good protection and stewardship – achievements he’s very proud of because he predicts challenging times lie ahead for the unprepared investor.
To-date, Adam’s efforts have educated and informed millions of people just like you, and directed hundreds of $millions of their investment capital into good protection and stewardship – achievements he’s very proud of because he predicts challenging times lie ahead for the unprepared investor.
Q3 A Critical Turning Point: Fed Reversal, Recession, More Inflation, Weaker Dollar | Luke Gromen
Past Fed Chair Paul Volker has been invoked in countless discussions surrounding monetary policy these days. Many are wondering if current Chair Jerome Powell will have the resolve to exact the Volcker-style rate hikes necessary to combat inflation.
Macroeconomic expert Luke Gromen believes that this is
more about math than Powell’s resolve.
With federal debt-to-GDP at 125% and US tax receipts, which are highly correlated with overall stock market, set to fall considerably, this is a matter of the US government’s solvency – not the sitting Fed Chair.
Volcker lived in a different time.
Debt-to-GDP was 30% when he began his tightening cycle. The federal deficit was around $60 billion per year (1.5% of GDP at the time). Today it is over 46x that amount at $2.8 trillion (over 10% of today’s GDP)!
According to Gromen, the US government simply cannot fund its almost $600 billion in interest payments, the roughly $3.5 trillion in entitlement spending, and the $800 billion for national defense, without defaulting or revamping QE. In the face of historically high inflation, neither of these options bode well for the bond market.
Default, especially when it comes to domestic entitlements, is not a politically palatable position. Therefore, Gromen believes QE will return and inflation will not subside, bringing us into unprecedented territory.
Which assets will perform well under this regime? Gromen believes commodities will experience a secular tailwind and that even Bitcoin may catch a bid. To hear all his insights, listen to the full interview at the top of the page.
To-date, Adam’s efforts have educated and informed millions of people just like you, and directed hundreds of $millions of their investment capital into good protection and stewardship – achievements he’s very proud of because he predicts challenging times lie ahead for the unprepared investor.
To-date, Adam’s efforts have educated and informed millions of people just like you, and directed hundreds of $millions of their investment capital into good protection and stewardship – achievements he’s very proud of because he predicts challenging times lie ahead for the unprepared investor.
Let us help you find the right financial partner
Please share a little more information so we can best serve you. This service provided by Greylock Peak Investments LLC, a registered investment advisor and subsidiary of Wealthion.
Required Disclosures
We provide you with the following documentation to educate you about Greylock Peak Investments LLC, a subsidiary of Wealthion, and our business relationship with any independent advisor to which you are referred.
By submitting this request to be referred to one of our advisor partners, you acknowledge that you have read and understand the documents below, and that you will receive further such information detailing the advisor(s) to which you are referred as a follow-up to your request:
