Luke Gromen Explains the Monetary "End Game"
Smart and heretical views on the dollar, debt, and inflation
Recent conversations have revealed to me how little the average person appreciates what is happening in the world today.
I recommended this podcast to a friend last week, and he reported back that a light bulb moment had indeed occurred.
In the interview, Grant Williams talks with Luke Gromen, one of my absolute favorite macro thinkers. If you want to understand what’s happening with the dollar, gold, inflation, the ruble, and yuan, look no further than this episode of “The End Game”.
Luke is brilliant, a rare voice of financial sanity among a sea of mainstream garbage. Here are a few recent hot takes from his Twitter.
1/ “The EU is nearing VERY dangerous territory here.
Attempts to embargo Russian energy followed by likely fiscal stimulus to paper over the resulting economic losses and/or prop up EU banks and bond markets would be akin to what Weimar Germany did in the 1920s…”
I'd add that from 2002-14, 53% of an $11.7T rise in US Federal debt was bought by Central Banks as FX reserves.
In contrast, from 2014-present, just 4% of an $11.8T rise in US debt has been bought by CB's as FX rsvs.
Biggest marginal UST buyers 2014-present = the Fed & US banks
Jared Dillian @dailydirtnap
Luke also has an excellent newsletter and Youtube channel. Check them out.