Bitcoin
Capital Rotation of $130,000,000,000,000 Coming to Bitcoin, Stocks and Gold, According to Macro Guru Luke Gromen
Veteran macroinvestor Luke Gromen believes tens of trillions of dollars will flow out of the US bond market and into Bitcoin (Bitcoin), gold and stocks.
In a new interview with Kitco NEWS, Gromen says he sees liquidity being drained from the $130 trillion bond market.
According to the macro guru, central banks around the world are wary of hoarding US Treasuries after seeing how the government can arbitrarily seize a country’s holdings.
“Central bank Treasuries are no longer risk-free instruments. If you do something the U.S. government doesn’t like, they will put your Treasuries on hold. They did it with Russia. They did it with others.”
As for other Treasury investors, Gromen thinks they will eventually sell their holdings because gold, Bitcoin and stocks have more appreciation potential than bonds. He highlights that the US government can no longer afford to raise interest rates due to its massive debt, making other asset classes more attractive to investors.
“The $130 trillion bond market is the idiot at the gaming table and will figure it out. As you discover this, you will sell securities [and] buy me something that has value. This is something that has value: $65 trillion in US stocks now, $14 trillion in gold now [and] $1.4 trillion in Bitcoin now.
This process will continue until bond sales become so high that they force Treasury dysfunction or force rates to a point where the U.S. government cannot afford its debt load, and then the Fed and Treasury [Department] will come in and print more money to restrict this, which will only return to gold, Bitcoin [and] actions.
The incentive of what’s left in the $130 billion bond market to get into these other assets more quickly – wash, rinse, repeat… Things could really feed themselves very quickly.”
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