Macro investor Luke Gromen believes that both Bitcoin and gold are poised to thrive amidst mounting fiscal issues in the US economy. In an interview, Gromen suggests that the combination of relentless quantitative easing and a potential policy shift from the Federal Reserve will create a favorable environment for assets such as gold, oil, and BTC. He argues that these assets will outperform short-term treasuries due to their more fixed supply and a face value that can rise. Gromen also discusses the potential weakening of the US dollar as the world’s reserve currency, citing actions by the BRICS countries to potentially launch a gold-backed currency.
Gromen’s views stem from the belief that assets like Bitcoin and gold perform well when a nation faces fiscal problems, and when the reserve currency of the world and its allies also experience fiscal issues. He suggests that the current US fiscal situation may be worse than that of Europe, making it especially beneficial for gold and Bitcoin. Additionally, the macro investor highlights how the BRICS countries, including Brazil, Russia, India, China, and South Africa, are moving towards a gold-backed currency, potentially leading to a shift away from the US dollar as the global reserve currency.
In conclusion, Gromen predicts that both gold and Bitcoin will flourish as fiscal issues persist in the US economy. He believes that the combination of quantitative easing, potential Fed policy changes, and the emergence of a gold-backed currency by the BRICS countries will create a favorable environment for these assets. As a result, Bitcoin and gold are expected to outperform short-term treasuries and potentially weaken the US dollar as the world’s reserve currency.
