Luke Gromen, a macro-guru and expert on the US dollar’s devaluation by the government of the United States, says that the growth of Bitcoin (BTC), treasury firms is a rational response.
In a video posted on YouTube Gromen says that investors are reacting right now to an enormous financial bubble which has “kicked up” the housing, stock and banking markets, before being finally pushed onto the Treasury Market.
Gromen says that devaluing the debt through inflation is the only option for the US to keep the bubble going, rather than facing a serious depression or default to bring its fiscal position back into order.
As this reality becomes more apparent to the market, Gromen says that it is only logical that corporate entities would take advantage of BTC’s supply limit in order to create shareholder value.
It’s important to me that we remember where we came from. The equity bubble burst, the banks and housing sectors were blamed, the Treasury Market was blamed for the housing bubble that popped.
Treasurys have zero credit risk. To avoid default, the government can simply print money to pay interest. There is no credit risk with Treasuries. Only inflation risks exist.
In my opinion, the Bitcoin Treasury companies are logical in view of our primrose course over the last 25 years. More and more people are realizing that the only solution is a severe devaluation in US debts, US sovereign debts, or Western sovereign debts.
I expect that credit spreads will remain low in this case. After all, I prefer to own a Microsoft or Apple bond over a US Treasury Bond.”
The US national debt was about $37 trillion at the time this article was written.
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Sources of Images include Pixabay Creative Commons & Midjourney
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