Luke Gromen: Here Comes The Repo Man

In this episode of On The Tape, Danny Moses interviews Luke Gromen about the plumbing of the US financial system, the risks of rising T-bill issuance, and the inevitable return of quantitative easing. They discuss the AI trade, its impact on jobs, and its exacerbation of the K-shaped economy. Luke shares his updated thoughts on China and Japan, and they explore the role of gold and Bitcoin in the current financial landscape. Luke argues that the Fed is essentially engaged in yield curve control and that the stock market is de facto the economy, requiring constant support to fund the treasury market. He also touches on the bottlenecks in the AI build-out, such as electricity and water, and the potential economic consequences of AI-driven job displacement. The conversation concludes with a discussion on the importance of gold as a neutral settlement asset and the challenges facing the US in its relationship with China.