Bonds, Bitcoin, Biometrics, and Biden's Backup

Originally published at: Bonds, Bitcoin, Biometrics, and Biden’s Backup – Peak Prosperity

In the realm of economics and finance, Luke Gromen’s analysis sheds light on the precarious position of Western sovereign debt, particularly that of the US, suggesting that sustainable management of this debt necessitates interest rates remaining below inflation. Gromen’s discourse extends to the potential for assets like gold and Bitcoin to outperform stocks in an inflationary environment, a sentiment echoed in discussions about the gold-to-oil ratio and the implications of OPEC’s oil production decisions. The possibility of Saudi Arabia diversifying oil pricing away from the dollar hints at broader shifts in global economic dynamics, potentially increasing demand for oil in countries like India and China. Gromen also touches on the US’s financial path forward, hinting at inflation and negative real interest rates as likely outcomes, favoring investments in gold, Bitcoin, and certain stocks. His insights into the industrial sector suggest a reversal of de-industrialization in the US could drive inflation further, impacting bond values negatively.

The broader economic conversation also encompasses the potential risks and opportunities presented by long-term treasury bonds, the devaluation of the dollar, and the evolving role of stablecoins in the financial system. The discussion highlights the importance of commodities like copper and uranium amid increasing energy demands and the transition towards more equity-based systems. The acknowledgment of Bitcoin’s growing significance by Wall Street further illustrates the shifting landscape of investment and the search for sound money systems in an era of technological advancement and potential inflation.

Concurrently, the political landscape in the United States is under scrutiny, with Arthur Brooks discussing the impact of the current political climate on happiness. This conversation dovetails with speculative reports on President Biden’s immigration policies and the potential for a shift in leadership, hinting at a tumultuous political atmosphere as the 2024 election looms. The discourse around Biden’s policies and their implications on the migrant crisis, alongside rumors of a strategic pivot in Democratic leadership, underscores the volatile nature of US politics.

In the technology sector, the adoption of biometric payment systems by US fast-food chains marks a significant shift towards more secure and efficient consumer transactions. Companies like CaliExpress and Steak ‘N Shake are at the forefront of this trend, utilizing facial recognition technology to streamline payments. This move towards biometric payments, supported by partnerships with major financial institutions, reflects a broader trend of integrating advanced technology into everyday transactions. Despite privacy concerns and the potential for data breaches, the push for biometric payment systems underscores the evolving nature of consumer preferences and the ongoing quest for convenience and security in the digital age.


The Great Rotation: Debt Market to Gold Asset Class

Directionally, here’s how I keep boiling it down: Western sovereign debt, broadly US debt, government debt specifically, is not sustainable unless you have negative real interest rates, unless interest rates are below the rate of inflation.

Source | Submitted by rhollenb

Harvard Professor Arthur Brooks: The Political Climate is Designed to Diminish Happiness

The political climate is designed to make us less happy

Source | Submitted by Barbara

Biden’s Replacement: Hillary Clinton Rumored to Step In

The mere fact that you are starting to see press that Biden shows signs of ‘slipping’ is setting the stage for the next act – replacing him by drafting Hillary at the convention.

Source | Submitted by rhollenb

Experts Predict Weakening Dollar and Capped Treasury Yields Amidst Potential Liquidity Injections

I think we saw, um, it’s still I think you’re gonna have to continue to add dollar liquidity.

Source | Submitted by rhollenb

Biometric ‘Breakthrough’: Paying with Your Face

“Our focus on biometrics as a secure way to verify identity, replacing the password with the person, is at the heart of our efforts in this area,” said Dennis Gamiello, executive vice president of identity products and innovation at Mastercard.

Source | Submitted by Shplad

Luke Gromen is one of the best Macro minds out there, Thanks for sharing.

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Why on earth would I accept being raped of what little privacy I have rest just to buy an overpriced, egregiously unhealthy fast food meal? I suspect this one is going to bite them in the @$$…

Secure for whom?