Veteran macro investor Luke Gromen warns holders of US Treasury bonds that their investments are likely to turn out to be unprofitable.
In a new interview with Nicole Shanahan, Robert F. Kennedy Jr.'s running mate, Groman said the U.S.'s lack of domestic manufacturing capacity is becoming a national security threat.
"We may have a GDP 10 times bigger than Russia's, but Russia produces oil and stuff, and a good chunk of our GDP is spent sending monkey JPEGs back and forth at ever-higher prices and sending houses back and forth, which is fine in peacetime, but useless in wartime. And so the Russians are outgrowing us with one-tenth of our GDP."
Groman also argues that the real value of U.S. debt is the “biggest short position.” He explains that while U.S. Treasury investors will be able to get their money back, he believes the dollar’s purchasing power will eventually fall sharply.
"You'll get back every penny in the Treasury bonds you own, but that will mean you won't buy yourself that diamond necklace, that cubic zirconia necklace, or the cookies on a string you made for your mom for Christmas when you were in first grade.
That's what Treasuries will do, and that's what's happening. Boomers are going to pay for their health care one way or another."
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