Why Yield Curve Control is the Only Way to Stop a Global Bond Crisis | Luke Gromen

Summary

Luke Gromen explains the structural forces driving a global bond crisis, including boomer entitlements, veterans benefits, and defense spending. He argues that yield curve control and dollar devaluation are inevitable, making gold the primary safe haven. He warns of an AI tech bubble threatened by Chinese competition and outlines why long-term bonds should be avoided, while positioning for gold, eventual Bitcoin dip-buying, and buying equity dips once the Fed intervenes.

• Off-balance sheet liabilities (boomers, veterans) are forcing the US into a permanent inflationary spiral.
• Global defense spending turns creditor nations into bond sellers, pushing yields structurally higher.
• The US cannot sustain positive real yields; yield curve control or dollar devaluation is the only way out.
• Gold is the best duration asset and will reprice much higher as central banks, especially China, accumulate.
• The AI/tech bubble faces serious competition from China, likely causing a selloff that forces a Fed backstop.
• Bitcoin should be bought on a correction when the Fed is about to inject liquidity.
• Long-term Treasuries are a real bubble and should be avoided in favor of gold.
• Equity dips should be bought in dollar terms because the Fed will always step in to prevent a fiscal crisis.