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In this episode of Bitcoin Magazine’s “Fed Watch” podcast, CK and I welcomed a special guest, Luke Gromen. Gromen is founder and president of Forest For The Trees (FFTT), LLC[7], where he provides clients with macro insights and investible analysis of the global financial system. In this wide-ranging conversation, we dove deeply into Russia, gold, oil, the shadow banking system, bonds — you name it, we probably talked about it on the episode.
“Fed Watch” is a podcast for people interested in central bank current events and how Bitcoin will integrate or replace aspects of the aging financial system. To understand how bitcoin will become global money, we must first understand what’s happening now.
Common Misperceptions Of The Market
We started off the show (after an awkward intro by me that CK rescued) with Gromen giving a summary of his model for viewing the current economic landscape. He pointed to two widely-held misconceptions that have created the situation in which we find ourselves: One, the value of the petrodollar is the dollar, instead of the petro; and two, thinking that debt doesn’t matter. These are things people believe, but are in reality the opposite.
I tried to clarify the origins of these misconceptions, but did so badly. I believe that those misconceptions are due to the system in which they arose. In the long history of the post-WWII era, however, they were not misconceptions. The value was in the dollar of the petrodollar and U.S. debt didn’t matter. They only became wrong as this era is ending. So, what I was wondering was, did these misconceptions cause the end of the era or did
