The math of the US fiscal situation is such that cutting defense and entitlements by 25-30% immediately and permanently is the only way to avoid needing to keep real interest rates negative indefinitely, and since that is politically impossible, the government will instead inflate away the debt burden.
causalpending
Speaker
Luke GromanEvidence Quote
“so then it becomes down to do you think they are going to slash defense spending slash entitlement spending uh by 25 or 30% effective immediately and permanently I think there's zero chance of that”
Source
Luke Gromen: Expect Market Turbulence Ahead Due To Tightening Liquidity— Adam Taggart | Thoughtful Money®Created: 8/12/2026, 10:19:56 PM
My Notes
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