The only realistic way out of fiscal dominance is to let the economy run hot and grow nominal GDP faster than the interest rate paid on debt (e.g., ~7% real GDP versus 3-4% funding rates), which could theoretically bring debt-to-GDP down to 70-80%; but even in this 'run it hot' scenario you generally want to own almost anything other than bonds because money supply growth flows into scarce assets and rapidly devalues bonds and cash relative to what is truly scarce, including energy over the long run.
forecastpending
Speaker
Lynn AldenEvidence Quote
“you wanna own almost anything other than bonds... it's still rapidly devaluing compared to whatever is truly scarce, which... will absolutely... include energy, over the longer run”
Created: 6/18/2026, 1:58:51 PM
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