“So that's the thing that people just aren't thinking about. Western sovereign debt, it's not even a question.
It is unrepayable in a deflationary whoosh. In that period of time between today and nirvana where everything is plenty and free, that Elon and others have talked about, in this intervening period of time, and I don't know if that's six, it's not six months, but it's probably 12, 18, 24. I don't think it's 36 months, it might be.
But in that intervening period in time, the very bedrock of the sovereign debt that underpins the entire banking system of the entire Western world, they're unrepayable in anything resembling real terms. So either print the money or default, that's it. AI brings that decision forward because, look, we ran up, the United States ran up 30, what are we at, $38 trillion in debt?
And we got a giant pile of nothing to show for it, right? I mean, a couple of bailouts, a couple of stupid wars, we didn't get anything. Like, yeah, it is, AI's deflation is problematic enough, but the pace of AI deflation, it is simply incompatible, incompatible with sort of everything we know in the financial system as it says today.
And if you want to be in cash for when that wish comes, you still don't want to be in cash too long, because if they print their way out of it, that's going to inflate away that cash itself. So you're going to need some hard assets.”
From The Peter McCormack Show: #153 - Luke Gromen - The AI-Debt Collision Breaking the Financial System, Mar 4, 2026
https://podcasts.apple.com/us/podcast/the-peter-mccormack-show/id1317356120?i=1000753101740&r=3614
This material may be protected by copyright.
kylefisk / Kyle Fisk
npub1at…06z2f
2026-03-06 13:27:10 UTC
Author Public Key
npub1atxrzkj2vlu8h4gsfkvljtj46eflqs35q6f8jnmy7hmjv50qyl9qu06z2fPublished at
2026-03-06 13:27:10 UTCEvent JSON
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"content": "“So that's the thing that people just aren't thinking about. Western sovereign debt, it's not even a question.\nIt is unrepayable in a deflationary whoosh. In that period of time between today and nirvana where everything is plenty and free, that Elon and others have talked about, in this intervening period of time, and I don't know if that's six, it's not six months, but it's probably 12, 18, 24. I don't think it's 36 months, it might be.\nBut in that intervening period in time, the very bedrock of the sovereign debt that underpins the entire banking system of the entire Western world, they're unrepayable in anything resembling real terms. So either print the money or default, that's it. AI brings that decision forward because, look, we ran up, the United States ran up 30, what are we at, $38 trillion in debt?\nAnd we got a giant pile of nothing to show for it, right? I mean, a couple of bailouts, a couple of stupid wars, we didn't get anything. Like, yeah, it is, AI's deflation is problematic enough, but the pace of AI deflation, it is simply incompatible, incompatible with sort of everything we know in the financial system as it says today.\nAnd if you want to be in cash for when that wish comes, you still don't want to be in cash too long, because if they print their way out of it, that's going to inflate away that cash itself. So you're going to need some hard assets.”\n\nFrom The Peter McCormack Show: #153 - Luke Gromen - The AI-Debt Collision Breaking the Financial System, Mar 4, 2026\nhttps://podcasts.apple.com/us/podcast/the-peter-mccormack-show/id1317356120?i=1000753101740\u0026r=3614\nThis material may be protected by copyright.",
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