Part 10/14:
Luke is skeptical that policymakers can avoid the inevitable. He noted that in recent years, even when the risks are apparent—be it the “crack” in the bond markets or soaring deficits—actions taken are short-term fixes that only accelerate the cycle.
He predicts that the upcoming U.S. presidential election, which is roughly a year away, will likely be accompanied by a market and political crisis. The system may be coerced into a set of strategic interventions—possibly “money printing,” currency devaluation, or even defaults—to buy time and secure electoral outcomes.