\u201cIf one believes that this is a restructuring of the global trading system, as a lot of people do, then it is fait accompli, the United States is no longer going to have open capital account,\u201d says Luke Gromen, founder and president of Forest for the Trees (FFTT). He explains to Daniela Cambone that if the US keeps its capital account open while China restricts capital flows, it risks becoming a source of funds for a heavily indebted global economy during trade disruptions. \u201cEverybody wants to get their money out of China. Chinese say no. Then they go… to the US, sell stocks, sell treasuries. And the US loses the trade war.\u201d Gromen also highlights that the status of gold has been strengthened since the 2008 financial crisis, when it became clear that the US would not reform fiscal policy but instead print money to resolve crises. \u201cGold is both preserving purchasing power and providing absolute national control,\u201d he concludes.<\/p>\n
Watch the video to learn more of his insights and understand the evolving dynamics of global capital flows and the strategic importance of gold in today\u2019s geopolitical landscape.<\/p>\n
Why Central Banks Are Choosing Gold Over Dollars\u2014And What It Means for Your Wealth<\/strong> In a time when trust in traditional systems is crumbling, Luke Gromen<\/strong>\u2014founder of Forest for the Trees\u2014has a clear message: the financial reset isn\u2019t coming, it\u2019s already here<\/strong>. And if you\u2019re not positioned correctly, you risk watching your purchasing power quietly evaporate.<\/p>\n In a powerful interview with Daniela Cambone<\/strong> on The Daniela Cambone Show<\/em>, Gromen laid out a compelling case for why central banks are replacing Treasuries with gold<\/strong>, how capital controls are inevitable in a trade war environment, and why gold and bitcoin are poised for secular long-term gains<\/strong>.<\/p>\n At ITM Trading<\/strong>, we help clients\u2014especially those over 50\u2014prepare for exactly this kind of monetary transition, with customized strategies built on physical gold and silver<\/strong>.<\/p>\n For over a decade, central banks have been gradually abandoning U.S. Treasuries in favor of physical gold. Since 2014, they\u2019ve stopped accumulating dollar reserves<\/strong> and instead purchased more than $600 billion in gold<\/strong>.<\/p>\n \u201cThis is one of the big macro gears of our lifetime,\u201d Gromen said. \u201cThe shift away from Treasuries toward gold is long-term and irreversible.\u201d<\/p>\n<\/blockquote>\n This isn\u2019t speculation\u2014it\u2019s math. As the U.S. national debt approaches $38 trillion<\/strong> and foreign demand for Treasuries dries up, central banks are insulating themselves from what Gromen calls \u201cthe inevitable devaluation of fiat currency.\u201d<\/strong><\/p>\n Gromen warns that America cannot sustain a trade war with China without eventually imposing capital controls<\/strong>\u2014limitations on the flow of money in and out of the country.<\/p>\n \u201cIf the U.S. continues this path with China, capital controls are a matter of when, not if,\u201d he explained. \u201cYou can\u2019t fight a trade war with a closed economy like China and leave your capital account wide open.\u201d<\/p>\n<\/blockquote>\n For everyday Americans, this has serious consequences: asset sales, market volatility, and rising bond yields could all trigger a fiscal crisis<\/strong>\u2014the very scenario gold and silver hedge against<\/strong>.<\/p>\n In Gromen\u2019s view, the Federal Reserve is already backed into a corner.<\/p>\n If the U.S. insists on reshoring manufacturing and reducing dependence on China, the Fed must choose: control inflation or support government spending<\/strong>. He believes they\u2019ll abandon their inflation mandate and opt for financial repression\u2014just like they did during World War II.<\/p>\n \u201cYou either keep rates low and let inflation run hot, or the debt spiral begins,\u201d Gromen said. \u201cEither way, real assets like gold outperform.<\/strong>\u201d<\/p>\n<\/blockquote>\n Why are nations like China and Russia turning to gold?<\/p>\n Gold preserves purchasing power<\/strong>, especially when measured in commodities like oil.<\/p>\n<\/li>\n Gold can\u2019t be frozen<\/strong>, seized, or weaponized like Treasuries were after Russia\u2019s invasion of Ukraine.<\/p>\n<\/li>\n Gold grants monetary sovereignty<\/strong>\u2014a critical factor in a multipolar world.<\/p>\n<\/li>\n<\/ul>\n \u201cGold is superior in every way,\u201d Gromen emphasized. \u201cIt\u2019s a 0% yielding bond of finite issuance and infinite duration\u2014with flexible value.\u201d<\/p>\n<\/blockquote>\n This validates the long-standing position of ITM Trading: physical gold is the cornerstone of real financial independence<\/strong>.<\/p>\n Gromen also sees Bitcoin<\/strong> playing a growing role alongside gold, particularly for nations or institutions looking for decentralized stores of value. While central banks may not publicly embrace Bitcoin just yet, sovereign wealth funds and private institutions are starting to dip their toes in<\/strong>.<\/p>\n Still, for conservative investors seeking security and stability, gold remains unmatched<\/strong> in terms of global recognition and historical resilience.<\/p>\n Despite surging gold & silver prices<\/strong>, U.S. retail investors remain largely on the sidelines. Why?<\/p>\n \u201cMost Americans have never lived through an inflationary recession,\u201d Gromen said. \u201cThey don\u2019t recognize a currency crisis when it\u2019s right in front of them.\u201d<\/p>\n<\/blockquote>\n Foreign investors\u2014especially in emerging markets\u2014know what\u2019s coming. They\u2019ve lived through it. But Americans still trust the dollar\u2026 until they can\u2019t.<\/p>\n If capital controls are imposed and the dollar\u2019s reserve role diminishes further, Gromen expects gold to double or even quadruple<\/strong> from current levels.<\/p>\n He uses a powerful metric: the market value of the U.S. gold reserves (8,100 tons) compared to foreign-held Treasuries. In 1980, during a true dollar crisis, U.S. gold covered 135% of foreign debt<\/strong>. Today? Just 10%.<\/p>\n \u201cTo return to the long-term average, gold would need to quadruple,\u201d he said. \u201cEven a doubling would be modest in historical context.\u201d<\/p>\n<\/blockquote>\n This aligns closely with the forecasts made by ITM Trading experts like David Morgan<\/strong>, who sees gold reaching new highs as trust in fiat currencies collapses.<\/p>\n Luke Gromen’s message is clear: the financial system is being rewritten in real time. Gold is reclaiming its role<\/strong> as the foundation of global reserves\u2014not just because it\u2019s valuable, but because it\u2019s trustworthy<\/strong>.<\/p>\n At ITM Trading<\/strong>, we help our clients:<\/p>\n Acquire physical gold and silver<\/strong><\/p>\n<\/li>\n Diversify away from vulnerable digital assets and fiat currencies<\/p>\n<\/li>\n Build portfolios that can weather inflation, recession, and geopolitical shocks<\/p>\n<\/li>\n<\/ul>\n
Featuring Luke Gromen on The Daniela Cambone Show \u2013 Presented by ITM Trading<\/em><\/p>\n
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\nA Global Shift: From Treasuries to Gold<\/h3>\n
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\nCapital Controls Are No Longer a Theory<\/h3>\n
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\nThe Fed\u2019s Next Move: Abandon Inflation Control?<\/h3>\n
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\nGold: A Central Bank Favorite for a Reason<\/h3>\n
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\nWhat About Bitcoin?<\/h3>\n
\nWhy Americans Haven\u2019t Reacted\u2014Yet<\/h3>\n
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\nThe \u201cMoon\u201d Scenario: How High Could Gold Go?<\/h3>\n
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\nFinal Thoughts and Call to Action<\/h3>\n
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