🟢 [E7064] Expensive USD hedging costs for foreign private investors are cited as one of four structural impediments preventing sustainable Treasury market funding, implying the dollar's strength is paradoxically undermining the government's ability to finance deficits and will ultimately force policy responses that weaken the dollar.

🟢 [E7057] FFTT warns of Treasury auction stress as primary dealers and hedge funds providing marginal UST funding could withdraw if the yield curve inverts. Cites 1951 quote from William McChesney Martin Jr. about using 'trick issues' to lock up longer-term debt, drawing parallels to modern yield curve control as a mechanism to finance government deficits.

🟢 [E7058] The Fed is considering WWII-era yield curve control (yield caps) to finance government deficits, an implicit admission that market-based demand for Treasuries is insufficient to fund structural US fiscal shortfalls without financial repression.

🟢 [E7065] Multiple converging risks identified as of January 31, 2020: Fed policy error from attempted balance sheet shrinkage, early COVID economic disruption (empty China flights, Disney losing $7.5B), Treasury auction stress, Iranian geopolitical escalation, and US corporate debt at 30% of GDP creating systemic vulnerability to revenue shocks.

🟢 [E7059] FFTT argues gold benefits regardless of 2020 election outcome — a Sanders vs Trump scenario is highly favorable for gold either way. Global debt levels exceeding sustainable carrying capacity force central banks toward financial repression with negative real rates, structurally supporting gold as the primary beneficiary.

🟢 [E7060] Martin Armstrong quoted: 'At some point, capital begins to figure out who is the greatest risk, and the risk is government.' This frames gold as a hedge against sovereign risk in a world where debt far exceeds sustainable carrying capacity, using the St. Matthew Island reindeer metaphor (population crashed from 6,000 to 42).

💬 [E7063] Iranian media claims a CIA official was killed in an Afghanistan plane crash, which FFTT flags as a potential catalyst to reignite US-Iran tensions. This is identified as one of multiple converging risk factors alongside Fed policy error and COVID economic impacts.

🟢 [E7062] US nonfinancial corporate debt exceeds 30% of GDP versus approximately 22% during the late 1990s Asian Crisis, making US companies significantly more vulnerable to revenue losses. Disney cited as losing $7.5B in market cap from regional virus concerns alone, illustrating corporate fragility at elevated leverage levels.

🟢 [E7055] FFTT argues the Fed will fail at shrinking its balance sheet due to four structural impediments: unlikely entitlement/defense spending cuts, foreign central banks not buying USTs, Basel 3 regulations constraining bank purchases, and expensive USD hedging costs for foreign private investors. This forces eventual aggressive balance sheet re-expansion.

🟢 [E7056] Gromen cites William White (OECD, 2016) warning that macroeconomic ammunition to fight downturns is essentially all used up, and that many debts will never be serviced or repaid. Global debt levels far exceed sustainable carrying capacity, forcing central banks toward financial repression with negative real rates.

💬 [E7066] Bitcoin is mentioned alongside gold and real assets as a beneficiary of the thesis that global debt levels far exceed sustainable carrying capacity, forcing central banks toward financial repression. No specific price targets or positioning details provided for Bitcoin in this note.

🟢 [E7061] Gromen identifies nearly empty flights between China's second and third most populous cities during peak travel season as an early COVID economic warning signal. He compares this to empty NYC-London flights observed during 2008 crisis depths, noting historically such observations proved to be contrarian buy signals rather than sell signals.