🟢 [E7330] TBAC acknowledged that foreign demand is absorbing a smaller proportion of net UST issuance than previously. Combined with China's gold accumulation strategy and pricing control via the Shanghai Gold Exchange, Gromen frames this as an accelerating de-dollarization campaign that erodes US financial hegemony. Historical parallel drawn to pre-WWI Europeans mocking Chinese gold preference — China was 'a generation ahead.'

🟢 [E7328] Gromen argues Treasury's choice to issue T-Bills despite an inverted curve represents emerging-market-style behavior — prioritizing bond market function over cost efficiency — which signals choosing to 'hurt the USD' rather than damage the bond market and real economy. This constitutes an admission of inevitable USD debasement to manage the debt burden, a hallmark of fiscal dominance.

🟢 [E7327] TBAC reports reveal the long end of the UST market lacks sufficient liquidity for needed issuance, forcing Treasury to shift toward T-Bills despite the inverted yield curve (paying higher short-term rates). Druckenmiller called Yellen's failure to term out debt at 2-year 15bps instead of 10-year 70bps or 30-year 180bps 'the biggest blunder in the history of the Treasury' going back to Alexander Hamilton.

🟢 [E7336] Treasury's inability to term out debt even when 30-year rates were at 180bps reveals a structural crisis in long-end demand. TBAC confirmed foreign buyers absorbing a shrinking share of net UST issuance. The resulting T-Bill concentration creates rollover risk and forces perpetual short-duration funding of a growing deficit — classic emerging market debt profile.

🟢 [E7334] Gromen frames the physical vs digital economy divergence through EROEI analysis: 5% discount rates destroy the economics of low-return alternative energy (3.5-5x EROEI) while high-EROEI fossil fuels (30-100x) remain viable. Treasury's T-Bill strategy signals inflationary USD debasement path, favoring physical assets (gold, oil, Bitcoin) over financial assets.

💬 [E7337] Gromen warns that Treasury's T-Bill shift may temporarily boost uneconomical renewable stocks via liquidity injection, creating a potential squeeze. However, the structural risk is a deflationary shock where severe recession overwhelms the inflationary fiscal/monetary dynamics, and short-term USD positioning reversals could temporarily strengthen the dollar before structural decline.

🟢 [E7333] At 5% interest rates, alternative energy with EROEI ratios of 3.5-5x becomes uneconomical versus fossil fuels at 30-100x EROEI. Orsted's $5.6B impairment cited as direct evidence. Gromen argues high rates structurally favor fossil fuels and nuclear over renewables, making traditional energy companies the primary beneficiaries of the rate environment.

🟢 [E7329] China's unprecedented central bank gold purchases and Shanghai Gold Exchange premium control demonstrate successful de-dollarization. When SGE premium fell from 6% to 1.55%, western gold prices rose to meet Chinese levels rather than Chinese prices falling — showing China's pricing power through CNY-denominated gold contracts. Charles Gave (2018): when gold outperforms long-dated USTs over 5-year moving average, 'the Chinese are winning.'

🟢 [E7332] Treasury's T-Bill shift effectively uses the Fed's Reverse Repo Facility (RRP) as a sterilized QE release mechanism, injecting liquidity without formal balance sheet expansion. Combined with 30 global rate cuts in 3 months paralleling 1H2019, Gromen sees this as a major liquidity regime shift where fiscal authorities circumvent monetary tightening.

🔴 [E7335] Gromen is bullish on Bitcoin alongside gold as a beneficiary of Treasury's USD debasement strategy and fiscal dominance. The structural shift toward T-Bill issuance and sterilized QE via RRP drawdown creates favorable macro conditions for Bitcoin, challenging the bear phase thesis as the liquidity regime shifts toward monetary accommodation.

🟢 [E7331] Gromen identifies fiscal dominance acceleration as the core regime: Treasury admitting long-end liquidity constraints signals inevitable USD debasement. He notes 30 central bank rate cuts globally in 3 months, paralleling the 1H2019 environment, suggesting a coordinated global easing cycle is underway alongside structural fiscal deterioration in the US.