🟢 [E7504] TBAC acknowledged 'foreign demand is absorbing a smaller proportion of net UST issuance in recent years than was true previously.' China's gold accumulation strategy and SGE pricing control represent a deliberate de-dollarization campaign. Gromen cites Felix Somary's pre-WWI observation that Chinese preference for gold over paper money reflected lessons from Mongol-era hyperinflation — 'they were a generation ahead of Europe.'

🟢 [E7502] Gromen argues Treasury's choice to issue T-Bills (at higher rates on shorter duration) rather than risk long-end bond market dysfunction represents emerging-market-style behavior — deliberately choosing to 'hurt the USD' rather than damage the bond market and real economy. This signals inevitable USD debasement to manage the debt burden, constituting fiscal dominance acceleration.

💬 [E7510] Treasury's T-Bill shift using Fed RRP drawdowns functions as sterilized QE — releasing reserves into the system without formal balance sheet expansion. This may temporarily boost risk assets including uneconomical renewable stocks, but the core signal is that the long end of the Treasury market cannot absorb needed issuance without Federal Reserve intervention or yield curve normalization.

🟢 [E7501] TBAC reports reveal the long end of the UST market lacks sufficient liquidity for needed issuance volumes, 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' since Alexander Hamilton.

🟢 [E7509] Gromen argues the physical vs digital economy divergence is accelerating: 5% rates kill low-EROEI alternative energy (digital/financial economy dependent) while favoring high-EROEI fossil fuels and nuclear (physical economy). Treasury's forced USD debasement path is inherently inflationary, supporting the inflation-over-deflation thesis despite deflationary shock risks from severe recession.

🟢 [E7505] At 5% interest rates, alternative energy sources with EROEI ratios of 3.5-5x become uneconomical versus fossil fuels at 30-100x EROEI. Orsted took a $5.6B impairment as evidence. Gromen argues this rate environment structurally favors fossil fuels and nuclear over renewables, making low-EROEI projects fundamentally unviable at current discount rates.

🟢 [E7503] China's unprecedented central bank gold purchases and Shanghai Gold Exchange premium control demonstrate successful de-dollarization. SGE premium fell from 6% to 1.55% as western gold prices rose to meet Chinese levels rather than Chinese prices falling, proving China's pricing power through CNY-denominated gold contracts. Charles Gave (2018): 'When gold outperforms a long-dated US government bond over five years...the Chinese are winning.'

🟢 [E7506] Gromen identifies 30 central bank rate cuts in 3 months globally, paralleling the 1H2019 environment. Treasury's shift to T-Bill issuance functions as sterilized QE through Fed RRP release, effectively injecting liquidity while maintaining the appearance of tight monetary policy. This signals a global rate-cutting cycle is underway.

🟢 [E7508] Gromen is explicitly bullish on Bitcoin as a beneficiary of Treasury's USD debasement strategy. The fiscal dominance framework — where Treasury must choose between bond market dysfunction and currency debasement — provides a structural tailwind for Bitcoin alongside gold as hard money alternatives to a deliberately weakened USD.

🟢 [E7507] Gromen frames the Treasury's T-Bill pivot as fiscal dominance overriding monetary policy — Treasury choosing market function over cost efficiency is emerging-market-style behavior. The use of Fed RRP drawdowns to fund T-Bill issuance represents sterilized QE, creating a framework where fiscal needs dictate monetary conditions regardless of the Fed's stated policy stance.

💬 [E7511] China's strategic gold accumulation and SGE pricing control are presented not as an equity thesis but as evidence of China's successful challenge to dollar hegemony. China's ability to influence global gold prices through CNY-denominated contracts — forcing western prices up to meet Chinese levels — represents a structural shift in monetary power dynamics relevant to China's broader economic positioning.