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Luke Gromen

Founder, Forest for the Trees (FFTT) · Macro analyst · Founder, Forest for the Trees

Quotes

It's a very simple choice. The dollar or the bond market, they're gonna have to sacrifice.

2026-06-11-podcast-forward-guidance-warsh-must-choose-the-dollar-or-the-bond-market· 2026-06-11#mega-issuance-supply-wave#dealer-balance-sheet-as-market-constraint

The debt is too high and there isn't enough balance sheet to finance it without the Fed's help. If you're going to spend two and a half years shifting issuance to the front end because the back end is blowing out, you can't start an inflationary war that sends the front end up. I think the physical world is going to start kicking the financial world in the head sometime in the next one to two months.

2026-06-11-podcast-forward-guidance-warsh-must-choose-the-dollar-or-the-bond-market· 2026-06-11#mega-issuance-supply-wave#energy-shock-2026-vs-2022

The longer this war goes on, the better it is for gold, in no small part because we've seen the Chinese be able to... net settle any surpluses in gold... which is really, really good for gold.

The Chinese had implemented helium export bans last week, which I thought was really interesting... the price of helium's on the floor... China thinks the US might curtail how much helium we'll send them... it's used the most important thing as it relates to our economy today is semiconductor chip production.

In 1H26 alone, they shifted 1.4 million barrels a day of demand for oil to EVs. They reduced demand overall by 3 to 4 million barrels a day... China dominates the production of [solar/EV/battery] globally... you can reduce your oil demand, you can reduce your demand for dollars as a result.

You've seen continued constriction of rare earth volumes... numerous articles [that] the Chinese are not abiding by what they've agreed to in the trade agreements, which is exactly what you'd expect if they want this thing to last longer.

You've got three big creditors structurally in the global economy... now turning borrowers to build their... defense stimmies. We're all borrowing money and we are going to build out a defense... and building this stuff out is going to be inflationary because you're not going to use China for any of it.

Notes

Luke Gromen

One-line summary: Macro analyst (FFTT) focused on fiscal dominance, Treasury issuance dynamics, the dollar-vs-bond-market tradeoff, and gold; recurring Forward Guidance guest.

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