Warsh Must Choose The Dollar Or The Bond Market | Luke Gromen

On this episode of Forward Guidance, host Felix interviews Luke Groman, founder of Forest for the Trees, one week before incoming Fed Chair Kevin Warsh's first FOMC meeting amid unprecedented geopolitical and financial turmoil. Groman delivers a stark warning that physical commodity constraints from the Iran blockade will trigger severe financial crisis within 60 days, contradicting Wall Street consensus. He reveals China has absorbed a shocking 4-5 million barrel per day oil import collapse without economic damage, undermining assumptions about U.S. leverage, while NBC reports cite Pentagon officials confirming Chinese shoulder-fired missiles downed a U.S. F-15 and that China supplied advanced stealth-detection radar to Iran. Groman accuses Warsh of planning to gaslight the public by shifting Treasury purchases from the Fed to deregulated banks in what amounts to QE by another name, while claiming the administration's Iran war has destroyed Bessent's economic plan by spiking front-end rates just as Treasury shifted issuance there. He argues the Fed faces an impossible choice between sacrificing the dollar or the bond market, predicting foreigners will dump the $9.5 trillion in Treasuries they hold to buy oil and dollars as reserves run dry, triggering a debt spiral given 122% debt-to-GDP and 6% deficits heading to 10%. Groman reveals his adjusted Warren Buffett valuation metric shows U.S. stocks more overvalued than the 2000 dot-com peak or 2021 highs, the highest in 65 years. He discusses how China's 185-country yuan swap line network has ended U.S. monopoly on financial leverage, evidenced by the UAE threatening to price oil in yuan to extract dollar swap lines before leaving OPEC. The conversation covers Japan and Korea trading like emerging markets since the October Busan summit, suggesting either imminent debt crises or a secret U.S. deal to reshore manufacturing there via currency destruction. Groman predicts gold and Bitcoin are telegraphing coming equity market collapse unless massive liquidity injections arrive soon.

• Groman predicts physical commodity constraints will trigger severe financial crisis within 60 days as nations hit oil reserve bottoms and sell Treasuries.
• China has absorbed 4-5 million barrel per day oil import collapse without economic damage, showing 55% year-over-year increase in EV charging infrastructure.
• NBC reports cite Pentagon officials confirming Chinese shoulder-fired missiles downed U.S. F-15 and China supplied advanced stealth-detection radar to Iran.
• Groman accuses incoming Fed Chair Warsh of planning to gaslight public by shifting QE from Fed to deregulated banks while claiming hawkish balance sheet reduction.
• Adjusted Warren Buffett valuation metric shows U.S. stocks more overvalued than 2000 dot-com peak, highest reading in 65 years of data.
• UAE threatened to price oil in yuan to extract dollar swap lines from U.S., then left OPEC, demonstrating China's 185-country yuan swap network ended U.S. leverage monopoly.
• Fed faces impossible choice between sacrificing dollar or bond market as foreigners holding $9.5 trillion in Treasuries will sell to buy oil and dollars.