So it begins.
-
So it begins.
Danish pension fund to dump US treasuries "The US is basically not a good credit and long-term the US government finances are not sustainable," says chief investment officer.
Europe holds $8 trillion in USA bonds and equities. This is just the beginning.
@nemeciii Why should we prop up the usa dollar when they are a threat to EU and Canada?
-
So it begins.
Danish pension fund to dump US treasuries "The US is basically not a good credit and long-term the US government finances are not sustainable," says chief investment officer.
Europe holds $8 trillion in USA bonds and equities. This is just the beginning.
The prices they go at, might make them a ridiculously funny investment.
Any such purchase, of course is dependent on the United States remaining a thing. That risk is significantly more than zero than probably more than 10 or 30%.
The United States is a currency sovereign, so we can always pay out treasuries. What the dollars by though are completely separate issue.
-
Yes, exactly a run on US treasuries globally is a financial disaster for those that hold treasuries.
Japan, China, US pension funds, banks that hold treasuries.
I am kind of curious how this affects stable coins.
-
@nemeciii Why should we prop up the usa dollar when they are a threat to EU and Canada?
It isn’t about propping up the US dollar. Exports to the US mean exporting nations have a bucket of dollars. In order to retain the purchasing power of those dollars you put them in treasuries because it defrays the cost of inflation and they make it a little bit of money.. normally it would simply be the same thing as a savings bank.
Trump’s trade war has, of course made that much more problematic along with his territorial ambitions for the sake of his billionaire buddies
-
It isn’t about propping up the US dollar. Exports to the US mean exporting nations have a bucket of dollars. In order to retain the purchasing power of those dollars you put them in treasuries because it defrays the cost of inflation and they make it a little bit of money.. normally it would simply be the same thing as a savings bank.
Trump’s trade war has, of course made that much more problematic along with his territorial ambitions for the sake of his billionaire buddies
In short, the collapse of US treasuries globally is a real problem. Although I kind of wonder for countries that have US denominated debt if this cannot be used for their advantage to clear their debt.
Imagine buying incredibly inexpensive treasuries that are supposed to come due.. in a few years or whatever. Depending on the price for US treasury could hand them wants of US dollars that they can just hand to the creditor and say here
-
So it begins.
Danish pension fund to dump US treasuries "The US is basically not a good credit and long-term the US government finances are not sustainable," says chief investment officer.
Europe holds $8 trillion in USA bonds and equities. This is just the beginning.
Well, there it is - the beginning of the end of the US dollar as the world reserve currency.
-
@nemeciii That pension fund, if the AI generated article can be believed, holds $100 million in US bonds. The difference between $100 million and $8 trillion is about $8 trillion. I don't doubt there are rumblings and people are rightfully pissed at Trump, but page me when we actually hit statistical significance.
This is a little pebble that might start an avalanche. It's largely a financial decision, not political. All those rich people at Davos might start taking a hard look at US Treasury securities. And then...
""Thus, it is not directly related to the ongoing rift between the U.S. and Europe, but of course that didn't make it more difficult to take the decision," he added."
-
So it begins.
Danish pension fund to dump US treasuries "The US is basically not a good credit and long-term the US government finances are not sustainable," says chief investment officer.
Europe holds $8 trillion in USA bonds and equities. This is just the beginning.
@nemeciii #floodthezone with U.S. Debt.
You cannot sell that which there is too much OF. Supply > Demand and the dollar gets flushed down the toilet. And even Melon Husk cannot save you. He's not got even $1T USD of any THING. No asset, worth, valuation comes within $500B or .5T (most likely it is MUCH less). So what ya' gonna do? Even ALL the Broligarchs and Las Vegas Casino families can **not** rescue #47 if he gets stuck in the Tar Baby of #Greenland
-
So it begins.
Danish pension fund to dump US treasuries "The US is basically not a good credit and long-term the US government finances are not sustainable," says chief investment officer.
Europe holds $8 trillion in USA bonds and equities. This is just the beginning.
@nemeciii What China has been doing quietly for almost a decade now, and that should worry the US more
-
@nemeciii With zero immigration U.S. gdp is growing much more slowly than a year ago. But we're still piling on the debt. So debt / gdp is growing ever faster.
@kralcttam @nemeciii ..yes...all the fundamentals for a robust US future the dithering fool of a president has squandered....nat'l debt now over US$38.++Trillion & rapidly growing...interest exp on that debt exceed US$1.0T this fiscal yr & growing. Killing immigration (and immigrants, horrifyingly), science, climate & other research, universities, free trade, rule of law, reputation, etc all point unstoppably to demise of US. Save an immediate impeachment (don't
) -
So it begins.
Danish pension fund to dump US treasuries "The US is basically not a good credit and long-term the US government finances are not sustainable," says chief investment officer.
Europe holds $8 trillion in USA bonds and equities. This is just the beginning.
-
So it begins.
Danish pension fund to dump US treasuries "The US is basically not a good credit and long-term the US government finances are not sustainable," says chief investment officer.
Europe holds $8 trillion in USA bonds and equities. This is just the beginning.
@nemeciii big challenge is...what else to do with $8 trillion? The Danish fund worked out alternatives...interested to know what they did. This newsletter lays out some of the difficulties with everyone running for the T-bill exit at the same time...or even over time. Makes sense to sell America with the current lunatic leading the country....where to go elsewhere becomes the question...good info in the link
https://acemaxxanalytics.substack.com/p/trumps-greenland-tariffs-vs-europes?open=false -
@nemeciii big challenge is...what else to do with $8 trillion? The Danish fund worked out alternatives...interested to know what they did. This newsletter lays out some of the difficulties with everyone running for the T-bill exit at the same time...or even over time. Makes sense to sell America with the current lunatic leading the country....where to go elsewhere becomes the question...good info in the link
https://acemaxxanalytics.substack.com/p/trumps-greenland-tariffs-vs-europes?open=falseThe fact that this article has as a central unquestioned assumption that US bonds are still "safe" totally undermines its credibility and shows that its author doesn't get it. The whole point is that they are obviously no longer safe at all. The US under Trump explicitly does not feel bound by treaties or contracts. Who in their right mind would discount Trump deciding one day that the debt is "unfair and null and void"?
-
So it begins.
Danish pension fund to dump US treasuries "The US is basically not a good credit and long-term the US government finances are not sustainable," says chief investment officer.
Europe holds $8 trillion in USA bonds and equities. This is just the beginning.
@nemeciii They're selling $100 million worth.
Daily trading volume of US treasuries is ~900 billion (https://www.brookings.edu/articles/whats-going-on-in-the-us-treasury-market-and-why-does-it-matter/).
That's 0.01% of treasuries traded in a single day.
-
@nemeciii They're selling $100 million worth.
Daily trading volume of US treasuries is ~900 billion (https://www.brookings.edu/articles/whats-going-on-in-the-us-treasury-market-and-why-does-it-matter/).
That's 0.01% of treasuries traded in a single day.
@rimu I know.
Deutsche Bank floated an idea to dump it all from every country.
-
The fact that this article has as a central unquestioned assumption that US bonds are still "safe" totally undermines its credibility and shows that its author doesn't get it. The whole point is that they are obviously no longer safe at all. The US under Trump explicitly does not feel bound by treaties or contracts. Who in their right mind would discount Trump deciding one day that the debt is "unfair and null and void"?
-
@mattesilver this isn't a bluff this is a standoff at high noon.
You either renounce Greenland plans or we'll burn it all.
-
@nemeciii Well that is gonna fucking sting....
@nuintari not this one but the Deutsche Bank idea of dumping it all.
-
@nemeciii With zero immigration U.S. gdp is growing much more slowly than a year ago. But we're still piling on the debt. So debt / gdp is growing ever faster.
There are many ways the US administration is sabotaging growth:
- No more subsidies for population/labour force (SNAP, ACA, etc)
- Science no longer supported (many scientific agencies now drastically smaller, they were economic growth engines)
- Shrank the bureau of labour statistics, trying to dictate bad financial policy to the fed.
- Hunting down and detaining/deporting low-cost workers. -
There are many ways the US administration is sabotaging growth:
- No more subsidies for population/labour force (SNAP, ACA, etc)
- Science no longer supported (many scientific agencies now drastically smaller, they were economic growth engines)
- Shrank the bureau of labour statistics, trying to dictate bad financial policy to the fed.
- Hunting down and detaining/deporting low-cost workers.The lack of response by us stock markets to these is either criminally negligent, or actively criminal. That's why I am now calling it the "greater fool market".
