So it begins.
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@jik can you please share how to do the diversification you mentioned?
@BeTongLen This is the last thread I posted about this.
https://federate.social/@jik/115882541326289744 -
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 It is surprising how, in just one year, the US has gone from being an ally to a threat to Europe, so much so that such a drastic measure as financial warfare is being considered as a possible recourse (and, I hope, as a last resort).
What is clear is that Denmark is already very angry to be doing this. And we are already talking about emotional decisions in the face of constant harassment by an “ally.” This shows that the damage Trump is causing to the confidence and image of the United States will be difficult to repair in the short or medium term.
It must be remembered that the value of a currency not backed by real wealth (the dollar in this case) is more a matter of belief and appearance than reality.
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@BeTongLen This is the last thread I posted about this.
https://federate.social/@jik/115882541326289744thank you very much!
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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.
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@pedrobizbikedu @nemeciii @bmacDonald94
Shouldn’t we see the dollar dropping with this news?@EVDHmn @pedrobizbikedu @nemeciii ~ It will start quietly Denmark and France are already disposing of their holdings.
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@nemeciii "This article was generated with the support of AI and reviewed by an editor. For more information see our T&C." -Fart noises
$100 million in treasuries won't even move the needle.
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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 Well that is gonna fucking sting....
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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.
America under Trump is so odd.
After decades of kvetching about the national debt & using it as an excuse to gut the middle class, refuse to get #medicare4All , and eliminate the social safety net etc...
... the $38 trillion of the USA national debt means MAGA can't afford a war without digging themselves deeper.
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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 The "FO" phase of "FAFO" appears on the horizon.
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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 "Dump" rhymes on Trump.
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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 That's not just on Trump! It's on Congress and the corrupt business people driving the insane oligarchy, cryptocurrency and AI stock bubbles. There's not much Americans can do about the businesses except boycott them, but we need to be pushing *Congress* harder to right the bloody ship!
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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 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.
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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.
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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?
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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.
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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.
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@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
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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
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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.
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@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."
