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.
-
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"?
-
@nemeciii yeah no, if they start dumping en masse the price will drop, and it'll cause a monetary crisis in EU, so it's a double edged sword. Not a good bluff.
@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".
-
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"?
-
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
Personally not holding any #USA #stocks anymore.Anyone in #Europe can consider this as part of their #derisking strategy.
-
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 Getting rid of American digital bondage is also so primordial too. Just yesterday, I removed Windows altogether from my computer.
-
@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.
-
@ariaflame @nemeciii It is no coincidence that a private company in Denmark has taken the first step.
I would suggest reading a report by Deutsche Bank (also private) that analyzes the possible effects, advantages, and disadvantages of a financial war (using capital as a weapon) in the event of a total escalation with the US.
As I said, it is difficult to quantify trust, but when it is lost, it has brutal effects on perception and decision-making.
-
@Huopa It already crumbles since Shrimps first term. Now, as the US have arrived to being a fascist state, where most inhabitants stay all too indifferent towards their own oppression, I'd expect to degrade the rest of trust from elsewhere in no time. Greenland was really a notable peak, as that affects NATO.
@jrp Of course the first term was already a shock to the trust of US as a geopolitical ally, but the institutions and economy are very strong in US and Trump was not really able to destroy the trust in them. This second round it is clear that trust to US institutions begins to shake a little. Greenland is indeed the notable peak for this phenomenon, but there has been a lot already before this. I am optimist and I think US will survive Trump second term, but things will not be the same anymore.
-
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 not the only ones. Black Rock also pulling money outta USA. https://www.youtube.com/watch?v=oTBC6EBHNPY
-
@nemeciii I guess it will be a slow and long crumbling of trust in US economy and politics.. in 5 years it will be interesting to see if this has turned out to be true.
@huopa @nemeciii Canadians, who had winter homes in Florida, are selling and going elsewhere. https://www.youtube.com/watch?v=mWKgFE-JyqM
-
@nemeciii Getting rid of American digital bondage is also so primordial too. Just yesterday, I removed Windows altogether from my computer.
-
@swggrkllr3rd @nemeciii Linux Mint. I have been dual-booting for about 1 year. Yesterday I removed Windows completely.
