So much of the way the United States works is having a nearly limitless source of borrowing at low rates in the form of selling treasury bonds.
The further we get away from that being true, the more precarious things become.
Danish pension fund divesting US Treasuries
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Re: Danish pension fund divesting US Treasuries
#42It's symbolism. But it's important symbolism. Far more notable, I think, is Macron saying this morning that Europe needs more investment from China. Canada signing a deal with China to allow their cars to be sold in the country.
It's all a sliding slope until it reaches a breaking point and falls off like a cliff.
EDIT: to quote the Canadian PN earlier today:
“American hegemony in particular helped provide public goods, a stable financial system... this bargain no longer works. Let me be direct. We are in the midst of a rupture, not a transition... recently, great powers have begun using economic integration as a weapon. Tariffs as leverage ..."
Re: Danish pension fund divesting US Treasuries
#43Earlier quoted context omitted.
The US starts more wars until its eventual complete collapse. See The Rise and Fall of the Roman Empire. We're operating out of a playbook for imperial destruction word for word.
"History buffs" that literally only know the Roman Empire and Hitler should probably try expand their purview.
France and most of the European imperialists before the first world war.
Re: Danish pension fund divesting US Treasuries
#44> $100 million Is that a lot? Seems relatively inconsequential in the grand scheme of things, but perhaps a warning of larger moves to come.
The other thread going on this topic says that Europe could sell about $10 trillion. That’s a lot, but also, it’s only a bit over 10 days trading at normal volumes (according to the numbers being discussed in this thread).
Re: Danish pension fund divesting US Treasuries
#45The US keeps voting to raise its debt cieling. Theres not end in sight to endless taxation by both parties. Nobody is reducing spending and delivery continues to go down.
Congress passed a tax cut last year for the wealthiest as part of the One Big Beautiful Bill (“OBBB”) that increases the debt by $1T-$4T over ten years. What taxation by both parties? The US pays $800B/year to service debt. It pays $800B-$1T/year for the military. What would you like cut that is discretionary? There appears to be no appetite to raise taxes on the wealthy, pay down debt, and reduce military spending.…
The deficit reliably starts to come down whenever a Democrat leadership is in place. It then jumps back up under the Republicans.
Re: Danish pension fund divesting US Treasuries
#46Re: Danish pension fund divesting US Treasuries
#47Earlier quoted context omitted.
Congress passed a tax cut last year for the wealthiest as part of the One Big Beautiful Bill (“OBBB”) that increases the debt by $1T-$4T over ten years. What taxation by both parties? The US pays $800B/year to service debt. It pays $800B-$1T/year for the military. What would you like cut that is discretionary? There appears to be no appetite to raise taxes on the wealthy, pay down debt, and reduce military spending.…
The deficit reliably starts to come down whenever a Democrat leadership is in place. It then jumps back up under the Republicans.
Well, the unsophisticated and low education keep voting for Republicans, so what do? If you’re an individual, if you can, the best you can do is be prepared to get out and not have exposure to the US financially or from a tax perspective. Otherwise you’re stuck going over the cliff economically with the lemmings due to an uneducated, unsophisticated, vibe driven electorate and a suboptimal political and governance system lacking sufficient checks and balances to prevent this outcome.
Maybe we’re lucky and adults come back into power, but hope alone is not a strategy. No one is coming to save you, prepare accordingly. I have prepared accordingly to decouple from the US entirely as a citizen, if necessary. It’s regrettable and I have no other solution for those inquiring. You can’t control the winds, but you can adjust your sails. My genuine condolences and sympathies if one cannot escape the US either via income, wealth, or some form of visa (lineage, family, work, etc).
(derived from first principles)
Re: Danish pension fund divesting US Treasuries
#48What happens when USD stops becoming the the reserve currency for the world? And who takes its place?
Probably some type of balanced trade. Holding each trade partners currency and balancing it at times. Or even between multiple holders and currency pairs.
If there is need you can now build very complicated systems as everything is digital anyway.
Maybe stable coins would be finally useful. Each currency has own stable coin and then they are automatically traded in massive market... /s
Re: Danish pension fund divesting US Treasuries
#49The US keeps voting to raise its debt cieling. Theres not end in sight to endless taxation by both parties. Nobody is reducing spending and delivery continues to go down.
Why should taxes "end"?
Re: Danish pension fund divesting US Treasuries
#50OK you asked for it Denmark. I'm selling all my legos.