Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Danish pension fund divesting US Treasuries

reuters.com

Post reply on HN
Print view View original

51–60 of 857 posts

Re: Danish pension fund divesting US Treasuries

#51

Post by luke5441 »

hypeatei wrote: post #16
bowmessage wrote: post #7

> $100 million Is that a lot? Seems relatively inconsequential in the grand scheme of things, but perhaps a warning of larger moves to come.

It's not a lot. Multiple countries could offload hundreds of billions and the U.S. Treasury would buy them up immediately (and probably ask the Federal Reserve for some help the next day) I can't find the program name at the moment, but the Treasury plans for situations like this regularly.

The FED can print as much money as it wants. Defaulting this way on US debt won't make the US a more desirable debtor nation.

Re: Danish pension fund divesting US Treasuries

#52

Post by tinfoilhatter »

adrr wrote: post #2

What happens when USD stops becoming the the reserve currency for the world? And who takes its place?

The petrodollar (a product of Kissinger) has been in collapse since Saudi Arabia began divesting from it.

We've been printing pretend money for quite some time, and supressing the value of precious metals (which is why you're now seeing silver bullion sell for $100+ an ounce). Copper is also selling out now.

These precious metals are extremely valuable because they're used to manufacture all of the technology consumers and nation states rely on daily. We're going to see a regression towards mercantilism and commodity hoarding. Most likely fiat will be abandoned in favor of crypto as we enter a new era of hyperinflation.

Buckle up - 2026 is going to be a wild ride.

Re: Danish pension fund divesting US Treasuries

#53

Post by hypeatei »

lostlogin wrote: post #20
hypeatei wrote: post #16

Earlier quoted context omitted.

It's not a lot. Multiple countries could offload hundreds of billions and the U.S. Treasury would buy them up immediately (and probably ask the Federal Reserve for some help the next day) I can't find the program name at the moment, but the Treasury plans for situations like this regularly.

> the Treasury plans for situations like this regularly. For attacking allies? I know that’s not what you meant but we must be pushing up against scenarios that haven’t been considered possible.

Definitely, I think there'd be a crisis if our biggest holders like the UK and Japan sold off their treasury securities but some "small" selloffs aren't outside the realm of possibilities. Trillions in selloffs though, that might get interesting.

Re: Danish pension fund divesting US Treasuries

#55

Post by 4gotunameagain »

JumpinJack_Cash wrote: post #37

This divestment is so little and with so little aim. The whole situation is been caused by a single guy and 400 enablers, whereas the US is a 400 million people country. The correct form of reaction is a punch in the face during a bilateral meeting, Zelensky came close to doing it but unfortunately he resisted his impulse , that's where the epicenter of all newly generated global problems in the last 10 years lies, i…

The americans that support Trump are many more than 400.

Also, them having elected Trump TWICE, why would they ever be trusted ?

Also when the alternatives are people like.. Hilary Clinton ?

Re: Danish pension fund divesting US Treasuries

#56

Post by epistasis »

exabrial wrote: post #23

The 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.

The fund is not concerned about the debt ceiling. The are concerned about the US threatening invasion of its allies.

The debt ceiling is literally not a problem at all, unless the US were to do something as monumentally stupid as to stop allowing its GDP to grow through trade, and devalue the US dollar, in which case everybody flees US treasuries, resulting in collapse of value, causing more people to flee UST, etc....

The debt hawks are very wrong about the fundamentals of currency, but they are less dangerous than the war hawks in the White House to the US's economic future.

It's one thing to do a epically stupid invasion of Iraq on faked intelligence, which ally support. It's another thing entirely to invade allies. It will totally end US dominance in the world.

Re: Danish pension fund divesting US Treasuries

#57

Post by inetknght »

JumpinJack_Cash wrote: post #37

This divestment is so little and with so little aim. The whole situation is been caused by a single guy and 400 enablers, whereas the US is a 400 million people country. The correct form of reaction is a punch in the face during a bilateral meeting, Zelensky came close to doing it but unfortunately he resisted his impulse , that's where the epicenter of all newly generated global problems in the last 10 years lies, i…

[flagged]

Re: Danish pension fund divesting US Treasuries

#59

Post by traceroute66 »

adrr wrote: post #2

What happens when USD stops becoming the the reserve currency for the world? And who takes its place?

The USD has already been in decline as a reserve currency. The only thing that is happening is the decline is accelerating.

It is not necessarily a question of "takes its place", but more about being more serious about diversification. Or to paraphrase the old IBM saying "nobody got fired for buying USD" is no longer the case.

In terms of options you have JPY, EUR and CNY as the big-three and maybe tag AUD on top.

Re: Danish pension fund divesting US Treasuries

#60

Post by epistasis »

softwaredoug wrote: post #38

When I actually look at the data, a lot of US deficit growth came from several specific shocks, with inconsistent years of recovery. - 9/11 - Iraq War - Covid The US did recover a bit deficit-wise in Obama years, but have not reset the fiscal picture from Covid. https://fred.stlouisfed.org/series/FYFSD

What does debt pressure have to do with this? That is an unconnected topic, and not a threat to treasuries.
Post reply on HN