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Danish pension fund divesting US Treasuries

reuters.com

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Re: Danish pension fund divesting US Treasuries

#81

Post by epistasis »

qgin wrote: post #41

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.

When you say "nearly limitless" source of borrowing, the limit is the gain in global wealth. The US has been siphoning off a huge chunk of world wealth by printing dollars to serve as the currency for that wealth.

All the people complaining about "US Debt" and $26T of "net investment" or whatever don't realize that this is/was the benefit of the US being stable, strong, and friendly.

When the US is unstable, weak, and a bully, as it is now, all that goes away. The bill comes due, and the US will pay dearly. The rest of the world will pay nothing.

Re: Danish pension fund divesting US Treasuries

#82

Post by CamperBob2 »

drstewart wrote: post #19
basilgohar wrote: post #8

Earlier 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.

What are some better parallels? Seriously, no snark, please throw out some suggestions for reading. I can't think of any other country that has done this to itself.

Re: Danish pension fund divesting US Treasuries

#83

Post by afavour »

tomaskafka wrote: post #69
afavour wrote: post #42

It'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 goo…

That sounds like a rhetoric for better negotiating power against Trump. Chinese are our adversaries (EDIT: enemies, they actually bankroll Russian invasion and supply weapons) and I hope president of France understands that.

> That sounds like a rhetoric for better negotiating power against Trump.

In the Canadian example at least the deal is signed. It's not just words.

> Chinese are our adversaries

Increasingly the US is a European adversary. They are literally threatening to invade the territory of a European country! China isn't doing that.

Very easy to dismiss it as the rantings of a madman but no-one is holding him back. People didn't take the tariff bluster seriously and then it became very real.

Re: Danish pension fund divesting US Treasuries

#84

Post by KPGv2 »

shimman wrote: post #32
adrr wrote: post #2

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

Look up something called "dedollarization," it's been talked about in academic circles for quite some time and now more mainstream institutions are discussing it more too.

Yes, in my undergrad government policy classes twenty years ago, we were talking about a "basket of currencies" that would replace the USD as the global reserve.

Re: Danish pension fund divesting US Treasuries

#85

Post by csantini »

csantini wrote: post #78

So much American exceptionalism is just the Dollar exceptionalism. Without the G7 piling up dollars, there is no American exceptionalism.

At some point the US will lose the Dollar, and it will turn out that US productivity is just like everyone else's.

Re: Danish pension fund divesting US Treasuries

#86

Post by mythical_39 »

epistasis wrote: post #56
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 decision is rooted in the poor U.S. government finances, which make us think that we need to make an effort to find an alternative way of conducting our liquidity and risk management," Investment Director Anders Schelde said in a written statement.

"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.

quotes from the Reuters article

Re: Danish pension fund divesting US Treasuries

#87

Post by CamperBob2 »

petcat wrote: post #26
sonotathrowaway wrote: post #10

Earlier quoted context omitted.

You mean like how the Houthi’s unilaterally decided to shut down Red Sea shipping and the US Navy is still powerless to restore it?

That's regional politics. Nothing to do with the superiority of one navy over another

Navies appear to be obsolete (edit: I'll exempt ballistic missile subs from this statement, though.) You don't even need a navy of your own to sink another country's navy these days.

When $100M in armaments can take out a $10000M carrier, it's time to rethink things.

Re: Danish pension fund divesting US Treasuries

#89

Post by orwin »

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

The plunge around 2001 wasn't caused by 9/11, and was orchestrated a bit before. Since Clinton managed to cut a lot of spending (both due to his governance and global economics) and reduce some tax avoidance schemes, the US budget had a surplus, so the Bush admin implemented a lot of tax cuts. 9/11 and the following wars didn't had any positive impact, but without the Bush tax cuts, the US budget would still have a surplus in 2003 before the Iraq war

Re: Danish pension fund divesting US Treasuries

#90

Post by jeltz »

lostlogin wrote: post #75
4gotunameagain wrote: post #55

Earlier quoted context omitted.

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 ?

> when the alternatives are people like.. Hilary Clinton ? Would she have been worse than this? And the US had a better choice the second time.

No, I do not even think people like DeSantis or Ted Cruz would have been worse. Trump was one of the worst possible candidates the US voters could pick.
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