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Danish pension fund divesting US Treasuries

reuters.com

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Re: Danish pension fund divesting US Treasuries

#91

Post by Mindwipe »

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…

It's symbolism unless planting a stooge to lower interest rates below any economic justification in April causes a significant slide on the dollar's value. In which case its a great investment move.

Re: Danish pension fund divesting US Treasuries

#94

Post by alphazard »

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…

> It's symbolism.

It's not. This is where the financial rubber meets the road, actions have consequences, and the rest of the world is looking at the US as increasingly unlikely to pay above inflation on its debts.

The people managing the pension funds (if they are acting in good faith) really want to generate yield, and really want to preserve capital for the Danish people. They don't want to symbolically do those things, they want to actually do them. If treasuries were still part of what they believe to be the best strategy, they would still be holding them.

Re: Danish pension fund divesting US Treasuries

#95

Post by fooster »

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.

Chinese are Canadian adversaries mostly because of the US. The US more or less forced Canada to hold Meng Wanzhou, which caused a huge rise in diplomatic tensions and cost Canada billions. Some thanks we got for that.

Re: Danish pension fund divesting US Treasuries

#96

Post by bell-cot »

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…

It's only symbolism if you believe that there's a 0% chance of US/Denmark hostilities. Otherwise - d'oh, yes, you don't want to risk being stuck holding IOU's from your enemy, which he is rather likely to dishonor.

Re: Danish pension fund divesting US Treasuries

#97

Post by throw20251220 »

Someone should tell the orange guy that we can also stop respecting our obligations. It’s a two way street. It would be a shame if something happened to your ITAR-protected secrets, for example. The US would lose a lot of leverage if they cannot use European military bases. Let’s see how fast Trump goes to bed with Putin…

Re: Danish pension fund divesting US Treasuries

#98

Post by actionfromafar »

petcat wrote: post #3
adrr wrote: post #2

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

That would never happen until the US Navy ceases to be effective globally.

The argument made like that is an original argument bent backwards. The argument was that the US Navy guaranteed open shipping lanes and kept Pax Americana. Now we get closed shipping lanes and Bellum Americanum.

Re: Danish pension fund divesting US Treasuries

#99

Post by raincole »

btbuildem wrote: post #73
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…

It's not pure symbolism. The most effective way to reduce the global threat the US is appearing to pose more as of late, is to hit the dollar. The US economy is in a very precarious state, tensions along political ideology lines are high, and it would not take much more than a worsening of economic conditions plus a catalyst event to kick off armed unrest within the country. A new civil war that drives the US to frag…

> Danish pension fund AkademikerPension said on Tuesday it would sell off its holding of U.S. Treasuries, worth some $100 million,

> AkademikerPension has in total 164 billion Danish crowns ($25.74 billion)

So they are moving about 0.4% of their investment.

Not pure symbolism, but $100 million is really nothing when we're talking about US treasuries. In the past decade, China has reduced their holding by about $600B.

Re: Danish pension fund divesting US Treasuries

#100

Post by whimsicalism »

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 fiscal trajectory of the US absolutely matters for growth, inflation expectations, tax expectations, and government capability.
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