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Danish pension fund divesting US Treasuries

reuters.com

101–110 of 857 posts

Re: Danish pension fund divesting US Treasuries

#101

Earlier quoted context omitted.

We're under active, malicious attack by 1/3 of our own eligible voters. Not clear how this will play out, as I can't think of any historical parallels.

It’s over 50% and there are plenty of plainly obvious parallels both historical and contemporary.

Far far below 50%. The media tricked some people into supporting Trump by perpetuating his obvious lies unchallenged, but now that people see what Trump is doing he is underwater on all issues.

Most other contemporary and historical parallels of authoritarians show far higher popularity of the authoritarian. Trump is nowhere close.

The biggest risk to the US is that the media is completely compromised, as are leadership at many institutions. Even in Silicon Valley, the loudest and most vocal leaders are self-destructively supporting this madness that will destroy the US's wealth, and their future wealth gains too.

Re: Danish pension fund divesting US Treasuries

#102

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.

> endless taxation by both parties.

How do you run a country without taxation? Can you point at an example?

Re: Danish pension fund divesting US Treasuries

#103
post #83

Earlier quoted context omitted.

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…

I really don't get the Greenland thing. Is there some 4D chess reason for it? The US already has military bases there and could probably have as many more as they wanted if they just asked nicely. So the whole security thing is a pretext

Re: Danish pension fund divesting US Treasuries

#104
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…

In a "might makes right" world, Europe clearly needs more might, and then it makes sense to improve relations with China; not a lot of options.

Re: Danish pension fund divesting US Treasuries

#105
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.

We're under active, malicious attack by 1/3 of our own eligible voters. Not clear how this will play out, as I can't think of any historical parallels.

It's not uncommon for democracies to be subverted by a minority party.

Nazis did it in Germany. They lost parliamentary seats in the November 1932 election, but remained the largest party with 33% of seats. The next year the country was already a dictatorship.

Communists did it in Czhechoslovakia in 1948. They led a coalition government but had just lost the previous election.

I'm worried that United States 2027 will be added to this list. If MAGA sees their grip on power starting to fade after November elections, they may try increasingly extreme measures.

Re: Danish pension fund divesting US Treasuries

#107
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.

Japan is the model of low interest rate debt and the US is not close to how low Japan was able to go, with a currency (Yen) vastly less potent than the global reserve currency.

Most of the US borrowing is domestic, very little of it is now foreign. No foreign entity can afford to absorb $2 trillion of new paper every year. That's equal to the total holdings of China + Japan. Going forward you might as well regard all US Govt borrowing as domestic, as that will essentially be the case given the scale. The UK holds $885b of treasuries, what are they going to buy annually that will make a difference at this point?

Every nation has a limitless ability to borrow internally via currency debasement, with obvious consequences. That USD debasement is why gold has gone up 10x in 20 years when priced in dollars. It's why healthcare and housing is so expensive - when priced in dollars. Cash pushed into gold in 2005, $100k, would now buy you a million dollar house. It's the dollar of course that has been hammered (among other currencies, the Euro has not done well against gold either).

The US won't stop being able to debase its currency and buy its own debt. What the US is doing is eating its hand. If it continues to get worse, it moves on to eating its arm, and so on (the US is de facto consuming its national wealth through stealth confiscation via currency destruction, rather than paying the bills with taxation directly).

Re: Danish pension fund divesting US Treasuries

#108
post #2

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

To the rest of the world - Nothing. Trade works just fine without a reserve currency.

For the USA - massive inflation. All of those dollars are coming back home, which will weaken the dollar.

Plus, there's the second-order effects from a president taking control of the fed by trumping up charges on its members. So high inflation + low/zero/negative interest rates.

Re: Danish pension fund divesting US Treasuries

#109
I personally have dumped every single US security I held in the last 2 years, US bonds have been the latest to go in the last week.

Mind you I'm a small investor (my portfolio is 100k-ish euros). I'm still exposed to US securities through ETFs though, as I have 3 different ones holding US companies, but that I ain't gonna sell them.

But for new capital I may as well provide it to others.

Re: Danish pension fund divesting US Treasuries

#110

Earlier quoted context omitted.

We're under active, malicious attack by 1/3 of our own eligible voters. Not clear how this will play out, as I can't think of any historical parallels.

It’s over 50% and there are plenty of plainly obvious parallels both historical and contemporary.

It is 49.8% (people who voted Trump in 2024) of 64.1% (people who voted in 2024), or 31.9% or ~1/3 of the total eligible voting population, which is what your parent states.
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