Danish pension fund divesting US Treasuries • Hacker News Board

Re: Danish pension fund divesting US Treasuries

#131

Post by sekai » Tue, Jan 20, 2026, 4:10 PM UTC

alephnerd wrote: post #120

moogly wrote: post #104

Earlier quoted context omitted.

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.

The EU can't mend ties with China without giving up on Ukraine as China's FM Wang Yi has stated [0] on multiple occasions [1]. Additionally, in the Chinese foreign policy space, the EU is viewed as weak [2], and largely through the lense of the US-China rivalry (which is how the US views the EU as well now). [0] - https://www.scmp.com/news/china/diplomacy/article/3316875/ch... [1] - https://www.reuters.com/world/chin…

> The EU can't mend ties with China without giving up on Ukraine as China's FM Wang Yi has stated [0]

At the end of the day China cares more about Europe than Russia. Because that's where the real money is.

Re: Danish pension fund divesting US Treasuries

#132

Post by mcny » Tue, Jan 20, 2026, 4:10 PM UTC

epolanski wrote: post #113

alphazard wrote: post #94

Earlier quoted context omitted.

> 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 t…

There's no chance US will default on its debts, all it has to do is to print more money. Inflation may spirale, but it's going to be a US citizens problems (as well as US bond holders) in terms of inflation and budget cuts.

I don't think it is that easy though. If you are simply trying to pay off existing debt sure, but we constantly need new debt as well so there is a limit to how much money we can print.

Re: Danish pension fund divesting US Treasuries

#133

Post by toomuchtodo » Tue, Jan 20, 2026, 4:10 PM UTC

whimsicalism wrote: post #126

btbuildem wrote: post #73

Earlier quoted context omitted.

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…

I’m curious when people make comments like this, do they actually live in the US and believe this or has the media environment gotten so bad in Europe+ that people have no clue what’s real or not?

Maybe you'd trust Blackrock's CEO instead? I live in the US and I have rotated away from US equities and treasuries to derisk from volatility of poor governance (both this administration and long term fiscal policy).

BlackRock CEO delivers blunt warning on US national debt - https://www.thestreet.com/investing/blackrock-ceo-delivers-b... - January 18th, 2026

The U.S. Deficit Will 'Overwhelm This Country': BlackRock CEO Larry Fink - https://www.youtube.com/watch?v=D4d1GzgnhkI

Re: Danish pension fund divesting US Treasuries

#134

Post by lostlogin » Tue, Jan 20, 2026, 4:11 PM UTC

mywittyname wrote: post #118

lostlogin wrote: post #102

Earlier quoted context omitted.

> endless taxation by both parties. How do you run a country without taxation? Can you point at an example?

Tariffs, obvs. /s Serious answer: deficit spending and let inflation act as the taxation mechanism.

Deficit spending with zero taxation?

The approach is tried and true with a small deficit, but surely you need some decent source of revenue to keep the inflation under control.

Re: Danish pension fund divesting US Treasuries

#135

Post by azinman2 » Tue, Jan 20, 2026, 4:11 PM UTC

epolanski wrote: post #113

alphazard wrote: post #94

Earlier quoted context omitted.

> 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 t…

There's no chance US will default on its debts, all it has to do is to print more money. Inflation may spirale, but it's going to be a US citizens problems (as well as US bond holders) in terms of inflation and budget cuts.

You’re assuming the people in charge are sane, rationale, and value past decisions that have worked out. It’s quite clear with the now likely permanent damage to NATO this isn’t the case.

Re: Danish pension fund divesting US Treasuries

#136

Post by adventured » Tue, Jan 20, 2026, 4:11 PM UTC

epistasis wrote: post #81

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, an…

The US is more stable than the powers of Europe (which have constant political upheavals, snap elections that completely remake the political landscape, etc). You're confusing Trump's mouth with how the US political system actually functions.

Just because the US changes political direction, that doesn't equate to instability. Its aims are changing, like it or not, good or bad. The US deciding it wants Greenland is not a proof of instability, it's a change in the strategic goals held by the people controlling the superpower.

And the US is at a high level of strength, not weakness. Its large corporations hold sway over the globe in a manner the likes of which has never been seen before in modern history. Its military has force projection to nearly every point on the globe, with hundreds of global military bases. Its national wealth is at an all-time high. Its stock markets are at all-time highs. Its median income is at an all-time high. Its median disposable income is at an all-time high. Its housing wealth is at an all-time high.

Re: Danish pension fund divesting US Treasuries

#137

Post by Havoc » Tue, Jan 20, 2026, 4:12 PM UTC

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 about the right sizing for a pension fund invest. Most pension fund transactions I see are in roughly that range 50 to 200ish

Rounding error on a global scale.

Re: Danish pension fund divesting US Treasuries

#138

Post by hightrix » Tue, Jan 20, 2026, 4:12 PM UTC

whimsicalism wrote: post #126

btbuildem wrote: post #73

Earlier quoted context omitted.

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…

I’m curious when people make comments like this, do they actually live in the US and believe this or has the media environment gotten so bad in Europe+ that people have no clue what’s real or not?

Do you have any criticisms to the parent comment? As an American, they seem pretty spot on to the current climate.

I'd argue we've never been closer to civil war than we are today[0], primarily due to trumps regime invading cities around the country, kidnapping citizens utilizing a bounty program, and killing people in concentration camps.

Ediot: [0] - Since the last civil war. I thought that was obvious, but it seems like it isn't.

Re: Danish pension fund divesting US Treasuries

#139

Post by Cornbilly » Tue, Jan 20, 2026, 4:12 PM UTC

petcat wrote: post #116

fooster wrote: post #95

Earlier quoted context omitted.

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.

Doesn't China own most of the real estate in Canada. Did USA cause that

>Doesn't China own most of the real estate in Canada.

No.

Re: Danish pension fund divesting US Treasuries

#140

Post by epolanski » Tue, Jan 20, 2026, 4:12 PM UTC

mcny wrote: post #132

epolanski wrote: post #113

Earlier quoted context omitted.

There's no chance US will default on its debts, all it has to do is to print more money. Inflation may spirale, but it's going to be a US citizens problems (as well as US bond holders) in terms of inflation and budget cuts.

I don't think it is that easy though. If you are simply trying to pay off existing debt sure, but we constantly need new debt as well so there is a limit to how much money we can print.

You obviously cut the budget and raise taxes.