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Danish pension fund divesting US Treasuries

reuters.com

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Re: Danish pension fund divesting US Treasuries

#221

Post by jacquesm »

raincole wrote: post #99
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…

> 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.

Think of it as a bowshot. There are many more such 10 to 100 billion funds and they can move at the drop of a hat if they have to.

Re: Danish pension fund divesting US Treasuries

#222

Post by toomuchtodo »

throw0101a wrote: post #212
whimsicalism wrote: post #146

Earlier quoted context omitted.

I don’t disagree that our fiscal situation is unsustainable. I’m curious specifically about the people envisioning (with barely disguised glee) the US erupting into a civil war within 5 years, as they seem somewhat to have lost touch with reality.

> I’m curious specifically about the people envisioning (with barely disguised glee) the US erupting into a civil war within 5 years, as they seem somewhat to have lost touch with reality. The MN governor has called up their National Guard to help local law enforcement. The Pentagon is readying troops as well, presumably to help federal officials (ICE). If both sides think they are following lawful orders, and neithe…

To note, I believe it's possible the ~1500 troops staging to Minnesota are not to assist with ICE operations, but to be air lifted via the 133rd Airlift Wing to Greenland. If interested in pursuing this, task some commercial satellite imaging.

https://en.wikipedia.org/wiki/133rd_Airlift_Wing

Re: Danish pension fund divesting US Treasuries

#223

Post by HarHarVeryFunny »

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…

Far more important, I'd say, are the European countries having already got together to discuss joint sanctions/tariffs against the USA (their nominal NATO partner) if Trump moves to seize Greenland.

Macron has also said that he wants no part of Trump's (billion dollar entrance fee) "peace board" that he's going to be pushing at Davos.

A divorce from the USA would certainly hurt Europe, but it will also hurt the USA and it's ability to defend itself if it loses access to European intelligence and ability to have forward located military bases and refueling locations.

The Republican's are really shooting themselves, and the US, in the foot here by not standing up to Trump and therefore indicating that all this craziness is Trump rather than an enduring US policy that they support. Even if they flip flop when Trump is out of office, the rest of the world is never going to trust the US again.

Re: Danish pension fund divesting US Treasuries

#224

Post by jacquesm »

DustinEchoes wrote: post #179
whimsicalism wrote: post #126

Earlier quoted context omitted.

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?

It’s wishcasting. Some people just want to see dead Americans.

On the contrary. The ones that want to see dead Americans are currently sitting in the Whitehouse. Mostly because it won't be them on the receiving end of it and they get to plunder the country. Smaller cake, but more for me seems to be their motto.

Re: Danish pension fund divesting US Treasuries

#225

Post by Retric »

adventured wrote: post #219
Retric wrote: post #188

Earlier quoted context omitted.

The US has never dealt with hyperinflation.

The US isn't going to get hyperinflation. It's going to get a Japan style heat death. More and more wealth concentrated into low yielding debt, rather than invested into growth, while purchasing power is chewed up by persistent currency debasement. Japan never did suffer real deflation (that was a lie), it suffered massive inflation: they debased the Yen to garbage levels, drastically chopping down the standard of li…

“There's no chance US will default on its debts, all it has to do is to print more money.”

Trying to inflate away 40+ Trillion in debt would directly result in hyperinflation.

> they debased the Yen to garbage levels

Look at Yen to USD exchange rates and it’s clear they didn’t. “From 1991 to 2003, the Japanese economy, as measured by GDP, grew only 1.14% annually, while the average real growth rate between 2000 and 2010 was about 1%,” https://en.wikipedia.org/wiki/Lost_Decades Meanwhile the USD exchange rate in Jan 1988 was 127 vs 140 in 1998 vs 107 in 2008. It went up and down all through the 20 years of poor economic growth, but something else was clearly the issue.

Re: Danish pension fund divesting US Treasuries

#226

Post by whimsicalism »

throw0101a wrote: post #212
whimsicalism wrote: post #146

Earlier quoted context omitted.

I don’t disagree that our fiscal situation is unsustainable. I’m curious specifically about the people envisioning (with barely disguised glee) the US erupting into a civil war within 5 years, as they seem somewhat to have lost touch with reality.

> I’m curious specifically about the people envisioning (with barely disguised glee) the US erupting into a civil war within 5 years, as they seem somewhat to have lost touch with reality. The MN governor has called up their National Guard to help local law enforcement. The Pentagon is readying troops as well, presumably to help federal officials (ICE). If both sides think they are following lawful orders, and neithe…

Federal supremacy will win, the MN governor will not tell local LE directly to prevent federal agents enforcing federal law. I understand that law is not popular among many right now, but that is how it will play out.

There will not be civil war unless the military truly comes to assist in a Trump attempt to take power in 2028, which I think is very unlikely.

Re: Danish pension fund divesting US Treasuries

#227

Post by zozbot234 »

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…

> The most effective way to reduce the global threat the US is appearing to pose more as of late, is to hit the dollar.

Which is exactly what this administration is doing. What do you expect to happen when the POTUS and DOJ overtly pressure the sitting Chairman of the Federal Reserve to cut Fed Funds rates and print more money, thus creating more inflation in direct violation of a crystal-clear Congressional mandate? Do you think that's good for the U.S. as a destination for safe assets, or a "reserve currency"?

Re: Danish pension fund divesting US Treasuries

#229

Post by corimaith »

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…

You do realise it is arthimetically impossible to balance all the desired export surpluses of the EU, China, Japan, etc together without the US as the demand sink right? Whatever adjustment comes is certainly going to require somebody to act in a manner contrary to their current strategies, and it's going to be a painful adjustment.

And which is harder? Bringing back production to satiate domestic demand or increasing domestic demand? Historically, demand deficiency is much harder to restore.

Re: Danish pension fund divesting US Treasuries

#230

Post by HarHarVeryFunny »

busterarm wrote: post #70
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…

Canada needs cheaper cars than US manufacturers want to provide. US brand cars have all been going higher dollar and further up market in recent years. Quebec is famous for the "Quebec Special". Cars with manual everything. No AC. Manual windows. Completely stripped down to be as affordable/disposable as possible. Also the roads are absolute shit, they never wash off the salt, there used to be no inspections and titl…

They are certainly going to get them! Apparently zero tariffs on Chinese made EVs coming into Canada, so they will have EV's of at least same quality as Tesla, but half price (e.g. see Marques Brownlee's recent Xiaomi review).
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