Earlier quoted context omitted.
My guess would be EUR takes its place, gold will also be used more. I guess what happens is USD gets much weaker and US buying power goes down. Maybe destroying the USD will eventually cause the boost to domestic manufacturing that Trump wanted, since foreign goods will be out of reach. Cut down the forest to kill a squirrel. I'm no expert though
Historically, gold’s day in the sun is always juuust around the corner, right after the disastrous collapse that never quite arrives. Now that we really do have a destructive realignment underway, maybe gold will actually be useful again. I doubt it, but I’m no currency expert.
Danish pension fund divesting US Treasuries
351–360 of 857 posts
Re: Danish pension fund divesting US Treasuries
#352This sundering of US-European relationship feels like watching a trainwreck in slowmotion. It's all so stupid and avoidable. Is there really nothing that can be done?
The Supreme Court can rule Trump’s ability to unilaterally impose tariffs illegal (and they’ll be ruling one way or the other very very soon).
Re: Danish pension fund divesting US Treasuries
#353Earlier quoted context omitted.
You're assuming NATO is somehow critical for the US. It is not. NATO is critical for the European powers (those not named Russia). The US doesn't require it. The US doesn't need to defend Europe any longer. And it's clear the Europeans don't want the US there, so it works out great. Europe can boost its defense spending by ~$300 billion to make up the difference, or not, whatever they choose to do is up to them. The…
The US does not benefit from a stronger, more unified Europe. Thanks to NATO, "the west" has effectively become an empire in all but name, with the US having enough influence to be the de facto leaders of this empire. If US pulls back from NATO, and Europe builds up military power to compensate, then the US loses this de facto leadership seat of an empire. Today, the US appears in parallel to be doing two things: 1.…
Why would anyone listen?
Re: Danish pension fund divesting US Treasuries
#354Earlier quoted context omitted.
This is not a one sided thing. The US has been allowed to do a lot of things under the NATO umbrella that it benefited from (such as: selling a vast quantity of arms). Soft power is a thing and the North Atlantic Treaty Organization came into being to deal with exactly the kind of situation that we are viewing today. To see the US bow out, and in fact threatening allies is duplicitous at best.
The Euros also underfunded their defense obligations and received huge amounts of US investment in facilities, enabling them to upfund social programs, socialized healthcare and most egregiously 8 - 12 week vacations which are completely unheard of in the US.
Re: Danish pension fund divesting US Treasuries
#355Earlier 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
No. Why would you claim something that is easily refuted? 75-80% of all residences in Canada are owner occupied.
Re: Danish pension fund divesting US Treasuries
#356Earlier quoted context omitted.
That would never happen until the US Navy ceases to be effective globally.
What is the theory of how the US Navy keeps the dollar the reserve currency, when the US has made itself a pariah state? What mechanism? Would the US Navy be doing piracy and demand protection money in dollars? Piracy payoffs would be a far far lower demand for dollars than there currently is and, and also greatly reduce all other trade with the US, further reducing demand for US dollars. Really curious what your rea…
Re: Danish pension fund divesting US Treasuries
#357Earlier 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.
If the US invades Greenland, and is at war with Denmark, will it still pay its debts to a Dane?
The procedure in times of war, at least by the US treasury is to put the payments in a blocked account that is then given to the citizen of the opposing country post war.
This is also why russian assets in US/EU banks, e.g., are only frozen: doing any other thing with them would instantly trigger the entire world to liquidate their holdings. Would Saudis or Indians or Danes hold assets that can be confiscated for geopolitical reasons?
Re: Danish pension fund divesting US Treasuries
#358It'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…
Re: Danish pension fund divesting US Treasuries
#359Earlier quoted context omitted.
Correct, I assumed others would understand I meant since the last civil war. Edited the comment to clear up my intent. Thank you.
It's still absurd. Today isn't close to what we saw during the depression or the 70s or desegregation or the Rodney King riot. Besides that, there's no plausible fault line in the military or any sort of ethnic or religious or regional fault line where two sides could form to fight each other.
Re: Danish pension fund divesting US Treasuries
#360Earlier 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 US and France are both nuclear armed, including nuclear armed submarines, which are the ultimate defence deterrent. It's hard to see any country wanting to get into conventional war with China, regardless of size of army and airforce - even the US is not going to do it unless actually attacked. At the end of the day if China seizes Taiwan (something Trump has made more likely by his seizing of Venezuala, now talk…
Except for France's ASMP-A nuclear warning shot (which is not a tactical option by the way), all other independent European nuclear options (French or British SSBNs) are not only strategic, but they imply wiping entire countries off the map. All options also depend on whether the French President or the British Prime Minister decides that this course of action is warranted.
If Trump indeed invades Greenland, shoving a French-made nuclear fireball in front of an American carrier battle group off the coast of Greenland would probably not be our first option. Besides the massive political cost of breaking the nuclear taboo, if kinetic actions are deemed necessary, deterrent also comes in conventional varieties.
Also, while the British nuclear deterrent might be operationally independent, it relies on American-supplied Trident missiles.