Earlier quoted context omitted.
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I envy your willingness to debate here. It's a pretty hostile place for a position you're defending.
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Danish pension fund divesting US Treasuries
591–600 of 857 posts
Re: Danish pension fund divesting US Treasuries
#592Re: Danish pension fund divesting US Treasuries
#593Earlier quoted context omitted.
I wish europe was out of NATO. It does nothing to defend europe, bring us in wars we didn't ask for, and manufacture crisis European still suffer from (Syria refugee). It force its "allies" to buy defective weapons that are basically spyware, and still spy on them just in case. It force other allies to spill their blood in the middle East. The only "good" thing it did was breaking Sarajevo's siege in the mid 90s, but…
I am an American, so my view of the situation over there is not...well informed. But I have wondered whether the EU couldn't set itself up as the New NATO. All European (unless Canada decides to join you), and omitting some of the old NATO provisions that are causing problems, like the ability of one member country to veto everyone else (I'm looking at you, Hungary). Would it work? Or is the EU infrastructure to weak…
The issue is that this kind of authoritarian military organization needs a clear leader, and without that, cannot function properly. That leader used to be the US. Even under Trump 1 (and even though i disagree with the decision), forcing NATO member to think about the 3% rule was ultimately something someone have to do (my preference would have been to lower the threshold), and that someone was the US. I also think it would need a pre-2008 France, who refused to be under the integrated command, to build a sort of trust and respect between members.
Ultimately though, the Irak invasion shattered the trust and status quo, and i agree 100% with people saying NATO must die. Alliance that are more than a reactive defensive pact and force member into attacking unrelated countries should disappear. Just get nukes, and pray you won't have to use them.
Re: Danish pension fund divesting US Treasuries
#594Earlier quoted context omitted.
> Its baffling that you think the collapse of the USD would have no negative ramifications on the rest of the world. Empires rise and fall, pax Americana was not the world's first hegemony. The end of the British Empire is within living memory - while they sowed seeds of instability in a handful of former colonies that still flare up today, the rest of the world is fine. Britain, on the other hand, has had to enter a…
If you think the US is going to decline slowly, fade into history and not try to go out with a bang, I guess that is certainly one world view!
Is that “bang” Mutually Assured Destruction?
Re: Danish pension fund divesting US Treasuries
#595Earlier quoted context omitted.
What we witness seems to be a lack of control due to a vicious feedback loop that eliminates dissenters and reasonable, moderate people from positions of power. The longer it stays active, the worse it becomes. In other authoritarian systems this is not so noticeable because their leaders act more rationally to begin with, although they tend to lose their grip on reality in the long run, too.
That's definitely going on. There's also something that I've heard called "reactionary centrism:" a feedback loop of people who think that truth lies in the middle between the two extremes, and also that assumes that no mainstream position in a political faction can itself be the "extreme." And that if they find that one political faction is doing something that seems extreme to them, that in the interests of fairnes…
That's a very astute observation, thank you.
Re: Danish pension fund divesting US Treasuries
#596Earlier 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.
https://www.reuters.com/world/us/trump-plays-down-consequenc... Now, Trump is an opportunist and in the psat his talk of default has been a way to throw rhetorical stones at his political opponents and keep himself in the news while he was out of office. Back in office, he has sought to project some kind of commitment to fiscal responsibility and financial stability. But let's be real here, he's making threats agains…
I'm seeing it all and I still can't believe it. The most unbelievable to me is that the Senate and Congress seem to have no red lines at all.
Re: Danish pension fund divesting US Treasuries
#597Earlier quoted context omitted.
That's your opinion, which you are of course welcome to. People buy treasuries because they expect a return. If a party is threatening to get into a shooting war with you your expectations of a return drop significantly. This then causes that party to protect their investment, the last one to defect will hold the bag. The US is signalling on all wavelengths that it is no longer the safest place to stash money, long t…
ok, let's run with your theory. Where does one safely stash a small-ish sum like ~$100B now?
The US was a safe place with consistent returns for decades.
Now the US has increased risk. It isn't a calculation of "where do we put $100B", it's a calculation of "what is the balance of managing risk and returns".
Canada and Australia are low risk, but don't have the returns of the US. Brasil, Argentina, have higher risk.
The allocations get spread across different risk profiles, and the money gets spread across different investments. Of course, this is on the assumption the majority of this money stays in Treasuries. These large funds have options beyond that. It's a mathematical calculation where every asset in the world is an option. $100B can be spread around pretty easily I'd think.
Re: Danish pension fund divesting US Treasuries
#598Earlier 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.
Defaulting on the debt would be a great “emergency” that requires elections to be cancelled…
Thankfully elections are more or less impossible to cancel since they are scheduled by the states
Re: Danish pension fund divesting US Treasuries
#599Earlier quoted context omitted.
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 seem…
This comment: A new civil war that drives the US to fragment into several independent regions over the course of the next ~five years would kind of be the best scenario from a global perspective. is nutty.
What is "nutty" about it?
For countries outside the US, it would actually not be a bad scenario.
Better than having your supreme leader threatening invasion, annexation, promoting coups and so on.
Re: Danish pension fund divesting US Treasuries
#600What happens when USD stops becoming the the reserve currency for the world? And who takes its place?
I wonder if there needs to be a single reserve currency any more. In the past it made things easier for everybody to use the same currency, but is that still the case with modern electronic transactions? Maybe it splinters into Euro, BRICS, and USD?
It's easier if contracts run on the same currency I think, your suppliers price in USD, you sell your products in USD, it's easier for a whole supply chain that way. I can imagine that fracturing or switching to Euro for things like manufacturing and semiconductors.