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Danish pension fund divesting US Treasuries

reuters.com

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Re: Danish pension fund divesting US Treasuries

#71

Post by mywittyname »

WarmWash wrote: post #17
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.

About $1T is traded daily so it's really more a symbolic move.

Two people buying and selling the same dollar a trillion time would hit that trade volume in a day. There's also a huge difference between short term and long term bonds.

So we need a better metric to evaluate this against. If we look at recent auctions, they typically move around 35-40 billion in 10 year notes and about 25-30 billion in 30 year notes. With the rest being short term.

In 2025, the Treasury issued $30 trillion total over 400 auctions.

So yes, $100MM is not a lot, but it's still three or so auctions worth of bonds. There's also the downstream impacts of this, as the Netherlands is likely no longer buying t-bonds in any form. And this is just one country.

Re: Danish pension fund divesting US Treasuries

#72

Post by shermantanktop »

drstewart wrote: post #19
basilgohar wrote: post #8

Earlier quoted context omitted.

The US starts more wars until its eventual complete collapse. See The Rise and Fall of the Roman Empire. We're operating out of a playbook for imperial destruction word for word.

"History buffs" that literally only know the Roman Empire and Hitler should probably try expand their purview.

That’s the manly history that appeals to men! Men of masculinity.

Re: Danish pension fund divesting US Treasuries

#73

Post by btbuildem »

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 fragment into several independent regions over the course of the next ~five years would kind of be the best scenario from a global perspective.

Re: Danish pension fund divesting US Treasuries

#74

Post by ch4s3 »

CamperBob2 wrote: post #62
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.

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 a lot like the rise and presidency of Andrew Jackson.

Re: Danish pension fund divesting US Treasuries

#75

Post by lostlogin »

4gotunameagain wrote: post #55
JumpinJack_Cash wrote: post #37

This divestment is so little and with so little aim. The whole situation is been caused by a single guy and 400 enablers, whereas the US is a 400 million people country. The correct form of reaction is a punch in the face during a bilateral meeting, Zelensky came close to doing it but unfortunately he resisted his impulse , that's where the epicenter of all newly generated global problems in the last 10 years lies, i…

The americans that support Trump are many more than 400. Also, them having elected Trump TWICE, why would they ever be trusted ? Also when the alternatives are people like.. Hilary Clinton ?

> when the alternatives are people like.. Hilary Clinton ?

Would she have been worse than this?

And the US had a better choice the second time.

Re: Danish pension fund divesting US Treasuries

#76

Post by ninth_ant »

CamperBob2 wrote: post #62
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.

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.

Re: Danish pension fund divesting US Treasuries

#77

Post by Mordisquitos »

petcat wrote: post #26
sonotathrowaway wrote: post #10

Earlier quoted context omitted.

You mean like how the Houthi’s unilaterally decided to shut down Red Sea shipping and the US Navy is still powerless to restore it?

That's regional politics. Nothing to do with the superiority of one navy over another

The dollar being the reserve currency is international finance. Nothing to do with the superiority of one navy over another.

Re: Danish pension fund divesting US Treasuries

#79

Post by mythical_39 »

hypeatei wrote: post #16
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 not a lot. Multiple countries could offload hundreds of billions and the U.S. Treasury would buy them up immediately (and probably ask the Federal Reserve for some help the next day) I can't find the program name at the moment, but the Treasury plans for situations like this regularly.

So if the Treasury is the only entity buying treasuries, what is the USD worth at your local grocery store?

how about at the companies that supply that grocery store?

and so on up the chain.

Re: Danish pension fund divesting US Treasuries

#80

Post by koe123 »

tomaskafka wrote: post #69
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…

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.

Genuinely: why? I feel like they were our geopolitical adversary by proxy cause of USA, but is that still true?
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