Earlier quoted context omitted.
the US will somehow fall in a vacuum and everyone else will live happily ever after is laughable. If enough countries collectively decide to not export to the US, it's game over. See Cuba as an example. Not everything is a movie with a final battle. Alternatives are found and adopted all the time without violent strife.
A reminder the insatiable appetite of the American consumer is a big part of what props up a lot of other economies.
Danish pension fund divesting US Treasuries
821–830 of 857 posts
Re: Danish pension fund divesting US Treasuries
#822Earlier quoted context omitted.
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…
Well then us Europeans are fucked regardless I guess. > Beijing did not want to see a Russian loss in Ukraine because it feared the United States would then shift its whole focus to Beijing How does this statement make sense though? I don't see the A -> B. The US pretty clearly does not want to see a Russian loss either, and seems more fine with Ukraine losing. It should depends on how much the US wants Europe? If th…
Re: Danish pension fund divesting US Treasuries
#823Earlier quoted context omitted.
The normal trading volume isn't really the key. Rather, it's how elastic the price is. Suppose these guys sell 10% of the daily trading volume. How do the traders in the market react? One possibility: Buy at current prices. Another: Speculate that there'll be more sales and the price will drop by a couple of per cent in the coming days/weeks, and delay their buying in order to buy the dip. I'm sure the Americans have…
> How do the traders in the market react? Buy. Because the Fed is about to monetize the debt.
Re: Danish pension fund divesting US Treasuries
#824Earlier quoted context omitted.
How has the US been suppressing global metal prices?
I didn't say the US has been suppressing them. The international banking cartel along with the US Federal Reserve have, in order to prop up the value of federal reserve notes.
Re: Danish pension fund divesting US Treasuries
#825It'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…
With Trump pressuring the independence of the central bank, this doesn't seem symbolism at all. It might very well be that the USA will face a period of high inflation soon if we continue down this path of high government spending and no independent central bank to put a break on it. And I can't even understand why this obsession of lowering interest rates in the USA. The economy is doing great, there's no shortage o…
You have to understand how much the middle and lower classes can become addicted to cheap lines of credit made accessible to them.
Re: Danish pension fund divesting US Treasuries
#826"The fund’s managers stressed that the decision was not a reaction to America’s territorial threats to Greenland, a Danish territory, but a judgment on Washington’s rampant overspending.
The fund is certainly not ditching American stocks, which make up 60% of its holdings of listed equity. Its private-equity assets tilt similarly heavily to America. Of its high-yield bonds, American issuers account for an even larger share, almost 80%."
and
"Despite the Danish sale, foreigners own more American government bonds than ever."
and
"Even after the s&p 500 slid by 2% on January 20th, following another tariff threat from Donald Trump over Greenland (since withdrawn), American assets continue to attract investors."
Re: Danish pension fund divesting US Treasuries
#827Earlier 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…
The world wasn't globalized then. It's quite literally, an entire new world today. The collapse of the US will touch every corner of the world.
This may be recency bias. The current age just has more immediate, global communications. "The sun never sets on the British empire" had a literal meaning based on how globalized it was then. They even laid intercontinental undersea cables.
Re: Danish pension fund divesting US Treasuries
#828Earlier 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.
I find it interesting how people say "The US" to refer to groups under the US government that are often completely at odds with the interests of the actual US public. There are virtually no Americans who want our government to be acting in the interests of arms manufacturers except the arms manufacturers themselves and the politicians they pay.
Re: Danish pension fund divesting US Treasuries
#829Earlier 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…
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…
Re: Danish pension fund divesting US Treasuries
#830Earlier quoted context omitted.
Adjust GDP per hours worked, you will find Europe has eclipsed the US in terms of productivity. The US has the benefit of the government borrowing insane amounts of money to juice it's economy, by being the world hegemony. That advantage has evaporated and you see the current capital going to unproductive industries.
> Adjust GDP per hours worked And why would we do that? I guess if you torture the data long enough it will confess to anything.
European productivity is beating American productivity. American GDP is heavily warped by money borrowing and previously foreign investment.