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That is like, barely any.
Daily trading volume of US treasuries is ~900 billion (https://www.brookings.edu/articles/whats-going-on-in-the-us-treasury-market-and-why-does-it-matter/).
Thats 0.00002% of treasuries traded in a single day.
Its not much numerically, but this is the first time a foreign holder of bonds has publicly announced they no longer have faith in the credit of the United States.
That is a big headline in the financial world. The entire international finance market is currently reassessing the stability of the US in a negative light. The only way out from here is down.
snowball effect, rollin’ down the mountain…
I'm amazed at how simple a concept this is and yet the comments prove otherwise lol
Dun-nuh-nuh-nuh-nuh-nuh-nuh-nuh- Dun-nuh-nuh-nuh-nun.
Every flood started with a little rain. America is a global pariah. Even America hates America. Just watch...
There will be a ripple effect now that at least one has taken the action. Let's hope it snowballs.
Now if Japan decided to offload on the other hand...
When you hear reported [Japan] owns [$x.xx] in US Treasuries, that figure isn't a monolith. The Japanese government owns some, and Japanese corporations own some, and the Japanese people individually own some, and more. It would have to be a collective effort, and there would realistically need to be a financially sound alternative place for them to safely park their money
financially sound alternative
That's an interesting concept in this context. What's financially sound in a possible WWIII? As far as alternatives, I think it relative. Relative to a sinking ship that will suffer severe divestment from around the world, almost anything, really.
It may be nice to imagine, but as long as the US continues to pay interest on Treasury bonds, US Treasuries will not be viewed as a "sinking ship." Divestment in this case would be purely a political decision
You mean the interest trump is persecuting the fed to lower? That interest?
Glub glub glub. Sauve qui peut!
My thought exactly. But in adding to your contextual contribution:
This is a really small and rather obscure pension fund for academics, which has a elitarian focus on being sustainable. Don't get me wrong, even if all Danish pension funds dumped all their US federal bonds in a day it wouldn't register in the price.
We need to bring the Norwegian oil trust in on this.
As an American I'm all for this. We need to feel harsh pain if we're ever to correct our trajectory.
I think we will just end up in a militarized police state. Under constant surveillance
This seems to be a common ideology. It seems to have the idea that American Exceptionalism needs a humbling dose of economic collapse, and then all will be good. The thing is, I don’t completely buy the “and then all will be good” part. There are far too many rich twats standing at the ready to purchase up any remaining stable assets, while the average joe struggles to afford even basic needs. Is that really the pain that America needs for it to learn its lesson? Especially when the boundaries between private money and politics are so thin and blurry, what benefit can you see from further enriching the oligarchs of the west?
I would expect an economic collapse to be a fatal blow, by this point, to the way of life that Americans and American immigrants had long sought after: the chance to get ahead in life. Its a wealth transfer. Far less humbling than it is completely destructive, and you’ve got to ask what the world looks like from that point forward. How do you manage a US that looks a little more like new Russia than the old US?
If you all haven't already, the next few days is a great time to rebalance your retirement accounts. Stop investing in US federal bonds and focus on international mutual funds and (if available) state and local mutual funds.
I rebalanced last year and my IRA is doing fantastic. (Not today but overall)
retirement accounts
lol
Thats how I could tell they're not American
lol. Here we go. Here we fucking go!
$100 million is all it takes?!
I hope not, but sometimes it only takes one match to start an inferno.
Most countries probably had no playbook for dealing with a rogue US administration. They're still looking for all the ways they have leverage over us and while no single country could probably bring us to our knees (well, except ourselves) they could definitely band together and send us back to the Great Depression era.
Actually, I think if Germany demanded the immidiate release of the remaining billions of gold the USA holds for them, it might just be one country.
Very true
There's a reason Buffet sold so much of Berkshire's stocks over the last year. I wouldn't be holding anything of value in the US. I moved my IRA account totally over to overseas investments when this jackass came around the first time. I never moved it back.
but muh economyz!