This seems like the first step of what will eventually lead to hyper inflation.
I will also be selling my treasuries, I won’t tell the exact amount but it’s “slightly” less than 100 million.
This is an aside, but why is CNBC misspelling “treasuries”?
Huh, so I spent 10 seconds googling it, and turns out they actually answered this very question 16 ish years ago…
https://www.cnbc.com/amp/2009/08/18/treasuries-and-treasurys-why-the-y.html
AI slop?
Possibly. Or maybe they fired the copy editor.
Both can be true.
I was expecting the AI bubble to burst and then take down the US economy, but perhaps it’s going to be the other way around…
Might be smart to dump any US bonds before the US economy ultimately crashes when the bubble bursts…
They are right to do so. But also, this is a market measured in trillions
The fact that someone stood up and said “we do not trust the honor of the US to fulfill a debt” is important. We’ll see how much of an impact that actually has, but my kneejerk reaction is that it was meaningful.
my kneejerk reaction
:-/
The global market will pounce on $100M in underpriced Treasuries.
A better question is what the Danes plan to replace the reserves with. Now would be a cool time to roll out EuroBonds.
That said…
Schelde chiefly cited the ballooning debt bill facing the U.S. after decades of government overspending.
This is, has, and will continue to be a dumb reason to sell US Treasuries. The Bond Vigilantes always lose their shirts in the end.
Do you assume that a collapse of the US economy is impossible?
It’s highly unlikely under current conditions
What conditions would be needed to make it likely?
Quite a few. But, just for starters, you’d need the Federal Reserve to turn off the unlimited money spigot.
I don’t think that needs to happen, if you get into a hyperinflation situation, right? And Trump and co have been doing a lot to destroy the underlying productivity of the us economy over the last year.
Danish pension operator AkademikerPension said it is exiting U.S. Treasurys because of finance concerns as Denmark spars with President Donald Trump over his threats to take over Greenland.
Oooof. They no longer trust the US government to be a safe or friendly place to keep their money.
Let the ripple effect begin!
That’s what this is, a shot across the bow. 100mm is nothing
Seriously, that’s only 10cm.
0.1m
Now you are dong something they will notice. The number needs to be much higher.
An avalanche starts as a tiny bit of snow
🥳
Wouldn’t surprise me if the Norwegian pension fund is looking into the same. They do, however, work slow. We’ll see if Jonas Gahr Støre continues to receive the stupidest spam imaginable.
