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[quote=Anonymous][quote=Anonymous]Please someone clarify this for me:

Did Trump back down on his threat to invade Greenland and take the Danish territory by force because the head of NATO told him that if the US invades a NATO country, all those NATO countries will dump their US treasury bonds onto the open market all at the same time?

How does that work?

Did Denmark dump its treasuries?

I'm completely ignorant about how this sort of thing functions globally.

Who buys these "dumped" treasuries? And if the bond markets were flooded with treasuries for sale, would their price go down? And wouldn't those countries that dumped treasuries lose money? Does that matter?

Please explain, someone. This seems like an effective tool to contain the excesses of Trump. [/quote]

Generally, if people won’t buy US Treasuries, the interest rate needs to keep rising until there is a taker.

Pre-Trump people bought US debt because it was very safe. They knew the Treasury was “good” for paying the debt when it came due. Consequently the US could borrow lots of money and not pay a lot of interest on it. It was very beneficial for our economy and led to us being the richest nation in the world world living at a standard most of the global population could only dream of.

Trump has single handedly destroyed the concept of the full faith and credit of the US. Bond holders are no longer certain that the US really will be able to pay back the bonds. So they are selling them because they don’t want to be exposed to what has become a risky investment. Who knows what BS Trump and Bessent will hawk.

The Greenland fiasco basically pushed a lot of EU countries to remind Trump who is financing his idiocy. But regardless, they will reduce their US bond holdings because it is no longer a prudent to depend on the US.

#winning[/quote]

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