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0 pointsraincole2mo ago0 comments

> Danish pension fund AkademikerPension said on Tuesday it would sell off its holding of U.S. Treasuries, worth some $100 million,

> AkademikerPension has in total 164 billion Danish crowns ($25.74 billion)

So they are moving about 0.4% of their investment.

Not pure symbolism, but $100 million is really nothing when we're talking about US treasuries. In the past decade, China has reduced their holding by about $600B.

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jacquesm2mo ago

Think of it as a bowshot. There are many more such 10 to 100 billion funds and they can move at the drop of a hat if they have to.

dmitrygr2mo ago

Can. Won't. There is no safer place to stash money in the world. Nobody buys treasuries for the fun of it. They do it since that is the safest place to stash money long term.

jacquesm2mo ago

That's your opinion, which you are of course welcome to.

People buy treasuries because they expect a return. If a party is threatening to get into a shooting war with you your expectations of a return drop significantly. This then causes that party to protect their investment, the last one to defect will hold the bag. The US is signalling on all wavelengths that it is no longer the safest place to stash money, long term or otherwise.

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chimprich2mo ago

> They do it since that is the safest place to stash money long term.

Only historically. The calculus is rapidly changing. If the US can't even respect sovereign territory of friendly countries, it doesn't inspire trust that they would repay debt.

sealeck2mo ago

The assumption that treasuries is safe depends upon the guarantor (the US government) being reliable. Currently this is ahistorically far from being the case and therefore people are investigating other places to park capital.

fakedang2mo ago

If the US starts a war, they immediately collapse down the safety rankings.

Also there are other tax havens.

ta202405282mo ago

Which is why the ECB should start a programme to issue about €5 trillion in new bonds as an alternative to USD treasuries.

IMHO.

j / k navigate · click thread line to collapse

0 pointsraincole2mo ago0 comments

> Danish pension fund AkademikerPension said on Tuesday it would sell off its holding of U.S. Treasuries, worth some $100 million,

> AkademikerPension has in total 164 billion Danish crowns ($25.74 billion)

So they are moving about 0.4% of their investment.

Not pure symbolism, but $100 million is really nothing when we're talking about US treasuries. In the past decade, China has reduced their holding by about $600B.

0 comments

jacquesm2mo ago

Think of it as a bowshot. There are many more such 10 to 100 billion funds and they can move at the drop of a hat if they have to.

dmitrygr2mo ago

Can. Won't. There is no safer place to stash money in the world. Nobody buys treasuries for the fun of it. They do it since that is the safest place to stash money long term.

jacquesm2mo ago

That's your opinion, which you are of course welcome to.

1 more reply

chimprich2mo ago

> They do it since that is the safest place to stash money long term.

Only historically. The calculus is rapidly changing. If the US can't even respect sovereign territory of friendly countries, it doesn't inspire trust that they would repay debt.

sealeck2mo ago

fakedang2mo ago

If the US starts a war, they immediately collapse down the safety rankings.

Also there are other tax havens.

ta202405282mo ago

Which is why the ECB should start a programme to issue about €5 trillion in new bonds as an alternative to USD treasuries.

IMHO.

j / k navigate · click thread line to collapse