We need to note that it is not "foreign governments" that own about 30% of US debt; it's "other countries", including all the banks, pension funds, private investors and so on in them. That's what the link says, not "foreign governments". And you can also tell by, for instance, noting that the Cayman Islands are in 6th place, with about half the UK total. You know the Cayman Islands government is not some super-rich entity; but it is the address of many offshore banks, muddying the true ownership of stuff.
So it's not like that figure is representative of what governments, or government-adjacent entities like public pension funds, could do.
I don't want the economic pain of all foreign investment turning into a selloff, but it might be what it takes for the people who own Trump to finally realize that he is a terrible investment.
One thing the Fed did historically was to stop the pattern of bank runs during severere cessions where depositors all demand their money. Umm... what happens if there is a run on the Fed and no backstop?
So Greenland turns out to be the world’s most effective “no” button. Trump growls, markets flinch, Denmark quietly sells some bonds, and suddenly it’s all “frameworks” and “everybody relax.” Nothing terrifies a strongman faster than investors reaching for the exit. Turns out the bond market speaks fluent reality, and it doesn’t care about bluster, tariffs, or pet psychics.
Discussion below by people talking about facing retirement and being concerned about their retirement funds. I pulled the plug this summer, and went into this with two pensions and Social Security, spent about 60% of the value of my home paid off, with a manageable mortgage. Looked good on paper.
Currency devaluation, Euro becomes world reserve currency, no one wants US debt instruments like T-bills anymore, IMF and World Bank require austerity just like US has done to Third World, we get a demagogue riding in on a white horse.
So once again, a more cynical person, not the ray of sunlight that is I, might think that the fact that
1. The first long screed about “Give me Greenland or back to Liberation day tariffs” was clearly not written by Trump
2. It was written on a Friday night after market close so zero casual investors (like us) could short any stock.
3. It was a 3 day weekend with the markets and banks closed on Monday to allow for an extra day of borrowing without having to pay back because bank closed.
4. Market tanks all day Tuesday. But at the same time Bessent is dropping hints and almost admitting Trump will back down.
5. Trump backs off tariffs next afternoon allow people to close out their short positions if they were so inclined.
That all this would be an indicator that his cronies egged on his Greenland obsession so they could manipulate the market and make billions on the dip.
But I’ll leave that to the pessimistic cynics to decide. I will remain blissfully optimistic in the belief that rich businessmen in stock and real estate speculation are overwhelmingly good people.
Given F34's well-known incontinence, how did he manage to stand at the podium in Davos and babble on for 2 hours? Was there a bucket under the podium, or what?
Isn't it a riot when government "officials" say, "do not listen to the media, who are hysterical," when what they mean is, "do not listen to us on the media being hysterical"?
Did you know billionaire Ron Lauder heir to the Estée Lauder, Clinique, MAX, Bobbi Brown, etc. cosmetic behemoth, pressured Trump to take over Greenland? What doofus would listen to a guy whose focus is make up? Oh, THAT doofus.
We need to note that it is not "foreign governments" that own about 30% of US debt; it's "other countries", including all the banks, pension funds, private investors and so on in them. That's what the link says, not "foreign governments". And you can also tell by, for instance, noting that the Cayman Islands are in 6th place, with about half the UK total. You know the Cayman Islands government is not some super-rich entity; but it is the address of many offshore banks, muddying the true ownership of stuff.
So it's not like that figure is representative of what governments, or government-adjacent entities like public pension funds, could do.
AI is probably a colossal bust but it’s still a small part of our economy.
I don't want the economic pain of all foreign investment turning into a selloff, but it might be what it takes for the people who own Trump to finally realize that he is a terrible investment.
You know, I'm getting really tired of rich old white men telling us all to relax, lie back, and try to enjoy it.
One thing the Fed did historically was to stop the pattern of bank runs during severere cessions where depositors all demand their money. Umm... what happens if there is a run on the Fed and no backstop?
Prices go down until a buyer is found. Hence the old phrase "Pennies on the dollar."
Butbutbut they're not makin' pennies any more! Oh, I got it! Crypto Pennies! What can go wrong?
So Greenland turns out to be the world’s most effective “no” button. Trump growls, markets flinch, Denmark quietly sells some bonds, and suddenly it’s all “frameworks” and “everybody relax.” Nothing terrifies a strongman faster than investors reaching for the exit. Turns out the bond market speaks fluent reality, and it doesn’t care about bluster, tariffs, or pet psychics.
Discussion below by people talking about facing retirement and being concerned about their retirement funds. I pulled the plug this summer, and went into this with two pensions and Social Security, spent about 60% of the value of my home paid off, with a manageable mortgage. Looked good on paper.
This should be interesting.
Gee...plummeting dollar...what could that cause? Hmmmmm...INFLATION?
Currency devaluation, Euro becomes world reserve currency, no one wants US debt instruments like T-bills anymore, IMF and World Bank require austerity just like US has done to Third World, we get a demagogue riding in on a white horse.
I’ve been afraid of this since Ross Perot.
If it hasn’t happened yet we probably won’t see it in our lifetime. But maybe. Nothing you can count on is America knows how to make money.
Why are any of us, or any of 'them', listening to that bloviating, ass-sucking, gasbag fake gentleman farmer?
https://www.youtube.com/watch?v=WYLuKOvXdQs
Green Acres Theme Song Intro
“As I said, sit back, relax.”
“Just lie back and think of Trump. No, bad idea! Think of America! Er, think of making lots of dough.”
So once again, a more cynical person, not the ray of sunlight that is I, might think that the fact that
1. The first long screed about “Give me Greenland or back to Liberation day tariffs” was clearly not written by Trump
2. It was written on a Friday night after market close so zero casual investors (like us) could short any stock.
3. It was a 3 day weekend with the markets and banks closed on Monday to allow for an extra day of borrowing without having to pay back because bank closed.
4. Market tanks all day Tuesday. But at the same time Bessent is dropping hints and almost admitting Trump will back down.
5. Trump backs off tariffs next afternoon allow people to close out their short positions if they were so inclined.
That all this would be an indicator that his cronies egged on his Greenland obsession so they could manipulate the market and make billions on the dip.
But I’ll leave that to the pessimistic cynics to decide. I will remain blissfully optimistic in the belief that rich businessmen in stock and real estate speculation are overwhelmingly good people.
I'm convinced at least half of this "presidency" has been a big stock market game. The other half being ego-driven fascism.
Classic pump and dump.
"I will remain blissfully optimistic in the belief that rich businessmen in stock and real estate speculation are overwhelmingly good people."
I LOL'd.
Given F34's well-known incontinence, how did he manage to stand at the podium in Davos and babble on for 2 hours? Was there a bucket under the podium, or what?
Depends
Super-jumbo size.
Isn't it a riot when government "officials" say, "do not listen to the media, who are hysterical," when what they mean is, "do not listen to us on the media being hysterical"?
Did you know billionaire Ron Lauder heir to the Estée Lauder, Clinique, MAX, Bobbi Brown, etc. cosmetic behemoth, pressured Trump to take over Greenland? What doofus would listen to a guy whose focus is make up? Oh, THAT doofus.
👍👍👍
I don't know about anyone else, but I'm about sick and tired of being condescended to.
My cat knows more about macroeconomics than either Bessent or Trump.
I would like to arrange an appointment with your cat to discuss my finances, please.
My other cat is a personal injury attorney.
"Buy tuna."
https://substack.com/profile/1687878-1d57a1d5931d/note/c-203494311?utm_source=notes-share-action&r=106di