If you rely on U.S. dollar income this concerns you.

Ditto if you rely upon other western fiat currency income, although they may be slower to fall in real value (as measured by inflation).

7 minutes ago, ericbj said:

If you rely on U.S. dollar income this concerns you.

Ditto if you rely upon other western fiat currency income, although they may be slower to fall in real value (as measured by inflation).

Why should anyone pay attention to this Lena Petrova person? Looks like just another panicmonger.

How Europe Could ‘Weaponize’ $10 Trillion of US Assets Over Greenland

Radical extremist ideas ,ponder the consequences of Biting ones nose off despite....

"But that’s easier said than done. The bulk of these assets are held by private funds outside the control of governments, and in any case such a move would likely hurt European investors too".

https://finance.yahoo.com/news/weaponizing-10-trillion-us-assets-161558563.html

3 minutes ago, riclag said:

How Europe Could ‘Weaponize’ $10 Trillion of US Assets Over Greenland

Radical extremist ideas ,ponder the consequences of Biting ones nose off despite....

"But that’s easier said than done. The bulk of these assets are held by private funds outside the control of governments, and in any case such a move would likely hurt European investors too".

https://finance.yahoo.com/news/weaponizing-10-trillion-us-assets-161558563.html

The Danish pension fund has already announced that they will dump all US treasury holding at the end of this month.
Others may follow

16 minutes ago, ericbj said:

If you rely on U.S. dollar income this concerns you.

Ditto if you rely upon other western fiat currency income, although they may be slower to fall in real value (as measured by inflation).

I find that the people who promote these claims;

1. Have a vested interest in selling their advice and financial solutions.

2. Have no significant assets of their own.

If they are so smart, why do they have to go on tiktok and youtube etal flogging their great ideas and claims? Why should they care? I have my money and that's what I focus on, not other people's money.

3 minutes ago, CallumWK said:

The Danish pension fund has already announced that they will dump all US treasury holding at the end of this month.
Others may follow

As has been stated many times, the Danish funds are insignificant.

If they all dump their treasury holdings, where are they going to put it? Botswana? Algeria? India?

It is invested in the US Treasury notes for many reasons;

1. Excellent returns

2. Still safe, despite Trump's actions

3. Part of a diversified investment strategy

If the Treasury notes are all dumped, the people cashing in or not renewing are eventually going to take financial losses because the money will be invested in lower performing assets and in higher risk assets.

Pensions funds and Life Insurers must invest in assets that will be able to support pension obligations, annuity obligations and stutory investment requirements.

All the people claiming that there will be a big sell off are not from the investment sector and have never managed a large portfolio. The investment in stable assets is already maxxed out for some countries like Japan and Canada.

The US administration will change in 2 years. For investment managers, 2 years is nothing. If you want to make money, you cannot panic and react emotionally. Pension fund managers think long term.

There are a number of threats to the dollar, the two most significant being the mountain of U.S. Debt and the developing replacement of the Petro Dollar by the BRICS unit.

They are linked.

While the world needs dollars to settle international trade, the U.S. can continue to sell dollars and thereby service the U.S. Debt.

As soon as the world doesn’t need to trade in dollars to settle transaction, the market for dollars collapses and so does the ability to service the debt.

The days of “Our dollar, your problem” are numbered.

6 minutes ago, Patong2021 said:

As has been stated many times, the Danish funds are insignificant.

If they all dump their tresury holdings, where are they going to put it?

It is in the US Treasury notes for many reasons;

1. Excellent returns

2. Still safe, despite Trump's actions

3. Part of a diversified investment strategy

If the Treasury notes are all dumped, the people cashing in or not renewing are eventually going to take financial losses because the money will be invested in lower performing assets and in higher risk assets.

Pensions funds and Life Insurers must invest in assets that will be able to support pension obligations, annuity obligations and stutory investment requirements.

All the people claiming that there will be a big sell off are not from the investment sector and have never managed a large portfolio. The investments in stable assets is already maxxed out for some countries like Japan and Canada. As it is, Canada and Japan have serious debt problems and have been using pension funds to finance capital projects in their respective countries.

Maybe you should look into real assets other than paper or electronic blips.

One might suggest gold.

Or, if you want something of high industrial demand, silver.

11 minutes ago, Patong2021 said:

As has been stated many times, the Danish funds are insignificant.

If they all dump their tresury holdings, where are they going to put it?

It is in the US Treasury notes for many reasons;

1. Excellent returns

2. Still safe, despite Trump's actions

3. Part of a diversified investment strategy

If the Treasury notes are all dumped, the people cashing in or not renewing are eventually going to take financial losses because the money will be invested in lower performing assets and in higher risk assets.

Pensions funds and Life Insurers must invest in assets that will be able to support pension obligations, annuity obligations and stutory investment requirements.

All the people claiming that there will be a big sell off are not from the investment sector and have never managed a large portfolio. The investments in stable assets is already maxxed out for some countries like Japan and Canada. As it is, Canada and Japan have serious debt problems and have been using pension funds to finance capital projects in their respective countries.

You assume the risk of holding US treasury notes is fixed or that the reliability of the U.S. to pay is beyond question.

There is no reason to believe that the US would not default on payment.

Past performance is no guarantee of future returns.

Give Trump direct control of the FED and all bets are off.

Loans are normally secured against assets. Is this the case with current U.S. borrowings?

6 minutes ago, Chomper Higgot said:

There is not reason to believe that the US would not default on payments.

If we learn anything from history, we KNOW that trump defaults on his bills. He has hundreds of court cases of contractors suing him for failure to pay his bills. Why should anyone think he would honor the country’s bills?

1 minute ago, FolkGuitar said:

If we learn anything from history, we KNOW that trump defaults on his bills. He has hundreds of court cases of contractors suing him for failure to pay his bills. Why should anyone think he would honor the country’s bills?

Yes, the USA could default. I have already stated this in other threads. However, the reality is that it is neither. the US President's nor the Secretary of Treasury to make alone. The US financial services would collapse and so would the US economy. Anything can happen, but the reality is that it it is not going to. Trump is gone in 2 years. It takes more than 2 years to put a country into a default.

4 minutes ago, Patong2021 said:

Yes, the USA could default. I have already stated this in other threads. However, the reality is that it is neither. the US President's nor the Secretary of Treasury to make alone. The US financial services would collapse and so would the US economy. Anything can happen, but the reality is that it it is not going to. Trump is gone in 2 years. It takes more than 2 years to put a country into a default.

Unlikely the U.S. will default on its debts in the sense of repudiating them. Instead it will repay them in dollars that are devalued by "money-printing". Precisely why Trump seeks control of the Fed: no more control of inflation.

https://www.bullionvault.com/silver-price-chart.do

1 hour ago, riclag said:

How Europe Could ‘Weaponize’ $10 Trillion of US Assets Over Greenland

Radical extremist ideas ,ponder the consequences of Biting ones nose off despite....

"But that’s easier said than done. The bulk of these assets are held by private funds outside the control of governments, and in any case such a move would likely hurt European investors too".

https://finance.yahoo.com/news/weaponizing-10-trillion-us-assets-161558563.html

Radical extremists?

No, just common sense.

Europe has to address the reality of dealing with a demented raving lunatic. It's time they accept the fact the US is a force for evil in the world, run by a rabid dog, and cannot be relied upon in any way. The days of friendship and mutual cooperation are over.

Europe, which among other foreigners own up to 40% of the US' sovereign debt of $39 trillion (about $11 trillion of that under Trump 1.0 and 2.0). can wean itself off slowly. They can reduce purchases at every Treasury auction, and sell off their existing holdings before Trump does yet another idiotic move and defaults, as he once said he might do during a CNBC interview in 2016. As stupid as default would be, the entire world now knows Trump is that stupid. Selling ANYTHING in their holdings is better than losing EVERYTHING in a Trumpian default.

The winner in Davos was Xi. He acted like a moderate and like an adult. He didn't mention windmills once in his speech, nor did he spend an hour praising himself and spewing endless lies, as Trump did. I'm going to guess Xi also knows the difference between Greenland and Iceland, as well as between Denmark and Norway. Clearly Trump does not.

China is going to end up with dozens of unilateral trade and investment deals, and perhaps even multilateral deals, while the US is going to lose trade partners just as it no longer has any allies in the world.

There is now a great opportunity for building a basket of currencies as a reserve currency, finally letting the dollar go. The move will happen slowly and be done at a measured pace, but the world now knows the US is a rogue nation and quite possibly on its way to being a failed state.

I suspect in the next few months there will be not only State trade deals with foreign nations (such as California and Canada or California and China), but also talk of secession from the US. If Trump can go outside the law and impose tariffs, then States can ignore Trump and do private trade agreements ignoring the silly TACO tariffs.

1 hour ago, Alan Zweibel said:

Why should anyone pay attention to this Lena Petrova person? Looks like just another panicmonger.

I guess you do not understand what she says, which is why you judge her by her looks. Although she looks fine to me !

1 hour ago, Chomper Higgot said:

You assume the risk of holding US treasury notes is fixed or that the reliability of the U.S. to pay is beyond question.

There is no reason to believe that the US would not default on payment.

Past performance is no guarantee of future returns.

Give Trump direct control of the FED and all bets are off.

Europeans know that Trump once said, during a live interview on CNBC in 2016, that he would consider default on foreign-owned USTs.

Could anyone do something so stupid, to which Trump would say, "Hold my cheeseburger".

2 minutes ago, ericbj said:

I guess you do not understand what she says, which is why you judge her by her looks. Although she looks fine to me !

No, I don't have have any tine or use for people who don't put their claims into writing. The thing is it's a lot easier to fact check and analyze the written word than it is to do the same for videos. So, my presumption is, that if they won't put it in writing, why should I bother to pay attention to them?

1 hour ago, Patong2021 said:

I find that the people who promote these claims;

1. Have a vested interest in selling their advice and financial solutions.

2. Have no significant assets of their own.

If they are so smart, why do they have to go on tiktok and youtube etal flogging their great ideas and claims? Why should they care? I have my money and that's what I focus on, not other people's money.

Your claimed investigation of people who make such claims is irrelevant to those who find their advice useful in preserving their wealth, irrespective of whether the advisers make any money from it.

(Incidentally I follow her regularly and pay her no money; though I do not begrudge her anything she makes from her channel).

You do not make clear how you know that she and others like her have no investments. I personally am unaware of her wealth.

But others I am happy to seek free advice from (it's a kind of sales intro.) include some who have amassed very large fortunes. Such as Bill Bonner, Doug Casey, Porter Stansberry, etc. Names you would know if you know anything about investment.

But of course you are free to miss out on whatever you want, including preserving your purchasing power.

It was never my intention to pander to those with a mystical belief in an infallibly eternal dollar.

History shows that fiat currencies fail eventually.

Will the dollar be an exception?

21 minutes ago, ericbj said:

Your claimed investigation of people who make such claims is irrelevant to those who find their advice useful in preserving their wealth, irrespective of whether the advisers make any money from it.

(Incidentally I follow her regularly and pay her no money; though I do not begrudge her anything she makes from her channel).

You do not make clear how you know that she and others like her have no investments. I personally am unaware of her wealth.

But others I am happy to seek free advice from (it's a kind of sales intro.) include some who have amassed very large fortunes. Such as Bill Bonner, Doug Casey, Porter Stansberry, etc. Names you would know if you know anything about investment.

But of course you are free to miss out on whatever you want, including preserving your purchasing power.

It was never my intention to pander to those with a mystical belief in an infallibly eternal dollar.

History shows that fiat currencies fail eventually.

Will the dollar be an exception?

Now Porter stansberry is a name I recognize:

In 2002, Stansberry sent out an email offering to sell for $1,000 the name of a company purportedly about to obtain a contract to dismantle nuclear weapons for Russia.^[5] The Securities and Exchange Commission sued him in 2003^[6] on this basis and for his newsletters containing "nothing more than baseless speculation and outright lies",^[5] accusing him of a "scheme to defraud public investors by disseminating false information in several Internet newsletters."^[2][5] The case went to trial in 2005,^[7] and a federal court found that Stansberry had sent out a newsletter to subscribers predicting one company's stock, USEC Inc., would increase by over 100%. Stansberry maintains his information came from a company executive; the court ruled he fabricated the source.^[2]

https://en.wikipedia.org/wiki/Porter_Stansberry

2 hours ago, Patong2021 said:

I find that the people who promote these claims;

1. Have a vested interest in selling their advice and financial solutions.

2. Have no significant assets of their own.

If they are so smart, why do they have to go on tiktok and youtube etal flogging their great ideas and claims? Why should they care? I have my money and that's what I focus on, not other people's money.

She appears to possibly be a pro-Kremlin asset. For a renowned "geopolitical expert" she doesn't make finding her educational credentials easy. She was cited in a NATO publication for promoting Pro-Kremlin BRICS/dedolarization content in 2023 but the video no longer exists on her channel. OP is a goldbug and so anti-west/dollar information is more appealing.

But OP isn't alone in posting Youtube garbage from so called experts and it isn't limited to pro-Kremlin. You can find pro-west examples in the Ukraine is winning the war and anti-Trump threads.

When everyone is on one side of a trade (USD going to zero), the resulting adjustment is usually quite impressive.

This is likely what we will see regarding USD - a strong move up on strong demand.

What people forget is this: Every single Dollar of USD debt is future demand for those Dollars.

Further, every Dollar of debt paid off is one less Dollar in existence - when debt is paid, the currency is erased.

Hence, at some point in the future, USD is virtually guaranteed to move upwards in serious fashion.

54 minutes ago, Alan Zweibel said:

Now Porter stansberry is a name I recognize:

In 2002, Stansberry sent out an email offering to sell for $1,000 the name of a company purportedly about to obtain a contract to dismantle nuclear weapons for Russia.^[5] The Securities and Exchange Commission sued him in 2003^[6] on this basis and for his newsletters containing "nothing more than baseless speculation and outright lies",^[5] accusing him of a "scheme to defraud public investors by disseminating false information in several Internet newsletters."^[2][5] The case went to trial in 2005,^[7] and a federal court found that Stansberry had sent out a newsletter to subscribers predicting one company's stock, USEC Inc., would increase by over 100%. Stansberry maintains his information came from a company executive; the court ruled he fabricated the source.^[2]

https://en.wikipedia.org/wiki/Porter_Stansberry

If you look at the sales pitches for the upmarket products of investment advisory services such as Stansberry, they make umpteen claims about past successful predictions as well as future predictions. There can be little doubt that like most businesses they project themselves in a very positive light. I do not believe they are deliberately dishonest. Exaggerrate, yes.

They are supported by subscriptions, not as some are, by commissions from the companies they recommend. And have been in business for many years. But of course, caveat emptor.

I found a very useful website - name forgotten - that double-checked their claims and made educated guesses as to companies they were promoting, but whose identity was only revealed upon payment of the subscription.

About seven or eight years ago, knowing absolutely nothing about investment in stocks etc, I took out several of these rather expensive subscriptions. I made a decent profit with my modest investments over one year, but figured I had really gained nothing (but an education) because of what I had paid out.

But then I was hit with nearly 40% taxes by the French Government, putting me firmly in the red. I decided such services were worth it for a person with a good bit more money to invest than myself.

Another problem with the stockmarket was the amount of time it absorbed. For the past few years I have just sat back, with some small investments in gold and silver mining, mainly royalty and streaming companies.

1 hour ago, timendres said:

When everyone is on one side of a trade (USD going to zero), the resulting adjustment is usually quite impressive.

This is likely what we will see regarding USD - a strong move up on strong demand.

What people forget is this: Every single Dollar of USD debt is future demand for those Dollars.

Further, every Dollar of debt paid off is one less Dollar in existence - when debt is paid, the currency is erased.

Hence, at some point in the future, USD is virtually guaranteed to move upwards in serious fashion.

What you write does not make sense because it is not the way things work in real life.

Debt only makes a person, company, or country richer if it is used to generate profits that exceed the capital + interest that must be repaid. Borrowing up to a certain proportion of income (or GDP) can, if wisely invested in productive business, increase wealth.

But we are no longer in that ball-game. Returns on investment have become very slender, as indicated by current levels of GDP in the western world. But then add in the interest payable which is now met by creating further debt, and the whole thing is beginning to snowball.

Dollar debt in the form of Treasury Reserves are, on my understanding, created in two ways:

1. Loaning to the U.S. Government dollars paid for imports from abroad; and

2. Foreign and domestic entities loaning dollars to the U.S. Government as a store-of-value. (The only "tier-1 asset" apart from gold, as defined by the B.I.S.)

In case (1): dollars which might otherwise have been exportted, weakening the currency, are instead retained in the U.S.

Where they can be used to support government spending, on condition of paying the interest and redeeming them at maturity. If at maturity those dollars are exported, they will weaken the currency, just as they would have if never loaned to the U.S.

That a massive export of dollars causes the dollar's exchange value to fall is precisely the reason that major holders of Treasuries must liquidate them by degrees and not all in one go. The law of supply and demand.

(Even if the dollars were not exported, but were made available on the domestic market, this would also undermine their value)

In case (2): the argument is much the same.

If in doubt as to the effect of putting into circulation excessive debt-instruments (currency notes etc) one can study the Weimar Republic, or in more recent times Zimbabwe.

Weakening the dollar by exporting it to exchange it for another currency explains the reason behind currency controls, which we may see reintroduced in the near future. In my youth one was not permitted to take more than 50 GBP outside the Sterling Area.

Solution to United States Government debt:

3 hours ago, ericbj said:

If in doubt as to the effect of putting into circulation excessive debt-instruments (currency notes etc) one can study the Weimar Republic, or in more recent times Zimbabwe.

Weakening the dollar by exporting it to exchange it for another currency explains the reason behind currency controls, which we may see reintroduced in the near future. In my youth one was not permitted to take more than 50 GBP outside the Sterling Area.

The USD / US / Federal Reserve are nothing like Weimar or Zimbabwe. The comparisons do not apply.

The simple fact is that the EuroDollar system is awash with massive debt denominated in USD.

At some point, USD will need to be acquired to service those debts.

Every dollar used to pay off those debts is one less dollar in existence.

At some point, the borrowers will be begging the Fed to print more dollars.

Does the US government have its own untenable issues with regards to its own debt? Yes. Of course.

8 hours ago, CallumWK said:

The Danish pension fund has already announced that they will dump all US treasury holding at the end of this month.
Others may follow

2nd biggest own goal since blowing up the NS2

28 minutes ago, timendres said:

The USD / US / Federal Reserve are nothing like Weimar or Zimbabwe. The comparisons do not apply.

The simple fact is that the EuroDollar system is awash with massive debt denominated in USD.

At some point, USD will need to be acquired to service those debts.

Every dollar used to pay off those debts is one less dollar in existence.

At some point, the borrowers will be begging the Fed to print more dollars.

Does the US government have its own untenable issues with regards to its own debt? Yes. Of course.

The debtor is the U.S. Government.

And the debtor - the U.S. Government - already has the Fed "printing more dollars".

Why?

- Because of a shortfall in demand the last time there was a sale of Treasury bonds. The Fed had to buy unsold Treasury bonds with money printed out of thin air.

If you are in favour of Modern Monetary Theory maybe you are OK with that.

At the next offering, the U.S. Government will likely have to offer higher interest as an inducement to potential buyers.

Buyers are not so blind as to ignore depreciation of capital over the duration of the bond.

Alternatively, the Fed will have to buy more debt once again.

12 hours ago, timendres said:

The USD / US / Federal Reserve are nothing like Weimar or Zimbabwe. The comparisons do not apply.

The simple fact is that the EuroDollar system is awash with massive debt denominated in USD.

At some point, USD will need to be acquired to service those debts.

Every dollar used to pay off those debts is one less dollar in existence.

At some point, the borrowers will be begging the Fed to print more dollars.

Does the US government have its own untenable issues with regards to its own debt? Yes. Of course.

There’s a far more troubling shortage of dollars in the U.S. banking system.

The U.S. Repo market is now frequently running out of dollars, something that hardly ever happened for years but is now happening on a monthly basis.