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    "Europeans selling $10t of US assets [equities and bonds]... would pull the rug from under the US economy."
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    Europeans selling $10t of US assets [equities and bonds]… would pull the rug from under the US economy.

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    35 Comments

    3. LPhilippeB on

      Selling the American military tech to China, Russia and India would also pull the rug under the Americans.

    5. HighDefinist on

      This really is the equivalent to using a nuke: You would not ever want to actually do it, but you absolutely need to convince your opponent that you *would* do it.

      I am not sure if our politicians are competent enough to pull this off… but I suppose, now is as good a time to learn this as any really, so, go on!

    6. hotacorn on

      please do it
      This country has to be broken in order to potentially survive and Europe needs to stand up for itself for Western Society to survive.

    11. DeRpY_CUCUMBER on

      To be able to sell Us treasures before they mature, you need a 3rd party to buy them. Most internet people don’t understand this.

      And you’d have to sell them at a discount. Private equity would no doubt buy as much as possible. It would be one of the biggest transfers of wealth from government to private equity we’ve ever seen.

      Also, if you sold your equities, other investors would buy them up quick.

      It actually wouldn’t do much to the US of our treasuries just changed owners.

    12. BergderZwerg on

      That is about the only thing the ruling oligarchs are afraid of. The other thing would be that those stupefied idiots awaken and tear them limb from limb.

    13. SavagePlatypus76 on

      I’m American. And this is ok. Far too many idiots in my country need a harsh lesson 

    16. Interesting_Chip8065 on

      if they cant sell its just gonna devalue the asset they have. this is not doable nor they can do it. clueless morons here talking nonsense lol

    18. TokyoBaguette on

      So how does that work exactly?

      EU sells holdings of UST, market makers get overwhelmed, price crater etc… But new FED can magically buy up everything on Trumps’ order no?

      and what to do with 10Tr USD? Sell that vs what? EUR? So EUR rises, makes EU exports uncompetitive?

      Someone explain please

    22. Opposite-Cranberry76 on

      Isn’t the critical thing not that they’re sold, but that at the next auction, nobody buys?

      Maybe a coordinated buyer’s strike is both a stronger message and has less financial blowback risk.

    23. Feeling-Cancel9227 on

      This will never work you need a buyer to sell if you sell a lot faster the price goes down and you loose as a seller.
      What we can do realistically is start reducing all assets we have that are in US dollars slowly like China and India.
      Private equity is already buying what china n India are selling but if you add the European to it I doubt private equity can buy it all.
      We also need to lower our US reserves currently 60% of our reserves are US dollars

    26. weekendy09 on

      “Defies logic” says the protector of a fascist, pedophile, dictator. The hypocrisy is actually painful.

    27. WindHero on

      No it wouldn’t the Fed would just buy trillions worth of treasuries which would provide liquidity to US investors to buy the risk assets.

      Then Europeans would have trillions of USD which they could use to either: buy US assets (obviously makes no sense), buy US goods and services (could cause inflation but Trump might see this as a win), sit on their USD and lose them to inflation, or buy assets or goods from third party countries, but then those third parties are stuck with the same options.

      So really inflation is pretty much the only way that the rest of the world can hurt the US. And inflation might ultimately be what breaks Trump but I think his plan is to lie about inflation until he is either dead or out of office and then leave the mess for the next guy to clean up.

    28. oldhellenyeller on

      It would be economic suicide, so I’m not surprised to see the Reddit crowd consider it even remotely feasible.

    29. geo_gan on

      I’d say most likely they have to wait to sell when they mature – so US has to pay the interest on them.. and then fuck them by never buying any more of their debt (Bonds) again.

    31. BadBadGrades on

      Would be just be better to stop recognise there intellect property.

      So companies could copy there technologies. Technologies we, Europeans, are so reliant on and don’t even have an alternative for.

    32. Karlzbad on

      Interim step, arrange for the faint sound of dogs or wolves to be audible to Trump all the time he’s in Davos and say it’s hell hounds calling him.

    33. DarthPineapple5 on

      Saying you’re going to dump treasuries to hurt the US is like saying you’re gonna sell your car to hurt Toyota. I think Europe has plenty of other more realistic options to work with, this is nonsense

    34. Mhahx on

      This would be economic suicide for the EU, we hold a lot of dollars and American assets as collateral. Ignoring the other major hurdles, like Germany having a debt brake, coordination between private and central banks… This is sadly just a power fantasy and will never become reality.