Source link : https://bq3anews.com/who-in-point-of-fact-holds-the-playing-cards-trump-or-the-bond-marketplace/
When a Danish pension fund lately introduced it could promote its US$100 million (£74 million) preserving of US govt bonds, the transfer was once tiny in monetary phrases – only a drop in a US$30 trillion ocean. But it surely touched on a miles larger factor. International buyers now hang round one-third of all US govt debt, amounting to kind of US$9.5 trillion.
Of those international holdings, Europe has US$3.6 trillion, making it jointly the most important holder of US debt, higher than Japan (which holds US$1.2 trillion) or China (which owns round US$700 billion).
May just this monetary publicity be became political leverage – some way for Europe to ward off towards Donald Trump’s contemporary threats over Greenland and Ecu sovereignty? Or, as the United States president has claimed, does the United States nonetheless “hold all the cards” in debt markets?
On the Global Financial Discussion board in Davos lately, Trump threatened a “big retaliation” if Ecu international locations offered US belongings as a reaction to tariff threats. When politicians speak about Europe “dumping” US govt debt, it feels like a easy, nearly mechanical, act wherein political leaders decide and trillions of bucks’ value of bonds are offered. However that’s now not how monetary markets in fact paintings.
In Europe, US govt bonds aren’t owned by way of governments. They’re held by way of pension finances, insurance coverage firms, banks and funding finances. Those…
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Author : bq3anews
Publish date : 2026-01-27 11:25:00
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