This seems like the first step of what will eventually lead to hyper inflation.
I switched my retirement portfolio bond allocations into precious metal indexes last year in anticipation for something like this. It turned into my best performing asset.
I was expecting the AI bubble to burst and then take down the US economy, but perhaps it’s going to be the other way around…
I will also be selling my treasuries, I won’t tell the exact amount but it’s “slightly” less than 100 million.
98 million?
They are right to do so. But also, this is a market measured in trillions
The fact that someone stood up and said “we do not trust the honor of the US to fulfill a debt” is important. We’ll see how much of an impact that actually has, but my kneejerk reaction is that it was meaningful.
my kneejerk reaction
:-/
The global market will pounce on $100M in underpriced Treasuries.
A better question is what the Danes plan to replace the reserves with. Now would be a cool time to roll out EuroBonds.
That said…
Schelde chiefly cited the ballooning debt bill facing the U.S. after decades of government overspending.
This is, has, and will continue to be a dumb reason to sell US Treasuries. The Bond Vigilantes always lose their shirts in the end.
Do you assume that a collapse of the US economy is impossible?
It’s highly unlikely under current conditions
What conditions would be needed to make it likely?
Not OP, but first and foremost, on this bond thing, countries are going to have to be willing to take a beating in their own economies.
Selling off bonds is like Elon selling off Tesla. The worth/wealth disappears if the market is flooded with paper.
Another condition is in our face: The Buffett Index, which is total stock market value vs. GDP. We topped 200% for the first time a couple of weeks ago. It was around 130% in 1929 and 2008. Most of that bullshit money is in AI. We got real problems.
Quite a few. But, just for starters, you’d need the Federal Reserve to turn off the unlimited money spigot.
I don’t think that needs to happen, if you get into a hyperinflation situation, right? And Trump and co have been doing a lot to destroy the underlying productivity of the us economy over the last year.
Read all your comments, would like your take on the Buffett Index topping 200% for the first time (total stock market value vs. GDP). It was around 130% in 1929 and 2008.
Considering the disproportionate amount of stocks in AI, and, so far, no clear path to investors seeing a return, I’m scared shitless.
What’s your take on that bit?
Wouldn’t surprise me if the Norwegian pension fund is looking into the same. They do, however, work slow. We’ll see if Jonas Gahr Støre continues to receive the stupidest spam imaginable.
Eh, fuck it. We’re all goddamn poor anyway.
It’s true the wealthy that cause these problems probably won’t be impacted, though…
But hey, I hope I’m wrong.
Now you are dong something they will notice. The number needs to be much higher.
An avalanche starts as a tiny bit of snow
🥳
Let’s all sell up! There are ways to peacefully protest with robust impact.
