"“Europe owns Greenland, it also owns a lot of Treasuries,” he wrote in a note on Sunday.Holding those bonds helps balance America’s massive external deficits, and Europe is the world’s biggest lender to the U.S.For example, offsetting the U.S. trade imbalance requires heavy inflows of capital from abroad. Meanwhile, the Treasury Department must also finance budget gaps by issuing more debt, often to foreign investors.“European countries own $8 trillion of US bonds and equities, almost twice as much as the rest of the world combined,” Saravelos pointed out. “In an environment where the geoeconomic stability of the western alliance is being disrupted existentially, it is not clear why Europeans would be as willing to play this part.”
>>526446661Their demand for treasuries is what pushes the value of the dollar up and keeps their own currencies less valuable. This helps prop up their export based economy.
>>526446974The Euro and Bri'ish pound are more valuable though.
>>526446661That’s great and all but it’s not European governments holding the assets. They can’t just press the sell button and why would EU banks and pension funds etc want to fuck themselves over?
