Swedish pension fund Alecta cuts US Treasury holdings citing US politics, and the story starts to unfold. It seems the Swedish pension fund Alecta has made a significant move, divesting a considerable chunk of its holdings in US Treasuries. The reason? Increased risk and unpredictability stemming from the current political climate in the United States. While the exact reasoning hasn’t been directly attributed, it’s clear the fund is reacting to the state of US politics. This is no small potatoes either. Reports suggest the divestment totaled around 70 to 80 billion Swedish crowns, which translates to a substantial $7.7 to $8.8 billion.… Continue reading
Treasuries, Stocks Sell Off as Greenland and Japan Shatter Calm, it seems like the markets have been thrown into a bit of a tizzy lately. We’re seeing tremors in both the bond and stock markets, and it’s got a lot of people on edge. The root of the problem? Well, it’s a mix of factors, but the headlines about Greenland and Japan are really adding fuel to the fire.
It’s hard not to feel a bit uneasy when your retirement savings take a hit, especially when it feels like geopolitical events are to blame. The talk of potential shifts in the international order, and the possibility of some serious policy decisions, is stirring up a lot of worry.… Continue reading
Danish Pension Fund AkademikerPension to Exit US Treasuries – Well, here’s an interesting development: a major Danish pension fund, AkademikerPension, is making a move that could ripple through the global financial landscape. The decision to reduce their holdings in US Treasuries is a clear signal that something is shifting. This isn’t just about shuffling money around; it’s a strategic choice with potentially significant implications.
Danish Pension Fund AkademikerPension to Exit US Treasuries – The reasons behind this decision are likely multifaceted, but it’s clear that political and strategic considerations are playing an increasing role in financial decisions. Some see this as a reaction to recent political events, while others view it as a proactive step to protect their investments and diversify their portfolio.… Continue reading
US mulls payments to sway Greenlanders to join US, and honestly, the whole thing just sounds absurd from the get-go. I mean, the idea of offering lump sum payments to Greenlanders to convince them to break away from Denmark and potentially become part of the US? It’s like something out of a bad spy movie, not a serious foreign policy proposal. The numbers being tossed around, between $10,000 and $100,000 per person, sound ridiculously low, especially considering what Greenlanders would be giving up.
Consider what Greenland currently enjoys: a robust welfare state, excellent healthcare, and free education thanks to its ties with Denmark.… Continue reading
In March, China decreased its holdings of US Treasuries by $18.9 billion, falling to third place among foreign holders behind Britain. This reduction occurred before April’s sharp sell-off triggered by President Trump’s tariff announcements. Britain surpassed China to become the second largest foreign holder of US Treasuries, increasing its holdings by $29 billion. The overall foreign holdings of US Treasuries reached a record high of $9.05 trillion in March.
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Moody’s downgraded the U.S. government’s credit rating from Aaa to Aa1, citing escalating debt and repeated failures to address it across administrations. This makes the U.S. the first to lack a top-tier rating from all three major agencies in over a century, following similar downgrades by S&P and Fitch. Moody’s projects a growing federal deficit, reaching nearly 9 percent of GDP by 2035, fueled by rising interest payments and entitlement costs. The agency also warned that extending the 2017 tax cuts would exacerbate the deficit, highlighting political gridlock as a significant barrier to fiscal reform.
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Ray Dalio, Bridgewater founder, expressed deep concern over the global economic outlook, citing President Trump’s disruptive trade policies as a major destabilizing factor. He highlighted a shift from multilateralism to a more unilateral world order, increasing the risk of global conflict and recession. Dalio emphasized the interconnectedness of economic, political, and technological forces, warning that unchecked U.S. debt and trade disputes could trigger a financial crisis exceeding the severity of past events. He advocates for deficit reduction and a cooperative approach to international trade to mitigate these risks.
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During a flight to the Super Bowl, Donald Trump claimed that DOGE analysts discovered irregularities in U.S. Treasuries, suggesting the country might not be obligated to repay some debts. This statement directly contradicts the 14th Amendment, which explicitly prohibits questioning the validity of the public debt. While markets haven’t reacted significantly, the assertion is alarming given its potential to destabilize the financial system and its reliance on purported analyses from individuals with questionable expertise. The gravity of the situation remains uncertain pending further developments.
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Matt Underwood 
John Q. Hosedrinker