Imagine if European countries start dumping 25% of their USA bonds
President Trump has found the hammer to hit the world: tariffs. 25%!
If you don’t cooperate, it will go higher: 35%.
But I have to let you know: if you play with fire you can be burnt.
What if Euope hits back by dumping 25% of the USA bonds?
In this chart and in this file you see what the power is of European countries.
https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt_table3.htmlThese are data from the USA treasuries.
It shows each country holding USA bonds.
To calculate the impact you would need to:
Add the current bonds of all European countries.
Take 25%
And imagine what would happen with the USA bond market if bonds get dumped.
Yields would go up as prices go down.
And USA could not take it!
It would devastate the business of USA.
Wallstreet, banks, and Mainstreet would suffer.
I’m not saying Europe should do this. I’m just saying what would happen?
If you are playing with tariffs you could get hit.
Check this out.
Runy
Island Wealth
