Global markets on alert as Europe to suspend approval of US trade deal

[Wicked Blue]

Source: BBC

The European Parliament is planning to suspend approval of the US trade deal agreed in July, according to sources close to its international trade committee.

The suspension is set to be announced in Strasbourg, France on Wednesday.

The move would mark another escalation in tensions between the US and Europe, as Donald Trump ratchets up his efforts to acquire Greenland, threatening new tariffs over the issue on the weekend.

The stand-off has rattled financial markets, reviving talk of a trade war and the possibility of retaliation against the US for its trade measures.

Read more: https://www.bbc.com/news/articles/c4gwp2me3gzo

[OAITW r.2.0]

1. We are fucked so many ways.

Aero/Auto/Farmers/Cities facing ICE invasion. When will we figure it out? Smarter minds might subsume this Country, because smarter people understand the 21st Century.

[aggiesal]

2. Not yet. When they start selling all $3.4T in US Bonds (about 10% of our debt), that's when we're screwed. n/t

[AZJonnie]

4. I'm not doubting you but I'm confused of the mechanism that leaves us screwed if they sell them?

Is it kinda like if want to sell my house and get the most equity out of it as possible but suddenly 10% of the people in my city put their homes up for sale at the same time, I'd be screwed as it would drive the value of my home way down?

[aggiesal]

5. No, it's more like a run on the bank. ...

When a bank's customers start withdrawing their money from the bank and the bank runs out of money.
When Washington Mutual Bank collapsed, around $16.7 billion was pulled out, which was roughly 9-10% of WaMu's total deposits.

When EU cashes in their bonds, we have to come up with $3+ Trillion (around ~10% of our debt), which we don't have. This could start a run on the FED just like a run on the bank.
The FED would have to increase loan rates which will propagate down to us.
Then other US bond holders will start cashing out on their bonds and the run starts.

A recession starts and jobs are lost, more bond holders start to cash out and it only gets worst.
When the Bond market goes bonkers, we (The U.S.) will be in deep trouble at this point.

All this because Mierda47 wants Greenland.

[AZJonnie]

6. Thanks! But well so here's my confusion, your description said 'sell' their treasuries

Rather than "cash them in". If you had said "cash them in" I'd have understood the cause/effect as you describe it here, but thanks much for taking the time to write, I probably just misunderstood what "sell" means in the context

[C Moon]

3. Remember the Epstein Files.