Market Watch (September 6)
“The U.S.’s status as a financial safe haven has begun to clash with President Trump’s growing barrage of economic and military threats to advance his agenda.” There seems be a common fear behind the Netherland’s recent withdrawal of reserve gold from the U.S., the drawdowns of France and Germany’s U.S.-based reserves, and a current plan in Norway to cut Treasury holdings. Basically, what’s to stop Trump from simply seizing their assets? His “sweeping tariff fight shocked the world last year. Then came the capture in January of Venezuelan leader Nicolás Maduro, February’s launch of the U.S.-Iran war, and plans in late August to control of more than 65 billion barrels of Venezuelan oil. In between, there’s been taunting of European and NATO allies, a campaign to takeover over Greenland and its natural resources and, lately, an escalating U.S.-Canada trade war.” So even if seizure sounds far-fetched, it is a legitimate risk for central banks to mitigate.
Tags: Allies, Assets, Barrage, Canada, Capture, Clash, Economic, Escalating, Europe, Fear, France, Germany, Gold, Greenland, Iran war, Maduro, Military threats, Nato, Netherlands, Norway, Reserves, Risk, Safe haven, Seizing, Seizure, Tariff, Taunting, Trade war, Treasury, Trump, U.S., Venezuela, Venezuelan oil, Withdrawal
New York Times (January 24)
“The world will remember Trump’s Greenland outburst.” The President’s “immoral threats against a loyal NATO ally have escalated a crisis in U.S.-European relations, weakened one of history’s most successful alliances and hurt American interests in tangible ways…. Leaders in Beijing and Moscow are no doubt thrilled. America is less safe than it was a week ago.”
Tags: Alliances, Ally, Beijing, Crisis, Escalated, Europe, Greenland, Immoral, Less safe, Moscow, Nato, Outburst, Threats, Thrilled, Trump, World
Financial Times (January 19)
“Trump’s bizarre designs on Greenland and his willingness to inflict financial pain on allies” mean that “the U.S. has squandered its most valuable financial asset: trust. It risks paying a heavy price for this for decades to come.” The U.S. remains the only market “big enough to absorb” giant capital flows so this “is not about ‘sell America.’” Europe is not going to sell its $8 trillion worth of Treasuries overnight. Rather, Trump’s latest move provides “a big incentive for investors to buy more bonds and stocks from elsewhere over time…. to spread things a little more globally.”
Tags: $8 trillion, Allies, Asset, Bizarre, Bonds, Capital flows, Europe, Financial pain, Greenland, Heavy price, Incentive, Investors, Risks, Sell America, Squandered, Stocks, Treasuries, Trump, Trust, U.S., Valuable
Fortune (January 18)
“The greenback dropped while precious metals rallied Sunday as financial markets started reacting to President Donald Trump’s new tariff threats.” On Saturday, Trump announced 8 European allies would face “a 10% tariff starting on Feb. 1 that will rise to 25% on June 1, until a ‘Deal is reached for the Complete and Total purchase of Greenland.’” His latest threat revived smoldering fears centering on “U.S. debt and reserve currency status.”
Tags: 10%, 25%, Allies, Debt, Fears, Financial markets, Greenback, Greenland, Precious metals, Rallied, Reserve currency, Tariff, Threats, Trump
The Week (January 14)
“President Donald Trump has renewed his efforts to take over Greenland, and tapping into the Danish territory’s natural resources is a key part of the strategy. But even if Trump were to somehow make Greenland a U.S. territory (something Denmark vehemently opposes), experts say the island’s harsh climate and environment make mining Greenland’s natural resources an unachievable goal.”
Tags: Climate, Denmark, Efforts, Environment, Experts, Greenland, Mining, Natural resources, Opposes, Renewed, Strategy, Trump, U.S., Unachievable
The Guardian (May 25)
Recent research suggests “that even if carbon emissions are slashed to meet the internationally agreed target of 1.5C, sea level rises will become unmanageable during this century.” The “more ominous” fact, however, is “that even the existing 1.5C goal is moving out of reach.” Globally we are on course for “at least 2.5C of heating,” likely melting “the Greenland and west Antarctic ice sheets” and triggering “‘really dire’ sea level rise of around 12 metres.” Still, we are not helpless. “People will adapt to sea level rises in the future as they have in the past. This is not to deny or underplay the scale of the threat, but to stress the importance of preparing for changes which are now inevitable, as well as trying as hard as possible to avoid the worst-case scenarios.”
Tags: 1.5C, 12m, 2.5C, Adapt, Carbon emissions, Dire, Greenland, Ice sheets, Inevitable, Ominous, Preparing, Research, Sea level, Threat, Unmanageable, West Antarctic
Washington Post (March 1)
President Trump’s “gambit to take control of Ukraine’s deposits of lithium, graphite, cobalt, rare metals and so forth — after calling for buying Greenland and taking over Canada, in part to nab their vast troves of critical minerals — suggests that he is fashioning a 19th-century strategy to work in the 21st.” While he may like this strategy, “holding a gun” to other nations “seems unwise if the United States wants to avoid becoming an international pariah and pushing erstwhile allies into the arms of its adversaries.”
Tags: 19th-century strategy, Adversaries, Allies, Canada, Cobalt, Control, Deposits, Gambit, Graphite, Greenland, International pariah, Lithium, Minerals, Rare metals, Trump, U.S., Ukraine
