Despite all the talk about military action, the fact is that Europe is one of the main trading partners of the US and holds a substantial share of US debt. Any invasion would be economic suicide, and I think even Trump realizes this.
Trump barely thinks about first order effects, much less second order. He probably doesn't know it's economic suicide. And when it happens he'll tell us both "nobody knows more than me" and "nobody knew global commerce was this complicated" and then he'll tell us he'll have a plan to fix it in two weeks
A mass selloff of US bonds will mean that the US can’t sell any more - because the market is suddenly flooded with bonds at a ‘discount’. This means that the US can’t take on any more debt (borrow money)
Why would you pay the US $10 when you can get the same thing from France for $8?
Or the US then has to issue bonds with massively inflated returns - i.e. pay a much higher interest rate.
thatguy0900|1 month ago
malfist|1 month ago
rchaud|1 month ago
throw0101c|1 month ago
Your mistaking is in using rationality and logic.
drysine|1 month ago
That's the EU's problem, not Trump's)
alibarber|1 month ago
Why would you pay the US $10 when you can get the same thing from France for $8?
Or the US then has to issue bonds with massively inflated returns - i.e. pay a much higher interest rate.
bojan|1 month ago
rsynnott|1 month ago