Donald Trump spoke about the possible scenario of mass disposal of American bonds by European countries during a conversation on Fox Business television.
– If they do it, they do it. If this happened, there would be a lot of retaliation. We have all the cards in our hand, assured the US president.
The leader also said that his Wednesday announcement of a “framework for a future agreement” on Greenland resulted in big gains on the stock market. He previously admitted that his threats on this subject contributed to the largest declines since October.
What consequences does Trump predict if Europe sells US bonds?
What does Trump think about NATO?
What movements were observed on the stock market after Trump's threats?
What happened after the Greenland announcement?
Donald Trump changes his tone on NATO. “Now it goes both ways.”
In an interview with Fox Business, Donald Trump also changed his rhetoric regarding NATO. Although he said on Wednesday that America had not benefited from the Alliance, on Thursday he admitted that NATO was no longer a “one-way street.”
At the same time, the US president repeated that he had doubts whether allies would come to America's aid and downplayed NATO's assistance during the war in Afghanistan, which was the only case in history of the use of Article 5 of mutual defense.
– In fact, we never demanded anything from them. You know, they'll say they sent troops to Afghanistan or Sudan, and they did. They remained a little behind, a little beyond the front line. But we have been very good to Europe and many other countries, said the US president. “It has to be a two-way street and now it really goes both ways,” he added.
Will Europeans get rid of American bonds? There are movements on the stock exchange
Divesting US bonds has been discussed in the media as a potential means of putting pressure on the US regarding Greenland's threats. EU countries and the UK are by far the largest foreign holders of US debt.
On Tuesday, a Danish pension fund announced its exit from the US bond market. In response to Donald Trump's threats, bond interest rates rose by the most in almost six months, but fell after the announcement of the Greenland agreement.
