This week should be interesting for the markets after Donnie's latest tantrum and social media screed midday on Saturday....
Per BBG, FOTUS announced a 10% tariff on European countries rallying to Denmark’s side in his pursuit of Greenland and will raise the tariff to 25% in June unless “a Deal is reached for the Complete and Total purchase of Greenland.”
The tariffs will apply to Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland, he said.
The explosive threat targets several of the top US allies and will further strain the NATO alliance, of which Denmark is a member.
Comments
The world economic order is already changing - trading blocs* and agreements are being inked that route around the US instead of through or with it. That's a striking change of trade philosophies, imo. If/when the world (or large parts of it) start to use another currency in place of the USD, say the Euro, our goose may well truly be cooked.
That said, Russia and China already are the true beneficiaries of Donnie's insanity as the world restructures away from the US' role as a 'trusted' partner and pillar of relative stability in the world.
* https://apnews.com/article/mercosur-european-union-trade-agreement-south-america-b779460da4b7ecb6aa15d322976fa70d
Much of what Trump has been doing is exactly what Putin would like to see.
I think this is the year that Europe et al. say "yeah, we don't need America as much as all that" and our hegemonic and economic foothold crumbles.
Maybe I did a good thing last week buying more international bonds? I'm sure DJT will tax the hell out of anyone holding foreign debt or equities now -- kind of un-American. The only institution we need is the Trump Organization.
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"WTF is wrong with congress. 75% of Americans object to this asinine presidents policy on Greenland.
Wake UP -- Congress is basically useless anymore.
November can't come soon enough."
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As pointed out by rforno, Russia and China are making out as many countries (like Canada, for example) reroute their trading from the U.S. to other countries.
If the plan is to destroy international trade with the US, well GREAT JOB.
"Dan Ivascyn, chief investment officer of Pimco, told the FT that the $2.2tn fund manager
was 'diversifying' its portfolios as it contended with the US president’s rapidly changing policies,
which had caused flare-ups in market volatility."
"'It’s important to appreciate that this is an administration that’s quite unpredictable,' Ivascyn said.
'What are we doing about that? We’re diversifying . . .
We do think we’re in a multiyear period of some diversification away from US assets.'"
https://archive.ph/ac4o3
“'We have subsidised Denmark, and all of the Countries of the European Union,
and others, for many years by not charging them Tariffs, or any other forms of remuneration,'
Trump wrote in a Truth Social post on Saturday.
'Now, after Centuries, it is time for Denmark to give back — World Peace is at stake!'”
“'Many Presidents have tried, and for good reason, but Denmark has always refused,' Trump wrote.
'Now, because of The Golden Dome, and Modern Day Weapons Systems, both Offensive and Defensive,
the need to ACQUIRE is especially important,' he added, referring to his plan to build
a missile defence system for the US that would mimic Israel’s Iron Dome.”
https://archive.ph/DEFBd#selection-1969.0-1973.255
as the natural leader of the free world. I’ve even spoken about the US as the world’s policeman,'
said Rasmussen, who sent Danish troops to fight with the US in Afghanistan.”
“'I am actually concerned that the world’s attention is now focused on something that does not
represent a threat, neither to Europe nor to the United States — namely Greenland, a friendly ally
of the United States — instead of focusing on what should be the focal point right now:
namely, how can we force Putin to the negotiation table in Ukraine?'”
“A 1951 defence agreement that gives the US large sway over Greenland should be
'updated and modernised' to give more details of where Washington and Nato
'could and should' establish more military bases, he said.”
“Rasmussen added that Denmark should also put forward an investment agreement
to attract more US money into critical minerals in Greenland as well as a stability
and resilience compact 'to prevent Russian and Chinese influence'”.
https://archive.ph/LfRju#selection-1987.0-1987.227
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In another direction:
Trump's Venezuela oil money is being held in bank accounts controlled by the U.S. government, with the largest account located in Qatar, according to multiple reports. The funds come from the sale of Venezuelan oil following the U.S. seizure of control over Venezuela’s oil assets after the capture of President Nicolás Maduro in January 2026.
Qatar’s role is described as a neutral and secure location to hold the proceeds—initially $500 million from the first sale—helping to prevent seizure by creditors or legal claims from foreign companies with past grievances. The Trump administration argues this setup ensures the money can be used to benefit Venezuela directly, funding government operations, food, medicine, and small businesses through auctions managed by Qatari banks and overseen by the Central Bank of Venezuela under U.S. conditions.
However, transparency concerns have emerged. Critics, including Sen. Elizabeth Warren, argue that placing the funds offshore in Qatar lacks legal precedent and resembles a “slush fund” with insufficient oversight. They question the lack of congressional input and warn of potential misuse by Venezuelan interim leaders like Delcy Rodríguez to consolidate power.
While the administration claims the move stabilizes Venezuela and bypasses years of financial isolation, the decision has sparked debate over accountability, presidential authority, and the precedent of holding seized foreign assets in offshore accounts.
(Nothing to see here, move along.............)
China has quietly selling treasury and now fell to the third largest holder (used to be #1). It would be a mess if China wants to get paid in Chinese Yuan instead of dollar.
Apparently, in a weekend phone call, Donnie told UK's PM Starmer that he didn't really know what was happening with the EU military buildup on Greenland when he frantically announced his NATO tariffs.
Turns out, the EU had announced the exercise well in advance through the usual coordination channels THAT INCLUDED THE UNITED STATES. It wasn't a retaliatory esclation but good / coincidental timing.
So who in the US didn't bother to tell FOTUS? KegBreath? Rubio? CJCS Kaine? And why not? To purposely egg him on his quest to conquer?
https://en.wikipedia.org/wiki/Diego_Garcia
Some suggested that this administration is panicking on rare earth metals. Greenland is impractical to mine in light of the climate. Refining and producing high purity grade rare earth metals will take many years to developed. US gave away the technology to China many years ago. And now US is stuck with no raw materials and lack of infrastructure to refine these critical materials.