Denmark Divests from US Treasuries
AkademikerPension, which oversees approximately $25 billion in retirement assets for academic professionals, will liquidate its roughly $100 million stake in U.S. Treasuries before month's end, Chief Investment Officer Anders Schelde revealed to media Tuesday.
"The US is basically not a good credit and long-term the US government finances are not sustainable," Schelde said. He cited mounting worries over American fiscal responsibility, dollar weakness, and credit threats stemming from Trump's policy agenda. Schelde specifically highlighted Trump's persistent rhetoric about seizing Greenland, an autonomous Danish territory, as a contributing factor.
AkademikerPension joins a growing exodus of Danish pension funds fleeing American debt. Laerernes Pension dramatically cut its Treasury portfolio prior to the recent Greenland confrontation, pointing to U.S. debt sustainability issues and perceived dangers to Federal Reserve autonomy. PFA and Paedagogernes Pension have similarly trimmed positions or suspended new U.S.-centered investment approaches, financial disclosures indicate.
These divestments unfold against intensifying tensions between Washington and European governments over Trump's foreign policy maneuvers, including threats to slap tariffs on allies resisting American annexation of Greenland.
The Danish Defense Intelligence Service recently classified the U.S. as a potential security threat for the first time, referencing Washington's readiness to weaponize its "economic and technological strength as a tool of power, also toward allies and partners." Thousands of Danes and Greenlanders have staged active demonstrations against Trump's territorial ambitions in Copenhagen.
U.S. Treasury Secretary Scott Bessent has called for restraint and rejected speculation that Europe would abandon Treasuries.
"Sit back, take a deep breath, do not retaliate," Bessent said at Davos on Tuesday, urging U.S. allies to "have an open mind" and to honor their trade agreements.
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