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Bloomberg reporting seems to reflect broad skepticism about the ability of the EU to force US asset sales, but couldn't they just change the risk weights for treasuries w/r/t capital requirements? That seems like a continuous lever to cause a treasury selloff. Is there something I'm missing?

19/1/26, 6:18 pm0 reposts2 likes

Brice

@brice.green

19 Jan

Gift article here: www.bloomberg.com/news/article...

bloomberg.com‘Weaponizing’ $10 Trillion of US Assets Is Tough Ask for EuropeAs Europe considers how best to respond to US President Donald Trump’s latest threats over Greenland’s sovereignty, there’s one extreme potential counter measure that’s fueling debate among investors.

Brice

@brice.green

19 Jan

I mean obviously the impact would depend on NBFIs but it seems like a pretty clear lever that a central bank could pull to pressure private actors.