Name: Why Europe is Preparing To Crash the US Economy - What You Need To Know
Uploaded: 2026-02-03T18:17:36.000Z
Duration: 14 min 28 s
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Europe is the largest investor in the United States.

It holds trillions of dollars of US Assets.

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But recently, Europe has not been happy with the United States.

Which is why European countries are planning to coordinate to dump trillions of dollars of US Assets to force the United States to stop threatening Greenland and stop damaging the European economies.

European economies right now are in a dire situation, but

with this move alone, they could catastrophically wipe out the entire US Economy.

They will cause a crisis that is way worse than 2008 financial crisis.

The 2008 financial crisis is going to look like a walk in the park.

That's why Donald Trump is warning European countries that if they dump US Assets, there is going to be big retaliation.

European countries are some of the largest holders of.

The United Kingdom alone holds almost a trillion dollars of U.S. debt, followed by Belgium, Luxembourg, France, Ireland.

In total, EU and the United Kingdom own $3.6 trillion of U.S. treasuries.

treasuries in the market is going to have a devastating impact on the entire US Economy.

What determines the yields on the US Treasuries is demand and supply.

If there are so many people who want to buy US Debts, then the US Government can offer a very low yield.

But on the other side, if you have trillions of dollars of US Debt is being thrown into the market, while there isn't many people who want to buy it, suddenly the yields on the US Debt are going to substantially rise, which is going to cost the US Government hundreds of billions of dollars, if not trillions of dollars.

Since the total US debt is about to cross $40 trillion, a single percentage point is going to cost the US government 400 billion do.

If it's going to be more than a single percentage point, you can actually do the math.

But right now, it's even more important for the United States to have somebody who will continue buying US Debt because the US Debt has crossed the point of no return and it's substantially growing every single year.

Just within the next couple of years, it's expected to cross $50 trillion.

And within the next 20 years, it can even cross 70 to $80 trillion.

And who exactly is going to pay that much debt?

And if there is enough demand for that debt compared to the supply, what do you think are going to happen to the yields?

They are going to rise substantially, costing the US Government trillions of dollars.

In fact, right now, the US Government is borrowing about a trillion dollars to ensure that it can actually make its interest payments.

So the Government is borrowing money from the people that it has borrowed almost $40 trillion so that it can actually pay them interest, which is why the debt on the other side is substantially growing.

And it's really difficult to stop that debt from growing.

If the total deficit right now is about $2 trillion and based on the current projection is about to cross $2.7 trillion, selling even a trillion dollars of the US debt could potentially spike the yields by about 1 to 2%.

And if a single percentage point is $400 billion, then 2% is $800 billion, which means that the current deficit could easily go to $3 trillion.

It could easily spike by 3 or 4%, which will grow the deficit by $1.5 trillion or even $2 trillion.

The truth is that the United States cannot easily just replace the European economy alongside the UK.

There aren't many other economies with $23 trillion GDPs.

And this is just one part of the story, because we have how much stocks EU countries own in the United States.

The total size of the US equity market is $60 trillion.

And about $20 trillion of that is being owned by foreign countries, including the European countries.

But European countries, if we also include the UK own about $10.6 trillion, while the rest of that is distributed among the rest of the countries.

So if the EU countries suddenly dumped $10 trillion of US stocks, even possibly, imagine what is going to happen to the US Stock market.

That's literally like half of all the foreign ownership of the US Stocks.

Is there anyone else that can replace the European Union?

Do you think China is suddenly going to buy all of these stocks at a discount?

When there is so much distrust between the United States and China, do you think India is going to replace the European Union?

Obviously, there are no alternatives to the European investments in the United States at all.

Maybe that's why the EU feels so confident that it can threaten the United States.

If the US Is going to cross some very red lines.

But they don't even have to sell that much money to crush US Stock market.

Even if they sell a small portion of those investments, like $1 trillion, it is going to lead to a crush that is going to be worse than the 2008 financial crisis.

And everybody who is old enough remembers how bad the 2008 financial crisis was.

And if the United States is going to experience that, do you think it's going to be an easy walk for the US Economy?

Print trillions of dollars to save the U.S. economy.

And that means more inflation, which means that your dollars are going to become a lot less valuable.

So European economies don't have to sell their entire portfolio to cause such a huge crisis in the United States.

While it seems like the EU has so much power over the United States, the truth never possibly do anything close to that.

So the only thing that I want to say to the European countries, including the United Kingdom's government, is that stop dreaming when you see that the uk, Belgium and Luxembourg own so much US Debt.

The only question is that why these countries own so much of US Treasuries to begin with.

The truth is that the UK government or the Belgium government or any other European government does not directly own US Treasuries.

These countries have built a business to become the mid middleman between the United States and the rest of the world.

If you want to use US Dollars as the global reserve currency to do international business, you're not going to hold a lot of US Dollars in your bank account because there is something called inflation and the dollars are substantially losing their value.

Which is why if you're a central bank or any financial institution, you are going to hold a lot of US Treasuries so that when you're not doing business with these dollars, they're consistently earning interest from the US Government whenever you need us dol instantly turn these US Treasuries into cash and do international business.

Whether it's the Saudi Arabia between Brazil or Brazil with India, or India with China.

Which is why a lot of international banks hold a lot of U.S. treasuries.

And these European countries, such as the UK, Belgium, Luxembourg are working as the middleman.

Keeping your U.S. treasuries in U.S. banks is extremely difficult because the U.S.

financial institutions are under the U.S. law and dealing with U.S. law sometimes very difficult.

Which is why these countries basically build the infrastructure that allows the rest of the world to hold U.S.

treasuries without actually directly dealing with U.S. banks.

So when you see that the UK holds like $900 billion of U.S.

treasuries, it is not that the UK government holds so much U.S. treasuries,' but rather its other countries.

It could literally be Middle Eastern rich oil countries that are owning so much US Treasuries.

In order to do international business, they simply hold them through the uk so whenever they need them, they can easily convert them into US Dollars and do international trade and trade with other countries.

The exact same logic applies to Belgium, Luxembourg.

So even if the European countries suddenly want to ditch so much of US Treasuries, they cannot possibly do that because they don't own these Treasuries to begin with.

How can you possibly sell US Treasuries if you don't own them?

European countries own about $10.4 trillion of US stocks.

So even throwing a trillion dollars of that into the market could suddenly crush all US Markets.

Unlike the US Treasuries, most of these stocks are owned by the European companies, which means that theoretically they have the power to sell so many stocks.

stocks is the Norwegian Wealth Fund that owns probably over $2 trillion.

Most of these stocks are being owned by the European pension funds.

And the European pension funds are going through very difficult times because birth rates in Europe are falling down, tax revenues are falling down.

On the other side, the number of the retirees are growing, which means that you have to maximize your returns in order to be able to pay to the retirees.

If the US Stock market is going to collapse, then you won't be able to pay to retirees, which means that there is going to be so much unrest in Europe.

Do you think there is a single politician in the entire European Union that could say to people that, you know what, we are going to crush the US Stock market, but

you're not going to get your pensions because we depend on the US Stock market to pay you your pension.

But why wouldn't they simply invest in the European markets?

Over the last 26 years, since the year 2000, the top 100 UK companies, which is the most important index in the UK stock market, has grown by 57%.

So if these European pension funds or wealth managers that manages the wealth of the European countries would have invested that money in the UK they wouldn't actually make much money.

But what about the rest of the European countries?

The index that tracks the top 600 largest European companies have grown by about 62% over the exact same period of time.

And 62% is obviously much better than the UK but it's far from enough in order for you to maximize your returns to pay off your pensions.