Economists warn the impact could be more severe than the 2008 financial crash, EU may dump US treasuries

Europe Might Leave America Hanging By Dumping $2.34 Trillion In U.S. Debt If Trump Sells Out Ukraine.

European governments are quietly debating an extraordinary economic countermeasure as fears grow that US president Donald Trump may strike a deal with Russia that sidelines Ukraine and threatens continental security. According to internal assessments shared within Europe, officials are considering a drastic response: dumping vast holdings of US government debt to destabilize the American economy if Washington abandons its commitments to Ukraine.

The discussions come as American and Ukrainian representatives met on November 30 in Miami to continue working toward a potential peace agreement, as per a report. Secretary of State Marco Rubio, Trump’s Russia envoy Steve Witkoff, and the President’s son-in-law Jared Kushner participated in the negotiations, as per The Express report. After what was described as a “fragile” session, Trump told reporters aboard Air Force One that there was “a good chance we can make a deal.”

But European leaders remain deeply uneasy, wary that Trump may be moving toward a geopolitical arrangement with Vladimir Putin that ignores NATO allies’ security interests. According to officials who spoke to the WSJ, European leadership has begun weighing what some describe as a “nuclear option”: the mass liquidation of US Treasury securities held by European governments.

https://economictimes.indiatimes.com/news/international/us/is-europe-ready-to-pull-the-trigger-officials-whisper-about-dumping-us-treasuries-if-trump-cuts-ukraine-deal/articleshow/125871003.cms?from=mdr