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[Zmeselo]

EUROPE JUST THREATENED TO DETONATE THE GLOBAL FINANCIAL SYSTEM

European officials are quietly discussing the unthinkable: dumping $2.3 trillion in US Treasury holdings if Trump cuts a Ukraine deal without them.

This is not diplomacy. This is mutually assured financial destruction.

The numbers are staggering.

The EU and UK combined hold more US debt than China. Enough to spike 10-year yields by 200 basis points overnight. Enough to freeze the American housing market. Enough to push federal interest payments past $1.5 trillion annually.

But here is what no one is telling you.

Europe cannot pull this trigger without shooting itself first.

European banks are structurally short dollars. They use Treasuries as collateral to access dollar funding markets. Dump the collateral, and the entire European banking system faces a liquidity crisis within 72 hours.

The ECB cannot print dollars. They would need Federal Reserve swap lines. In the middle of a financial war, one phone call from Washington ends that lifeline.

This is the trap.

Trump’s 28-point Ukraine plan hands Putin territorial gains while sidelining Brussels entirely. Europe’s only leverage is the $2.3 trillion they hold in American debt. But using it destroys the user.

The real battlefield is not Ukraine. It is the €210 billion in frozen Russian assets Europe controls. Washington wants those funds preserved for a peace deal. Europe wants them deployed as leverage.

Watch the Treasury International Capital data in Q1 2026. Any foreign holdings shift exceeding 5% quarter over quarter confirms the threat is moving from bluff to action.

The 80-year transatlantic financial compact, where Europe recycled dollars into Treasury purchases in exchange for American security guarantees, is being renegotiated in real time.

The old world is not ending with a bang.

It is ending with a bond auction.

[Zmeselo]

....Foolish Kallas is continuing talking nonsense in nonstop regime. The record is stuck.