The U.S. has ‘escalation dominance’ in a debt war: Europe would face a violent market crash if it dumps Treasuries

President Donald Trump retreated from this threat to impose tariffs on NATO allies in response to his plan to take over Greenland, but the damage has been done, diplomatically and financially.

The dollar has continued to sink, and top investors in Northern Europe are reportedly re-evaluating their exposure to U.S. assets, while Danish pension funds have already dumped Treasury bonds.

Part of that is because of concerns over U.S. debt, but Trump’s Greenland crisis and his continued...