European leaders are considering dumping $2.34 trillion in US debt if Trump abandons Ukraine, potentially triggering an economic crisis worse than 2008
Note : this is from December 1, 2025
European nations are reportedly weighing the “nuclear option” of destabilizing the American economy should Donald Trump abandon Ukraine and compromise continental security. Discussions between American and Ukrainian representatives resumed Sunday in Miami, with both parties working to hammer out a peace agreement.
Secretary of State Marco Rubio and Trump’s Russia envoy Steve Witkoff participated in the session, alongside the President’s son-in-law Jared Kushner. After the “fragile” negotiations, the President informed journalists aboard Air Force One that there was “a good chance we can make a deal”.
Yet European leadership remains wary that Trump is hastening toward a geopolitical arrangement with Vladimir Putin while disregarding NATO allies‘ security interests.
The Wall Street Journal reveals a European intelligence agency has distributed internal evaluations regarding “commercial and economic plans” the Trump administration has been pursuing with Russia in private discussions.
This has allegedly intensified concerns among European officials that the White House is poised to compromise the continent’s safety for American economic advantage.
Insiders informed the WSJ that European leaders are weighing severe countermeasures in response, calculated to trigger economic turmoil across the United States. The proposed strategy includes liquidating trillions in American government bonds held by European governments.
A swift sell-off could potentially trigger a crash in the value of the US dollar, instigate a liquidity crisis across the banking system, and cause a significant surge in borrowing costs.
It could also plunge the American financial sector into a paralysis more severe than the 2008 crisis. A prominent European economist described the plan to the WSJ as a potential financial backlash that could hit the US harder than any external shock in modern history.
The political fallout could be catastrophic for Trump and the Republicans as the midterm elections loom next year. The EU and the UK, being among the largest holders of US Treasury securities (US debt), wield considerable potential economic leverage.
As of December 2024, the United Kingdom holds an estimated $722.7 billion in US debt.
The European Union member countries collectively hold an estimated $1.62 trillion.
Combined, this amounts to approximately $2.34 trillion, making the EU/UK bloc one of the single largest foreign holders of US debt.
It’s doubtful that anything would come of this.
But it is clear that the trumputler “peace process” for Ukraine was, is and will remain a total sham.
Btw, the Romanian report of RAF Typhoons shooting down putinaZi drones in Ukrainian airspace has been denied by the UK MOD.
Unfortunately.
“Btw, the Romanian report of RAF Typhoons shooting down putinaZi drones in Ukrainian airspace has been denied by the UK MOD.”
I thought this was almost too good to be true, and, unfortunately, my pessimism was right.
Or are the Brits afraid to admit it???
AI Overview
European investors hold a record ~$2 trillion in U.S. Treasury securities, making up about 19% of total foreign holdings. When including broader U.S. assets like corporate bonds and equities, European holdings total over $10 trillion. Collectively, European countries represent nearly 40% of all foreign U.S. Treasury holdings.
EnergyNow.com
EnergyNow.com
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Key Findings on European Holdings of U.S. Debt:
Total Treasury Holdings: EU investors own roughly $1.62 trillion to $2 trillion in U.S. Treasuries.
Total Asset Exposure: Total EU exposure (including $6 trillion in equities and $2 trillion in corporate bonds) is roughly $10 trillion.
Major Holders: The UK is a leading holder, with around $888.5 billion in federal debt as of early 2026.
Role in Market: European investors own nearly twice as many U.S. bonds and equities as the rest of the world combined.
Binance
Binance
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These holdings represent a significant financial link between Europe and the U.S., with European holdings of U.S. Treasuries increasing significantly over the past 12 months, based on Treasury data.
I’m with sir Scradgel…very doubtful. Yes America would take a hit but so would Europe and given Europe’s history of being bold and taking a hard position on anything, I just don’t see it.