Bert Dahvos presses: Europe's increase of troops in Greenland is "fantasy," and Denmark's investment in US debt is "irrelevant."

On January 21 local time, U.S. Treasury Secretary Besant made intensive comments at the Davos Forum on issues such as the Greenland sovereignty dispute, bond market shocks, and the independence of the Federal Reserve.

Besant explicitly warned European countries not to increase military presence in Greenland, and directly criticized France’s proposal to hold NATO military exercises. He questioned the decision by Denmark and seven other countries to symbolically deploy officers to Greenland, calling it “impractical,” and said regarding French President Macron that, with “France’s budget in chaos,” he should focus more on domestic affairs.

According to CCTV News, on January 17 local time, U.S. President Trump posted that he would impose a 10% tariff on eight European countries that opposed his acquisition of Greenland. Beginning June 1, 2026, the tariff rate will increase to 25%. He stated that this tariff measure would remain in effect until an agreement is reached for the “complete and thorough purchase of Greenland.”

Meanwhile, Besant sought to play down the impact of this matter on financial markets. He said Denmark's holdings of U.S. Treasury bonds were “insignificant,” and said he was “not at all worried” about threats from European countries regarding possible selling of U.S. debt. Trump also expressed similar confidence on Tuesday, believing the EU would not abandon its investment agreement with the U.S. because of this.

Directly Criticizes European Military Deployment in Greenland as “Fantastic”

Besant questioned the decision by Denmark and seven other NATO countries to symbolically deploy officers to Greenland, saying:

“I am not sure what the point is of these countries using their military forces. In my view, it’s simply fantastic.”

He further criticized French President Macron, stating:

“If this is the only thing President Macron wants to do, while budgets in Europe and France are in chaos, I suggest he put his energy on things that actually benefit the French people.”

This statement highlights the ongoing tension in transatlantic relations due to the Greenland issue. Trump has repeatedly reinforced his stance, demanding Denmark relinquish sovereignty over Greenland so the U.S. can take over the territory for national security reasons, even threatening tariffs on eight NATO allies, which has triggered strong dissatisfaction among European leaders and caused them to consider potential countermeasures.

Downplays Threat of European Selloff, Focuses on Spillover Risks from Japanese Bonds

Regarding market concerns over possible European sell-off of U.S. Treasuries as a countermeasure, Treasury Secretary Besant once again played it down. He made clear that Denmark’s investments in U.S. Treasuries are “insignificant,” with a scale “less than $100 million,” and added:

“They have been selling U.S. Treasuries for years, I am not worried at all.”

Previously, on Tuesday, Besant dismissed talk of Europe possibly selling off U.S. Treasuries as “false narrative,” emphasizing that such threats of major market shocks are unrealistic. Ahead of his departure to Davos, Trump also voiced similar confidence, believing the EU would continue to honor its commitments to invest in the U.S. Trump stated:

“They very much need to reach that agreement with us. They truly need it, and have worked very hard for it.”

At the same time, Besant expressed concern over the recent sharp volatility in the Japanese bond market. He noted:

“From what we’ve observed, Japanese bond prices have seen a six-standard deviation move, and this volatility is now spreading to other markets, including U.S. Treasuries. I’ve been in touch with colleagues in Japan’s economic sector, and I trust they will take measures to stabilize Japan’s markets.”

Market data shows that as major Japanese financial institutions signaled large-scale additions and politicians called for market stabilization, Japanese government bonds saw a significant rebound Wednesday: the yield on 40-year bonds fell 20 basis points to 3.99%, and the 10-year bond yield fell 5 basis points to 2.290%.

Questions Politicization of the Fed, Urges Europe to Break Trade Barriers

Regarding personnel issues at the Federal Reserve, Besant criticized Chairman Powell for “politicizing the Fed,” and expressed “uncertainty” about his support for board member Lisa Cook. The U.S. Supreme Court held a hearing today regarding Trump’s attempt to dismiss Cook.

On trade issues, Besant disclosed that there are currently no new negotiations scheduled with the UK, but he believes that Prime Minister Starmer’s government will continue to push the agreement forward. He also urged Europe to “break down internal and external trade barriers” to promote trade flows.

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