How the EU Can Capitalize on America's Economic Chaos
By creating an alternative to Treasuries, the bloc could reap some of the immense financial benefits the US has long enjoyed.
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Photographer: Thomas Kienzle/AFP/Getty ImagesThe European Union’s leaders have rightly been focused on mitigating the damage that Washington’s new trade war threatens to inflict upon their economies. Yet amid the havoc, there’s an opportunity that they shouldn’t miss — one that could help them solve some pressing financial problems.
It’s hard to overstate the benefits the US has derived from its Founding Fathers’ decision, in the late 18th century, to grant its treasury the power to issue federal obligations and collect the taxes to pay them. Since then, US Treasury securities have become the haven where the world keeps its money. They form the foundation of America’s capital markets, facilitating investment in everything from infrastructure to artificial intelligence.