This isn't diplomacy — it's financial mutually assured destruction.

The numbers are brutal.
The EU + UK hold more U.S. debt than China. A mass sell-off could:
• Spike 10-year yields by 200 bps
• Freeze the U.S. housing market
• Push federal interest payments above $1.5T

But here's the truth: Europe can't fire this weapon without blowing itself up.

European banks rely on Treasuries as dollar collateral. Dump them, and Europe faces a dollar liquidity crisis in 72 hours.
The ECB cannot print dollars. They depend on Fed swap lines — which Washington can cut instantly in a crisis.

That's the trap.

Trump's Ukraine plan sidelines Brussels and hands Moscow gains. Europe's only leverage is its Treasury holdings — but using them is self-destruction.

The real fight isn't Ukraine.
It's the €210B in frozen Russian assets Europe controls and Washington wants preserved.

Watch TIC flows in Q1 2026. A 5%+ foreign holdings shift means the bluff is turning real.

The 80-year transatlantic financial pact isn't ending with tanks.