Posted on 02/03/2025 2:32:11 PM PST by Miami Rebel
President Donald Trump on Monday signed an executive order that outlines plans for a government-run sovereign wealth fund to serve as an economic development tool and perhaps be used to buy TikTok.
Among the aims for the fund would be developing infrastructure such as airports and highways, and it could help the U.S. extend its influence in areas such as Panama and Greenland.
“We’re going to stand this thing up within the next 12 months. We’re going to monetize the asset side of the U.S. balance sheet for the American people,” U.S. Treasury Secretary Scott Bessent said during a media parley. “There’ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people.”
There were no other details for a fund Trump said during his campaign could back “great national endeavors.” He has said tariffs could help provide funding. Other nations use taxes on natural resources, financial transactions and carbon use as funding mechanisms.
A discussed deal in which the U.S. would become a partner in social media platform TikTok would be one potential use, Trump said. The app was taken offline briefly amid security concerns, but Trump signed an order allowing it back for a 75-day period during which it likely will have to divest itself of Chinese interests.
Though the idea of such a U.S. fund has been brought up before, the vehicles are generally used by smaller nations with vast natural resources as well as fiscal surpluses to deploy — unlike the U.S., which has been running massive budget deficits.
Nations with the funds include China, Norway and Singapore. A U.S. fund could help it compete with those countries and might make the government less dependent on issuing Treasury debt to raise money.
Norway has the largest sovereign wealth fund, with more than $1.7 trillion in assets, according to the Sovereign Wealth Fund Institute. The China Investment Corp follows with $1.3 trillion.
These funds are involved in global financial markets through investments in stocks, bonds and real estate, along with stakes in infrastructure and private equity. Critics say a lack of transparency can lead to conflicts and corruption if there are not strict governance rules.
I do NOT want the federal government picking which businesses should succeed, much less which businesses that taxpayers should invest in. And I don't want the feds using BORROWED capital to "invest."
If this idea originated out of the Dems, there would be a tidal wave of backlash, and rightfully so.
Feel free to weigh in, but as a capitalist I find this repulsive.
Yes, not a good idea. Just imagine Trump sets it up, buys TikTok, and it generally does great for four years and the fund controls a trillion dollars of business in the US Economy... and then Gavin Newsom is elected and is in charge of it.
For the intentions you are thinking, I agree. It’s Trump, there are bigger things that this will tie back to. We’ll have to wait and see.
Here an idea
Instead of going into your daily knee jerk whine mode about anything Trump does, try finding out the details for once BEFORE you post
DeSantis lost, get over it finally
Lol it has nothing at all to do with being “A Capitalist”
Your “capitalist” business is supplied with water, sewer, roads bridges and other infrastructure by Government.
There zero principals involved here. This is just your daily whine at Trump because DeSantis lost the 2024 primary
We don’t need a government-run hedge fund. Trump must rein in his love of the deal, or at least channel it into politics and diplomacy.
Love everything he is doing. But US Government owned TikTok is a horrifying idea.
TIC TOK TRUMP ?
Kinda same thing happened with the Patriot Act.
Okay, Dubya was a "good guy" (I'm not talking about the Iraq War).
What should have happened was that the Patriot Act should have expired at the end of his presidency.
“Your “capitalist” business is supplied with water, sewer, roads bridges and other infrastructure by Government.”
That literally is the spurious direct concept outlined by Elizabeth Warren. Congrats.
Your “capitalist” business is supplied with water, sewer, roads bridges and other infrastructure by Government.
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It sure sounds like you’re recycling Hillary’s “It Takes a Village” shtick.
Immediately below I attributed it to H. Clinton, but we can stipulate that they both promoted the idea of benevolent socialism!
Feel free to weigh in, but as a capitalist I find this repulsive.
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There is an economic model/state where the state doesn’t own the means of production, but it decides who the providers are going to be.
I dare not state its name on this forum.
The some total of your postings is finding something to whine at Trump about daily. Spare us the bombastic posturing about “principals”. You obviously have none beyond mindless Trump hate
Thanks for your eloquent defense of managed economics.
Agreed. The less government is involved the better.
Critics say a lack of transparency can lead to conflicts and corruption if there are not strict governance rules.
........
I suspect some of these critics cheered Twitter and their govt partners deplatforming the current President.
Love how they use transparency and corruption and not strict governance as their concerns.
Almost like they have been in a coma for the last 9+ years
Lol! You saved me the trouble.
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