Posted on 02/13/2025 4:32:07 AM PST by EBH
TIMECODES 00:00 Trump signs executive order for a U.S. sovereign wealth fund
00:32 The risks of a government-controlled investment fund
01:07 How sovereign wealth funds breed fraud and corruption
02:37 Why politicians have no skin in the game with public funds
03:24 The dangers of unlimited government-controlled capital
05:24 Historical lessons from the Mississippi Bubble
07:00 Could the U.S. sovereign wealth fund trigger hyperinflation?
08:48 The potential benefits of a sovereign wealth fund
10:05 The role of U.S. gold reserves in funding the program
12:14 Challenges in funding and implementing the sovereign wealth fund
13:17 Political greed and the risk of mismanagement
13:49 The final cost: Who really pays for this?
14:11 Should the government control wealth, or should you?
My concern is point 13:17. If the current corruption we are uncovering and witnessing is any indication should we or how would we demand what regulations to prevent it going forward with a Sovereign Wealth Fund?
This could also add light onto what the DOGE team and Trump is trying to do. As Joe Brown explains, right now we are NOT in a position to create such a fund.
And as a conservative...I am just not fully onboard with this idea, because I simply don't trust the overall government at this point.
Lastly, Joe Brown, only considers the gold and not the other assets of the United States like oil, minerals, land etc. The conservative question is do we want the government basically monetizing those assets?
Lastly, Joe Brown, only considers the gold and not the other assets of the United States like oil, minerals, land etc. The conservative question is do we want the government basically monetizing those assets?
Something has value up to what someone is willing to pay for it. I guess I don't understand "monetizing those assets." Can you pls explain?
I've heard it stated that gold has 'intrinsic' value. But I still think the rule applies that an item is worth only what someone is willing to pay for it.
Cheers, 'Pod
I oppose it simply because it will be corrupted and used both to give bribes and kick backs and because it will eventually be used to control legitimate companies.
It’s like how black rock used 401k money to push DEI.
I’ve often wondered why with the vast quantities of resources (Land, Oil, Minerals) that a profit share is not built to pay back those Americans who pay Income taxes?
In my simple mind it is similar to Alaska, and their Oil program to citizens. Why could something more large scale occur? It would help motivate citizens reluctant to do it.
I think the inteinsic value lies in its physical use; it can be made into jewelry, and many things for which there is an actual demand, though that value certainly fluctuates; unlike paper currency, whose only value as a physical commodity might be to burn for fuel or to insulate your walls
Basically, if I understand the Mississippi Bubble correctly it means the government uses those assets to issue currency which is what happened in the Mississippi Bubble. Which happen in any singular asset based system that fails to generate more of that asset or value. For example right now there appears to be an problem with the 'paper gold' in that there is not enough actual gold to back up the paper. Which many have said for a while now, if you don't hold it, you don't own it. So right now we have assets in oil, claimed to be greatest oil deposits in the world. If those deposits are brought into the wealth fund of the United States how does that work? Will the government be investing in contracts to extract the oil to sell? And those profits go into the wealth fund for the benefit of the American people. How would one stop the greed of politicians/kickbacks/fraud?
Can you elaborate on the Alaska program for those not familiar?
We are the only major country without a sovereign wealth fund. Ironically we are the country with the most sovereign wealth.
Not doing something because it can be abused is a lame excuse akin to “why bother”.
As for fund companies like Blackrock, Vanguard and Fidelity who control the boards of many major companies, this can be a major counterbalance to their extreme partisanship and aversion to their fidiciary responsibilities.
The US could eliminate its debt, save Social Security and essentially live off its sovereign wealth if used properly.
There’s a lot of questions but I think it’s a long overdue idea. Why not let the citizens of the US enjoy its vast untapped wealth.
I have federal leases in NM to develop oil. We pay the government a royalty on the leases just like if it was private land. This money is promptly consumed and wasted by the government just like all revenue it receives.
So, to answer your question, the government does get that royalty money and promptly catches it on fire.
To add to it, since Obama, the BLM (bureau of land management) is a cesspool of corruption and actively interferes with development simply because it is hostile to oil and gas. A simple flow line from a well that, in Texas, is a matter of laying out a poly line in about an hour and a couple grand takes months and fees and inspections.
All while mineral miners connected to the right people in the Democrat party can turn land into the moon forever contaminated with heavy metals.
Since one of the first uses of this fund as stated by Trump was to purchase a private company, I say no. That is 100% the definition of socialism. Even if Trump doesn’t end up purchasing private companies, the next dem president would.
1. Anyone who thinks the U.S. government should be in the business of managing investments after seeing the idiocy from the last administration in terms of DEI and ESG elements of fiduciary duties is a moron.
2. Anyone who thinks the U.S. government has any intention of eliminating its debt, saving Social Security, and living off its sovereign wealth is a moron.
3. This country was founded by men who had a total distrust in this kind of government power and would have found the idea of a “sovereign wealth fund” completely repulsive.
You mention land.
Like the Gaza strip?
Or that land that’s around DC that will be high rent but very low occupancy soon if draining the swamp and obliterating the deep state really happens.
Would all that qualify within the Sovereign Wealth Fund?
Sovereign Wealth Fund is a horrendous idea. The greater the share of wealth in Government hands the worse for freedom. The greater the share and dispersal of wealth in private hands, the more freedom and liberty. I didn’t vote for Communism.
Appropos to your item 2: Politicians used to regale us with stories of how those payroll taxes we’ve all paid are kept safe in the Social Security “Lock Box”, ready pay benefits forever. That sounds we already have one heck of a Sovereign Wealth Fund, just not invested in anything productive. Oops, it’s been looted to pay for current operations and all that’s left is an IOU.
We do have $35 trillion in Sovereign Debt. Trump needs to focus on paying that off.
Well, Trump keeps saying...WE will own it, in regards to Gaza.
While he is doing a lot of good things, maybe we need to watch what the other hand is doing?
In this remake of our government, WE the People have the responsibility to be sure they stay in the guardrails of the Constitution. Trump is going to do a lot of good, but he is going to make a few mistakes along the way too.
A sovereign wealth fund is monies which by their origin belong to the people, and therefor if not to be spent on necessary government operations should be returned to the people, not held in what will be a politically managed “investment fund” which will inherently become a tool in a government industrial policy. It should not have any place in the United States.
I would go further. I would not allow any foreign Sovereign Wealth Fund into the U.S. domestic economic space in any form, including any form of financial transaction through U.S. hosted means, like our investment exchanges and banks.
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