• Latest
  • Trending
  • All
  • Market Updates
  • Cryptocurrency
  • Blockchain
  • Investing
  • Commodities
  • Personal Finance
  • Technology
  • Business
  • Real Estate
  • Finance
Trump’s sovereign wealth fund idea is born of envy rather than sense

Trump’s sovereign wealth fund idea is born of envy rather than sense

May 7, 2025
Trump’s commerce secretary hints at Bitcoin-only strategic reserve

Only a handful of Bitcoin treasury companies will survive: Report

June 28, 2025
Google is rolling out its AI-powered ‘Ask Photos’ search again – and it has a speed boost

Google is rolling out its AI-powered ‘Ask Photos’ search again – and it has a speed boost

June 28, 2025
Where Will Nvidia Stock Be in 10 Years?

Where Will Nvidia Stock Be in 10 Years?

June 28, 2025
Carney says he has not spoken with Trump today

Carney says he has not spoken with Trump today

June 28, 2025
How Epstein sealed Staley’s ‘inevitable’ downfall

How Epstein sealed Staley’s ‘inevitable’ downfall

June 28, 2025
Set out your investment goals before choosing an online platform

Set out your investment goals before choosing an online platform

June 28, 2025

Newsquawk Week Ahead: US NFP, ISMs, EZ CPI, Japanese Tankan, China PMIs and Swiss CPI

June 28, 2025
Bitcoin: How Strategy’s S&P 500 move will push BTC even higher

Bitcoin: How Strategy’s S&P 500 move will push BTC even higher

June 28, 2025
Debt is a ‘growing force’ influencing jobseekers’ choices, expert says

Debt is a ‘growing force’ influencing jobseekers’ choices, expert says

June 28, 2025
Why I’ll Never Manage Money for Anyone for Free Again

Why I’ll Never Manage Money for Anyone for Free Again

June 28, 2025
Emerging Economies Have Sparked Crypto’s Most Important Retail Revolution Yet.

Emerging Economies Have Sparked Crypto’s Most Important Retail Revolution Yet.

June 28, 2025
US multinationals on track for minimum tax reprieve after G7 deal

US multinationals on track for minimum tax reprieve after G7 deal

June 28, 2025
Saturday, June 28, 2025
No Result
View All Result
InvestorNewsToday.com
  • Home
  • Market
  • Business
  • Finance
  • Investing
  • Real Estate
  • Commodities
  • Crypto
  • Blockchain
  • Personal Finance
  • Tech
InvestorNewsToday.com
No Result
View All Result
Home Investing

Trump’s sovereign wealth fund idea is born of envy rather than sense

by Investor News Today
May 7, 2025
in Investing
0
Trump’s sovereign wealth fund idea is born of envy rather than sense
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


Unlock the White Home Watch e-newsletter free of charge

Your information to what Trump’s second time period means for Washington, enterprise and the world

The author is a longtime Silicon Valley investor

President Donald Trump, who dug a deep gap for the US together with his tariffs, might now be about to make it even deeper with the creation of a sovereign wealth fund. It’s a proposal born of envy fairly than sense. 

The US president, who has made no secret of his need to imitate the Bastille Day army parade or of sprucing up a Qatari 747 in order that he can have a brand new Airforce One decked out together with his personal paint scheme, now desires to type a fund worthy of a Center Japanese potentate. 

Your entire idea ignores actuality. In contrast to the Center Japanese kingdoms, whose sovereign swimming pools of capital have been fashioned with surplus oil income, the US is a debtor nation. It has lower than $6tn of property and money owed of over $45tn. With the discuss of tax cuts, the failure of the so-called Division of Authorities Effectivity to dwell as much as its guarantees and now the prospect of a sovereign fund, America will solely get poorer.

To generate the preliminary pool of capital for what ought to actually be known as the “Trump Fund”, the administration appears hell-bent on using a monetary sleight of hand. It desires to revalue US gold reserves and borrow towards the inflated sum. 

The designers of the Trump Fund discuss “monetising” or “securitising” the nation’s property. These phrases, when utilized by Wall Streeters, are shorthand for saying we’re betting we will make a king’s ransom on cash we borrow. The tactic is paying homage to the way in which through which Trump exaggerated the dimensions and worth of his personal actual property portfolio to shake free financial institution loans. Everyone knows how that ended. 

The proponents of the Trump Fund ought to examine their plan with the prudent and measured approach different nations have organised sovereign funds. The shining instance is Norway’s Authorities Pension Fund World, created in 1990 when the Norwegian authorities, realising that its oil and fuel reserves would finally run dry, determined to speculate near 80 per cent of earnings from its North Sea bonanza in a fund — now price round $1.7tn — that will act as everlasting ballast for a portion of state spending.

The identical goes for GIC and Temasek, two automobiles established by the federal government of Singapore, the previous investing the nation’s international reserves, the latter an entity initially charged with managing stakes in corporations beforehand owned by the state. Or take a look at how Canada runs the Canada Pension Plan Funding Board or Australia’s superannuation funds, that are organised on the state stage and likewise handle residents’ pension contributions.

If Trump and his advisers are too proud to observe the lead of different nations, then they need to look nearer to residence, at Alaska. In 1980, Alaskan leaders created the Alaska Everlasting Fund to speculate 25 per cent of the state’s income from North Slope oil. Every year the fund, which started with lower than $1mn and now has round $80bn of property, pays out a dividend to each Alaskan resident.

The Trump Fund appears a whim, nothing extra. The opposite funds I’ve talked about had been, at inception, insulated towards political meddling and have largely succeeded. It’s onerous to think about at this time’s Republicans insisting on comparable guardrails after they already flip a blind eye to Trump memecoins and his household’s insatiable urge for food for fattening its personal purse.

If the US is compelled to have a sovereign fund, it must be often called the Tariff Fund. As an alternative of borrowing but extra money towards the longer term, the US ought to sequester any cash generated by tariffs and make use of these with nice function. They need to be invested in two issues: corporations that construct improvement and manufacturing capability within the US and in analysis and improvement of tomorrow’s crucial applied sciences. If, nonetheless, a sovereign fund is concocted simply to mollify the fancies of the president, then religion within the American monetary system’s best asset — belief — will probably be dealt one other savage blow.



Source link

Tags: BornEnvyFundIdeasensesovereignTrumpswealth
Share196Tweet123
Previous Post

Crude oil inventories draw -2.032M versus an estimate -0.833M draw

Next Post

Datadog price target lowered to $136 from $162 at BTIG

Investor News Today

Investor News Today

Next Post
Datadog price target lowered to $136 from $162 at BTIG

Datadog price target lowered to $136 from $162 at BTIG

  • Trending
  • Comments
  • Latest
Equinor scales back renewables push 7 years after ditching ‘oil’ from its name

Equinor scales back renewables push 7 years after ditching ‘oil’ from its name

February 5, 2025
Niels Troost has a staggering story to tell about how he got sanctioned

Niels Troost has a staggering story to tell about how he got sanctioned

December 14, 2024
Best High-Yield Savings Accounts & Rates for January 2025

Best High-Yield Savings Accounts & Rates for January 2025

January 3, 2025
Suleiman Levels limited V 3.00 Update and Offer – Analytics & Forecasts – 5 January 2025

Suleiman Levels limited V 3.00 Update and Offer – Analytics & Forecasts – 5 January 2025

January 5, 2025
Why America’s economy is soaring ahead of its rivals

Why America’s economy is soaring ahead of its rivals

0
Dollar climbs after Donald Trump’s Brics tariff threat and French political woes

Dollar climbs after Donald Trump’s Brics tariff threat and French political woes

0
Nato chief Mark Rutte’s warning to Trump

Nato chief Mark Rutte’s warning to Trump

0
Top Federal Reserve official warns progress on taming US inflation ‘may be stalling’

Top Federal Reserve official warns progress on taming US inflation ‘may be stalling’

0
Trump’s commerce secretary hints at Bitcoin-only strategic reserve

Only a handful of Bitcoin treasury companies will survive: Report

June 28, 2025
Google is rolling out its AI-powered ‘Ask Photos’ search again – and it has a speed boost

Google is rolling out its AI-powered ‘Ask Photos’ search again – and it has a speed boost

June 28, 2025
Where Will Nvidia Stock Be in 10 Years?

Where Will Nvidia Stock Be in 10 Years?

June 28, 2025
Carney says he has not spoken with Trump today

Carney says he has not spoken with Trump today

June 28, 2025

Live Prices

© 2024 Investor News Today

No Result
View All Result
  • Home
  • Market
  • Business
  • Finance
  • Investing
  • Real Estate
  • Commodities
  • Crypto
  • Blockchain
  • Personal Finance
  • Tech

© 2024 Investor News Today