The idea of ​​Trump’s sovereign wealth fund is born of envy instead of meaning

Unlock White House Clock Bulletin Free

Your guide on what Trump’s second term for Washington, Business and the World means

The writer is a long -time silicon vessel investor

President Donald Trump, who excavated a deep hole for the United States with his rates, could now be about to make it even deeper with the creation of a background of sovereignist wealth. It is a proposal born of envy more than meaning.

The President of the United States, who has not made a secret of his desire to imitate the military parade of the Bastille Day or to make a Qatari 747 so that he can have a new aerial force that unfolds with his own painting scheme, he now wants to form a fund worthy of a potential of the Middle East.

The whole concept ignores reality. Unlike the Middle East kingdoms, capital sovereignist pools have been formed with surplus oil revenue, the United States is a debtor nation. It has less than 6 TN of assets and debts of more than 45 TN. With the talk of tax cuts, the failure of the so -called Government Department efficiency to fulfill its promises and now the perspective of a sovereign fund, America will only be poorer.

To generate the initial capital set for what should really be called “Trump’s fund”, the administration seems to be hell when using a financial hand hand. It wants to revalue US gold reserves and borrow against the swollen sum.

Trump fund designers talk about “monetization” or “trouble” of the country’s assets. These words, when used by Wall Street, are unpleasant to say that we are betting that we can do a king’s rescue over the money we lend. The tactic recalls the way Trump exaggerated the size and value of his own real estate portfolio to shake loose bank loans. We all know how this ended.

Proponents of the Trump Fund should compare their plan to the wise and measured form of other countries have organized sovereignist funds. The brilliant example is the Government pension fund of Norway Global, created in 1990 when the Norwegian government, realizing that its oil and gas reserves would be dry, decided to invest about 80 percent of the benefits of its northern sea boom in a fund, now worth 1.7 TN, which would act as a permanent balla.

The same is true of GIC and TEMASK, two vehicles established by the Government of Singapore, the first to invest foreign reserves in the country, the second, an entity, originally accused of managing participations in companies before the State. O Look how Canada manages the Investment Board of the Canada Pension Plan or the Australian Overcoming Fund, organized at the state level and also manages the contributions of citizens’ pension.

If Trump and his advisers are too proud to follow the leadership of other nations, they should look closer to home in Alaska. In 1980, Alaska leaders created the Alaska’s permanent fund to invest 25 percent of the state’s state of the North Slope Oil. Each year, the fund, which began with less than $ 1 million and now has around $ 80 million, pays a dividend to all Alaska residents.

The Trump Fund looks like a whim, nothing more. The other funds I mentioned were, in their creation, isolated against political intermediation and have been successful. It is difficult to imagine today’s Republicans, insisting on similar steps when they already look at Trump Memecoins and the insatiable appetite of their family to fatten their own purse.

If the United States is forced to have a sovereign fund, it should be known as the fare fund. Instead of further money against the future, the United States should abduct the money generated by the rates and use them for great purpose. Two things must be invested: companies that build development and manufacturing capacity in the United States and in research and development of tomorrow’s critical technologies. If, however, a sovereign fund is collected only to mollify the President’s desire, the faith in the greatest assets of the North -American Financial System – Trust – will be again wild.