Trump signs order for US Sovereign Wealth Fund

[Huh?]

Saving is always a good thing. Why is it bad?

1. Traditional conservatism dictates that it's our money, not the government's. Instead of a sovereign wealth fund, the proceeds should either be applied against the debt (not the deficit) or returned to the taxpayers. Private investment is more efficient than public investment.

2. The sheer size of a US sovereign wealth fund - if, for example, it included the SS Trust Fund - would compromise overall market efficiency, making such markets more volatile.

3. Sovereign wealth funds are notoriously inefficient and corrupt. They are incompatible with democracies, if we still have one.

 

[1moretimeagain]

Saving is always a good thing. Why is it bad?

You want to send the government money to invest in their sovereign wealth fund?

 

[mpaer]

You want to send the government money to invest in their sovereign wealth fund?

Only if orangeturd and DOGE run it

 

[altmin]

The theory would be that if the fund was getting a market return rate rather than the treasuries rate, it would last longer (or might never exhaust) than the current projected exhaustion in 2030-2035ish. The risk, obviously, would be a market downturn when the funds are required to be paid out and the risk that the trust fund gets comingled into a slush fund and the assets are diverted from being paid out as SS benefits.

I am sure there won't be a market downturn when hundreds of thousands of federal employees are out of work, not to mention hundreds of thousands more whose work is based on federal contracts, and then the jobs that support those, and parents who need to quit because their day care shut down, and tariffs are popping off left and right, and measles/polio rampages through private equity run kindergartens, and ......

 

[mpaer]

I am sure there won't be a market downturn when hundreds of thousands of federal employees are out of work, not to mention hundreds of thousands more whose work is based on federal contracts, and then the jobs that support those, and tariffs are popping off left and right and...

Durham and Orange county NC alone have like 1.3 billion in NIH funding at their Universities

 

[Kraftyheel89]

So the board views this as a bad thing? Is that correct?

The board views this with extreme skepticism coming from a con fraud businessman, who cooked his books and had his CFO at Trump Org sent to jail for it.

Where will the funds come from since there are no surplusses, and Trump will make it even worse with further tax cuts for super wealthy and the corporate tax rate.

If he does do some corrupt shifty accounting tricks (as he has always done) what corrupt ends are the intentions behind this scam.

We don't even need to ask how he will fool the ignorant MAGA masses. It will be just like always with the full support of the white nationalist fake christian Fox News lying scoundrels.

 

[OGtruthhurts]

dont forget about trump charities

no doubt about this i must side with the blue sheep on this one dump and his dump squad is goin to rob us blind and leave the white house uber mega wealthy

 

[superrific]

The theory would be that if the fund was getting a market return rate rather than the treasuries rate, it would last longer (or might never exhaust) than the current projected exhaustion in 2030-2035ish. The risk, obviously, would be a market downturn when the funds are required to be paid out and the risk that the trust fund gets comingled into a slush fund and the assets are diverted from being paid out as SS benefits.

The other "risk" -- not really a risk since it has to happen -- is that the government would then have to sell that much more debt. So we will have to pay higher interest rates on all of the federal debt, and it's possible those higher rates would also permeate private debt markets.

This whole "let's invest public money in the stock market" idea has been pushed for three decades by people who 1) don't understand how finance works at a scope larger than an individual stock account; or 2) do understand that but want to fleece the taxpayer.