Trump signs order for US Sovereign Wealth Fund

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Trump + Musk = SCAM …. guaranteed! Hell, this is even better than “trickle-down economics”. It’s magic.
 
nycfan said:


“You’ve seen that over the last two weeks we’ve created more wealth, other people have created de-wealth, the people, my predecessors, we’re creating a lot of wealth …”

Bessent: “… we’re going to monetize the asset side of the US balance sheet for the American people …”
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I thought he was going to balance the budget and pay off the national debt first?

How do we create a wealth fund considering the deficit and debt?

I guess the wealth fund's first acquisition will be trump enterprises at 100 times value.
 
Callatoroy said:
Saving is always a good thing. Why is it bad?
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You need to have money to actually save. How does this reconcile with the deficits and the debt?

Where does the money come from? After he cuts taxes will there be enough to pay our obligations?
 
I'm going to take a guess this has something to do with maybe replacing the Exchange Stabilization Fund or in addition to, as a way to enact some type of IMF reform. This whole BRICS thing is basically a carbon copy of the IMF with merely Asian characteristics. The ESF is meant to stabilize the dollar, or that is what its purpose is, but its balance sheet consists mainly of SDRs which is the IMF's fake imaginary money system. So instead of letting the IMF basically takeover the government if everything were to suddenly crash (which is kind of what Yellen was setting things up for from what I can tell, she added a lot of SDRs to the ESF) if you replace the ESF with a Sovereign Wealth Fund instead, then this would maybe set up for some type of devaluation of SDRs, because the dollar is strengthening like crazy now.

Then from there maybe the logic is once the ESF can be replaced with another mechanism to offer USD stability, the US could work towards the much bigger goal of striking a deal with Europe, China, and Russia for some type of structural reforms to global financial systems. Or at least some sort of way to pair BRICS & the IMF, which would be one way to introduce restraint on military spending going forward for the US, China and Russia if all three are forced into the same financial cosmology. There is a major risk where if we don't try to find a way to cooperate with the Russians and Chinese, we'll likely end up in a situation unfavorable for us anyway, where mainly China will dictate authority over the planet because they are moving forward with BRI whether we like it or not. We either get a seat at that table, or find ourselves locked out completely. Plus, there's a very good possibility Europe will go along with China because all these massive infrastructure projects they have planned out do flow into Europe. We at least need to demand a seat at the table to reform the global trading system to prevent the Europeans from basically being controlled by China permanently.

This might all sound very galaxy brained and Trump clearly isn't the best to communicate what is even going on, but there was a clue from the President of El Salvador, Bukele, who last month decided to take out an IMF loan, after previously holding out for like 5-6 years of doing a deal with them and instead built up a large national Bitcoin reserve to serve as their source for dollar liquidity. Very strange move unless he was made aware of a coming restructuring to the IMF which would devalue the loan values in the near future. Then, there's also Milei, who clearly is going to go along with Trump, but he could weaponize Argentina's IMF debt, who does have the most oustanding IMF debt out of any country in the world by a wide margin. Should he choose to join up with the BRICS if they approached him with a way to just wipe away that debt, well then that would have just collapsed the IMF anyway and every other country with IMF debt would have been incentivized to do the same.
 
They may try to transfer the Social Security trust fund (currently ~$1.2T) into it and then buy equities with it instead of treasuries.
 
roostra said:
That's terrifying
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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.
 
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