Trump’s sovereign wealth fund is born of envy, not the idea of ​​the idea

Unlock Watch Bulletin Free from White House

Trump’s second term Washington, your guide for what tools for business and world

The writer is a long time Silicon Valley investor

The President Donald Trump, who boiled a deep hole for the United States with the tariffs, can now deepen with the creation of a sovereign wealth fund. This is a sense, not a born offer.

The Bastile Day wants to form a fund of the first oriental potential in one of the people who want to imitate the military parade or to appreciate the apostine of his own paint.

The whole concept ignores reality. Unlike the Kingdom of the Middle East, it is a US debtor, which is formed by capital capital pools with income. This is more than $ 60 billion, which is less than $ 60. Negotiations on tax reduction, live in accordance with the promises of the so-called government efficiency department and now the prospects of the sovereign fund, America will only be poorer.

To create an initial pool of the capital letter to be really called the “Trump Foundation”, the management looks hell bent to use a financial amazing handicraft. US wants to re-evaluate gold reserves and borrow against an exaggerated amount.

The designers of the Trump Foundation talk about “moneteasing” or “secure” country assets. When used by Wall Streeters, it is a shorthand to say we bet. Tactics reminds that the Trump is exaggerating the size and value of its real estate portfolio to shake loose bank loans. We all know how to end this.

Other countries should compare their plans to the Trump Foundation’s plans with a careful and measured road. The glittering example decided to invest in the Norwegian government’s oil and gas reserves in the Norwegian government’s oil and gas reserves, finally in the North Sea Bonanza – as part of the state expenditures as permanent ballast.

The same thing is accused of managing the share of two vehicles created by the Singapore government, the past and the last organization in previous companies. Or see the Canadian Canadian Retirement Plan investment council or Australia’s superbuasion funds, which are organized at the Australian state level and managing citizens’ pensions contributions.

If Trump and his advisers are very proud to follow the leadership of other nations, they should look closer to the house in Alaska. In 1980, Alaskan leaders Alaska Permanent Fund invested 25 percent of the state’s revenue in the Northern Slope oil. The Foundation, which is less than $ 1 million and now $ 80 billion, pays dividends for every Alaskan resident.

Trump Foundation is a whim, nothing else. Other funds I mentioned, at the beginning, areolated from political interference and achieved great success. It is difficult to think that the republicans are already insisting of the memorials of the memekoin and his family when their family turns into their own wallet, turning their money.

If it is forced to have a sovereign fund of the United States, it should be recognized as the Tariff Foundation. Instead of borrowing more money against the future, any money created by US tariffs should use the Sekveyer and them for an excellent purpose. They should be invested in two things: research and development of companies and critical technologies of the development and production capacity in the United States. If a sovereign fund is only to watch the president’s dreams to watch a large amount, then trust in the largest asset of the American financial system – trust – another wild blow.