When he was the latest collapse, President Trump mourned the lack of a US-supported investment fund and promised to create one.
“There are asset funds in other countries,” he said. “We have nothing to do.”
Monday, he took the first step. He issued a Executive order It has announced the plan of investment vehicles or sovereign assets fund, which the US government will fund.
The sovereign asset fund is a separate state or government -owned investment fund that is usually made from budget surplus or earned from earning oil or other products. These funds can indirectly fund the domestic industry as well as other investments.
The order called on Treasury Secretary, Scott Basent and Commerce Secretary Howard Lutnik to report a plan within 90 days. At a press conference on Monday, Mr Besent said that the government would make the fund within the next 12 months.
The President and his associates can only take their plans. The Congress may need a law to establish a sovereign resource fund that taxpayer will use dollars or other government funds.
It is not clear that the US government will make money to enter it exactly. Although many other countries operate the funds that are invested domestic and internationally, many of them, especially those in the Middle East, earn significant income for investing from natural resources like oil or gas. Other countries, including Singapore, use their budget surplus.
In contrast, the US government has no significant natural resources earning and Been operating Under the annual budget deficit for more than two decades. Despite the announcement of the tariff in recent days, Mr. Trump, Mr. Besent or Mr Lutnik did not mention the meaning of this tariff as the source of the money.
During a lecture from the Economic Club in New York in September, Mr. Trump pointed to “to be taken by money” with other intelligent issues.
A Fact sheet With the order, Mr. Trump’s party cited $ 5.7 trillion dollars with the Federal Government and added that the government was more “by” indirectly conservation of natural resources “.
According to the Treasury Department’s website, as 2023 Was the government $ 5.3 Trillion. Of these, the United States was about $ 922.2 billion cash, mostly used to conduct its activities. It holds $ 423 billion in the so -called inventory, most of which is from the defense department, which contains tools such as products or ammunition and strategic missiles. It has $ 1.7 trillion dollars in outstanding loans, such as the Department of Education and the Department of Minor Business Administration and $ 1.2 trillion assets such as land, buildings, structures, facilities and software.
It is not clear how this trillion dollar can flow into a sovereign resource fund. The US government has depended on a larger amount of money taken by Orrow and is likely to launch a budget deficit in the future.
Mr. Lutnik assumed that the government could Take the rope in the tick Or did it work with private companies. He has quoted for official funds Covid -19 vaccines As examples. “If we are going to buy two billion covid vaccines, these companies should have some warrants and some equity,” Mr Lutnik said.
There is Fund of more than 100 sovereign resources More than $ 10 trillion worth of dollars around the world with a combined asset. According to the Sovereign Resources Fund Institute, at least 5 sovereign funds have been created since the 21st.
Saudi Arabia’s Funds, Public Investment Funds, are more active in recent years and high-profile funds. It has splashed a splash by investing $ 40 billion in the Softbank Vision Fund that then paid money to the technology start-ups around the world, including the hassle real estate company Week.
PIF, as it knows, D It had about 925 billion dollars under management.
On Monday, Mr Trump points to the PIF, “Saudi Arabia Fund is on the big side, but in the end we will catch it.”
