President Donald Trump talks to journalists from the White House Oval Office on February 3, 2025, in Washington, DC.
Jim Watson | AFP | Getty images
President Donald Trump signed an executive decree on Monday which describes the plans for a sovereign fund managed by the government to serve as an economic development tool and perhaps be used to buy Tiktok.
Among the objectives of the fund, there would be infrastructure development such as airports and highways, and this could help the United States extend its influence in areas such as Panama and Greenland.
“We are going to support this thing in the next 12 months. We will monetize the active side of the American balance sheet of the American people,” said the United States of the Treasury Scott Bessent during a media parley. “There will be a combination of liquid assets, assets that we have in this country while we work to get them out for the American people.”
There was no other details for a fund that Trump during his campaign could support “large national companies”. He said prices could help provide funding. Other nations use taxes on natural resources, financial transactions The use of carbon as a financing mechanisms.
An agreement discussed in which the United States would become a partner of the Tiktok social media platform would be potential use, Trump said. The application was briefly offline among the security problems, but Trump signed an order allowing him to return for a period of 75 days during which he will probably have to depart from Chinese interests.
Although the idea of such an American fund has been raised before, vehicles are generally used by smaller nations with large natural resources as well as budgetary surpluses to deploy – unlike the United States, which has experienced deficits massive budgets.
Nations with funds include China, Norway and Singapore. An American fund could help him compete with these countries and could make the government less dependent on the issue of the Treasury Debt to collect funds.
Norway has the largest sovereign fund, with more than $ 1.7 billion in assets, according to the Institute of the Sovereign Heritage Fund. China Investment Corp follows $ 1.3 billion.
These funds are involved in the global financial markets thanks to investments in stocks, bonds and real estate, as well as participations in infrastructure and investment capital. Critics say that a lack of transparency can lead to conflicts and corruption if there are no strict governance rules.
