President Trump is continuing the cascade of presidential actions, kicking off the third week on the job with a big one:
Okay, so the obvious question:
What exactly is a Sovereign Wealth Fund?
Essentially, this would be a way for the United States government to invest money in real financial assets to build wealth the same way you can in your own private investments.
Multiple US States have similar plans, along with dozens of countries including China, Russia, UAE, Norway, Italy, and Mexico.
The Abu Dhabi Investment Authority and the Norwegian Oil Fund, take a portion of profits and use them to invest in precious metals, stocks, bonds, and real estate. As the funds in those investments grow, the nation can withdraw some of the gains to fund public projects.
And first up on the purchase list?
U.S. President Donald Trump signed an executive order on Monday ordering the U.S. Treasury and Commerce Departments to create a sovereign wealth fund and said it may purchase TikTok.
With a few ready, willing, and able buyers for TikTok, President Trump appears to be attempting to find a way for America to purchase the app that is currently owned by a CCP-aligned Chinese firm.
It's not all about TikTok, obviously. This is an enormous change in how tax money (especially tariffs) are spent in the United States. Right now, the government forces its own citizens, on penalty of jail, to pay a significant portion of their income so that the government can spend it. The government then spends the money on wild projects in foreign countries that enrich politicians ... while driving up the national debt annually.
This order shifts everything from that Sheriff-of-Nottingham model to one that gets money from imports and then invests that money so it can strategically fund projects in the national interest. Americans will still pay taxes in the form of higher prices at the store, but the federal government's revenue will be based on trade and invested for future use.
Here's Trump during the campaign explaining the plan:
We'll put tremendous amounts of money, through all this money that will be taken in through tariffs and other intelligent things, and we'll have the greatest Sovereign Wealth Fund of them all.
And that will be used to do things that will be great for our country, including to invest ... we will build extraordinary national development projects and everything from highways, to airports, to transportation infrastructure. All of the future.
"Tax and spend" is coming to an end. Now we are turning to "tariff and invest"!
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