Economists Uncut

Trump Signs Executive Order for a US Sovereign Wealth Fund (Uncut) 02-04-2025

Trump Signs Executive Order for a US Sovereign Wealth Fund — TikTok? Bitcoin?

President Trump has signed an executive order regarding a sovereign wealth fund for the United States of America. And with this sovereign wealth fund, President Trump is suggesting that the U.S. government buys TikTok as an investment. The idea of Bitcoin is also being floated out there.

 

So first, I mean, we’re going to get into all that, but first I want to show you what happens. And then I need to explain the situation because there seems to be a lot of confusion. But first, let’s start with this.

 

Next, this is an executive order. This charges your Secretary of the Treasury, Scott Besson, and your Secretary of Commerce, Howard Lutnick, to begin a process that will hopefully result in the creation of an American sovereign wealth fund. It’s a very exciting event.

 

We’re going to have a sovereign wealth fund, which we’ve never had. We have a lot of things that create wealth, and you’ve seen that over the last two weeks. I think we’ve created more wealth.

 

Other people have created de-wealth, the people, my predecessors. We’re creating a lot of wealth. Now, let’s answer this question.

 

So the United States of America may create a sovereign wealth fund, but what is a sovereign wealth fund? So I’m going to let Treasury Secretary Scott Besson explain it. What is a sovereign wealth fund? But don’t worry, if you don’t understand his explanation, then I’ll clarify what he says. Scott, maybe you’d like to say something about it.

 

And I’d ask also Howard to say something about it. Yes, sir. This is very exciting.

 

We’re going to stand this thing up. Within the next 12 months, we are going to monetize the asset side of the U.S. balance sheet for the American people. We are going to put the assets to work.

 

And I think it’s going to be very exciting. We’re going to study best practices that’s done around the world. It’ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people.

 

Okay. So if that wasn’t clear to you, then I want to give you my explanation to clarify it. So if the United States of America creates a sovereign wealth fund, that basically means that the U.S. government is creating their own investment accounts or investment funds.

 

So that’s it. The U.S. government makes investments. So President Trump is saying that one of the first investments that he wants to do with the sovereign wealth fund is invest or buy TikTok.

 

So please take a look. And as an example, TikTok, we’re going to be doing something perhaps with TikTok and perhaps not. If we make the right deal, we’ll do it.

 

Otherwise, we won’t. But I have the right to do that. And we might put that in the sovereign wealth fund, whatever we make, or if we do a partnership with very wealthy people, a lot of options, but we could put that as an example in the fund.

 

And we have a lot of other things that we could put in the fund. And I think in a short period of time, we’d have one of the biggest funds. And some of them are pretty large, I must tell you.

 

Now, could it be possible that Bitcoin be added to the U.S. sovereign wealth fund? Okay. So I’ll tell you this. If this U.S. sovereign wealth fund were to materialize, then honestly, I wouldn’t be surprised if Bitcoin were to be added to the fund.

 

Because as you know, President Trump has said that he wants to make the United States of America the crypto capital of the world. But I want to be very open with you. I’m not saying that this is guaranteed to happen, because there are a lot of unanswered questions.

 

One big question is, where’s the money going to come from to fund the sovereign wealth fund? Because normally, sovereign wealth funds are financed by a government budget surplus or trade surplus, which is not the case with the United States of America. So as a matter of fact, the federal government needs to borrow money to pay their expenses because they spend more money than they make and consistently. However, so yes, the federal government does have preexisting assets that they could place into the fund.

 

So that’s always an option. Now, I want to clarify this. This is extremely important.

 

I think this is where a lot of the confusion is coming from and people are misunderstanding. So Trump’s executive order does not guarantee that the sovereign wealth fund will be created. So you heard the video clip yourself.

 

The executive order is to begin a process that will hopefully result in a creation of an American sovereign wealth fund. It’s not guaranteed because Congress needs to approve this. And if you want to confirm what I’m saying, you can check it for yourself, but I’ll save you the trouble and I’ll show you right here.

 

So you just go to the White House’s website. Okay, so here it is. And let me show you.

 

The executive order directs the secretary of the treasury and the secretary of commerce to deliver a plan within 90 days for the creation of a sovereign wealth fund. So the executive order does not create a sovereign wealth fund. Rather, the order is to deliver a plan to create a sovereign wealth fund.

 

So maybe it’ll happen. Maybe it won’t. But I’m sure that Trump is going to try, right? Regardless, Congress has to approve this.

 

Congress has to vote on it. If this is presented to Congress, would they approve it? I mean, that’s a good question. It’s too early to tell.

 

Nobody knows. There’s rumors of bipartisan support, but those are just rumors. But then you also have to think of the concept.

 

Are the politicians willing to let go of this power? Because the politicians are the ones that like to approve or deny federal spending. Now, I want to share with you a few fun facts for you to know. So the Biden administration was looking into establishing a sovereign wealth fund for the US.

 

Proposals were crafted, but nothing came about it. So this is not a new idea. However, Trump is clearly making progress on this and taking it to the next level.

 

And here’s another fun fact. So there are 23 states in the US that have their own state sovereign wealth fund. Most of these states are Republican.

 

Texas even has two of them. So largest state sovereign wealth fund belongs to Alaska. So some of these funds are used for education systems and state government operations.

 

These funds help to cover expenses, which is why some states don’t have a state income tax. So North Dakota, so I’ll give you this example, they deposit 30% of their oil and gas taxes into their fund on a monthly basis. And they can draw on this fund to help finance projects or provide tax relief.

 

And just so you know, there are many sovereign wealth funds around the world. So here are the top 10. Norway has the biggest at $1.7 trillion.

 

China has the second largest at $1.3 trillion. Saudi Arabia, Abu Dhabi, Kuwait and Singapore, they have around a trillion each. And take a look at this.

 

So Norway’s sovereign wealth fund, which is the largest in the world, had a 13% rate of return for the past year. Their fund made a $222 billion profit for the year because their investments in tech stocks did well. So their country uses money from their oil and gas industry to make investments worldwide in 63 countries.

 

So they are invested in about 8,000 companies. They even own shares in Apple, Microsoft, NVIDIA and Amazon. But they also invest in bonds, real estate and infrastructure.

 

Okay, so President Trump is saying that he wants to create a US sovereign wealth fund to make Americans more wealthy. So the idea is very straightforward. But you can let me know what you think of the idea.

 

The idea is that the US governments invest money, they make money, and with that money, they can decrease taxes, they can cover government expenses and also finance infrastructure projects. That’s how other governments do it and use the money from their funds. Okay, so that is the status updates as of today regarding President Trump’s executive order regarding the sovereign wealth fund for the United States of America.

 

And please let me know what you think. Is this a good idea? Is it a bad idea? Or is it somewhere in between? I look forward to reading your comments. Thank you so much for the support.

 

Please subscribe. I’ll keep you updated and wish you a very nice day. Take care.

 

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