The idea of ​​the sovereign wealth fund for Trump from envy was born instead of feeling

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The writer is an investor in Silicon Valley for a long time

President Donald Trump, who dug a deep hole for the United States with his definitions, can now be about to make it deeper with the creation of a sovereign wealth box. It is a proposal born of envy rather than feeling.

The American president, who did not hide his desire to simulate the military parade day or to prove a diameter of 747 so that he can obtain a new weapon that has been decorated with his paint scheme, now wants to form a Middle East box.

The entire concept ignores reality. Unlike the Middle East kingdoms, which formed sovereign capital gatherings with excess oil revenue, the United States is a debtor nation. It has less than 6tn of assets and debts exceeding 45 Tarisia. With the talk about tax cuts, the failure of the so -called Ministry of Governmental efficiency to rise to the level of its promises and now the possibility of a sovereign box, America will become poorer.

To generate the initial group of capital for what should be called the Trump Fund, it appears that the administration is determined to employ financial light from the hand. It wants to reassess American gold reserves and borrow against the inflated amount.

Trump Fund designers talk about “liquefy” or “affiliated” to the country’s origins. These words, when used by Wall Streeters, are a shortcut to say that we are betting that we can make the king’s ransom on the money we borrow. The tactic is mentioned in the way Trump exaggerates the size and value of his real estate portfolio to shake bank loans. We all know how it ended.

Trump Fund supporters must compare their plan to the wise way and scale organized by other countries. A bright example is the government pension fund in Norway, which was created in 1990 when the Norwegian government realizes that its oil and gas reserves will eventually dry out, the investment has decided approximately 80 percent of Bonanza’s profits in the North Sea in the box – now value is about 1.7 Triton – which will serve as a permanent patient to spend the state.

The same applies to GIC and Temasek, two cars established by the Singapore government, the former that invests foreign reserves in the country, and the entity that was originally accused of risk management in companies previously owned by the state. Or see how Canada operates the investment board of the pension plan in Canada or pension funds in Australia, which is organized at the state level and also the management of pension contributions to citizens.

If Trump and his advisers are very proud to follow the progress of other countries, they should look near the house, in Alaska. In 1980, Alaska leaders established the permanent fund in Alaska to invest 25 percent of the state’s revenues from the northern oil of the slope. Every year, the fund, which has started with less than a million dollars and now has about $ 80 billion of assets, pays profits per resident in Alaska.

The Trump box looks a whim, nothing more. The other money I mentioned, at first, was isolated against political intervention and greatly succeeded. It is difficult to imagine that the Republicans today insist on the same handrails when they already turn a party to the Trump Mementoins and the appetite of his family, which is not satisfied with the fattening of its own wallet.

If the United States is forced to obtain a sovereign box, it should be known as the tariff box. Instead of borrowing more money against the future, the United States must count any money created by customs tariffs and employ them for a great purpose. They must be invested in two things: companies that build the ability to develop and manufacture in the United States and in research and develop critical technologies for tomorrow. However, if only a sovereign fund is prepared to calm the president’s imagination, then believing in the greatest assets of the American financial system – will be dealt with another brutal blow.