I hope my interpretation of this Sovereign Wealth Fund turns out to be wrong. Sounds like a Trojan horse of sorts
Discussion
Socialism enters the chat
Right? I don’t understand enough it to know how it’s limited by current law, so I’m just thinking out loud here. But since it’s created by executive order, it can be altered by EO in a future admin. How much equity can the government have in any particular business?
Zero. Congress isn't going to allocate a hundred billion dollars to buy a private company.
MAGA folks cheering this blatantly unconstitutional act and communist approach. Disgusting. Franklin Roosevelt tried this on a similar way to shut down companies and reopen them in labor friendly ways. Hence his court packing attempt. The he backed down.
Fortunately Bitcoin is not proof of stake, but they can still impose laws over miners.
It’s the wider implications that concern me, beyond just the Bitcoin sector.
Your thinking is correct. Public-private partnership.
“Partnership” 😂
Same shit different day- https://en.wikipedia.org/wiki/Global_public%E2%80%93private_partnership
I think you are correct. Sovereign control at the government level seems in direct opposition to sovereignty at the citizen level(where sovereign funds belong).
Exactly. The comments made in this video by the new Secretary of Commerce ought to be a HUGE red flag to everyone. “If we sell 2 billion Covid vaccines we should have equity in those companies.” 😳
https://video.twimg.com/amplify_video/1886493153160536064/vid/avc1/640x360/4YewVtLc5OaEQ9v2.mp4
You might like the current administration, but giving govt a stake in a private company means it passes to the next administration, which you may not like. Never give your preferred president a power you do not want your opponent to wield in four years.
Explain me why this is wrong like I am 10
Communism is bad.
Developed nations like Norway or Singapore also have a national wealth fund
If I understand those correctly, they only invest in foreign companies/investments. That is much different from what Lutnick said in that video above.
“Norges Bank Investment Management, which operates the fund, invests some 70% of assets in global stocks, about 25% in bonds and the rest in real estate and renewable energy plants, with most of its portfolio tracking international market indexes.”
👀
If you’re starting to see the huge red flags this late in the game get your eye sight checked
This late into what game? The US has a much better chance at preserving vital freedoms under this administration vs. what we almost had. But that doesn’t mean every decision they make is a good one or should be supported without questioning.
having an unelected private billionaire deciding who in the federal government gets paid wasn’t a red flag? Lasers are not good for the eyes
Is this "Capitalism with Chinese characteristics"?
Depends on who winds up with the controlling share. If it’s private, government just becomes a giant hedge fund with unlimited liquidity, pumping everyone’s bags, If it’s the government, socialism. Current administration is angling toward the former, future administrations will mismanage the situation into the latter.
Total Trojan horse.
At the very least it’s taking out a massive loan to invest, we don’t have surpluses to invest.
And I doubt it’ll beat the index funds, so it’s just a huge losing proposition.
It is definitely concerning.
I guess conversely one could look at how the huge SWFs of Saudi Arabia and Kuwait for example invest in foreign entities/industries and thus secure an element of control over them as well as financial gain. Is that worse or better than the US maintaining control and financial gain over its own industries? Tricky one.
Right, and if this is something the US is going to do anyway, is it better to establish it now under this administration, or under some future administration with different priorities? I guess the details will matter, but it just feels like it opens a big can of state-owned-everything worms.
Yep, as ever the nitty-gritty details are not clear.
I hadn't considered it like that. If they do invest in American companies, then I hope they have to take a silent non-voting position...