US President Donald Trump speaks on February 3, 2025 in Washington, DC, with reporters in the Oval Office of the White House.
Jim Watson | AFP | Getty pictures
President Donald Trump signed an executive order on Monday that outlines plans for a sovereign asset fund led by the government in order to serve as an economic development tool and possibly serve to buy TikTok.
In addition to the goals for the fund, the development of infrastructures such as airports and highways would be, and it could help the United States to expand their influence in areas such as Panama and Greenland.
“We will use this thing in the next 12 months. We will monetize the property side of the US balance for the American people,” said US Finance Minister Scott Bessent during a media parley. “There will be a combination of liquid assets and assets that we have in this country when we work to bring them out for the American people.”
There were no further details for a fund that Trump could support “great national efforts” during his campaign. He said tariffs could help deliver funds. Other nations use taxes on natural resources, financial transactions and carbon consumption as financing mechanisms.
A discussed deal in which the USA would become a partner on the social media platform would be a potential use, said Trump. The app was held briefly under the security concerns, but Trump signed an order that had covered it for a period of 75 days, in which it probably has to sell from Chinese interests.
Although the idea of such a US fund has already been mentioned, the vehicles are generally used by small nations with huge natural resources and fiscal surpluses – in contrast to the USA, which have carried out massive budget deficits.
The nations with the means include China, Norway and Singapore. A US fund could help compete with these countries and make the government less dependent on the issue of financial debt to collect money.
According to the executive regulation, it is the purpose of the fund “to promote tax sustainability, reduce taxes on American families and small companies, to create economic security for future generations and to promote the economic and strategic management of the United States internationally “.
The Bessent and Commerce Secretary Howard Lutnick candidate is commissioned to develop a strategy within 90 days after the fund was operated.
According to the Sovergägn Wealth Fund Institute, Norway has the greatest sovereign fund of assets with a fortune of more than 1.7 trillion dollars. The China Investment Corp refers to 1.3 trillion dollars.
These funds are involved in the global financial markets as well as operations in infrastructure and private equity through investments in shares, bonds and real estate. Critics say that a lack of transparency can lead to conflicts and corruption if there are no strict rules for governance.