10:10 ▪ ▪
6
min at reading ▪
In a new turnover for US economic policy, Donald Trump has signed a presidential order that creates an unprecedented National Sovereign Fund in the United States. The aim of this financial instrument should stimulate economic growth, finance strategic infrastructure and potentially allow tiktoku. The Washington platform for national security reasons must necessarily be separated from its Chinese shareholders to continue their activities on American soil. With inspiration from models of sovereign funds from China, Norway or Singapore, it hopes that Trump’s administration will reduce the dependence of the United States on loans and strengthen its global economic influence. However, the implementation of such a mechanism raises many questions: how can a country that accumulate a massive budget deficit, finance such a project? What would be the geopolitical consequences of direct intervention in the World Technology Society? Among the economic ambitions and diplomatic problems, this ruler is the fund of a major change that could redefine the role of the US state on the international scene.
Unprecedented economic project in the United States
Donald Trump prevents the creation of a sovereign fund as a strategic reaction to the country’s economic challenges. He says he wanted to “monetize the assets of the United States” to finance the main national projects and reduce debt addiction. In order to take place, the government relies on a combination of liquid assets and resources that are already present in the territory. “We will make these assets available to the US people,” says Finance Minister Scott Bessnt.
Unlike traditional sovereign funds, generally driven by excess oil, gas or large budgets, this US fund could rely on customs and alternative forms of taxation. In addition, this approach raises strong questions, especially on its financial viability. With a colossal budget deficit, the United States does not have surpluses that allow nations such as Norway, Singapore or China to effectively manage their sovereign means.
The idea of the investor’s state also causes a contrasting response to Congress. Some elected officials consider this to be an opportunity to strengthen the country’s economic autonomy, while others condemn the risk of economic policy. Managing problems with public assets for transparency and possible abuse. This is added to the main strategic problem: if this fund was born, it would deeply pray the economic role of a federal state, an entity that deeply divided the American political class.
Strategic lever for the influence of Tiktok and American
In addition to infrastructure projects, the US sovereign fund could be used to finance investment in its own capital in Tiktok, which is Donald Trump spoke several times during his presidential campaign. This initiative is part of the context of increasing tension between Washington and Beijing, while the application is accused of being a spy instrument in the service of the Chinese government. The US authorities are now demanding that Tiktok be separated from Chinese shareholders to continue their activities in the United States. “We want to make sure that Tiktok remains in good hands, without interfering with China,” Trump insisted, suggesting a possible acquisition of American actors supported by the state.
However, the US government to the capital of Tiktoku creates many legal and ethical concerns. Several experts warn against the risk that the influential platform directly controls, especially in a country where the basic principles of freedom of expression and network neutrality are the basic principles. This could create a dangerous precedent that would open the door to an increased public bodies in the private sector and the social media market.
At the diplomatic level, such an acquisition would risk other deteriorating relationships between Washington and Beijing. China could see direct interference with its economic interests that would emphasize the climate of distrust that existed between the two powers. This confrontation exceeds the tiktok. It reflects a wider struggle of impact on mastering digital technologies and access to data. If this project could change the balance of forces in the Sino-American rivalry and redefine the rules of the game in terms of digital platform control.
With this project, Donald Trump focuses on the transformation of economic policy of the United States and is inspired by models of sovereign funds adopted nations that have significant financial reserves. However, the absence of budget surplus and the extent of US deficit is the main challenge. The success of such a fund would depend on its management and transparency, but also on its ability to attract capital and generate permanent revenues. If this mechanism was to be introduced, it could deeply adjust the role of the federal state and would give it an unprecedented financial lever on the international scene. It remains to find out whether this vision survives political resistance, budget limitations and geopolitical consequences that are already triggering.
Maximize your Cointribne experience with our “Read to Earn” program! For each article you read, get points and approach exclusive rewards. Sign up now and start to accumulate benefits.
Graduate of Science after Toulouse and holder of Blockchain Consultant Certification, published by Alyrou, joined the adventure of Cointtribuni. The general public about this constantly evolving ecosystem. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.