Trump's bold move could revolutionize American wealth – and he wants to buy a popular social media platform with it!
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In a surprising move that has caught the attention of both the financial and tech industries, President Donald Trump has signed an executive order that could dramatically shift the landscape of American investments and social media ownership.
This new order, signed just this Monday, directs the creation of a US sovereign wealth fund within the next year—one that Trump has hinted could potentially be used to acquire the popular social media app.
Sovereign wealth funds are state-owned investment vehicles designed to help nations manage surplus reserves by investing in various assets for long-term returns.
Countries with abundant natural resources, such as Norway and many in the Middle East, commonly use them as tools for economic stability and intergenerational wealth transfer.
The idea of creating a sovereign wealth fund in the US is intriguing, but it raises questions. The US doesn’t operate with a surplus; in fact, it runs a budget deficit, which leaves many wondering where the funding for such a fund would come from.
Trump has floated the idea of using “tariffs and other intelligent things” to finance it, though details are scarce. The executive order is light on specifics, simply instructing the Treasury and Commerce Departments to prepare a detailed plan within 90 days.
While the concept of a US sovereign wealth fund is not new—Trump proposed it during his presidential campaign—this latest twist, involving the possible acquisition of TikTok, is unexpected.
The popular social media app, owned by the Chinese company ByteDance, has raised national security concerns, which is why the Trump administration previously floated the idea of a forced sale or a potential ban if ByteDance didn't sell it to an American company.
Although the Biden administration also considered the idea of a sovereign wealth fund, Trump’s explicit link to TikTok in his latest executive order is a new development.
For this plan to succeed, it would likely require approval from Congress. Given the need for additional funding sources, experts have questioned whether an executive order alone could bring the fund to fruition.
Some, including former Treasury official Clemence Landers, are skeptical about the feasibility of launching and fully funding the fund without further legislative support.
Despite the challenges and uncertainty surrounding how the fund would be structured and financed, Treasury Secretary Scott Bessent has assured that the fund will be established within the next 12 months.
The goal would be to “monetize the asset side of the US balance sheet for the American people,” possibly using existing bodies like the U.S. International Development Finance Corp (DFC).
This news has certainly caught the attention of investors. Colin Graham, head of multi-asset strategies at Robeco in London, has pointed out that the economic principles behind a sovereign wealth fund usually rely on savings, something the US currently lacks.
While the US does not have a national sovereign wealth fund, states like Alaska, Texas, and New Mexico do, funded by revenue from natural resources and used to support priorities such as education and tax relief.
As for TikTok, its future remains uncertain. Trump has stated that discussions are underway with multiple parties regarding the purchase of the app, and a decision is expected in February. With approximately 170 million American users, the fate of TikTok is a significant matter for many.
Trump's executive order has certainly stirred up conversation and presents a bold vision that could transform US investments and even change the ownership of one of the most popular social media platforms in the world.
Whether this vision comes to fruition will depend on various factors, including Congressional approval, the development of a solid funding plan, and the complexities of international politics and business.
We’d love to hear what you think—do you see this as a positive step for the US and TikTok? What’s your take on the idea of a sovereign wealth fund in America? Drop a like and share your thoughts in the comments below. Let’s chat!
Also read: A review: Executive Orders issued by Donald Trump in his first week
This new order, signed just this Monday, directs the creation of a US sovereign wealth fund within the next year—one that Trump has hinted could potentially be used to acquire the popular social media app.
Sovereign wealth funds are state-owned investment vehicles designed to help nations manage surplus reserves by investing in various assets for long-term returns.
Countries with abundant natural resources, such as Norway and many in the Middle East, commonly use them as tools for economic stability and intergenerational wealth transfer.
Former President Donald Trump's executive order could reshape the future of American investments and social media ownership. YouTube / Reuters.
The idea of creating a sovereign wealth fund in the US is intriguing, but it raises questions. The US doesn’t operate with a surplus; in fact, it runs a budget deficit, which leaves many wondering where the funding for such a fund would come from.
Trump has floated the idea of using “tariffs and other intelligent things” to finance it, though details are scarce. The executive order is light on specifics, simply instructing the Treasury and Commerce Departments to prepare a detailed plan within 90 days.
While the concept of a US sovereign wealth fund is not new—Trump proposed it during his presidential campaign—this latest twist, involving the possible acquisition of TikTok, is unexpected.
The popular social media app, owned by the Chinese company ByteDance, has raised national security concerns, which is why the Trump administration previously floated the idea of a forced sale or a potential ban if ByteDance didn't sell it to an American company.
Although the Biden administration also considered the idea of a sovereign wealth fund, Trump’s explicit link to TikTok in his latest executive order is a new development.
For this plan to succeed, it would likely require approval from Congress. Given the need for additional funding sources, experts have questioned whether an executive order alone could bring the fund to fruition.
Some, including former Treasury official Clemence Landers, are skeptical about the feasibility of launching and fully funding the fund without further legislative support.
Despite the challenges and uncertainty surrounding how the fund would be structured and financed, Treasury Secretary Scott Bessent has assured that the fund will be established within the next 12 months.
The goal would be to “monetize the asset side of the US balance sheet for the American people,” possibly using existing bodies like the U.S. International Development Finance Corp (DFC).
This news has certainly caught the attention of investors. Colin Graham, head of multi-asset strategies at Robeco in London, has pointed out that the economic principles behind a sovereign wealth fund usually rely on savings, something the US currently lacks.
While the US does not have a national sovereign wealth fund, states like Alaska, Texas, and New Mexico do, funded by revenue from natural resources and used to support priorities such as education and tax relief.
As for TikTok, its future remains uncertain. Trump has stated that discussions are underway with multiple parties regarding the purchase of the app, and a decision is expected in February. With approximately 170 million American users, the fate of TikTok is a significant matter for many.
Trump's executive order has certainly stirred up conversation and presents a bold vision that could transform US investments and even change the ownership of one of the most popular social media platforms in the world.
Whether this vision comes to fruition will depend on various factors, including Congressional approval, the development of a solid funding plan, and the complexities of international politics and business.
We’d love to hear what you think—do you see this as a positive step for the US and TikTok? What’s your take on the idea of a sovereign wealth fund in America? Drop a like and share your thoughts in the comments below. Let’s chat!
Also read: A review: Executive Orders issued by Donald Trump in his first week
