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US President Donald Trump has signed an executive order to create a sovereign wealth box next year, saying that he is likely to buy the short video application Tiktok.
On Monday, Trump presented Little in the way of details, and it was unclear how this wealth box would work. These funds usually depend on the country’s budget surplus for investments, but the United States government is working in a deficit. Its construction may require approval from Congress.
“We will create a lot of wealth for the box,” Trump told reporters. “I think it is time for this country to have a sovereign wealth fund.”
Trump had previously launched such a government investment car as a presidential candidate, saying it could fund “great national efforts” such as infrastructure projects such as highways, airports, manufacturing and medical research.
Administration officials did not say how the fund would work or provide, but Trump previously said it could be funded through “tariffs and other smart things”.
Treasury Secretary Scott Beesen told reporters that the fund will be established within the next 12 months.
“We will praise the side of the assets in the American public budget for the American people,” Pesin said. “There will be a mixture of liquid assets, and the assets we have in this country and we are working to take it out to the American people.”
The administration of former President Joe Biden was also considering creating such a fund before Trump was elected in November, according to the New York Times and Financial Times.
The economy “Don’t add”
Investors in Wall Street said the news was a surprise.
“The creation of a sovereign wealth box indicates that the country has savings that will rise and be allocated to this,” said Colin Graham, head of multi -strategy strategies at Robeco in London. “The economic rules of the thumb do not add.”
There are more than 90 such boxes all over the world running more than $ 8 trillion of assets, according to the International Sovereign Wealth Boxes.
In another sudden development, Trump suggested that the wealth fund can buy Tiktok, whose fate in the United States has been in the air since he entered a law asking his Chinese owner, either selling it on the basis of national security or facing a ban on January 19.
After taking office on January 20, Trump signed an executive order seeking to delay by 75 days of law enforcement.
Trump said he is holding talks with many people about the purchase of Tiktok and may have a decision on the future of application this month. The famous app contains about 170 million American users.
“We will do something, perhaps with Tiktok, and maybe not,” Trump said. “If we conclude the correct deal, we will do it. Otherwise, we will not do it. … We may put it in the sovereign wealth box.”
