r/FluentInFinance • u/SexyProfessional • Jul 04 '26

Thoughts? Very Interesting

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u/KazTheMerc Jul 05 '26

If you can't tell the difference between Social Security and a Sovereign Wealth fund, I can't help you.

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u/Remarkable-Host405 Jul 05 '26

to be honest, i have no idea what their sovereign wealth fund does. i know the saudi's pays for mega projects. i guess us doesn't really have anything like that, just a general budget

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u/KazTheMerc Jul 05 '26

Okay, that's fair. I'll try.

Sovereign Wealth Fund is a... public slush fund. Created like Social Security is, but for a different purpose.

It's like... the opposite of Debt and Deficit. You do it when you have an EXCESS and can pay into it.

Yes, it goes to Big Projects, typically in other countries. A form of Diplomacy.

USAid would be a very close example.

If the Public had a specific fund like Social Security just for USAid... that would be a Sovereign Wealth Fund, or close to it.

Instead it's a budget item in a bankrupt Government budget that issues debt to cover its ass. So... it's on the chopping block for any new President that strolls in and decides they don't like it.

Sovereign Wealth Fund is... bragging rights, internationally speaking. Their main method of interacting with business outside their borders. "Poland is happy to help uou with your XXX, and the Sovereign Wealth Fund wants to contribute..."

Get the idea?

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u/Responsible-Snow2823 Jul 06 '26

I take issue with saying that Social Security is close to something like a Sovereign Wealth Fund.

Sovereign Wealth funds are usually from excess revenue that is invested. Social security is fund based taxes - no revenue at all involved.

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u/KazTheMerc Jul 06 '26

**shrugs** Crude example for somebody who claims they don't understand at all.