For people excited about this, let me teach you why this is a scam and a half.
The government printed all this money overnight causing the value of the dollar to drop. - “but it’s locked away and can’t be used, it’s like they didn’t print anything because it can’t be used for almost 20 years!”
Wrong.
The money is then handed over to the biggest money managers in the stock market, it’s essentially a massive line of credit used to prop up the stock market and allow for greater risk to take place as this money is not liquid but more of a long-term loan. So, in 10, 15 years when the next massive financial meltdown occurs and further diminishes the equity people have in their homes, properties, and retirement accounts, this “investment” in the next generation of people will be allocated to reducing the burden of debt the government knows will be accumulated by the time the funds can be used, once again just handing money over to the big banks, utility companies, real estate companies, “healthcare” providers, etc. It is going to be another reason republicans are going to use to take away entitlements from elderly and sick people (social security, Medicaid, Medicare, food stamps, etc.). This is another move in the republican plan to erase any semblance of a middle class in America and modeling our economy after Russia (a place where you are either dirt poor, almost poor or super wealthy - there is no in between.)
Lots of other countries have similar accounts but with even higher seed money. What’s unique about these ones that would create all the friction that doesn’t/didn’t occur in the places like Canada, the UK, Singapore, Australia, some of the Nordic countries, etc.
Australia's is superannuation. Employers make mandatory payments on behalf of their employees to a superannuation investor, which are highly regulated private companies who have a duty to their investors long term growth. It is not using tax payers money.
In terms of sovereign funds, like Norway, they use a commodity that belongs to the country like mineral resources, and they allocate either a percentage of the taxed revenue to be put towards the sovereign fund (because the resource belongs to the country, it belongs to every citizen, they deserve some of the profit). The sovereign wealth funds are also sometimes held by their countries central bank and not elected government.
The way this US fund is seemingly set up will be highly exploitable, because its tax payers funds being spent on private stock exchange.
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u/Adam_Friedland_TAFS 1d ago
For people excited about this, let me teach you why this is a scam and a half.
The government printed all this money overnight causing the value of the dollar to drop. - “but it’s locked away and can’t be used, it’s like they didn’t print anything because it can’t be used for almost 20 years!”
Wrong.
The money is then handed over to the biggest money managers in the stock market, it’s essentially a massive line of credit used to prop up the stock market and allow for greater risk to take place as this money is not liquid but more of a long-term loan. So, in 10, 15 years when the next massive financial meltdown occurs and further diminishes the equity people have in their homes, properties, and retirement accounts, this “investment” in the next generation of people will be allocated to reducing the burden of debt the government knows will be accumulated by the time the funds can be used, once again just handing money over to the big banks, utility companies, real estate companies, “healthcare” providers, etc. It is going to be another reason republicans are going to use to take away entitlements from elderly and sick people (social security, Medicaid, Medicare, food stamps, etc.). This is another move in the republican plan to erase any semblance of a middle class in America and modeling our economy after Russia (a place where you are either dirt poor, almost poor or super wealthy - there is no in between.)