A Better Way to Spend $1 Trillion
Posted at 12:15 p.m. on Feb. 8
Miles Kimball explains the benefits of creating a US sovereign wealth fund that could invest $1 trillion on behalf of the Treasury Department.
“In brief, the mere existence of a US sovereign wealth fund, one that issued through the Treasury $1 trillion worth of low-interest safe bonds and invested it in high-expected-return risky assets, would give the Federal Reserve a lot more room to maneuver.”
“Buying assets cheap, relative to their fundamentals, and selling assets that are expensive, relative to their fundamentals, both pushes asset prices toward their fundamentals and, by buying low and selling high, makes profits that we can use to help pay off the national debt.”