With his latest initiative to set up a state investment fund, Donald Trump has taken the financial markets in a different direction. Many, especially in my opinion unfortunately bitcoiners, are jumping on this bandwagon and rushing into this juggernaut full of anticipation (I know: hyperbitcoinization and all that...). Nevertheless, the question must be: is it right for the state to intervene in the capital markets with public funds? My personal assessment: no, absolutely not. The state should keep its hands off it! It is the territory of the private sector, which is already suffering from too much regulation and interventionism. Efficient capital allocation does not need this! And we don't want a strong state, but a minimal state, if at all.

Some thought on the SWF:

The very foundation of a SWF contradicts the libertarian principle of economic freedom . By centralizing wealth, states exert control over investment decisions that should naturally be left to the market's invisible hand. This control leads to inefficiencies, as government officials, often detached from the real dynamics of the market, make decisions based on political rather than economic merit. The market, in its purest form, would distribute wealth and risk more efficiently through countless individual decisions rather than one monolithic entity.

Moral and Ethical Considerations There's a moral dimension to consider as well. The libertarian ethos champions the idea that wealth generated from resources within a nation's borders should benefit those who directly contribute to its extraction or production, not be funneled into a fund where the government decides its fate. This approach borders on what could be described as modern feudalism, where the lords of the state dictate the destiny of the common wealth.

Political Power and Corruption The concentration of economic power in SWFs also amplifies political power, breeding grounds for corruption and cronyism. Just as we've seen with central banks and planners, the management of these funds can become a playground for political favoritism, where investments are not made for the best return but to maintain political allies or to pursue geopolitical strategies over economic ones.

So please, dear politicians: keep your hands off the free market.