A New Vision for America: Aligning Foreign and Domestic Policy with Middle-Class Prosperity

By Paul Leonard

?#ResourceQuest #NewVision #MiddleClassWin #MakeItOurs #TrumpDeal #ResourceFlip #SWF #Blockchain #CorporateGreed #AmericaFirst

The history of U.S. foreign policy reveals a recurring pattern of resource-driven interventions, often influenced by corporate interests seeking to secure access to valuable natural resources abroad. From the Middle East's oil reserves, as highlighted by the Carter and Reagan Doctrines, to Central America's agricultural exports during the United Fruit era, U.S. actions have frequently prioritized resource acquisition over other considerations. This "resource quest" has been a defining feature of American statecraft for over a century, often cloaked in the language of national security or ideological battles. However, such policies have frequently resulted in significant private gains for corporations while leaving taxpayers to bear the costs—both financial and geopolitical—of these interventions. The lack of transparency and accountability in these endeavors has fueled public skepticism and highlighted the need for reform.

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The establishment of a U.S. Sovereign Wealth Fund (SWF) offers a compelling solution to address these systemic issues. By centralizing and transparently managing both domestic and foreign resource revenues, an SWF could negate the undue influence of corporate interests while ensuring that the benefits of resource extraction are equitably distributed among citizens. A well-structured SWF could also serve as a mechanism to recoup taxpayer investments in foreign interventions, particularly those tied to resource acquisition, by directing profits from resource revenues back into public coffers.

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Norway's Government Pension Fund Global (GPFG) provides a proven model for how an SWF can be effectively governed and managed. Established in 1990 to manage surplus oil revenues, Norway's SWF has become a global benchmark for transparency, accountability, and long-term fiscal sustainability. Key lessons from the Norwegian model include:

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1. Fiscal Rules: Norway's fiscal rule limits annual withdrawals from the fund to 3% of its value, aligning government spending with expected real returns. This ensures that the fund's principal is preserved for future generations while allowing for controlled fiscal contributions.

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2. Transparency: The GPFG operates with unparalleled transparency, publishing detailed reports on its investments and performance. This openness fosters public trust and minimizes opportunities for corruption or misuse.

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3. Independent Oversight: The fund is managed independently of political influence by Norges Bank Investment Management (NBIM), ensuring that investment decisions are guided by professional expertise rather than short-term political considerations.

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4. Diversification: The GPFG invests globally across a wide range of asset classes, reducing risk and avoiding over-reliance on any single market or sector.

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5. Guardrails Against Market Distortion: Norway limits domestic investments to prevent the fund from distorting its own economy, focusing instead on maximizing international returns.

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6. Public Accountability: Regular audits and parliamentary oversight ensure that the fund remains aligned with its long-term objectives.

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Applying these principles to a U.S. SWF would require careful adaptation to fit the unique economic and political context of the United States. For example:

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- Resource Revenue Allocation: A U.S. SWF could be funded through revenues from domestic energy production (e.g., shale oil, natural gas) and any future profits from foreign resource acquisitions tied to U.S.-backed interventions.

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- Guardrails Against Corporate Capture: To prevent private entities from disproportionately benefiting, strict ownership caps and anti-collusion measures must be implemented to limit common ownership by large asset management firms.

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- Public Participation: Incorporating a multi-tiered governance structure with liquid democracy mechanisms would allow citizens to directly participate in decision-making or delegate their votes to trusted experts, enhancing transparency and accountability.

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- Reinvestment in Public Goods: Revenues generated by the SWF should be reinvested in critical areas such as infrastructure, education, healthcare, and debt reduction, ensuring tangible benefits for taxpayers.

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By adopting these measures, a U.S. SWF could transform how the nation manages its resource wealth while addressing longstanding criticisms of foreign policy driven by corporate interests. Such a fund would not only provide fiscal stability but also serve as a transparent mechanism for ensuring that America’s vast resource assets are leveraged responsibly and equitably for the benefit of all citizens.

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Combining Lessons Learned With a Modern Approach

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Incorporating a blockchain-based organization, such as a multi-tiered DAO, into the governance structure of a U.S. Sovereign Wealth Fund (SWF) could significantly enhance oversight, transparency, and public participation while mitigating several key risks associated with traditional SWF management.

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A multi-tiered DAO structure for SWF governance could include:

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1. A core governance tier composed of appointed officials and elected expert delegates

2. An expert delegate tier elected by public members

3. A public advisory tier open to all eligible citizens

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This structure, powered by blockchain technology, would offer several advantages:

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1. Transparency: All proposals, votes, and decisions would be recorded on a public blockchain, ensuring complete visibility into the fund's operations.

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2. Decentralized decision-making: The liquid democracy mechanism would allow public members to either vote directly on proposals or delegate their voting power to trusted experts, enhancing participation while maintaining the quality of decision-making.

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3. Resistance to corporate influence: By distributing voting power among a large number of participants and implementing strict ownership caps, the DAO structure could prevent large corporate interests from dominating fund decisions.

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4. Protection against political exploitation: Smart contracts could enforce rules that prevent short-term political interests from influencing fund management, similar to Norway's model of separating fund management from political influence.

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5. Enhanced accountability: Regular audits and performance reviews could be automated and made publicly accessible, increasing trust in the fund's management.

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6. Flexible governance: The DAO structure could adapt to changing needs through proposal and voting mechanisms, allowing for evolution of governance rules over time.

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By leveraging blockchain technology and DAO principles, this governance model could serve as a pioneering example of how to manage public wealth in a transparent, accountable, and participatory manner. It would not only guard against the weaponization of SWF funds but also create a new standard for public resource management that could be applied to other areas of governance in the future.

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This innovative approach would align with the growing trend of decentralized finance (DeFi) and could position the U.S. as a leader in transparent and democratic wealth management. Moreover, it would address concerns about SWF investments raised in academic literature, such as the potential for political interference and lack of transparency.

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In conclusion, a blockchain-based, multi-tiered DAO governance structure for a U.S. SWF could provide the necessary oversight, transparency, and public engagement to ensure that the fund truly serves the long-term interests of all citizens, rather than being subject to corporate influence or short-term political goals.

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CONSIDERATIONS FOR THE GOVERNANCE OF A

US SOVEREIGN WEALTH FUND: PROPOSED BYLAWS

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I. Structure and Membership

1. The DAO shall consist of three tiers: a) Core Governance Tier b) Expert Delegate Tier c) Public Advisory Tier

2. Membership in the Public Advisory Tier shall be open to all US citizens above 18 years of age.

3. Expert Delegates shall be nominated and elected by members of the Public Advisory Tier.

4. The Core Governance Tier shall consist of appointed government officials and DAO-elected Expert Delegates, with DAO-elected Expert Delegates making up at least 40% of voting delegates.

II. Liquid Democracy Mechanism

1. Each member of the Public Advisory Tier shall have the right to:

a) Directly vote on proposals b) Delegate their voting power to an Expert Delegate c) Change their delegation at any time

2.???? Delegation of votes shall be transparent and recorded on the blockchain.

1. Members may split their voting power among multiple delegates if they choose.

III. Proposal and Voting Process

1. Any member can submit proposals for consideration.
2. Proposals must pass through a screening process to ensure relevance and feasibility.
3. Approved proposals shall be open for public comment for a minimum of 14 days.
4. Voting on proposals shall remain open for 7 days after the public comment period.
5. Proposals require a 60% majority to pass.

IV. Transparency and Reporting

1. All proposals, comments, and voting results shall be publicly accessible on the blockchain.
2. Quarterly reports on DAO activities and decisions shall be published.
3. An annual audit of the DAO's operations shall be conducted by an independent third party.

V. Expert Delegate Elections

1. Expert Delegate elections shall be held annually.
2. Candidates must meet specific qualifications in finance, economics, or relevant fields.
3. Elected delegates serve for a term of two years, with half the positions up for election each year.

VI. Core Governance Tier Responsibilities

1. Final approval of proposals passed by the DAO.
2. Integration of DAO recommendations into SWF management strategies.
3. Ensuring compliance with federal regulations and SWF objectives.

VII. Amendments and Bylaws

1. Amendments can be proposed by any member and must follow the standard proposal process.
2. Amendments require a 75% majority to pass.

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