Question #30

The losses that the Futures Fund (or any sovereign fund) has made on its share holding

• suggest that public and hence national saving has declined which will diminish the capacity of the national government to net spend in the future.
• are similar in concept to any depreciating publicly-held asset and have no implications for the national government's future capacity to net spend.
• may need future taxation revenue offsets to restore the capacity of the national government to net spend in the future.

Answer #213

Answer: are similar in concept to any depreciating publicly-held asset and have no implications for the national government's future capacity to net spend.

Explanation

Please see The Futures Fund scandal or post a question via the comments page.