The problem for civil service is that we really do not want the government to control such a huge amount of money in the stock market, and other higher performing assets.
That is one of the reasons that the Congress pulled the Social Security Administration out of the ability to invest in something besides government bonds.
Social Security currently controls $2.9 Trillon in funds. Imagine what impact it would have on stocks if SS bought and sold like other large investors do.
That $2.9 Trillion is almost 10% of the entire US government dept. SS is the single biggest debtor of the US government. Despite doom and gloom forecast, SS has yet to have a negative cash flow year where expenditures exceeded income. Yes part of that income is redeeming government bonds which become due, and reinvesting much of the money into more government bonds.
The Office of Personnel Management (federal civilian employees) is almost one Trillion dollars invested in government bonds.
The Military Fund is over $900 billion invested in government bonds.
Medicare has $300 billion plus invested in government bonds.
People talk about China holding most of the US debt. It does not. The biggest holder of US debt is the US people.
China currently holds the largest portion of FOREIGN owned debt.
And note, all the federal pension and such government bonds are FIRST PAY debt. If the US govt cannot make debt payments, Social Security gets first payment, then the other pension plans. China falls to the tail of the line, behind Savings Bonds.
Note that the ENTIRE capitalization of the NYSE is only about 15.5 Trillion. The US Government agencies like SS could own and control nearly one third of ALL NYSE stocks. They could buy the entire value of the entire Shanghai Exchange, or EURONEXT.
Does anyone really want a US administration to have that much economic power in the world?
Not all who wander are lost.