The SWFs are coming! (Foreign Dictators That Own American Companies)

WorldNetDaily ^ | 07/31/2007 | Pat Buchanan

[SirLinksalot]

The Iraq war has probably killed the idea of using U.S. troops to intervene in the name of Mr. Bush's "world democratic revolution."

The Middle American revolt that killed amnesty for the 12 million illegal aliens has buried the idea of open-borders immigration.

Come now the SWFs, which may bring an end to America's folly in her unthinking embrace of global free trade.

What are SWFs? They are Sovereign Wealth Funds – huge capital funds controlled by regimes that are the big new boys on the block in the world of global finance.

How are SWFs created? Primarily from the mammoth trade deficits America has run up. In 2006, America had a merchandise trade deficit of $836 billion and a current account deficit of $857 billion, or 6.5 percent of our entire Gross Domestic Product.

Foreign nations have piled up huge cash reserves. China, at the end of March, had $1.2 trillion; Japan nearly $900 billion; Russia, with oil and gas revenue pouring in, something like $300 billion. The Arab Gulf states also have huge hoards of dollar reserves.

Rather than keep all this cash in U.S. Treasury bonds earning 5 percent a year, these nations are creating SWFs to go after higher rates of return and corporate assets to advance strategic interests.

The United Arab Emirates has $500 billion in SWFs; Norway $400 billion; Singapore and Saudi Arabia $200 billion; and China nearly $200 billion. Total SWF funds worldwide is $2.5 trillion, writes ex-Treasury Secretary Larry Summers, a figure that is expected to double to $5 trillion by 2010, and then double again to $12 trillion by 2015.

The problems these SWFs portend are enormous.

Since the Reagan-Thatcher era, privatization of publicly owned assets has been the trend in the free world.

[353FMG]

It is erroneously called Capitalism - he who has the most money wins and screw the country.

[Sudetenland]

People, look at the author. Patrick Buchanan, Mr. "withdraw from the world and everything will be wonderful."

Isolationism died with WW2. Only an fool would embrace the world vision of Pat Buchanan, you know like Ron Paul. He has gone the way of Goldwater the "Latter."

Pat has been preaching doom and gloom for years now. He will be preaching doom and gloom till he dies. He has gone so far off the reservation that he will never find his way back.

Anybody who looks for a reason to foretell the end of the world will find evidence somewhere to support their claims, no matter how absurd.

25 years ago it was the Japanese who were going to take over our nation. Michael Crichton even made a movie/book about it. Before that it was "the Arabs," with all their oil money.

Oooh! the Boogey man is coming...I'm soooo scared. blah, blah, blah...

[RussP]

“I thought they were talking about Single White Females...”

I think that was what Pat intended. It was a play on acronyms, if you will, to get your attention.

[Nathan Zachary]

"Will the United States rope off the industries that build the weapons of our national defense from any ownership by SWFs?"

Of course, or at least they should. We have to ensure they do. Sovereignty and national security is not for sale.(Besides, Democrats and some Republicans give that away for free) I know some like to think that just because someone has a lot of money, that the nations laws and national security interests do not apply. This isn't true, even though it seems that way at times. All they have is lots of paper with nice designs on it, and it will buy them goods that we would sell to everyone.

Heck, they can spend it on a generic space program if they want to, complete with generic space shuttles, which are soon to be obsolete anyways. Better to sell it for a few hundred billion than scrap it, stripped of any secret technology of course.

[Avoiding_Sulla]

You may want to tie this in with your observation on what it takes for the Senate to ratify treaties.

In a different way it also ties in with this published yesterday: Fear and Hatred for Real Leaders

They all pose threats to the survival of our republic.

Our challenge is in forming an informed majority that is unafraid to fight the selfish and sometimes malevolent interests of those with more money than sense or decency.

Yes, you're too busy. Meanwhile the moneyed interests buy those whose business and interests are contrary to yours. And spread their lies with their fees paid to MSM.

[B4Ranch]

If the money provides jobs for Americans then it is good money. Sounds like something Ben would say, doesn’t it?

[humint]

Interesting article...

What are SWFs? They are Sovereign Wealth Funds – huge capital funds controlled by regimes that are the big new boys on the block in the world of global finance.

Wouldn't it be great if all of the "regimes" Pat refers to governed by the consent of their citizenry? That way, the will of the American people could influence the investment trajectory of any "sovereign wealth fund". We (the American people) would be able to prevent such nightmares by cooperating with the citizens of nations with enormous SWFs. In that scenario, SWF are exciting. SWFs are probably the best way mankind has to create new "tides that will raise all boats". On the other hand, dictators and oligarchs do not represent their people, so their people cannot influence their own gross national product [GNP/capita]. Pat B. may disagree with Richard Perle and those with similar opinions on Iraq and Afghanistan, nevertheless, he just articulated the prime reason why the United States must succeed in the Middle East. SWFs in the hands diabolical dictators inevitably start wars... they start wars that will repeatedly bite us in the ass (like 911!). Remember why Saddam invaded Kuwait? He had a bad case of SWF envy...

Pat, it looks like you've found 1 and 1. Go ahead and add-em up.

[Avoiding_Sulla]

Then, to be consistent, it is your view that money spent to keep anti-Americans employed and predominant in our MSM is a good thing.

[Finalapproach29er]

I wouldn’t call him stupid. He was the only one talking about illegals 15 years ago.

Did you vote for him when you had the chance?

[B4Ranch]

Read #27 and you’ll understand my concerns.

[neverdem]

thanks, bfl

[NonValueAdded]

Next thing you know there will be Monetary International Leverage Funds.

[hubbubhubbub]

Corporate America was forced to abandon American interests due to the tax and regulatory environment created by American government.

I fixed your sentence for you.

[Avoiding_Sulla]

Sorry, no; I am still not sure what you’re advocating, especially since you didn’t indicate your agreement or disagreement with #27.

I was hoping your first sentence to me at #26 was sarcastic even though I addressed it as if you were serious.

Moneyed interests keep MSM afloat to do damage in the manner detailed by the link at #25.

[Ben Ficklin]

Globalism

[B4Ranch]

"stripped of any secret technology of course."

That's not the view in DC, of course.

U.S. may share missile info with China
WASHINGTON, June 4 (UPI) -- The United States would "seriously" consider sharing technology and missile warning intelligence with China, (Secretary of Defense Gates) the U.S. defense chief said Sunday.

http://www.freerepublic.com/focus/f-news/1846099/posts

U.S. carrier help? (Admiral offers help to China)

Adm. Tim Keating, the U.S. Pacific Command leader, told reporters during his visit to China last month that while building and operating a carrier battle group is complex, the United States is willing to help.

"We would, if they choose to develop [an aircraft-carrier program], help them to the degree that they seek and the degree that we're capable, in developing their programs," Adm. Keating said.

http://www.freerepublic.com/focus/f-news/1845931/posts

[Marine_Uncle]

Interesting, but not new nor unique. Just a new acronym being introduced. Yes benevolent nations can use such investment means to float a lot of boats, or shaddy bastards can attempt to sink them all. But the SEC keeps a carefull watch on just who is buying what. And I don't think most nations or individuals are willing to lose trillions of dollars on their investments to attempt to sink some given defense oriented American industry.
As for China. They got enough problems with their banking institutions and the liquidity of their money supplies.
They are gambling a lot on building up a modernized industrial complex that can compete with America and Europe, as well as many nitch markets elsewhere where labor costs are allowed to be keep to a minimum.
But who knows in this brave new world what can conspire under the right conditions.

[VOA]

bump