Not lengthy in the past America’s predominant concern with sovereign-wealth funds was methods to regulate these giant swimming pools of cash managed by overseas governments. Now, seemingly in a single day, the recent new concept in Washington, DC, is that America ought to be a part of the membership. It’s simple to grasp the attract. A well-managed SWF can, in principle, let the federal government direct additional cash in the direction of its strategic goals, with out—if returns are robust—the necessity to elevate taxes. In observe, attaining this stability is troublesome. In America a SWF appears like a dangerous resolution to an issue that doesn’t actually exist.
