DAILY EXCEPTION

With the growing concentration of liquid assets with government controlled entities, and the potential implications for US national security, I am adding Sovereign Wealth Funds (SWFs) as another focus area on Daily Exception. Over $3 trillion is now in the hands of government investment vehicles – mainly under the control of the Chinese or Middle Eastern governments. Investments by such institutions (or other state owned firms) in sensitive sectors do not automatically undermine America’s national security, but its an area that bears scrutiny. The continued globalization of capital and the growing role of foreign governments is not just important to Wall Street but to Washington as well.