The SWFs are Coming! by Pat Buchanan

Published: August 1, 2007, 11:53 am

The SWFs Are Coming!Pat BuchananTue Jul 31, 3:00 AM ETThe 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

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