A debate is heating up over the possible dangers posed by Middle East sovereign wealth funds. Many Arab states, flush with petrodollars are gobbling up U.S. securities and corporate debt. Should we be worried?
New think tanks and websites are addressing this crucial issue. Shariah Finance Watch is one good one. Terror Finance Blog is another.
Columnist George Will is not worried. He writes in the Washington Post that, “because U.S. policy endorses the free flow of capital around the world, inflows of foreign investments should be welcome.”
As I recently argued in FrontPageMag.com, we must encourage free markets, but may be “working under the mistaken assumption that our new financial partners are ultimately as invested in the world financial markets are we are.”