Risk Rap

Rapping About a World at Risk

The Redistribution of Global Wealth

Singapore’s Fountain of Wealth

During 2007 the collective value of Sovereign Wealth Funds increased 24%. In aggregate the funds hold a total of $3.5 trillion and are growing fast.

The source of this wealth is massive surplus trade balances as in the case of China, the world’s largest SWF. This is followed by Russia and Kuwait whose source of wealth is oil and natural gas. The $3.5 trillion in assets are greater then the GDP’s of countries such as Great Britain, France or Germany.

Consider the banking crisis in the west. Goldman Sachs estimates that credit losses will approximate $1.2 trillion. These staggering amounts of wealth accumulation and wealth depletion is a startling indication of how the earths axis of geopolitical power is tilting away from the west.

Risk: credit, banking, geopolitical

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April 30, 2008 - Posted by | China, credit crisis, sovereign wealth funds | , , , , , ,

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