DK Matai - April 08, 2008
Dear Friends, it was immensely valuable to participate in the recent Sovereign Wealth Funds (SWF) summit jointly organised by the OECD and the City of London. The subject of SWFs is increasingly significant and includes several thorny issues...


We are grateful to the distinguished ATCA contributor, John Willman, UK Business Editor, Financial Times, for his welcome submission to initiate this crucial Socratic dialogue.
In regard to the immediate re-capitalisation issues facing large financial institutions and the role of SWFs, John points out, "the first big rescue from SWFs came in November when Citigroup of the US raised USD 7.5bn from the Abu Dhabi Investment Authority. In December, Switzerland's UBS raised CHF 11bn from the Government of Singapore Investment Corporation and CHF 2bn from a Saudi Arabian investor. It was followed by Morgan Stanley, which raised USD 5bn from China Investment Corporation. Just before Christmas, Singapore's Temasek agreed to invest USD 4.4bn in Merrill Lynch shares with an option to buy another USD 600m by the end of March. And as already mentioned, there was the USD 5bn invested in Citigroup and Merrill by the Kuwait Investment Authority."
Dear DK and Colleagues
A quick check on the Factiva media database shows that the first mention of sovereign wealth funds in the business press was in late 2006. But it was less than a year ago that the funds really impinged on the public consciousness, with all but 11 of the 4,926 mentions revealed by my search coming after April 1, 2007.
In fact, most people probably first learnt about sovereign wealth funds when they went to see The Simpsons Movie, which I can't recommend too highly. I won't bore you with a long account of the plot, but Homer and his family are forced to flee Springfield and they go to Alaska.
To access the full article please visit mi2g.net.
[ENDS]
1. To access the ATCA Open Socratic Dialogue underway on LinkedIn please visit here.
2. To become a member of ATCA Open on LinkedIn please visit here.
We welcome your thoughts, observations and views. Thank you.
With love and warm wishes to you and family
DK with family
DK's online community participation includes:
Open ATCA, IntentBlog, Holistic Quantum Relativity Group, LinkedIn, Facebook, Ecademy, Xing, Spock, A&B Blog and QDOS. [Profile in pdf]
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Posted by DK Matai at April 8, 2008 04:50 AM
Perhaps this is all not pertinent. I doubt there are many on the planet that can fathom or comprehend the changes and transformation that are coming and the speed at which it will occur. The current financial systems are going to be replaced they are inadequate to meet the rate of change and evolutionary cycles of humanity and business and they also currently allow for a disproportionate extraction of created wealth. The operating costs and fees for participation are excessive. System requirements for the new systems have been specified in summary and it is time for reconfiguration. One nuance being a massive decentralization of control, with a transfer of ownership to the collective with protection for individual freedoms..
All the left brain functionality can be performed for the cost of electricity, maintenance of system intelligence, and a little redundant hardware and storage. Operating Parameters, tolerances, risk assessments, formulas, thresholds all defined and supported on a special transaction tracking system, with compartmentalized access, and anonymous certification with verification etc. This leaves only the right brain function and human intelligence analysis to be provided as a service.
The financial systems must be capable of evolving rapidly and responding to real time data with “measurements” and published algorithms. Detail is not as important as are measurements and indicators of state. Potential, probable factored, Revenue channels should equal debt channels using a time factor . All monetary units should have a tangible “basis” not an intangible perceptual basis.
A universal system
Chief Instigator
Office of Instigation
Benevolent Intelligence Division
We know what we are seeing, the old consciousness is dying, and the systems built upon it are collapsing. As awareness spreads that which was dependant on ignorance cannot last. The new holistic designed systems are coming to take the place of the old and support the new consciousness. We are in the process of redefining. There is nothing to fear if we do not resist evolution, since there is no stopping it, it is best to embrace it, the ride is better. Those that cling to the old fictions will expire with them.
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(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)Perhaps this is all not pertinent. I doubt ther
It makes sense that SWF's would prefer to inves
It makes sense that SWF's would prefer to invest in strategic assets, since the funds themselves are created and maintained with strategic assets income. The SWF's know how to manage such assets, and understand that, as investments, they may often be less volatile and better-protected than other assets, because of their broad global importance.
Though I'm not naive about the potential risks, I hope the world will continue to allow large SWF investments. For one thing, they're a powerful means of redressing power imbalances that linger from the past. Those who are currently in power will feel some of their power slipping away, and some destabilization is bound to occur. But ultimately it's always in the interest of SWF's to support the bases for their new income.
Continued large SWF investments can help stabilize the global economy by knotting a strong, wide-flung net from the practical wisdom and altruism required to grow the assets, and the selfishness that wants the assets to grow. When there are local threats, local meshes will tend to tighten to constrain the threats, if they have the economic resources to act.
Imagine what SWF investments could do if there were some creative thinking going on in their boardrooms, and the current powers-that-be dropped some of their fears... here's a simplistic scenario: Fifteen years ago, SWF's invested in Afghanistan's fruit economy. They knew pomegranate juice was going to be a REALLY BIG thing. They pushed for peace, to reduce the strain on their orchards, and their processing plants and shipping networks. Because they had big SWF money in place, they had the means to support their push for peace and resistance to violence. Afghani's far and wide benefited from the SWF's conservative (in the true sense, as conservators) management of the fruit economy. Now, fifteen years later, pomegranate juice has become recognized as one of the two most healthful fruit juices in the world. Its price has soared. It's found markets worldwide, and all of them upscale, so it pulls in big quantities of Euros, dollars and yen, and rains them down in northwest Asia. Kabul doesn't look ragged anymore. Afghani poppy fields don't make the news these days. Heroin addiction is down. Europeans, Americans and Japanese think more clearly and have more compassion for others, because their baseline health is better, because... they drink Afghani pomegranate juice for breakfast every day!! And the kites are flying on New Year's Day, the runners are laughing, and there are more than fifty boys participating, as in the old days before the wars. That's a very simplistic example of what SWF money could do, if less fear and more imagination were applied. But really, it could be done. And it's green. The liquid asset called pomi joice is a form of directly-consumable renewable energy. I'll bet the leftover shells and pith would make superb waste-to-energy fuel, too. And natural dyes, and tannin for leather preparation, etc...
(Ever the optimist, am I.)