As I watch crude oil prices move above $107 per barrel, I can't help but wonder if the government shouldn't intervene. What if the US had a Sovereign Wealth Fund, that competed with the major oil producers of the world, and benefited every American as the price of oil skyrocketed? This could be a US financed Sovereign Wealth Fund, with a motive of minimizing costs and maximizing benefits to all Americans. It would have the best interests of all Americans at heart. This Sovereign Wealth Fund would be a resource to support universal health care, medicare, medicaid, education and all other hoped for rights.
This could improve competition towards alternative energy sources and help promote increased productivity and improvement in all aspects of the economy. It could eliminate some of the greed and speculation that may be driving asset pricing higher than it should be. It could help mitigate the bubbles and the volatility that we see around us in asset pricing and in currency trading.
It seems to me that the concentration of wealth in the world needs to be mitigated. Since I believe that there is a tendency by everyone to protect their wealth, there is an inherent conflict of interest between those that have the wealth and those that need the wealth. The natural tendency of people is to hoard and protect their wealth and their security.
By placing the assets of a Sovereign Wealth Fund in the hands of the best managers in the world, would this increased competition benefit all? Would it help mitigate the pricing bubbles and speculation that seems to be inherent in our current system?
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