By Steven R. Weisman
The International Herald Tribune
August 21, 2007
WASHINGTON: For years, the Bush administration has shrugged off concerns about the trillions of dollars that the United States owes to China, Japan and oil-producing countries in the Middle East, arguing that these debts give no undue leverage to foreign governments.
But at a time of global financial instability, the administration has started to worry.
U.S. concerns – like those of many European policy makers – focus on a growing but little understood trend of foreign governments converting their debt holdings into “sovereign investment funds” ….