Imitation Competence
As his legions of fans never stop reminding everyone, our current PM Mark Carney was the central banker for two G7 countries.
The implication being – we’re in good hands here in Canada. At least when it comes to, you know, financy-type things.
Or not.
A headline from the G and M on April 27:
Politics Insider: Canada will launch sovereign wealth fund, Carney says
Then the first two sentences of the article:
Prime Minister Mark Carney says Canada will launch its first ever national sovereign wealth fund, an investment vehicle he says will ensure all Canadians reap the rewards of government support for major new projects.
The Canada Strong Fund will begin with an initial endowment of $25-billion, Carney told a news conference in Ottawa today.
According to the dictionary, an ‘endowment’ is Funds or property donated to an institution, individual, or group as a source of income.
So, Canada has found a sugar-daddy….er, donor?
Cool. I wonder who it is?
Before getting further into this Carney idea, I did a little research on sovereign wealth funds in general.
First, there are many.
The United Arab Emirates has a sovereign wealth fund, called Emirates Investment Authority. According to Business Chief, it has $US87B in funds currently, putting it well down the list of Middle East sovereign wealth funds. The Abu Dhabi Investment Authority has almost 10 times that.
Who was EIA’s sugar daddy? Or Abu Dhabi’s?
It’s hard to find that out. According to Wikipedia, which should not be taken too seriously regarding anything serious, ADIA’s goal was to invest the Abu Dhabi government’s surpluses across various asset classes, with low risk.
Government surpluses? Now there’s a concept. Canada has not had a federal government budget surplus since 2007, with Stephen Harper as PM.
Norway has an SWF, too. According to its own website:
Norway’s Government Pension Fund Global holds the title of the largest sovereign wealth fund in the world, in terms of total assets under management. Recently, the fund’s assets have surpassed USD $1.6 trillion, a staggering amount.
This monumental size is a result of decades of careful saving and investment of surplus revenues from the country’s oil and gas sector.
There’s that word ‘surplus’ again.
Closer to home, the province of Alberta has The Alberta Heritage Savings Trust fund, established in 1976 under former premier Peter Lougheed. Norway didn’t start theirs until 1990. Yay Alberta.
Here’s a look at how the amount in the fund has changed over time.

It grew nicely for the first 10 years, but since…..kinda flat, eh? I don’t think this is inflation-adjusted, either.
This was created initially by a transfer of $1.5 billion from the Province’s General Revenues (i.e, from Alberta taxpayers) but they then committed that 30 per cent of the province’s annual non-renewable resource revenue would go into the fund.
No sign of the word ‘surplus’ there, just a commitment to put 30% of non-renewable resource revenues into it. I’m pretty sure all those Middle East sovereign wealth funds also received funding from oil sector revenues, too.
So, Norway and the Middle Eastern countries, along with Alberta (if somewhat ineptly), found themselves earning greatly increased revenues from their petroleum sectors way back when. They decided to create glorified savings accounts in which to place some or all of those revenues, so the funds in those accounts could then be invested to create even bigger funds. Norway’s fund indicates it invests in bonds, stocks, real estate, you name it. What I don’t get is – what do these SWFs do with all this accumulated wealth, other than re-invest it?
My pension fund looked much the same as these funds, if much smaller. However, it’s sole purpose was very clear – to provide me with income in my days as a wastrel retiree. I can find nothing concrete regarding a purpose for any of these SWFs, just virtuous phrases like these:
‘We work to safeguard and build financial wealth for future generations.’ (Norway)
‘Our main objective is to advance the UAE and its citizens. We will invest the country’s income in pursuit of this goal and, in doing so, successfully build our nation.’ (Abu Dhabi)
‘EIA is mandated to strategically invest funds allocated by the Federal Government to create long-term value for the UAE and contribute to the future prosperity of the country.’ (UAE)
Saudi Arabia’s sovereign wealth fund invested in a new golf league that offered professional golfers huge paydays even if they didn’t win any tournaments. That experiment just ended, with the fund pulling funding and the league likely shutting down. Did that investment benefit the citizens of Saudi Arabia?
If these are ‘rainy day’ funds, what counts as a rainy day? You can be sure it is not the citizens of the various countries with these funds that get to decide when or what the money is spent on. The most positive statement I can find about this is that Norway’s fund is called The Government Pension Fund of Norway. Does that mean it pays for pensions for all Norwegians? That would be a nice benefit, if so, but nowhere is that explicitly said.
So I admit I find the general idea of a sovereign wealth fund dubious. It is an accumulation of – let’s call them ‘unanticipated revenues’ – which are then re-invested in various ways to get the SWF to grow even larger. That they actually benefit the typical citizen of any of the countries that have them is not at all clear, unless they really are being used to fund universal pensions or a healthcare system or such. That they are so used is not clearly stated by any of them.
Given that, back to the question the above Globe article first put in my head: why and how is Carney getting into this game? In Canada resource revenues belong to provinces, so the federal government has no petroleum sector revenues to put into such a fund. What then is to fund this entity, which he says he wants to call The Canada Strong Fund? I don’t really believe Mr. Carney had an anonymous donor come along and offer us $25 large to get it going. If that initial $25B is coming from government revenues, then Carney is going to borrow it in the bond market, because the feds are running a deficit already.
Alternatively, here’s a line from a later Globe story: ‘Federal Transport Minister Steven MacKinnon said Ottawa’s efforts to potentially monetize airports are in the early stages, in response to questions about vague references in this week’s fiscal update that linked such options to a proposed new sovereign wealth fund.’
Oh.
For those of you who have never been a central banker, ‘monetize’ means ‘sell’. So, Canada is perhaps going to sell its airports to fund the CSF. This leads me to wonder – what else might Mr. Carney’s now-Liberal-majority government seek to sell?
I checked, and the Government of Canada claimed it held some $127B in non-financial assets in 2025. No details on what is in there, but airports would be one item, I suppose.
According to another Carney quote from the Globe:
“Over time, the fund will grow through asset recycling and reinvestment, creating even greater opportunities for future generations,” he said, adding that Canadians will be able to invest directly in the fund if they wish.
Oh, yea – sign me up for a $100 donation to that: ‘greater opportunities for future generations.’ Sure. Do I get a tax receipt?
I’m sure the ex-central banker could also explain just what is ‘asset-recycling’.
[Ok, I checked. ‘asset recycling refers to the practice of selling off underperforming or idle assets and using the proceeds to invest in new projects or additional assets that have a greater potential to generate returns.’ Brilliant, eh?]
So Carney is proposing to do pretty much what those other countries with SWFs did years ago. He is going to start up an entity that will take some money, invest it in whatever and then re-invest and recycle it to make said fund grow and grow, for purposes just as vaguely noble as all those earlier SWFs proclaim. The one difference is that he has no money with which to start this entity, other than borrowing more and selling whatever assets Canada’s government already owns. One could see this as a poor-country imitation of an SWF, I guess.
I have seen a similar movie to this in the past, so I offer another perspective.
When I finished my doctorate and had in hand a very welcome offer of employment from The University of Western Ontario, the ex and I had been earning very little income for some time. The income from my new faculty position would not start for months, yet we had to find a way to get ourselves and our infant son – and our stuff – from Indiana to London, Ontario. What to do?
We put together all the precious metal we owned, which wasn’t much – my high school class ring and some US silver dollars, as I recall. Then we went to a Holiday Inn by the highway, where some dudes had advertised they would be buying such things. A guy sitting on a bed in a hotel room with a .38 by his side (loaded? I have no idea) weighed it all up and gave us $US80 in exchange. Not a great sum, equivalent to about $US340 in 2026, but it helped get us to Canada.
That was an act of necessity, if not desperation, on our part. We had to get through a couple of months without income and get to Canada. Fortunately, we had not accumulated a big pile of debt, and I can’t say we missed the ring or coins later in life. I mean, it’s not like we sold an airport.
Final Question: What is Carney’s goal in starting this CSF?
Perhaps he just wants Canada to do what all the cool kids are doing. Fake it ‘til you make it.
Or maybe he thinks borrowing more and selling stuff to fund a SWF that will ‘create opportunities for future generations’ will enhance his reputation as a financial wizard, and thus win him the next election. Record deficits? Nothing to see here, folks, but just look at our Canada Strong Fund.
Maybe it should be called The Carney Slush Fund.












































































