Connecting dots – if you looked at that list of Sovereign funds, Libya is near the top. The fund is managed by Qadaffi’s son (poorly). Best guess is it is holding about $50 billion of that in cash in Arab controlled banks beyond the reach of US, British or Swiss banking “freezes”.
But more of a problem for Europe is that a lot of Libyan money is propping up the banks in Italy – one of the counties at risk of drowning in debt. Italy, Russia and China have significant concerns about the actions the United States might propose, like an attack on Libya’s air defenses. Pawn to Queen 4. Keep an eye on the Italian 10 year bond rate.
