The government is pretty bad at nearly everything it does, but the one thing the government is REALLY bad at is “investing.” This always turns into corporate welfare boondoggles that enrich political insiders and fleece taxpayers – as most recently seen with the Intel and Solyndra “investment” scandals.

So our jaws dropped when we read this Semafor story that the Pentagon wants to create a $200 billion “economic defense unit.” The feds are looking for investment banking partners to participate.

We’re told this could be the early stage of establishing an American-version of a sovereign wealth fund.

The idea is ludicrous because how can a government with a near $40 trillion debt have extra cash for “investment?” We’re not Saudi Arabia with hundreds of billions of extra petro-dollars stored in the safe. This adventure would better be described as a sovereign DEBT fund.

And by the way: Isn’t this the same Pentagon that is demanding a $200 billion supplemental funding bill from Congress? If the Pentagon has $200 billion lying around to play investment banker, why do they need $200 billion for the Iran conflict?