President Donald Trump (R) wants a sovereign wealth fund for “promot[ing] fiscal sustainability,” “establish[ing] economic security for future generations, and promot[ing] United States economic and strategic leadership internationally.” This is a slush fund with a gussied up label.

It could work, nonetheless, under a very narrow Critical Item-level set of circumstances.

• slush fund dollars can be loaned only, not committed as grants or investments
• slush fund purposes and scope clearly defined and limited
• scope and types of enterprises to which slush fund dollars may be loaned clearly defined and limited
• slush fund loans to be made at annually adjusting rates equal to the prime rate plus 12.75%, which is roughly comparable to today’s credit card interest rate markup
• slush fund loans to be repaid in full within two years
• principle to be returned to the slush fund; interest payments to be sent to Treasury for the explicit purpose of paying down the national debt
• bankruptcy can be used to discharge slush fund loans, but only via liquidation bankruptcy

Those are stiffly limiting criteria for a Federal government slush fund, but the WSJ editors are correct in every respect in their concerns about the dangers of such a fund. Setting up such a device under these criteria is likely a pipe dream chasing a chimera, but the idea is worth serious consideration: under these criteria, the idea could work; alternatively, the idea could be put to rest for a useful period of years.