Norway's Sovereign Wealth Fund
#1
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Norway's Sovereign Wealth Fund
Norway Announces Massive Withdrawals From Sovereign Wealth Fund To Cover Deficits | Zero Hedge
Yikes! It's just as well to have something held back for a rainy day, but the Fund isn't going to last long at this rate of withdrawal. Good luck, Norskies: I have my fingers crossed for you all, especially my Norwegian grandchildren!
Yikes! It's just as well to have something held back for a rainy day, but the Fund isn't going to last long at this rate of withdrawal. Good luck, Norskies: I have my fingers crossed for you all, especially my Norwegian grandchildren!
#2
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Re: Norway's Sovereign Wealth Fund
We could have had a Sovereign Wealth Fun but the Tories said NO
#3
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Re: Norway's Sovereign Wealth Fund
There are actually quite a few Sovereign Wealth Funds around the world - see the list at this link:
http://en.wikipedia.org/wiki/Sovereign_wealth_fundWe could and should have had one here in Cayman, too, funded by our tax-haven revenues; but our politicians wouldn't give up their local vanity projects, and the UK government wouldn't push the idea.
http://en.wikipedia.org/wiki/Sovereign_wealth_fundWe could and should have had one here in Cayman, too, funded by our tax-haven revenues; but our politicians wouldn't give up their local vanity projects, and the UK government wouldn't push the idea.
#4
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Re: Norway's Sovereign Wealth Fund
So, a $885 billion sovereign wealth fund pays out $15 billion. Yikes at a growth rate of 2% the fund keeps getting bigger. Paying out, for education, health, environment and other social issues is what the fund is supposed to do. I think your grandchildren are going to be OK Gordon.
And as for Zero Hedge as originally mentioned:
'Zero Hedge is registered under the name Georgi Georgiev, a business partner of Krassimir Ivandjiiski. In April 2016, the authors writing as "Durden" on the website were reported by Bloomberg News to be Ivandjiiski, Tim Backshall (a credit derivatives strategist), and Colin Lokey'.
One could go on....and obviously one should come to their own conclusion as to the validity of their opinions. Personally, I'm still in the world is flat camp.
And as for Zero Hedge as originally mentioned:
'Zero Hedge is registered under the name Georgi Georgiev, a business partner of Krassimir Ivandjiiski. In April 2016, the authors writing as "Durden" on the website were reported by Bloomberg News to be Ivandjiiski, Tim Backshall (a credit derivatives strategist), and Colin Lokey'.
One could go on....and obviously one should come to their own conclusion as to the validity of their opinions. Personally, I'm still in the world is flat camp.
Last edited by Capo Boi; Nov 11th 2016 at 10:39 pm.
#5
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Re: Norway's Sovereign Wealth Fund
Its a complicated business. Norwegian wealth fund for me is a strange concept. How does the average Norwegian benefit from a wealth fund owning hotels and real estate in NY? I think a few more decent roads or ensuring the sea does not leak into the main oslo tunnel would be more practical for the average Norwegian citizen or resident.
Its all an illusion otherwise.
I could take this so called wealth funs more seriously if Norway had no debt, but it does. Thats hard to figure for the average fellow now isnt it.
Hige wealth fund securing the future of all Norwegians, but, eh wait a minute, how come there is a pile of debt eroding the wealth fund and nations treasury.
Oh yes its because the govt has to go to the markets to be allowed to print more of their own money and then pay an interest payment on it. See clear as mud.
I wish some financial chap would explain this. I mean explain it, not justify it that is. HNY everyone.
Its all an illusion otherwise.
I could take this so called wealth funs more seriously if Norway had no debt, but it does. Thats hard to figure for the average fellow now isnt it.
Hige wealth fund securing the future of all Norwegians, but, eh wait a minute, how come there is a pile of debt eroding the wealth fund and nations treasury.
Oh yes its because the govt has to go to the markets to be allowed to print more of their own money and then pay an interest payment on it. See clear as mud.
I wish some financial chap would explain this. I mean explain it, not justify it that is. HNY everyone.
#6
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Re: Norway's Sovereign Wealth Fund
'Zero Hedge is registered under the name Georgi Georgiev, a business partner of Krassimir Ivandjiiski. In April 2016, the authors writing as "Durden" on the website were reported by Bloomberg News to be Ivandjiiski, Tim Backshall (a credit derivatives strategist), and Colin Lokey'.
One could go on....and obviously one should come to their own conclusion as to the validity of their opinions. Personally, I'm still in the world is flat camp.
One could go on....and obviously one should come to their own conclusion as to the validity of their opinions. Personally, I'm still in the world is flat camp.
#7
Re: Norway's Sovereign Wealth Fund
Its a complicated business. Norwegian wealth fund for me is a strange concept. How does the average Norwegian benefit from a wealth fund owning hotels and real estate in NY? I think a few more decent roads or ensuring the sea does not leak into the main oslo tunnel would be more practical for the average Norwegian citizen or resident.
Its all an illusion otherwise.
I could take this so called wealth funs more seriously if Norway had no debt, but it does. Thats hard to figure for the average fellow now isnt it.
Hige wealth fund securing the future of all Norwegians, but, eh wait a minute, how come there is a pile of debt eroding the wealth fund and nations treasury.
Oh yes its because the govt has to go to the markets to be allowed to print more of their own money and then pay an interest payment on it. See clear as mud.
I wish some financial chap would explain this. I mean explain it, not justify it that is. HNY everyone.
Its all an illusion otherwise.
I could take this so called wealth funs more seriously if Norway had no debt, but it does. Thats hard to figure for the average fellow now isnt it.
Hige wealth fund securing the future of all Norwegians, but, eh wait a minute, how come there is a pile of debt eroding the wealth fund and nations treasury.
Oh yes its because the govt has to go to the markets to be allowed to print more of their own money and then pay an interest payment on it. See clear as mud.
I wish some financial chap would explain this. I mean explain it, not justify it that is. HNY everyone.
Given the current paltry interest rates on governmental debt it would be insane to use the wealth fund to pay off the deficit. The NWF was set up for long term returns to Norwegians, not for support of politicians and corporations.
The UK went that route under Thatcher. Bad idea.
#8
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Re: Norway's Sovereign Wealth Fund
Well, i just don't get it, how can the average Norwegian be up to his/her bottom lip in debt and at the same time all this lovely money held in trust by their govt. I must be a simple fellow. As far as I can see The vast majority of Norwegians have raging amounts of personal debt and at the same time have a wealth fund which they have somehow ownership of. It certainly does not appear to be making them any wealthier. The roads and infrastructure is terrible. The public transport is hugely expensive, cars have a 100% levy on arrival in the country. I wont say more , except I think there is little to admire regarding their supposed wealth fund policies. I mean for goodness sake they don't even provide warm dinners for the schoolkids.
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Re: Norway's Sovereign Wealth Fund
Well, i just don't get it, how can the average Norwegian be up to his/her bottom lip in debt and at the same time all this lovely money held in trust by their govt. I must be a simple fellow. As far as I can see The vast majority of Norwegians have raging amounts of personal debt and at the same time have a wealth fund which they have somehow ownership of. It certainly does not appear to be making them any wealthier. The roads and infrastructure is terrible. The public transport is hugely expensive, cars have a 100% levy on arrival in the country. I wont say more , except I think there is little to admire regarding their supposed wealth fund policies. I mean for goodness sake they don't even provide warm dinners for the schoolkids.
#10
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Re: Norway's Sovereign Wealth Fund
I'm not a financial chap but surely it's obvious? The Norwegian Wealth fund invests in the things like you mention for the same reason that the Ontario Teacher's Pension Fund owned 51% of the Maple Leafs and other non-profits invest in similar stuff. To provide capital growth at a higher rate than expenses growth. The NWF provides beneficial revenue streams to Norwegians in a myriad of ways on an on-going basis fuelled (if you'll excuse the pun) by responsible hoarding of oil revenues and sensible investment policies.
Given the current paltry interest rates on governmental debt it would be insane to use the wealth fund to pay off the deficit. The NWF was set up for long term returns to Norwegians, not for support of politicians and corporations.
The UK went that route under Thatcher. Bad idea.
Given the current paltry interest rates on governmental debt it would be insane to use the wealth fund to pay off the deficit. The NWF was set up for long term returns to Norwegians, not for support of politicians and corporations.
The UK went that route under Thatcher. Bad idea.
What I don't know is does the fund currently payout for Norway current benefits or projects at all ? In Alaska if I recall all residents receive something from their fund.
#11
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Re: Norway's Sovereign Wealth Fund
So here we are. A hot dinner at school for an 8 year when its -15c is too much to ask from a country that regularly boasts the best country in the world to live in, and has the highest or top 3 Richest by population score on the planet. Lets just see it for what it is. Scandalous. Just to be clear. There is no facility or will to feed the kids hot food. Its not a matter of payment. I guess it keeps them tough and resilient though.
We appear to live in a world where we are told government and personal debt is bad for some countries, ie UK, but good for others ie Norway. Carve up the figures any way you want. The truth is Debt is bad. According to the logic here we should simply borrow money to invest, which can then be used to service and payback the loans. Its genius. Does the IMF world bank and the Bank of England governor know this; after all this is effectively what Norway is doing. It matters not whether you have the money to start with or not.
Its clear tat once you take away the Norwegian national debt figure from the National wealth fund, then the national wealth fund is not so wealthy after all. So effectively they are borrowing to invest. This underlines my point earlier.
I think this wealth fund banner allows the Norwegian Govt to fool many of its citizens and the rest of us into thinking they and Norway is some kind of wonderland of financial prudence. Fact is most Norwegians are encouraged into huge debt by having incredibly easy access to loans to service astronomical car prices and mortgage demands. Its all going to end very badly when some institution or other decides and figures out it can make more money pulling in its loans and then using the money to invest. Or maybe this model of investing making you more money is a myth. Capital Interest is hard to beat as a money making model after all.
I think this is all too much for me. Im just a simple guy. All this financial talk is best left to guys in fancy suits with accountancy and economic degrees. After all think of the mess someone like me would make of the economy if I had any input.
Im just going to watch some celebrity TV. And leave it to the clever financial people. Im sure they will manage to sort it all out and do whats best for all of us. Cold sandwiches and a mountain of personal and national debt notwithstanding of course.
We appear to live in a world where we are told government and personal debt is bad for some countries, ie UK, but good for others ie Norway. Carve up the figures any way you want. The truth is Debt is bad. According to the logic here we should simply borrow money to invest, which can then be used to service and payback the loans. Its genius. Does the IMF world bank and the Bank of England governor know this; after all this is effectively what Norway is doing. It matters not whether you have the money to start with or not.
Its clear tat once you take away the Norwegian national debt figure from the National wealth fund, then the national wealth fund is not so wealthy after all. So effectively they are borrowing to invest. This underlines my point earlier.
I think this wealth fund banner allows the Norwegian Govt to fool many of its citizens and the rest of us into thinking they and Norway is some kind of wonderland of financial prudence. Fact is most Norwegians are encouraged into huge debt by having incredibly easy access to loans to service astronomical car prices and mortgage demands. Its all going to end very badly when some institution or other decides and figures out it can make more money pulling in its loans and then using the money to invest. Or maybe this model of investing making you more money is a myth. Capital Interest is hard to beat as a money making model after all.
I think this is all too much for me. Im just a simple guy. All this financial talk is best left to guys in fancy suits with accountancy and economic degrees. After all think of the mess someone like me would make of the economy if I had any input.
Im just going to watch some celebrity TV. And leave it to the clever financial people. Im sure they will manage to sort it all out and do whats best for all of us. Cold sandwiches and a mountain of personal and national debt notwithstanding of course.
#12
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Re: Norway's Sovereign Wealth Fund
So here we are. A hot dinner at school for an 8 year when its -15c is too much to ask from a country that regularly boasts the best country in the world to live in, and has the highest or top 3 Richest by population score on the planet. Lets just see it for what it is. Scandalous. Just to be clear. There is no facility or will to feed the kids hot food. Its not a matter of payment. I guess it keeps them tough and resilient though.
We appear to live in a world where we are told government and personal debt is bad for some countries, ie UK, but good for others ie Norway. Carve up the figures any way you want. The truth is Debt is bad. According to the logic here we should simply borrow money to invest, which can then be used to service and payback the loans. Its genius. Does the IMF world bank and the Bank of England governor know this; after all this is effectively what Norway is doing. It matters not whether you have the money to start with or not.
Its clear tat once you take away the Norwegian national debt figure from the National wealth fund, then the national wealth fund is not so wealthy after all. So effectively they are borrowing to invest. This underlines my point earlier.
I think this wealth fund banner allows the Norwegian Govt to fool many of its citizens and the rest of us into thinking they and Norway is some kind of wonderland of financial prudence. Fact is most Norwegians are encouraged into huge debt by having incredibly easy access to loans to service astronomical car prices and mortgage demands. Its all going to end very badly when some institution or other decides and figures out it can make more money pulling in its loans and then using the money to invest. Or maybe this model of investing making you more money is a myth. Capital Interest is hard to beat as a money making model after all.
I think this is all too much for me. Im just a simple guy. All this financial talk is best left to guys in fancy suits with accountancy and economic degrees. After all think of the mess someone like me would make of the economy if I had any input.
Im just going to watch some celebrity TV. And leave it to the clever financial people. Im sure they will manage to sort it all out and do whats best for all of us. Cold sandwiches and a mountain of personal and national debt notwithstanding of course.
We appear to live in a world where we are told government and personal debt is bad for some countries, ie UK, but good for others ie Norway. Carve up the figures any way you want. The truth is Debt is bad. According to the logic here we should simply borrow money to invest, which can then be used to service and payback the loans. Its genius. Does the IMF world bank and the Bank of England governor know this; after all this is effectively what Norway is doing. It matters not whether you have the money to start with or not.
Its clear tat once you take away the Norwegian national debt figure from the National wealth fund, then the national wealth fund is not so wealthy after all. So effectively they are borrowing to invest. This underlines my point earlier.
I think this wealth fund banner allows the Norwegian Govt to fool many of its citizens and the rest of us into thinking they and Norway is some kind of wonderland of financial prudence. Fact is most Norwegians are encouraged into huge debt by having incredibly easy access to loans to service astronomical car prices and mortgage demands. Its all going to end very badly when some institution or other decides and figures out it can make more money pulling in its loans and then using the money to invest. Or maybe this model of investing making you more money is a myth. Capital Interest is hard to beat as a money making model after all.
I think this is all too much for me. Im just a simple guy. All this financial talk is best left to guys in fancy suits with accountancy and economic degrees. After all think of the mess someone like me would make of the economy if I had any input.
Im just going to watch some celebrity TV. And leave it to the clever financial people. Im sure they will manage to sort it all out and do whats best for all of us. Cold sandwiches and a mountain of personal and national debt notwithstanding of course.
1. If you earn more on your investments than you pay on the debt. it makes sense to keep the investments and not pay off the debt. ( Of course one has to look at risk factors etc).
2. Keeping a reserve for a rainy day always makes sense. If for example I have 10,000 pounds, and 9,000 in debt to pay, would I pay off debt immediately and only have 1,000 pounds reserve for emergencies or unforeseen expenses ? I don't know particulars of Norway but makes sense to have a reserve for the future. One can always find 1,000 things that should be paid for, but just like a personal budget we cant always buy everything we want.
#13
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Re: Norway's Sovereign Wealth Fund
Thanks Morpeth.
I do think you may be running the risk of over-simplifying now Me? Im off to watch Geordie shore now.
I do think you may be running the risk of over-simplifying now Me? Im off to watch Geordie shore now.