Economy 53,073 Posted April 12, 2019 Share Posted April 12, 2019 https://www.google.ca/amp/s/www.cnbc.com/amp/2019/02/27/norway-wealth-fund-picked-up-22-billion-of-stocks-during-2018-rout.html After a Steller 2017 in which Norway's Wealth Fund (largest in the world) grew 13.7% a total of $131 Billion, in 2018 it took a loss of 6.1% or about $65 Billion or so At its peak in 2017 Norway had over $1.1 Trillion in savings/assets... The fund despite 2018 losses is still worth $1 Trillion Norway took the dive in US stocks in December as an opportunity to buy up equity with a purchase of over $22 Billion in the US alone in December Link to post Share on other sites More sharing options...
Economy 53,073 Posted April 12, 2019 Author Share Posted April 12, 2019 Most if the world's Countries: How do we structure and keep this out of control debt from exploding any further. Do we cut services or raise taxes? Norway: We already have free healthcare and highest standard of living in the world but still $1.1 Trillion left over cash with only 5 Million people? Where do we invest???? Link to post Share on other sites More sharing options...
Mr Judas 4,106 Posted April 12, 2019 Share Posted April 12, 2019 3 minutes ago, Economy said: Most if the world's Countries: How do we structure and keep this out of control debt from exploding any further. Do we cut services or raise taxes? Norway: What do we do with this $1.1 Trillion cash with only 5 Million people? Invest here or there???? Binch please, can they invest in me Link to post Share on other sites More sharing options...
Luc 4,776 Posted April 12, 2019 Share Posted April 12, 2019 Wouldn't investing this money in their own country just lead to currency depreciation/high inflation unless they join the Eurozone? Only if they invest it when economic activity is suboptimal will it not lead to inflation, but periods of high unemployment are bound to be periods of low stock prices generally.. Link to post Share on other sites More sharing options...
Economy 53,073 Posted April 12, 2019 Author Share Posted April 12, 2019 6 hours ago, Luc said: Wouldn't investing this money in their own country just lead to currency depreciation/high inflation unless they join the Eurozone? Only if they invest it when economic activity is suboptimal will it not lead to inflation, but periods of high unemployment are bound to be periods of low stock prices generally.. Inflation yes, currency depreciation no. If it was kept in their nation and invested domestically the value would actually increase Buying foreign assets and currencies is actually a way of keeping ur currency down. China is accused of doing it all the time Inflation and currency exchange rates may Influence eachother to a degree but they are not the same thing and don't necessarily always go in the same direction It's like when an economy is strong and as a result it's inflationary pressures go up but when an economy is strong it's currency also tends to rise relative to others (even tho their inflation rate increased) Link to post Share on other sites More sharing options...
Luc 4,776 Posted April 12, 2019 Share Posted April 12, 2019 3 hours ago, Economy said: Inflation yes currency depreciation no. If it was kept in their nation and invested domesticallg the value would actually increase Buying foreign assets and currencies is actually a way of keeping ur currency down. China is accused of doing it all the time Inflation and currency exchange rates may Influence eachother to a degree but they are not the same thing and don't necessarily always go in the same direction It's like when an economy is strong and as a result it's inflationary pressures go up but when an economy is strong it's currency also tends to rise relative to others (even tho their inflation rate increased) Ah yes, currency appreciation, leading to lower exports however. Is there a way for Norway to invest the money in their own country without catching the 'Dutch disease'? Link to post Share on other sites More sharing options...
Economy 53,073 Posted April 12, 2019 Author Share Posted April 12, 2019 1 hour ago, Luc said: Ah yes, currency appreciation, leading to lower exports however. Is there a way for Norway to invest the money in their own country without catching the 'Dutch disease'? I don't think so tbh. The moment they stop the outflow of their currency by exchanging their currency to buy foreign assets the downward pressure on the Norway currency would stop and it would appreciate Given the massive size of their financial assets especially relative to size of their economy and population, I would assume the impact would be quite significant Their wealth fund is nearly triple their GDP that's 3 years worth of economic output... How they move that money around and what currencies are exchanged would have a sizable impact Link to post Share on other sites More sharing options...
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