Posted on 08/31/2016 7:38:54 AM PDT by Lorianne
Saudi Arabia isn't the only oil-dependent nation struggling to make ends meet in the wake of weak oil prices. For the first time since its establishment in 1996, the Norwegian government is starting to withdraw money from its sovereign wealth fund to cover government expenses. In fact, in the first half of 2016 the government has withdrawn $5.4 billion. Moreover, withdrawals are expected to accelerate in 2H 2016 reaching nearly $20 billion, a run-rate that would have them exceeding the fiscal limits imposed on fund withdrawals of 4% of assets, or $36 billion. To put those withdrawals into perspective, Norway's economy is roughly $375 billion and federal spending accounts for roughly 60% or $225BN. Therefore, a $20BN withdrawal in 2H 2016 represents roughly 18% of total government spending.
(Excerpt) Read more at zerohedge.com ...
Forgot URL : http://www.zerohedge.com/news/2016-08-29/norway-raiding-sovereign-wealth-fund-cover-government-expenses
Isn’t Alaska wrestling with financial issues due to low oil prices?
Like USA Social Security over the last 30 years....
Ya beat me to it. LBJ tapped the cash-positive SS stream, and the SS Trust Fund lockbox been filled with worthless IOUs ever since. The IOUs don’t change the amount of cash the government has to raise each year to cover the SS expenses.
Curious as to when the last time ANY country ran in the black? Anyone know?
http://www.usdebtclock.org/world-debt-clock.html
How on Earth is the World Economy even functional? And this isn’t even every Nation but according to this, CHINA has the least debt to GDP ratio! Yikes!
You would think taxes were high enough in Norway to cover revenue downfalls...
China does have that, but when they hit the end of their credit line, they will go into full blown civil war. Their peasants are already protesting in many districts against the horrible standard of living they have versus the cities.
Norway spends something like $40 billion a year on overseas and domestic refugee aid, most of it for Muslims.
Thanks for posting. I’m a big Zero Hedge fan.
They should raise all taxes to 100%
A few years more of low oil prices and maybe the stupid socialists will have to shut up about Scandinavia.
They do have some interesting things from time to time, and almost always with links to back it up.
Yes, it’s a wonder we are not as smart as they are ...
And it still wouldn't be enough!
(Supporting muslims and the Leftist agenda costs money!)
Tings mus be perty bad fer ole Ollie ta be diggin up da money box in da back yard.
Why don’t they just print money like we do? /sarc
Bloody hell, just raise the VAT to 30%.
There’s no need for worry.
Recently a manchild economics PhD candidate just told us to lighten up about the economy, as follows:
“Today’s economy, fiscal and monetary policies are the result of a a new paradigm shift due to technology raising productivity levels to record levels.
Debt, be it national or personal, is of little consequence, now that Silicon valley innovation ROI outpaces overall liability from gov’t IOUs.”
Yup, the future’s so bright, I gotta wear shades...
RE: “Curious as to when the last time ANY country ran in the black? Anyone know?
http://www.usdebtclock.org/world-debt-clock.html
How on Earth is the World Economy even functional? And this isn’t even every Nation but according to this, CHINA has the least debt to GDP ratio! Yikes!”
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