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They approach money supply
in direct inverse
to their approach to alcohol
(we're more hand in glove)
Norway has no public debt and over 50K US$ per every man woman and child in the country. Tends to give you a few more options with policy when you are rock solid to begin with!
Shame on Norway for being one of the first "civilized" countries to shine the light of economic sanity and fiscal prudence for all to see.
Time for GS and friends to carpet bomb Norway back to the stone age.
Norway is a great country, lots of museums.
Folks, they are the third country to increase rates in the last few days - Australia, India and now Norway. Just maybe the tide is turning.
With rates starting to tick up, the US equity market started to turn south. Could get a little more interesting here.
Getting a dollar loan is pretty high on my list of priorities now. I sincerely hope I can get one at USDNOK 6,50 e.g. given the dollar bounce that may be happening, but I doubt it. (Now at 5,7). A 15 or 20 year mortgage in USD may prove to be a pretty sweet deal...
oh man i smell a correlated adjacent trade!
Just like to point out a few things:
* Norway is one of the few countries where the PMI indicator is still running below the 50-level at 47.4 and 45.5 for the PMI and the orders index, respectively.
* Bankrupcy numbers are up to 4900 from 3700 12 months ago.
* Unemployment still rising.
* The national balance sheet is artificially kept in place by income from the oil industry.
* Housing prices are continously rising.
* Private debt are still increasing.
* The Norwegian Export Industry is on its way into a crisis, not out of one, says the industys chief economist.
Maybe it's not so rosy after all?
It would be super cool if you made your avatar like the FedEx logo. Thanks for the info brother.
Why is income from oil industry (selling oil, gas and and related oil services to the global market) more artificial than other income (like selling cheap manufactured toys to the US like China) ?
When the US is selling cheap manufactured toys to China, it creates jobs and contribute to real economic growth.
The Norwegian government ain't selling nothing. StatoilHydro does.
The government just collect its eps and dividends for owning over 60% of the company's shares. And (of cource) tax Statoil like any other business.
This financial income is then beeing used - partly - to fill up the continiously growing holes in the national budget.
By adjusting the budget, the government are also able to keep mortgage rates artificialy low. (Increase the budget on the state owned loan facilities and the commercials have to follow).
And that's mostly the reason for the countrys housing bubble, that took a little break last summer, have started to inflate again.
See my point?
But, hey, it's there bubble....and they can probably afford it....(a couple more years)...
The "never glutted itself on the excesses of a credit and housing bubble"-statement is really really hard for me to swallow for me, having seen housing prices rise about a tenfold over the last 15 years (not an exaggeration). We Norwegians are just shielded in a well-oiled time-capsule, lagging a few years behind the rest of the world. It is going to come down, eventually.
To echo a question raised by Gregor Macdonald, does anyone know what's the energy policy of the United States?
I bet Norway will gladly relinquish the status of 5th largest exporter of oil about the 4th quarter of 2012.
Simple calculations of what one's own needs will be in 2030 will make selling oil in 2018 foolish.
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