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People can choose to do that, or they can choose to save and invest the money. Norway's oil fund is around 1 trillion dollars. >...The Government Pension Fund

by opo 6y ago

People can choose to do that, or they can choose to save and invest the money. Norway's oil fund is around 1 trillion dollars. >...The Government Pension Fund Global, also known as the Oil Fund, was established in 1990 to invest the surplus revenues of the Norwegian petroleum sector. It has over US$1 trillion in assets, including 1.4% of global stocks and shares, making it the world’s largest sovereign wealth fund. https://en.wikipedia.org/wiki/Government_Pension_Fund_of_Norway https://en.wikipedia.org/wiki/Government_Pension_Fund_of_Nor...

sadfklsjlkjwt 6y ago
An increasing proportion of Norwegian spending is already covered by the revenues from the Oil Fund. This crisis has seen a near perfect storm of massive increase in welfare spending, massive fall in the value or the Oil Fund's assets and massive decrease in the price of oil (and hence the input for the Oil Fund). It will be very interesting to see what happens with the fund in the next 10-20 years. EDIT: To be clear I am glad the fund exists. It has been and is a much better way of using the natural resource bonus. However, I strongly suspect that Norway will use the entire fund cushioning the transition away from being an oil producer.
- jacobush 6y ago
  Not a bad use.
  - teknopaul 6y ago
    Countries under sanctions, obviously, cannot choose what to spend their money on. If you impose sanctions you are essentially government planning another country. I agree with the article's principal point that this is very likey to go horribly wrong somewhere soon. Prevention is better than cure. Even from a purely selfish viewpoint.
- zrail 6y ago
  > I strongly suspect that Norway will use the entire fund cushioning the transition away from being an oil producer My very cursory understanding of the Fund is that cushioning that known inevitable circumstance was the entire point in the first place.

by opo 6y ago

sadfklsjlkjwt 6y ago

An increasing proportion of Norwegian spending is already covered by the revenues from the Oil Fund. This crisis has seen a near perfect storm of massive increase in welfare spending, massive fall in the value or the Oil Fund's assets and massive decrease in the price of oil (and hence the input for the Oil Fund). It will be very interesting to see what happens with the fund in the next 10-20 years. EDIT: To be clear I am glad the fund exists. It has been and is a much better way of using the natural resource bonus. However, I strongly suspect that Norway will use the entire fund cushioning the transition away from being an oil producer.

jacobush 6y ago
Not a bad use.
- teknopaul 6y ago
  Countries under sanctions, obviously, cannot choose what to spend their money on. If you impose sanctions you are essentially government planning another country. I agree with the article's principal point that this is very likey to go horribly wrong somewhere soon. Prevention is better than cure. Even from a purely selfish viewpoint.
zrail 6y ago
> I strongly suspect that Norway will use the entire fund cushioning the transition away from being an oil producer My very cursory understanding of the Fund is that cushioning that known inevitable circumstance was the entire point in the first place.