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crocodile
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longweekend58 wrote on Jan 21 st, 2015 at 8:28pm: crocodile wrote on Jan 21 st, 2015 at 7:24pm: longweekend58 wrote on Jan 21 st, 2015 at 6:17pm: crocodile wrote on Jan 21 st, 2015 at 5:00pm: longweekend58 wrote on Jan 21 st, 2015 at 4:07pm: crocodile wrote on Jan 21 st, 2015 at 3:51pm: perceptions_now wrote on Jan 21 st, 2015 at 1:15pm: crocodile wrote on Jan 21 st, 2015 at 12:13pm: perceptions_now wrote on Jan 21 st, 2015 at 11:59am: crocodile wrote on Jan 21 st, 2015 at 11:33am: perceptions_now wrote on Jan 21 st, 2015 at 11:17am: Actually, it IS, much closer to $1 Trillion, Longy Dopey! According to the following article, from a few weeks ago, it was over $930 Billion. http://www.abc.net.au/news/2014-01-09/all-norwegians-become-millionaire-sharehol...AND then, as usual, you have not addressed the question, "how did Norway get their $930-$1,000 Billion and they only had Oil to sell?
AND, how much could/should Australia have accrued, rather than the relatively small $100 Billion or so, particularly given we have/had a lot more Natural Resources??? Are you suggesting that the Norwegian wealth fund is something really good ? It will certainly give the Norwegians a much better chance, at offsetting the problems relating to the Baby Boomer Bust & a few other issues! Don't think so. Norway's private sector debt is disgusting ( around 170% of GDP ). Tax is still high at ~50% of GDP. Incomes are high but so are costs. In a land that sells cucumbers by the slice there are no bargains and a highly indebted populace. Stripping nearly a trillion out of the private sector to plonk in a wealth fund is not a lot of help. Really? And, how about the rest of Europe, the UK, the USA etc.etc. As I said, "it will certainly give them (the Norwegians) a much better chance, at offsetting the problems relating to the Baby Boomer Bust & a few other issues! I think you will find the Norwegian Private sector are not alone with their 170% Debt (as you put it), But they do at least have some 200% of GDP in a Sovereign Fund, so they are clearly alone at the top of that issue, which will definitely assist in their fight against the Baby Boomer Bust & other issues! There would not be such a private debt problem in the first place had about a trillion folding green ones not been pinched and stuffed in a wealth fund. we've had this conversation before. I think you are being quite simplistic in imagining that public/private debt are somehow interchangeable and that the total debt remains the same no matter how you split it . Not at all Longy. They are two distinctly different beasts with different outcomes. Public debt is funded by the private sector via bond issues. They don't affect private savings as they are a fungible asset with high liquidity. Private debt is however funded by savings. The continuous diminution of private savings via taxation above spending requirements and the non return of positive trade balances simply forces the private individual into greater debt in order to maintain lifestyle choices. Wealth is created by the private sector, not the government. you are still making the simplistic argument about Norway that their wealth fund is directly the result of private debt. that is rubbish. No, the other way around. Private debt is a symptom of capital accumulation by the government sector. My debt is in no way related to govt spending. and even if there were a relationship it is certainly not 1:1 as you are suggesting. In isolation your personal debt is unrelated. However, the sum total of all private savings and investments is directly related dollar for dollar. It is easier to see if the sectoral balances are examined. Falls in private savings must be matched by borrowings in order to maintain equivalent lifestyle choices. By the way, I never intimated that debt is matched 1:1 but rather savings is matched 1:1. Private debt is the manifestation of decreased private savings.  You will find that the private sector balance is precisely equal to the public sector balance plus the current account deficit ( or minus current account if in surplus ). It will always hold true as economies consist of a public sector, a private sector and a foreign sector ( imports and exports ). As shown in the Australian example above that since we consistently run a trade deficit then all public capital accumulation can only come from the private sector. The same is true for the Norwegians as the trade surplus is accumulated in the wealth fund. Therefore, the only possible source of excess capital for the government sector must be from the private sector ( as long as the budget is in surplus ). You can pick the same information for any world economy and you will find the same result. That is the private sectoral balance, foreign trade balance and public sectoral balance always sums to zero.
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South Australia: massive oil reserves discovered (Read 36098 times)
