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High oil and gas prices increase value of Norway's sovereign wealth fund to $1.05 trillion
Everyone's a millionaire
Everyone in Norway, in theory, became a millionaire on Wednesday.
The country's sovereign wealth fund has ballooned thanks to high oil and gas prices.
Set up in 1990, the fund is the world's biggest, owning around 1 per cent of the world's stocks, as well as bonds and real estate from London to Boston.
A preliminary counter on the website of the central bank, which manages the fund, rose to 5.11 trillion crowns (S$1.05 trillion), fractionally more than a million times Norway's most recent official population estimate of 5,096,300.
FIRST TIME
It was the first time it reached the equivalent of a million crowns each, central spokesman Thomas Sevang said.
Not that Norwegians will be able to access or spend the money, squirrelled away for a rainy day for them and future generations.
Norway has resisted the temptation to splurge the windfall since striking oil in the North Sea in 1969.
Finance Minister Siv Jensen told Reuters the fund, calling the Government Pension Fund Global, had helped iron out big, unpredictable swings in oil and gas prices. Norway is the world's No. 7 oil exporter.
"Many countries have found that temporary large revenues from natural resource exploitation produce relatively short-lived booms that are followed by difficult adjustments," she said in an e-mail.
The fund, equivalent to 183 per cent of last year's gross domestic product, is expected to peak at 220 per cent around 2030.
"The fund is success in the sense that parliament has managed to put aside money for the future. There are many examples of countries that have not managed that," said Mr Oeystein Doerum, chief economist at DNB Markets.
Norway has sought to avoid the boom and bust cycle by investing the cash abroad, rather than at home. Governments can spend 4 per cent of the fund in Norway each year, slightly more than the annual return on investment.
Still, in Norway, oil wealth may have made the state reluctant to make reforms or cut subsidies unthinkable elsewhere. Farm subsidies allow farmers, for instance, to keep dairy cows in heated barns in the Arctic.
News, The New Paper, The New Paper, Friday, January 10 2014, Pg 17
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Buy 4D.
Go become property agent, but must be very harding working.
6.9 million confirm make property agents huat. ![]()
i collect one dollar from 6.9 million sould. so i can be 6.9 million richer hehe
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Originally posted by Craptalkone:i collect one dollar from 6.9 million sould. so i can be 6.9 million richer hehe
Collect in China.
You can be a billionaire. ![]()
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Originally posted by Mr Milo:sell off your million dollar HDB and sleep on the streets
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NICE QUESTION, I WANNA BE ONE OF THEM TOO