Norway - a society in deep trouble economically and socially -- Franziska van Almsick

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Date Posted: 09:15:05 02/19/14 Wed
Author: Knut Holt
Author Host/IP: 170-199-15.connect.netcom.no / 46.15.199.170
Subject: Norway - a society in deep trouble economically and socially

About Norway and the Current Situation in tha Economy of Norway - Norway way be heading towards bankrupsy

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Norway is generally regarded as a wealthy country with few economical problems that will stay clear of the ongoing decline in global economy, but it is not so unfortunately.

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Due to a huge income from oil and gas fields which gives the Norwegian goverment the ability to collect great tax amounts and gather huge funds for future prosperity, the world is generally regarding Norway as a country without economical problems or difficult challenges. Unfortunately, the situation is very different. Here is a survey of the most important aspects of the economical situation of Norway as by spring 2014:

The good side of the situation are still huge annually income from the oil and gas fields and one has found even new fields that can be opened for exploitation. Another good side of the situation are big funds that still are growing by saving 96% of the annual tax income from the oil and gas production. It has been an aspiration of the politicians to make the funds so great that interests and dividends from the funds can pay for all pensions payed out to Norwegian citizens anually This aspiration is still far from fulfilled though, and gets steadily more difficult to satisfy due to a population growth generated by foreign immigration to Norway.

However, Norway also have huge private dept towards foreign financial institutions that is nearly as big as the funds, so this country as a whole is not very rich.

There are emerging serious issues regarding the sources of economical income that Norway has available:

- A great part of the industry is directly engaged in the search for oil and gas, or in the production of oil and gas. Another great part is engaged in support of the oil industry, either directly or indirectly. Even airways, shipping, hotels and restaurants belong largely to this part.

- The oil an gas prizes are falling, partly due to the economical world climate, but even more to huge new fields that are been opened in other parts of the world, and even greater fields that has been found which still wait to be opened, for example in Australia.

- The Norwegian oil an gas fields are running out, which has the effect that the oil production has decreased by 30% from the top by now, and the new fields found are not great enough to compensate for the loss.

- The cost of readying new fields for production and the production itself on Norwegian sea territories are skyrocketing, because the oil is steadily more difficult to bring up. The oil istallations also by now have a dangerous maintainance backlog that often creates production stops.

- These three facts above make the proffit from Norwgian oil and gas production decrease year by year and there is a real danger that the whole of the Norwegian hydrocarbone production will be proffitless within few years. This will have the effect that the whole of the industy that supports the hydrocarbone production will lose its proffit too..

- Norway has some industry in addition to the hydrocarbone dependent sector, mainly production of raw materials like aluminium, titanium, fertilizers and electric energy. There is also a smaller sector of specialized mechanical industry, information technology, furniture and biotechnology. But these industries are heavily afflicted by the general worldwide recession that does not seems to end for some years. The proffit ifrom these industries are generally declining and is suspeced to decline for years to come since these industries are equally affected by law economical activity like the industries in the rest of Europe.

- Norway also has let the competancy in other industrial fields than the hydrocarbone-related ones degrade and there is little innovation in other fields. Norwegian industry is also getting constantly depleted by owners selling the share majority to foreign interests that after some time take down the factories in Norway and bring the patent and compentency out of Norway.

Norwey also have some huge internal challenges, directly connected to the type of society that Norway has become.

- The country has perhaps the greatest and most expensive burocracy in the whole western world. A huge part of the Norwegian population is engaged in controlling the rest of the population in various ways. The average Norwegian citizen does not, however, feel vey much in their daily life from the presens of this burocracy. It mainly stays in the background, waching everything and everyone and collecting data about everything and everyone. Nearly everything a Norwegian citizen does is in some way recorded by the burocracy..

- Norway also has a huge social and health sector, which however is very inefficient and generally are not solving the task they are meant to solve, and to some extent create broblems rather that solving problems. A great part of the Norwegian population is at any time out of work, waiting to be treated, or they are under treatment that does not cure their health problems at all, or only very slowly, and often causes new health problems.

- The country also have a great privat sector that delivers social services, including child protective servcises, and health services ordered by the public social and health sectors which burden the economy..

- The country's infrastructure is mostly worn down. There is a huge backlog in the maintainance of public buildings, hospitals, schools, railroads, sewers,electric grids and roads, and the backlog is growing.

- The Norwegian home prizes are among the highest in the western world, to some extent due to a backlog in house building in press areas, but even more due to a joint colaboration between real estate brokers, bankers and speculants in bringing the prizes to the greatest level possible.

- The average Norwegian citizen has a dept, mostly due to high prizes of homes and cars, that they are not capable of serving if the interest rates get higher or the average income decline, both of which is highly probable. A great part of the Norwegian population is also in a situation where they pay off dept by establishing new and higher dept. The same is true about Norwegian industries.

- There is a constant immigration of people from foreign culture.s When coming to Norway they will have a long time to adept and the Norwegian society has huge costs for the integration of immigrants. Many of these come from conflict areas and come here with great psychological trauma. Not a few also come with the attitude that Norwegians are obliged to adept to the rather strict living principles of their religion. These issues and the conflicts they create has become a constant challenge in everyday life of Norway.

- But Norwegian employrs also have got the habit of importing workers, and squeezing out people alreathy established in Norway from the workplace, in order to get a cheap and easily manipulated workstock, and thus contributing to a growing rate of unemployment.

- Norway has a very high de facto unemployment, but most of it is redefined to other cathegories and the unemployed giving permanent welfare. The official unemployment rates are rather small, but does not give a correct picture of the situation.

The economical funds possessed by Norway seem big, but they are to a great extent invested in precarious areas, including loans to countries in utmost difficulties. The funds will experience great losses, but how great is difficult to say, but the true value of the fuinds are surely much lower than the figures show. The funds are however not as huge as someone believes. If the whole of Norway was to live off the funds, they would only last 2-3 years, actually. Furthermore, Norway also have dept towards foreigh interests, mostly privare dept, that is nearly as big as the funds, which means Norway is only marginally a net creditor, or more probably a debitor if losses from the funds are taken into account.

It is higly probable due to the listed factors that the average income per capita in Norway will decline drammatically in the near future. Then a huge part of the population will not be able to serve their dept and the government will not be able to maintain the huge public sector, comprizing also the private sector that delivers services to the public sector. The government will neither be able to alleviate the situation very much by using the funds either, simply bcause the funds are far from limitless and very illiquid.

One can hardly draw any other conclusion out of these facts that the Norwegian society will experience a collapse of the kind we have seen in Hellas or Spain, whith all problems herein included.

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Knut Holt is an internet consultant and marketer focusing on health items. To find information about fitness, health and sex, including more information about urinary and genital issues, and products to improve fitness, health and sexual life, please visit his web-site.

http://www.mydeltapi.com

Source: http://www.eioba.com/a/4cwt/about-norway-and-the-economical-situation-of-norway

This article is free to copy and reuse, as long as the description of the auther and his links are present.

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Norway is seen by many as a paradize, but the country has not actually done it very well despite the huge income from oil anfd gas fields. Right now the situation is like this:

The Norwegian pirvate sector have foreign depts that are nearly as big as the governmental funds. In addition much of the funds are invested in precarious areas, so a lot of it is to be regarded as lost or at best highly illiquid. When everything is summed together, Norway is far from any rich country.

By now the proffit from the oil and gas is rapidly declining, due to decreasing oil and gas resources, to falling oil and gas prizes and to skyrocketing project and production costs in Norwegian fields.

The rest of Norway's industries is not prepared for the current development on the Word markets. Nearly all industrial sectors are oriented towards oil or gas in some way or another, or towards building projects, which is not what the world is doing right now.

In addition Norway has a very heavy and costly public service, and the average Norwegian family is heavily in dept due to high costs of houshold. A surprizing fact for many will be that also the infrastructure of Norway is heavily worn down.

Regards Knut Holt
http://www.abicana.com

Best Regards Knut Holt
http://www.panteraconsulting.com

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Norwegian economy is influenced by the financial crisis in two ways. The demand for building materials like aluminium and other raw materials that Norway produces are low and there is a temporary law demand for oil and gas. Next the great funds Norway posesses are placed in forreigh assets that are greatly at stake due to the financial crisis.

Norway faces however an even worse scenario which is not a direct consequence of the financial crisis: Most of Noray's income derives from oil and gas directly or indirectly. Now the Norwegian oil resources are dwindling, the oil prize is decreasing and the cost of oil production outside the Norwegian coast is increasing. Falling prizes is mostly a consequence of huge new findings of oil and gas in all regions in the World, making them independent of import.

Norway can soon get into a situation where there is not any more proffit to fetch fron the oil industry and support industries. This means a dangerous crisis in the Norwegian economy is rising which cannot be remended by a renewed growth in the World economy. The Norwegian society actually faces a near future with greatly reduced income.

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Nei, det er ikke smart � kj�pe nolig n�. Norsk �konomi begynner � f� alvorlige vansker fordi Norge tjener stadigmindre p� olje-gass-eksport. Samtidig har boligprisene blitt tredoblet il�petav noen forholdsvis f� �r. N�r en slik situasjon intreffer vil f�lgende skje: Boligprisene raser minst 50%. Folk vil tjene langt mindre i gjennomsnitt. De som opptar l�n n� og kj�per bolig vil ikke klare � betjene l�net. Det er galskap for folk med vanlig inntekt � oppta l�n og kj�pe bolig f�r raset er et faktum og situasjonen har stabilisert seg, og det vil ta minst 2 �r.
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The average Norwegian household has a historically high dept due to an immense increase in home prizes the last two decades. The dept already gives problems for the private consume even with the current law interest rates and high vages. But the interest rates will surely increase, Due to challenges Norway has on the export market, the average houshold income vil decrease, with a freeze in consume and cracking home prizes as a consequence.. As I see it, an economical breakdown in the Norwegian society is inevitable due to the current bouble.

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