For a country of under 6 million people, Norway has accomplished an amazing economic feat. They have a debt-to-GDP ratio that is under 35%. Their total debt is only $145 billion. In addition, they have accumulated over $2 trillion in their Wealth fund, which is about 13 times the amount of their debt.
The wealth fund, which manages the Norwegian state’s revenues from oil and gas production, has invested about half of its value, or about $1 trillion, in the U.S., across bonds, equities and real estate. They tend to invest only in companies that are environmentally friendly. As a result, Fund CEO Nicolai Tangen told Reuters he had discussed the risk of a possible backlash from the U.S. to the plan with the board of the central bank, among other issues. For more details, see
In the 1960’s two respected economists took opposing stances regarding the annual budget and the National debt. Milton Friedman, the conservative view, was that the Government should work on an annual balanced budget and make every effort to reduce the National Debt. John Maynard Keynes, the liberal view, was that annual deficits were ok in years that required economic stimulus, and in years when the economy was overstimulated, a surplus should be achieved. He warned that if the ratio of Debt to GDP ever exceeded 75%, the country’s financial viability would be in danger. At the time, the ratio was under 40%, so danger was not in the cards.
Both economists would be horrified if they were still living. The 75% warning level was reached about 16 years ago; the National debt has almost doubled and is projected to reach $40 trillion by the end of 2026.
Here’s a summary of the U.S. national debt at the end of each fiscal year from 2008 to 2026, based on Treasury data and historical records
In the details, one interesting component of the budget that has about doubled in the last 10 years is interest. It is the 3rd largest budget item (after Social Security and Medicare/Medicaid) at almost $1.04 trillion.
While there are many unexplained amazing sites from antiquity, there is one that was amazing then and even more so in recent times. The twin temples at Abu Simbel are amazing accomplishments by the Egyptians during the rule of Ramesses the Great, but even more amazing was the project to relocate the temples so that they would continue to be after the construction of the Aswan Dam to create Lake Nasser. A visit to Egypt would not be complete without visiting Abu Simbel. IT was the highlight of my trip, along with going inside the Great Pyramid at Giza and seeing Tutankhamun’s tomb.
The twin temples were originally carved out of the mountainside in the 13th century BC, during the 19th Dynasty reign of the PharaohRamesses II. Their huge external rock relief figures of Ramesses II have become iconic. His wife, Nefertari, and children can be seen in smaller figures by his feet. Sculptures inside the Great Temple commemorate Ramesses II’s heroic leadership at the Battle of Kadesh.
