NORWAY'S EPIC Real Estate Bubble. How To Manipulate the Prices Further Up?

Norway is a country that is struggling with a big socialist government and an oil dependency. Different from Venezuela is that Norway's population is taxed to death. And Norway has a massive slush fund called the Oil Fund. The Norwegian government didn't have to use much of their oil fund until as of the last years.

As The tax income is not enough to prop up their government the government is desperate. The last addition to the tax racket was the introduction of property taxes. Especially in places like Oslo and other major cities. The Norwegian government has always struggled to fight what they call the black market. Tax avoidance is significant in Norway and cash is king to get around it.

With Norway being a heavily taxed country there are also other factors at play in Norway. Norway is one of the most indebted countries in the world. Norway is top 5 in the world for Private Debt To GDP.

With Norwegians having to move to debt to sustain a decent lifestyle in the socialist nation the also have to get into a place to live. In Oslo, housing prices are getting out of hands and event rent affordability is out if hand. With my moms rent going up 20% over the last three years she is having a hard time getting by. With being on the lower end of middle-class she is struggling, she has a boyfriend living with her, and they are still struggling to make ends meet as prices on food and all other living expenses have moved way higher than wage inflation. This leaves people in Norway with a lot less money and a lot more debt. I must say I am happy that both of my parents are free of debt as they split up and sold off their house and paid down their debts.

But that is not the average Norwegian. The average Norwegian is paying more in taxes and fees, getting into more debt and having less and less money every paycheck!

Let's get back to house prices in Oslo the capital city of Norway. Oslo had a little bit of a bubble earlier this year and a slowdown last year late in the year, but now the banking and real estate lobby is pushing for the Norwegian finance minister Siv Jensen to soften mortgage and debt rules further. Norwegian mortgage rules are strict in the first place where you need at least 15%, but you can use other collateral, and the bank might give you a 100% Loan to Value mortgage.

There is also no stopping Norwegians getting another loan to use for the down payment. As you can see below highlighted is a paragraph from a loan broker explaining how you can borrow your downpayment on your house as it is costly to put 15% down on a mortgage.

The average house prices in Norway is drastically up the 5 - 10 years. But since the oil price collapse the west coast cities in Norway have seen tremendous losses in property values, but now all property prices continue to move up and with the banks forced to lax mortgage laws lobbying the government to try to prevent the housing bubble in Norway from popping.

Norway is not moving down a right path and with the Oil Fund being eaten up by both lacks of sound investment strategy and the government expenditure the last stronghold in the economy might fall. I highly suggest you look at two videos Josh and I did on the Norwegian Sovereign Wealth Fund to get a grasp of the misallocation of funds and the use of the funds from the government. And with massive exposure to bonds and stocks that are both in bubbles, the SWF is on a destructive track!

Norwegians need second jobs to keep alive especially if you are single. With the rise of taxes and inflation in Norway people are getting destroyed as wages are too slow to keep up with real inflation, not the fake CPI inflation.

With Norway being one of the worlds most taxed nations on top of being a nation with a massive oil revenue it just shows how big the government in Norway has become. Let's take a look at some of the numbers. The funniest of all Norwegian taxes was the voluntary tax created by the conservative coalition government to respond to complaints from the Workers Party of Norway that we weren't paying enough taxes.

Norway's krone is struggling with high inflation vs. USD as much as a 60% move vs. the US Dollar. That is a lot when you sell your oil in USD. Good for revenue, but sorry for buying everything else.

Inflation has been high for a developed country over the last ten years.

Norway's stock market Oslo Boers is waaay overvalued like most stock markets around the world!

Norway's labour force is shrinking as youth unemployment is higher. I saw this first hand with both of my sibling that is almost ten years younger than me is struggling to get work. It is also the same for people close to pension age!

People that are long-term unemployed are increasing as well. More money that the government needs to pay in welfare.

To give you a perspective I get paid $2600 after taxes in Canada. When I worked in Norway 10 years ago, I got paid $4000 a month, and I had way less money at the end of the month than I do today getting paid $2600 a month. The rise has created a lot of inflation in Norway. The more people get paid, the higher prices for everything else become.

Norwegians keep on accumulating debt as the economy is struggling!

The last 16 years Norway's central bank has accumulated 900% more investments on their balance sheet! That is an insane number, no shock as Norwegian central bank has to accumulate all the bad bank debts to keep its big TBTF banks alive!

In Norway, banks are paying to hold deposit with Norges Bank. Deposit Rate Meaning: In deposit terminology, a term Deposit Rate refers to the amount of money paid out in interest by a bank or financial institution on cash deposits. Banks pay deposit rates on savings and other investment accounts. Negative interest rates exist in Norway!

As the oil revenue has dried up in Norway, we have seen a rise in governments size as a part of the economy!

Norway's household debt is 40% higher than they were in the 80's economic collapse in Norway.

Norway is having fewer people owning their property as property is becoming more and more expensive to hold.

With Norway being heavily indebted and heavily taxed it looks like Norwegians are getting minor tax relief, but don't let it deceive you as the taxes are gathered in other ways than income taxes.

All that matters is that Norway has not given upon big government and are willing to do whatever it takes to be in control! Norway's economy will start to struggle and will eventually fail as the ever-increasing government will continue to increase to control more people.

Norway needs to open up its economy, and they need to go to a voluntary choice of a medium of exchange.

Now is the time for my Norwegian friends to get away from the hidden 2020 cashless agenda for Norway!

Peace Love and voluntaryism,

John