Blain’s Porridge Extra – April 3 2020 – Sov Wealth Funds? Ha ha!

Blain’s Porridge Extra – 3rd April 2020 – Sovereign Wealth Funds? Ha Ha Ha! 

I was chatting to a client this morning, and we were touching on the losses experienced by the Norwegian Sovereign Wealth Fund. 

The fund is down some $113 billion, which is properly big, but as a percentage is probably in line with much of the market. The Norwegians are also liquidating a portion of the fund’s assets into a shabby market to support emergency government spending.

The fund is playing its role as the rainy day fund, and its raining hard!

At which point it occured to me just how utterly pointless Sovereign Wealth Funds around the globe are proving to be…

Some nations have dilligently scrimped and saved.

Meanwhile, The UK, USA and Japan are busily engaged in unlimited money creation through QE Infinity and running the Magic Money printing presses at full speed. While rates are zero they care nothing for unlimited bailouts of the economy. Helicopter money..? Bring it on.

In short the current debt deluge means they are eating cake today and will have more tomorrow and the day after that…

That must leave nations that have diligently saved surpluses for future generations through their wealth funds…. rather miffed.

Or is it a hint something dark and dangerous in monetary manipulation and its unintended consequences this way comes..


Bill Blain

Shard Capital