Norway Is Getting Crazy Rich - What’s Behind It? - video Dailymotion

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Some countries are becoming richer faster than ever — and the world is watching closely. One nation is suddenly rising to the top of global wealth rankings, and how a groundbreaking discovery could make the United States even richer than it is today. From surprising economic strengths to hidden natural resources and powerful new technologies, these stories reveal how rapidly the global balance of wealth is shifting.  Animation is created by Bright Side.  ----------------------------------------------------------------------------------------  Music from TheSoul Sound: https://thesoul-sound.com/   Check our Bright Side podcast on Spotify and leave a positive review! https://open.spotify.com/show/0hUkPxD34jRLrMrJux4VxV  Subscribe to Bright Side: https://goo.gl/rQTJZz  ----------------------------------------------------------------------------------------  Our Social Media:  Facebook: https://www.facebook.com/brightplanet/  Instagram: https://www.instagram.com/brightside.official  TikTok: https://www.tiktok.com/@brightside.official?lang=en   Stock materials (photos, footages and other):  https://www.depositphotos.com  https://www.shutterstock.com  https://www.eastnews.ru  ----------------------------------------------------------------------------------------  For more videos and articles visit: http://www.brightside.me  ----------------------------------------------------------------------------------------  This video is made for entertainment purposes. We do not make any warranties about the completeness, safety and reliability. Any action you take upon the information in this video is strictly at your own risk, and we will not be liable for any damages or losses. It is the viewer's responsibility to use judgement, care and precaution if you plan to replicate.

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00:00Now, when you think of Norway, things that come to mind are the sun that never sets in the summer.

00:05Unbelievable nature.

00:07The fact that it's one of the happiest countries in the world.

00:09Even white bears that freely roam in the wild.

00:12I'm guessing they're happy too.

00:14Already planning your trip to this dream country?

00:17Well, don't rush.

00:18You'll have to review your budget.

00:20Fuel there is 10 to 15% more expensive than in other Western European countries.

00:25A meal at a cafe for one person will cost at least 30 bucks.

00:28Plus, consider yourself lucky if you manage to find a hotel at $100 a night.

00:34If you Google the most expensive country in the world, you'll see this list.

00:39Switzerland, which is memishly expensive.

00:41The United States, duh, been there, know that.

00:44Luxembourg is not a surprise either.

00:47And then, all of a sudden, you see Norway.

00:49Just so you know, a family of four would need over 4 grand a month just to exist in Norway.

00:55And it doesn't even include rent.

00:56Specialists say that Norway is around 7% more expensive than in the U.S.

01:02Norway is a bit weird, though.

01:04Usually, the richest countries have national currencies that are stronger than the U.S. dollar.

01:08Take Swiss francs, for example.

01:10Or the Kuwaiti dinar, which is literally the boss when it comes to currencies.

01:14Like one Kuwaiti dinar can snag you 3.25 U.S. dollars.

01:19Now, here's where the mismatch comes.

01:21The Norwegian krona is dubbed the weakest currency in the West.

01:25Well, how come?

01:27In the wild world of global currencies, the Norwegian krona used to be a tough player known for smart money moves.

01:34But surprisingly, it is now the weakest currency in the West, taking a big hit in the last decade.

01:40It has fallen hard against the U.S. dollar and euro, causing concern for central banks and money folks worldwide.

01:48The oil price rollercoaster is a major factor in the krona struggle, as Norway relies heavily on oil exports.

01:55But even with oil prices relatively high, it remains historically weak against major currencies.

02:00The weak Norwegian krona is affecting everyday folks, too, with prices rising on almost everything due to heavy imports.

02:09Inflation is growing, leading to interest rate hikes by the Nordisk Bank.

02:13High interest rates are hurting the housing market and making life more expensive for Norwegian citizens.

02:19So, one of the supposed reasons for why Norway is so expensive might be weak national currency.

02:26What else is particular about Norway?

02:28Well, climate for sure.

02:29It may be hard to imagine a freezingly cold country plunging into riches.

02:34It's an imagery we usually see on social media with geotags Dubai, Saudi Arabia, or even Kuwait.

02:41And it makes sense to think now that all the riches are somewhere southward,

02:45as these places have strong oil-based economies and super-strong currencies.

02:50But in reality, better economies in the South are a current trend.

02:54Ever wonder why cold countries seem to be raking in the cash

02:58while the hot nations are just hanging out?

03:00Turns out, those living in chilly climates had to hustle just to survive winter.

03:05Think building shelter, stockpiling food, and keeping that fire burning.

03:10Meanwhile, those basking in the sunshine had it a little easier with hunting and foraging year-round.

03:15This theory holds true even in the land down under.

03:19Sydney and Melbourne, the top dogs in Australia's wealth game, also happen to be some of the coldest cities,

03:25while Darwin, the warmest city, is lagging behind.

03:29Some might argue that this theory doesn't hold up when we look at ancient civilizations

03:32or modern hotspots like tropical Singapore.

03:36But hey, times change, and so does wealth generation.

03:40Back in the day, it was all about farming, but now it's more about industry and innovation.

03:45So, Norway may seem to have been bound to get rich historically and geographically.

03:51Still, it's not exactly so.

03:53Norway used to struggle a lot.

03:55Back in the day, it faced some tough times with harsh winters and tricky geography.

03:59They even had famines that pushed families to seek a better life in the U.S.

04:05So, how did Norway go from rags to riches?

04:08Yep, oil and gas played a big role.

04:10The country is small, but it has around 0.31% of all oil reserves in the world.

04:16But in Norway, there's more to the story than just black gold.

04:20For example, the top oil reserve is not some Arabic country, but Venezuela,

04:25which claims up to 20% of the world's liquid gold.

04:28Still, Venezuelan's economy is far from stable, so it's not all about oil.

04:35Although bested in forest size by other European nations,

04:39Norway was an unrivaled powerhouse in lumber during the Age of Sale.

04:43Thanks to its strategic fjord path,

04:46timber from its inland forests could quickly reach fjord-side mills and global markets.

04:50As railroads unlocked larger forest potential in other countries post the 19th century,

04:56Norway was Europe's timber king, bolstered by a world-class merchant fleet by the 20th century.

05:03The Norwegian timber wealth, coupled with early cooperative societal norms,

05:08spurred growth across several sectors, from agriculture to fishing and banking.

05:12Despite being labeled poor in the 19th century,

05:15Norway's GDP per capita outshone Eastern and Southern European nations.

05:21The nation's ascendancy continues beyond the discovery of its oil reserves.

05:26Norway is unique, with a small population but sprawling land.

05:30Despite its vastness, the Nordics are scattered

05:32and considered one of the most spacious countries globally.

05:35Much of the North's territory stretches beyond the Arctic Circle,

05:39offering harsh landscapes with thin topsoil covering the bedrock.

05:43The tough terrain in Norway, full of mountains and with a short growing season,

05:47limits arable land to only 2.2%, similar to Yemen.

05:52The scattered arable land in small valleys makes extensive farming impractical,

05:57a far cry from the efficient farming in the U.S.

06:00With a huge chunk of land and coastlines, but a small population,

06:05Norway makes some serious cash from its reserves.

06:08Plus, nature has been pretty kind in Norway,

06:11with rich fishing grounds, hydropower from rivers, and power from cold waters.

06:16And only then comes the little thing called oil.

06:19The late 50s saw a big discovery that changed everything for Norway's economy.

06:24Fast forward to today, and petroleum activities have been a major game-changer for Norway,

06:29feeding its economic growth and funding its welfare state.

06:32But Norway didn't just sit back and watch the money flow in.

06:38They made smart moves, like creating a sovereign wealth fund to manage their oil wealth for the long haul.

06:44The fund sees some big bucks, currently standing at 1.7 billion Norwegian crooner,

06:50or over 160 million U.S. dollars.

06:52Norway uses the interest from this fund to boost its annual budget,

06:56ensuring top-notch health care, education, and welfare for its citizens.

07:00And here's the kicker.

07:02Norway's not resting on its laurels.

07:04They're investing in sustainable technologies, like offshore wind power,

07:08to secure a bright future beyond oil and gas.

07:12Now, Norway may be expensive, but it can't compete with the world's costliest place to live, Monaco.

07:18It's almost four times more expensive than the global average.

07:21So, if you're looking to rub elbows with the rich and famous, look no further than Monaco.

07:27With property prices soaring to an average of over $50,000 per square meter in 2022,

07:33it's no wonder why this tiny country is a magnet for the la-di-da.

07:38However, there's a place that's particularly expensive for tourists.

07:42And I'm not talking about tourist traps.

07:44Neither Oslo nor Monaco can beat the prices in...

07:48Well, take a second to make your guess.

07:49Ready?

07:51Welcome to Ashgabat, Turkmenistan's capital.

07:54A gallon of milk costs a whopping $15,

07:57while a standard internet subscription plan will set you back $168 a month.

08:03Calm down, you're not poor.

08:05It's just an economic glitch.

08:07The reason for these prices is simple.

08:09The Turkmen national currency exchange rate in relation to dollars is fixed and never changes.

08:15$1 equals 3.5 minutes, and it's been so since 2015.

08:20Local prices in the local currency grew to inflation, making it not proportionate to prices in dollars.

08:27The exchange rate never changes.

08:29So, if you live there, such prices don't seem to be extraordinary.

08:32But if you come with dollars, you're in for a pricey trip.

08:36This area might just be the most important spot in America right now, as it is worth over $1 trillion.

08:45There's something incredibly valuable hidden right here at Thacker Pass, and it is going to shake things up.

08:52Not just in Nevada, but in the U.S. economy and its global relations.

08:57The McDermott Caldera is a massive area, about 28 miles long by 22 miles wide, stretching across northern Nevada and southern Oregon.

09:07It's in Humboldt County, a quiet, rural place with just one main city that's going to change a lot in the next 5 to 10 years.

09:16That's because they found white gold there.

09:19We're talking about lithium.

09:20And to explain why this metal is so important, we need a scale.

09:26On one side, we place a chunk of lithium.

09:28And on the other, an apple.

09:30What do you think will happen?

09:31If both have the same volume, the scale is going to tip toward the apple.

09:35That's because lithium is super light.

09:38Its density is about 0.3 ounces per cubic inch, which makes it the lightest solid you can find at room temperature.

09:47Lithium is also extremely reactive.

09:50That means it combines with other elements very easily, and it can catch fire just as easily.

09:56Mix it with water?

09:57Fire.

09:57Expose it to air?

09:59Yep.

09:59Fire again.

10:00But when you combine its lightness with its high reactivity, you get a material that's perfect for batteries.

10:07Like the one powering your smartphone, laptop, or even your electric car.

10:15Nevada's been hiding this treasure for about 16 million years.

10:19The McDermott Caldera used to be a volcanic hotspot, spewing molten rock and creating a huge lake filled with mineral-rich waters.

10:27Over time, that lake dried up, leaving behind thick layers of clay loaded with lithium.

10:34Right now, Thacker Pass Mine is sitting on one of the biggest untapped lithium reserves in the world, worth about $1.5 trillion.

10:44If everything goes as planned, they expect it to produce about 40,000 tons of high-quality lithium a year.

10:51And that's enough to make batteries for up to 800,000 electric cars.

10:57Like I mentioned earlier, this metal is the backbone of modern batteries.

11:02And with the world racing toward green energy, the demand for lithium is skyrocketing.

11:07Since 2020, its price has gone up more than 10 times, making it the most expensive battery metal in the world.

11:14That means it's way more expensive than magnesium, nickel, cobalt, and other materials used in rechargeable batteries.

11:22Right now, we're using about 1.16 million tons of lithium per year, and roughly 85% of it goes into making batteries, mostly for cars.

11:33Between 2030 and 2040, experts think we will need to double the money we're putting into production, from $94 billion to $188 billion.

11:44At the same time, investment in batteries will jump by over 200%, reaching $686 billion.

11:53Finally, by 2050, the demand for lithium is expected to be more than 10 times higher than what we're producing now.

12:01Sorry, I know that's a lot of numbers, but I just want to show how important Thacker Pass will be for the whole world.

12:08This mine is going to be key to keeping everything running.

12:11I mean, literally, since most of the future demand will be for things like cars, electric bikes, scooters, and renewable energy storage.

12:20Nevada could also be the epicenter of a global energy revolution, with the U.S. aiming to cut pollution by 50% by 2030.

12:29A big part of that is replacing gas-powered vehicles with electric ones.

12:32And to make that happen, America is going to need a whole lot more lithium than it's producing right now.

12:39Nowadays, most of the metal used in the United States come from countries like Chile and Argentina.

12:45So, if America wants to be a leader in this market, it really needs to invest more and more in projects like Thacker Pass.

12:53But there's another challenge.

12:55Finding lithium in a mine is one thing, but refining it is another story.

13:01Just like diamonds are carefully cut and shaped to bring out their sparkle and sold in rings and necklaces,

13:07something similar needs to be done with lithium.

13:10The raw material that comes from the mines has to be refined into a pure form that can actually be used in things like batteries.

13:18And China pretty much dominates this part of the market, and they're responsible for about 75% of global lithium-ion battery production.

13:28In other words, it doesn't matter if a country finds this powerful metal on its land.

13:33It will probably still need China to help refine it.

13:36So, the U.S. is eager to strengthen its supply chain.

13:40In fact, they're so excited about this possibility that authorities have invested over $2 billion in loans into the Nevada project.

13:49Because of that, Thacker Pass could make the U.S. a leader in lithium production worldwide.

13:55If their estimates are right, the McDermott Caldera could hold nearly half of the world's known lithium reserves.

14:01It would almost double the reserves found in Bolivia's salt flats, for example, which used to hold the record for the world's largest deposit.

14:11This discovery is about to change Humboldt County for good.

14:15Those quiet streets surrounded by nature will never feel the same again.

14:20The mine will need about 2,000 workers who will probably move there from other cities.

14:25Those workers will need houses, hospitals, schools for their kids, and all the necessary services.

14:31Do you see how it's like a ripple effect?

14:34For every person hired to work on the project during construction, six more people will get hired in the state to support them.

14:42Thacker Pass is also going to have a huge impact on the economy, not just in Nevada, but all across the country.

14:50People expect the mine to be active for 35 years, and each year, it's expected to generate over $2 billion.

14:56But here's the thing.

14:59In Thacker Pass, they'll be extracting lithium from clay, and this process has never been done on such a huge scale before.

15:07So it's kind of a hit or miss.

15:10But if it works, it could completely change the industry.

15:14Big question.

15:16Who's interested in all this?

15:17Well, we've got three big companies eyeing the lithium market in the U.S.

15:22First, there's ExxonMobil.

15:25The oil giant wants to start producing lithium by 2027, and they have plans to become the top supplier for electric vehicles by 2030.

15:34Then there's General Motors, the company behind big car brands like Chevrolet and Cadillac.

15:40They're so interested in this business that they agreed to pay $625 million for a 38% stake in Thacker Pass.

15:49And finally, Tesla.

15:52In 2023, they started building a factory in Texas to process lithium.

15:57It's all part of their plan to handle more of their supply chain themselves.

16:00Now that you know how important lithium is, you might be wondering, what if we run out?

16:08Well, that could happen, since it comes from mining and, just like gold, is a finite resource.

16:14But that doesn't mean we'd have to give up smartphones or electric cars.

16:18If we ever run out of this metal, we'd probably find new ways to produce batteries.

16:24In fact, some experts think thermal batteries could be the next big thing.

16:29They store extra energy from renewable resources like wind or solar power, which are very cheap.

16:36So, they represent a new way of storing energy at a small fraction of the cost.

16:41Nowadays, they're primarily used for powering the production of steel, cement, and chemicals.

16:48Thermal batteries are also being used to heat and cool large buildings.

16:52However, more and more projects are focusing on bringing this technology into private spaces,

16:58like houses and apartments.

17:01Experts are optimistic that initiatives like these could make thermal batteries as well-known

17:05as electric batteries, and they might soon become a regular part of our daily lives.

17:11That's it for today.

17:12So, hey, if you pacified your curiosity, then give the video a like and share it with your friends.

17:17Or, if you want more, just click on these videos and stay on the Bright Side.

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Norway Is Getting Crazy Rich - What’s Behind It?

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