Top 10 Richest Countries in the World – 2011

Top 10 Most Richest Countries in the World – 2011

Today we have this post about the richest countries from all over the world. This contains the list of those countries which have highest GNI (Gross National Income) and GDP (Gross Domestic Product) among the other countries recorded most recent in 2011. The higher the rate of the GNI and GDP, richer the country will be. Below is the list:

10). Mexico:

This is the tenth richest country whose GNI amount is $550,000,000,000 and GDP amount is $839,181,900,000 the percentage amount rate of GNI is 1.8%.

9). Spain:

The amount of GNI of this country is $558,000,000,000 and the GDP amount is $1,223,988,000,000 and the percentage of amount of GNI is 2%.

8). Canada:

Canada’s GNI amount is $628,000,000,000 and GNI amount is $1,251,463,000,000 and the percentage of amount of GNI is 2.3%.

7). Italy:

This country has $1,120,000,000,000 amount of GNI and $1,844,749,000,000 with GNI amount percentage as 3.7%.

6). China:

The amount of GNI is $1,130,000,000,000 and GDP amount is $2,668,071,000,000 the percentage of amount rate of GNI is 3.8%.

5). France:

The GNI amount of France is $1,380,000,000,000 and GDP amount is $2,230,721,000,000 with GNI amount percentage as 4.6%.

4). United Kingdom:

The fourth richest country is UK with GNI amount of $1,480,000,000,000 and GDP amount of $2,345,015,000,000 and the percentage of GNI amount is 4.9%.

3). Germany:

The GNI amount rate is $1,940,000,000,000 and GDP amount rate is $2,906,681,000,000 of Germany and the percentage of GNI is 6.5%.

2). Japan:

This is the second richest country with GNI amount of $4,520,000,000,000 and GDP amount of $4,340,133,000,000 and the percentage of GNI is 15.1%.

1). United States:

This is the richest country among all other countries whose GNI amount is $9,780,000,000,000 and the GDP amount is $13,201,820,000,000 and the percentage of GNI amount is also the highest of all other countries, i.e., 32.7%.

The Rule of 72

The Rule of 72

What does the Rule of 72 mean? It is rule stating how long it will take to double your money at any given interest rate. You divide the compound return by 72. This will give you an approximation of the number of years for your investment to double.

Example:

7% interest rate formula: 72/7=10.28 (it will take 10.28 years for your investment to double with a 7% interest rate)

Note: We would be fortunate today as consumers receiving this kind of return on GICS or Dividend Stocks.

12% interest rate formula: 72/12=6 (it will take 6 years for your investment to double with a 12% interest rate)

24% interest rate formula: 72/24=3 (it will take 3 years for your investment to double with a 24% interest rate)

Note: The credit card companies make this kind of return easily when consumers have outstanding balances on their credit cards and only pay the minimum. As you can see your debt will double in less than 3 years with a 24% credit card interest rate. The higher the rate the quicker the doubling of debt.

Sam Latella

6.9 billion and counting…

6.9 billion and counting…

The past week I read an interesting article about population growth, and thought to myself how this could be applied to investment strategies on a long-term marco basis. Here are some of the facts first about our world population and it’s growth in the last 200 years.

In 1804 world population – One billion

In 1927 world population – Two billion (It took 123 years to double)

Remember the Rule of 72 (0.58% growth rate every year from 1805)

In 2011 world population – Seven billion (It took 84 years to double)

Once again remember the Rule of 72 (0.85% growth rate every year from 1927)

Now let’s take the simple notion that human ingenuity, and technology in all fields that are known to man, medicine, biology, food sciences etc. can postpone the human lifespan by another 10-20 years on average, so the average age would be well into the late 90s or 100. Where would our world population be then? And when would it double?

So, lets take a simple population growth rate of 1%, by, 72/1=72, therefore by the year 2083 our world population would be close to 14 billion people. Why, am I explaining this on an investment web-site? Well, lets take a moment for thought, when investing in the long-term you will need to research and discover which areas of business will have the biggest impact on a world population. Could it be food science? Medicine? Computers? Smartphones? The list goes on. Basically, the growth rates in business will always be there, its about businesses finding the right niches, and exploiting the possibilities, and managing their resources properly. Remember, every individual on the planet wants to better their standard of living, and everyone strives to do this daily.

Here are a few other fact finds:

Canada

1950 population 13,737, 000 (population per sq. km – 1)

2000 population 30,667,000 (population per sq. km – 3)

2050 population 43,642,000 (projection) (population per sq. km – 4)

USA

1950 population – 157,813,000 (population per sq. km – 16)

2000 population – 282,496,000 (population per sq. km – 29)

2050 population – 403,101,000 (projection) (population per sq. km – 42)

Africa

1950 population – 229,895,000 (population per sq. km – 8 )

2000 population – 811,101,000 (population per sq. km – 27)

2050 population – 2,191,599,000 (projection) (population per sq. km – 72)

China

1950 population – 550,771,000 (population per sq. km – 57)

2000 population – 1,269,117,000 (population per sq. km – 132)

2050 population – 1,295,604,000 (projection – population control is occurring) (population per sq. km – 135)

Finally,

Over 1 billion adults are illiterate, and 6% of those are women.

27 million people are refugees, and 80% of those are women and children.

1.2 billion people are living in poverity, and 70% of those are women and children.

1 billion people go hungry everyday.

2 billion survive on less than $1 per day.

1 billion don’t have access to clean water.

More then 1000 women die in pregnancy or during childbirth.

Interesting facts when applied to an investment strategy for the long-term.

Sam Latella

Stock Market Strategy

Stock Market Strategy

Criteria

Market capitalizations of more than $500 million

Expected yields of more than 3 percent

Payout ratios of less than 75 percent (the payout ratio is the company’s expected dividends as a fraction of expected cash flow)

Positive expected year-over-year growth earnings per share (EPS)

Positive growth rates over the past five years in EPS, cash flow sales

Pay It Forward

Pay It Forward

Now that the U.S. has fought its way through the Debt Ceiling debate the house was able to easily pass the deal by 269 votes vs 161 votes.

Many have wondered why the U.S. has a debt ceiling? The debt ceiling beginnings were established in 1917 under Article 1 Section 8 of the United States Constition giving Congress the sole power to borrow money on the credit of the United States. The modern debt limit was established by the Public Debt Acts which was passed in 1939 and 1941. The United States has a system based on checks and balances between the President, Congress, and the Senate.

However, if the debt ceiling debate went into crisis mode, and there could be a chance of default. The President of the United States could invoke the 14th Amendment and raise the debt ceiling, of course there would be a legal battle that would ensue, between whichever party invoked the 14th Amendment clause.

The final outcome of raising the debt has kept the U.S. from technical default, but what it really has done is engage the American people into the debt. The next election should be rife with mudslinging from both the Democrats and the Republicans. The preferred opinion by many economists is that the U.S. and World economy are in slow growth phase for years to come.

The reality, is that the U.S. needs to take a hard look at their debt servicing, the U.S. government today is spending 42% more then what they are taking in right now. Also, there are $55 trillion in entitlements that congress has passed over the years, and will need to fulfill eventually. Some of these entitlements are in the areas of medicare, and social security. The next election will hopefully force U.S. politicians to make some hard choices on austerity measures.

The most important duty of each an every citizen in a democratic society, with a constitution, is to besolventin order to create a stable and viable political economy entrenched in democratic principles. The concept is quite simple, however many citizens in the U.S. and other parts of the world do not understand this. Unfortunately, the governments of these countries are in a precarious position and are not making the hard choices.

The U.S. will not go into default it will make those hard choices, but the question is when? They could take a look at their northern counterpart Canada. Back on April 28, 1993 the Government of Canada had it’s rating cut, national debt was peaking at 72% of GDP. The Wall Street Journal was editorializing about Canada’s parlous fiscal state, making it an honorary member of the Third World.

Since then Canada has fixed these problems in a rather short time period, and we are enjoying the benefits in a world that does not seem a certain. How did Canada do this? They cut federal expenditures by 20 per cent, cut 23 per cent of public servants, slashed agricultural subsidies and business subsidies by 40 per cent to 60 per cent, chopped defence spending by 15 per cent, abolished some ministries altogether, and cut transport and science budgets in half.

Of course, they also hiked Canadian Pension Plan and Employment Insurance taxes – er, contributions – and downloaded a ton of federal spending onto the provinces. Lastly, they were helped by a rebounding economy.

Now the U.S. could take a few cues from us, if it wants to stay out of the so called Third World honorary member scenario. These are going to be hard measures let’s look at the timeline of the first fiscal year, 1789 it took the U.S. 198 years to 1987 to deficit spend its way to a $2.4 trillion debt. Which is almost the same amount the debt ceiling was raised on Aug 2nd.

As Peter Schiff wrote last week, The plans on the table suggest cutting a couple trillion in cumulative spending over the next decade. In other words, they propose cuts that only reduce deficits by about 10% to 20%; they do nothing to reduce actual debt levels. So if these talks are successful, then instead of a $1.5 trillion deficit each year, perhaps we only suffer a $1.2 trillion deficit. Meanwhile, the debt continues growing. This is ‘success’ in Washington.

Peter Schiff is right here, as are many politicians, and everyday Americans the hard choices need to be made in order to right size the country. During the Great Recession we had Wall Street vs Main Street, and the hypocrisy that occurred. Now we have Washington vs Main Street an added spice of more hypocrisy. The politicians like to blame business when they don’t have their house in order. Who will blame Washington for their cemented boot syndrome where they are not able to move forward because it would cost them their position politically.

As Congressman Ron Paul memorably stated, Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.

Conressman Ron Paul, is correct here, not only is it a future tax increase, it also means higher interest rates for borrowing, less social services, and social security. I guess, the alternative would be for the Washington and the American People to move this forward, and let the next generation PAY IT FORWARD, but eventually the day of reckoning will occur.

Sam Latella

Chairman Bernanke’s College Lecture Series: The Federal Reserve and the Financial Crisis

Chairman Bernanke’s College Lecture Series: The Federal Reserve and the Financial Crisis, Part 1

Chairman Bernanke’s College Lecture Series: The Federal Reserve and the Financial Crisis, Part 2

Chairman Bernanke’s College Lecture Series, The Federal Reserve and the Financial Crisis, Part 3

Chairman Bernanke’s College Lecture Series, The Federal Reserve and the Financial Crisis, Part 4

Intro

Love the Return! Not the Stock!

Welcome to my first foray into blogging about the stockmarket. I don’t call myself an expert and by no means do I work in the industry, but I do believe with proper research, and analysis, the individual investor has a better chance of beating the market.

II’ve always found it amusing that people in general spend more time, worrying about the rising costs of gas or the price of food, rather then spending the same amount of time on their investments and planning for their future needs.

The blog will contain many things as it evolves over time, and I will discuss about the market and individuals stocks, but will not recommend them. However, as always do your own research as the saying goes – Buyer Beware or Caveat Emptor!

Sam Latella