Europe becomes world's wealthiest region

[tocqueville]

Source: Globe and Mail

Tavia Grant

Globe and Mail Update Last updated on Tuesday, Sep. 15, 2009 11:13AM EDT

Europe has elbowed North America aside to become the wealthiest region in the world, a report said Tuesday.

It is the first time Europe has reigned over the global wealth ranking since 2003. Globally, wealth fell for the first time in seven years, to $92.4-trillion (U.S.) in 2008 from $104.7-trillion a year earlier, according to The Boston Consulting Group's annual publication.

“The crisis is transforming the global map of the world's wealthiest people,” the paper said.

Hammered by equity losses, North America saw the steepest decline in wealth last year, with a 21.8-per-cent plunge in assets under management.

Read more: http://www.theglobeandmail.com/report-on-business/europe-becomes-worlds-wealthiest-region/article1288141/

---

kinda same report here :

No we can't? UK think tank says US power is fading

By RAPHAEL G. SATTER, Associated Press Writer Raphael G. Satter, Associated Press Writer – 13 mins ago

LONDON – A weakened United States could start retreating from the world stage without help from its allies abroad, an international strategic affairs think tank said Tuesday.

The respected London-based International Institute for Strategic Studies said President Barack Obama will increasingly have to turn to others for help dealing with the world's problems — in part because he has no alternative.

.....

The report said the U.S. struggles against insurgent groups in Iraq and Afghanistan had exposed the limits of the country's military muscle, while the near-collapse of the world financial markets sapped the economic base on which that muscle relied.

....

"Clearly the U.S. share of 'global power,' however measured, is in decline," the report said.

http://news.yahoo.com/s/ap/20090915/ap_on_re_eu/eu_britain_us_power

[eleny]

1. Gee, "old" Europe kicking economic ass

Imagine that.

[avaistheone1]

22. All those countries have national health plans for their people too.

Imagine that.

:kick:

[eleny]

28. Yup, they figured out our weakness and got to work

[rurallib]

2. Once they realized cooperation is smarter that confrontation

Hey - maybe we should do that.
But they have some general agreement on base level humanitarian issues like health care.

[Soylent Brice]

3. congrats Europe!

now come back an re-conquer the colonies!!!!

PLEASE!!!

[tocqueville]

15. pre 1776 or post ? nt

[WriteDown]

4. Of course, Nestle and Swiss Banks are there.

:)

[NYC Democrat]

9. yep i mean how could we possibly compete with Chocolate and Cheese!

[tocqueville]

11. I don't think they are counted, you don't need to

"the EU generated an estimated nominal gross domestic product (GDP) of US$18.39 trillion (15.247 trillion international dollars based on purchasing power parity) in 2008, amounting to over 22% of the world's total economic output in terms of purchasing power parity,<12> which makes it the largest economy in the world by nominal GDP and the second largest trade bloc economy in the world by PPP valuation of GDP. It is also the largest exporter ,<112> and largest importer<113>of goods and services, and the biggest trading partner to several large countries such as India and China."

http://en.wikipedia.org/wiki/European_Union

with "North America" the Boston group counted US + Canada, but not Mexico.

[Ghost Dog]

32. I see that "North America" refers only to USA & Canada in this study.

It's not clear how "Europe" is defined, from the press release, but it does appear to include Switzerland (although probably not any part of Russia). (Then again, both Switzerland and UK may be (partly) placed in a separate "offshore" category?)? :shrug: "Wealth" refers to "assets under management".

Boston Consulting Group press release: http://www.bcg.com/Media/PressReleaseDetails.aspx?id=tcm:12-28981

Here are some quotes from Bloomberg: http://www.bloomberg.com/apps/news?pid=20601085&sid=aa4aY3KeSePI

North America, defined as the U.S. and Canada, had $29.3 trillion in assets under management, compared with $32.7 trillion in Europe in 2008, according to the survey released today by the Boston-based firm. The U.S. remains the wealthiest country at $27.1 trillion and has the highest number of millionaires -- almost 4 million. Japan’s global wealth is No. 2 with $13.5 trillion and more than 1 million millionaire households.

Global wealth dropped for the first time since the survey started in 2001 as assets under management decreased 11.7 percent to $92.4 trillion last year from $104.7 trillion a year earlier. The credit crisis sent stock indexes to their worst annual losses since the Great Depression and slashed the value of real-estate holdings, hedge-fund and private-equity investments in 2008. The Standard & Poor’s 500 Index dropped 38 percent last year, the steepest annual decline since 1937.

...

The biggest drop occurred in North America, where wealth plunged 22 percent, according to the survey. The second-biggest decline was Japan, where wealth fell almost 8 percent in local currencies. Europe declined 5.8 percent. Latin America, defined by the survey as Mexico, South America and Central America, was the only region where wealth grew, by 3 percent.

Wealth is expected to begin a “slow recovery” in 2010, according to the survey. Assets under management will grow at an average annual rate of 3.8 percent from the end of 2008 through 2013 to $111.5 trillion.

...

The number of millionaire households globally fell to 9 million from 11 million, with North America and Europe both experiencing decreases in the number of millionaire households by 22 percent, according to the report. The results are similar to a survey released in June by Capgemini SA and Merrill Lynch & Co. that found the number of millionaires slipped 15 percent to 8.6 million.

...

The amount of offshore wealth declined to $6.7 trillion last year from $7.3 trillion in 2007 as regulators pressured countries such as Switzerland to cut down on bank secrecy. Switzerland accounts for 28 percent of offshore assets with the United Kingdom at 23 percent. Singapore and Hong Kong may grow as offshore centers because of their proximity to other Asian countries and sophistication of Asian banks, the report said.

Investors have had their confidence “shattered” by markets, scandals and failed financial institutions, according to Bruce Holley, a senior partner and managing director at Boston Consulting Group’s New York office and topic expert for wealth management and private banking for the U.S. That has resulted in a shift to lower-risk asset classes and investments that are liquid and simple, he said.

...

[tocqueville]

38. I see that we are talking here about assets, not of GDP

I looked for the orginal link but couldn't find it. Thanks.

[OHdem10]

5. Those Social Democracies -- How Dare They????

If we are to bring America back, we must learn to recognize
the potential destructiveness of Free Market Fundamentalism.

Today we still have the extremists on the Right repeating
their Mantra. Let the Markets work their Will. They
cannot admit that the Markets worked their will and led
us into this disaster.

Remember this: James Stewart, New Yorker Magazine discussing
the success of the stimulus. "Yes, over time the Free Market
would correct itself: but while we sat and waited, the country
would have been beaten back to the Iron Age."

There are good things about Free Markets but Unfettered Free
Markets can be destructive. The state of our economy proves
it. Wise and ENFORCED Regulations are essential.

IMO, this is a truism. Economic Crises can be so large and
so serious that the only Institution large enough to deal
with them is a Government. Dealing with the Crises does
not mean a take over of a business. It means solving problems.

[No Elephants]

13. Our free markets don't seem very free to me, or even inexpensive. We seem to have free markets

as long as the corporatists don't need money, or favorable treatment under our laws.

[DBoon]

14. I like what Keynes said

with respect to markets being self-correcting in the long run, he said "In the long run we shall all be dead"

[14thColony]

6. Impossible

Socialized medicine destroyed their economies long ago. Probably nothing left but a big desert with a few starving survivors nowadays.

[Ghost Dog]

35. Yeah, that's more or less what Ms. Rand said,

so it must be true.

[prolesunited]

7. How could the socialists

be trumping the imperial capitalists?

[NYC Democrat]

8. uhhh because their capitalist too just of a slightly different sort.

[DesertDiamond]

10. Free medical care => healthier, happier workers => healthy economy. Hellllllllo!

[DBoon]

24. Add in subsudized higher education, pensions, etc

childcare, etc.

You raise healthier, better adjusted children

You have an education system that is more affordable, giving better educated more productive workers

You regulate the finance sector so there is less speculation and more long-term investment

You provide workers with job security so workers and employers alike invest in increasing the productivity of your current workforce, instead of laying everyone off at a moment's notice to move to China

[pampango]

33. And they've opened up their borders to each other so it's easy to move around and to make and sell

products and services to each other.

They do have effective market regulation, much better health care systems, and more progressive taxation. Certainly a lesson to learn there.

[CTyankee]

43. AND fresh, wonderful food! A real respect for families. Lives that respect

family mealtimes and evening walks (passagiata in Italy) where people mingle and talk with each other, lives lived in proximity to friends, neighbors and relatives. Mutual support. Respect for the elderly. Love for the children.

I could go on and on.

We're being ground into the dust...

[Cant trust em]

12. Damn you, Eurpoean socliaism! nt

[onehandle]

16. I will quote my college professor friend: 'The U.S. will be the Mexico of the 21st century.'

This was in the 90s during the Clinton economic boom.

I laughed at my friend.

I have since apologized.

[Michigan-Arizona]

19. Onehandle

My dad always told me that we'd be a third world country & I to laughed at him. He passed away right after * got selected so I was never able to apologize.

[DBoon]

25. European tourists will come here and be shocked

at the poverty, overall low standards of living, lack of education, lack of basic health care.

It will be a "wake up moment" similar to when the Soviet Union collapse and the entire outside world got to see how impoverished and poorly run it was.

[onehandle]

29. I spent a month in Europe last year. I saw little signs of poverty.

Spent most of the time all over France. A few days in England, Germany, Switzerland and Italy.

And this was not just in tourist areas.

I was shocked to see how happy and seemingly well cared for the people were.

Americans are suckers.

[spaniard2000]

46. Numbers speak

In Germany 13% of people lives in poverty , defined as the poeple who earn 40% or less of average wage (aprox 1400 euros/month). In western Europe between 10 and 20% is poor. But once again, you cannnot compare countries with such huge differences on population growth and immigration. In United States 1 out of each 25 people is an illegal immigrant (1 out of 60 in European Union)

[Soylent Brice]

26. fuck, he's right.

:(

[sam kane]

57. but almost no one resents Mexico like they resent the U.S.

so we will be much worse off, since everyone will be so happy to see us fail.

[Uncle Joe]

17. Blah blah blah, well at least we have a Soylent Green inspired health care system,

and everybody knows soy and green veggies are good for you, so we have that going for us!

[LeftHander]

18. But Republicans make the U.S. stronger....????

8 years of Bush and we are big big BIG and strong.

Boom!

[Yavin4]

20. Policies That Benefit The MIDDLE CLASS Makes for a Vibrant, Strong Economy Overall

When the middle class feels economically safe and secure, they will spend money and keep the economy vibrant. By sharing the cost burden for health care and education, by having a military budge based on defending the nation instead of being an international empire, and by giving workers a strong voice before their employers, Europe has built in a sense of economic security that allows their economies to grow stronger over time.

We live in a world of boom and bust cycles, which leaves all of us poorer over the long haul.

[RedCloud]

21. This is an outrage! How much do they pay for US troops protecting their oil?

Actually it's not their oil, but I couldn't fit that in the title!

[awoke_in_2003]

23. to think what we could do

if we didn't spend more on military might than the rest of the world combined.

[JNelson6563]

50. Well actually....

We could keep borrowing enough from the rest of the world to grow our military big enough to go in and take them over. Then we can take all their assets. To the victors go the spoils! Kick their ass and take their gas (or whatever)!

*sigh*

Julie

[davidwparker]

27. How can those socialist deadbeats beat us capitalist? They don't work.

:sarcasm:

[JDPriestly]

30. Extreme de-regulation and rigid economic theology bested by pragmatic,

flexible cooperative system. Is anyone surprised?

Austrians were planning to compete in a global economy by improving their education and specializing in lots of small businesses rather than big business way back in the early 1980s if not before.

We really lost out thanks to Reagan and the idiots on the right. Europeans have been fighting global warming, protecting workers' rights and funding free or nearly free public education through graduate school for talented students -- all the things our right wing vilifies. And look where it got them -- and us.

[dipsydoodle]

31. The US is finally running out

of countries to rob :

In 1955, the New York Times reported from the United Nations that "The United States has begun a drive to scuttle a section of the proposed Covenant of Human Rights which poses a threat to its business interests abroad."

The offending section dealt with the right of peoples to self-determination and to permanent sovereignty over their natural wealth and resources. Said the newspaper: "It declares in effect that any country has the right to nationalize its resources ..."

http://www.thirdworldtraveler.com/Blum/Guatemala_KH.html

[HughBeaumont]

34. Unempirical society of WE bests the Tyrannical hypercorporatist society of ME.

That's a stretch, ain't it?

I've long said this dying empire is going to see the catastrophic results that Reaganomics over a long period of time would do to it's lower 95%. It's amazing to me that anyone can defend this stupid system as still being worthwhile when it's been proven time and time again that it's NOT.

[provis99]

36. this can't possibly be true, unless they redefined "Europe"

any definition of Europe that rightfully includes Albania, Turkey, Russia, Georgia, Serbia, et al couldn't possibly be richer than Canada and the US, or even North America including the Central American peninsula. Sounds like a bogus definition to me.

On edit: I was right; they didn't account for per capita wealth , just aggregate figures, which is a shitty and dishonest way to account for wealth. shame on the Globe and Mail for this headline, which is obvious bullshit.

[tocqueville]

39. Russia and Turkey are probably not included

because if they were the difference would be even bigger. Americans underestimate the wealth of other countries. Typical. France, Germany, the UK and Italy are all European countries and in the top 10 of the richest. Countries like the Netherlands have non negligible assets too.

What we normally mean by Europe are the EU 27 + Norway (oil rich) + some former Eastern countries like Serbia, Albania etc... but not Turkey, Ukraine and Russia. So it's not a "new definition". Those countries have a common economy or a dependent economy.

Concerning GDP the question is already answered, the EU GDP is already bigger than the US alone. Here we are talking about assets. France for example has so many assets abroad that they balance the external debt (1 trillion) and the internal assets are widely over the internal debt.



add the grey areas within Western Europe and exclude Turkey and the grey to the East and you have a pretty good picture.

[Crabby Appleton]

58. You are right, it's "capital under management" - i.e. brokerage accounts

and not per capita

[Odin2005]

37. Shit. We are turning into a 3rd world country.

:grr:

[lovuian]

40. lets get rid of the Military machine

and let Europe defend us

[dipsydoodle]

41. Sure

Some of our oven gloves should be sufficient to protect you against a few guys with box cutters. :sarcasm:

[Vidar]

42. Most of Europe actually takes care of its people. Funny that that hight catch on.

[and-justice-for-all]

44. That is what life is like when your Government

is not engaged in imperialism and war mongering.

[spaniard2000]

47. I agree

That happens when your government spends 5 or 6% of GDP on defense and security, while ours spend 1 or 2%

[and-justice-for-all]

49. Yup...

Imagine the good things that could be done, if we were not engaged in occupations of foreign countries.

[LanternWaste]

51. United States, 4.6%

United States, 4.6%
United Kingdom, 2.4%
Germany, 1.5%
France, 2.6%

Source: CIA World Factbook
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2034rank.html


ed: sp

[spaniard2000]

45. Several things

1) European Union population reaches 500 million people. More than 700 if Ukraine, Turkey and west Russia are included.

2) In EU there are 8 million of illegal immigrants (1.6% of population). In United States there are almost 12 million (4% of population). The new European directive (supported by the 27 governments and almost all right-wing parties) calls for the expulsion of illegal immigrants, retention time limit up to 18 months and strict punishment of people who employ them. Not even the most conservative republican member of US Congress would dare to propose something like that, in part because in America immigrants can reach the right to vote much easier.

3) In Europe healthcare is provided by each state member (or federated states/regions), not by the EU government. I must remember that Texas is bigger than the biggest euro country (France). So there are as many models as members: from socialized care to mandatory private insurance (Switzerland, Netherlands), vouchers, copayment... Single payer is not the only model and will become more expensive as Europe continues to age. Switzerland is a good example of universal healthcare where the public sector pays a minimal part of the costs: only 25% (American government pays 50% of the costs).

4) Yes, there is a EU government called "commission". In fact, an unelected government of technocrats. They make 70% of national laws through mandatory directives, and the European Parliament has the power to amend them only. If Lisbon Treaty passes they will make almost 100% of our laws.

5) European average birthrates are 40-50% lower than american. According to Eurostat, from 2015 the only EU growth factor will be immigration and in 2050 one third of europeans will be 65 or older. In fact Germany already loses people (-169.000 in 2008). American population increased by 60 million from 1990 to 2009, which is absolutely unthinkable in Europe.

6) About economic freedom, pro-republican Heritage ranks Denmark 8th (very close to USA), Switzerland 9th and the Netherlands 12th. Scandinavians rank much better than Spain, France or Italy. Heritage also grades danish labour market as the most flexible and free among 179 countries.

[pampango]

48. Great post. Thanks for all the statistics and background information. Welcome to DU!

:)

[Psephos]

56. Informative post n/t

[RainDog]

52. All thanks to STRONG UNIONS, UNIVERSAL HEALTH CARE, and education w/o religious interference

That's what happens when nations face issues like climate change and spend govt funds to create alternative energy sources. that's what happens when capitalism is tempered by the common good.

That's what happens when your economy isn't built on weapons, war and oil.

I wish the republican party would vanish from the face of this nation. they have put this nation in the gutter again and again with their lies and treason, yes, treason, from Nixon to Reagan to Bush to Bush.

[fascisthunter]

54. .

[KillCapitalism]

53. Doesn't look so good for us.

We're well on our way to Africa passing us in terms of wealth.

[Deja Q]

55. Did all the US CEOs move over there over the last 12 months?

BTW: If the US didn't bail out these large companies, EVERYONE on this planet would be screaming bloody murder. Like WW2 and a host of other incidents, the world - once again - has the US to thank... or else, as so many media pundits say, the repercussions would be too severe.

[XemaSab]

59. The US is spending BUCKETS of cash on maintaining overseas bases

Europe is not.

We've got massive drains on our economy that other countries do not have.

[New Dawn]

60. "Pax Americana" = Neocon fantasy land.