Swiss credit study (jan 2020) on the global distribution of real wealth (very surprising!)

Italia ottavo posto per credit swiss

It has always been said that income does not make a rich man, a person can earn a lot but also spend a lot.

This type of people like to show off their well-being, exhibiting luxurious machines and gadgets, and leading an extremely consumerist lifestyle, goods and attitudes that impress the most, but upon careful analysis there is not much else besides; these people are rather vulnerable, because if they lose their job they lose everything and goodbye well-being !.

They are in fact defined in the financial education texts poor people with high standards of living or SAR (acronym that stands for Poor accumulators of wealth, read the text “The millionaire next door”).

Regardless of the definition that is attributed to these people, the common concept expressed is that it is certainly not the salary that makes the real difference, as mentioned above.

The real difference is the ability to produce cashflow, by subtracting expenses from revenues, where the latter can be made up of income or assets that produce extra revenue.

In addition to the cash flow, which must be strictly positive, there is another wealth index which is called the balance sheet (which is the difference between the sum of the assets owned from which outstanding debts are subtracted).

The same concept can be applied, forcing a little, to states …

In this regard, I was very impressed with a study done by Credit Suisse (a major Swiss financial services company). and published January 16, 2020.

This Swiss group has calculated the distribution of wealth worldwide, represented in trillions of dollars, based on the following calculation (sum of all assets in the country – the sum of all debts).

A picture emerges where Italy (my country where I live) ranks, to my surprise, but also with a certain bewilderment … the ranking at first sight leaves me a little perplexed, in eighth place worldwide!

I was also surprised by the positive balance change in the last few years for some states that would never have entered this ranking before.

This figure is extremely interesting because, despite the colossal public debt (not only a purely Italian problem but in general of the whole world) and the colossal printing of paper by the unprejudiced central bank policy, which contributes to painting an extremely gray scenario , of impending systemic implosion, at least comforts this study which weighs the real goods.

As we well know, what is related to finance is a virtual world that can swell out of all proportion and explode suddenly, having heavy repercussions on the real world, but what really matters is tangible goods.
Italy is a people of great savers (attention I said savers not of investors :-), the culture of investment is largely foreign to the average Italian) that accumulate from generation to generation ….

The property owned is in the DNA of the Italian and this mentality clearly affects the real wealth of the country.

But no more talk and leave room for the data, below the ranking of the richest countries expressed in trillions of dollars (a billion $ = $ 1000 million, $ 1000 billion = $ 1 trillion, 1 trillion = 1000 billion).
1. United States: $ 105.99T
2. China: $ 63.83T
3. Japan: $ 24.99T
4. Germany: $ 14.66T
5. United Kingdom: $ 14.34T
6. France: $ 13.73T
7. India: $ 12.61T
8. Italy: $ 11.36T
9. Canada: $ 8.57T
10. Spain: $ 7.77T

The image of the world below then shows the richest areas of the Earth, expressed as a percentage of the slice of wealth possessed, compared to the whole cake (total world wealth).
Assets distribution accross the world 2020