10 Richest Countries In The World

10 Richest Countries In The World | Before It’s News.

According to the 2011 Credit Suisse Global Wealth report published in October 2011, Australia has a median wealth of US$222,000 (AU$217,559). That’s the highest in the world and nearly four times the amount of each US adult. You can read the full report here.

Apparently the wealth of your average Australian is 55 times greater than the average wealth around the world.

Yet I guess a lot of us wealthy people don’t feel that lucky. There’s still a huge gap between the super wealthy and the poor here in Australia as in North America. Plus, with our consumer society we’ve all been trained to want more and more, no matter how much we already have.

It got me thinking about how lucky we are compared to the poorest countries in the world who funnily enough the Swiss bank doesn’t mention. So I thought I’d write two posts for comparison: the 10 Richest Countries in the World versus the 10 Poorest Countries in the World.

This list is taken from the  Credit Suisse chart of top 10 countries with the highest average wealth per adult in 2011.

They haven’t made public the whole top 10 for the other list where Australia comes out top on but it’s amazing to see the USA and Canada don’t feature on this list.

Anomalies aside, this list is a strong indication of how wealthy the people who live in a country are, as compared to a list based on Gross Domestic Product which is the value each person creates. The currency is US dollars.

1. Switzerland  $540,010

Famed for its Swiss Alps, neutral polices and secure banking, Switzerland’s wealth grew after World War 2 when people from other European countries deposited their money in the banks of Switzerland which were considered to be the safest option. Apart from the financial and banking industry, Switzerland’s economy is also bolstered by Swiss companies like Nestle, Logitech, Rolex and Credit Suisse. And who wouldn’t like to find a Toblerone in their stocking this Christmas?

2.  Australia  $396,745

Australia is rich in natural resources which are being  mined and sold for a healthy profit often at the expense of our natural environment. It all started with the gold rush in the 1820s and has been snowballing since then. The Australian dollar is high and tourism remains another mainstay of our economy. As an indicator of our resources, both underground and our pristine natural environment, Australian companies range from mining giants Rio Tinto to surf brands Billabong and Rip Curl.

3.  Norway  $355,925

The Kingdom of Norway is one a few highly developed countries in Europe that are not part of the European Union. Naturally rich in oil and natural gas, Norway is well known for its high cost of living. But the standard of living is high too with public health care free (above a certain level) and 46 weeks paid parental leave for new parents. Norway is also the second least densely populated country in Europe.

4.  France  $293,685

France has been a power house with strong cultural, economic, military and political influence in Europe, and around the world, for the last 500 years. Financial services, banking and the insurance sector are an important part of France’s economy; the French insurance company AXA is the world’s largest insurance company. France is also famed for it’s fine wine, food, fashion and design. Top French companies include Michelin, Louis Vuitton and L’Oreal. Mais oui.

5.  Singapore  $284,692

 The tiny island nation of Singapore has the busiest port in the world and is the fourth largest foreign exchange trading center in the world. Singapore is a world leader in several economic areas including finance, casinos, oil refining and foreign trading.  Singapore attracts business because its economy is known as one of the freest, most innovative, most competitive^, most business friendly and least corrupt in the world.

6.  Sweden  $284,146

Sweden is an export-oriented mixed economy with a modern distribution system, excellent internal and external communications, and a skilled labor force. Resources include timber and hydropower while the economy is heavily oriented toward foreign trade. Famous Swedish exports include Björn Borg, Abba and Ikea where I bought a lot of my furniture after moving to Australia. I’d love to visit the Swedish capital of Stockholm and Swedish Lapland which is seen as Europe’s last wilderness and a place where you can glimpse the northern lights and the midnight sun.

7.  Belgium  $275,524

The Kingdom of Belgium has more going for it than just chocolate. Belgium has a strongly globalized economy and a transportation infrastructure integrated with the rest of Europe. Being smack in the middle of a highly industrialized region has helped make Belgium one of the world’s largest trading nations although it is often viewed as one of the least interesting. The economy is characterized by a highly productive work force and high exports. Belgium most famous import is raw diamonds and it’s most famous export (apart from chocolate) is finished diamonds. Well known Belgian companies include Guylian, Godiva and Stella Artois.

8.  Italy  $259,826

Italy didn’t get rich from exporting pizza. Italy’s wealth comes from its influential and innovative business economic sector, an industrious and competitive agricultural sector which is the world’s largest wine producer,  and its creative and high-quality automobile, industrial, appliance and fashion design. Famous Italian companies include Fiat, Pirelli, Versace, Benneton and the coffee companies Illy and Lavazza.

9.  United Kingdom  $257,881

Like many countries in this list the UK’s wealth was kick started by colonizing other countries and plundering their natural and often human resources. I’m British so I’m allowed to say that kind of thing. With our colonial hey day long over, the economy in the UK remained strong because we kick-started the scientific and industrial revolutions. Today the economy in the UK is based around the automotive, aerospace and pharmaceutical industries. Even in the midst of a recession and with the British Pound plummeting in value, the UK still makes the 10 top richest counties list and you can’t beat UK companies like Rolls Royce, Virgin and Cadburys for global recognition.

10.  Japan  $248,770

Despite the terrible, tragic tsunami earlier this year Japan is still a rich country. Japan’s labor force consists of about 65.9 million workers and the country has a huge industrial capacity. Japan has some of the biggest producers of motor vehicles, electronics and processed foods. Agriculture and fishing are important industries too. People all over the world love Japanese brands like Nintendo, Toyota, Sony and, my personal favourite, Hello Kitty.

Interesting stuff but we all know wealth isn’t really about how much money you have in the bank or how much you earn. It’s about how rich your life is, how strong your family bonds and friendships and how much you enjoy your life on a daily basis.

But grinding poverty makes the quest for happiness hard and our responsibilities must lie in narrowing that great divide between rich and poor. Next time we’ll look at the 1o poorest countries in the world.

Stay Tuned

For the 10 poorest countries in the world, coming soon at Get In the Hot Spot. Choose updates by email or by RSS feed.

How rich are you and your country folk?

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5 Best Countries to Escape America’s Decline

Okay, you’re upset with the direction America is headed and you’ve been thinking of moving to another country. Perhaps you feel exhaustedly cynical about the political, economic, or social situation in the U.S. and think it is beyond repair. You wouldn’t be alone. Many top economists and other trend forecasters are now openly predicting that a total economic, environmental, and social collapse may be imminent in America.

Americans, young professionals and baby boomers alike, are increasingly saying that their main desire for moving out of America is to seek “political asylum” of sorts.  In the past, this political discontent was typically drawn along party lines — under Bush’s 8 years the exodus mainly consisted of bitter Democrats, while as recently as March Rush Limbaugh declared, half-jokingly, that he’d move to Costa Rica if “Obamacare” became law.  However, these days, more Americans have grown cynical of the system itself and have given up on left-right politics.

Many believe that dropping out of the system as much as possible is the best form of protest. And now, because many people can telecommute through the Internet, it seems that living outside the U.S. is more do-able than ever. Furthermore, the lower cost of living in many other countries may actually increase the standard of living for some people.

Surely, America will rebound from its eventual collapse, much like Russia and Argentina have, but it might make for uncomfortable sacrifices in America during the next decade.  More Americans are looking to “ride out the storm” elsewhere, while others desire to become permanent nomads seeking foreign opportunity and adventure.

It should be noted that no country is perfect and you’ll face challenges no matter where you go. You’ll find that modernization and rampant consumerism is expanding into almost every corner of the world. Some view this as a good thing, as more American comforts can be found, while others view it as a cultural blight to foreign lands. Your expectations must be kept realistic in that you may not find paradise, but your expat adventure may ultimately lead to a more peaceful lifestyle.

The criteria for countries of safe haven include social stability, economic opportunity, freedom of self-expression, relative self-sufficiency, and an essential local community strength. These critical components are the foundation for living life with a greater sense of independence.

Here are our 5 best countries for Americans to escape the decline:

1.Uruguay, whose official motto is “libertad o muerte (liberty or death),” is located in South America, southwest of Brazil and east of Argentina. Uruguay borders on the Atlantic Ocean and has developed infrastructure, a stable democracy, European flair, and rich culture that draws many expats to her borders. Uruguay is a constitutional democracy with one of the most developed economies in South America, possessing a high GDP per capita. Between the years 2007 and 2009, Uruguay was the only country in the Americas which didn’t technically experience a recession, and now has the lowest Income Inequality and highest Quality of Life in Latin America, second only to Canada in all the Americas.  Uruguay is rated as the least corrupt country in Latin America with its political and labour conditions being among the freest on the continent.  In 2010, Uruguay became the first nation in Latin America to test hemp cultivation, while no drugs are illegal for personal consumption.  Located entirely in the temperate zone, Uruguay provides an excellent climate for growing.

Housing costs are much lower than the United States, as well as health care and food. Some consumer products such as cars and electronics can cost more, as well as Internet connection fees. Americans can buy real estate and own businesses, and they have an automatic 90-day visa to explore Uruguay.  Americans only need to have a proof-of-income of $500/mth to apply for residency.

2. Costa Rica is a peaceful country in Central America, often referred to as the “Switzerland” of the Latin America due to its stable economy, political stability, and quality health care. Costa Rica, blessed with two beautiful coast lines (Pacific and Caribbean), is roughly the size of West Virginia and home to around 4 million people. The Central Valley’s eternal springlike climate is said to be one of the best in the world allowing for a year-round growing season.  Costa Rica is consistently voted one of the “Happiest and Greenest” countries in the world with about 95% of its electric production coming from renewable sources.  AARP and others have ranked it one of the best foreign retirement locations, as it has all the same modern conveniences found in America and is only a 5-hour flight from New York.

Besides the price of real estate, which is comparable to the U.S., the cost of living is lower — especially property taxes, health insurance, and fresh food. Americans have an automatic 90-day visa which can be renewed by leaving the country for 3 days before re-entering.  Non-residents can own real estate and businesses, but are not allowed to work without a work visa.  Residency requirements vary based on category.  Current information is available here.

3. New Zealand might be the most isolated fully developed nation in the world. It shares no borders, sits relatively distant from any other nation, has no real national enemies, has a safe democracy and a diverse landscape with many remote places to hide away within. Located in the South Pacific with beautiful beaches, sunshine, friendly people, and stunning vistas, it has two main islands and several smaller islands like Chatham Island and the Cook Islands. New Zealand ranks highly in international comparisons on many topics, including education, economic freedom, and lack of corruption.  New Zealand now ranks among the freest economies in the world with one of the least corrupt governments ranked #1 on the Global Peace Index in 2010 — second year in a row.  Its cities also consistently rank among the world’s most liveable.  The most commonly spoken language is English.

The cost of living is somewhat comparable to the United States.  Americans have an automatic 90-day visa to enter and explore the country.  Non-residents can apply for a 2-year work visa only in fields determined by immigration.

4. Iceland has a free market economy that has historically been one of the wealthiest and most developed nations in the world. In 2007, it was ranked as the most developed country in the world by the United Nations’ Human Development Index, and the fourth most productive country per capita economy.  In 2008, Iceland’s economy was devastated by the international bankers calling their foreign debt due.  However, because of pride and solidarity among the people, strong social services, a nearly self-reliant energy sector, and a manageable population (320,000), it is poised to recover once the foreign debt issues are settled. Iceland has passed legislation to establish the country as a “free speech haven” to protect journalists and their sources. This law is a huge deal as most Western countries seem to be heading toward regulating the Internet, and it has the potential to jump-start the Icelandic economy in terms of offering censorship-free servers and other services to journalists and internet businesses.  Iceland is also a peaceful country with no standing army.

Iceland will be working it’s way back from financial collapse, while the U.S. still appears headed for the cliff.  Because of the shattered financial system, there are good opportunities to live on less income in Iceland now than during its peak, while all the signs seem poised for recovery. Residency has traditionally been difficult to get in Iceland and is usually done through vital employment needs, but the new push as a political safe-haven may open up the process a bit. Currently, American passports have an automatic 90-day visa to visit Iceland.

5. Argentina has bounced back from its financial collapse in 2002 when it defaulted on international debt causing massive inflation and high unemployment.  The people said “Nunca Mas,” the government has since paid off its debt to the IMF, and Argentina now has one of the world’s highest qualities of life.  Argentina is the second largest country in South America and the 8th largest in the world.  It is a fully-developed country with strong agricultural production as the second-largest exporter of corn in the world — not to mention good wines and beef too.  The capital of Buenos Aires is known as the “Paris of Latin America” because it feels like a European city with rich architecture and numerous sidewalk cafes.  If the arts and ambiance with a low cost of living are your thing, then Argentina may be the best bang for your buck.

The cost of living is reportedly much lower than the United States for housing, food, travel, and health care.  Americans have an automatic passport visa of 90 days to Argentina as well. Pensioners will need to prove a $700 per month income to qualify for residency, while others can apply if they prove a steady income of $900 per month.

Activist Post: 5 Best Countries to Escape America’s Decline.

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The Age of America ends in 2016: IMF predicts the year China’s economy will surpass US

By Daily Mail Reporter
25th April 2011

The International Monetary Fund has set 2016 as the year China‘s economy will surpass the U.S. – effectively ending the ‘Age of America‘.

It means that whoever wins the 2012 presidential election will have the dubious honour of presiding over the fall of the Uniterd States.

It is the first time the IMF has put a time frame on the inevitable march of the communist country, and forecast has profound implications for the balance of global power.

Endless potential: A female worker in a sprawling weaving factory in Jinjiang. China’s roaring economy will overtake the U.S. in 2016, according to the IMF

Slow decay: By comparison, the once-bustling but now derelict Packard Motor Plant in Detroit is a stark example of the decline in U.S. economic power

The IMF seemed almost embarrassed to announce the news, inserting its prediction without fanfare on its website in recent days.

The ramifications for the U.S. – and indeed any country that has allied itself politically and monetarily to the superpower – are unsettling.

No country in the modern era has come close to matching the might of America’s economy.

Friends for the moment: Chinese President Hu Jintao and U.S. President Barack Obama together at a State dinner at the White House in Washington in January

Converging superpowers: The decline of the U.S. economy has been matched by the rise of the Chinese market. Their projected trajectories meet and cross over in 2016

THE SECRET TO CHINA’S SUCCESS… AMERICA

China as strictly enforced price controls and kept the value of its currency, the yuan renminbi (RMB), artificially low.

This has paved the way for the manufacture and export of goods at irresistibly low prices. The ‘Made In China’ label has become synonymous with remarkably affordable products – even if the quality and ethics remain questionable.

Ironically, one of the biggest consumers of these products is the U.S. – simultaneously bulking up China’s economy while starving its own, and delivering the purchasing power of the world’s largest economy to its main rival.

The big questions arise in the shifting balance of power from the U.S. to China.

The first question is whether the emerging China will be well behaved or aggressive, operating without constraints.

Another question is how the U.S. will respond to China’s dominance in both economy and military might.

The U.S. has faced and seen off more hostile enemies in the past – such as Imperial Japan and Nazi Germany, as well as the Soviet Union.

But it has never had to square up to a rival that outweighed it in economic strength.

At its very zenith, the USSR produced only a third of the goods and services of the U.S. Similarly, Japan at it’s peak managed less than half of America’s output.

China, on the other hand, has been accelerating towards the U.S. with remarkable speed. Just 10 years ago, the U.S. economy was three times that of China’s.

It’s a staggering statistic, even when taking into account the fact that the U.S. economy has been dropping down to meet China’s meteoric rise.

The 2016 date has taken many analysts by surprise, many of who were optimistic that America could hold out until the later part of the 2020s.

But Brett Arends writes in the Wall Street Journal that many have been looking at the wrong criteria when judging the prospects of both countries.

He said analysts were comparing China’s gross domestic product (GDP) against that of the U.S. – ‘a largely meaningless comparison in real terms’.

Instead, IMF analysts compared the difference in ‘purchasing power parities’ – what people earn and spend in their respective domestic markets.

Using this criteria, they found that the Chinese economy would grow from $11.2 trillion in 2011 to $19 trillion in 2016. Over the same period, the U.S. economy will rise from a dominant $15.2 trillion to a trailing $18.8 trillion.

The Age of America ends in 2016: IMF predicts the year China’s economy will surpass US | Mail Online.

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Canada’s corporate income tax fight: Who’s paying what

Whether or not to cut corporate income taxes — what companies pay into the public coffers — might be the closest thing Canadians will see to a real ideological debate in the 2011 federal election.

All three parties basically seem to get the notion of corporate competitiveness and the link to job creation.

University of Calgary‘s Jack Mintz has long advocated lower corporate income taxes. (University of Calgary)

But, the Conservatives, Liberals and the New Democratic Party differ as to where Canadian companies fit in the international landscape and whether chopping what these firms pay to Ottawa is the best way to create jobs.

Of course, some of these variations are the result of political calculations by the federal parties, designed to position themselves to get the most votes.

But, as is true with many questions one thinks have already been answered, sane economists also divide markedly about the effectiveness of cutting corporate levies.

The battle is joined

Some like the notion of chopping what firms pay.

“The recent and planned general corporate rate reductions are good for the economy with a minimal impact on government revenues,” Jack Mintz, Palmer Chair of Public Policy, School of Public Policy at the University of Calgary, wrote in a recent opinion piece in the National Post.

Others not so much.

“Corporate tax cuts may not reduce the costs of doing business but may, instead, contribute to rising business costs, falling profits, slower growth and job declines,” said Robert Lynch, chairman of the economics department of Maryland-based Washington College and an expert of U.S. corporate taxes.

Waving the low-tax flag

At first blush, the case for knocking down company taxes would appear to be fairly straightforward.

Proponents argue lower company taxes means more investment and more hiring. (Canadian Press)

“To increase after-tax cash flow — leave more money in the hands of business to invest,” noted Jeff Brownlee, vice-president of public affairs and partnerships for the Canadian Manufacturers and Exporters, an Ottawa-based business group.

Simply put, if a company has more cash on hand, it can buy more performance-enhancing machinery or hire new workers.

Conversely, if the government takes away that money, public officials are more likely to waste at least some of those tax dollars on inefficient projects, losing the maximum benefit the money could have on the overall economy.

Hiking profitability

A second — and related — point is that a lower corporate tax rate boosts the after-tax return of money spent on things like capital equipment.

That makes such investments more attractive to firms and keeps company cash out of dormant financial instruments, such as treasury bills and government bonds.

Thus, a lower corporate income tax rate might give firms an incentive to improve their business productivity, an area in which Canada has generally lagged for decades.

Brownlee also points to comparative factors, such as the need for Canada’s tax rates to mirror those in other countries. In that way, Ottawa can make sure domestic companies are not lured away to lower tax jurisdictions.

Who really pays?

Finally, proponents of lower levies complain that firms do not pay higher taxes; people do.

“Business taxes are borne directly or indirectly by people — workers through lower wages, consumers in the form of higher prices for goods and services, and shareholders through lower returns,” said the Canadian Chamber of Commerce in a February paper.

Indeed, many fans of eliminating corporate taxes argue that employees could be the biggest victims of the type of levy.

“The burden of corporate income tax can fall on labour. When faced with higher production costs due to the corporate income tax, firms can pass the burden along by decreasing their wage payment,” wrote Li Lui and Rosanne Altshuler, economics professors at Rutgers University in New Jersey, in a 2009 academic paper.

And, lest the opposing argument gets made that corporate income tax cuts will only benefit, Brownlee said, there are 120,000 Canadian businesses —more than 90 per cent of the small variety — that would see the gain from lower government levies.

Business sitting on its hands…

Needless to say, opponents to slashing business income taxes line up to turn the ‘pro’ arguments into a public policy pinata.

Jim Stanford (left), seen here in 2004 with CAW head Buzz Hargrove, argues that companies use tax cuts to boost cash in the bank. (Canadian Press)

Essentially, the gripes of the contrarians are more practical than theoretical in nature, namely that past corporate income tax cuts never generated much extra investment nor did they result in any new burst in hiring.

Jim Stanford, an economist with the Canadian Auto Workers and prominent critic of corporate Canada, argued in a recent report that business investment as a portion of the country’s gross domestic product (GDP) and as a percentage of commercial cash flows has fallen steadily over 20 years.

Meanwhile, at the same time, the country’s corporate income tax rate has been almost halved, from 50 per cent in the early 1980s to 29.5 per cent in 2010.

Stanford’s result is the reverse of what the lower corporate rates should have generated.

“Whatever impact this…reduction in federal corporate income taxes may have had (or not had) on business investment, it was vastly overwhelmed by macroeconomic factors which proved far more important in the determination of business spending,” Stanford wrote in a study of the Conservative government’s corporate tax cuts for the Canadian Centre for Policy Alternatives.

…Or worse, just hording cash

Similarly, opponents of tax cuts argue that many corporations stash away the extra cash from federal income tax cuts to shore up their feeble cash positions, not for any short-term economically useful purpose.

Indeed, Canadian firms accumulated nearly $500 billion in cash, deposits and short-term paper in the third quarter of 2010, according to Statistics Canada.

That is up compared with $413 billion in liquid reserves that companies accumulated in the second quarter of 2008, just prior to the beginning of the international recession.

Of course, such a policy might be prudent in the face of a liquidity crisis that hammered many firms during the period between 2006 and 2010.

And firms usually need to bank some cash before they start spending on equipment and other investments.

Still, Stanford complained, you would expect to see some pick-up in business investment during these years.

“Business capital spending has begun to recover, but by the end of 2010 was well under one-half of the decline experienced during the recession. The business sector is the only sector in Canada’s economy still spending less in 2011 than in 2008 before the recession started,” he wrote in another study, this one on capital spending trends.

Canada competes on rates

Finally, it is unclear as to whether Canadian corporate tax rates are out of line when compared internationally.

Generally, a country can have a low posted tax rate — essentially the percentage levied against profits that is listed on a tax form — and the “effective” rate — the federal assessment once you take into account taxes from other levels of government and special breaks governments sometimes extend to businesses.

For example, Canada has a statutory rate of 16 per cent in 2011, according to Deloitte Canada, a large financial consultancy and accounting firm.

Once you throw in taxes applied by other levels of government, however, that tax rate jumps to between 26 per cent and 32 per cent of a firm’s income.

Corporate tax	Statutory rate	Effective rate
Canada	16.5%	26.5
U.K.	28	28
U.S.	35	39.5
Japan	30	41
Germany	15	30
Source: Deloitte Canada

By Deloitte’s calculations, Canada’s lowest effective tax rate — the 26.5 per cent — is better than similar levies applied by the United Kingdom, the United States, India, Mexico, France, Germany and Brazil.

(According to the consultancy, Canada’s effective tax rate ranges between 26.5 per cent and 32.5 per cent.)

Thus, Canada’s effective tax rate looks more in line with its main competitors than is often assumed.

Political endgame

In the end, however, whether the last tranche of the Stephen Harper government’s corporate income tax cuts come to fruition will not come down to a bunch of eggheads arguing the intellectual merits of the policy.

Instead, the struggle will revolve around which leader can sell their vision better, Stanford said.

“Back in 2001, Paul Martin’s corporate tax cuts were not nearly so controversial — but that was when the government had a surplus (and) when taxes were being cut for everyone. It’s a much harder sell today… while the rest of Canadians are tightening their belts,” he said.

Canada’s corporate income tax fight – Business – CBC News.

Average Canadian family’s debt hits $100,000 as savings rate plummets

Canadian families’ average debt has hit six figures for the first time — and what they owe now amounts to 1 1/2 times what they make, according to the latest family finance checkup from the Vanier Institute of the Family.

The Ottawa-based think-tank’s 12th annual report, released Thursday, finds that average family debt has hit $100,000 and the debt-to-income ratio is 150 per cent, meaning that for every $1,000 in after-tax income they make, Canadian families owe $1,500.

“The fact that so many families are still reporting very shaky economic prospects, I think, reveals the disparities that are growing,” says Katherine Scott, director of programs and research. “Sometimes, I think we get hung up on the good story or the aggregate numbers so we don’t look below to see that a significant number of families do continue to struggle economically.”

The figures include mortgages, Roger Sauve, who authored the report, said Wednesday. The average mortgage in 2010 was $171,500. Sauve said the average household has a mortgage of $63,126 because not everybody actually has a mortgage.

In 1990, the average household debt was $56,800, the institute said, which means family debt has grown 78 per cent over the past two decades. At the same time, savings have shrunk, with the average 1990 family managing to sock away 13 per cent of their income, or $8,000, compared to a savings rate of 4.2 per cent, or $2,500, in 2010.

Canada‘s debt-to-income ratio is now about even with that of the United States — a finding Scott said may come as a surprise.

“There is still this sense that we are a more frugal nation and that’s simply not the case,” she said. “It was the case 20 years ago, but it’s certainly not anymore.”

The latest employment and GDP figures point to continued improvement from the low point of the recession, she said, but the momentum of early 2010 slowed near the end of the year and some areas of the country continue to struggle.

The report said that multiple surveys and reports from the past few months reveal that individual Canadians and families aren’t feeling any more confident.

“The story right now is that Canadians are still holding their breath and waiting to see how the next year plays out,” Scott said. “Many are sitting precariously at this point.”

Kurt Rosentreter, a Toronto-based certified financial planner known as the “Family CFO,” said the most common problem he sees with family finances is that people don’t have a plan or a clue of how to reach their goals. He calls 50 the “deer in the headlights” age because people who start their careers, marry, buy houses and have kids around age 30 finally have time to take a deep breath — only to realize major expenses, such as retirement and children’s educations, are looming.

“No one has a focus on their goals; they don’t know what their goals are,” he said. “They spend more time on their vacation planning than they do on sitting down with someone and going over their finances once a year.”

Contemporary families are also saddling themselves with the biggest mortgages any generation has struggled with, Rosentreter said, as they try to keep up with the people down the street or land a desirable postal code. But they’re leaving little money for vacations and car payments — or RRSP and RESP contributions, he said.

“No one has pensions anymore, mortgages are bigger than ever, there’s just more things tugging at our money,” he said. “Putting your kid through university is a six-figure price tag and no one is ready for it.”

sproudfoot@postmedia.com

Average Canadian family’s debt hits $100,000 as savings rate plummets.

U.S. Is Bankrupt and We Don’t Even Know It: Laurence Kotlikoff – Bloomberg

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Let’s get real. The U.S. is bankrupt. Neither spending more nor taxing less will help the country pay its bills.What it can and must do is radically simplify its tax, health-care, retirement and financial systems, each of which is a complete mess. But this is the good news. It means they can each be redesigned to achieve their legitimate purposes at much lower cost and, in the process, revitalize the economy.Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy: “Directors welcomed the authorities’ commitment to fiscal stabilization, but noted that a larger than budgeted adjustment would be required to stabilize debt-to-GDP.”But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”

via U.S. Is Bankrupt and We Don’t Even Know It: Laurence Kotlikoff – Bloomberg.