Last week, two highly publicized events occurred in the United States that could shake the foundations of the limping economy. The first one, the passage of the Arizona immigration bill, has already led to boycotts and broken agreements. The second, an oil spill of epic proportions in the Gulf of Mexico by the huge British Petroleum oil corporation, is becoming one of the worst man made environmental disasters of all time.

We will skip all the political and environmental ramifications and concentrate on the effects on the economy.

I. The Effects of the Immigration Law on the Economy are Exaggerated.

Most people know that there have already been attempts to start boycotts against Arizona because of the passage of the immigration law. Furthermore, the Mexican government and many NGO’s have told travelers to stay away from Arizona – a state that attracts 15 million tourists a year. Also, people have begun boycotting Arizona Diamondback (a baseball team) games because one of the board members of the team supports the law, which I think is foolish, because the entire team is placed in limbo because of the individual actions of one man.

However, the two most significant actions that have yet to be realized are a possible breakup of business contracts by the city of Los Angeles (which does over $10 million in business with Arizona a year) and a similar action by California. I feel like the media has emphasized this a lot because it can really leave a crater in Arizona – which is home to one of the highest percentage of foreclosed homes in the nation.

Now, I feel like the threats from Los Angeles/ California will never be realized for one simple reason. LA’s budget deficit is very high and its already becoming hard for the city to accept loans due to its bad credit rating. The same story holds for California, which can’t afford to lose business to anyone. Will a Republican governor ever endorse a bill that means losses for businesses and contractors? Never.

There might be some pockets of boycotting against Arizona, but its going to be very hard (and probably unconstitutional) to end state contracts due a legal clause. It will get even harder if the Supreme Court upholds the legality of the law in the coming months. Will this be enough to affect Arizona? Maybe… but only because anything can effect Arizona at the moment.

II. How about the Oil Spill off the Gulf of Mexico in previously pristine waters?

The British Petroleum Oil Spill is a nightmare for everyone and could lead to a huge uproar against both the private and federal emergency efforts. As of today, the spill has a land area the size of Puerto Rico, in an area of the country where the fishing industry dominates the economy.

In the short term, crude oil prices have been hovering at a recent high of $86 per barrel because of investor fear of the ramifications that BP will have to face in the coming months as the publicized disaster chips away at the hearts of conservationists and environmentalists.

In the long term, the fishing industry is going to take a long time to recover. It might be a year or two before all the oil is cleared away and the fish begun to return to damaged areas. Fisherman, who pay a lot of taxes in the Gulf Coastal area, are going to be jobless and will stop being productive consumers and taxpayers until they can find new jobs or return to fishing. All in all, the carelessness of a giant company is not only going to hurt the marine ecology, but the economy of the country it relies on for off shore drilling.

Hopefully, the beauty of the coastal regions and wetlands can be restored.

I am going to turn the tables now and tell you the countries that have the worst economies in the world. Doing this list will allow people to see some common trends in these countries and help investors identify some trouble spots. Plus, its just interesting for anyone interested in finance to see how things are shaping up around the world after the Great Recession. To identify trouble areas, we list them in red so you can see what is each countries weak spot.

Without further delay, the Countries with the Worst Economies in 2010:

1. Portugal

GDP Growth Rate (2009): - 3.3 %
Public Debt: 75. 2 % of GDP
Unemployment: 10. 5 %
Economic Problems: Facing high unemployment and very high underemployment, a growing public debt, inefficient public sector, and corruption in the government.
Forecast:  Portugal will recover quickly from the crisis that has marred its once proud economy. Major parties signed an agreement on reducing debt on March 26, easing investor fears of a European economic fallout. Although the economy contracted in 2009, it is predicted to bounce back in 2010 with a 0.8% growth.

2. Zimbabwe

GDP Growth Rate (2009): - 5.7  %
Public Debt: 80% of GDP
Unemployment: 94 %
Economic Problems: Zimbabwe’s economy collapsed after the land reforms were initiated in the early years of the decade. Inflation was over 1 sextillion % (10^21), unemployment spiked, the GDP contracted 40%, and industrial production was cut in half.
Forecast:  Zimbabwe has the hardest obstacles on the road to recovery. Virtually no one has a job, the money is worthless and the government has no credit. Its going to take a lot of years of humanitarian effort and changes in the law to ensure that the country can be successful again.

3. Greece

Protest In Greece

GDP Growth Rate (2009): – 2.0 %
Public Debt: 125 % of GDP
Unemployment: 9.8 %
Economic Problems: The largest problem facing the Greek economy is an impending federal bankruptcy because of the huge debt. Furthermore, the government has a budget deficit of $50 billion dollars in 2009. Problems are further fueled by political and economic corruption.
Forecast:  As the 27th largest economy in the world, the faith of Greece can have lots of consequences on the world market. The stock market in the United States vacillates on positive and negative news from the Greeks and the EU and IMF (International Monetary Fund) are actively searching for ways to help Greece cope with its budget debt. The forecast looks bad for a few years (much worse than Portugal), but there is hope in the future once the worldwide market stabilizes.

4. Ireland

GDP Growth Rate (2010): -3.3 %
Public Debt: 42 % of GDP
Unemployment: 13.8 %
Economic Problems: Ireland has been in a depression since 2009 with GDP contraction of 14.5% in 2008, 9 % in 2009 and 3.3% predicted for 2010. Unemployment has skyrocketed to the highest amongst EU nations and bank solvency is under critical care.
Forecast:  Ireland faced the same problems that the United States is facing but was unable to come out of a deep recession because its economy was not strong enough. It has a shaky future, depending on financial bailouts from the EU powers and the ability for residential and commercial real estate to make gains.

5. Lithuania

GDP Growth Rate (2009): -16.8 %
Public Debt: 27 % of GDP
Unemployment: 14.6 %
Economic Problems: Lithuania was one of the last to be hit by the economic decline in Europe but was hit very hard. The economy contracted by almost 1/6th and unemployment skyrocketed, mostly due to reliance on Exports to EU countries. Real estate is still showing lackluster performance, but there is good news for trade as slight profits have been reported and the economy has stabilized.
Forecast:  Lithuania’s economic contraction is very similar this to the recessions that hit other Post- Soviet nations (Georgia, Armenia, Latvia, Ukraine, and Russia). However, most countries have begun to stabilize their economy and Lithuania is no different. It will begin to register growth by as early as Summer 2010.

Are you from any of these countries or have relatives living there that can describe the state of the economy? Where else do you think is the economy really hurting?

Today, I saw a documentary about advertising and marketing that really got me thinking about the mentality behind businesses today in the United States. The name of the documentary is “Consuming Kids: The Commercialization of Childhood” and brings to light the very troubling tactics employed by huge corporations to market their products to young children.

Consuming Kids is one of the most amazing documentaries I have ever seen.

The video begins by describing how advertisers and companies have targeted Congress into deregulating children’s advertisement and marketing and how there was an 840% increase in children’s spending in the past 25 years because of this deregulation. This is a growth about 7 times more than the inflation.

Currently, children have the spending power of the combined GDPs of the poorest 125 countries, worth a total of $700 billion, in America alone.

The documentary then describes how clever advertisers are creeping into children’s lives one area at a time – starting from small cartoons aimed at selling toys, to online games (including adver-cades) and websites, and now into brazen promotions of their products in numerous TV shows and movies.

Furthermore, these advertisers are using the fiscal crisis to purchase billboards and large advertisements in schools – where they promote unhealthy products and wasteful spending. An example of this was a donation of a scoreboard with Coca-Cola logos all over it to a certain school. Not only is this brainwashing children to spend money on unnecessary products and forcing their parents to make unwise financial decisions to seem “cool” and fit into their altered social standards – most of the stuff they try to sell is completely bad for the kids- chips, sweets, and processed foods.

Advertisers have hired many researches in order to get their science – including following kids in school and supermarkets, while they are talking to friends, and even in the bathroom to promote beauty products and studying their reactions to different shapes, colors, and voices. They have even exploiting friends and family – nothing is out of reach.

Another scary method used by advertisers is neuromarketing, which allows researches to see what areas of a child’s brain lights up when they see something exciting. All this is used to entice everyone to spend more money money and make the wrong decisions.

With years of extensive studies, marketers have perfected nearly all aspects of advertising – speeds and sounds, ethno and geotargeting, and even changing the shapes in their advertisements based on children’s responses as they grow older. Marketing has also evolved in recent years – not by exaggerating the product but by changing the mentality of kids to “You Are What You Have.”

The documentary also talks about how children are getting younger faster by citing examples of the makeup brand Tween, which used to be for 8- 12 year olds, but now is being used by six year olds girls. These social changes have altered the dynamic of being a child. Kids ages 12- 14 now spend 94% less time in creative games and activities than 15 years ago – a staggering figure.

In order to make a change in the world so that our children and grandchildren grow up in a society where people are not classified based on their material possessions For example, limiting children’s television and Internet time is a great way to stop this thirst for products and wasteful spending.

Children should not have to have things to be happy- surely an Ipod does not grant happiness. Kids are slowly getting older, faster. They aren’t enjoying the things that little children used to enjoy before – like spending time with their parents or reading a book.

The most horrible exploitation is that of young girls with sexuality and look preferences – so much that preschoolers are wearing mini shorts and skirts based on their favorite Bratz dolls. For males, the ideas of becoming a man and being able to dominate have begun creeping inside video games – where killing someone after a conflict is seen as the only alternative to a reasonable solution.

I can go on and on summarizing the this very educational film, however I rather my readers watch it and come back to me with what they learned and what they will do to ensure kids are not brainwashed and manipulated. How can we provide a healthier future for everyone?

Please watch this video and let me know. Click this link for the video.

In the Summer Olympics, the United States Olympics Committee committee spend half a billion. Similar heavy spending has allowed the US to rank number one in the overall medal count in the last 4 Olympics.

As a website geared around finance, we like to see things in terms of monetary efficiency. Of course, countries with more resources, population, and money will do better as more funding is available. It has been proven as a country modernizes, they will win more medals. In fact, Colorado College Professor Dan Johnson uses pure economics to predict the number of medals countries will win with a stunning rate of accuracy in the 90s (although neglecting numerous Post-Soviet countries which combined for almost 80 medals).

However, we collected a list of countries that performed the best and worst compared to their GDP? Our findings are amazing and we can attribute significant patterns to the rankings.

2008 Summer Olympics by GDP ranking:

1) Zimbabwe – 4 medals. 2008 GDP: $4.2 billion
GDP per Medal: $1.05 billion per medal

Before the economic destabilization of the country in the second half of the decade, the country had a GDP of about $32 billion.

2) Mongolia – 4 medals. 2008 GDP: $5 billion.
GDP per Medal: $1.25 billion per medal (Former Communist Country)

Armenia at the 2010 Olympics

3) Jamaica- 11 medals. 2008 GDP: $15 billion.
GDP per Medal: $1.4 billion per medal (Former Communist Country)

Democratic Socialist / Communist from 1972 – 1983.
All in track and field.

4) Armenia- 6 medals. 2008 GDP: $11 billion.
GDP per Medal: $1.83 billion per medal (Former Communist Country)

5) Georgia- 6 medals. 2008 GDP: $13 billion.
GDP per Medal: $2.16 billion per medal (Former Communist Country)

During the Soviet Period, Armenia and Georgia combined for over 60 medals.

6 and 7) Kyrgyztan and Tajikistan. Each had two medals and a 2008 GDP of 4.5 Billion
GDP per Medals: $2.25 billion per medal (Former Communist countries)

Kyrgyztan still practices seasonal semi-nomadism and its largest city has 750,000 people.

8 ) Cuba- 24 medals. GDP: $55 billion
GDP per Medals: $2.30 billion per medal (Current Communist country)

Fidel’s country has always outperformed expectations in the Olympics.
9) Belarus – 19 medals. 2008 GDP: $60 billion

Cuba Gold Winner

GDP per Medal: $3.05 billion per medal (Former Communisty country)

Belarus is the second largest country in terms of GDP in the top ten of the rankings.

10) North Korea- 6 medals. GDP: $26 billion
GDP per Medals: $4.33 billion per medal (Current Communist country)

Many people claim that North Korea’s only strong suit is its army…however the athletics program must also be pretty good, as a top ten ranking in the world only attests to success.

The Bottom:

- India is last, with one medal for $400 billion dollars.
- Venezuela had one medal total, and a GDP of $332 billion.
- Japan had a lot of medals (25) but a GDP of 5 trillion, for a GDP per medal of $200 billion per medal.
- The United States had the most medals (110) but a GDP of 14 trillion. GDP per medals for United States: $129 billion
- Israel, Austria, Mexico, South Africa and Egypt rounded out the bottom, ranging from 130 billion to 300 billion per medal.
Surely, something interesting is going on here. Why do nine of the top ten countries have communist backgrounds? Why are the bottom countries the most capitalist ?

In this blog, I will analyze the statistics behind budget inequality and its ramifications. I promise you will find this amusing.

First, I would like to share with you a simplified version of the US Budget:

Budget 2009 Proposed Discretionary 02102009

Yes, thats 58% of the 3.1 TRILLION Federal Budget on Defense.

If a family spent over half its money on defense, it would be starving, illiterate, and without shelter, and broke.
Sound familiar? It should.

In this article we will compare spending on these vital areas: Education, Health, Defense, Social Security, and finally: Natural Resource and Conservation

I. Education
“The whole object of education is…to develop the mind. The mind should be a thing that works” – S. Anderson

Countries with Highest % Of GDP Spent on Education:
1. Cuba – 18.7 % – Literacy Rate: 100% (Unicef) – 1st in the world
2. Yemen – 9.5% Literacy Rate: 67% (UN) Note: Yemen has recently made education its top priority.
3. Mongolia – 9%  Literacy Rate: 97.8% (Unicef)
4. Denmark – 8.5% Literacy Rate: 99.0% (Unicef)
5. Guyana – 8.4%  Literacy Rate: 98.8% (CIA.gov)
37. United States 5.7% – Literacy Rate: 86% – US Department of Education

The United States ranks far behind most developed countries and several second-world countries. Post-Soviet nations such as Belarus, Ukraine, Georgia and Armenia have literacy rates over 99.5%.

II. Health
“It is health that is real wealth and not pieces of gold and silver.” – Gandhi

Life Expectancy VS Spending

1. United States – 16.0% – Life Expectancy: 78 Years
2. France – 11.0 % – Life Expectancy: 81Years
3. Switzerland – 10.8 % – Life Expectancy: 81.7 Years
4. Germany – 10.4 % – Life Expectancy: 79.7 Years
5. Belgium – 10.2 % – Life Expectancy: 80.2  Years

Amazingly, the US Spends 2 trillion dollars in both public and private sectors, but the leading cause of bankruptcy is medical and our spending is far less efficient that countries like Cuba, Singapore, and Japan. In Japan, the life expectancy of 82.6 years is the highest in the world. Yet, most Japanese live in industrialized areas, such as Tokyo.

III. Defense Spending
Army: A body of men assembled to rectify the mistakes of the diplomats. - J. Daniels

WorldWwde Military Spending

1. United States (19.2 %) – 41.5 % of the World Defense Spending. 96th on Global Peace ranking.
2. Oman – 22nd on Global Peace ranking
3. Qatar- 30th on Global Peace ranking
4. Saudi Arabia – 90th on Global Peace ranking
5. Iraq – Last on Global Peace Ranking

With the exception of Oman and Qatar, both peaceful Arabian peninsula states, countries with high defense spending usually are the least peaceful. Least peaceful countries have more deaths due to war, economic instability, and less focus on social services.

IV. Social Security
One of the most urgent orders of business at this time is the enactment of hospital insurance for the aged through Social Security to help older people meet the high costs of illness without jeopardizing their economic independence.” – President Lyndon Johnson

1. Sweden – 20.9 % (7th Happiest country in the world)

Performance of Social Security Portfolios

2. Finland – 20.3 % (5th Happiest country in the world)
3. Netherlands – 20% (15h Happiest country in the world)
4. Denmark – 19.1% (Happiest country in the world)
5. Austria – 18.8 % (3rd happiest country in the world)
13. United States (12.6%)  - 17th happiest in the world.

The correlation cannot be rejected. If one looks at the list of happy countries, most of them stress social services above all forms of government expenditure. Happiness also leads to longer lives (Sweden is third in life expectancy).

V. Environmental Spending
“Your descendants shall gather your fruits.” – Virgil

1 Netherlands: 1.8 % of GDP
2   Austria: 1.7 % of GDP
3   Japan: 1.6 % of GDP
4.   United States: 1.6 % of GDP
5.    Switzerland 1.6% of GDP

Natural resource conservation has been growing all around the world as global warming fears heighten. It is also used as a political tool for both Democrats and Republicans.

Growing Environmental Protection Agency (EPA) Budget

The point of this article is one. The current fiscal crisis and federal deficit is going to have to be paid somehow. Already, $250 Billion a year is spent just paying the interest on the national debt and with trillions more being tacked on, where is the funding going to come from? It’s simple: the feds will cut back on vital funding for education, slash social services and health care, and increase taxes. What we need is someone in charge that can manage the debt, and although a surplus looks like a very bleak possibility, and balance the ballooning budget without compromising the necessary expenditures.

SmarterSpend has compiled a list of top ten ‘traditionally less known’ countries where investments can prove highly beneficial- whether it is a business or a real estate purchase. These countries are in no particular order.

Scroll through and let us know what you think.

1. Belarus

SmarterSpend Investment Rating: 8.0 / 10

Belarus Buildings

2008- 2009 GDP Growth Rate: 10.0 %

GDP: $118 billion

Population: 9.6 million

Human Development Level (HDI): 0.817

Government: Presidential Republic

Exports: machinery and equipment, mineral products, chemicals, metals; textiles, foodstuffs

Imports: mineral products, machinery and equipment, chemicals, foodstuffs, metals

Natural Resources: Forests, peat deposits, small quantities of oil and natural gas, granite, dolomitic limestone, marl, chalk, sand, gravel, clay

2. Brazil

SmarterSpend Investment Rating: 10.0 / 10

(+ for diverse economy, stable government, low threat of war/civil unrest, GDP growth, vast untapped natural resources, labor force, upcoming World Cup and Summer Olympics)

Aircraft Industry In Brazil

The Tidbits:

Brazil’s economy is the tenth largest in the world, but with a constant increase and a large population, it will be a focus of international investments in the future. Brazil has a strong agricultural sector fueled by coffee and soybean exports, oil reserves, industrial capability (VALE is a huge mining company), and petrochemicals. The trade balance is positive and there is no reliance on a single trading partner. The 2014 World Cup and the 2016 Summer Olympics, arguably the most international events in the world will be held in Brazil.

Look for Brazil to be in the news in the recent future as investors flock there.

2008- 2009 GDP Growth Rate: 5.1 %

GDP: $1.6 trillion

Population: 192 million

Human Development Level (HDI): 0 .813

Government: Presidential Federal Republic

Exports: transport equipment, iron ore, soybeans, footwear, coffee, autos, automotive parts, machinery

Imports: machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics

Natural Resources: Forests, peat deposits, small quantities of oil and natural gas, granite, dolomitic limestone, marl, chalk, sand, gravel, clay

3. Slovakia

SmarterSpend Investment Rating: 8.5 / 10

(+ for diverse economy, stable government, low threat of war/civil unrest, GDP growth. – for landlocked, – for negative growth rate)

Bratislava Financial District

The Tidbits:

Slovakia is a post-communist country in Central Europe and a member of EU, EuroZone, and NATO. Its economy is marked with the lowest income disparity in the world and foreign investment oriented laws. 1.6 million tourists visited Slovakia in 2006 as it features a beautiful natural landscape and rich cultural heritage marked. The southern part of Slovakia (bordering with Hungary) is known for its rich farmland. Growing wheat, rye, corn, potatoes, sugar beets, grains, fruits and sunflowers. Vineyards are concentrated in Little Carpathians, Tokaj, and other southern regions. The breeding of livestock, including pigs, cattle, sheep, and poultry is also important.

2008- 2009 GDP Growth Rate: 6.1 %

GDP: $119 billion

Population: 5.3 million

Human Development Level (HDI): 0.88

Government: Parliamentary Republic

Exports: Automobiles (16%), iron and steel (9.5%), and refined petroleum products (6.5%) apparel (4.3%), motor vehicle parts and accessories (3.6%)

Imports: consumer goods, 12.3%; food, 4.5%; fuels, 17.6%; industrial supplies, 30.6%; machinery, 19.9%; transportation, 15.0%; and other imports, 0.1%.

Natural Resources: Brown coal and lignite; small amounts of iron ore, copper and manganese ore; salt; arable land

4. Argentina

SmarterSpend Investment Rating: 9.0 / 10

(+ for diverse economy, stable government, low threat of war/civil unrest, GDP growth, high literacy rate, – for wide income disparity)

Buenos Aires Skyline

The Tidbits:

Argentina may be the most European influenced country in the Western Hemipshere, with 93% of the population coming from European ancestry. Argentina has a very high literacy rate and was considered one of the richest countries in the world in the start of the 20th century. Foreign nationals hold $76 billion worth of investments in Argentina and the country is open to moderate amounts of migration. Also, the country has rich mineral deposits and arable farmland.

2008- 2009 GDP Growth Rate: 6.97 %

GDP: $578 billion

Population: 40 million

Human Development Level (HDI): 0.86

Government: Federal Presidential Republic

Exports: Soybeans and byproducts, 23.4%; cereals (mostly maize and wheat), 9.7%; motor vehicles and parts, 9.3%; refined fuels, 6.5%; chemicals, 6.2%; aluminum and steel, 4.9%; natural gas and petroleum, 4.4%; other industrial products, 11.1%; all other (mostly processed agricultural products), 24.5%.

Imports: Industrial and computing machinery and parts, 39.4%; industrial supplies, 35.2%; automobiles and other consumer durables, 12.8%; refined fuels and lubricants, 7.5%; all other (mostly consumer non-durables), 5.1%

Natural Resources: Fertile plains of the pampas, lead, zinc, tin, copper, iron ore, manganese, petroleum, uranium

5. Panama

SmarterSpend Investment Rating: 8.0 / 10

(+ for diverse economy, stable government, GDP growth, – reliance on few trading partners, large trade deficit)

Panama City

The Tidbits:

Panama, an American invention, is a fully dollar based market economy with an emphasis on the banking and tourism sectors. Its near future economy will be bolstered by tolls from the Panama Canal rebuilding project, which will allow for twice the number of ships to pass. Unemployment is minimal and the country exports heavily to the United States.

2008- 2009 GDP Growth Rate: 9.21 %

GDP: $42 billion

Population: 3.3 million

Human Development Level (HDI): 0.840

Government: Constitutional Democracy

Exports: $10.29 billion: bananas, shrimp, sugar, coffee, and clothing

Imports: $15 billion: capital goods, foodstuffs, chemicals, consumer and intermediate goods

Natural Resources: Copper, Mahogany Forests, Shrimp, Hydropower

6. Romania

SmarterSpend Investment Rating: 8.5 / 10

(+ for diverse economy, stable government, GDP growth, trade surplus, numerous trading partners, rich in natural resources – irregular government planning)

Bucharest Chamber of Commerce

The Tidbits:

Romania is a EU member that has recently shown high growth rates and development, and the 11th largest economy in Europe. The country has high per capita incomes and a growing middle class. It has declining oil reserves but enough mineral output to supply its industry. The country is planning on extending its highway system and has a strategic location in SE Europe, where it is an important stop for commerce. Also, a tertiary economy is present with 51% of the GDP coming from the service sector.

2008- 2009 GDP Growth Rate: 9.37 %

GDP: $270 billion

Population: 22 million

Human Development Level (HDI): 0.837

Government: Unitary Semi-Presidential Republic

Exports: agricultural products, chemicals, footwear, fuels, machinery, metal products and textiles

Imports: machinery and equipment, fuels and minerals, chemicals, textile and products, metals, agricultural products

Natural Resources: Petroleum (reserves declining), timber, natural gas, coal, iron ore, salt, arable land,
hydropower

7. Dominican Republic

SmarterSpend Investment Rating: 8.5 / 10

(+ for free trade zone earnings, stable government, GDP growth, availability of labor, rich in natural resources

- resource mismanagement, reliance on remittances, energy shortage )

The Tidbits:

The Dominican Republic is the second largest economy in the Caribbean and Central America. It is now the largest tourist destination in that area and mostly serviced based, although sugar cane and ferronickel production are one of the major sources of revenue for the country. Underdeveloped energy and fishing sectors are the prime areas for future investment, along with a booming tourism sector. DR trades heavily with the United States, although it has been diversifying in recent years with Japan, Venezuela, and Mexico.

2008- 2009 GDP Growth Rate: 9.37 %

GDP: 10.7% (2006), 9.1% (2007)

Population: 10.1 million

Human Development Level (HDI): 0.777

Government: Democratic Republic

Exports: ferronickel, sugar, gold, silver, coffee, cocoa, tobacco, meats, consumer goods

Imports: foodstuffs, petroleum, cotton and fabrics, chemicals and pharmaceuticals

Natural Resources: nickel, bauxite, gold, silver, fisheries

Over the last year, the Federal Government has pumped in hundreds of billions of dollars in ailing corporations in order to preserve their backbone and to ensure the ripples of their bankruptcy are not felt around the world. Many can point the beginning of the current recession to the sudden demise of Lehmann Brothers, almost 6 months ago. Shortly after this, the Treasury began to pump money in at-risk corporations in the financial sector to avoid the chance of spurring another credit earthquake. Since then, $160 billion dollars, more than the GDP of some developed European countries, was pumped into AIG, $30 billion in JP Morgan, and hundreds of billions in other companies. Just recently, Feds announced that they would buy toxic assets in order to spur the credit market.

Americans should know and understand that the money pumped into any company by the US government is not given for free and has to be repaid over time. Some companies were forced to sell their subsidiares to begin the repayment process and others a large chunk of company stocks. People will see shortly the federal government dismantling unprofitable companies like a bomb expert safely dismantles a bomb. Furthermore, as the bastion for stability in the international market, the American government will. over the course of the coming years, pass laws that will limit the catastrophe caused by the fall of a single company and other statutes for lending and credit.

As the world watches, America must come out unscathed from the ashes of this devastating recession and prove that the capitalism it pioneered held its course even in the worst of disasters. In every corner of the world, heads of states truly believe America’s immoral lifestyle of excess and uncontrolled spending was the final straw that caused the fall of their own economies shortly after exports fell and credit from international lenders dried up. In order to preserve an image of certainty and continued dominance, Obama and his financial team must absolutely make drastic changes to every important economic statute and lend the way for a future of heightened government control.

I. Lawrence Summers
One of the most brilliant economists in the United States, Secretary of Treasury during Clinton’s presidency, and the President of Harvard University, he is the current head of the National Economic Counsel and had major input in the passing of the stimulus package, emphasizing tax cuts over infrastructure. Summers will be a major force in Obama’s administration in the coming years.

II. Jean-Claude Trichet
As the President of the European Central Bank, he has been caught up in the spiraling downfall in 2008 and has been a major force in dealing with the spread of the financial crisis to the weaker of the EU countries, especially those in Eastern Europe. His policies in the upcoming months will dictate the future of these countries, the strenght of the EU, and the future of trade between US and the EU block.

III. Warren Buffet
Buffet’s status as a legendary investor was hurt, but not tarnished, during the financial crisis. He spent billions investing in Goldman’s Sach and GE, and although he lost some money, his financial portfolio has been more sturdy than anyone’s. The “Oracle of Omaha’s” investments seem to influence the market and carry more weight than anyone in the world.

IV. Abdallah Salem el-Badri
Secretary General of OPEC, his decisions are going to be vital in the survival of many international corporations after the recession. Companies that were on the verge of collapse during the oil price peak got life breathed into them as prices dropped, but will be under heavy stress as OPEC begins to cuts production to deal with excess oil.

V. Ben Bernanke
Chairman of the Federal Reserve, Ben Bernanke has already lowered interest rates to near zero percentages and has pumped billions into the financial sector. Bernanke needs to come up with creative ideas on how to deal with a federal budget that has neared the $2 trillion mark.

VI. Lou Jiwei
After a few big losses in American financial firms, Lou is taking money out of American companies and investing in China. His investment firm is worth hundreds of billions of dollars, meaning that those companies will be losing out in tons of liquid investments.

VII. Eric Schmidt
The CEO of Google is leading a changing dynamic of the Internet where advertising and searches are shifting from traditional powerhouses Yahoo and Microsoft to Google, which is now the most viewed website on the Internet. Google has been competing online with social networking, webmaster tools, blogs and offline in the smart phone realm. As the head of main medium of information exchange, he has a major influence on the spread of finance information.

VIII. Vladimir Putin
As the former President and current Prime Minister of Russia, he has strong popular approval and a strong circle of friends, ranging from billionaire nuclear physicists to oil moguls. His control over vast land resources, natural gas, and oil gives him formidable power in the upcoming years.

IX. Angela Merkel, Barack Obama, Taro Aso
As the Chancellor of Germany, the biggest economy in Europe, Merkel has decisive power over the healths of other European countries as Germany could be the key to saving almost 12 countries from bankruptcy. Merkel has used her power to change the business laws of some countries on the receiving end of stimulus packages- Hungary, Austria, etc.

Barack Obama’s power as the President of the largest economy in the world is undeniable. He pushed for the passing of the stimulus, which could make or break the future of the United States as the economic powerhouse of the world.

Taro Aso, the Prime Minister of Japan, leads a country in the midst of the worst economic plummet of the late 2000 recession. Real GDP estimates show that Japan’s economy will plummet 9% in 2009, worse than all developed countries in the world. He needs to make wise decisions in the face of a changing population structure in Japan to save his country.

X. Paul Krugman
The Nobel Prize winning economist is a leader in international economists and together with Lawrence Summers, the academic mind behind today’s economic policies. While Summer seems to make more right-winged decisions, Krugman has repeatedly emphasized building up the nation’s infrastructure as a way to get America out of the recession.

I. Toyota Motor Corp.
2008 revenue : $264.8 billion (Ranked 5th)
2019 revenue estimate: $1.07 trillion

The fall of General Motors and Ford, the other large automakers in the world, will leave Toyota the lone giant in the automobile industry. From 1998- 2008, Toyota’s revenue grew more than 300% and TMC  surpassed GM as the largest automaker in the world. With a less competitive market, Toyota’s brilliance will lead them to assume the title of the most powerful corporation in the world. Their annual production will double in the same years as demand for growing populations in developing countries increases.

II. Saudi Aramco
2008 revenue : $199 billion (Ranked 8th)
2019 revenue estimate: $975 billion

Prior to the recession, with gas prices swelling to the near $150 range, Saudi Aramco had plans to double its oil production in a matter of 5 years. Investors know that ultimately oil prices will reach almost double its previous highs and Saudi Arabia will be the leading petroleum producing nation in the world.

III. Walmart Corporation
2008 revenue : $374.5 billion (Ranked 2nd)
2019 revenue estimate: $912 billion

The second largest company in the world as of 2009, Walmart was one of two stocks in the Dow Jones to post an increase in share value in 2008 (13% return, the other being a 0.50 percent return for McDonald’s) . Due to the financial crisis, many of Walmart’s competitors will go out of business, leaving Walmart unchallenged in its continued rise in dominance.

IV. ExxonMobile
2008 revenue : $477 billion (Ranked 1st)
2019 revenue estimate: $890 billion

ExxonMobile has been posting record revenues and profits even through the economic turmoil. It has a great leadership umbrella, enough oil to last almost 20 years with current projections, and an interest in incresing its power through offshore drilling, land purchases, and research. It loses its top rankings because it only holds 1% of the world’s oil and gas reserves and needs to increase holdings to keep up with the other giants.

V. AT &T Corporation
2008 revenue : $119 billion (Ranked 28th)
2019 revenue estimate: $810 billion

Don’t be fooled by the 28th rank in revenue. At & T posted bigger profits than most companies ahead of them. Also, coming in at 5th in total market capitalization, it is a significantly large company and growing rapidly due to increased demand for internet and telecom services. As the Internet evolves and becomes a major part of everyone’s lifestyle, At & T will become a dominant force in the economy.

VI. General Electric
2008 revenue : $169.7 billion (Ranked 14th)
2019 revenue estimate: $775 billion

Although it has been having trouble with its share value in the recent weeks as investments are hesitant about investment in the stock market, in general, GE has been around since the Dow Jones was created and will continue to prosper in the future with numerous investments in alternative energy, medical software, and more. It’s market capitalization (third) will allow for big investments and great rewards.

VII. Samsung Group
2008 revenue : $174.2 billion (Ranked 12th)
2019 revenue estimate: $740 billion

The world’s largest conglomerate posted a $13 billion profit in 2008 after heavy marketing and recently surpassed Sony as the largest electronics company in the world. With electronics becoming a bigger part of everyone’s lifestyle and Asian countries growing in power, Samsung is poised to become a top ten company within a short time span.

After the First Great War, there was no real power as Europe tried to recover from the devastating damage to infrastructure, the loss of a generation, and a Spanish flu virus which killed more people than the war itself. The United States began its dominance at sea, but surely, we weren’t the only power. During the 1920s- 1940s, the world suffered a global depression that was many times worse than today’s economic collapse and clearly and no country could be classified as a “superpower.”

World War II left the United States and the Soviet Union as clear global powerhouses. During the 1960s, the American society enjoyed affluence due to noncompetitive outside markets and prospered like no other group of people ever had. The Soviet Union benefited from a broken down Europe and increased its influence all the way to East Germany until its collapse in the early 1990s.

After the dissolution of USSR, the United States was the only superpower in the world, both economically and militarily for the first time in its history. The Dot Com boom generated jobs and for a few years the United States had a budget surplus, the lowest poverty rates in its history, and the most years of consecutive sustained growth. Living in the 1990s it would be hard to imagine an America so.. ill.

With that said, it is possible to predict the influence of countries in the near future based on recent economic performance and potential for future growth. Countries are ranked in order of current GDP and given a score out of 10 based on certain criterion. All numbers are based on December 2008 figuresn. It is important to note that pre-recession numbers are accounted for in the growth rate because its likely that when the recession does end, similar growth patterns will be seen. Finally, red items are causes for concern and green items are the definite advantages.

1) The United States of America
Gross Domestic Product (GDP): $14.58 trillion
Real Growth Rate:  1.4% (2007-2008)
National Debt: $12.25 trillion
Population Growth: 0.883%
Other: America is still the most influential country in the world, with a diversified economy and very high per capita GDP. After the recession, American’s will spend less money and waste less, reducing public debt and forcing economic realignment. A quick end to the war(s) in Iraq and Afghanistan will provide more money for domestic purposes. The US is still the leading power as the global economic crisis affected every country.
Superpower Potential: 8.5

2) Japan
Gross Domestic Product (GDP): $4.48 trillion
Real Growth Rate:  0.7% (2007-2008)
National Debt: $1.492 trillion
Population Growth: -0.139%
Other: Japan economy plunged 3.3% last quarter and the GDP will slip at about 10% annually. Leading exporters are cutting jobs on a grand scale and the most successful companies are posting losses in the billions. Also, Japanese consumers are cutting back faster than American counterparts. Couple this with a negative population growth and an upside down population pyramid (more older people than young), Japan will see heavy declines in the upcoming decades.
Superpower Potential: 2.5

3) China
Gross Domestic Product (GDP): $4.22 trillion
Real Growth Rate: 9.8% (2007-2008)
National Debt: $420.8 billion
Population Growth: 0.629%
Other: A labor force over a billion people,  a rapidly growing economy, and vast land resources will allow China to prosper and influence the world in many ways. In understanding the Chinese rise to superpower status, one has to understand its main source of income, exports. If exports drop, China drops. In fact, due to recent decreases in demands, over 10 million Chinese were laid off last year. When China begins to be more diversified, then the world has reason to fear.
Superpower Potential: 7.0

4) Germany
Gross Domestic Product (GDP): $3.8 trillion
Real Growth Rate: 1.7% (2007-2008)
National Debt: $4.5 trillion
Population Growth: -0.044%
Other: Germany’s overwhelming national debt will stand as a problem in ever gaining leverage against other countries. Also, Germans have a very large public debt, similar to the United States. However, Germany had diverse exports and was second only to China in 2009 in total export value.
Superpower Potential: 4.0

5) Brazil
Gross Domestic Product (GDP): $1.665 trillion
Real Growth Rate: 5.2% (2007-2008)
National Debt: $236 billion
Population Growth: 1.3%
Other: Many people talk about China and India as superpower hopefuls in the 21st century, yet there is not much talk of Brazil. Oil, soy, and coffee exports have allowed Brazil to enjoy a quarter century of spectacular growth after the lost decade in the 70s. Brazil has vast mineral resources and has several huge international corporations (Petrobras, Vale, etc). The only negatives are a smaller population (althought growing fast) and less military power.
Superpower Potential: 5.5

6) Russia
Gross Domestic Product (GDP): $2.25 trillion
Real Growth Rate: 6.0% (2007-2008)
National Debt: $571 billion
Population Growth: -0.478%
Other: With tens straight years of growth at 7% annually since 1998 and a progress minded people hoping for the pre-Soviet collapse stability allowed Russia to jump into the world scene. The war in Georgia showed the West that Russia wants its respect back. Russia has oil and energy and provides up to 40% of the natural gas to Europe. Russia (largest land area) also has nuclear weapons, a powerful arsenal of advanced weapons, and untapped mineral resources in Siberia.
Superpower Potential: 7.0