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The Rich Are About To Get Very, Very Rich: Study Finds Global Millionaire Wealth Set To More Than Double By 2020
A new study by Deloitte confirms everyone's worst fear (and every millionaire's wettest dream): the wealth amassed by millionaire households is set to increase by more than 100% over the next 9 years. From a total of $92 trillion held by the world's richest in 2011, by 2020 the world's millionaire households will possess $202 trillion, or roughly 4 times current global GDP. Even though much of move up is attributed to the wealth surge in the developing world, the biggest beneficiary is, you guessed it, the United States where the millionaires (those with net wealth of at least $1 million), who currently account for $38.6 trillion of total wealth, will see their assets increased by 225% to $87.1 trillion! And while a comparable study of how much wealth the lower and middle classes are set to lose over the next decade, we are confident that it will be roughly comparable...inversely. So if anyone harbored any illusions that the current status quo was about anything but the rich getting richer, all those can be promptly swiped aside.
The key findings of the Deliotte anti-Robin Hood study:
- According to our analysis, the total wealth of millionaire households in the 25 economies included in this study is forecast to grow from $92 trillion in 2011 to $202 trillion in 2020.
- Our study suggests that the rebalancing of global wealth is expected to accelerate over the next decade. Emerging market (EM) economies are likely to prove to be more dynamic in terms of growth rates, creating significant opportunities for wealth managers seeking to gain a share of these potentially lucrative markets. Among emerging markets, China may continue to be the driving force in the growth of millionaire wealth, followed by Brazil and Russia. Of the 25 economies examined in this study, China and South Korea are likely to join the top10 in terms of the total number of millionaires by 2020.
- However, there is a paradox at the heart of this story. According to our study, in spite of the rapid growth of wealth in the EM economies, U.S. and Europe will remain the global centers of wealth over the next decade, in terms of both the amount of wealth held and the number of millionaire households. Our analysis indicates that aggregate wealth of millionaire households in the U.S. in 2020 will likely reach $87 trillion, from $39 trillion in 2011.
- Our forecasts suggest that, in 2020, 43% of the world’s wealth among millionaire households will be in the U.S. Opportunities for growth potentially exist via greater U.S. state penetration. In the U.S., California will likely have the most number of wealthy households, while New Jersey may continue to have the greatest density. The East Coast is likely to see the highest growth rates —New York and Florida together may add 1.5 million new millionaire households by 2020.
- Our forecasts suggest that total wealth among millionaire households will increase from $92 trillion in 2011 to $202 trillion by 2020, a growth of 119%. In emerging markets, the growth over the next decade is potentially quite impressive (260%), significantly outpacing the growth (107%) in developed markets.
The breakdown by country. Note that millionaire assets are poised to increase by well over 100%...
According to our study, the total wealth among millionaire households of the 25 economies in this study generally exhibit little change in their ranking over the next decade. Emerging market economies will likely see some upward movement in rank (e.g., China).
...Even as the total number of millionaire households is expected to grow by well under 100%.
In terms of the total number of millionaire households, emerging markets are likely to see an upward movement in rank, with some economies rising meaningfully (South Korea, Mexico) and others dropping slightly (Taiwan, Turkey).
And then a quick look at the creme of the crop: the households who likely account for well over half of the total trillions in assets held, those who have over $30 million (remember the Talebian scale issue here), are only 871 currently, of which well over half, or 496 reside in the US. The global number of uberwealthy households is expected to rise from 871 to 1,719 in 2020, with the US once again accounting for the majtority, even as China rises by the most: from 46 to 327.
Lastly, here is what percentage of total households the uber wealthy ($30MM+) represent:
The proportion of the ultra-wealthy in relation to total households in 2020 is likely to be the highest in Singapore.
Full report, which we are confident will set off an avalanche of protests against wealth aggregation among the general media (link)
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>the United States where the millionaires...will see their assets increased ... to $87.1 trillion!
$87 trillion isn't even enough to pay for federal obligations. Sadly, these people will be prime targets for a ravenous, hypertrophic government, and they will be victimized, whether it be through taxes, devaluation of the dollar (counterfeiting), or other crimes.
I'd much rather be poor and be operating in a free market and sane structure of production self-organized around consumers' subjective values, than be notionally rich and living in a doomed, socialist, self-cannibalizing economic hellhole based on coercion, theft, and fraud.
Wouldn't you?
A sad commentary on where we are, indeed. The old saying: 'The business of America is business' is long gone.
Nonsense: business has rarely been better when it comes to killing Black and Brown people.
People be getting PAID to exterminate the darkies!
You do realize that the ruling class owns the government, and they put into it puppets of their choosing to do their wet work.
Like Austerity.
You do understand, don't you? The rulers are safe from government, because they run government.
Oh let's shed a tear for the abused multi-millionaire class, shall we? They aren't taking hits now, what makes you think anything is going to change?
You'd rather poor, "operating" in a free market? Move to Somalia.
Actually it is an interesting mix of marxists and libertarians, financial news junkies, as well as a few paranoid guys hunkering in their bunkers that make up most of the zero hedge crowd.
I come here for the articles, but I stay to fight. Gotta go back to work!
There are hardly, if any, Marxists here, a few Social Democrats.
I'm not sure if he makes any difference between those two.
I wish I had a better grasp on what people are trying to express when they call others "Marxists."
Marxism is a social philosophical theory about the industrialized market functions. It's not, in itself, an agenda.
Marx wrote The Communist Manifesto well after Das Kapital, and in that work he described "communism" as he envisioned it. THAT was an agenda, and was clearly what he thought was the ultimate result of the social vs. economic conflict.
All "Marxism" is is the underlying theory that led him to embrace communism. There's no inherent conflict in being a "Marxist" and being a capitalist. A person can view the industrial state from the same perspective of Marx and conclude that some form of capitalism is the ideal economic system.
And what's worse, people who don't understand the subject pretend "Marxism" is FALSE somehow!
Theoretical models are rarely "false" in any meaningful sense. The "Newtonian model" of mechanics might be called "false" by someone ignorant enough of the subject because more recent work has pointed out some inconsistencies and failures of it, but *everyone* reaches for the same fucking equations when they want to solve a momentum problem.
I so wish more the folks here with the most to say would devote just one quarter of their ZH posting time to reading the work of the philosophers they love and/or hate. It would make things so much more interesting.
Ignorance is on parade daily in ZH comments.
fight?
all i see is you running away. specifically from the question i pu to you several times now.
again -
what accounts for the massive transfer / concentration of wealth upwards into the hands of a few over the last several decades?
A swinging guillotine. How novel.
Regards.
+1
Wait? Why is this bad? Trickle on economics has been working swimmingly for the past 2 decades.
Wait, I meant trickle down....
I don't begrudge a millionaire's wealth. Enjoy! But I am a little peeved that the lower 99.5% of Americans haven't enjoyed ANY real wage growth since 1973. What went wrong? Anyone? Bueller? Bueller?
Just a guess, but didn't we come off the gold standard right about then?
Ding ding! We have a winner!
Yes, indeed, you are the winner! Your prize is a fine, brand-new Amana Electric Range with Built-In Infrared Broiler (invented by NASA!), in Harvest Gold!
Thank God - A family with $1M in savings earns about $43,189 at the current highest (artificially derived) 'risk free' rate. Under ZIRP policies, we need a nation of millionaires just to buy bread and beer. Forget paying for college.
May 20th comments by Don Coxe, references Mark Carney's private economic comments that were accidentally released by CIBC, where he states things are much gloomier than what he's stated publicly.
http://goldandsilverlinings.com/?p=1028
This is bearish for Harold Camping inc. The worlds supposed to end Saturday
who currently account for $38.6 trillion of total wealth, will see their assets increased by 225% to $87.1 trillion
The math is wrong, that would be 125% gain.
Also, taking 9 years to double your wealth is AWFUL!!! That is a very poor return.
Of course, if we get the hyperinflationary end like everyone here is saying, then that means the "rich" will become unbelievably poor if they only managed to double their net worth.
Not everyone with a net wealth over $1 million is corrupt. Some have actually gotten there the old-fashioned way.
Inheritance.
Nice try, but no.
Maybe try redirecting your unabated cynicism into something of worth to others. If you're going to complain about how unfair the world has been to your opportunities, you ought not be spending time rappin' the keyboard...
My unabated cynicism always seems to receive confirmation in stories and analysis like this.
Good effort to divert the discussion. But back to the point: since when did people stop inheriting wealth?
I never said people didn't inherit wealth. That's not the point, it's just the one you want to talk about, apparently because you can't accept the reality that some people earn themselves into a stable financial position.
Do you have anything of substance to offer here or are you just a grandstanding poser?
I've asked it about a half-dozen times in this thread:
Where does profit come from to these chosen people? Does it fall from the sky into their laps?
The answers are here. You're not looking hard enough...
So true.. they only screwed a few people.
Why such venom in response to someone who's circumstances are completely unknown to you? Who are you really talking to?
Don't bother mayhem. Some people you just cannot fix. They do not know how to get wealthy therefore anyone who did succeed at it just HAD to screw someone over along the way.
Yet, i have not seen anyone yet, who could explain to me, how it can be efficient, that a minority is hoarding a ressource. It appears, that some free market proponents, have not understood what purpose said free market has, and go by "free market for the sake of free market, with no limits whatsoever". That such a naive idea of a free market contradicts itself, they fail to notice. I guess SOME free market proponents are better described with the term "Darwinist".
Judging by your 4th-grade spelling and sentence logic, you are not old enough to realize that there has not been a market "free" from significant intervention in some time. So when you criticize the "free market," recognize you probably have never observed one. Undermining it has been the sleight-of-hand tactic of those who want it to fail...
*thinks about if he should classify that guy into the "troll" category, or just the "fucking idiot" category* I think i'll for now go with the later.
Oh, and by the way - just FYI since you failed to read my post - i didn't criticize free markets.... i criticized certain types of free market proponents, because their idea of a free market is selfcontradicting - in other words, they do not understand how a sustainable free market works.
I read your post before and after you edited it, Dr. Revisionist. Please go back to English I before wasting more space here attempting to communicate.
1. I edited that post to APPEND text to it, so i did not revise anything.
2. So, i take it that you have no arguments besides of insults? You've nothing but "oh, what he writes vaguely LOOKS as if he is bashing free markets, so i'll defend my ideology by insulting him and posting stereotypical defensive phrases, even if they have nothing to do with what he said"?
So, what does that make you? Some blind free market fanboy, who flames anyone who remotely criticizes something (actually "someone") related to free markets? And you're doing this, even if that member is criticizing something BECAUSE it is anti-freemarket, and thus he actually is a free market ADVOCATE? What a fucking stupid tool you are.
Looks like someone's lost his xanax...
I was merely pointing out that the notion of a "free" market is unobservable, and therefore no inference should be drawn about free market efficacy from anything going on in the prevailing market.
The rest of the commentary goes to your "clumsy" communication. As they say, lucidity is worth 50 IQ points.
So knock yourself out trying to paint me as "stupid." I don't think you'll get a following here with that mantra.
delete
And here's the fraudulent frenchie going full retard on her campaign to become the next sugar mama for the corporate and bankster elite. She wants to show she's willing to step on the faces of tax payers everywhere and make sure the analysis presented here will come true.
05-20 11:37: France's Lagarde says against forcing haircuts on private creditorsThe "trickle down" supply side economics, right?
Pay $$Billions$$ in Bonuses and Bailouts to Wall Street and a few dollars trcikle down to the Hoi Poloi?
Trickle down happens when rich old farts take a leak.
'those who have over $30 million (remember the Talebian scale issue here), are only 871 currently, of which well over half, or 496 reside in the US.'
- Those numbers seem to be off. It's ether $300 ml (still seems too low) or 496. I mean to be in the Forbes 500, one has got to be worth over 1 bl.
496,000 households with over $30M.
got it, didn't look at the table itself, just the summary.
496K makes sense.
They are getting richer because they pay all the taxes. LOL. And all the useless peasants just sit around collecting trillions in transfer payments from Socialist governments. The peasants are getting richer and richer, perhaps in 10 years their combined wealth will equal 100 billion. Wow!
The rich suck every penny from the 99% of peons, soon to be feudal servants. The thing is majority don't have a clue how real economics work, they still think that wealth accumulation is a "good thing." No it is NOT! There is no shortage of money in USA or Europe, but it's concentrated in too few hands. That money just ends up chasing assets, and finances deficits to the peons. In the end: the peons will lose everything in asset speculations and end up paying off all the debts.
Greece is perfect example of will happen in US. It's the 99% of peons who are stuck paying off debts to EU, the rich Greeks have already stolen as much as they can--they and their assets are long gone from Greece.
Kinda weird how the larger the socialist states grow, the poorer the proles get. Just damn strange.
this phony market measure of economics is broken and no longer even a glimmer of a economic democracy any more. top down liquidity rolling like water off a ducks back. the widening gap between cost of goods and purchasing power, no surprise at all. any who chose to serve the system, or worse, just themselves, are surface dwellers.
- enjoy your shallow pond
Tyler,
This is, sadly, a great post. What I mean is that more than others of late, it has drawn out some of the more visceral elements in the underlying current of conflict. The comments are evidence of how deeply the prevailing environment is weighing on people. How concern has metasticized through anguish to anger, rage, and hopelessness. I'm not sure we can appreciate the intensity of pain that seems to lie ahead.
It sounds like the working class is going to be busy pissing in the bisque.
So in the USA there are almost 500,000 households with a net worth of at least $30M. That sounds like a lot of households. People with $30M in net worth shouldn't feel so wealthy then.
Any idea how many households with say $100M in net worth?
Good question. Another good question is how long before a household with 1M of net worth is eligible for food stamps?
"It was the best of times; it was the worst of times." - Charles Dickens
As the gap between the aristocracy and the common people broadens, one would be wise to reflect back on the occurrences which took place prior to and during the French Revolution. France was nearly bankrupt. Revenues were insufficient to meet the obligations of the monarchy. There were capacious tax exemptions for the aristocracy and other upper castes of society, such as the wealthy bankers and merchants. The Comptroller of Finance argued for greater tax cuts for businesses to spur growth and proposed that the Treasury borrow more money to meet government committments. As a matter of fact, the Comptroller published false and misleading economic and deficit data to bolster his arguments.
Prices for everyday items such as food and fuel had reached a point to where the poor and what was left of the middle class had an extremely difficult time providing for their basic needs. The rich, meanwhile, lived in ever excessive opulence where expensive trinkets and fine jewelry were shamelessly flaunted publicly.
A Committee of Public Safety was established to defend against foreign attack and, more importantly, to keep the masses from organizing internal uprisings. The Committee eventually morphed into the main center of power within the country.
The seeds of revolt were reaped when the overtaxed and underfed middle and lower castes had finally reached their breaking point upon coming to the realization that they had truly nothing left to lose. Soon after, the Great Fear began when peasants rose up against their feudal landlords in the countryside. This revolt spread when the urban dwelling Sans-Culottes followed by becoming increasingly violent to their wealthy oppressors.
The rest, my friends, is history. The question is: What next for America?
I wonder to what degree the breaking point for the masses will be extended. Porn on demand, TV, Pizza Hut, an extremely resilient occult supported fiat system.
Bullshit:
If the USA doesn't self-terminate economically by 2020, everybody will be a millionaire due to inflation and a worthless USD. We're talking about cumulative net worth of a persons lifework here, not annual salary. One milllion isn't really saying that much. In 1980 real terms, this is only a $330,000 net worth for a lifetime of work, saving, and investing.
Ten years from now one million might well be cut in half from that -- the equivalent of only $150,000 in 1980 real terms.
These types of predictions and analysis are the specialty of the Bohemian coffee house socialists who work overtime on class warfare and envy, instead of a job. The most excellent news for them is that will be getting triple the food stamps and other welfare, while contributing less than zero to productive society.
They can continue to proudly boast they contributed nothing to anyone's increase in net worth, anywhere.
But...but, they CARE so much about the plight of the common man. Surely that elevates them to a level that we owe them a free ride?
Their very thoughts are what makes them superior to vulgar masses.
The report was prepared by Deloitte, the premier financial service company. The report is designed to convince wealthy households to seek financial and wealth management services which the firm offers. That is hardly a few unemployed Bohemian types that attempt to stoke class envy; it's targeted audience is certainly not peons like you!
Your understanding how real economy works is appalling; you make some silly assertions about wealth and worth of some over the others.
Well here is fact for you: real net wealth of an average American has been steadily declining since 1980s. The fact that the top wealthy individuals can double their wealth in 10 years is striking, considering that in this climate almost all will suffer an opposite fate and declining standard of living to boot.
The word: useful idiot fits you like a glove.
Most of the 'rich' will get richer nominally, with ego's inflating, and then suddenly realize they got poorer in reality. It'll be a blessing in disguise for many of them.
Japanese governments FAQs for People Living Outside the Fukushima Evacuation and In-house Evacuation Areas
Click the link below to read an incredible work of misinformation that will surely--at a future point in time--become forensic evidence used in a lawsuit against TEPCO and the Japanese government for criminal negligence.
By using this document, the Japanese government is trying to talk down the Fukushima problem and assure people that there is absolutely nothing to worry about, which we know is total hogwash because even small dosages of radiation are said not to be safe (and the dosages Japanese are getting are NOT small). Some of the goggle translated 22 FAQs and answers include (read here):
http://fukushimadisaster.blogspot.com/2011/05/japanese-govts-faqs-for-pe...
I guess the question is, who really is a millionaire? Or better phrased, what is the meaning of being rich? My interpretation of being rich is probably much different then most peoples. I would much rather have a fishing pole and a small skiff then an MBA and a yacht full of masked wannabes...
http://www.youtube.com/watch?v=k7JlI959slY&feature=player_embedded
Greed-Avarice here in lies the problem. It's not just bankers... big bonuses and high salaries for management and no sharing of the fruit of the labor with the worker bees... Companies paying non livable wages while the ceo get's 15 million a year etc.
The rich could end up getting very dead.
tl;dr
more millionaires=bad thing
lol How idiotic.
Commies will never admit they are promoting evil.
They are like rust. They never die, or rest.
The Nazi Rat is pro-theft, provided its the masses being robbed by his bosses.
Vikram Pandit needs a sponge-bath, boy: run along and service your master.
I am unlikely to feel bad because Islamic, communist, rage boy disapproves of me.
Carry on, rage boy.
Done with his sponge bath, Herr Röhm?
I don't disapprove. I appreciate your open fascism, NaziRat. Much better than keeping it bottled up inside.
When the shit goes down, you're the low hanging fruit.
William Dudley needs a backrub: get to work.
It is nice to be appreciated. Why don't you get your dad Dinnerjacket to release a nuke and I can come and explain pain to you and yours. I would enjoy every second of that lesson.
I might give your mom a sponge bath if she is as hot as many Persian women I've known. A great many escaped your evil totalitarian regime. I'd like to liberate more. Just give me the excuse.
Kill the rich, anyone?
Boil them, that way we can at least make soap from their rendered fat!
Bookmark+
Well,
Lot of Mergers as we can see. I think about NBC and Comcast and Qwest being bought out a while back.
Billionaires will walk all over millionaires.. franchise owners and doctors will be the major taxpayers.
OK, so who is advising these millionaires....Deloitte?
If they have a combined current total wealth of $92 trillion and they diversify 10% ($9.2 trillion) into gold bullion, they would own more than the estimated 130 metric tons available above ground. The math...130,000 tons is 4,585,620,000 ounces valued at today’s close $1,513.50 is about $6.94 trillion in USD.
If they were to invest .07% (aka $64 billion) that would exceed the market cap of GLD. Ummmmm......are they missing the boat or are we about to go on a wild ride?
We can auction arnolds sperm, oh wait scratch that hes giving that away.
According to the MARKETING PIECE by Deloite:
10,541,000 US HOUSEHOLDS OF MILLIONAIRES
(Assume 3 people to a Household)
Over 10% (1 in 10 for those who can't pass the captcha) of the Americans you know are already millionaires.
Eliminate the Americans on foodstamps, and 1 IN 5 is a millionaire.
The report is strictly measuring current net monetary wealth but includes the (probably underwater) net value of the primary residence. It makes no assumptions about future inflation.
It's either the "enemy in the mirror", or "these are not the millionaires you are looking for"
Um. That's stupid. A 10 year-old whose father owns a $2 million house is not a millionaire. I mean...come on.
You don't want to let the rhetoric get away from you. If you think about it, someone out there would say that if 1 of 5 Americans are "millionaires," OBVIOUSLY we can afford to raise taxes on the top 20% to help pay down the debt.
Let's not get silly.
But the whole Deloitte report is silly. Final census data from 2010 isn't available but there are projected to be 110,000,000 households and a little over 2.5 persons per household. Deloitte says there are 10,541,000 "millionaires." The math is simple. The kids are a small fraction, the spouses are a significant fraction.
The top 20% of the US includes about 22.6 million households, if both spouses work and earn $44,000 each, then they are in the top 20%.
Guess I'm missing the point. But that doesn't matter much, because as I've noted many many times, the "average" millionaire is just another working-class schlump.
Oh my god, what the f*** people are doing with this money?? My goal is to buy my own house and pay it as soon as possible and I want to travel, what would I do with million of USD?
People are just crazy and they cannot be surprised by upcoming disasters like bubble in commodities etc.