The Rich Get Richer: Top 1% Control $52.8 Trillion or 39% of World’s Wealth
The wealthiest 1 percent now control 39 percent of the world’s wealth, and their share is likely to grow in the coming years, according to a new report.
The world’s total private wealth grew 7.8 percent last year to $135 trillion, according to the Boston Consulting Group’s Global Wealth report. The top 1 percent control $52.8 trillion, and those worth $5 million or more control nearly a quarter of the world’s wealth.
Top 1% Own 39% Of All Global Wealth: Hoarding Soars As We Hurtle Toward Economic Oblivion
According to a study that was just released by Boston Consulting Group, the wealthiest one percent now own39 percent of all the wealth in the world. Meanwhile, the bottom 50 percent only own1 percent of all the wealth in the world combined. The global financial system has been designed to funnel wealth to the very top, and the gap between the wealthy and the poor continues to expand at a frightening pace. The global elite continue to hoard wealth and heap together enormous mountains of treasure in these troubled days even though the economic suffering around the planet continues to grow. So exactly how have the global elite accumulated so much wealth? Well, one of the primary ways is through the use of debt. As I have written about previously, there is about 190 trillion dollars of debt in the world but global GDP is only about 70 trillion dollars. Our debt-based global financial system systematically transfers wealth from us and our governments into the hands of the global elite. And of course the gigantic banks and corporations that the elite control are constantly gobbling up everything of value that they can find: natural resources, profitable small businesses, real estate, politicians, etc. Money, power, ownership and control are becoming very, very tightly concentrated at the top of the food chain, and that is a very dangerous thing for humanity. When too much money and power gets into too few hands, it almost always results in tyranny.
It’s A “0.6%” World: Who Owns What Of The $223 Trillion In Global Wealth
Back in 2010 we started an annual series looking at the (re)distribution in the wealth of nations and social classes. What we found then (and what the media keeps rediscovering year after year to its great surprise) is that as a result of global central bank policy, the rich got richer, and the poor kept on getting poorer, even though as we predicted the global political powers would, at least superficially, seek to enforce policies that aimed to reverse this wealth redistribution from the poor to the rich (a doomed policy as the world’s legislative powers are largely in the lobby pocket of the world’s wealthiest who needless to say are less then willing to enact laws that reduce their wealth and leverage). Now that the topic of wealth distribution (or rather concentration) is once again in vogue, below we present the latest such update looking at a global portrait of household wealth. The bottom line: 29 million, or 0.6% of those with any actual assets under their name, own $87.4 trillion, or 39.3% of all global assets.
Here are the key highlights via Credit Suisse:
- Global household wealth in mid-2012 totaled $223 trillion, equivalent to USD 49,000 per adult in the world. This is a decline of $12.3 trillion mostly due to a $10.9 trillion decline in European wealth, however it is double the $113 trillion in total wealth at the start of the millennium
- Losses in Africa, India and the Latin American countries were offset by modest gains in North America (USD 880 billion) and China (USD 560 billion),
- CS expects total household wealth to rise by almost 50% in the next five years from $223 trillion in 2012 to $330 trillion in 2017. What CS does not say is that the bulk of this increase is courtesy of Federal Reserve-facilitated wealth redistribution from the lower and middle classes to the upper class.
- The number of millionaires worldwide is expected to increase by about 18 million, reaching 46 million in 2017.
- China is expected to surpass Japan as the second wealthiest country in the world. However, the USA should remain on top of the wealth league, with $89 trillion by 2017.