Has Asia made everyone on Earth Very Very Wealthy?

This is a study mostly of China... (and perhaps to a lesser extent Japan, Hong Kong and even India)
in specific I wanted to "approach" the question... Has Asia (and specifically) China made the earth very very wealthy!?

The graph is a "carefully study?" of the “Chinese Stock Index (in Shanghai)” to/with/and compare that to the “Chinese Currency (Yuan)” and then “re compare” this to Japan’s Nikkei 225 Index and also the Hong Kong Index and then finally with the SP500 Index.

After looking at all of these "financial factors" I started to think to myself that maybe what I’m doing here isn’t that important and maybe I needed to think about “all of this” from a different perspective entirely... ;)

so?

How much money do most people make per day on earth? (I started to ask myself…) (rather then looking at the graphs you see above?! ;). Is it (really) possible (in any way) to understand how people “are really doing” in Asia..? Health Wise? (by looking at "stock market data?") for example? Are they doing “okay” in Asia? Are they having fun? Or too much fun? and why so much pollution? by looking at “stock market data” and also “currency” information? Does this help at all?!?

:)

Lets try and understand this from 2 finically perspectives (just in case?), first only about 10 companies trade about 70% of all the worlds money each day. Again, is it even possible to understand whats going on if “only a few people are extremely rich?” (doesn't this "warp all the finical data into useless infoland?) Is it really true that “only a few people are very rich?” and whats the point of all this?

Well, if you study "economics" and the economy.. read on... ?

You probability have been told that trading on the “stock market” is “meaningless” compared to foreign-exchange trading? On an average day (for example someone tells you) about $5 trillion dollars are traded or about $200 billion per hour. Keep in mind that the GDP of the entire USA is about $20 trillion per YEAR not per day which just so happens to be $5 trillion dollars less then the GDP of China “per year”. These numbers really dont make much sense but supposedly they are true, even if “only 10 well known investment banking companies” are the main “players”. Whatever the numbers are its probably true that trading on the stock market is “almost meaningless” compared to the transactions that take each place on “credit cards” or with “real money”. However, none of this is what we really need to know about. Numbers like this shouldn’t be surprising because after all the top 1% owned 40% of the country's wealth at least in the USA, by the way that means the top 1% owns almost 50% of everything? The problem is that some research firms estimate that this number will soon be 70%?

Whats interesting about the wealthiest people on the planet is that maybe their wealth is 50% or more related to “stocks”? (so when its all done and “calculated out”) whos the right richest? Is it all about stocks? Why are there no currency traders on this list? For example, Bill Gates wealth is 60% stocks and the bulk of Jeff Basos’s wealth is about 12% of all of Amazon’s stocks. Is Microsoft really worth $150 per share? What about Amazon at $2300 per share? With P/E (price to earnings) at 30 to 100+? What if it was “5” or less? Why is “none of these” wealthy people listed as currency traders if currency is so vastly more “important?”

There has been a lot of different guesses and estimates on what people on earth “really make” in terms of money. Perhaps one funny way to think about “money” is in terms of languages people speak when they are “buying or selling”. Or who haggles on the streets more? Perhaps its better to think in terms of really different ideas that are “sorta” related to “cash / money?”

What would happen if the whole entire financially “system” collapsed? Would the number of facebook and linked in “friends” matter suddenly?

When it come to money, most people on earth still speak “Chinese”? In fact almost 1 billion people speak Mandarin Chinese making Mandarin (“the peoples language”) and the worlds most populous language followed by Hindi and then Spanish and then last but not least english (which you are reading). However, the truth is that about 20% of the people on earth ALSO speak “english” so technically although there are 1 billion people who speak Mandarin Chinese… there are more people who “CAN” speak english? There are so many surprising things about China. Not only is their language “artistic” looking in character their stock market (at least in Shanghai) is very very far from “conservative” in terms of “major price swings”. However, their currency is “surprisingly stable” for one full decade and then suddenly “floats” wildly in a “good direction” favorable for Chinese. Its almost as if the currency is like a tight fitting shoe that China was “born into”.

Perhaps one of the most important “financial revolutions” on earth started very very recently in Asia perhaps in the Winter (November) of 2005? (today), More than 1 to 2 billion people have been lifted out of poverty, thats about 1,000,000,000 “billion people”! For example, if you dont know this statistic already you should remember it! The total number of airplane passengers carried on scheduled services each year is about 4 to 5 billion people each year. That means theoretically ½ of everyone on earth could fly each year, with the exception of the “top 1% problem” where most of the wealth is still going to the very very rich. However, the total passenger traffic in the USA was slightly less then 1 billion passengers for the same timeframe. So the number would be something like 4 or 5 – 1 “bill”...ion?

Today, these Asian economies … and currencies… (China, India, Indonesia, Philippines, Vietnam, Thailand, Bangladesh, and Pakistan) are some (or partially include) some of the largest (in terms of population) upper-middle-income countries in the world and also include several of the worlds largest economies not in the trillions of dollars but in the 10’s of trillions of dollars and in China’s case the GDP per year is at an impressively astonishing $25,000,000,000,000 trillion PER YEAR?!

The problem is actually that the per capita income is still only about a quarter of that of high-income countries, the poverty line is about US$5.50 a day! The median per-capita household income (per year on earth) is $2,920 PER YEAR or about ~$8.00 per day with the richest countries making about $200 to $300 per day.

For the past 20 years this high growth has been based on low-paid labor, throughout the world not just in Asia. In Latin America they call this the “lost decade”. The colder further from the equator “white” countries of Latin America like Argentina have lost almost “all value” of their currency.

Are we possibly ready for a “lost decade” globally because of the “virus”?

Most of the “poor” no longer live in Asia, they live in Africa and Latin America and the “middle east”. The “very poor” are homeless and scattered throughout the world. For example, an estimated 5% percent of all Americans, or about 20 million people, live in “mobile homes” or “trailers”, many paying little if any rent and sometimes a paying surprisingly very high rent just for storage of a mobile home trailer.

Lets review the Chinese Economy in Specific: (from most recently to pre-historic)

The Chinese Economy hasn’t been doing good “recently”.. Unfortunately, something has been going “down” since a sudden “too-high” in May of 2015. However, the problem is that things are not “for sure bad”… they just are “wild” and also “not as good” as it was. The “first” financial revolution in China’s Stock Market was in 2007 and China almost setup a new stock market on a different planet it was so high, prices in the Chinese Stock Market went up almost 1000% from 2005 to 2007. If you compare the SP500 to the Shanghai Index the SP500 “looks flat growth” compared to the Chinese Index with the exception of “Hong Kong” which “follows” closely “behind” the SP500.

One thing thats interesting about China is that the “richest” “state” in China is actually across “the river” from Hong Kong. The richest people in China live along what is called the “perl river”. Wikipedia has a very interesting “link” to each of these (wealthiest) regions in China under the topic “Economy_of_China”. Whats further surprising is that the 2nd and 3rd most wealthy states in China are not Shanghai but regions North of Shanghai called “Jiangsu and Shandong” province. One might think or expect that the wealthy areas would also be along the coast of Shanghai just a little south… however, they are just North of Shanghai and not even that close to Peking. Zhejiang province (south of Shanghai is actually listed at 4th richest in China.. and then 5th is a very interesting and perhaps highly “polluted” area called Henan located “inside” china west of Shanghai in the very polluted inland city near or perhaps in or including / near Wuhan? Where the virus that we are all familiar with “started”?

While pre-historic Chinese stock market crashes from the early 2000’s and the “asian” crash from 2009 to the winter of 2014 was “more painful” in Asia then in America in terms of “years”. It take years to recover (years longer then in the USA) because Asia is much more complex in terms of physical finance geography and currency interconnected diversity.

I’ve also included a “price” oscillator based on “yearly astronomical seasons” (3 months or 1 “season” vs 12 months or 1 year price averages). The price oscillators are very helpful because we can see the “difference between a short term “seasonal” price AVERAGE and also a long/er term YEARLY average. Surprisingly the Chinese (3/12 financial) Oscillator shows a “lot of below” the average and too many “high highs”. So the economy is getting “better” in China overall but there are significant time periods of “negativity”. Suggesting that when things are hot in China they get really really good.. but when they are bad.. they are bad for about 4 years… with one year among the 4 bad years that is “good”?

In conclusion, we can say that the “Chinese” economy looks much much better then the Japanese Economy however, much much less stable for “outsiders” looking to buy into the Chinese Economy. So because there are “less” highs and lows in Japan’s Index we know that an “outsider” looking to invest may have a lot of difficulty in China because of 1000% price swings… Hong Kong looks “better then” japan in terms of “positivity” however, also less stable. So surprisingly, Japan seems “very stable” relative to “all the other economies” in Asia?

I hope I have thought of some important and helpful questions for you!

Perhaps the original question of “how much do people make” will one day be like asking.. what is the phase of the moon? With respect to everything else that is truly more important in our life.

:)

Your friend,
Asher!