Money and Power

Money and power go hand in hand. When you look at the cash holding of a company or country, can you tell where does all the money come from? Ultimately it comes from its human resource, that is, the people make money for a company or country. If the people are not motivated, they will squander all the money they have. This shows human resource is the best place to invest despite all the popular talk about material resources.

The following is a list of the richest American companies in comparison with the richest countries. The company data is obtained from Time Magazine (Sept 8-15, 2014), and the country data from Wikipedia (2014):

China, 4010 (billion US-dollar cash reserve)
Japan, 1276
Saudi Arabia, 739
Switzerland, 549
Russia, 465
Taiwan, 429
Brazil, 377
South Korea, 367
Hong Kong, 325
India, 319
Singapore, 274
Germany, 207
Mexico, 193
Algeria, 193
Thailand, 169
Apple, 159 <============ Richest company
France, 155
Italy, 152
UK, 143
USA, 143
Microsoft, 84
Google, 58
Verizon, 54
Pfizer, 49
Cisco, 47

Several things stand out from the above list:

High-tech companies have stolen the limelight from those in traditional industries like drugs, oil, automobile and banking.

Japan is flushed with cash even though it is poor in natural resources.

China has climbed to the top despite being one of the poorest some thirty years ago when it was closed to the outside world. Its biggest resource is its 1.2 billion population. Its economy is projected to overtake the US’s before 2020. By that time, China’s per capita GDP will amount to only $16,000 compared with $66,000 for the US. On a per capital basis, China will always rank low because anything divided by 1.2 billion will be reduced to a small number.

The US government has even less cash than Apple Corporation after running years of persistent huge deficits. Due to rising prosperity seen in Asian cash reserves, America is forced to re-pivot its strategies to put more emphasis on Asia.

September 2014

This entry was posted in 21st Century, Economics/Politics, Game Changer. Bookmark the permalink.

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