The World Economic Forum has identified the world’s soundest banking systems across the globe. Vital information for any consumer and investor to know in these devastatingly uncertain and turbulent times.
Canada has the world’s soundest banking system. Good news for me considering my wife is Canadian. Should this Yankee need to flee for a financial safe haven (and free health care), Canada will be a great option.
Closely behind followed Sweden, Luxembourg and Australia. As financial crisis and bank failures shake world markets, the survey by the World Economic Forum provided some enlightening and startling information about arrogant and seemingly (now questionably) economic super powers such as Britain and America.
Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador and Peru, after a 50 billion pound ($86.5 billion) pledge this week by the government to bolster bank balance sheets.
The United States, where some of Wall Street’s biggest financial names have collapsed and been crippled in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa.
The World Economic Forum’s Global Competitiveness Report is worth earnestly heeding and considering before investing in nations whose banking systems are problematic and given to systemic failures.
As for me, I’m extremely bearish on the dollar. Despite short-term gains based on momentary hype, patriotism, and the global credit crunch …look for the central and foreign banks across the globe to dump dollars and buy gold, Euros, Chinese yuan, and Japanese yen. The day of dollar dominance is over!
My advice to investors, follow the lead of the Central and foreign banks. Beware of listening to the U.S. media’s propaganda machine. The world is disenchanted with America thanks to the war in Iraq and U.S. military imperialism to prop up the dollar as OPEC’s currency of choice. America’s longtime arrogance is coming to an end with the death of the dollar.
When the dollar dies, look for the global economy to say good riddance.
The top 20 ranked banking systems are:
8. New Zealand
10. Malta 11. Hong Kong
15. South Africa