Worldwide Financial Planning

This week the natural disasters keep on coming, with another potentially more damaging storm about to hit the south-east cost of America, and at the time of writing there is breaking news of a huge earthquake in Mexico that might have caused many fatalities.

The economic impact of these events is always difficult to estimate.

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It is still too early to fully understand the human cost, even before we begin to consider the economic costs.

But to give some sense of the scale of the impact, it has been estimated that insured losses alone will top $90bn, and that doesn't even begin to cover the lost production and capacity.

If the average family in the UK was earning £1,908.20 in 1951 they would be earning double their annual household spending and be able to save. If they were earning £1,908.20 in 2017, they would be falling short by £25,593.00 and unable to stay alive never mind save.

Investors appear to have grown used to Trump's overactive and unpredictable mouth and seem to be focusing on the real risks including discussions over the debt ceiling.

If Congress fail to agree to raise the cap on how much the government can borrow the US would be unable to borrow more money to pay its bills, which could lead to a credit rating downgrade for the US.

As mentioned last week the South Korean economy would be hammered, and it accounts for 2% of the worlds economy. The war on Syria has cost them 60% of its economy (GDP). The last Korean War cost South Korea 80% of its economy (and 1.2m lives).

This will be a U.S led war on foreign land so consider that in 1952 the U.S government was spending 4.2% of its own economy fighting that war and the Iraq War cost U.S. (actually its tax payer) 5% of a year's economy.