In my last article for Talkmarkets (The Reintroduction of Globanomics) I reintroduced to my followers the theory and principles behind my globanomic philosophy.  Because of the upcoming election in the United States, I cannot think of any better time than now for a couple of primer lessons in Globanomics. 

Consider this article Lesson One.

In today’s age, trustworthy and reliable data exist for almost anything you want to analyze and so it is in the case for Globanomics. In my own personal globanomic analysis I collected nearly eighty (80) different variables that measure such things as food production, water availability, shelter (housing), wealth, infrastructure, energy production and consumption, business development, environmental impact, health, personal safety, scientific creativity, etc., for every nation in the world.

When such data is gathered, one can begin understanding the economic condition of the world better than you can using any other approach than Globanomics. A good example of what I mean can be seen in the following table, which shows the results of a few of my globanomic variables after aggregating nations into comparative peer groups.

The analysis below was developed after capturing globanomic data for every country in the world that met at least one of the following two different criteria: (1) in the top fifty of the most populated nations in the world; or (2) in the top fifty most wealthy nations in the world based upon Gross Purchasing Power per Capita (GPP/cap).

Under this approach I identified 68 nations that account for 90.2% of the world’s population and 94.1% of the world’s gross purchasing power. The following table shows the results for a few important globanomic variables after breaking down the 68 nations into four groups (each group consisting of 17 nations) with the 17 nations with the lowest GPP/capita in Group 1 and the 17 nations with largest GPP/capita in Group 4. Take a thorough look at the table then we will discuss.

Here are a few questions I might ask.  Can you diagnose any patterns from the above? Are you surprised by anything that you see in the data? What is your overall takeaway from the above results?

Does it surprise you that the seventeen countries in Group 4 have almost twice the wealth per capita as the seventeen countries in Group 3? Does it surprise you that Group 3 has more than double the wealth per capita as Group 2, which has almost four times the wealth per capita of Group 1?

Do you notice that pattern differences in life expectancy and median age between the above four groups? Did you see that electrical power consumption followed pretty much the same pattern as wealth did between the groups?

What about labor utilization? Did you notice how much labor is devoted towards agriculture in the poorer countries than the wealthier countries? Did you notice how much labor is devoted towards the service industry in the wealthier nations compared to the poorer nations? What about median age? What about the percent of population in the workforce? What is your takeaway from those facts?

The above information is only provided as an example of what you can learn from globanomic analysis. There is so much more.

Now before ending this first lesson in globanomics, I want to leave my followers with a pop quiz. In my own analysis, I also collected the data under the following nation or nation-group categories:

1. United States
2. China
3. India
4. European population equivalent to the U.S. (i.e., France, Germany, Italy, Spain, and United Kingdom)
5. Other Eastern (i.e., Japan, South Korea, Taiwan, Singapore, Hong Kong, Australia, and Vietnam)
6. Russia and Brazil
7. Wealthiest countries (excluding the United States) that when aggregated come to a population equivalent to the United States.

The following table shows the aggregated results under the above defined groupings; however, the data displayed is not in the above order. Your job, if you so choose, is to see if you can match up the country or mix of countries (i.e., 1, 2, 3, …, 7) above to its associated data (i.e., A, B, C, . . ., H) in the below table. The answers will be provided at the end of this article. 

If you were able to match each group with its data, you are on your way to becoming a globanomicist and you will be ready for lesson two (my next article). In that article you will discover why the upcoming election is so important in terms of globanomics. The above information (along with a few other globanomic ditties) tells us that if the United States wants to hold on to and play its current leadership role in globanomics, then it is imperative that we change Administrations in November. But for that explanation you will have to wait for lesson number two.

In the meantime, just be satisfied to know that I am a true believer and bullish on the United States and its marketplace. Nothing, outside of another insane election result in November, will shake that faith and bullishness. I worry, but I have faith our nation will make the right choice. If not, “Katie bar the door”, all bets are off.

Now here are the answers to the above pop quiz:  1A, 2C, 3D, 4B, 5F, 6G, 7E.