Happy New Year everybody!

Another year has passed and it is time for us to make predictions for 2011.

No World War 3

World famous fortune teller Baba Vanga has said that the Third World War will begin as an ordinary war at the end of 2010 and last all the way up to 2014. As luck would have it North and South Korea have had several armed conflicts starting from November last year – so there is still a possibility for this prediction to come true.

Although 85% of Baba Vangas predictions have come true I am certain that World War 3 will not happen – at least not in 2011.

Wikileaks will get harassed but will still be around

The governments of the world who have something to hide will do everything they can to get Wikileaks banned. If possible they will look for a legitimate way but most likely this will fail – instead they will make the effort to discredit anyone who has something to do with the organization. More often than not this is done in secrecy in order to leave an impression that the governments had nothing to do with it.

Obama will keep losing credibility

A lot of the things that Obama promised while running for president have not come true. For instance the closing down of the Guantanamo Bay prison that is used to hold terror suspects was originally intended by January 22nd 2010 but it will most probably still be around on January 1st 2012.

Obama’s road of small failures will continue and as a result he will be losing credibility slowly but surely.

More trouble in the Euro zone

Although my home country Estonia was the 17th nation to join the Euro zone there are dark times ahead for the currency.

We will see at least one more European country getting into trouble that is eventually bailed out.

Despite of the trouble the Euro will still be around in 2012.

Oil prices over $120 per barrel

On January 1st 2010 the oil price is 91 dollars per barrel. It is my prediction that during 2011 the price will rise to over 120 dollars per barrel – an increase of more than 30%.

The main reasons area a weak dollar and an increased demand by developing countries.

Winter storms

The heavy winter storms witnessed in 2010 in Europe and USA will continue in the winter of 2011. This will raise several questions since people have not seen such severe storms for a long time. Are we in the beginning of a short ice age?

New Apple products

Apple will release their new iPad with a camera – this will give life to a boom of video calls using Skype and Apple’s own Facetime App.

The new iPhone 5 will also be released – nothing revolutionary there. In all aspects it will be slightly better than the iPhone 4 and very likely it will also be available in white. You can also hope for additional colors but they will probably debut with the iPhone 6 in 2012.

I will make a full income online

While I already make a hefty sum with my online ventures it is currently not enough to survive in luxury without a regular job. 2011 will most likely mark a year when I can start concentrating solely on my online businesses.

What are your predictions for 2011?

Here is a list of TOP 10 happiest countries in the world. The basis of this list is research done by professor Ruut Veenhoven who runs the World Database of Happiness at Erasmus University Rotterdam.

How is happiness measured?

Happiness can be very subjective. Some people are happy when it rains, others are happy when the sun is shining. So how is it measured? Apparently the people at World Database of Happiness take into account a number of different things such as average life expectancy and most importantly the answer to the following multiple choice question “How happy are you?” (Although the actual question has varied a bit throughout the years). Having all the variables they run it through a computer and get a number from 1 to 10. The bigger the number, the happier the country

Happiest countries in the world

10. Luxembourg – 7.6 points

Living in the worlds richest country inevitably puts a smile on your face! This small landlocked European country has an army of 800 people (yes, 800). They don’t have a navy nor an air force but together with Belgium they can afford to own 1 military cargo plane. Beat that US!

According to the Guinness Book of World Records Luxembourg holds the world record as the country that consumes most alcohol in the world per citizen.

9. Guatemala – 7,6 points

This Central American country borders with Mexico in the north and is located between the Pacific Ocean and the Caribbean Sea. This location makes it a very difficult country to stay happy in – Guatemala is frequently ravished by hurricanes and earthquakes that often kill thousands of people. Main exports of Guatemala include coffee, sugar and bananas. The latter is probably why they are so happy – have you ever seen someone that can stay sad while eating a banana? 56% of all Guatemalans live in poverty. If you ask me, they can use the cheap bananas!

8. Canada – 7,6 points

Many people have no idea that Canada’s head of state is actually Queen Elizabeth II – the head of the British Monarchy. This meant that when Britain declared war on Germany in World War I, Canada was automatically at war with the soon to be Nazi country. Unlike the neighboring US, Canada has never cancelled its relations with Cuba and has declined to take part from the Iraq War – instead, it has played a leading role in the United Nations peacekeeping missions and helped to launch a $1.5 billion initiative to help develop vaccines that could save millions of people in poor countries. It seems that happy people make a happy country!

7. Sweden – 7,7 points

This “welfare state” model is an excellent example of effective national taxes.  Among other things the state provides universal tax-funded childcare, parental leave, health care, education (including university), retirement pensions and sick leave. Including value added tax (VAT – kind of like sales tax), it is possible to pay up to 80% of your income as taxes. Contrary to popular belief, Swedes are quite OK with their high taxes – after all it gives them tons of high quality services and they almost never need to take drastic action like taking quick payday
loans just to make ends meet. In fact, most of the services for the public are free, so what’s not to be happy about?

Sweden is also the home of IKEA – the worlds largest furniture store. IKEA’s founder Ingvar Kampard is famous for being the 7th richest person in the world (Net worth $31 billion) and driving a 15 year old Volvo station wagon. It has been claimed that more people read the Ikea catalogue than the Bible – and that one in ten Europeans have been conceived on an Ikea bed.

6. Australia – 7,7 points

The name “Australia” comes from the Latin word “Australis”, meaning “Southern”. Australia is the only country in the world, that consists of an entire continent. Between 1788 and 1868 the British used Australia as a colony to deport their convicted criminals – these people are the predecessors to many of today’s citizens. Australians are famous for playing rugby and calling each-other “mates”.

5. Finland – 7,7 points

This is the country that brought us Nokia – the worlds largest manufacturer of mobile phones. In 2003 Nokia accounted for about a quarter of Finland’s exports and in 2006 it generated more revenue than the entire budget of Finland.  Before starting to make mobile phones Nokia made (yes, it’s true) rubber boots!  Finland was also home to Simo Häyhä – considered to be the most deadly sniper through history with 542 kills. According to World Economic Forum Finland has the most competitive economy in the world. Plenty to be happy about!

4. Iceland – 7,8 points

This geologically active country is rich in volcanoes and geysers (A geyser is a hot spring that erupts water in certain intervals). Thanks to geothermal power Iceland gets its electricity and hot water dirt cheap. There have been occasions where steel has been shipped for processing from Australia or Africa and when finished shipped back to the originating country. Cheap local energy actually makes this cost effective. According to the Human Development Index, Iceland (together with Norway) is the world’s most developed country.

3. Austria – 8,0 points

Austria is the home to the popular energy drink Red Bull. This country is also one of the few in the world, that allows legal voting beginning from age 16. Upon turning 18, all Austrian males have to take part of a 6 month military service. The country has declared itself formally a neutral country or a  “perpetual neutrality” as they say it, but in reality it has taken part of various peacekeeping missions and also took part of the UN sanctions against Iraq. Thanks to the wide use of wind-, solar- and hydropower Austria produces around 80% of its energy from renewable resources. Education is mostly free, with the exception of an average semester fee of 583 dollars (370 eur) in universities. As you probably guessed – student loan debts are not an issue in Austria.

2. Switzerland – 8,1 points

This cheese and chocolate producing land is the world’s 10th richest country. Switzerland’s neutrality helped their banks to raise some serious cash – for decades it was possible to open a bank account without having to identify yourself. Upon opening an account, you were given a special number that anyone could use to deposit or withdraw money. This law was later changed since it attracted illegal money. Switzerland is also one of the top garbage recyclers in the world (66% to 96% recyclable materials recycled). They achieve this by keeping recycling free, but asking money for regular garbage – thus giving people a financial incentive to recycle.

1. Denmark – 8,2 points

Just like Sweden, Denmark is a Nordic welfare state with most of its services free to the citizens. Expect to pay 72% of your money to the government on the highest income tax bracket. According to Wikipedia Denmark has the worlds highest taxes! When buying a car in Denmark one has to pay 25% VAT to the import price of the vehicle and then a 180% registration tax on top. That means when a car sells for $20 000, you have to pay an additional $45 000 as taxes for the government (total of $65 000). That’s why people in Denmark ride bikes or use one of the best public transport systems in the world. Denmark also has 2 autonomous provinces – the Faroe Islands and Greenland. The latter is over 50 times larger than Denmark but has about 100 times less people.

Other notable countries

• USA – 7.4 points – 17th place
• Great Britain – 7.1 points – 22nd place
• France – 6.5 points – 39th place
• China – 6.3 points – 44th place
• India – 6.3 points – 45th place
• Japan – 6.3 points – 46th place

I’ve been to 4 out of 10 happiest countries in the world – Luxembourg, Sweden, Finland and Denmark! What’s your score?

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Illustrated Guide to Reading People’s Faces

About a year ago president Obama announced that he will be making a 100 million dollar budget cut from the 3.5 trillion US budget.

What does this mean? How much is a 100 million dollars compared to 3.5 trillion? If you are like most of us you’ll probably think that both of them are enormous sums of money… That’s because people tend to have a problem with big numbers.
To see how big the budget cut really is compared to the whole budget, check out this video below:

Each year the Heritage Foundation and the Wall Street Journal compile a list of the top 10 countries with the freest economies in the world.

This year over 10 different categories of freedom were measured. Things like trade freedom, business freedom, investment freedom, property rights and so on.

The freer the economy the easier and better it is to do business in the corresponding country. It is no coincidence that the same countries in the top of the freest economies in the world list also serve on the top of charts like richest countries in the world and happiest countries.

To find the freest economy in the world 10 different categories were measured within each country. The maximum score was 100 points, meaning that a country with that score would be absolutely free all aspects. No one got the maximum score, but a few countries came close.

10. Chile – 77.2 points (from 100 maximum)

When hearing the name Chile, most people think it is a poor third world country. Not anymore it is!

Among with the rest of Latin American countries Chile used to be a place of poverty but thanks to the reforms in the last 3 decades it has transformed itself to be the freest economy in South America.

The cornerstone of Chile is its sound financial policy allowing for foreign investments to pour into the country. Chile has been keen to sign free trade agreements with countries all over the world.

In addition to its strong financial sector Chile is also the largest exporter of copper in the world.

9. Denmark – 77.9 points

In addition to being the happiest country in the world Denmark is a country with an extraordinarily strong financial sector. The banking crisis of 2008 and 2009 left the country unharmed, mainly because the government’s oversight of the banking industry is working exceptionally well. If the US had a financial oversight body working half as good, we wouldn’t have had the housing bubble that burst in 2008.

Denmark would be even higher in the list of the world’s freest economies if the government would pull back on its spending. The taxes are exceptionally high – some people have to give away 73% of everything they make! If that ain’t crazy, nothing is!

8. USA – 78,0 points

Compared to the year before, the US has lost quite a bit in the freeness of its economy. Because of the economic crisis that started in 2008 the government has decided to accept a number of financial and monetary regulations that have undermined the countries economic freedom.

The government has helped bail out a number of large banks, car manufacturers and other large companies but is itself allowing  its budget to get more and more into deficit.

Some experts seem to agree that the US is heading into bankrupcy.

7. Canada – 80.4 points

Thanks to the declinel of USA, Canada is now the freest North-American economy. Its strengths include lack of corruption, financial freedom and property rights. Unlike the USA, Canada has a budget surplus.

It looks that instead of following the lead of USA, Canada is more closely following its European friends. Just like many countries in Europe, Canada has a great welfare program and many social programs intended to make the lives of their people better.

6. Switzerland – 81.1 points

Switzerland has earned its high place in the freest countries in the world list because of its legendary neutrality. The Swiss never pick sides – this has helped them to stay out of trouble and make the country a fortune.

During the World War 2, Switzerland was the only place where many people could deposit their gold and money. Because of the neutrality they could be sure that the money would be safe and they could withdraw it after the war ends. Capitalizing on the image of neutrality has made Switzerland one of the largest financial centers in the world.

5. Ireland – 81.3 ponts

Ireland is the freest economy in Europe. Although the financial sector got hit when the housing bubble burst in 2008, the overall business climate is excellent.

Throughout the 1990s and the early 2000s Ireland benefited greatly from its flexibility and openness. In recent years one could say that the same openness is also to be partly blamed for the financial crisis currently in Ireland. The government is planning to buy up all the non-performing loans the banks have amassed throughout the last 2 decades.

4. New Zealand – 82.1 points

While most people know New Zealand as a place where the movie Lord of the Ring was filmed, it is also a country with one of the lowest unemployment rates in the freest economies of the world.

The successful regulatory environment supports people starting their own companies. The government has even decided to cut the corporate tax rate to help make the companies of New Zealand more profit. Business freedom in the country is the highest in the world – scoring 99.9 points out of 100.

3. Australia – 82.6 points

Canada is another country that ranks high in financial freedom, property rights, and freedom from corruption. The country is facing its 18th year of uninterrupted economic growth. Internationally Australia is a competitive producer of services, technologies, and high-value-added manufactured goods. Its export sector remains heavily focused on mining and agriculture.

Lately there has been some turmoil about Australia’s government using internet filtering to stop people seeing certain website. It is believed that if such actions continue, Australia will most probably fall in the list of the freest economies of the world.

2. Singapore – 86.1 points

This city state is the most advanced country in Asia. As a financial center Singapore was already used to growing its economy 6-8% per year until the financial crisis of 2008 hit the country. The country is so well run that instead of going into recession Singapore still managed to pull out from 2008 with a 1% economic growth.

Some other good things about Singapore is non existent corruption, extremely low taxes and one of the worlds most effective labor markets.

1. Hong Kong – 89.7 points

Hong Kong has held the position of the freest economy in the world for 15 years straight. Just like Singapore, this little island is one of the world’s largest financial centers. For those not knowing, Hong Kong is actually not a separate country but a part of the People’s Republic of China.

The reason Hong Kong can triumph the list of the freest economies in the world is because it is a separate region in China and therefore goes untouched by the Chinese communism. Hong Kong governs its own affairs and even has his own mini constitution.

Other notable countries

• United Kingdom – 11th place
• Luxembourg – 14th place
• Estonia – 16th place
• Japan – 19th
• Germany – 23rd
• France – 64th
• Italy – 74rd
• India – 124th
• Russia – 143rd

For a complete list of the Top 10 freest economies in the world see the world heritage website.

Once a year most of the worlds influential businessmen, politicians, investors and economists meet in Davos, Switzerland to discuss the current state of world economy. This yearly gathering is known as the World Economic Forum.

To give you an idea of how high-level Davos is, you should know that in addition to presidents and prime ministers, it is visited by all of the worlds major banking institutions – starting with the banks bailed out last year and finishing with the leaders of the central banks of USA, Europe and China.
Among this years attendees were more than 70 world leaders and over a hundred of the worlds most influential companies (the likes of ExxonMobil and Coca-Cola).

Main topic in the World Economic Forum

You don’t have to be a genius to figure out what they talked about this year – the economic crisis.

It was revealed by private equity giant Blackstone that the current economic downturn has destroyed over 40% of the world’s wealth during the last 5 quarters and that things are not getting better – they are only getting worse! The world will lose even more of its wealth!

Here are some of the things said during this years summit:

“Worrying about inflation now is like worrying about the measles when you might get the plague.”

Kenneth Rogoff  – Harvard professor and former chief economist of the International Monetary Fund

“The outlook is pretty grim. Things are not good and business surveys are coming out showing they’re getting even worse.”

Sir Howard Davies – London School of Economics

“Confidence grows as slowly as a coconut tree, and falls as fast as a coconut.”

Indian economist, Montek Singh Ahluwalia

“The free enterprise system has not failed; the financial system has failed.”

Tony Blair -Former British Prime Minister

“We cannot underestimate the challenges and the dangers that we face in 2009. We are in a global recession the likes of which we have never seen. But there is no quick fix.“

Stephen S. Roach, Chairman of Morgan Stanley Asia

“The crisis is getting worse. It’s going to take drastic action to turn it around, if it can be turned around, quickly. I believe it will take a long time.”

Rupert Murdoch – Chairman of News Corp

And from a more positive side:

“In times of recession there are massive opportunities and fortunes to be made, so for new up and coming entrepreneurs, this is the time to go and start a business.”

Richard Branson – Founder of The Virgin Group

I agree that things are indeed bad and they will probably get worse before getting better but among all these quotes I especially love the last one from Richard Branson.

The positivity of this serial entrepreneur and billionaire is what keeps the world running – a true businessman always looks to the future and thinks how he can use the mistakes done in the past to build a better business for tomorrow! As long as there are people like Richard Branson – we will be just fine!

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2008 was a mess. Everything changed from great to being a disaster. The markets were down and most of the world’s leading economies slipped into recession.

For most of the world 2009 is not looking any brighter. The United States, Great Britain, France, Germany and Japan are all expecting a standstill of their economies or a recession.

For the first time in decades we are facing a situation where the fastest growing economies will be countries that are virtually unheard of in the western world.

5 fastest growing economies in 2009

Here is a list of top 5 fastest growing countries as predicted by The Economist.

5. China – 8% GDP Growth

China is the only superpower that makes the list of fastest growing countries in 2009. This second largest exporting country (Germany is no 1) has the world’s largest population of 1.3 billion potential consumers. While the rich world is in recession and Chinese exports are taking a hit – China is relying on the growing demand for products from its own people. Thanks to the expanding middle class Chinese economy is as strong as ever.

4. Malawi - 8.3% GDP Growth

This small southeast African country is one of the poorest in the world. For the last few years it has had a democratic government that is rapidly increasing living conditions throughout the country. In addition to having large uranium deposits Malawi is mostly known as an exporter of tobacco, coffee, sugar and tea.

After president Bingu wa Mutharika started a fertilizer program intended to boost crop production Malawi is doing better than ever. The program has radically improved agriculture and allows to export more goods – thus leaving Malawi unaffected from the global recession.

3. Congo (Brazzaville) – 8.5% GDP Growth

This central African country gets most of its income from selling oil, gas and petroleum. Most people live in the capital Brazzaville or in one of the small cities along the countries one and only 332-mile (534 km) railway.

In 1997 a 5 month civil war erupted in Congo – when it ended, president Sassou Nguesso expressed interest in economic reforms with the intent to take the country out of poverty. This reforms are still taking place today.

2. Angola – 9.8% GDP Growth

Just like in the rest of the world – economy in Angola is actually slowing down. In 2005 and 2006 it boasted with economic growth of around 20%. Almost all of the countries economic growth comes from oil and Angola’s ability to sell more of it every following year.

Angola has increased its oil production so much that as of 2007 it is the largest supplier of oil to China.

1. Qatar – 13.4% GDP Growth

It seems that being one of the richest countries in the world is not enough for Qatar. While being a poor country in the past, Qatar discovered huge reserves of oil and gas in the 1940-s,that completely transformed its economy.

Qatar offers most of its services to its citizens for free and has no income tax. The amount of money they get from selling oil is more than enough for their small yet thriving economy.

Never heard about most of these countries?

Don’t worry – neither have your friends. If you leave China out of this list then the combined gross domestic product for Qatar, Angola, Congo and Malawi is about the same as the GDP of Hong Kong (and Hong Kong is just 1 city – although very large).

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This is a detailed summary of what happened in finance in 2008.

2008 was one of the worst years in the financial markets after the Great Depression in the 1930-s.

Worst year for Dow Jones since 1931

The Dow Jones Industrial Average finished its third worst year throughout history and the worst year since 1931.

In 2008 Dow Jones was down 35%. This tremendous fall is only a bit better than the 37.7% fall in 1907 or the 53% fall in 1931.

Dow Jones -35%

Only 2 companies finished the year up

Only 2 of the 30 companies belonging to Dow Jones managed to finish the year on the positive side.

Wal-mart +16%

McDonalds +2%

Biggest losers in Dow Jones

The biggest losers in the Dow Jones Industrial Average were:

General Motors -86%

Citigroup -78%

Alcoa -73%

Bank of America -69%

American Express -66%

All but 3 of the world’s indexes finished down

The only indexes that finished the year up were:

Ghana +60.06%

Tunisia SE +10.4%

Ecuador +6.03%

3 world indexes that dropped the most

Iceland OMX 15  -94.43%

Bulgaria Sofix -79.71%

Ukraine PFTS -74.33%

Other important US indexes

Nasdaq Composite -41.6%
Russell 2000   -37%

Noteworthy sectors in USA

Radio -86%
Casinos and Hotels -83%
Real Estate -92%
Biotechnology   -0.5%
Medicine   -32%
Aviation -30%
Retail -26%
Defense -29%
Oil and Natural Gas -30%
Banks -49%
Insurance -51%

Commodities

Gold   +4%
Oil   -62%
Copper -58%
Coffee -20%
Natural Gas -22%
Orange Juice -50%
Wheat -25%
Silver -29%
Corn -14%

Notable world stock exchanges

Mexico BOLSA -24.09%

London FTSE 100 -31.23%

Sweden OMX 30 -38.75%

Germany DAX -40.37%

France CAC 40 -41.98%

Japan Nikkei 225 -42.12%

Denmark OMX -46.63%

Finland OMX 25 -49.65%

Hong Kong Hang Seng -48.27%

Estonia OMX -62.98%

China CSI 300 -65.95%

Russia RTS -72%

World Currency

Euro vs. British pound  +31%
Euro vs. Dollar -4.2%
British Pound vs. Dollar -26.7%
Dollar vs. Japanese Yen -19%

Conclusion

All in all 2008 was a really bad year for all kinds of investors. It did not matter whether you invested in the US, Europe, Asia, third world countries or whether you bought commodities and seeked to diversify your investment portfolio in order to keep the risks down.

2008 was equally bad for everyone – thanks to the credit crunch almost all the world markets were down. As usual – investors turned to gold for a safe haven.

It is difficult to say what 2009 will bring but investors are worried – it is expected that the financial crisis of 2008 will turn into the economic crisis of 2009.  Whatever you do – be very careful!

Here is a fun and addicting game to all you money loving FinancialJesus.com readers.

In the Fed Chairman Game you are in charge or the national monetary policy of the US.

Your goal is simple – you must adjust the Federal Funds rate in order to keep the inflation and unemployment rate stable. This game makes you realize just how difficult it is to steer the national monetary policy.

It took me at least 10 tries to keep inflation in the target 2% area, while at the same time keeping the unemployment rate at around 5% and finishing the game successfully. See if you can do better.

You can play the Fed Chairman Game here.

What is The Federal Funds Rate?

The Federal Funds rate is the interest rate that Federal Reserve (the central bank of US) uses to lend money to other banks. By changing this interest rate the FED has the ability to control the supply of money in the U.S economy. Among many things this basically gives them the power to control the amount of business done in the US and also the unemployment rate.

Be the first to find out about new fun and educational financial games. Sign up to my full feed RSS or subscribe via email.

Have you noticed how everyone is talking about the high gas prices lately? Aren’t you fed up already? I am!

Talking about high gas prices seems to be the new national past time. A lot of people offline and even more online, are suddenly talking about how much they have to pay for gas.

There is also a growing number of people telling you that the current prices are nothing – you should see the gas prices in Europe! It’s true that the gas in Europe costs about $8 to $9 per gallon on average and even a bit more in some countries.

High prices make me feel bad.

If you know that it’s even worse somewhere else, it won’t make you happy. Just the opposite – It makes me feel even worse!

10 countries with cheapest gas

Today I am trying to make everyone a bit happier! Here is a list of 10 countries that have the cheapest gas prices in the world!

10. United Arab Emirates – $1.40/gallon or $0.37/liter

United Arab Emirates is a nice country to live in. In addition to having one of the cheapest gas prices in the world they are also the 4th rich country in the world.

Did you know that Ferrari Enzo takes a lot more gas than Toyota Prius? Thinking about it this way, makes it only logical to have super cheap gas for super rich people and there super expensive cars!

9. Egypt – $1.21/gallon or $0.32/litre

Starting from 1979 Egypt has gotten an average of $2.2 billion a year as foreign aid from the US. It’s only fair – the money to buy all that cheap gas has to come from somewhere!

8. Bahrain – $1.02/gallon or 0.27/liter

This small island country has a total area of only 266 mi² (665 km²). If you decide to drive around the island you should know that this trip will be about 100 miles (161 km). So why not give the people gas with dirt cheap prices? How much gas do they need anyway? It’s not like there are some far away destinations you could drive to.

7. Qatar – $0.83/gallon or $0.22/litre

If you would be the government of this second richest country in the world you wouldn’t want the people to pay too much for gas. After all – they can get mad at you if they don’t have enough money to buy their second airplane! So of course, it makes sense to keep gas prices really low in Qatar.

6. Kuwait – $0.79/gallon or 0.21$/liter

It’s pretty much the same deal in Kuwait as in Qatar! But Kuwait is only the 4th richest country in the world, so it makes sense that gas in Kuwait is a bit cheaper than in Qatar! People in Kuwait probably can’t afford the prices Qatar has!

5. Saudi Arabia – $0.45/gallon or $0.12/litre

When King Abdullah of Saudi Arabia visits foreign countries he usually goes with 6 planes – 1 for himself and his sons and another 5 for his closest friends. Everyone knows that planes consume a lot of fuel! Now if they would only lower the price a little bit they could afford to take with them that 7th personal Boeing 747.

4. Iran – $0.42/gallon or $0.11/liter

At current rate of production it is estimated that Iran will run out of oil in 74 years. They are trying to get rid of it faster by giving it away with really cheap prices.

3. Nigeria – $0.38/gallon or $0.10/litre

Nigeria has the 10th largest oil reserves in the world. They also have about 150 million people and a history of violence. Mix this with a government that is corrupt and want to keep the money they get from selling oil to other countries for more than $4/gallon (about $1.1/liter) it makes sense that they keep the local prices down. You don’t want to make the people mad, overthrow the government and kill everyone they don’t like! You can’t use the money after you die, can you?

2. Turkmenistan – $0.30/gallon or $0.08/liter

Turkmenistan is by far the coolest country on the list. Until December 2006 it was ruled by president for life Saparmurat_Niyazov. Some cool things he has done:

• Officially named the months of the year after his family members
• Won a “democratic election” with 99.9% of the votes!
• Closed down all rural libraries – “Ordinary Turkmenistan people don’t read books”

1. Venezuela – $0.19/gallon or 0.05$/litre

Venezuela is run by president Hugo Chavez – a quite well known guy for those who are following international politics. He is a lot into socialism. This includes having the state take control of privately held companies and doing pretty much whatever he thinks helps his people to have a better life.  The nice thing is that when he does something major he always asks the opinion of the people! If you had to vote would you rather choose high or low gas prices?

Take a road trip

Next time you are going on a road trip consider these countries. Cheap prices and guaranteed experiences!

For more good news on cheap gas prices – sign up to my full feed RSS or subscribe via email.

If you live on any of the above countries there is probably no need to check out the following post

10 ways to cut down on fuel costs

Here is a top 10 list of worlds richest countries according to CIA World Factbook and Wikipedia measured by GDP per capita. For those in the dark – GDP or Gross Domestic Product – is the value of all the goods that a country produces. GDP per capita stands for the value an average person produces.

10. Switzerland – $39,800 (GDP per capita)

This cheese making country is considered to be one of the most neutral countries in the world. During World War 2, people from other European countries deposited their money in the banks of Switzerland, knowing that their money would be safer there than in their home countries. Some well known Swiss companies include Nestle, Logitech, Rolex and Credit Suisse.

9. Equatorial Guinea – $44,100

The Republic of Equatorial Guinea is a country in Central Africa. Most people have never heard of it. This country flew into stardom after 1996 when large oil reserves were found in the nation of only 0,5 million people. While being one of the largest producers of oil in Africa, little has been made to improve the living conditions of the people. Corruption is widespread and ordinary people are mostly living in poverty. The gap between rich and poor is probably the largest in the world.

8. Ireland - $45,600

This member of European Union has been often admired as one of the most modern knowledge economies in the world. Ireland is the largest maker of computer software in the world. A study done by The Economist ranked the Celtic Tiger to have the best quality of life in the world.

7. United States – $46,000

What sets the US apart from most other countries in this list is its size. While most other countries in this list are among the smallest in the world the US has a population of over 300 million and a total land area of 3,79 million square miles (9.83 million sq km). The US is also home to the largest amount of billionaires in the world. It is speculated that as many billionaires live in the US as in the rest of the world.

6. Singapore – $48,900

This tiny country consists of 63 island and some mainland with a total area of only 270 square miles (704 sq km). With Hong Kong, South Korea and Taiwan it is considered one of the Four Asian Tigers. Singapore has the busiest port in the world and is the 4th largest foreign exchange trading center in the world. Singapore is widely believed to be the most business-friendly economy in the world.

Page 2 – The Top 5 richest countries in the world