In these days of rampant money creation (from nothing of course) one, more than ever needs to factor in inflation when calculating returns on investments.
The chart above is an interesting study in central bank management. As it seems the so called less developed countries are providing capital growth for their citizens were as the smartest guys in the room in the US & UK are actively destroying capital.
Australia whilst not mentioned above comes out very well. The RBA calculated inflation rate for 2010 was 2.7% compared to an average 4.75% for a cash management account, resulting in a real return of approx. positive 2%, which would place the arse end of the world at no. 2
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