Retail Inflation at an all time high

After the II world war the growing hold of United states on the world was inevitable. United states used its military might and power to gain control and access over many countries of the world especially in the European regions and South East Asia. The United Nations was formed as a result of this pledge. More than 7 to 8 Presidents of the United states pledged to support the working of the United Nations. There was at least 1 organisation within the United Nations which was responsible for the working of our day to day lives. The United states slowly grew in power and influence over the world and established itself as a Global superpower. This however changes when President Trump came to power in the United States. The President has acted in all ways and means which are  a deterrent to its Power. It matches with the idea of making America great again and instills the feeling of patriotism among its citizens. After the corona virus pandemic the world was looking for a global leade...

Due to fears of the corona virus pandemic the stock market plummeted to never seen before lows. However by the first week of June the stock market rallied and gained over 38 percent of what it had lost.  Experts suggest that the stock market should be in tandem with the economy of the country, but that does not seem to happen. Even with the economy in doldrums the stock market continues to rally to new highs. The basic function of the stock market  for the 400 years that it has been around is to raise capital and provide an economic impetus to the businesses. There are stock exchanges all over the world out of which the NSE being he largest companies of more than 21 trillion dollars in value listed.After the great depression countries around the world woes smaller retail investors to come forth and buy stocks. The idea to relate the happiness of the people to the stock market was profound and was sold to the public. As the stock market would rise people would get happier and b...

In a world where the new normal is yet to be defined, with the Government spendings knowing no bounds and the stock market being poles apart from the real economic situation in many countries, changing roles of retail banks, the  Central bank and the Government are inevitable. During the depression of 1930's the biggest challenge facing the economies was to prevent further inflation. Later du During the crisis of the 1970s and 1980s preventing stagnation was the biggest challenge and now during the post pandemic era the challenge lies within the hands of the Governments to keep the business cycle running. A politicised take over of the economy is inevitable. To keep these takeovers from happening most countries invented the Central bank system which used a simple tool of interest rates to control inflation, spending and savings. Somehow most countries are nearing to lower interest rates system which will only increase inflation. The rising high prices along with lowered interest ra...

Global crude prices are shifting further down due to fears of increasing corona virus numbers across the world and increased stockpiles of crude.  Even before demand was hit due to  the pandemic the Oil giants were looking to sell billions of dollars worth assets. BP e.g was looking to sell its stake in Purdhoe Bay which was a marvellous engineering feet for itself. Its eagerness to sell stake however comes from a fact that demand is not only going to take some time to come back but  oil  giants now want to shift to the best forms of hydrocarbons. They want to now own the cleanest forms of hydrocarbon energy. The risks of having costly stranded assets are growing only more obvious.  There used to be a lot of misinformation from the Industry stating that natural gas is a better form of energy than Crude etc. and that it burn least amount of hydrocarbons and also emits the least amount of carbon in the air. Reports now  suggest that natural gas is no mo...

Investing and saving post Covid has not only become a challenge but most people are further confused as to howq to make money in this bear market amist  lockdown. It is not so difficult to grow your money. You should keep in mind the liquidity requirment and your needs to invest. Some of the easiest methods are given below: 1) Saving bank account: Keeping your money in a savings bank account has high liquidity and very low returns. It is very easy to withdraw money from the savings account. The returns can be a range of 3 to 4 percent depending on the bank. There may be a cap on the maximum amount withdrawn. Opening a savings account is easy. All you have to do is walk into any bank branch. 2) Trading in share market: Trading in share market has gotten far more easier than before. All you need is a demat account and you can trade from the comfort of your house. You need to do some research on which companies you think will do well. Nowadays a lot of tips are available onlin...

The COVID19 Pandemic has left most countries economies topsy turvy. Countries providing economic stimulus packages and banks providing enormous interest rates on savings, along with moratorium offered by banks, job losses, pay cuts and closing of various factories has led to a fiscal deficit and loss of valuable import money all over the world.  Countries are therefore borrowing money from the various institutions. During the World war Britain  took enormous  debts to fund the war and still happens to pay the same from through their tax payers. Most countries are still recovering from the financial crises of 2008. Some countries were already in debt before the COVID pandemic hit. These countries were already struggling to make their debt payments. With the pandemic it will only enhance their problems further and they may not be able to pay at all. All these repayments will come at a cost not only to to citizens in order of paying higher taxes but also at the cot of ...

The world has never seen anything like the COVID19. The movement and free travel has almost evaporated overnight.The number of flights around the world has gone down by 94 percent. The recovery is far from happening.The  It could exacerbate  existing inequalities, create hardships and disrupt workings of the globalised world. The effects of COVID19 is much beyond cancelled holiday plans. Holiday makers spend approximately 1.6 trillion Dollars on travel every year. In April 2020 Planes carries just 31million passengers around the world, which was close to the levels of late 1970's. Flights in Europe are still below 75 percent which is much below the levels last year. The travel recovery looks farther off. After the  financial crises of 2008, business travel has still not come back to the pre crisis levels. Leisure travel has eventually come back to pre crises levels. Flight levels around the world remain much below normal. All this could have a significant impact o...

The year 2019  was extremely challenging. With 2020 we still have half way to go, however the first half has been quite a roller coaster ride for most corporates and economies. In 2019 though the stock market grew in almost every country due to better monetary policies and favourable Government policies, however we saw the GDP go down.  The High network individual wealth also increased by roughly 8 percent. Since 2012 the trend has been towards the South Asian economies leading the wealth creation group, but it is the first time that United states has created the most wealth in the world due to the 1st phase of the Chinese US trade policies. Growth was seen mainly in the tech sectors. In the Asia pacific we have seen a mixed growth between countries. Some countries like China have performed amazingly well as they have seen a double digit growth in Population as well as wealth. Also Hon kong and Taiwan have been leading in the Asia Pacific region. India, Singapore etc shown ...

President Trump has been on a losing side since the fears of COVID19 has paralysed the economy. Since he was elected in 2015 to the White House,he has made sure he maximises his focus on  himself. After the Lafayette square incidence which offended Christians where the President used the Bible  around as a prop, Rather than being in command Mr. Trump seemed desperate. When power is based on appearances it can slip away easily. Before COVID hit America, Mr Trump looked likelier than not to be reelected, thanks to a relentlessly growing economy. Incumbent presidents almost always win in such circumstances. Our election model made him a narrow favourite, even though he was a few points down in national polls with his rival, Joe Biden. However, the president is now in a deep hole. Mr. Biden is now up by 9 points, He is already doing well in battleground states like FLorida, Michigan and Wisconsin, and he has strong support among older voters and is doing surprisingly well amo...

With COVID19 becoming the worst pandemic the globalised world has ever seen the whole world is not only boycotting Chinese goods and supply chains. The US China trade war has been on ever since. The US imposed sanctions on Chinese made goods and has even boycotted some service The Peoples Republic of China has however not  given any respite either to the world nor to its neighbours. PRC has started establishing bases all over the South China sea. It has also imposed its rule in Hong Kong which used to be a democratically run administration. The effects of Cold war when the east and west were completely polarised is very much still alive in the minds of many Indians and South East Asian countries when you had to chose between  a side and do business only with that country or that alliance. Whether the polarisation of the east and the west will be  affected by the efforts of the west to polarise China or not is yet to be seen, however it doesn't seem se as now eve...