Fed Minutes Reveal Rising Stagflation Concerns Amid Trade Policies and Job Market Weakness

May 29, 2025 Staff ReporterMoney 0

The minutes from the Federal Reserve’s May meeting highlight growing fears of stagflation—a troubling mix of stagnant economic growth and persistent inflation—due to recent White House trade strategies and a bleaker forecast for the job market over the next few years.

The Fed’s economic outlook took shape while President Donald Trump was in the middle of implementing a wave of new tariffs. These discussions happened just before the U.S. and China reached a temporary trade truce earlier this month that paused the mutual imposition of steep tariffs.

Despite the easing of immediate tensions with China, the Federal Reserve’s pessimistic economic forecast is expected to influence its next formal summary of economic projections. This comes as the White House continues to pursue a range of new bilateral trade agreements that are likely to shape future policy dynamics and economic performance.

Federal Reserve officials expressed concern about the strength of the labor market, which they anticipate will deteriorate considerably in the near future. As stated in the minutes, “The labor market was expected to weaken substantially, with the unemployment rate forecast moving above the staff’s estimate of its natural rate by the end of this year and remaining above the natural rate through 2027.”

This outlook marks a shift from earlier projections. In March, the Federal Reserve anticipated an unemployment rate of 4.4 percent for 2025 and 4.3 percent for both 2026 and 2027. However, the May minutes suggest that these numbers are now expected to climb higher, signaling deeper concerns about employment trends.

Additionally, the Fed’s latest assessment included raised expectations for inflation and lowered predictions for economic growth compared to the March Summary of Economic Projections (SEP). Officials now expect inflation to reach an annual rate of 2.7 percent for this year, while GDP growth is forecast at only 1.7 percent.

Recent economic data supports these revised expectations. Reports from the Labor and Commerce Departments show both inflation and GDP growth have been softening. Specifically, the personal consumption expenditures (PCE) price index, a key inflation measure closely watched by the Fed, recorded a 2.3 percent annual increase in March—down from 2.7 percent in February. Similarly, the consumer price index (CPI) stands at 2.3 percent, down from its recent January peak of 3 percent.

On the growth side, the economy took a significant hit in the first quarter of the year. Businesses increased their imports in anticipation of incoming tariffs, but the result was a sharp downturn in GDP. According to the Commerce Department’s advance estimate, GDP shrank by 0.3 percent in the first quarter after growing by 2.4 percent in the last quarter of the previous year.

The Federal Reserve’s internal discussions suggest that this economic slowdown could be prolonged, driven in part by the impact of ongoing tariff policies. The minutes state, “Trade policies were also expected to lead to slower productivity growth and therefore to reduce potential GDP growth over the next few years.”

This anticipated decline in productivity and output has added to the Fed’s cautious stance on interest rates. While the Fed made three rate cuts in the latter half of last year, it has since held interest rates steady since January. The current range remains at 4.25 percent to 4.5 percent, as the Fed waits for more clarity on how trade policy and broader economic uncertainties will evolve.

At the same time, some policymakers believe that softening employment could actually help to ease inflationary pressures. According to the minutes, several officials remarked that inflation might ease if the labor market begins to falter or if economic activity slows down more broadly. As noted by EY economist Gregory Daco in a commentary, “Some [officials] noted that heightened uncertainty could curb demand, and that inflation pressures may ease if downside risks to activity, or the labor market materialize.”

Taken together, the Fed’s latest internal discussions point to a fragile and uncertain economic outlook. While inflation remains a concern, the greater worry appears to be the threat of an extended period of weak growth coupled with a struggling job market. The role of the White House’s trade policies continues to loom large in this scenario, with Fed officials warning that the resulting decline in productivity could further restrain the economy’s potential.

With the unemployment rate now expected to rise above the natural rate and stay elevated through at least 2027, the implications for workers and businesses could be significant. The Fed’s long-term forecast suggests that the economy may not return to pre-tariff levels of employment strength or productivity any time soon.

Meanwhile, inflation forecasts, although still elevated, are showing early signs of moderation. If that trend continues, it could relieve some pressure on consumers, even as growth remains sluggish.

The Federal Reserve faces a delicate balancing act: managing inflation without pushing the economy into a deeper slump, all while navigating the ripple effects of an aggressive trade agenda. The decisions made in the coming months—on interest rates, trade, and fiscal strategy—will likely determine whether the U.S. can steer clear of a full-blown stagflation scenario or be pulled deeper into economic stagnation.

As the Fed continues to monitor the fallout from tariffs and trade tensions, the stakes remain high for policymakers, investors, and workers alike. The central bank’s next set of projections will be closely watched for signs of how it plans to respond to the evolving economic landscape, which remains precarious and highly dependent on future trade developments and labor market trends.

Americans Face Mounting Credit Card Debt as Interest Rates and Costs Soar

May 29, 2025 Staff ReporterMoney 0

After years of grappling with inflation and the escalating cost of living, many Americans are now experiencing intense financial pressure, leading to an alarming rise in credit card debt. A growing number of individuals are unable to manage their monthly payments, with defaults on credit cards reaching a 14-year high in 2024. This disturbing development signals deep-rooted financial strain across the country.

Even more concerning is the overall spike in credit card balances nationwide. According to data from the New York Federal Reserve, total U.S. credit card debt soared to an all-time high of $1.17 trillion in the third quarter of 2024. This is the largest amount recorded in Federal Reserve data since 2003. At an individual level, the average credit card debt per borrower now stands at a substantial $6,329, based on findings from TransUnion in the same period.

This situation paints a sobering picture of American household finances. The burden of credit card debt has become more difficult to manage for many, particularly as interest rates remain persistently high.

For those currently managing their own credit card balances, finding ways to lower interest costs can make a significant difference. The Federal Reserve reported in January 2025 that the average annual percentage rate (APR) for credit card users carrying a balance is now 24.26%. This level of interest can dramatically slow down a borrower’s ability to pay off their balance, with a large portion of monthly payments going only toward interest rather than reducing the actual debt.

Fortunately, there are ways to alleviate this burden for those with strong credit. One effective strategy involves transferring existing balances to a new credit card offering a 0% introductory APR. One such offer, recommended by CardCritics, allows users to pay no interest for a full 18 months, which could provide major relief for those with good to excellent credit scores.

As highlighted by CardCritics, “Credit card interest adds up fast. It’s not uncommon for a large portion of your monthly payment to go toward interest, instead of paying off your balance and getting you out of debt.” By using a balance transfer card, borrowers can roll over debt from one or more existing credit cards into a new account offering a 0% introductory APR, helping them pay down balances faster and more efficiently.

To illustrate the potential savings, consider this scenario: if a person with the national average credit card debt of $6,329 tried to pay it off over 18 months with a standard 24.26% APR, they would need to make monthly payments of $422.96. Over that period, they would also pay $1,284.32 in interest. However, by switching to a balance transfer card with a 0% APR for 18 months, that same borrower could completely eliminate interest charges, provided they paid off the balance within the introductory window.

In such a case, the same $422.96 monthly payment would pay off the debt in just 16 months. “With the same monthly payment of $422.96 you would pay your balance off in 16 months and you’d save a total of $1,284 by opting for a balance transfer,” CardCritics notes. The calculation even factors in a small balance transfer fee, making the savings quite substantial.

Beyond interest savings, these recommended cards come with additional benefits that make them even more appealing. For example, many offer unlimited cash back rewards on everyday essentials, no annual fees, and eligibility for users with fair to excellent credit. According to CardCritics, these features make balance transfer cards not only practical but also rewarding for users seeking more financial control.

Another attractive feature is that these offers often do not require a perfect credit score. Even individuals with fair credit can qualify for these top-rated picks, making this an accessible option for a broader segment of the population. “These top-rated CardCritics picks are a smart way to cut your credit card interest to 0% APR for 18 months while also earning incredible cash back rewards,” the company states.

However, consumers should be aware of certain conditions that come with balance transfer cards. For one, cash back is not earned on the balance transfers themselves. Moreover, the 0% introductory APR typically applies only to transferred balances, not new purchases. CardCritics advises: “If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.”

Additionally, to take full advantage of the offer, balance transfers must be completed within four months of opening the account. An initial balance transfer fee of 3% (or a minimum of $5) applies for transfers made within this window. Afterward, the fee increases to 5% of each transfer. These details are essential for users to understand in order to maximize their savings and avoid unexpected costs.

With the nation’s credit card debt at record levels and interest rates placing further strain on consumers, the option to transfer balances to a 0% APR card offers a valuable lifeline. For individuals struggling to reduce their debt, minimizing interest payments can dramatically accelerate their journey toward financial freedom. The ability to consolidate multiple balances into one account, coupled with the potential for zero interest and additional rewards, makes balance transfer cards a timely and practical solution.

Ultimately, the financial pressures facing Americans today underscore the importance of making informed credit decisions. While inflation and high costs have pushed many into debt, tools like 0% APR balance transfer cards provide a meaningful way to regain control. By exploring these options now, consumers can reduce their financial burden, save hundreds—or even thousands—of dollars, and work toward becoming debt-free faster.

As CardCritics puts it, “It’s easy to apply here and see how much you could save.” For anyone juggling high-interest balances, this approach may be the strategic step they need to begin improving their financial well-being and reducing the stress that comes with persistent debt.

US Lowers Tax on Outbound Remittances, Easing Burden on Indian Workers and Students

May 25, 2025May 26, 2025 Staff ReporterMoney 0

The United States has revised its planned excise tax on outbound money transfers, lowering the rate from 5% to 3.5%. This update, outlined in an EY advisory note, comes as a part of President Donald Trump’s newly introduced legislative initiative, the One Big, Beautiful Bill Act. The comprehensive proposal covers various domains, including trade, immigration, and cross-border financial transfers. The initial plan to impose a 5% tax had sparked concern among Indian nationals residing in the US, many of whom send money home regularly. The latest adjustment is seen as a major relief.

The reduction in the excise tax is viewed as a significant win for the Indian diaspora in the US. The revised 3.5% rate mitigates the financial pressure previously expected from what was termed Trump’s “5% threat.” Many Indian migrants and their families had expressed concerns over how the earlier proposed tax could affect routine financial support to loved ones in India.

From a practical standpoint, the tax cut translates into direct savings for remitters. For instance, on a $10,000 transfer to India, the tax now stands at $350 instead of the previously planned $500. This means senders can save approximately ₹12,000 per transaction, a considerable benefit for families relying on regular remittances from abroad.

India continues to be the world’s top recipient of remittances. According to 2024 World Bank data, the country received $129 billion in remittances from around the globe, with 28% of that amount coming from the United States alone. Prior to the tax reduction, the Global Trade Research Initiative (GTRI) had issued a warning that the 5% tax could have resulted in a 10% to 15% drop in remittances to India. That would have translated into a substantial shortfall of between $12 billion and $18 billion each year. Such a reduction could have had significant consequences for families who depend on these funds, as well as for the Indian economy at large.

However, while the revised tax rate brings financial relief, it is accompanied by increased regulatory oversight. Under the new framework proposed by the bill, money transfer companies will now be required to report any individual who sends more than $5,000 in a single day. This increased monitoring adds a layer of scrutiny to transactions that were once more routine. Additionally, the legislation introduces stricter Know Your Customer (KYC) norms and more detailed compliance filing requirements. These changes may lead to delays in transfers, particularly for users who are not accustomed to more rigorous documentation processes.

As a result of these new compliance rules, the impact on different groups of remitters is expected to vary. Indian workers employed in service and labor-intensive jobs stand to gain the most from the lowered tax rate. They can now retain more of their hard-earned money, and the families who receive their support in India may benefit from marginally larger transfers.

On the other hand, the regulatory changes could create challenges for others. Indian students in the US, along with their parents, may face administrative delays when making tuition payments or sending money for living expenses. The need for additional paperwork could become a frustrating hurdle in time-sensitive financial situations.

In response to the tax proposal, both students and workers from India have voiced their concerns. Saurabh Arora, Founder and CEO of University Living, spoke to Business Today about the implications. “The proposed 5% excise tax on outbound remittances from the US is a policy under consideration that may influence how Indian students manage their personal finances while studying abroad. Many students begin contributing back home, whether by supporting their families or repaying education loans, once they start part-time work or move into full-time roles post-graduation,” he said.

He added, “For such students, even a modest change in remittance costs can shape how they plan and prioritise financial decisions. While the policy is still in discussion, it brings attention to the importance of financial preparedness for students navigating life abroad.” Arora’s remarks highlight the broader concerns that even relatively small changes in remittance costs can significantly impact budgeting and long-term financial plans for young migrants.

Another aspect of the new policy that has attracted attention is its potential impact on informal money transfer systems. Hawala networks, which have long offered quick and discreet services, might gain appeal among those seeking to avoid additional scrutiny. However, these networks have been losing their price advantage due to increasing competition and technological innovation in formal financial services. While some remitters might still turn to such informal channels, the narrowing cost gap could diminish that trend.

Ultimately, while the revised 3.5% tax rate reduces the financial load on remitters, it also comes with tighter control mechanisms that will likely complicate the process for many. The long-term effects will depend on how these regulations are enforced and how users adapt to the new compliance environment.

Indian nationals sending money from the US will need to be more mindful of transaction sizes, documentation, and timing. For working professionals, the change may be manageable with some adjustment. For students and families, particularly those managing tight budgets or tuition fees, the additional layers of oversight could present obstacles.

The broader legislative context also matters. The One Big, Beautiful Bill Act signals a more aggressive stance on regulating financial flows in conjunction with immigration and trade policy. While the tax rollback demonstrates responsiveness to community concerns, the accompanying enforcement measures reflect a tightening policy environment overall.

In sum, Indian remitters in the US find themselves navigating a mixed scenario: they have gained meaningful financial relief in the form of a lower tax rate, but now face increased regulatory scrutiny that could complicate their ability to send money home swiftly and efficiently. As the bill progresses through the legislative process, stakeholders will likely continue to push for clarity, fairness, and ease of compliance, especially given the volume and significance of remittances flowing from the US to India.

Bill Miller Favors Amazon Over Tesla, Citing Valuation and Strategic Strengths

May 14, 2025 Staff ReporterMoney 0

Renowned value investor Bill Miller has established a formidable reputation over his decades-long career. During his tenure managing the Legg Mason Capital Management Value Trust fund, Miller achieved a remarkable feat by outperforming the benchmark S&P 500 index for 15 consecutive years between 1991 and 2005.

Today, Miller is a billionaire and continues his investment journey through the firm he founded, Miller Value Funds. Due to his impressive track record, market observers closely monitor his investment decisions. In a recent quarterly update from Patient Capital Management—where Miller is a minority owner and advisor—he shared his perspective on two of the most prominent names in the stock market today: Amazon and Tesla. Miller categorically views Amazon as a buy and Tesla as a sell.

Miller’s rationale for dismissing Tesla lies in its current valuation, which he believes is excessively inflated. Despite acknowledging Tesla’s innovation and success, he does not see it as an attractive investment at current prices. “They’re going to have to knock the cover off the ball in terms of self-driving cars and AI,” Miller stated, emphasizing the high expectations embedded in Tesla’s valuation.

Although Miller described Tesla as an “incredible company” and praised its CEO, Elon Musk, calling him a “genius,” he stressed that his investment philosophy is rooted in valuation. From a value investing standpoint, Tesla does not measure up. His concerns are not unfounded. So far in 2024, Tesla’s performance has been lackluster. The company reported just 337,000 deliveries in the first quarter—the lowest quarterly figure in more than two years. Additionally, the company’s dominance in the electric vehicle (EV) space is now being seriously challenged.

A major competitor, China’s BYD, has made significant inroads. In China, BYD controls over 30% of the market share, thanks to its ability to deliver affordable models and superior charging technology. Miller pointed out a stark difference in value: “Tesla’s charging $8,000 for their self-driving system, and BYD has a self-driving system in a $9,000 car. BYD’s cars, I think they’re just better.”

Tesla’s valuation appears to rest heavily on anticipated breakthroughs, particularly in autonomous driving. The company plans a Robotaxi demonstration in June, showcasing its unsupervised full self-driving (FSD) technology. Yet skepticism remains about the system’s readiness and the timeline Musk has proposed for its rollout. Even if the demonstration is successful, the competition is not standing still. Startups like Pony AI and Slate Auto, which is backed by Amazon founder Jeff Bezos, are also pushing into autonomous vehicle technology.

Given these dynamics, Miller’s skepticism is understandable. He believes Tesla’s market value is built too much on future ambitions, while overlooking current operational challenges in its EV business. I share this assessment, as it seems the market is pricing in a level of success for Tesla’s futuristic projects without fully accounting for mounting competition and recent performance issues.

In contrast, Miller maintains his bullish stance on Amazon, a company he has backed for many years. In fact, he once remarked that he was “the largest personal owner of Amazon whose last name isn’t Bezos.” His continued confidence in the tech and retail behemoth is driven by a combination of strong leadership, operational prowess, and strategic diversification.

One of Miller’s core reasons for favoring Amazon is his confidence in CEO Andy Jassy’s leadership. He is also optimistic about the company’s various divisions, including Amazon Web Services (AWS), logistics operations, and its newer ventures like satellite internet. Miller also dismissed investor concerns about Amazon’s dependence on Chinese imports.

Tensions between the U.S. and China have led to reciprocal tariffs, sparking fears about the impact on companies with supply chains tied to China. Analysts from Wedbush Securities have previously suggested that as much as 70% of goods sold through Amazon originate in China. However, Miller considers these fears overblown. Given Amazon’s unmatched scale and logistical efficiency, he believes the company is well-positioned to navigate these challenges.

Jassy has acknowledged the impact of rising tariffs but expressed confidence in Amazon’s ability to adapt. He noted that many third-party sellers might pass on the additional costs to consumers. Furthermore, the platform’s diversity of sellers gives Amazon a buffer—some sellers may absorb the costs in order to boost market share. This competitive internal dynamic provides Amazon with flexibility during turbulent trade scenarios.

“Amazon has revenue diversity from the likes of AWS and advertising streams that have been performing well,” Miller emphasized. The company is not solely dependent on product sales, which helps cushion the impact of any external shocks to its retail business. Assuming trade relations between the U.S. and China stabilize in the future, Miller considers Amazon’s current valuation attractive. The stock trades at about 30 times forward earnings, which is near its five-year low.

Even in a scenario where tariffs persist longer than expected, Miller expects Amazon to weather the storm. There could be some short-term pressure on earnings, but the company’s long-term trajectory remains strong. He views the present situation as an opportunity for investors to take advantage of a fundamentally solid company trading at a discount.

This perspective from Miller may resonate with investors who feel they have missed out on top-performing stocks in the past. For those with similar concerns, analysts are promoting what they call a “Double Down” opportunity—highlighting companies they believe are poised for major growth despite having already shown significant returns.

To underscore the power of such moments, they point to past examples. For instance, a $1,000 investment in Nvidia during a “Double Down” recommendation in 2009 would be worth $302,503 today. Likewise, the same amount invested in Apple during a 2008 alert would now be $37,640. And Netflix? A $1,000 investment during a 2004 recommendation would have grown to an astonishing $614,911.

Currently, the Stock Advisor service is offering similar alerts on three companies that it believes present such rare, potentially lucrative opportunities. These insights are available to subscribers and are being pitched as a time-sensitive opportunity unlikely to present itself again soon.

In summary, Bill Miller’s latest investment opinions highlight the strength of his valuation-based approach. While recognizing the innovation and potential of companies like Tesla, he maintains that valuation is critical and believes Tesla is priced too high based on uncertain future success. Meanwhile, his long-standing faith in Amazon reflects confidence in its leadership, diversified revenue streams, and strategic advantages, especially during volatile geopolitical times. Investors would do well to consider both the risks of overpaying for future growth and the rewards of backing companies with solid fundamentals trading at reasonable prices.

Billionaires Buffett and Gates Reveal Their Secret to Success: Focus

May 9, 2025 Staff ReporterMoney 0

Two of the world’s most successful billionaires, Warren Buffett and Bill Gates, once participated in a simple yet revealing exercise at a gathering. Each was asked to write down a single word that they believed summed up the secret to their success. Interestingly, both independently chose the same word: focus.

Bill Gates shared more insight into this during a 2016 interview with Charlie Rose, where he highlighted the value of passion and early dedication. “The thing you do obsessively between age 13 and 18, that’s the thing you have the most chance of being world-class at,” Gates explained. For him, that passion was computer programming. His deep interest in coding paid off, as it eventually led him to co-found Microsoft and become a millionaire in his twenties. Today, Gates is the seventh richest person globally, boasting a net worth of about $127 billion, according to the Forbes real-time billionaires index.

Warren Buffett, too, showed a focused interest early on. In a CNBC interview, Buffett reflected on his youth, saying, “Well, I was pretty interested in investments.” That interest was already present when he was just 11 years old. In 1942, he used his life savings of $114.75 to purchase three shares of Cities Service, an oil and gas company now known as Citgo.

His early obsession turned into a lifelong journey in finance, making him one of the most celebrated investors in history. Now 94, Buffett recently announced his retirement as CEO of Berkshire Hathaway during the company’s annual shareholder meeting in May. Berkshire Hathaway owns a broad range of well-known companies, including Geico, Duracell, and Dairy Queen. As of now, Buffett stands as the fifth wealthiest person on Earth, with a net worth of approximately $160 billion.

Buffett also once recounted a moment when Gates’s father invited a group of prominent men to write down one word that defined their path to success. Both Buffett and Gates again wrote down the word “focus,” without knowing the other had done the same. “He was focused on software, I was focused on investments,” Buffett said. “It gave me a big advantage to start very young — there’s no question about it.”

Even if you’re no longer in your teenage years, Buffett and Gates’s stories suggest it’s not too late to apply the principle of focus to build wealth. There are three strategies inspired by their journeys that could help you do just that.

Start Early and Stay Focused

The importance of starting early in investing cannot be overstated. It is a cornerstone principle for both Gates and Buffett. Buffett has often discussed the power of compound interest, which allows wealth to grow faster as you earn interest on both your initial investment and the interest it has already generated.

In 1999, at a Berkshire Hathaway shareholders meeting, Buffett vividly illustrated this idea. “We started building this little snowball on top of a very long hill,” he said. “The trick is to have a very long hill, either start very young or live to be very old.”

There are various ways to begin your investment journey. You might choose to buy individual stocks or low-cost index funds through a brokerage account. Alternatively, you could invest using tax-advantaged accounts like a 401(k) plan, if your employer offers one, or an individual retirement account (IRA).

Staying focused once you begin investing is equally crucial. Even small, regular investments—such as putting aside spare change—can build significant wealth over time. The longer your money has to grow, the greater your returns could be.

Focus on Quality and Value

Buffett is widely known for his commitment to value investing. This method involves identifying stocks that are priced below their true worth and holding onto them for the long haul. He typically seeks out businesses with strong, consistent earnings, healthy cash flow, and low levels of debt.

His preference for long-term investment in high-quality companies is evident in his substantial, enduring stakes in firms like Coca-Cola and American Express. As he wrote in his 1996 letter to shareholders: “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”

One of the most prominent examples of Buffett’s value investing philosophy is Berkshire Hathaway’s stake in Apple. As of now, Apple represents about 28% of the conglomerate’s entire stock portfolio. At the 2023 Berkshire Hathaway shareholders meeting, Buffett said of Apple, “It just happens to be [a] better business than any we own,” praising the company’s outstanding financial performance.

Focus on Learning and Improving

No investment journey is without its missteps, and even legendary investors like Buffett have faced their share of regrets. At the 1997 Berkshire Hathaway meeting, Buffett admitted to “mistakes of omission,” referring to missed opportunities to invest in excellent companies.

His long-time business partner, the late Charlie Munger, who passed away in 2023, also addressed the importance of recognizing rare investment opportunities. He remarked, “Most people get very few, what I call, no-brainer opportunities, where it’s just so damned obvious that this is going to work.” Munger emphasized the need for both courage and intelligence when those rare chances appear. “I think people have to learn to have the courage and the intelligence to step up in a major way when those rare opportunities come by,” he said.

Of course, not everyone is well-versed in the complexities of investing. Fortunately, help is available. You might choose to work with a professional financial adviser who can offer tailored guidance based on your financial goals. Alternatively, modern investing apps and platforms can help automate the process, making it easier for beginners to take that first step.

In summary, the shared philosophy of Buffett and Gates highlights how the principle of focus—especially when applied early and consistently—can yield extraordinary results. Whether it’s choosing the right assets, learning from past errors, or staying the course through market ups and downs, staying focused might just be the clearest path to building wealth over time.

China’s Rapid Gold Turnaround Sparks Volatility in Global Prices

May 2, 2025 Staff ReporterMoney 0

China, which recently played a pivotal role in driving gold prices to unprecedented levels, has abruptly reversed its course by offloading significant holdings—triggering a sharp decline in the precious metal’s value. This dramatic shift from aggressive accumulation to near-record selling has had a ripple effect across global markets.

For weeks, China had been a dominant buyer of gold, pushing prices to historic highs. Spot gold prices briefly surged to an all-time record of $3,500, fueled by massive inflows into Chinese gold exchange-traded funds (ETFs), particularly the Huaan Yifu, Bosera, and Guotai gold ETFs. Demand appeared insatiable, with the Asian giant seemingly at the forefront of a global gold rush.

However, that bullish trend didn’t last long. As is often the case with momentum-based trading patterns in China, the rapid ascent quickly reversed. In what analysts described as a whiplash-inducing turnaround, China began liquidating gold holdings ahead of the Labor Day holiday, abruptly ending its recent buying spree.

“China liquidated what it bought last week ahead of the Labor Day holiday,” explained Goldman Sachs commodity trader Adam Gillard. As a result, “total onshore positioning [is] now 5% off the all-time high (ATH).” Despite the pullback, Gillard noted that China’s influence on global gold markets remains potent. “China’s share of total open interest remains on the highs at ~40%, [but] upward momentum may have peaked for the time being,” he added.

The rollercoaster ride of Chinese gold activity can be captured in a series of key market movements over the past several days. On Tuesday, April 22, gold reached its ATH when China added a staggering 1.2 million ounces in positioning across the Shanghai Gold Exchange (SGE) and the Shanghai Futures Exchange (SHFE), setting a record volume in the process. The bullish surge pushed gold to dizzying heights and sparked buying frenzies across multiple platforms.

But just days later, China reversed nearly the entire April 22 buying spree by selling off close to 1 million ounces across SHFE and SGE, marking one of the largest single-day liquidations on record. This substantial sell-off came seemingly out of nowhere, catching traders and analysts off guard. The result was a dramatic reversal in gold prices, which have now dropped significantly from their recent highs.

Interestingly, Chinese ETFs such as the Huaan Yifu, Bosera, and Guotai remained largely unchanged during the liquidation wave, indicating that the sell-off was concentrated in futures and spot markets rather than institutional holdings.

Following this sudden unloading, total Chinese gold positioning is now approximately 5% below its peak, eroding much of the gains made during the April rally. The speculative import arbitrage—the difference between paper gold prices and physical import costs—has also declined by about $20 per ounce from its highs, suggesting cooling interest in speculative trading.

According to Gillard, the timing of China’s trading activity plays a crucial role in the magnitude of its impact. He pointed out that recent price moves are occurring “exclusively around the time China opens,” reflecting the powerful influence of Chinese market hours on global gold pricing. This is especially true during the Asian morning sessions, which tend to be less liquid than other global trading periods.

Because China conducts a large portion of its gold trading during these relatively illiquid times, it has an outsized effect on prices. “China is having a disproportionate impact on price because they execute during an illiquid part of the day (Asia morning) which likely triggers ex-China CTA [commodity trading advisor] trading signals,” said Gillard. As these signals are triggered, automated trading systems and institutional investors respond, amplifying market movements.

The impact of China’s rapid reversal has already manifested in declining prices. “Gold is dumping in early Asian trading to the lowest level in 2 weeks,” Gillard reported, highlighting the speed and severity of the downturn.

This dramatic turnaround underscores the volatile nature of commodity markets, particularly when driven by large, concentrated players like China. It also raises questions about the sustainability of recent price trends, as momentum-driven rallies can reverse quickly once investor sentiment shifts.

Analysts note that China’s gold behavior is not unprecedented but follows a familiar pattern of aggressive accumulation followed by rapid liquidation. The recent events mirror past trading cycles in Chinese markets, where sentiment and positioning can swing sharply in response to domestic holidays, policy cues, or shifting risk appetites.

Although China’s overall interest in gold remains high, the current liquidation phase suggests a more cautious approach going forward. With the Chinese share of global open interest still hovering around 40%, any future moves by Chinese traders will likely continue to exert a powerful influence on global prices.

The events of the past week serve as a stark reminder of how quickly market dynamics can change. Just a week ago, China was seen as the driving force behind a record-setting gold rally. Now, its actions are being blamed for dragging the market lower.

For investors, the key takeaway is clear: while Chinese buying can propel markets upward, its sudden withdrawals can just as easily send them tumbling. As such, understanding China’s trading behavior—and its timing—has become essential for anyone navigating the gold markets today.

In sum, the brief but intense surge in Chinese gold buying has given way to an equally swift retreat. Although ETFs remain steady and the overall Chinese presence in the gold market is still considerable, the momentum appears to have stalled—at least for now.

As Adam Gillard summed it up, “Upward momentum may have peaked for the time being,” offering a sobering conclusion to what was, just days ago, an exuberant gold rush driven by the world’s second-largest economy.

Dollar Slides as Trade Uncertainty and Data-Filled Week Keep Markets on Edge

April 29, 2025 Staff ReporterMoney 0

The U.S. dollar weakened significantly across global currencies on Monday as investors remained cautious about the future direction of U.S. trade policy and prepared for a crucial week filled with economic data. The upcoming releases are expected to shed light on whether President Donald Trump’s trade war is beginning to show negative effects on the domestic economy.

“Today has been characterized by a correlation between the dwindling buck and doubt affecting equities,” explained Juan Perez, director of trading at Monex USA based in Washington. He added, “While earnings will keep markets eager, the main issue remains the lack of faith in having a good economic situation developing in the U.S. as it tries to act unilaterally and use leverage as the world’s largest economy.”

Equity markets reflected this apprehension, with the S&P 500 and Nasdaq both falling. The Dow Jones Industrial Average, however, managed a modest gain.

During afternoon trading, the dollar declined 1.1% against the Japanese yen, reaching 142.10 yen, marking its most substantial daily loss since April 10. Simultaneously, the euro appreciated by 0.5% against the dollar, climbing to $1.1419.

Against the Swiss franc, the dollar was down 0.7%, trading at 0.8205 franc. Earlier in the day, the greenback had actually gained against the franc before reversing course. This trend contributed to the dollar heading for its worst monthly performance since July of the previous year. Investor confidence in U.S. assets has been rattled by Trump’s unpredictable trade maneuvers.

In contrast, the euro was on track for its biggest monthly gain against the dollar in nearly 15 years. Although the dollar had trimmed some of its monthly losses late last week, this partial recovery was fueled by a perceived softening in rhetoric from both the U.S. and China concerning their trade standoff.

Signs of a more conciliatory tone emerged, with the Trump administration indicating it might consider reducing tariffs and China agreeing to exempt some imports from its steep 125% duties. Despite these gestures, significant uncertainties remain.

Trump has insisted that progress is being made in the negotiations and mentioned speaking with Chinese President Xi Jinping. However, Beijing denied that trade talks were ongoing. Moreover, Treasury Secretary Scott Bessent did not confirm on Sunday that tariff discussions were underway.

On Monday, Bessent noted that top U.S. trading allies had submitted “very good” proposals intended to help avoid the imposition of U.S. tariffs. He mentioned that one of the initial agreements could likely be with India.

Regarding China, Bessent stated, “All aspects of government are in contact with China,” emphasizing that the responsibility to ease tensions rested largely on Beijing, as China exports five times more goods to the U.S. than it imports.

Anticipated Economic Reports Ahead

Market participants are also waiting for the release of the April U.S. employment report due on Friday. While job growth is still expected, the pace is anticipated to be markedly slower compared to the previous month.

Federal Reserve policymakers, including Chair Jerome Powell, have suggested they are open to cutting interest rates if economic growth appears threatened. However, they seem inclined to first evaluate the real-world impact of Trump’s tariff policies on key indicators such as inflation and job creation.

Other key data scheduled for release this week includes U.S. first-quarter gross domestic product (GDP) figures and the Fed’s preferred inflation indicator, the core Personal Consumption Expenditures (PCE) index. Across the Atlantic, Europe is also preparing to publish GDP figures and early inflation estimates.

“Data later on may move the buck but for now we see ourselves at the mercy of headlines offering some clue about progress on the trade front,” said Monex’s Juan Perez. He continued, “Long-term planning as well as forecasting navigating through the headache of ever-changing narratives. With ‘Sell USA’ mentality abroad, the dollar is quick to suffer from a sour mood.”

Meanwhile, in Europe, the euro dropped 0.4% against the British pound to 85.03 pence after reports of a widespread power outage affecting large portions of Spain.

Other Global Currency Movements

Canada held its general election on Monday. Although the ruling Liberal Party maintained a narrow lead in traditional opinion polls, it held a more substantial advantage in online prediction markets. Currency volatility in the Canadian dollar appeared muted, with the greenback slipping only 0.1% to C$1.3836.

In Japan, the Bank of Japan is scheduled to decide on monetary policy this Thursday. No change in interest rates is expected, but markets are paying close attention to the bank’s economic outlook and how it plans to respond to a shifting global economic landscape. U.S.-Japan trade talks are also expected to cover currency issues.

Japan’s chief currency official, Atsushi Mimura, on Monday dismissed a report published in the Yomiuri newspaper that Bessent had commented during a meeting with Japanese officials that a weak dollar and strong yen were favorable outcomes.

Currency Snapshot as of April 28 at 07:37 p.m. GMT

The dollar index stood at 98.941, down from the previous close of 99.729, registering a 0.78% daily decline and an 8.80% year-to-date decrease. The euro-dollar exchange rate rose to $1.1422 from $1.1362, gaining 0.52% for the day and 10.32% year-to-date.

The dollar-yen exchange fell to 142.04 from 143.65, a 1.11% drop for the day and a 9.72% year-to-date decrease. The euro-yen pair was at 162.27, down 0.6% from the previous session.

Against the Swiss franc, the dollar fell to 0.8206 from 0.8266, a 0.71% decrease for the day. The pound strengthened against the dollar, reaching $1.3429, up 0.9%.

The dollar also declined slightly against the Canadian dollar, falling to 1.3832 from 1.3851, while the Australian dollar rose to 0.6429 from 0.6397, a 0.52% increase.

Other notable currency movements included the euro-franc falling to 0.9371, the euro-sterling dropping to 0.8503, and the New Zealand dollar edging up to 0.5971. The dollar also dropped against Scandinavian currencies, including the Norwegian krone and Swedish krona.

In conclusion, a mix of trade policy ambiguity, geopolitical tension, and anticipation over key economic reports contributed to the dollar’s broad decline. While investors seek more clarity, currency markets remain highly reactive to even small shifts in diplomatic or economic signaling.

Stocks Rebound as Tech Giants Lead Rally Amid Tariff Talk Optimism

April 25, 2025April 29, 2025 Staff ReporterMoney 0

After opening the week with a steep drop, the stock market staged a strong recovery on Tuesday. The S&P 500 surged by 2.5%, led by solid gains in major technology companies including Apple, Amazon, and Meta. This turnaround helped recoup most of the earlier losses and renewed investor confidence following a turbulent start to the week.

One of the key factors driving Tuesday’s rally was a behind-closed-doors investor summit hosted by J.P. Morgan in Washington, D.C., where Treasury Secretary Scott Bessent addressed attendees. According to a Bloomberg report that broke midday, Bessent indicated optimism about the U.S.-China tariff conflict. He reportedly suggested that he anticipated a de-escalation in the situation, describing the ongoing standoff as “unsustainable.” His remarks struck a hopeful chord with investors who have been rattled by market volatility in recent weeks.

Following the Bloomberg release, investors reacted quickly. Stock prices, which had been gradually rising throughout the morning, spiked after the news, driven by hope that tensions with China might ease and bring stability to global trade.

Meanwhile, the U.S. dollar, which usually sees increased demand during times of uncertainty as investors flee to safer assets, has not performed as expected. Amid President Trump’s ongoing tariff battles, the dollar has actually weakened against other currencies. The shifting and unpredictable nature of U.S. trade policy has caused concern in the markets. While the dollar managed to find some footing on Tuesday thanks to the broader stock market rebound, sentiment remains fragile. According to Bank of America’s most recent Global Fund Manager Survey, 61% of respondents believe the dollar is likely to decline in value over the coming year.

At the same time, alternative assets continued to see strong momentum. Bitcoin, often touted as a hedge against traditional, government-backed financial systems, crossed $90,000 on Tuesday for the first time in more than a month. This marked a significant milestone for the cryptocurrency, and some analysts believe it may be breaking away from traditional equity market patterns. Gold also saw a spike, reflecting continued investor concern about market instability. The precious metal, historically considered a safe haven in times of economic turbulence, briefly climbed above $3,500 an ounce on Tuesday for the first time.

Despite Tuesday’s market rebound, several troubling signals remain. One ongoing concern is President Trump’s continuing threats to remove Federal Reserve Chair Jerome Powell. This has cast a shadow over investor confidence, as any abrupt change in Fed leadership could have far-reaching consequences for monetary policy.

In addition, Bank of America Securities issued a report on Monday revising its global economic growth forecast downward. The firm trimmed its projection by 0.3%, pointing directly to the Trump administration’s erratic tariff policy as a contributing factor. “We expect a significant slowdown but not a recession,” the report stated, estimating the chances of a recession at 35%.

The Trump administration, however, is still promoting a narrative of nearing success in international trade negotiations. Officials have highlighted ongoing discussions with countries like Japan and India as evidence that deals are in the pipeline. Yet, new reporting by Politico casts doubt on the scale of these potential agreements. Rather than comprehensive trade deals, Politico revealed that the resulting documents might be limited to “memorandums of understanding,” with full negotiations stretching out for months to come.

As companies continue to report first-quarter earnings, further volatility in the markets is expected. Tesla, the electric vehicle company headed by Elon Musk, released its quarterly financial results on Tuesday evening. This came after a rough month for the company’s stock, which has fallen by nearly 15%. The results revealed a steep drop in net income, which fell by 71% in the first quarter. Analysts cited increasing competition from foreign automakers and ongoing questions about Musk’s leadership role as contributing factors to the poor financial performance.

Investors remain on edge, grappling with the implications of Trump’s unpredictable economic maneuvers, a potentially weakening dollar, and signs of slowing global growth. Although Tuesday’s market surge provided a welcome break from a stretch of losses, the broader outlook remains clouded by uncertainty and caution.

The response to Treasury Secretary Bessent’s remarks suggests that markets are still highly reactive to any signal of relief from geopolitical and trade-related pressures. His statement, in which he called the trade standoff with China “unsustainable” and said he expected it to ease, was enough to inject optimism and spark a rapid rally. Yet, this optimism rests on fragile ground, as fundamental challenges in global trade and economic policy remain unresolved.

Moreover, while alternative assets such as Bitcoin and gold are gaining traction as hedges, they also highlight a deep unease among investors. The surge in these assets indicates a search for security outside traditional markets, reflecting a growing lack of faith in conventional economic indicators.

The broader implications of Tuesday’s market rebound remain to be seen. It served as a momentary breather from the relentless downward pressure of recent weeks, but most analysts agree that the underlying conditions—geopolitical instability, policy uncertainty, and volatile corporate earnings—are far from resolved.

Adding to the unease is the continued tension surrounding the Federal Reserve. Trump’s persistent criticism of Chair Jerome Powell and suggestions that he may seek his removal have raised alarms in both political and financial circles. Such an action would be unprecedented and could disrupt the Fed’s independence, a cornerstone of its credibility and effectiveness.

Overall, while Tuesday’s events offered a momentary surge in investor sentiment, the market still faces a challenging road ahead. The sharp rise in stock prices, driven by a few encouraging comments and gains in tech stocks, stands in contrast to the broader landscape of economic instability and uncertain policymaking.

With trade talks dragging on and concrete agreements still out of reach, optimism may continue to fluctuate. Meanwhile, companies like Tesla underscore the real-world effects of this uncertainty, with earnings being squeezed by competition and the unpredictability of leadership.

Tuesday’s gains may be a sign that investors are eager for hope—but the fundamentals that sparked the recent selloff are still in play. Until there is more clarity on trade, the economy, and monetary policy, volatility is likely to persist.

World Bank President Ajay Banga Highlights Jobs-Focused Strategy for 2025 Spring Meetings

April 17, 2025April 18, 2025 Staff ReporterMoney 0

Ajay Banga, the President of the World Bank Group, has announced that a “Jobs-Focused Strategy” will be the central theme for the upcoming 2025 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF), scheduled to take place from April 21 to 26, 2025, in Washington D.C. Banga stated that this strategy reflects the World Bank’s “urgency and conviction that development must lead to opportunity.”

Speaking at a virtual press conference on April 16, 2025, ahead of the meetings, Banga revealed that the World Bank is ready to expand its efforts in addressing job creation. He emphasized that more information would be shared during the Spring Meetings about the next phase of the private sector lab. “We’re going to expand its membership to include the sectors that we believe are most critical to job creation, and these are energy and infrastructure, agribusiness, healthcare, tourism, and manufacturing,” Banga explained.

The World Bank has also launched the High-Level Advisory Council on Jobs, co-chaired by Tharman Shanmugaratnam, President of the Republic of Singapore, and Michelle Bachelet, former President of the Republic of Chile. This Council, Banga noted, aims to create more employment opportunities and strengthen efforts to address the global jobs crisis.

Job creation, according to Banga, has become the cornerstone of the World Bank’s development agenda. He underscored that over the next decade, 1.2 billion young people are expected to enter the workforce in developing countries. However, current projections show that these economies are only expected to generate 420 million jobs, creating a significant gap in employment opportunities. “And that gap is not just an economic issue. I think it’s a global risk, because without opportunity, the forces of fragility, of illegal migration, of instability, these forces grow stronger,” Banga warned.

In response to questions about the potential impact of reciprocal tariffs under President Donald Trump’s administration, Banga expressed uncertainty. “I don’t know how to predict the timeline, because what I don’t know is how quickly you get to resolution on some of these specific country-by-country negotiations,” he said. Despite the uncertainty, Banga emphasized the importance of sustained dialogue and negotiation. He added that the quicker countries can resolve such issues, the better, and urged nations to continue engaging in regional and bilateral trade agreements with cooperative partners.

Banga acknowledged that the current geopolitical volatility and uncertainty are contributing to a more cautious investment environment. “I think that’s going to affect how governments and businesses make their investment decisions right now. But meanwhile, interestingly, developing economies are playing a far more central role in global trade than they did, say, two decades ago,” he noted.

He explained that countries dependent on export-led growth, especially those relying on commodities or manufactured goods, are particularly vulnerable to disruptions in global trade. However, Banga emphasized that these countries still have policy tools at their disposal to help navigate uncertainty and build long-term resilience. As an example, he pointed out that many developing countries maintain higher tariffs than their advanced counterparts, especially on key imports.

“I think that creates a real risk of reciprocal tariffs and, most importantly, lost competitiveness. So a broad-based liberalization, not just with favorite partners, can help offset these risks and actually expand market access,” Banga said. He also highlighted that trade among developing nations is on the rise, with nearly half of exports from these economies now going to other emerging markets. Banga noted that more efficient border processes, reduced trade costs, clearer rules of origin, and decreased friction can significantly boost trade volumes while fostering stable and diversified growth.

Despite acknowledging the uncertainty surrounding global economic growth, Banga expressed confidence in the World Bank’s ability to respond to challenges. He drew on the institution’s experience during past global crises, such as the COVID-19 pandemic and the 2008-09 financial crisis, to assure that the Bank, in collaboration with the IMF and regional partners, will continue to provide essential technical support, financing, and infrastructure assistance. These efforts, he said, will enhance productivity and promote trade in emerging markets.

Reflecting on the World Bank’s founding purpose, Banga reminded that the institution was established to foster a more stable and prosperous global economy, with the aim of avoiding conflicts. “This was a charity. It was a calculated investment in the global economic architecture, one that I believe has paid off many times over in these 80 years,” he said. He highlighted the significant work of the Bank’s five arms: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID).

“There’s no other institution that brings all of this together in one place, and that’s what makes the World Bank Group uniquely positioned to support countries and investors across the entire development journey,” Banga emphasized. He went on to assert that the World Bank Group remains a smart investment for governments, taxpayers, and the private sector alike. “We’re on the move. We’re trying to change things here and look to deploy proven tools to unlock growth, to reduce fragility, and generate returns for people, for businesses and for the global economy,” he said.

Reaffirming the World Bank’s commitment to creating meaningful and sustainable employment opportunities, Banga concluded, “The idea is to build a Bank that delivers what is demanded – jobs, because jobs are the best way to drive a nail in the coffin of poverty.”

Money and Mind: Study Reveals How Income and Financial Satisfaction Affect Well-Being Differently

April 14, 2025 Staff ReporterMoney 0

A comprehensive international study has revealed that individuals who feel content with their financial situation tend to report better emotional, physical, and mental well-being, regardless of their actual income level. However, when it comes to forecasting long-term changes in well-being, actual income proves to be a more accurate predictor than financial satisfaction. Published in the Journal of Personality and Social Psychology, the study emphasizes that how people feel about their finances and how much they earn each affect well-being in distinct ways.

The research was led by Vincent Y. S. Oh, a senior lecturer at the Singapore University of Social Sciences. His goal was to explore the complex connection between financial standing—both objective and subjective—and overall well-being. While the phrase “money doesn’t buy happiness” is often quoted, the link between wealth and life satisfaction has been long debated.

Earlier studies have suggested that greater income might be associated with increased happiness, but these conclusions often rely on narrow definitions of happiness or focus only on short-term impacts. Oh aimed to go further by analyzing how both actual income and financial satisfaction influence various dimensions of well-being over time.

“The question of whether money buys happiness is one that I think has great appeal to many, probably because money is such an inescapable reality of almost everyone’s lives. You see it being discussed online on Reddit and news commentaries, you hear people talk about it, you see memes about it online, and so on,” Oh told PsyPost.

He added, “More personally as well, financial pressures were also a significant part of my memories of growing up. I think our experiences of life can be shaped quite significantly by our economic and financial circumstances, and this was thus a practically important and relevant topic that was worth delving into empirically.”

Oh examined three extensive, long-term datasets from the United States and South Korea. These datasets—the Midlife in the United States Study, the Understanding America Study, and the Korean Longitudinal Study of Aging—tracked over 7,600 individuals across multiple years. Participants were repeatedly assessed to determine their income, financial satisfaction, and performance on 22 different indicators of well-being, such as emotional state, health, social connections, life satisfaction, and sense of meaning.

Income was calculated based on self-reported annual earnings, adjusted for inflation and currency differences. Financial satisfaction was gauged using straightforward questions asking individuals to rate their contentment with their financial situation. Well-being was measured through various items, including assessments of emotional experiences, physical and mental health, and life satisfaction. The research utilized latent growth modeling and meta-analysis to understand how income, satisfaction, and well-being evolved over time.

At the start of the study, those who felt satisfied with their financial situation consistently reported higher well-being across a wide range of domains. These individuals experienced more life satisfaction, better physical and mental health, and more positive emotions. The correlation was strong. In contrast, initial income levels did not consistently correlate with initial well-being levels. Surprisingly, in some instances, higher income was even linked to lower well-being when financial satisfaction was considered.

However, the pattern reversed when analyzing long-term trends. Participants with higher incomes at the beginning of the study showed better long-term improvements—or smaller declines—in emotional and life satisfaction indicators. Financial satisfaction, while clearly tied to present well-being, did not show a link to long-term improvements.

“It was interesting that although subjective financial satisfaction was clearly more strongly related to one’s current well-being, there was no evidence that it played a role in predicting future trajectories of change in well-being,” Oh noted. “Instead, income had relatively stronger evidence supporting its role as a predictor of future changes in well-being. Thus, it seems that both income and subjective financial satisfaction could matter to well-being, albeit in different ways.”

The study also looked at whether individuals with higher initial well-being later reported increased income or financial satisfaction. The answer was mostly no. Those who began with higher well-being did not necessarily go on to earn more money or feel better about their finances.

“The main takeaway is that there isn’t a single answer to the question of whether money buys happiness or whether one should be content with what one has,” Oh told PsyPost. “Money does matter in that higher-income-earners were more likely to have better future well-being, but at the same time, being subjectively happy with one’s finances played a much larger explanatory role in current well-being than how much one earns.”

Oh also addressed conventional wisdom that encourages people to completely ignore material concerns. “Any conventional wisdom that takes the form of asking people to forgo material concerns entirely is unlikely to be good advice, because ultimately, money is important to our day-to-day lives and can make a significant difference to our psychological and physical wellness. At the same time, time and again, research has shown that excessive materialism is likely to be detrimental.”

He added, “Independently of how much we actually earn, our subjective relationship with money makes a lot of difference. As much as many of us chase after material goals (and for good reason, since money does matter), we do need to moderate this pursuit and to try to cultivate some level of contentment with our finances as this may ultimately play a more significant role in our current sense of wellness. I do acknowledge, however, that this can be easier said than done.”

The study has its limitations. The average age of participants was middle-aged or older, and the financial satisfaction measure was based on only a few simple questions. Furthermore, because the study wasn’t experimental, it can’t prove cause and effect. For example, people who feel generally happy with life may also rate their finances more positively, even if those finances haven’t improved.

“The present findings do not support a direct causal inference since the studies reported are non-experimental,” Oh said. “Still, the present findings provide longer-term findings spanning over a decade, which complements some other studies reported which do support a causal role of money in well-being over shorter time frames.”

He further noted, “Additionally, the findings reported are quite comprehensive, spanning multiple well-being measures as well as participants from two relatively distinct nations (the United States and Korea). Despite this, we should be cautious of generalizing beyond what the methodology allows. There is some previous work suggesting that there are divergent relationships between money and well-being across countries, and the present findings may not generalize to all other countries equally or to other forms of well-being (e.g., meaning) that weren’t measured in the present work.”

Despite these limitations, the study stands as one of the most expansive inquiries into how money and well-being interact over time. Oh is interested in future research focusing on the finer details of socioeconomic status and its impact on well-being. This includes studying the influence of debts, caregiving expenses, and why some people are more content with their financial status than others.

“Amidst global inflationary pressures and other economic uncertainties, I think these are times where economic concerns are really critical to the everyday experiences of many people,” Oh concluded. “While the present research may offer little direct comfort, I hope they at least provide some validation of the experiences of those struggling with economic/financial concerns – money (and our subjective experience of money) does matter to our psychological and physical wellness, and such concerns should be taken very seriously and hopefully addressed by policy-makers throughout the world.”

Rupee Emerges as Second Weakest Asian Currency Amid Global Tariff Turmoil

April 13, 2025 Staff ReporterMoney 0

The Indian rupee found itself as the second worst-performing currency in Asia on April 11, largely due to global turbulence resulting from the announcement of reciprocal tariffs by U.S. President Donald Trump on April 2. Despite a notable decline in the U.S. dollar index, the Indian currency failed to gain strength, weighed down by weak foreign investor flows and declining domestic equities, according to market analysts.

Bloomberg data revealed that the rupee had depreciated by 0.73 percent between April 1 and April 11. Only the Indonesian rupiah performed worse, sliding by 1.40 percent in the same period. While the rupee struggled among Asian currencies, it did manage to fare better than some global peers. The South African rand fell 4.31 percent, the Brazilian real dropped 3.45 percent, the Norwegian krone lost 1.60 percent, the Australian dollar slipped 0.92 percent, and the Mexican peso declined 0.85 percent against the U.S. dollar over the same timeframe.

Dilip Parmar, a senior research analyst at HDFC Securities, pointed out that although the rupee was relatively less volatile among Asian currencies, it still underperformed in April due to capital outflows and overall risk aversion in global markets. “The Indian rupee remained least volatile among the Asian peers but underperformed so far this month amid foreign fund outflows amid volatile risk assets. The upbeat economic data and RBI’s (Reserve Bank of India) interest rate cut fell short in attracting foreign institutions to invest in domestic equity amid global trade worries,” Parmar explained.

The pressure on the rupee was significantly tied to President Trump’s tariff announcement on April 2. During a White House event, Trump unveiled a global reciprocal tariff plan, using a chart to illustrate the new tax measures. The chart showed that the United States would impose a 34 percent tariff on goods from China, 20 percent on the European Union, 25 percent on South Korea, 26 percent on India, 24 percent on Japan, and 32 percent on Taiwan.

In contrast, the chart presented by Trump suggested that India was already levying a 52 percent tariff on U.S. imports. These charges were said to include issues such as “currency manipulation and trade barriers.” In response, the U.S. would impose “discounted reciprocal tariffs” of 26 percent on imports from India.

The market reaction was swift and negative. Stock markets around the globe suffered steep losses following the announcement, with foreign investors pulling significant funds out of Indian equities. This capital flight exerted downward pressure on the rupee. However, the concurrent decline in the dollar index helped limit the rupee’s depreciation to some extent. The index, which gauges the dollar’s strength against a basket of six major currencies, dropped to 99.460—its lowest level since July 18, 2023, when it had reached 99.941.

Adding another twist to the story, Trump declared a 90-day pause on April 10 for the reciprocal tariffs, sparing all countries except China from the full brunt of the levy for the time being. As part of this new adjustment, a baseline 10 percent tariff was retained for all nations except China, which saw its rate soar to 125 percent. This partial rollback came amid mounting political and economic pressure from within the United States.

Over the past few days, Trump had come under fire from fellow Republicans and business leaders who voiced concerns about the consequences of his tariff policy. With markets experiencing sharp selloffs, the fear of igniting a global trade war loomed large. Investors and economists warned that these measures might tip the world economy into a recession. The panic in financial markets forced Trump to reconsider his aggressive tariff strategy.

“People are getting a little bit afraid,” Trump acknowledged when speaking about the broader response to his policy. He added, “I thought that people were jumping a little bit out of line. They were getting yippy.”

A major factor behind Trump’s partial reversal was the dramatic selloff in the U.S. government bond market. According to reports, this development had raised alarms within the administration. U.S. Treasury Secretary Scott Bessent and other White House officials expressed concerns over the implications for the broader financial system.

Despite the tariff pause, uncertainty remains high in global markets. Investors remain cautious, closely monitoring future decisions from the U.S. administration and their ripple effects on emerging markets, including India. The rupee, caught in this maelstrom of global financial anxiety, is unlikely to see immediate relief unless foreign investment flows resume and geopolitical tensions ease.

The volatility highlights the precarious position of emerging market currencies, which are increasingly sensitive to global trade developments. While India’s economic fundamentals remain relatively strong, factors beyond its control—such as U.S. trade policy and global risk sentiment—continue to dictate the rupee’s direction in the near term.

Although the Reserve Bank of India had recently cut interest rates and released positive economic data, these moves were not enough to entice foreign institutional investors to return. With sentiment soured by the possibility of further escalation in trade tensions, the Indian rupee faces an uphill battle.

Ultimately, the rupee’s performance in the coming weeks will hinge on a delicate balance of global risk appetite, foreign capital inflows, and any additional policy signals from both the Reserve Bank of India and the U.S. Federal Reserve. For now, its status as one of the weakest Asian currencies underlines the interconnectedness of national economies and the disproportionate impact of global political decisions on domestic financial markets.

As long as reciprocal tariffs remain a credible threat and foreign investors remain wary, the rupee may continue to struggle to regain its footing despite relatively stable domestic economic indicators.

Billionaires Lose $208 Billion Amid Trump’s Tariff Announcement, Zuckerberg Faces Heaviest Blow

April 4, 2025 Staff ReporterMoney 0

In one of the most significant wealth declines in over ten years, the 500 richest individuals across the globe saw a combined drop of $208 billion in their fortunes. This massive hit followed the announcement by U.S. President Donald Trump of a sweeping set of reciprocal tariffs aimed at major international trade partners.

Mark Zuckerberg, the founder of Facebook and its parent company Meta, experienced the most severe personal loss among the global elite. His net worth plummeted by $17.9 billion, amounting to a staggering 9% decrease. This marked the single largest personal loss of the day and symbolized the broader economic tremors felt throughout the billionaire class.

The losses marked the fourth-largest one-day drop in the 13-year history of the Bloomberg Billionaires Index. The only comparable financial hit occurred during the peak of the Covid-19 pandemic. This time, however, it was triggered by a political move rather than a global health crisis. Following the announcement of the tariffs, American billionaires bore the heaviest losses, reflecting the financial community’s reaction to the potential consequences of the escalating trade tensions.

Amazon founder Jeff Bezos, another major casualty, saw his net worth decline by $15.9 billion. This sharp fall came after Amazon’s stock price slid by 9%, making it the steepest daily drop the company had experienced since April 2022. Investors responded swiftly and negatively to the trade war rhetoric, fearing that it could damage global supply chains and consumer confidence.

Tesla CEO Elon Musk, known for his close ties with Trump and his role as a government advisor, was not immune to the fallout. His wealth decreased by $11 billion as Tesla shares slipped by 5.5%. Despite his relationship with the administration, market forces reacted independently, pulling down share prices in anticipation of future economic instability.

Several other prominent American billionaires also suffered significant losses. Michael Dell, the founder of Dell Technologies, saw his fortune decline by $9.53 billion. Oracle co-founder Larry Ellison’s net worth dropped by $8.1 billion. Nvidia CEO Jensen Huang experienced a loss of $7.36 billion, while Google co-founders Larry Page and Sergey Brin lost $4.79 billion and $4.46 billion, respectively. Thomas Peterffy, the founder of Interactive Brokers, also took a hit of $4.06 billion.

Outside of the United States, only a few non-American billionaires were substantially affected. Among them, French luxury tycoon Bernard Arnault stood out. As the head of LVMH, the world’s largest luxury goods company, Arnault’s wealth declined by $6 billion. The drop followed a slide in LVMH’s stock value in Paris trading. With the European Union now facing a newly imposed 20% flat tariff on all exports to the U.S., luxury goods companies like LVMH were particularly vulnerable. The group owns some of the most iconic brands in the world, including Christian Dior, Bulgari, and Loro Piana.

These tariffs could significantly affect European exports, especially in sectors like alcohol and luxury products, where France is a dominant player. Arnault’s losses highlight the broader international consequences of Trump’s protectionist economic policies. With shares of luxury brands falling sharply, markets are clearly bracing for reduced demand and disrupted trade flows between the EU and the U.S.

Trump’s latest round of tariff hikes specifically targeted nations he has frequently accused of exploiting the U.S. through unfair trade practices. The president increased tariffs on imports from several key regions and trading partners. China was hit hardest, with an additional 34% tariff, pushing the total up to a punishing 54%. This move is likely to further strain the already tense trade relationship between the U.S. and China.

The European Union, as noted, now faces a uniform 20% tariff on its exports to the United States. This development comes after years of diplomatic friction over trade imbalances and accusations of protectionism from both sides. Japan was not spared either, receiving a 24% increase in tariffs. These hikes represent a significant escalation in trade tensions, with potentially far-reaching implications for the global economy.

The fallout from these policy decisions was swift and unforgiving, particularly for billionaires heavily invested in companies vulnerable to international trade disruptions. The financial markets responded with a sharp correction, wiping billions off the valuations of some of the world’s biggest corporations in a matter of hours.

Although these wealth losses are largely paper-based and may be reversed if markets stabilize, they reflect growing uncertainty among investors and business leaders alike. The impact on stock prices suggests that the market views the new tariffs not just as a temporary irritant, but as a structural threat to global commerce.

Billionaires who have enjoyed years of booming valuations and tech-driven growth suddenly found themselves in the crosshairs of a volatile geopolitical landscape. With Trump’s aggressive trade strategy in full swing, companies dependent on global supply chains or international consumer bases now face heightened risks.

The economic implications extend beyond personal net worth. These massive financial hits can influence corporate strategies, hiring plans, and long-term investments. As a result, ordinary workers and consumers might also feel the ripple effects in the months ahead.

Though Mark Zuckerberg experienced the largest personal loss of the day, he was far from alone. The domino effect rippled through various industries—from tech and retail to luxury goods and automotive—showing just how interconnected today’s global economy is. “This is the kind of event that sends shockwaves through not just stock portfolios, but the strategic direction of multinational firms,” said one market analyst.

In short, President Trump’s decision to impose reciprocal tariffs has ignited not only a diplomatic firestorm but also a financial one, erasing over $200 billion in wealth among the world’s richest individuals in a single day. Whether this proves to be a temporary market overreaction or the beginning of a more sustained downturn remains to be seen. What’s clear, however, is that billionaire fortunes are not immune to political maneuvers, and the global economy remains deeply sensitive to the winds of trade policy.

India’s Remittances Reach Record $129.4 Billion in 2024, Maintaining Global Lead

April 3, 2025 Staff ReporterMoney 0

Indians residing overseas sent home a record $129.4 billion in remittances in 2024, with the final quarter alone contributing $36 billion, according to an analysis of the Reserve Bank of India’s balance of payments data. For the third consecutive year, India has received over $100 billion in remittances, maintaining its status as a global leader in this domain. India has been among the world’s top recipients of remittances for over 25 years, a trend that began with the IT sector’s expansion in the 1990s. Since 2008, the country has consistently held the number one position, according to a report by The Economic Times.

A combination of increased services exports and the migration of skilled professionals to developed nations in North America and Europe has played a crucial role in boosting remittance inflows. These new sources of funds complement traditional remittances from Gulf Cooperation Council (GCC) countries, which have long been a primary source of foreign income for Indian households.

The volume of remittances is closely tied to employment conditions in the countries sending them and migration trends in the countries receiving them. Over the decades, the number of Indian international migrants has grown significantly, rising from 6.6 million in 1990 to 18.5 million in 2024. Consequently, their share among global migrants has increased from 4.3% to over 6% in this period. Nearly half of all Indian migrants worldwide reside in GCC countries, continuing the region’s importance as a key source of remittances.

An analysis in the Reserve Bank of India’s monthly bulletin emphasized the role of skilled workers in driving remittance growth. “The competitive edge and the penetration of Indian IT services overseas at the start of the century, the number of skilled emigrants to advanced economies, especially to the US, has risen significantly. Thus, besides the GCC, advanced economies have also emerged as a major source of inward remittances to India over the years,” the analysis stated. This trend reflects the growing contribution of professionals in technology, finance, and healthcare sectors who work in high-income nations and send money back to their families.

India remains the leading recipient of remittances globally, with a significant gap between its inflows and those of other nations. In 2024, Mexico ranked second with $68 billion in remittances, while China secured the third spot with an estimated $48 billion in inflows. The growth in India’s remittances, which stood at 17.4% for the year, far exceeded the global average growth projection of 5.8%. This surge highlights the increasing financial contributions from the Indian diaspora and the robust economic ties they maintain with their home country.

Since the onset of the COVID-19 pandemic in 2020, India’s remittance inflows have increased by an impressive 63%, demonstrating the resilience and adaptability of its migrant workforce. A World Bank blog noted that “The recovery of the job markets in the high-income countries of the Organization for Economic Co-operation and Development (OECD), following the onset of the COVID-19 pandemic, has been the key driver of remittances.” This recovery has played a crucial role in sustaining remittance growth despite economic uncertainties.

Inflationary pressures in major remittance-sending regions such as North America and Europe have not dampened the upward trend. Instead, these economic challenges have reinforced the dependence of families in India on financial support from relatives abroad. “This is a reflection of dependents in India being more reliant on relatives,” remarked Madan Sabnavis, chief economist at Bank of Baroda. “Partly due to fall in domestic income as well as inflation being high.” His observation underscores the dual impact of domestic economic conditions and global employment trends on remittance flows.

The Reserve Bank of India classifies private transfers in the balance of payments as remittances and expects this upward trajectory to persist. The central bank projects that these inflows will continue to grow, reaching approximately $160 billion by 2029. If this projection holds, India will further cement its position as the world’s top recipient of remittances, underscoring the economic significance of its global diaspora.

Billionaires’ Wealth Soars Despite Market Turbulence, Surpassing the GDP of Most Nations

April 3, 2025 Staff ReporterMoney 0

Money equates to power, and the world’s wealthiest individuals continue accumulating fortunes that exceed the economies of most countries. Their wealth would be even greater if not for a struggling stock market and an underperforming S&P 500.

The 2025 edition of Forbes’ World’s Billionaires List set a new record, featuring an unprecedented 3,028 members. This marks the first time the list has surpassed the 3,000 threshold, further highlighting the rapid expansion of the ultra-wealthy class.

The collective net worth of these billionaires has surged to $16.1 trillion, reflecting a $2 trillion increase from 2024. Among them, the U.S. leads with an all-time high of 902 billionaires, while China and Hong Kong together host 516. Meanwhile, India is home to 205 billionaires.

The staggering $16.1 trillion amassed by this elite group is difficult for many to comprehend. To put this into perspective, their total wealth exceeds the gross domestic product (GDP) of every country except the U.S. and China.

Additionally, three individuals—Elon Musk, Mark Zuckerberg, and Jeff Bezos—have crossed the $200 billion milestone. Their immense fortunes rival the economic output of entire nations: Elon Musk’s $342 billion is comparable to Finland’s GDP, Mark Zuckerberg’s $216 billion surpasses Algeria’s, and Jeff Bezos’ $215 billion exceeds Hungary’s.

Growing Wealth Disparities Amid Economic Struggles

The sharp $2 trillion increase in billionaire wealth during 2024 underscores the widening gap between the ultra-rich and the rest of society. According to Oxfam, 204 new billionaires emerged last year, averaging nearly four new members every week. The organization predicts that within the next decade, at least five individuals will achieve trillionaire status.

The data further reveals that approximately 60% of billionaire wealth is derived from inheritance, monopoly control, or nepotism, rather than from entrepreneurial ventures. This suggests that a significant portion of the wealth held by the ultra-rich is passed down rather than self-made.

While billionaires continue consolidating financial power, economic struggles persist for the average individual. Many Americans report living paycheck to paycheck, while poverty levels have remainedlargely unchanged since the 1990s.

“The capture of our global economy by a privileged few has reached heights once considered unimaginable,” Amitabh Behar, international executive director at Oxfam, stated in a press release. “Not only has the rate of billionaire wealth accumulation accelerated—by three times—but so too has their power.”

Stock Market Declines Slow Wealth Growth

Billionaires would have amassed even greater fortunes if not for declining stock values. The financial markets have weighed heavily on the wealth of some of the richest individuals, particularly those whose businesses have suffered from consumer backlash and political entanglements.

Elon Musk, the world’s wealthiest individual, has been significantly impacted by the stock market’s downturn. Tesla’s stock declined by 4% after the company reported a 13% drop in sales this year. This follows a disastrous first quarter in 2025, during which Tesla’s stock plummeted by 36%, marking its worst performance since 2022. The decline erased approximately $156 billion from Musk’s net worth.

Tesla’s struggles have been attributed to several factors, including Musk’s controversial role in the U.S. government, as well as consumer protests and boycotts that have dampened sales. Meanwhile, President Donald Trump recently indicated that Musk’s Department of Government Efficiency (DOGE) may be disbanded before completing its planned 130-day tenure. Additionally, Trump’s tariffs on imported vehicles could further hurt Tesla’s business, especially as China continues to dominate the electric vehicle (EV) industry. Fortune reached out to Tesla for a statement regarding these challenges.

However, market struggles have not been limited to entrepreneurs facing public scrutiny.

During the initial60 days of Trump’s presidency, the S&P 500 dropped by 7%, the Dow Jones Industrial Average fell by 6%, and the Nasdaq declined by 10%. The market’s instability has led Wall Street’s most optimistic analysts to revise their expectations downward. Following the first quarter’s turbulence, strategists at Goldman Sachs, Societe Generale, and Yardeni Research all lowered their year-end projections for the S&P 500.

Some of the world’s wealthiest individuals have suffered massive financial losses due to the stock market’s decline. Between late January and March, Jeff Bezos saw his net worth shrink by $29 billion, Sergey Brin lost $22 billion, while Bernard Arnault and Mark Zuckerberg each forfeited$5 billion. Collectively, billionaires who attended Trump’s inauguration are estimated to have lost a combined $209 billion.

Despite these setbacks, the wealth of the ultra-rich remains at historically high levels. With billionaires continuing to consolidate economic influence, the gap between the world’s elite and the average worker grows ever wider.

Indian Rupee Expected to Erase Recent Gains and Approach Historic Low, Analysts Say

April 2, 2025 Staff ReporterMoney 0

The Indian rupee is projected to give up nearly all of the gains it has made against the U.S. dollar in the past two months and fall back toward its historic low within the next year, according to a Reuters survey of 36 foreign exchange analysts.

Over the last two months, the partially convertible rupee has strengthened by approximately 3%, breaking a five-month losing streak and achieving its largest monthly gain since November 2018. This recent appreciation has been supported by a weaker dollar and a renewed influx of foreign investment in Indian equities.

However, most analysts surveyed in the latest Reuters poll believe that the rupee’s recovery against the dollar will be temporary. Their forecasts are based on slowing economic growth and expectations that the dollar will not weaken much further in the coming months.

Additionally, the Reserve Bank of India’s anticipated interest rate cuts—expected to total 75 basis points, marking the shortest easing cycle on record—are likely to put additional mild downward pressure on the rupee, the analysts noted.

According to the poll, the rupee is expected to decline 1.9% to 87.18 per dollar within the next three months. Over the following six months, it is projected to trade at 87.50 and eventually depreciate by 2.6% to 87.80 by the end of March 2026.

“The rupee has appreciated due to an unexpected slide in the broad dollar index and year-end inflows. The fundamental view is still of weakness, especially on account of potentially higher U.S. tariffs that can hurt exports and warrant a weaker currency,” stated Dhiraj Nim, an FX strategist at ANZ.

“Beyond the tariff-related adjustment, the path for the USD/INR could gradually trend higher. There is no merit in letting the currency appreciate meaningfully, especially given the need to recoup lost foreign exchange reserves,” he further explained.

The analysts in the poll indicated that the rupee’s short-term outlook will be influenced by U.S. President Donald Trump’s anticipated reciprocal tariffs on key trading partners, set to be introduced on April 2. The potential impact of these tariffs on India’s exports and overall economic growth, which is already slowing, remains a significant concern.

Trump has previously identified India as having the highest average tariff rates among the United States’ major trading partners.

Michael Wan, a senior currency analyst at MUFG, highlighted that the main factor driving expectations for a weaker rupee is the likelihood that India’s economic growth will underperform current market forecasts.

“We think markets are underpricing the risks of reciprocal tariffs on India right now. While India is generally more domestically-oriented to begin with, reciprocal tariffs, if raised to a meaningful level, will still have a negative impact on India’s growth prospect in 2025,” he said.

Indians Have Days Left to Maximize RBI’s Remittance Limit Before FY Ends

March 31, 2025April 1, 2025 Staff ReporterMoney 0

Indian residents looking to remit funds abroad under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS) have only a few days left to take advantage of the full limit for the current financial year. By remitting $250,000 before March 31, 2025, and another $250,000 at the start of the next fiscal year, individuals can send a total of $500,000 abroad within days.

Understanding the LRS Limit and Its Uses

Under the RBI’s LRS, every resident Indian, including minors (with guardian approval), can remit up to $250,000 per financial year for various permissible transactions, including:

✔ Buying international stocks

✔ Purchasing overseas property

✔ Funding a child’s foreign education

✔ Meeting medical expenses abroad

At the current exchange rate of ₹86 per US dollar, this translates to approximately ₹2.15 crore per person in outward remittances per fiscal year.

Rising Investments in Foreign Assets

A growing number of Indians are investing abroad, with data from October 2024 showing a 78% year-on-year increase in overseas equity and debt investments under LRS. Many are diversifying their portfolios by purchasing US stocks through international brokerage platforms. The process involves:

1️⃣ Opening an international trading account

2️⃣ Converting INR to USD

3️⃣ Completing KYC and LRS formalities

4️⃣ Transferring funds to a foreign bank account

5️⃣ Investing in global markets

New RBI Rule on Unused Forex

For those who have already sent money abroad under LRS, a crucial new RBI rule mandates repatriation of unused foreign exchange. As per the rule effective August 24, 2022, any unspent or unused forex must be surrendered to an authorized dealer within 180 days of receipt, realization, or return to India.

Final Chance to Utilize This Year’s LRS Limit

To maximize remittance benefits, individuals should complete transfers before March 31, 2025. By doing so, they can leverage the LRS limit again in early April, effectively doubling their total remittance capacity over a short period.

Advanced Economies Surpass Gulf Nations as Top Sources of Remittances to India: RBI Report

March 30, 2025 Staff ReporterMoney 0

A recent Reserve Bank of India (RBI) report reveals that advanced economies such as the United States and the United Kingdom have overtaken Gulf nations as the primary sources of remittances to India.

According to the study, titled Changing Dynamics of India’s Remittances – Insights from the Sixth Round of India’s Remittances Survey, India’s total remittances more than doubled, rising from $55.6 billion in 2010-11 to $118.7 billion in 2023-24. The RBI predicts that this figure will continue to grow, potentially reaching $160 billion by 2029.

Key Findings of the 6th Round of the Remittances Survey

Dominance of Advanced Economies: Remittances from the US and the UK nearly doubled to 40% of total inflows in FY24, up from 26% in FY17. Specifically, the UK’s share surged from 3% in FY17 to 10.8% in FY24.
US as the Leading Source: The US became the top contributor in FY21 with a 23.4% share, which increased to nearly 28% in FY24.
Emerging Players: Singapore’s contribution reached 6.6% in FY24, the highest since FY17, when it stood at 5.5%. Australia also emerged as a key contributor, accounting for 2.3% of remittances.
Declining Share of Gulf Nations:
- The UAE’s contribution fell from 27% in FY17 to 19.2% in FY24.
- Remittances from Saudi Arabia almost halved, dropping from 11.6% in FY17 to 6.7% in FY24.
- The overall share of Gulf Cooperation Council (GCC) nations (UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain) declined to 38% in FY24, down from 47% in FY17.

Top Recipient States

Maharashtra remained the top recipient, receiving 20.5% of remittances in 2023-24, though this was a decline from 35.2% in 2020-21.
Kerala’s share rose from about 10% to 19.7% over the same period.
Tamil Nadu ranked third with 10.4%, followed by Telangana (8.1%) and Karnataka (7.7%).
Haryana, Gujarat, and Punjab saw increased remittances, but their share remained below 5% each.

Shift in Migration Patterns Driving the Change

The shift in remittance sources reflects a broader transformation in Indian migration patterns, with skilled professionals favoring developed countries over the Gulf.

1. Stronger Job Markets in Advanced Economies

High-paying jobs in the US, UK, Canada, and Australia attract skilled Indian professionals in sectors such as finance, medicine, and technology.
Post-Covid US job market recovery led to increased remittances from Indian professionals.
The UK-India Migration and Mobility Partnership simplified work visa processes, contributing to a surge in Indian migration to the UK from 76,000 in 2020 to 250,000 in 2023.
Canada’s Express Entry and Australia’s immigration system prioritize skilled workers, offering higher wages and boosting remittances.

2. Declining Job Prospects in the Gulf

Many Indian migrants returned from the Gulf during Covid-19 and later relocated to advanced economies for better job opportunities.
Economic diversification and automation reduced demand for low-skilled Indian labor, particularly in the construction sector.
Nationalization policies like Saudi Arabia’s Nitaqatand the UAE’s Emiratization prioritize local workers, further limiting job opportunities for migrants.

3. Changing Migration Trends by Region

South Indian states (Kerala, Tamil Nadu, Andhra Pradesh, Telangana) are now sending more migrants to the US, UK, Canada, and Australia instead of the Gulf.
North Indian states (Uttar Pradesh, Bihar, Rajasthan) continue to send large numbers of workers to the Gulf due to lower educational attainment, which limits access to skilled jobs in developed nations.

4. Rise in Education-Driven Migration

The preference for higher education in Canada, the UK, and Australia has contributed to higher remittances from these countries.
Canada hosts 32% of Indian students abroad, followed by the US (25.3%), the UK (13.9%), and Australia (9.2%).

Digital Transactions Powering Remittances

The Rupee Drawing Arrangement (RDA) remains the dominant channel for inward remittances, followed by direct Vostro transfers and fintech platforms.
Digital remittances now account for 73.5% of total transactions in 2023-24, reflecting a shift toward more efficient and transparent money transfers.

Conclusion

The transformation in India’s remittance sources highlights a shift from low-skilled labor migration to skilled professional migration to advanced economies. With stronger job markets in countries like the US, UK, Canada, and Australia, along with growing education-driven migration, remittances from these nations are expected to continue rising. Meanwhile, declining opportunities and restrictive policies in the Gulf have led to a shrinking share of remittances from the region.

Bank of America to Appoint Vikram Sahu as India Country Executive

March 27, 2025 Staff ReporterMoney 0

Bank of America Corp is preparing to name Vikram Sahu as the new country executive for its India operations, according to an internal memo reviewed by Reuters.

Sahu, who currently serves as the head of global equity research and is based in New York, will succeed Kaku Nakhate in the role.

As per the memo, Sahu is expected to relocate to India in the second quarter of the year to take charge of the bank’s India franchise.

Nakhate, who has led Bank of America’s India business for 15 years, will continue to serve as the chief executive officer of the bank’s India-regulated entity until the Reserve Bank of India (RBI) grants formal approval for Sahu’s appointment.

When approached for a statement, a spokesperson for Bank of America in India declined to comment.

Federal Reserve Holds Interest Rates Steady Amid Uncertainty Over Trump’s Economic Policies

March 21, 2025March 24, 2025 Staff ReporterMoney 0

The Federal Reserve opted to keep interest rates unchanged on Wednesday as central bank officials assess the impact of President Donald Trump’s aggressive economic policies.

The decision, announced at the end of the Fed’s two-day monetary policy meeting, indicates that officials are awaiting clear signs that inflation is moving toward their 2% target or that the economy is slowing more than anticipated—two scenarios that could prompt rate cuts.

According to the latest economic projections released Wednesday, officials still anticipate lowering borrowing costs twice this year. However, eight officials now foresee either one or no rate cuts in 2024, compared to only four who held that view in December.

During a post-meeting press conference, Fed Chair Jerome Powell acknowledged the uncertainty facing American businesses and consumers, much of it linked to what he described as the Trump administration’s “turmoil.”

“It remains to be seen how these developments affect future spending and investment,” Powell said.

For now, the Fed’s benchmark borrowing rate remains between 4.25% and 4.5%. Powell noted that holding rates steady allows policymakers to monitor how Trump’s sweeping policy changes—such as tariffs, mass deportations, and a shrinking federal workforce—affect the U.S. economy.

In recent speeches, Fed officials have emphasized their willingness to adjust interest rates in either direction based on economic data.

Wednesday’s decision marks the second consecutive time the central bank has maintained borrowing costs.

Projections released by the Fed suggest the economy will be weaker than previously expected this year, with inflation running higher than anticipated.

As Trump’s administration pursues significant structural changes, Fed officials see the U.S. economy trending toward “stagflation”—a troubling mix of sluggish or negative growth and rising inflation. Whether the country enters a full-blown stagflationary period, last seen in the 1970s, remains uncertain.

All 12 voting Fed officials supported Wednesday’s decision to hold rates steady, though Fed Governor Christopher Waller dissented on the separate decision to slow the pace of reducing the central bank’s balance sheet.

Powell on Trump’s Economic Policies

Trump’s economic policies pose a major challenge for the Fed due to their broad and uncertain effects. During the press conference, Powell faced numerous questions about how the Fed is factoring in the president’s policy shifts.

Trump’s tariffs could fuel inflation and dampen economic growth, while his immigration crackdown may create labor shortages in key industries. His mass layoffs of federal employees could push some local economies into recession, but his deregulation efforts and extension of 2017 tax cuts might spur growth. The overall impact of Trump’s policies on growth, inflation, and the labor market remains unclear.

Powell noted that Trump’s tariffs contributed to the Fed’s higher inflation projections for this year, though he acknowledged the difficulty in determining exactly how much inflation is attributable to the trade war.

Following the Fed’s announcement, Trump urged policymakers to cut interest rates as tariffs take effect.

“The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy,” Trump wrote on Truth Social, referring to April 2—when reciprocal tariffs are set to go into effect—as “Liberation Day in America.”

Earlier this month, Powell reiterated that the Fed would be guided by economic data rather than forecasts. He pointed to signs of a slowdown in consumer spending.

A Strong Labor Market Offsets Economic Concerns

Despite concerns about consumer spending, the labor market remains a pillar of strength for the economy.

In February, the unemployment rate stood at 4.1%, with employers adding 151,000 jobs. Weekly jobless claims, often an early indicator of labor market shifts, remain at historically low levels.

Powell highlighted the labor market’s resilience as a key factor supporting the economy. However, he cautioned that any unexpected deterioration could prompt the Fed to resume rate cuts sooner.

“Labor market conditions are solid,” Powell said.

When asked about the risk of a recession, Powell downplayed concerns, noting that while some economists have raised their odds of an economic downturn, the risk remains moderate.

“Forecasters have generally raised—a number of them have raised—their possibility of a recession somewhat. But still at relatively moderate levels,” Powell said. “If you go back two months, people were saying that the likelihood of a recession was extremely low. So it has moved, but it’s not high.”

America’s Economic Mood and Its Impact on Spending

While economic data remains strong, sentiment surveys indicate a growing pessimism among businesses and consumers—a trend Powell acknowledged during Wednesday’s press conference.

Trump’s policy agenda has already influenced “soft data” measures, such as consumer and business sentiment surveys. However, Powell noted that the relationship between sentiment and actual economic activity is not always clear.

“There are times people are saying very downbeat things about the economy and then going out and buying a new car,” Powell remarked.

Despite the strong labor market, Americans are increasingly concerned about inflation. The University of Michigan’s latest consumer survey showed rising long-term inflation expectations. If these expectations continue to climb, the Fed may be forced to reconsider its stance on interest rates.

During Trump’s first trade war in 2018, inflation expectations were a major factor in the Fed’s decision to consider rate hikes, according to declassified policy documents known as the “teal book.”

Powell, however, suggested that long-term inflation expectations remain stable, citing data from the New York Fed.

The Michigan consumer survey for March recorded the largest month-over-month jump in five-to-ten-year inflation expectations since 1993. Even so, Powell dismissed concerns over the recent spike in short-term inflation expectations.

“You would expect that expectations of inflation over the course of a year would move around because conditions change,” he said. “And in this case, we have tariffs coming in. We don’t know how big. There are so many things we don’t know.”

Looking Ahead

The Fed’s decision to keep rates unchanged reflects a cautious approach amid uncertainty over Trump’s economic policies.

With the economy showing mixed signals—strong employment but slowing consumer spending—central bankers are navigating a complex landscape. Inflation remains a key concern, especially as Trump’s tariffs roll out.

As the year progresses, the Fed will closely monitor economic data to determine whether rate cuts are necessary. The path ahead remains uncertain, with Trump’s policies introducing new variables into an already delicate economic environment.

India’s Wealthy Population Sees Steady Growth, Billionaire Count Surges

March 11, 2025 Staff ReporterMoney 0

India’s high-net-worth individual (HNWI) population, defined as those possessing assets exceeding $10 million, experienced a six percent rise in 2024, reaching a total of 85,698, according to global property consultant Knight Frank. The recently published ‘Wealth Report 2025,’ unveiled on Wednesday, sheds light on the country’s expanding wealth sector, projecting the HNWI population to grow further to 93,753 by 2028.

India’s continuous economic expansion has played a pivotal role in the increasing number of wealthy individuals. The steady rise in the affluent population can be attributed to robust economic performance, growing investment prospects, and a rapidly developing luxury market. The report underscores India’s emergence as a key player in global wealth generation, further solidifying its economic stability.

The billionaire population in India has also witnessed a significant surge, rising to 191 in 2024 from 165 in the preceding year. A remarkable 26 individuals joined the billionaire ranks in 2024, a sharp contrast to just seven new billionaires in 2019, highlighting the rapid pace of wealth accumulation in the country.

India has now positioned itself as the third-largest global hub for billionaire wealth, with the collective net worth of Indian billionaires estimated at $950 billion. The United States remains at the top of the list with a total billionaire wealth of $5.7 trillion, followed by Mainland China, which holds a combined billionaire wealth of $1.34 trillion.

Shishir Baijal, Chairman & Managing Director of Knight Frank India, emphasized the factors fueling this surge in wealth. “India’s wealth surge is driven by entrepreneurial growth, global market integration, and emerging industries,” he stated. He also pointed out that the expansion in wealth is not just limited to an increase in numbers but is also reflected in changing investment patterns. India’s affluent class is increasingly spreading their investments across real estate, global equities, and alternative asset classes, diversifying their portfolios beyond traditional avenues.

As India continues to assert itself on the global economic stage, its role in wealth creation is set to expand even further. Baijal predicts that over the next decade, India will play an even more significant role in shaping the international financial landscape, further strengthening its position in the world economy.

New York City Tops List as World’s Wealthiest City in 2024

March 4, 2025March 5, 2025 Staff ReporterMoney 0

New York City has once again secured its position as the richest city in the world, according to the Henley & Partners’ World’s Wealthiest Cities Report 2024. The city boasts an impressive 349,500 millionaires, along with 675 centi-millionaires—individuals with a net worth of at least $100 million—and 60 billionaires, solidifying its status as the wealthiest place on Earth.

The city’s enormous economy, valued at approximately $1 trillion in 2023, is largely driven by Wall Street. Home to the New York Stock Exchange (NYSE) and Nasdaq, these financial hubs are recognized as the world’s largest stock markets. The securities sector alone employs over 181,000 individuals and contributes billions of dollars in tax revenue. Several major financial giants, including JPMorgan Chase, Citigroup, Morgan Stanley, and Goldman Sachs, have their headquarters in Manhattan, reinforcing the city’s reputation as a financial powerhouse.

In addition to finance, New York serves as a global leader in various other industries such as media, technology, fashion, healthcare, and real estate. The city’s growing tech sector, often referred to as “Silicon Alley,” continues to expand, with major corporations like Google, Amazon, and Facebook increasing their footprint. The fashion industry remains a key player in New York’s economy, employing approximately 180,000 individuals. Additionally, renowned media companies such as The New York Times, NBC, and Condé Nast are headquartered in the city, further solidifying its role as a global media hub.

Luxury real estate in New York remains among the most expensive worldwide. Fifth Avenue has been officially ranked as the most expensive shopping street, while residential rental prices in the city are the highest in the United States. Despite the high cost of living, New York continues to be a preferred destination for the wealthiest individuals globally.

With a population exceeding 8.2 million and more than 800 languages spoken throughout the city, New York remains a magnet for global talent, investment, and ambition. Its enduring appeal as a center of opportunity ensures its continued dominance as the world’s ultimate financial and cultural capital.

Atlanta Fed GDP Tracker Signals Economic Contraction Amid Trade and Policy Uncertainty

March 3, 2025March 4, 2025 Staff ReporterMoney 0

The latest update from the Atlanta Federal Reserve’s GDP tracker suggests that the U.S. economy is heading toward a 1.5% contraction in the first quarter, a stark shift from the 2.3% growth forecasted just days ago. This also represents a sharp decline from the previous quarter when the economy expanded by 2.3%. Several economic indicators have begun signaling trouble as businesses and consumers prepare for the impact of Trump’s tariffs and reductions in federal jobs.

Less than two weeks ago, the U.S. economy appeared to be on stable ground, but a series of troubling indicators have since emerged. The most dramatic development occurred on Friday when the Atlanta Fed’s GDPNow tracker revised its first-quarter estimate from 2.3% growth on February 19 to a 1.5% contraction.

This sudden shift also marks a notable downturn from the fourth quarter’s 2.3% economic growth, which had reinforced the notion of “American exceptionalism.” The U.S. had previously appeared resilient compared to other major economies like China and Europe, both of which were experiencing economic slowdowns.

According to the Atlanta Fed, this abrupt reversal is due to new data on the U.S. trade deficit, which acts as a drag on growth, along with declining consumer spending.

On Friday, the trade balance in goods revealed a record $153.3 billion deficit for January, driven by a surge in imports totaling $34.6 billion, while exports increased by only $3.3 billion.

Although most of former President Donald Trump’s tariffs have yet to take effect, businesses and consumers have been stockpiling imported goods since the election to avoid potential price increases. The latest durable goods orders report, which showed an increase, may also be evidence of a rush to purchase imports before costs rise further.

Despite this spike in imports, overall demand appears to be weakening. Separate data released on Friday showed that Americans cut their spending in January at the fastest rate in four years. While unseasonably cold weather may have played a role, Trump’s policies—particularly plans to significantly reduce federal spending and shrink the workforce—have also contributed to the decline.

“Increased uncertainty surrounding trade, fiscal and regulatory policy is casting a shadow over the outlook,” said Lydia Boussour, a senior economist at EY, in an interview with the Associated Press.

Several other economic indicators are flashing warning signs. Jobless claims increased last week as layoffs linked to DOGE impacted the labor market, pending home sales fell to record lows, and consumer confidence declined due to concerns over tariff-driven inflation.

Additionally, regional Federal Reserve surveys have reported a deteriorating economic outlook, along with declining plans for capital investments.

However, a single quarter of economic contraction does not necessarily indicate a recession. The widely accepted definition of a recession involves two consecutive quarters of negative growth, though the official determination is made by the National Bureau of Economic Research, often retroactively.

Economists at JPMorgan have revised their first-quarter growth projection downward from 2.25% to 1.5%. They anticipate that while economic activity was weak in January, a rebound in February and March could offset some of the decline.

“For now, we are not inclined to hit the panic button,” JPMorgan economists said on Friday, pointing out that labor market data does not currently align with an economy in decline.

The U.S. Labor Department is set to release weekly jobless claims data on Thursday, followed by the February employment report on Friday.

Apollo Management Chief Economist Torsten Slok commented in a note on Saturday that the U.S. economy is likely to experience a “modest stagflationary shock” but should avoid a recession.

“In other words, DOGE and tariffs combined are a mild temporary shock to the economy that will put modest upward pressure on inflation and modest downward pressure on GDP,” Slok wrote.

Maha Kumbh 2025: A Historic Confluence of Faith, Culture, and Economic Growth

February 28, 2025 Staff ReporterReligion, Money 0

Prayagraj made history as Maha Kumbh 2025 concluded with an unprecedented scale of participation. The religious gathering attracted over 66 crore devotees from around the world, making it the largest human congregation ever recorded. While Maha Kumbh remained a profound spiritual and cultural event, it also played a key role in economic activities, with transactions reaching an estimated Rs 3 lakh crore (USD 360 billion). The financial impact of the event was felt far beyond Prayagraj, extending to areas within a 150-kilometre radius, highlighting its dual significance as a spiritual and economic powerhouse.

The religious intensity at Maha Kumbh 2025 was unmatched, as millions immersed themselves in the sacred waters at the Sangam, where the Ganga, Yamuna, and the mythical Saraswati rivers converge. All 13 Akharas actively participated, following time-honored traditions through grand processions and religious discourses. Among the major attractions was the Kinnar Akhara, associated with the Juna Akhara, which became a symbol of inclusivity within spiritual traditions.

Reflecting on the event’s importance, Swami Avdheshanand Giri Ji Maharaj, Acharya Mahamandaleshwar of Juna Akhara, remarked, “Mahakumbh is not just a gathering; it is a divine call to humanity to cleanse the mind and soul. The presence of millions of devotees reaffirms our faith in Sanatan Dharma.”

A Major Economic Catalyst: Rs 3 Lakh Crore in Transactions and Employment Growth

Beyond its religious and cultural significance, Maha Kumbh 2025 played a crucial role in boosting Uttar Pradesh’s economy. Government estimates suggest that the event generated Rs 54,000 crore in revenue, while nearly 60 lakh individuals benefited from direct and indirect employment in tourism, hospitality, transportation, and local trade. The influx of visitors led to an extraordinary demand for accommodation, food services, and religious merchandise.

Economist Dr. Arvind Mishra from Allahabad University highlighted the festival’s economic impact, stating, “Mahakumbh 2025 has demonstrated that large religious events are not just about faith but also about economic growth. Small businesses, vendors, and even large corporations have seen a significant boost in revenue.”

Financial Transactions Surge

To facilitate financial transactions for pilgrims, 16 banks set up branches within the mela grounds. These banks managed transactions amounting to Rs 37 crore, with the State Bank of India (SBI) recording the highest number of deposits. Officials noted that many devotees opted to deposit cash rather than withdraw funds.

“We saw a huge volume of cash deposits, indicating that people wanted to keep their money safe while they participated in the religious festivities,” an SBI official at Mahakumbh Nagar explained.

Additionally, 55 ATM booths, including 50 mobile ATMs, were installed throughout the mela site. However, due to the increasing preference for digital payments, ATM usage was lower than anticipated. Some ATMs required refilling only after a week, showcasing the shift towards cashless transactions.

An International Spectacle: Delegates from 76 Nations

Maha Kumbh 2025 was not just an Indian affair but a globally recognized event, with delegations from 76 countries participating. The festival’s growing international appeal was evident as the King of Bhutan, along with various ministers and dignitaries, took the sacred dip at the Sangam. Nepal alone sent over 50 lakh pilgrims to Prayagraj, while more than two lakh devotees arrived from 27 other countries.

Among the international visitors was Laurene Powell Jobs, philanthropist and wife of Apple co-founder Steve Jobs, who expressed her awe at the experience, stating, “This is a spiritual experience like no other. The energy, devotion, and sheer magnitude of this event are truly humbling.”

Notable Attendees: Political and Business Leaders Join the Festivities

The grand scale of Maha Kumbh 2025 attracted India’s top leadership, including the President, Vice President, Prime Minister, and numerous Union Ministers. Renowned industrialists like Gautam Adani and Mukesh Ambani also attended, alongside Bollywood star Akshay Kumar.

For the first time ever, two state governments—Uttar Pradesh and Madhya Pradesh—held their Council of Ministers meetings at the Maha Kumbh venue, marking a historic moment in governance. Additionally, the Prayagraj Municipal Corporation conducted its official meeting within Mahakumbh Nagar, further emphasizing the festival’s importance.

Infrastructure and Technological Upgrades

Under the leadership of Yogi Adityanath, Maha Kumbh 2025 was executed with meticulous planning, making it the most organized edition yet. Spanning 4,000 hectares and divided into 25 sectors, the festival grounds were designed to accommodate the record-breaking number of pilgrims. The infrastructure developments included:

12 kilometres of paved ghats
1,850 hectares of parking facilities
31 pontoon bridges
Over 67,000 streetlights
1.5 lakh public toilets
25,000 accommodation units

The Uttar Pradesh government allocated ₹7,000 crore for the event, while the central government’s investment of ₹15,000 crore significantly contributed to Prayagraj’s transformation.

Technological Integration: AI and Digital Innovation

Technology played a pivotal role in improving logistics and the overall pilgrim experience. The Digital Mahakumbh initiative introduced a dedicated website and mobile application offering real-time updates and AI chatbot assistance. A partnership with Google ensured smooth navigation throughout Mahakumbh Nagar, while the Digital Khoya-Paya Kendra helped reunite thousands of lost individuals with their families, revolutionizing crowd management.

Maha Kumbh 2025’s Lasting Impact

As Maha Kumbh 2025 concluded, it left behind a lasting legacy that extended beyond its religious importance. The festival reaffirmed faith and unity while simultaneously reshaping Prayagraj’s economic landscape. By creating employment opportunities for millions and setting new standards for large-scale religious gatherings, it reinforced the idea that faith and economic progress can coexist.

Swami Chidanand Saraswati, President of Parmarth Niketan, captured the essence of the event, stating, “Maha Kumbh 2025 has shown the world that faith and development can go hand in hand. This is a celebration of spirituality, sustainability, and economic progress.”

The grandeur of Maha Kumbh 2025 showcased how religious events, when backed by visionary leadership and meticulous planning, can act as catalysts for economic growth. This edition set a benchmark that will inspire future events, ensuring that spirituality remains a foundation for both enlightenment and prosperity.

Warren Buffett’s Secret to Success: The Power of an Inner Scorecard

February 26, 2025February 28, 2025 Staff ReporterMoney 0

Warren Buffett is widely regarded as one of the most accomplished investors in history, yet he does not gauge his success by his immense fortune. Instead, he follows what he calls an “inner scorecard”—a personal framework of values and principles that shape his decisions, regardless of external opinions.

The Decision Everyone Must Make

Unlike most people who measure their achievements based on external markers such as wealth or status, Buffett believes that true success stems from staying committed to one’s own values. According to him, focusing on how others perceive you can lead to prioritizing their approval over what genuinely matters.

Buffett’s philosophy extends beyond financial gains; he emphasizes three key values that serve as the foundation for a meaningful life and a strong career: integrity, honesty, and generosity. These principles, he argues, are essential for long-term fulfillment and professional success.

The Impact of Integrity

For Buffett, integrity is an absolute necessity. He has famously stated, “In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don’t have the first one, the other two will kill you.”

But why is integrity so crucial? It fosters trust. When individuals consistently do what is right, they earn the confidence of clients, colleagues, and business partners. This trust leads to stronger relationships, increased opportunities, and doors opening in unexpected ways.

The Benefits of Honesty

Honesty is more than just a moral virtue—it is also a way to improve efficiency. Being truthful eliminates the need to cover up mistakes, fabricate half-truths, or constantly worry about being exposed. It allows individuals to stay focused, work more effectively, and approach tasks with greater confidence.

Furthermore, honesty enhances communication. When people are transparent, they avoid unnecessary disputes and misunderstandings, making teamwork and leadership significantly smoother.

How Generosity Fuels Success

Although generosity may not directly increase wealth, its positive ripple effects can enhance one’s career, reputation, and overall happiness.

Research indicates that giving to others leads to increased happiness. Studies have shown that individuals experience greater joy when they spend money on others rather than on themselves. This sense of fulfillment, in turn, motivates them to continue being generous.

Additionally, generosity strengthens personal and professional relationships. According to research published in the Journal of Personality and Social Psychology, acts of giving help people feel more connected, fostering deeper social bonds. Strong relationships create opportunities for collaboration, mentorship, and growth, ultimately contributing to success.

The Key Lesson

Buffett’s inner scorecard revolves around defining success from within rather than seeking external validation. Integrity, honesty, and generosity are invaluable tools for building both a lasting career and a meaningful life. Instead of chasing approval, focus on developing your character and values. If Warren Buffett’s approach has proven effective for him, it may very well work for you, too.

Rupee Depreciation Raises Costs for Indian Students Abroad

February 23, 2025 Staff ReporterMoney 0

The steady depreciation of the Indian rupee against the US dollar over the past few months has put financial pressure on students who are either planning to study overseas or are already pursuing their education abroad.

Bloomberg data shows that in the last six months, the rupee has fallen nearly 4 percent, weakening from Rs 83.75 per USD in August 2024 to Rs 86.95 per USD as of February 18, 2025. The rupee had even dropped to 87.9563 per dollar on February 10 before making a partial recovery.

Impact of Rupee Depreciation

The falling value of the rupee translates to higher expenses for Indian students studying in foreign countries, as tuition fees, accommodation, and daily living costs all become more expensive. “Even a slight fluctuation can inflate their annual expenses by lakhs, making budgeting a daunting task,” explains Sudarshan Motwani, Founder and CEO of BookMyForex.com.

Eela Dubey, Co-founder of EduFund, emphasizes the hidden financial burden that currency depreciation imposes. “Rupee depreciation acts as hidden inflation for Indian students aspiring to study abroad, significantly increasing the cost of education, even if universities do not raise tuition fees.” This means that even if a university maintains its tuition fees in USD, Indian students still pay more in INR because of currency fluctuations.

For example, over the last four years, the tuition fee for an MBA at NYU Stern has risen by 3.53 percent annually in USD terms. However, for Indian students, the real increase is 6.79 percent per annum when adjusted for the rupee’s depreciation—almost twice the inflation rate in INR.

“Rupee depreciation has far-reaching consequences, affecting not just tuition fees but also everyday expenses like groceries, travel, and accommodation, which are all increasing in cost,” says Rahul Subramaniam, Co-Founder of Athena Education.

Prashant Bhonsle, Founder and CEO of Kuhoo Edufintech, highlights another financial challenge. “The unpredictability of currency fluctuations makes it difficult for students and parents to budget for foreign education, worsening the challenge of financing. Furthermore, a weakening rupee leads to increased costs and higher debt burden, disproportionately affecting middle-class families,” he states.

Ways to Mitigate Rupee Depreciation

To better manage their finances abroad, students should adopt a three-pronged approach—using forex cards for daily spending, wire transfers for tuition payments, and keeping an emergency cash reserve, advises Motwani. Forex prepaid cards, loaded at a fixed exchange rate, help protect against rupee depreciation. For example, if a student loads a forex card at Rs 86.75 per USD, it shields them from potential losses if the rupee weakens further to 87.47 per USD.

In addition, forex cards eliminate foreign transaction fees and Dynamic Currency Conversion (DCC) charges, making them a more cost-effective alternative to INR-denominated credit or debit cards, which are subject to exchange rate fluctuations.

Traditional banks and money changers often impose hefty mark-ups of 2 to 8 percent. Therefore, opting for zero-markup forex services can save students significant amounts.

Motwani also advises students to open a local bank account in their host country for better financial management. Meanwhile, parents who are financially savvy can hedge against currency fluctuations by using forward contracts to reduce potential losses.

To further cut costs, Subramaniam suggests students reduce discretionary spending and consider shared housing. He also points out that working part-time can help students supplement their income. “Many international students already adopt this strategy, taking on part-time work, internships, or teaching assistant roles to supplement their finances while studying abroad,” he explains.

By adopting these financial strategies, students can navigate international expenses with more confidence and efficiency.

Hedging Against Rupee Volatility

Experts suggest that a well-rounded financial plan for studying abroad should include investments, education loans, and scholarships.

One way to hedge against currency fluctuations is by investing in USD-denominated assets, notes Dubey. For individual investors, passive US ETFs offer a simple and effective method to counter exchange rate risks while keeping pace with education inflation.

For those who prefer to invest in Indian markets due to limited capital or tax considerations, diversified equity mutual funds with strong long-term growth potential can help offset both rupee depreciation and rising education costs.

Although exploring external financing options like loans and scholarships is advisable, Dubey warns against relying entirely on them, stressing the importance of personal savings as a financial cushion.

“Choosing lenders with lower interest rates, flexible repayment options, and customized loan structures can significantly reduce financial strain,” Bhonsle adds.

A Weak Rupee Benefits Students Working Abroad

While a depreciating rupee creates challenges for Indian students studying abroad, it can actually be advantageous for those who secure jobs in countries with stronger currencies like the US, UK, or Europe.

“A weaker rupee actually works in favor of students working abroad, making their loan repayments more manageable due to the currency advantage,” says Bhonsle. However, he cautions that careful planning is necessary to maximize this benefit.

Despite the financial pressures caused by a weakening rupee, Indian students can minimize its impact through smart planning, diversified financial management, and strategic choices regarding study destinations.

Indian Rupee Hits Record Low Amid U.S. Tariff Concerns, RBI Intervenes

February 15, 2025 Staff ReporterMoney 0

The Indian rupee fell to a record low on Monday as concerns over potential U.S. trade tariffs triggered losses across regional currencies, prompting likely intervention from the Reserve Bank of India (RBI), traders reported.

The rupee slid to 87.95 per U.S. dollar in early trading, breaching its previous all-time low of 87.5825 recorded last week. By 9:40 a.m. IST, the currency was quoted at 87.9050, marking a 0.5% decline for the day.

State-run banks were observed selling U.S. dollars before the local spot market opened, an action traders attributed to RBI intervention aimed at stabilizing the currency. While the rupee was poised to weaken further past the 88 level, these interventions helped it hold above this psychological threshold.

On Sunday, U.S. President Donald Trump announced plans to impose fresh 25% tariffs on steel and aluminum imports and introduce reciprocal tariffs on all countries matching their respective trade levies. This news drove the dollar index higher to 108.3, while Asian currencies weakened between 0.1% and 0.6%.

Since Trump’s victory in the U.S. elections last November, the rupee has depreciated by approximately 4.5%. The decline has been exacerbated by slowing economic growth and persistent foreign capital outflows.

Foreign investors have offloaded more than $7.5 billion from Indian stocks and bonds on a net basis so far this year, adding pressure on the rupee.

Amid these headwinds, the RBI has frequently intervened to curb excessive currency volatility. However, these efforts have strained India’s foreign exchange reserves, which are hovering near an 11-month low.

“We believe the risks to INR over coming months are skewed towards relative weakness. If the broad USD were to weaken, we believe the downside in USD/INR would be mitigated by active RBI FX purchases,” Nomura noted in a report.

Indian Rupee Nears 88 Against US Dollar Amid Market Pressures and RBI’s Stance on Exchange Rate

February 11, 2025 Staff ReporterMoney, News 0

The Indian Rupee edged closer to the 88-mark against the US dollar on February 10, intensifying selling pressure in equity markets and bringing attention to the Reserve Bank of India (RBI) Governor’s stance of not targeting a specific exchange rate level or band.

The domestic currency closed at 87.48 against the US dollar, slightly weaker than its previous session’s closing of 87.43. Earlier in the day, the rupee fell to a new record low of 87.9563 against the greenback, following the announcement of new tariff plans by U.S. President Donald. It opened at 87.9175 against the dollar, reflecting continued weakness.

During a media briefing after the Monetary Policy Committee (MPC) meeting last week, RBI Governor Sanjay Malhotra reaffirmed the central bank’s position on the rupee, stating, “Our stated objective is to maintain orderliness and stability, without compromising market efficiency.”

Despite this, the rupee’s sharp decline of over 3% since December 2024 has led to speculation in the currency market that the central bank may be easing its grip on the currency, a contrast to the approach of Malhotra’s predecessor. The Indian rupee has been facing sustained selling pressure and hitting fresh lows, largely due to the strengthening of the US dollar.

“…Our interventions in the forex market focus on smoothening excessive and disruptive volatility rather than targeting any specific exchange rate level or band. The exchange rate of the Indian Rupee is determined by market forces,” Malhotra added, reinforcing the RBI’s hands-off approach in directly influencing currency levels.

The RBI Governor also pointed out that while the Indian economy remains robust and resilient, it has not been completely immune to global economic pressures. “At the Reserve Bank, we have been employing all tools at our disposal to face the multi-pronged challenges,” he said, indicating that the central bank is actively managing various risks.

Despite the rupee’s depreciation, the RBI’s presence in the foreign exchange market has helped maintain relative stability. Data indicates that between April and November 2024, the central bank sold gross dollars worth $195.568 billion, keeping the rupee’s exchange rate within a range of 84-86 per US dollar during this period. This intervention has made the Indian rupee one of the least volatile currencies among its Asian counterparts.

According to Bloomberg data, the rupee has weakened by 3.2% since Malhotra took over as RBI Governor. The decline has been driven by multiple factors, including a widening trade deficit, rising crude oil prices, and a surge in the US dollar index after the Federal Reserve signaled fewer interest rate cuts in 2025. Additionally, India’s slow economic growth in the second quarter of FY25 and foreign investor outflows from equity markets have contributed to the rupee’s downward trajectory.

The depreciation of the rupee has been relatively modest compared to other global currencies. In the first nine months of FY25 (until January 6, 2025), the rupee weakened by 2.9%, performing better than several other major currencies. The Canadian Dollar, South Korean Won, and Brazilian Real saw sharper declines of 5.4%, 8.2%, and 17.4%, respectively, over the same period, according to the Economic Survey 2025.

The survey attributed the rupee’s depreciation in 2024 largely to the broad-based strengthening of the US dollar, which gained momentum amid geopolitical tensions in the Middle East and uncertainty surrounding the US presidential election. These factors have led to a global shift in currency valuations, with emerging market currencies, including the rupee, facing increased pressure.

Between October 2024 and January 2025, the Indian rupee was the least volatile among Asian and global currencies against the US dollar. Data further indicated that the rupee ranked as the fourth-least volatile currency in Asia and the second-least volatile against major global currencies, including the Japanese Yen, British Pound, Euro, and Chinese Yuan, during this period.

While concerns over the rupee’s depreciation persist, the RBI’s strategy remains focused on managing volatility rather than setting a rigid exchange rate target. The central bank’s interventions aim to prevent excessive fluctuations while allowing market forces to play a dominant role in determining the currency’s value.

US Treasury Ordered to Stop Minting Pennies as Trump Cites Cost-Cutting

February 10, 2025 Staff ReporterMoney 0

US President Donald Trump has directed Treasury Secretary Scott Bessent to halt the production of one-cent coins, commonly known as pennies. The announcement was made on Trump’s Truth Social platform, where he framed the decision as a budget-saving measure.

“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump stated in his post, emphasizing the move as a step toward reducing unnecessary government spending.

The decision follows a post on X last month from Elon Musk’s unofficial Department of Government Efficiency (Doge), which highlighted the financial burden of producing pennies. The cost of minting these coins has been a subject of debate in the U.S. for years.

“This is so wasteful,” Trump added in his post. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”

According to the U.S. Mint’s 2024 annual report, the production and distribution of a single one-cent coin cost 3.69 cents—far exceeding its face value. Despite multiple attempts by government officials and members of Congress in the past to phase out the penny, such proposals have not been successful.

Critics of the penny argue that the coin, which is made primarily of zinc with a copper coating, is an unnecessary drain on resources and taxpayer money. On the other hand, supporters contend that keeping the penny in circulation helps stabilize prices and aids charitable fundraising efforts.

The U.S. is not the first country to consider eliminating its lowest denomination coin. Canada discontinued its one-cent coin in 2012, citing the cost of production and its diminishing purchasing power. Similarly, in the UK, no new coins were minted in 2024 due to the declining use of cash and an adequate supply already in circulation.

Although the UK Treasury has stated that one-penny and two-penny coins are not being removed from circulation, fewer new coins have been produced in recent years. With more people shifting to cashless transactions, the UK has experienced extended periods in which no new 2p coins were minted, and 20p coins have also seen intermittent production halts.

India’s Union Budget 2025: Tax Reforms for NRIs and Foreign Investment Incentives

February 3, 2025 Staff ReporterMoney 0

On February 1, Indian Finance Minister Nirmala Sitharaman presented the Union Budget for 2025, introducing key tax revisions for non-resident Indians (NRIs) and incentives aimed at attracting foreign investors.

A significant aspect of this year’s budget was the tax reductions. For NRIs, one of the notable proposals included raising the threshold for tax collection at source (TCS) on remittances under the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS) from Rs.7 lakh ($8,400) to Rs.10 lakh ($12,000). Furthermore, the delay in TCS payment up to the deadline for filing statements is now proposed to be decriminalized.

These exemptions hold particular importance since India receives the highest volume of remittances globally, with a substantial share coming from its diaspora in the Gulf countries and the United States.

Another key proposal in the budget aimed at NRIs involves changes in the taxation of long-term capital gains (LTCG). The government has suggested aligning LTCG tax rates for Foreign Institutional Investors (FIIs) with those applicable to resident taxpayers on the transfer of capital assets. “It is proposed to bring parity between the taxation of capital gains on transfer of capital assets between residents and non-residents being Foreign Institutional investors, on their income by way of long-term capital gains on transfer of securities,” Sitharaman stated in her Budget speech.

To boost investments, the government has also proposed the introduction of a presumptive taxation framework for foreign entities that provide services to Indian firms involved in establishing or running electronics manufacturing plants. Additionally, a safe harbour provision is being introduced to ensure tax certainty for non-resident entities that store components for supplying specific electronics manufacturing units.

Another major reform in the budget pertains to foreign direct investment (FDI) in the insurance sector. The permissible FDI limit is set to be increased from 74% to 100%. However, this will only apply to companies that invest the entire premium amount within India.

In an effort to make India more attractive for global investors under the ‘first develop India’ initiative, the government has also decided to revise and enhance the existing model for Bilateral Investment Treaties (BIT). Sitharaman emphasized that the new framework would be more investor-friendly while ensuring that the conditions and regulatory safeguards associated with foreign investments are reviewed and simplified.

China and UK Witness Record Exodus of Millionaires in 2024

January 31, 2025 Staff ReporterMoney 0

China and the United Kingdom are experiencing an unprecedented outflow of millionaires, with both nations set to lose more wealthy individuals than any other country this year. According to the Henley Private Wealth Migration Report, which tracks the net migration of high-net-worth individuals (HNWIs), thousands of affluent individuals are departing these countries. Several factors are driving this trend, with significant implications for their respective economies.

China’s Millionaire Exodus

China is projected to lose 15,200 millionaires in 2024, marking a continuation of a trend that had slowed during pandemic-related travel restrictions. Once those limitations were lifted, wealthy Chinese individuals resumed their movement abroad. In 2023, approximately 13,800 HNWIs left China, with the United States, Canada, and Singapore being the primary destinations. This year, these same countries remain top choices for Chinese millionaires seeking stability and economic opportunity.

Several factors contribute to this outflow. Concerns about China’s economic trajectory and rising geopolitical tensions have led many affluent individuals to seek safer environments for themselves and their wealth. As uncertainties persist in the domestic market and relations with Western nations become more strained, an increasing number of wealthy Chinese are looking for alternative destinations where their assets and businesses can thrive.

UK’s Millionaire Migration

The United Kingdom is expected to see 9,500 millionaires leave in 2024, ranking second only to China in terms of net HNWI departures. This marks a sharp contrast to the country’s historical status as a hub for the wealthy. For years, London attracted affluent individuals from Europe, Asia, Africa, and the Middle East.

However, this trend has reversed, with many millionaires now opting for alternative destinations such as the United Arab Emirates (UAE). The Henley report notes that while this migration shift has been occurring for some time, it has accelerated due to several key factors, including Brexit, the energy crisis triggered by the war in Ukraine, and rising inflation.

Key Factors Behind the Wealth Exodus

The departure of millionaires from both China and the UK is influenced by a combination of economic and political factors.

For China, the primary reasons include:

Slowing economic growth and concerns about long-term stability.
Increasing geopolitical tensions and worsening relations with Western nations, creating an uncertain business environment.
Government crackdowns on various industries and heightened regulatory scrutiny, which have made many wealthy individuals uneasy.

In the UK, the driving forces behind the exodus include:

Brexit-related economic and political uncertainty, which has reduced confidence among investors and business leaders.
The potential for higher taxes on the wealthy, including Labour Party leader Keir Starmer’s proposal to end preferential tax treatment for non-domiciled residents if elected.
The approaching general election, with potential policy changes targeting affluent individuals leading them to consider relocation.

UAE: A Preferred Destination for Millionaires

While China and the UK are experiencing a mass exodus of millionaires, countries like the UAE are benefiting from an influx of wealthy individuals. The UAE has emerged as a top destination for millionaires due to several key advantages:

Tax benefits: The country offers no personal income tax and has a favorable corporate tax structure, making it highly attractive for affluent individuals.
Business opportunities: The UAE’s strategic location, excellent connectivity, and thriving business environment make it an appealing destination for entrepreneurs and investors.
Quality of life: The country boasts a high standard of living, safety, and access to luxury amenities, drawing in millionaires seeking a better lifestyle.

Economic Impact of Millionaire Migration

The loss of millionaires is often seen as a warning sign of deeper economic issues within a country. Henley & Partners highlight that millionaire migration trends serve as a critical indicator of a nation’s financial health. A substantial outflow suggests serious challenges and may indicate declining economic stability.

Wealthy individuals are typically the first to leave when conditions become unfavorable because they possess the financial flexibility to relocate. Their departure can have a significant impact on the domestic economy, as they take their investments, businesses, and spending power with them.

Moreover, millionaire migration benefits host countries by injecting large amounts of foreign exchange revenue into their economies. For example, when a millionaire moves with $10 million in assets, the receiving country effectively gains $10 million in economic value, providing a considerable financial boost. Conversely, the loss of such individuals can have negative economic consequences for their home countries.

India’s Position in the Global Wealth Migration Trend

India ranks third globally in terms of millionaire migration, with an estimated 4,300 wealthy individuals expected to leave the country in 2024. However, this figure marks an improvement compared to 2023, when 5,100 millionaires departed.

Despite this trend, India’s economy continues to generate new millionaires at a high rate, helping to offset the losses. The Henley report states, “Indian millionaires often depart the subcontinent in search of a better lifestyle, safer and cleaner environments, and access to more premium health and education services.”

While India is still experiencing high-net-worth outflows, the rate of migration has slowed slightly compared to previous years. However, the reasons behind millionaire departures remain consistent, as affluent individuals continue to seek better opportunities and living conditions abroad.

Conclusion

The large-scale migration of millionaires from China and the UK highlights the growing economic and political challenges these nations face. While China’s outflow is driven primarily by economic concerns and regulatory crackdowns, the UK’s millionaire exodus is fueled by Brexit-related uncertainties, tax policies, and political shifts.

At the same time, countries like the UAE are attracting these wealthy individuals by offering favorable tax structures, business opportunities, and high living standards. The global movement of millionaires serves as a key indicator of shifting economic power dynamics, with significant consequences for both the departing and receiving nations.

Currency Performance in 2024: The U.S. Dollar Dominates Amid Global Economic Struggles

January 11, 2025 Staff ReporterMoney 0

In 2024, numerous currency pairs saw unexpected declines, with the U.S. dollar strengthening significantly against major currencies. One of the most notable trends was the euro nearing parity with the dollar. This shift highlighted the strength of the U.S. economy, which stood in stark contrast to the sluggish growth in the Eurozone and subdued economic activity in China. Furthermore, the prospect of President Trump’s return to the White House added fuel to the dollar’s rally. His administration’s proposed tariffs and the renewed optimism about the U.S. economy played a significant role in driving the dollar higher.

According to data from TradingView, the graphic illustrating the performance of major currencies against the U.S. dollar in 2024 provides a detailed look at these shifts. Most currencies weakened as the U.S. dollar surged, largely due to the effects of elevated interest rates in the U.S.

Global Currency Returns in 2024

The majority of major currencies saw declines against the dollar in 2024, reflecting the broader trend of a stronger U.S. dollar. Below is a detailed table showing the performance of different currencies:

Country	Currency	2024 Return
U.S.	U.S. Dollar Index	7.1%
Great Britain	Great British Pound	-1.7%
Mexico	Mexican Peso	-2.0%
China	Chinese Yuan	-2.8%
India	Indian Rupee	-2.8%
South Africa	South African Rand	-3.7%
Eurozone	Euro	-6.2%
Switzerland	Swiss Franc	-7.3%
Canada	Canadian Dollar	-7.9%
Australia	Australian Dollar	-9.1%
Japan	Japanese Yen	-10.3%
New Zealand	New Zealand Dollar	-11.4%
South Korea	South Korean Won	-12.4%
Russia	Russian Ruble	-18.6%
Brazil	Brazilian Real	-21.6%

As one of the top-performing currencies against the dollar, the British pound only fell by 1.7% in 2024. This decline was relatively moderate, especially given the overall strength of the dollar. The resilience of the U.K. economy played a crucial role in limiting the pound’s drop. Expectations regarding U.K. and U.S. interest rates largely moved in tandem, which helped keep the exchange rates between the two currencies more stable. Bond yields generally influence demand for currencies that offer similar risk and return profiles, which was evident in the case of the pound and the dollar.

On the other hand, the Canadian dollar faced significant challenges, plunging to a multi-year low of $0.69 USD by December. This decline came amid concerns over potential tariffs. Canada, one of the largest trading partners of the U.S., saw its currency weaken as the U.S. administration proposed a 25% tariff on Canadian exports. The trade between the two countries is heavily influenced by energy commodities, and any disruption in this sector had an outsized effect on the Canadian dollar.

The Brazilian real, however, was one of the worst performers in 2024. It fell to historic lows against the U.S. dollar, driven by investor concerns over the country’s growing government deficit and persistently high inflation. The real’s depreciation was a direct result of these economic issues, which caused significant uncertainty among international investors.

Looking ahead, the Brazilian real is expected to face continued pressure. The country’s public debt remains unsustainable, and tight credit conditions are not helping the situation. In December, the Brazilian central bank raised interest rates to 12.25% in an attempt to curb inflation. However, inflationary pressures remain high, and some analysts predict that rates could increase further, possibly reaching 14.25% by March, marking the highest levels seen in the past eight years.

The U.S. dollar dominated global currency markets in 2024, while most major currencies weakened significantly against it. The resilience of the U.K. economy helped limit the British pound’s losses, while Canada’s currency struggled due to concerns over potential tariffs. The Brazilian real faced the most significant challenges, plunging to record lows amid economic instability. As we move into 2025, the outlook for many currencies remains uncertain, with global economic challenges continuing to exert pressure on currency markets.

The Richest Thrive in 2024 Amid AI Boom, Economic Growth, and Trump’s Victory

January 4, 2025January 6, 2025 Staff ReporterBusiness, Money 0

The wealthiest individuals worldwide experienced a remarkable surge in their fortunes in 2024, driven by the artificial intelligence (AI) boom, interest rate cuts by the Federal Reserve, Donald Trump’s return to the presidency, and a strong economic outlook that invigorated the stock market.

Collectively, the 10 richest people amassed over $500 billion in additional wealth, propelling their combined net worth to slightly above $2 trillion. This figure closely rivals the market values of major corporations like Amazon and Alphabet, Google’s parent company, valued at $2.3 trillion.

Expanding the scope to include the top 20 billionaires listed on the Bloomberg Billionaires Index, their combined net worth soared by $700 billion, surpassing $3 trillion by year’s end—a figure nearly equivalent to Microsoft’s $3.1 trillion market capitalization.

Elon Musk Leads with Unparalleled Wealth Gains

Elon Musk, the CEO of Tesla and SpaceX, spearheaded the wealth accumulation trend with an extraordinary gain of $203 billion in 2024. This increase elevated his personal fortune to $432 billion by December 31.

Earlier in December, Musk’s net worth briefly peaked at $486 billion, following Tesla’s stock reaching a record high and SpaceX’s valuation soaring to $350 billion. During this brief period, Musk’s year-to-date gain of $257 billion exceeded the total net worth of Amazon founder Jeff Bezos, the second wealthiest individual.

Other Billionaires Enjoy Substantial Gains

Musk was not alone in reaping enormous financial rewards. Several tech industry leaders witnessed significant wealth expansions as their companies’ valuations surged.

Mark Zuckerberg, CEO of Meta, Nvidia’s Jensen Huang, Oracle’s Larry Ellison, and Jeff Bezos each gained between $60 billion and $80 billion.
Michael Dell, the founder of Dell Technologies, saw his wealth grow by $45 billion.
Google cofounders Larry Page and Sergey Brin added $42 billion and $38 billion to their fortunes, respectively.

Although the technology sector accounted for much of the wealth increase, other industries saw substantial gains as well. Walmart founder Sam Walton’s three heirs—Jim, Alice, and Rob Walton—each saw their net worth rise by more than $38 billion, enabling all three to join the exclusive $100 billion club.

Meanwhile, Warren Buffett, chairman of Berkshire Hathaway, added $22 billion to his fortune. By the end of 2024, his wealth reached $142 billion. Buffett’s diversified conglomerate, which includes businesses like Geico and significant stakes in Coca-Cola, continued to deliver robust returns.

Wealth Losses Among a Few Billionaires

Despite the widespread prosperity, not every billionaire fared well. A handful of the ultra-rich saw declines in their fortunes during 2024.

Bernard Arnault, founder and CEO of LVMH, experienced a notable drop in his wealth, which fell from its March peak of over $230 billion to $176 billion by December. This decline saw Arnault slip from the first to fifth position on the rich list.
Indian industrialist Mukesh Ambani, Mexican telecom mogul Carlos Slim, Indian infrastructure tycoon Gautam Adani, and L’Oréal heiress Françoise Bettencourt Meyers also faced reductions in their net worth, according to Bloomberg estimates.

Factors Driving the Surge in Wealth

The super-rich saw their wealth skyrocket largely due to the excitement surrounding AI and the pivotal roles companies like Nvidia, Tesla, and Microsoft play in this technological revolution. Investors bet heavily on these firms, anticipating significant profit growth as AI becomes more integral to various industries.

The Federal Reserve’s decision to lower interest rates also played a crucial role. After two years of aggressive rate hikes aimed at curbing inflation, the central bank pivoted to rate cuts in 2024. This shift made stocks more attractive compared to fixed-income assets like government bonds, while also fostering an environment conducive to corporate growth by encouraging borrowing and spending.

Another factor contributing to the stock market’s rally was Donald Trump’s election victory in November. The former president’s campaign promised pro-growth measures, including tax cuts and deregulation, which buoyed investor confidence.

Tesla, in particular, benefited from this optimism, as markets speculated that Elon Musk’s close relationship with Trump could yield advantages for the electric vehicle manufacturer.

A Record-Breaking Year

2024 will be remembered as a year of unprecedented wealth accumulation for the world’s richest individuals. With technology leaders at the forefront and favorable economic conditions bolstering asset prices, the gains of the wealthiest underscore the powerful interplay of innovation, policy, and market forces in shaping the global economy.

Minimum-Wage Workers in 21 States to See Pay Boost in the New Year

January 3, 2025January 6, 2025 Staff ReporterMoney 0

As the new year begins, minimum-wage workers in 21 states will see their paychecks increase, marking significant changes in labor laws. According to the Economic Policy Institute (EPI), a think tank specializing in economic research, these wage hikes will impact approximately 9.2 million workers, collectively raising pay by $5.7 billion in 2025.

In addition to these state-level increases, 48 cities and counties will implement higher minimum wages that exceed their state-mandated wage floors starting Tuesday. These adjustments aim to address inflation and cost-of-living concerns, providing much-needed relief to low-wage workers.

States Tackling Inflation with Wage Adjustments

California is among the 14 states increasing minimum wages to account for inflation. The state will raise its wage floor from $16 to $16.50 per hour. For full-time minimum-wage workers in these states, the annual pay increase is estimated to be around $420, according to EPI.

Meanwhile, five states will implement wage increases based on previously passed legislation, while Nebraska and Montana are making changes following voter-approved ballot measures. This trend underscores a growing recognition of the challenges faced by low-wage workers amidst rising costs of living.

EPI projects that by 2027, 19 states and Washington, D.C., will have a minimum wage of at least $15. Despite these advances, the federal minimum wage remains stagnant at $7.25 per hour—a rate unchanged for 15 years. The decreasing purchasing power of the dollar exacerbates the financial struggles of minimum-wage workers, particularly as expenses for necessities like groceries and housing continue to climb.

The Federal Minimum Wage and Poverty

The inadequacy of the federal minimum wage is starkly evident when compared to poverty thresholds. A full-time worker earning $7.25 per hour makes just $20 more annually than the poverty guideline for a single-person household. For those supporting children or other dependents, this income level often falls below the poverty line.

Research by Drexel University’s Center for Hunger-Free Communities in 2021 found that a “true living wage” sufficient to meet basic needs for food and housing ranges between $20 and $26 per hour, depending on the state. This highlights the significant gap between current wage standards and the income required for a decent quality of life.

Who Benefits Most from Wage Increases?

Women, Black workers, and Hispanic workers are among those most positively affected by the new wage increases. Women constitute nearly 60% of workers receiving raises, according to EPI. Furthermore, over 11% of those benefiting from higher wages are Black, while almost 40% are Hispanic.

EPI emphasized the broader societal benefits of these changes, stating, “The January 1 increases show that the minimum wage continues to be a powerful tool for combating racial and gender wage disparities, supporting working families, and reducing poverty.”

However, the institute also noted that minimum-wage levels in some areas remain insufficient to keep pace with inflation and rising living costs. In Ohio, for example, the minimum wage will increase from $10.45 to $10.70 due to an inflation adjustment. Yet, the state has not enacted a significant minimum-wage hike since 2007, leaving many workers struggling to meet basic needs as costs for food and housing surge.

Economic Context and Voter Sentiments

High living costs, particularly for essentials such as food and housing, have been a significant concern for voters. These issues played a key role in shaping the political landscape during the 2024 elections. Many voters expressed dissatisfaction with the economy, which analysts cited as a contributing factor to President-elect Donald Trump’s reelection.

This outcome came despite reassurances from economic experts, including Federal Reserve Chairman Jerome Powell, that the U.S. economy was performing well as 2024 concluded. The disconnect between macroeconomic indicators and individual financial realities underscores the importance of policies aimed at addressing wage stagnation and affordability issues.

While the latest minimum-wage increases offer some relief to millions of workers, the challenges posed by inflation, rising living costs, and stagnant federal wage standards persist. These developments highlight the ongoing need for targeted measures to support low-income workers and ensure economic equity.

Rupee at Record High in Real Effective Terms Despite Dollar Weakness

December 29, 2024January 1, 2025 Staff ReporterMoney 0

The Indian rupee is hitting new lows against the US dollar, but its value has surged to an all-time high in “real effective” terms.

According to the Reserve Bank of India (RBI), the rupee’s Real Effective Exchange Rate (REER) index reached a record level of 108.14 in November, showing a 4.5% appreciation this calendar year. The REER is a measure that compares the rupee’s value not only against the US dollar but also against other global currencies. This index accounts for inflation differences between India and its trading partners and is calculated as a weighted average of the rupee’s exchange rates with 40 currencies, covering around 88% of India’s annual trade.

The rupee’s REER, using 2015-16 as the base year and assigning currency weights based on trade shares, initially declined from 105.32 in January 2022 to 99.03 in April 2023. However, it has been on an upward trend since then, climbing to 107.20 in October and peaking at 108.14 in November.

Why the Divergence in Rupee Trends?

The apparent contradiction—where the rupee weakens while simultaneously strengthening—can be attributed to the US dollar’s movements over the last three months, especially following Donald Trump’s victory in the US presidential elections on November 5.

During the period from September 27 to December 24, the dollar index futures, which measure the dollar’s value against six other major currencies (euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc), rose from 99.88 to 108.02. Much of this increase occurred after November 5, when the index was at 102.98.

In the same timeframe, the rupee depreciated from 83.67 to 85.19 against the dollar. However, it appreciated against other major currencies: from 93.46 to 88.56 against the euro, 112.05 to 106.79 against the British pound, and 0.5823 to 0.5425 against the Japanese yen.

Challenges for Exporters

A REER value above 100 indicates an overvalued rupee, meaning its exchange rate has not depreciated enough to balance out India’s higher domestic inflation. This overvaluation makes imports cheaper but reduces the competitiveness of Indian exports in global markets.

Effectively, while the rupee has weakened against the dollar, it hasn’t depreciated as much as the dollar has strengthened relative to other currencies. This strengthening of the dollar has been driven by Trump’s policy outlook, which includes proposed tariff hikes, particularly on Chinese imports, deficit-funded tax cuts, and plans for mass deportations of undocumented immigrants. If implemented, these policies could fuel inflation in the US, compelling the Federal Reserve to maintain a tight monetary stance.

The tightening monetary environment in the US has led to a surge in 10-year government bond yields, which rose from 3.75% to 4.59% between September 27 and December 24. This, in turn, has triggered capital outflows from countries like India to the US, further pressuring the rupee.

A Broader Perspective

Since the beginning of 2022, the rupee has generally weakened against major currencies. It declined from 74.30 to 85.19 against the dollar, 84.04 to 88.56 against the euro, and 100.30 to 106.79 against the pound. The only exception was the Japanese yen, where the rupee strengthened from 0.6454 to 0.5425.

Despite this depreciation against most currencies, the REER index for the rupee has risen. This paradox is mainly due to India’s inflation rate outpacing those of its major trading partners.

Assuming the rupee was “fairly” valued in 2015-16, when the REER base was set at 100, any value above 100 indicates overvaluation. This suggests that the rupee’s exchange rate has not fallen enough to compensate for India’s higher inflation. As a result, imports have become cheaper, and exports less competitive.

RBI’s Stance on the Rupee

The RBI seems to be tolerating a depreciation of the rupee, at least against the dollar, to address these imbalances. Analysts point to the central bank’s efforts to allow market forces to guide the currency, thereby improving the competitiveness of Indian exports.

“The rupee is highly overvalued today, making imports into India cheaper and exports less cost-competitive,” experts note. This overvaluation underscores the challenges faced by exporters, particularly in a global environment where the dollar’s dominance affects currency markets worldwide.

In summary, while the rupee’s REER highlights its relative strength in real effective terms, its simultaneous depreciation against the dollar reflects the broader pressures of global economic dynamics, driven significantly by US policies and market expectations.

Palantir Technologies: The S&P 500’s Best-Performing Stock of 2024

December 25, 2024December 29, 2024 Staff ReporterMoney 0

The most impressive stock performer on the S&P 500 this year isn’t Nvidia or Tesla, but Palantir Technologies, a defense-focused, data-driven company led by eccentric billionaire Alex Karp. Known for its AI capabilities, Palantir has surged amidst the artificial intelligence boom and heightened expectations for defense spending.

A Record-Breaking Year

Palantir has emerged as the top-performing stock on the S&P 500 in 2024, boasting a remarkable 369% return year-to-date through Monday. Despite only joining the S&P 500 in September, much of its meteoric rise occurred in the last three months. This surge was fueled not only by the general market enthusiasm for AI-related stocks but also by heightened optimism regarding defense spending under Donald Trump’s incoming administration. Since Election Day, Palantir shares have soared 58%.

The company’s performance since its inclusion in the S&P 500 has been unparalleled. According to FactSet, its 166% rally during this period is unmatched by any other company on the index. This growth has catapulted Palantir’s market value from $37 billion to an astonishing $180 billion—a nearly ninefold increase from its $20 billion valuation during its 2020 initial public offering.

While Nvidia has also delivered impressive gains, climbing 172% this year as the leader in semiconductor technology for generative AI, it falls behind Palantir’s extraordinary ascent.

Broader Industry Success

Beyond the S&P 500, Palantir is the third-best-performing stock in 2024 among public companies with a market capitalization exceeding $50 billion. The company trails only Applovin, a marketing software firm with a 756% gain, and MicroStrategy, a prominent bitcoin investor with a 477% increase.

What Drives Palantir?

Palantir specializes in AI-powered analytics, providing solutions for managing and interpreting large data sets. Bank of America analyst Mariana Perez Mora noted earlier this year that the company benefits from “rapidly growing demand for AI platforms in both commercial and government end-markets.”

While Palantir is best known for its work with the Department of Defense, its client roster also includes prominent companies such as General Mills and United Airlines. In the third quarter alone, government contracts accounted for $408 million of the company’s $726 million in revenue.

Valuation Concerns

Despite its substantial market capitalization, Palantir’s relatively modest quarterly revenue of under $1 billion raises eyebrows. This disparity makes Palantir the most expensive stock on the S&P 500 based on its price-to-sales ratio. At 67, its ratio is nearly double that of the next-highest company, Texas Pacific Land Corporation, which stands at 37. By comparison, the S&P 500’s median price-to-sales ratio is a mere 3.

However, Perez Mora predicts that Palantir’s “dominant position in the AI-powered software market” will continue to support revenue growth and improve profitability over time.

Controversies Surrounding Palantir

Although Palantir is highly regarded for its advanced technology and impressive profit margins, the company has faced criticism, particularly from human rights groups. Ahead of its IPO, Palantir was scrutinized for its involvement with Immigration and Customs Enforcement (ICE). Critics linked Palantir’s data to raids targeting undocumented immigrants in the U.S.

In a 2020 statement, Karp defended the company’s work, stating that its analytics helped ICE identify “people in our country who are undocumented.” He also acknowledged public concerns, saying, “I sympathize with the legitimate concern about what happens on our border, how it happens, and what enforcement looks like.”

Leadership and Wealth

Palantir’s cofounders have significantly benefited from the company’s rise. Alex Karp, who serves as CEO, now boasts a net worth of $7.5 billion, placing him among the world’s 400 richest individuals. Fellow cofounder Peter Thiel, a long-time tech investor, has a fortune of $15 billion, ranking him as the 148th wealthiest person globally.

Meanwhile, the other two cofounders, Stephen Cohen and Joe Lonsdale, officially joined the billionaire ranks last month.

Political Divisions Among Leaders

Interestingly, Palantir’s leadership reflects divergent political ideologies. Karp, who describes himself as a supporter of “populist-left politics,” backed Vice President Kamala Harris in the recent election. In contrast, cofounders Thiel and Lonsdale are prominent advocates for right-wing politics.

Following Trump’s victory in November, Lonsdale celebrated with the comment, “Daddy’s home.” Over the last decade, Thiel has donated tens of millions of dollars to Republican causes. Reflecting on Thiel’s vocal support for Trump in 2016, Karp told The New York Times this summer, “Because Peter had supported Mr. Trump, it was actually harder to get things done” at Palantir. Thiel did not endorse any candidate in the current election cycle.

A Unique Corporate Culture

Palantir’s close-knit and unconventional culture has also drawn attention. In a conversation with hedge fund billionaire Stanley Druckenmiller at a JPMorgan Chase event earlier this month, Karp described the company as “a rare cult with no sex and very little drugs, and we’re not poisoning anyone.”

Conclusion

Palantir Technologies’ extraordinary rise in 2024 reflects a combination of factors: the booming AI sector, increased defense spending expectations, and the company’s strong foothold in both government and commercial markets. However, its high valuation and controversial history highlight the challenges that lie ahead for this AI-driven powerhouse.

Dow Jones Slumps to Longest Losing Streak Since 1978 Despite Strong Year-to-Date Gains

December 19, 2024December 23, 2024 Staff ReporterMoney 0

The U.S.’ Dow Jones Industrial Average has entered its longest losing streak since 1978, raising concerns among investors amid an otherwise positive year for stocks. Tuesday’s drop was largely attributed to UnitedHealth Group’s poor performance, though the index continues to show robust long-term gains.

The Dow Jones fell 270 points, or 0.6%, on Tuesday, marking the ninth straight trading day in the red—a stretch that began on December 5. According to FactSet, this is the first time since February 1978 that the Dow has experienced such a prolonged decline. Back in 1978, the index was trading at about 750 points, less than 2% of today’s level, which exceeds 43,000.

During this nine-day losing streak, the Dow has dropped 3.5%, translating to a loss of 1,560 points. UnitedHealth Group, a major healthcare insurance stock, was Tuesday’s worst performer among the Dow’s 30 constituents, falling $13 or 2.6% to hit its lowest level in six months. Other notable companies experiencing losses included banking giant Goldman Sachs and artificial intelligence leader Nvidia, both of which fell by at least 1%.

The spotlight on UnitedHealth’s struggles is not new. As the Dow’s worst performer during this losing streak, UnitedHealth’s stock has plummeted 21% over nine days. This decline is nearly double that of the next-worst performer, Nvidia, which dropped 11%. Other companies such as Goldman Sachs, Home Depot, Sherwin-Williams, and Chevron have also seen declines of at least 4% during this period.

UnitedHealth’s challenges are tied to multiple factors, including concerns over how policies from President-elect Donald Trump and his nominee for Health and Human Services secretary, Robert F. Kennedy Jr., may impact the healthcare industry. Additionally, the stock has faced backlash following the fatal shooting of Brian Thompson, the chief executive of UnitedHealth’s insurance subsidiary. CNBC reports that UnitedHealth’s stock accounted for about 40% of the Dow’s decline in December through Monday.

Since its inception in 1928, the Dow has served as a key barometer of the performance of 30 leading American companies from various industries. However, it differs from other indexes, such as the S&P 500 and Nasdaq, as it calculates its performance based on a stock’s share price rather than the company’s market capitalization. This methodology gives outsized influence to higher-priced stocks. For example, Goldman Sachs and UnitedHealth, despite ranking as the 47th- and 17th-largest American companies by market cap, respectively, are the two most heavily weighted stocks in the Dow. This can lead to discrepancies between the Dow and market cap-weighted indexes like the S&P 500.

Despite the current losing streak, the Dow remains up more than 18% year-to-date, factoring in reinvested dividends, and is trading within 4% of its all-time high reached just before this downturn began. Since Election Day, the index has gained nearly 3%. Furthermore, while December has brought a 2.7% loss for the Dow, such monthly declines are not uncommon. Over the past three years, the index has experienced 11 months with larger losses.

In conclusion, the Dow’s ongoing slide, fueled in part by UnitedHealth’s sharp decline, highlights vulnerabilities in the healthcare sector and broader market sentiment. Nevertheless, the index’s solid performance over the year underscores its resilience amid short-term fluctuations. As investors digest these developments, many will keep an eye on broader trends and potential policy shifts that could impact key sectors in the future.

India’s Wealthiest Soar as Collective Net Worth Hits $1.1 Trillion

December 16, 2024December 18, 2024 Staff ReporterBusiness, Money 0

India’s economic resurgence has propelled its wealthiest individuals to unprecedented heights, with the collective net worth of the top 100 billionaires surpassing $1.1 trillion for the first time. This milestone, fueled by a booming stock market and strong investor confidence, reflects the impact of Prime Minister Narendra Modi’s pro-growth policies following his re-election for a third term.

A Year of Exceptional Wealth Accumulation

In just one year, India’s richest added $316 billion to their combined wealth, marking a 40% increase. Remarkably, 80% of the list experienced financial growth, with 58 individuals gaining $1 billion or more. Leading the surge were six magnates who saw their fortunes grow by over $10 billion each, including Gautam Adani and Mukesh Ambani. Together, these two accounted for a substantial portion of the $120 billion growth seen among the top five.

The Top Three Billionaires: Defining India’s Economic Leadership

Mukesh Ambani retained his title as India’s wealthiest person, with a staggering net worth of $119.5 billion. As chairman of Reliance Industries, Ambani oversees a diverse empire spanning energy, telecom, and retail. His strategic decisions, such as announcing a bonus issue for investors during Diwali, bolstered investor confidence. Ambani also captured headlines with the extravagant celebration of his son Anant’s wedding, blending corporate success with Bollywood-style opulence.

Gautam Adani, despite facing challenges like a short-seller attack, made a powerful comeback to secure his position as India’s second-richest individual with $116 billion. Strategic placements of family members in leadership roles and a focus on infrastructure and energy sectors contributed to his $48 billion wealth increase, the highest gain in dollar terms.

Savitri Jindal achieved a historic milestone as India’s richest woman and third-richest individual overall, with a net worth of $43.7 billion. The O.P. Jindal Group matriarch exemplifies vision and resilience, with her son Sajjan Jindal making bold moves in the electric vehicle sector to secure the family’s legacy.

Sectoral Shifts: Where Wealth is Expanding

The pharmaceutical industry continues to drive significant wealth creation. Dilip Shanghvi of Sun Pharmaceutical Industries climbed to fifth place with a net worth of $32.4 billion, benefiting from global demand for skincare treatments. Similarly, the Mehta siblings of Torrent Pharmaceuticals doubled their wealth to $16.3 billion, highlighting the sector’s expanding international footprint.

Real estate fortunes surged, fueled by a boom in both residential and commercial property demand. Irfan Razack and his siblings, leading Prestige Estates Projects, saw extraordinary growth by expanding operations to Mumbai, the nation’s financial hub. Overall, wealth in the real estate sector grew by over $16 billion.

India’s renewable energy sector is also emerging as a key area for wealth creation. Surender Saluja, founder of Premier Energies, entered the billionaire club following a successful IPO of his solar panel and module manufacturing company, reflecting the sector’s transformative potential.

New Entrants to the Billionaire Club

The list of India’s top 100 billionaires welcomed four newcomers this year:

Mahima Datla, who heads vaccine giant Biological E, underscoring India’s leadership in biotechnology.

Harish Ahuja, founder of Shahi Exports, whose garments are favored by global fashion brands.

Partha Saradhi Reddy, the driving force behind Hetero Labs, a leader in generic drugs and active pharmaceutical ingredients.

Surender Saluja, whose solar energy enterprise aligns with India’s ambitions for a green economy.

Family Legacies and Generational Transitions

India’s storied business families remain pivotal to its economic fabric. This year saw a division of holdings within the Godrej family, with Adi and Nadir Godrej appearing separately from cousins Jamshyd and Smita Godrej. Six nonagenarians, including several patriarchs and matriarchs who have handed over control to younger generations, continue to feature on the list.

On the other end of the spectrum, 38-year-old Nikhil Kamath, co-founder of Zerodha, stands out as the youngest billionaire, symbolizing a new wave of tech-savvy entrepreneurs driving India’s economic transformation.

Rising Wealth Benchmark

The threshold to qualify for the billionaire list rose sharply to $3.3 billion, up from $2.3 billion the previous year. This steep increase pushed 11 individuals off the rankings, highlighting the intensifying competition among India’s ultra-rich.

Key Drivers of India’s Billionaire Boom

Investor confidence has been a significant factor in wealth creation, fueled by Modi’s government securing a third term. This political stability encouraged investments across various sectors.

Technology and innovation also played a pivotal role. India’s expanding IT sector, along with advancements in fintech, created lucrative opportunities for entrepreneurs and legacy businesses alike.

Additionally, a robust IPO market turned many entrepreneurs into billionaires overnight, showcasing the dynamism of India’s financial ecosystem.

Looking Ahead: The Future of India’s Billionaire Club

With a burgeoning middle class and increasing global integration, India’s economic trajectory suggests even greater heights for its wealthiest individuals. Industries like pharmaceuticals, technology, real estate, and renewable energy are expected to lead this growth.

As leaders like Mukesh Ambani and Gautam Adani continue to set the pace, a new generation of entrepreneurs is emerging, ready to redefine success in one of the world’s most dynamic economies. India’s billionaires are not just symbols of immense wealth but are key architects of an economic revolution that is poised to leave a lasting impact on the global stage.

Sam Altman to Donate $1 Million to Trump’s Inaugural Fund Amidst Tech Industry Support

December 14, 2024 Staff ReporterMoney, Technology 0

Sam Altman, CEO of OpenAI, is set to contribute $1 million from his personal finances to President-elect Donald Trump’s inaugural fund. This decision places Altman among a growing list of technology leaders who have recently pledged similar support. His spokesperson confirmed to The Hill that the donation would come from Altman’s personal resources, distinguishing it from contributions made by companies such as Mark Zuckerberg’s Meta and Jeff Bezos’ Amazon, which each donated $1 million on behalf of their organizations.

In a statement shared by his spokesperson on Friday, Altman expressed his confidence in Trump’s leadership, particularly in the realm of artificial intelligence. “President Trump will lead our country into the age of AI, and I am eager to support his efforts to ensure America stays ahead,” Altman stated.

The planned donation, originally reported by Fox News, comes as the tech industry increasingly looks to align itself with the incoming administration. While donations to inaugural funds are a longstanding tradition, some analysts interpret these contributions as strategic moves to secure favor with Trump, who is entering his second term. This is especially relevant given his evolving ties with prominent figures in the tech world, including billionaire entrepreneur Elon Musk.

Trump’s interactions with tech leaders have been complex and varied. His relationship with Zuckerberg, for instance, has been strained since Facebook banned Trump from the platform following the Capitol riot on January 6, 2021. Trump, in response, branded Facebook an “enemy of the people.” Similarly, Trump’s history with Amazon has been contentious. In 2019, Amazon accused the administration of bias in a legal dispute over a lucrative Pentagon contract, alleging that Jeff Bezos’ criticism of Trump influenced the decision.

Elon Musk’s relationship with Altman and OpenAI adds another layer of complexity to the narrative. Musk, a co-founder of OpenAI alongside Altman, has been vocal about his dissatisfaction with the organization’s shift from a nonprofit to a for-profit entity. Musk has accused Altman of persuading him to support OpenAI under the pretense that it would prioritize transparency and safety in AI development. Musk’s frustrations have culminated in an ongoing lawsuit against OpenAI, alleging a deviation from its original mission.

Despite these tensions, Altman remains optimistic about Musk’s intentions. Speaking at the New York Times DealBook conference earlier this month, Altman expressed his disappointment over the strained relationship but maintained his belief in Musk’s ethical judgment. “I believe pretty strongly that Elon will do the right thing and that it would be profoundly un-American to use political power to the degree that Elon would hurt competitors and advantage his own businesses,” Altman remarked.

Jeff Bezos, who also has a history of rivalry with Musk, echoed Altman’s sentiments at the same conference. As the owner of The Washington Post and aerospace company Blue Origin, Bezos has often clashed with Musk over business ventures. However, he emphasized his trust in Musk’s character, stating that he took Musk “at face value” and did not think Musk would misuse his influence to target competitors.

Musk appeared to affirm these views by sharing Altman’s and Bezos’ comments on social media. In a brief post last week, he wrote, “they are right,” signaling his intent to refrain from leveraging his political influence against industry rivals.

Altman, Bezos, and Musk each play pivotal roles in the tech industry, and their interactions with Trump are closely scrutinized. Altman’s substantial donation to Trump’s inaugural fund, coupled with his vocal support for the administration’s AI agenda, underscores the tech sector’s growing interest in shaping U.S. policy under Trump’s leadership. At the same time, the nuanced relationships among these influential figures highlight the challenges and opportunities at the intersection of politics and technology.

While some critics may view the tech industry’s overtures to Trump as a pragmatic alignment with power, others see it as part of a broader effort to navigate a rapidly changing landscape in both technology and governance.

Stocks Soar to Record Highs as November Jobs Report Fuels Optimism for Fed Rate Cut

December 8, 2024December 10, 2024 Staff ReporterMoney 0

Stocks reached unprecedented levels on Friday following the release of a stronger-than-anticipated November jobs report, which bolstered hopes that the Federal Reserve will lower interest rates at its upcoming meeting this month.

The S&P 500 gained 0.25 percent, and the Nasdaq Composite rose by 0.81 percent, both hitting all-time highs. The data revealed a robust rebound in the U.S. job market, with employers adding 227,000 positions in November. This was a substantial recovery from October, when only 36,000 jobs were created due to the impact of strikes and hurricanes. However, the unemployment rate ticked up slightly to 4.2 percent.

The Labor Department’s report offered reassurance to investors, indicating that October’s poor performance stemmed from temporary external disruptions rather than a deeper economic problem. This newfound confidence has led markets to assign an 88 percent probability of a Federal Reserve rate cut by a quarter percentage point at its meeting on December 18, according to the FedWatch tool.

The prospect of rate cuts sent stocks higher, benefiting Americans with 401(k) retirement accounts, which often track major stock indexes. Lindsay Rosner, head of multi-sector investing at Goldman Sachs Asset Management, commented on the developments, saying, “Data this morning was a Thanksgiving buffet with payrolls spot on, revisions positive, but unemployment ticking higher despite the participation rate falling. This print doesn’t kill the holiday spirit and the Fed remains on track to deliver a cut in December.”

Lower interest rates could ease borrowing costs for consumers, providing some relief for household budgets. Bret Kenwell, U.S. Investment Analyst at eToro, remarked, “The market still favors a rate cut from the Fed later this month and this report may not change that expectation. Had it shown blistering strength, then a discussion for keeping rates unchanged at the current meeting may have gained steam. As it is though, this report was better than expected but close enough to ‘in-line’ to keep the status quo intact – which calls for a 25 bps rate cut in mid-December.”

While the Federal Reserve’s benchmark rate does not directly control interest rates for loans, credit cards, and mortgages, it significantly influences them. Businesses typically benefit from lower rates, as borrowing becomes less costly, often resulting in stock market gains. Tom Porcelli, chief U.S. economist at PGIM Fixed Income, told Bloomberg TV, “This is a kind of number that will support the Fed cutting rates in December.” He also predicted that two or three additional cuts in the coming year are “completely reasonable.”

Since September, the Federal Reserve has reduced interest rates by 75 basis points as part of its easing cycle, bringing benchmark borrowing costs to between 4.5 and 4.75 percent. This follows a period of aggressive hikes between March 2022 and July 2023, when rates were elevated to decade-high levels.

These cuts are expected to affect various aspects of Americans’ financial lives. Credit card and personal loan rates are likely to decrease, offering relief to borrowers. However, how much rates will drop remains uncertain, as banks ultimately set Annual Percentage Rates (APRs), and any reductions may not be immediate.

On the other hand, the impact of rate cuts on the broader economy remains mixed. While economic growth continues at a steady pace, inflation persists above the Federal Reserve’s target of 2 percent. Additionally, policy uncertainty stemming from President-elect Donald Trump’s upcoming administration adds complexity to the outlook.

Business optimism surged following Trump’s electoral victory, driven by hopes for reduced regulations. However, his pledges to increase tariffs on imports and enforce mass deportations have raised concerns about potential price hikes and labor market disruptions.

Looking ahead, traders anticipate two more Federal Reserve rate cuts in 2025, with a possibility of a third before the year’s end. These expectations reflect ongoing efforts to balance economic expansion with inflation control, despite an uncertain political and policy environment.

As Porcelli noted, the Federal Reserve’s actions in the coming months could significantly influence borrowing costs and broader financial conditions. However, consumers and businesses alike will have to wait to see how these changes translate into tangible benefits.

Bitcoin Surges Amid Optimism for Pro-Crypto Policies Under Trump Administration

December 2, 2024December 3, 2024 Staff ReporterMoney 0

Bitcoin has soared to unprecedented levels following President-elect Trump’s victory, with the cryptocurrency market rallying in anticipation of favorable federal policies. The price of Bitcoin has neared $100,000, a rise exceeding 40% since Trump’s election, as the president-elect promises to position the U.S. as the “crypto capital of the planet.”

The market’s enthusiasm is amplified by expectations of regulatory shifts, particularly with the anticipated departure of Securities and Exchange Commission (SEC) Chair Gary Gensler and the appointment of pro-crypto figures in Trump’s Cabinet. “The sense is the new administration, at the very least, is going to facilitate productive engagement with the regulators,” said Katherine Kirkpatrick Bos, general counsel for cryptography firm StarkWare. She highlighted a stark contrast to the “very combative” relationship between the crypto industry and the SEC over the past four years.

Bos noted the excitement among institutional investors who believe the upcoming administration will foster meaningful discussions about legal issues affecting the industry. “There is now a sense that productive conversation surrounding these core legal issues has made institutional investors very excited and more willing to engage with crypto assets,” she added.

Bitcoin’s value spiked 8% the day after the election, triggering a multi-day rally that peaked at over $98,700 on November 22. While the cryptocurrency briefly slid toward $90,000 last week, analysts remain confident in the market’s resilience, with one describing it as “structurally sound.”

Despite Trump’s previous skepticism about cryptocurrencies, his recent actions signal a shift in perspective. Billionaire investor Scott Bessent, a known supporter of digital assets and founder of the hedge fund Key Square Group, has been tapped to lead the Treasury Department. Ripple CEO Brad Garlinghouse called Bessent “the most pro-innovation, pro-crypto Treasury [secretary] we’ve ever seen.” Reports also suggest Trump’s team is considering creating a dedicated “crypto czar” position to oversee cryptocurrency policy and regulation.

Faryar Shirzad, chief policy officer at Coinbase, highlighted the challenges faced by the industry due to regulatory uncertainty. “We have had such difficulty [building] the next generation of the financial system and the next generation of the internet in the United States because of the lack of regulatory clarity,” Shirzad said. “Now we have an administration and a Congress who understand the potential of the technology.”

Coinbase has played a pivotal role in advancing the crypto industry’s political engagement, contributing $70.5 million to the Fairshake super PAC during the election cycle. Attention now turns to who will succeed Gensler as SEC chair, with floated candidates including former acting Comptroller of the Currency Brian Brooks and former SEC officials Paul Atkins and Robert Stebbins.

Nathan McCauley, CEO of Anchorage Digital, criticized the prior administration’s “regulation by enforcement” approach and expressed hope for “regulation by rulemaking” under new leadership. Bos underscored the need for updated regulations that align with the unique nature of digital assets. “There are a number of things that just don’t fit in our current regime,” she said. Shirzad added, “The most basic thing that the new chair can do is just signal an openness to providing the clarity that the industry has been asking for.”

The momentum is extending to Capitol Hill, where federal lawmakers are echoing Trump’s pro-crypto stance. Senator Cynthia Lummis (R-Wyo.) plans to reintroduce the BITCOIN Act, which proposes creating a strategic bitcoin reserve for the U.S. to counter inflation and mitigate dollar devaluation. Lummis expressed optimism about its prospects, stating, “The push for it is gaining momentum.”

Trump has also shown support for the idea of a bitcoin reserve, pledging during a Bitcoin Conference in July to ensure the federal government retains all its bitcoin holdings. While the BITCOIN Act’s fate in the Senate is uncertain, changes in congressional leadership are boosting industry confidence. Senator-elect Bernie Moreno (R-Ohio), who ousted crypto skeptic Sherrod Brown, is expected to lead a more pro-crypto Senate Banking Committee. Moreno and Senator Tim Scott (R-S.C.), another crypto advocate, have vowed to prioritize innovation and consumer protection through clear regulatory guidelines.

Scott, however, may face resistance from Senator Elizabeth Warren (D-Mass.), who is set to become the Banking Committee’s ranking member. Warren has consistently called for stricter oversight of cryptocurrency trading. Nonetheless, bipartisan interest in crypto marks a significant shift, particularly after the collapse of FTX dampened enthusiasm.

Chen Arad, co-founder of compliance hub Solidus Labs, noted the changing dynamics. “After the election, a lot of Democrats want to talk, want to understand, want to take part in this effort,” he said. “This is bigger than any party at this point.” Solidus Labs formed the Crypto Market Integrity Coalition in 2022, bringing together 55 institutions like Coinbase and Robinhood to push for regulatory clarity.

The coalition has proposed several measures, including a national framework for stablecoins—cryptocurrencies tied to fixed values—and a market structure bill to delineate the roles of the SEC and the Commodity Futures Trading Commission. Earlier this year, the House passed the Financial Innovation and Technology for the 21st Century Act, which aimed to address these issues, though it stalled in the Senate.

As the crypto industry awaits Trump’s formal inauguration, the optimism surrounding regulatory and legislative changes is palpable. Stakeholders see an opportunity for the U.S. to become a global leader in cryptocurrency innovation, fueled by clearer rules and a supportive government. The coming months will reveal whether the anticipated transformation of U.S. crypto policy materializes.

Warren Buffett Stresses the Importance of Transparent Estate Planning

November 30, 2024 Staff ReporterMoney 0

Warren Buffett, the CEO of Berkshire Hathaway and an iconic figure in the investment world, has issued a stark warning about the potential consequences of poor estate planning. Speaking in an unusually reflective letter released on Monday, the 94-year-old billionaire emphasized the importance of drafting a clear will and engaging in open discussions with family members.

“Father time always wins. But he can be fickle,” Buffett noted, underlining the inevitability of death and the unpredictability of life. His message arrives at a critical moment as the world approaches the “Great Wealth Transfer,” a generational shift involving the transfer of $84 trillion in wealth, projected to unfold by 2045.

Buffett’s Advice for Parents

With a fortune exceeding $151 billion, Buffett is among the wealthiest individuals globally. Over the years, he has pledged to donate at least half of his wealth to charitable causes, a commitment he made alongside Bill Gates and Melinda French Gates in 2010. While Buffett’s immense fortune might seem out of reach for most, the principles he applies to his estate planning resonate universally.

“I have one further suggestion for all parents, whether they are of modest or staggering wealth. When your children are mature, have them read your will before you sign it,” Buffett advised.

For Buffett, a will should be more than a legal document—it should serve as a foundation for dialogue. He advocates for transparency, urging parents to explain the rationale behind their decisions and prepare their heirs for the responsibilities they will inherit. This approach includes actively listening to their children’s questions and feedback and considering adjustments if the suggestions are reasonable.

Buffett recounted his own experiences of engaging his children in discussions about his estate plans. “There is nothing wrong with my having to defend my thoughts. My dad did the same with me,” he said, emphasizing the value of such conversations.

The reluctance to discuss financial matters within families is a widespread issue. According to Fidelity Investments’ State of Wealth Mobility survey, 56% of Americans report that their parents never discussed money with them. Despite this, 81% believe they would have benefited from early financial education.

For younger generations, financial insecurity amplifies the significance of inheritance. Research by Cerulli Associates indicates that the transfer of $84 trillion in assets from baby boomers and the silent generation to their heirs will reshape wealth dynamics. However, this massive transfer also highlights generational gaps in expectations. Northwestern Mutual’s Harris Poll found that younger generations often overestimate the inheritance they anticipate receiving, while older generations downplay the amounts they plan to leave behind.

Compounding these challenges, 72% of Americans feel unequipped to manage a significant financial windfall, according to a Citizens Bank survey. Millennials, in particular, express low confidence in handling large inheritances, underscoring the need for proactive financial preparation and education.

The Pitfalls of Poorly Planned Wills

The aftermath of a poorly crafted will can be deeply divisive for families. Grief-stricken relatives often find themselves embroiled in disputes over money and possessions, with seemingly trivial items sometimes becoming sources of intense conflict. Unexpected stipulations in a will can exacerbate tensions and lead to lasting familial rifts.

Buffett highlighted these risks from his observations over the years. “Over the years, Charlie and I saw many families driven apart after the posthumous dictates of the will left beneficiaries confused and sometimes angry,” he shared, referring to his late business partner Charlie Munger.

He elaborated on common sources of discord, noting that childhood experiences, perceived favoritism, and gender biases often resurface during the division of assets. To avoid such outcomes, Buffett recommends keeping wills straightforward and updating them as needed to reflect evolving circumstances.

Yet, Buffett also acknowledged the positive potential of a well-prepared will. “On the other hand, we saw situations where a well-discussed will helped a family become closer in the end. What could be more satisfying?” he remarked.

The key, according to Buffett, lies in addressing any questions or concerns while the benefactor is still alive. “You don’t want your children asking ‘Why?’ in respect to testamentary decisions when you are no longer able to respond,” he cautioned.

Buffett’s Own Approach to Estate Planning

As one of the world’s most closely watched figures, Buffett’s actions often garner significant public attention. This extends to his approach to estate planning, where he has pledged to give away more than 99% of his wealth.

While Buffett once directed a substantial portion of his philanthropy to the Gates Foundation, he has since shifted his focus. “The Gates Foundation has no money coming after my death,” he told The Wall Street Journal. Instead, his fortune will be channeled into a new charitable trust managed by his three children.

In his latest statement, Buffett revealed that he is allocating an additional $1 billion to his family’s foundations. However, he remains steadfast in his belief that wealth should empower rather than stifle personal ambition. “I don’t want to create a dynasty,” Buffett explained. His guiding principle is that “hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing.”

Buffett’s approach reflects a broader philosophy that wealth should be used responsibly and thoughtfully. By emphasizing dialogue, transparency, and preparation, he hopes to inspire others to approach estate planning with the same level of care and intentionality.

As the Great Wealth Transfer looms, Buffett’s advice serves as a timely reminder that the way we plan our legacies can profoundly impact our loved ones. By addressing these sensitive topics head-on, families can avoid unnecessary conflict and create a foundation for harmony and understanding.

The World’s Weakest Currencies: A Look at the Global Exchange Landscape

November 25, 2024 Staff ReporterMoney 0

Despite being the strongest currency globally, the Kuwaiti Dinar is not recognized as an international currency. The U.S. dollar, on the other hand, holds unparalleled dominance in global trade. This dominance stems from factors such as the dollar’s stable value and the resilience of the U.S. economy, as highlighted by CFR.

While some currencies trade at a much lower exchange rate than the U.S. dollar, their value is so diminished that even a single dollar can purchase substantial amounts of these currencies. Based on information from Forbes, this article explores the world’s cheapest currencies, ranked in relation to the U.S. dollar.

Iranian Rial (IRR)

The Iranian rial ranks as the weakest currency worldwide, with one rial equivalent to just 0.000024 dollars. This means US$1 is worth approximately 42,300 rials. The rial’s severe devaluation is primarily attributed to economic sanctions imposed by the U.S. and the European Union. Additionally, political unrest and annual inflation exacerbate the currency’s decline.

Vietnamese Dong (VND)

Vietnam’s dong is another significantly undervalued currency, with US$1 purchasing around 23,400 dong. This weak exchange rate is due to several factors, including challenges in Vietnam’s real estate market, slowed exports, and foreign investment restrictions.

Laotian Kip (LAK)

Neighboring Vietnam, Laos faces a similar struggle with its currency, the kip. One kip is valued at just 0.000057 dollars, making it the third least valuable currency globally. The kip’s decline is driven by sluggish economic growth, inflation, and mounting foreign debt.

Sierra Leonean Leone (SLL)

In Sierra Leone, the leone is among the cheapest currencies, with 1 leone worth only 0.000057 dollars. Meanwhile, US$1 is equivalent to approximately 17,665 leones. The currency’s weak position stems from persistent economic challenges such as high inflation and substantial debt obligations. Further compounding these issues are the lingering effects of the Ebola outbreak and recurrent civil wars in the country.

Lebanese Pound (LBP)

Lebanon’s pound has seen a steep decline due to ongoing economic and political turmoil. High unemployment rates, a banking crisis, and rampant inflation have left the currency significantly weakened. One Lebanese pound is valued at only 0.000067 dollars.

Indonesian Rupiah (IDR)

Despite Indonesia’s status as the largest country in Southeast Asia, its currency, the rupiah, remains one of the weakest globally. One rupiah is worth just 0.000067 dollars. Indonesia’s efforts to strengthen the rupiah are hindered by the threat of global economic contractions, which continue to challenge the nation’s economy.

Uzbekistani Som (UZS)

Uzbekistan implemented economic reforms in 2017, but these efforts have yet to fully address the country’s long-standing challenges, such as high unemployment, inflation, and widespread poverty. Corruption also plays a significant role in weakening the som’s value. Currently, US$1 equals approximately 11,420 Uzbek som.

Guinean Franc (GNF)

The Guinean franc is another currency with extremely low value, as 1 franc is equivalent to just 0.000116 dollars. Guinea’s currency struggles are largely attributed to political instability and high inflation, which have persisted for years.

Paraguayan Guarani (PYG)

The Paraguayan guarani has a value of about 0.000138 dollars, with US$1 equaling approximately 7,250 guarani. The currency’s low valuation is influenced by high inflation, as well as illegal activities like money laundering and drug smuggling that negatively impact its global standing.

Ugandan Shilling (UGX)

The Ugandan shilling is also one of the weakest currencies in the world, valued at 0.000267 dollars per shilling. US$1 equals around 3,700 shillings. Uganda’s ongoing challenges, including political unrest, an unstable economy, and substantial debt, hinder the shilling’s ability to gain strength in the international market.

The currencies listed above illustrate the complexities of global exchange rates and the economic, political, and social factors that contribute to the devaluation of these currencies. While some nations are actively working to stabilize their economies and strengthen their currencies, achieving significant improvement remains an uphill battle.

Bitcoin’s Meteoric Rise Sparks Debate: Should You Invest?

November 24, 2024November 26, 2024 Staff ReporterMoney 0

Bitcoin has been on a remarkable run in recent months, breaking records and stirring significant interest among investors. In the first quarter of this year, the cryptocurrency soared past $70,000, buoyed by the Securities and Exchange Commission’s approval of the first exchange-traded spot bitcoin funds, according to coinmarketcap.com. By March, the price hit an all-time high. This trend continued after Donald Trump’s recent win in the U.S. presidential election, with bitcoin reaching $80,000 less than two weeks ago. As of this Monday, it surpassed $90,000.

The rise in bitcoin’s value has fueled optimism among cryptocurrency advocates, who anticipate a more favorable regulatory environment under the new administration. Many view bitcoin as a tool to build generational wealth, while others argue that the U.S. should create a strategic bitcoin reserve. MicroStrategy executive chairman Michael Saylor has championed this idea, telling CNBC that it’s a way for the country to “buy the future.”

Despite its volatility, bitcoin has gained more acceptance over the years. Initially, many financial planners were skeptical about its viability as an investment for individual portfolios. However, as education around cryptocurrencies has expanded, attitudes have shifted. The Financial Planning Association now offers three continuing education courses on cryptocurrency, notes Paul Brahim, the association’s president-elect.

For those considering investing in bitcoin, financial advisers have outlined key considerations and strategies to minimize risks while making informed decisions.

Understanding Bitcoin and Its Volatility

Bitcoin, introduced in 2009 by the pseudonymous Satoshi Nakamoto, remains the most well-known cryptocurrency. Its supply is capped at 21 million coins, making it inherently scarce. Unlike tangible assets tied to a company or resource, bitcoin’s value is purely market-driven—determined by what buyers are willing to pay.

This lack of a tangible backing contributes to its extreme price volatility. While bitcoin has experienced meteoric rises, it has also suffered sharp declines. For example, between November 2021 and November 2022, bitcoin’s price plummeted 75%, dropping from $64,455 to $16,196, according to coinmarketcap.com. Such fluctuations underline the high-risk nature of the asset.

Although often referred to as a currency, bitcoin is not recognized as legal tender in the United States or most countries. Transactions involving bitcoin can be complex and have significant tax implications.

Bitcoin’s Place in a Portfolio

Experts agree that bitcoin’s volatility makes it unsuitable for short-term financial goals such as buying a home, paying for college, or saving for retirement. Trent Porter, a certified financial planner and certified public accountant at Priority Financial Partners, advises clients to avoid using bitcoin for short-term savings. “Due to its volatility, I would definitely avoid using bitcoin for short-term savings goals,” he said. Porter recommends allocating no more than 5% of a long-term portfolio to bitcoin for those insistent on exposure.

Other experts take an even more conservative approach. Mike Turi, a certified financial planner and founding partner at Upbeat Wealth, advises limiting bitcoin allocations to 3% or less, if at all. “I would not recommend using bitcoin as the main strategy to achieve your financial goals. If it’s extra investable money that can help you get there faster? Sure. However, don’t miss out on valuable opportunities by overexposing yourself to an asset that you might not fully understand,” Turi explained.

For college savings, tax-advantaged 529 plans remain a safer and more diversified option, according to Matt Elliott, a certified financial planner at Pulse Financial Planning. “It is one thing to bet your money on crypto, but another to bet a child’s college savings on it,” Elliott emphasized.

Still, Elliott sees potential for bitcoin in long-term retirement portfolios as part of a “core and explore” strategy. He suggests dedicating 95% of assets to a diversified portfolio while reserving 5% for speculative investments like crypto. “The other 5% can be used for more speculative investments (such as crypto) if you have little debt and are willing to accept the risk of losing what you put in,” he said.

Questions to Consider Before Investing

Investing in bitcoin isn’t for everyone. Before diving in, experts suggest evaluating your financial situation and risk tolerance. Porter advises asking, “If it were to drop 50% or more, would you be left in a pinch? If the answer is yes, you should reconsider.” He adds that while the regulatory environment may improve under the Trump administration, the overall risk associated with bitcoin remains high.

Turi stresses the importance of self-reflection. “I still see bitcoin more as a gamble than a reliable investment. Is it a risk you can afford to take? Consult your future self. What will happen if it doesn’t work out?” he said.

Setting clear rules and an exit strategy is also crucial. “The most challenging aspect of the bitcoin craze is that more retail investors are entering the market at its peak when euphoria is highest,” Turi noted. “Investors need to set their exit price to avoid being driven by emotion.”

Safer Ways to Invest in Bitcoin

For those determined to invest in bitcoin, there are several methods to consider. You can buy bitcoin directly and store it in a virtual wallet or on a digital asset platform like Coinbase. However, these options come with risks, including cybersecurity threats and the possibility of losing private keys.

A simpler and safer option is investing through SEC-regulated spot bitcoin exchange-traded funds (ETFs). These funds have attracted nearly $28 billion in net investments, with a combined net asset value nearing $96 billion as of last Friday, according to Morningstar Direct.

“Due to risks such as cybersecurity threats and the possibility of losing private keys, holding bitcoin through an SEC-regulated ETF is by far the safest option,” Porter said.

Ultimately, while bitcoin’s recent price surges have reignited interest, it remains a high-risk investment. For those willing to accept the potential for significant losses, experts recommend a cautious approach, keeping allocations small and focusing on long-term goals.

New York Tops Global List as the World’s Richest City

November 24, 2024 Staff ReporterMoney 0

Despite inflation taking a toll on many New Yorkers’ bank accounts, some locals are thriving financially. A recent global ranking has crowned New York as the richest city in the world, outpacing cities like Paris, Singapore, and London in millionaire density.

The survey, conducted by Henley & Partners in collaboration with wealth intelligence firm New World Wealth, considered various factors to determine the wealthiest cities globally.

New York’s top ranking is largely attributed to its impressive number of affluent residents. The city boasts 349,500 millionaires, marking a 48% increase over the past decade. Additionally, it is home to 744 centi-millionaires—those with over $100 million in investable assets—and 60 billionaires.

While New York’s millionaire population grew significantly, London experienced a 10% decline over the same period, causing it to drop to fifth place in the rankings.

In total, 11 U.S. cities made it into the top 50 richest cities globally, reflecting the high cost of living and wealth concentration in many American metropolitan areas.

Top 10 Richest Cities in the World:

New York

The Bay Area

Tokyo

Singapore

London

Los Angeles

Paris

Sydney

Hong Kong

Beijing

House of Saud: The $1.4 Trillion Royal Family Whose Wealth Surpasses the British Monarchy 16-Fold

November 22, 2024November 24, 2024 Staff ReporterMoney 0

According to Forbes’ The World’s Real-Time Billionaires list, Tesla CEO Elon Musk tops the list with a staggering net worth of $313.9 billion, followed by Microsoft founder Bill Gates at $104 billion. However, even these impressive figures pale in comparison to the wealth of the House of Saud, the ruling royal family of Saudi Arabia.

The House of Saud boasts an astounding net worth of $1.4 trillion, far surpassing the British royal family’s estimated wealth of $88 billion, which includes properties and the value of their family brand. The majority of the House of Saud’s wealth stems from Saudi Arabia’s vast oil reserves, with assets that include luxurious palaces, private jets, yachts, and rare art collections.

Notable properties include France’s Chateau Louis XIV, valued at $300 million, Leonardo da Vinci’s Salvator Mundi painting, which fetched $450 million, and a $500 million yacht. The family’s official residence, the AI Yamamah Palace, spans an impressive 4 million square feet and includes 1,000 rooms, a movie theater, a bowling alley, swimming pools, and even a mosque.

Their car collection is equally lavish, featuring luxury vehicles like the Lamborghini Aventador SuperVeloce, Rolls-Royce Phantom Coupe, and even a gold-plated Lamborghini Aventador SV.

Though the Saudi royal family consists of around 15,000 members, the majority of their wealth is concentrated among about 2,000 relatives. King Salman bin Abdulaziz Al Saud, the current monarch, has a personal net worth of $18 billion, while his son, Crown Prince Mohammed bin Salman (MBS), holds significant power. Another prominent family member, Prince Alwaleed bin Talal, had a net worth of $13.4 billion before his 2017 arrest on corruption charges.

The House of Saud’s immense fortune and extravagant lifestyle demonstrate their continued dominance in global wealth rankings.

Top Economies of 2025: U.S. Leads with China and India Rising, IMF Report

November 4, 2024November 5, 2024 Staff ReporterMoney 0

The International Monetary Fund (IMF) has projected the top global economies for FY2025, ranking the United States as the world’s leading economic powerhouse with the highest projected GDP growth. Here is a breakdown of the countries expected to rank among the top 10 economies in 2025, according to the IMF’s latest estimates.

United States of America

The U.S. economy retains its lead, projected to be the fastest-growing major economy in FY2025. With an estimated GDP of $29,840 billion, the United States continues to showcase economic strength, a significant position in the global financial landscape.

China

Following the U.S., China is anticipated to hold the second position despite economic setbacks and sanctions from Western countries. The IMF estimates China’s GDP at $19,790 billion, demonstrating resilience and steady growth. This projection highlights China’s sustained position as a critical global economic player, remaining close behind the United States.

Germany

Germany is set to claim the third spot globally with a projected GDP of $4,591 billion. Although it narrowly escaped a recession recently and faces ongoing economic challenges, Germany’s recovery and stabilization efforts have paid off. The IMF’s report reflects cautious optimism about Germany’s economic footing.

India

India, which recently surpassed the United Kingdom, is now forecasted to leapfrog Japan and secure the fourth spot on the global economic leaderboard. The IMF estimates India’s GDP to reach $4,340 billion in FY2025, marking significant economic growth. “India’s momentum in surpassing major economies underscores its role as a rising economic force,” the IMF report notes.

Japan

Japan, which has long held the fourth position, is expected to experience a slight downturn, slipping to fifth place. With a projected GDP of $4,310 billion, Japan’s economic trajectory reflects challenges in maintaining previous growth rates. The IMF report attributes this shift to various economic pressures facing the country.

United Kingdom

The United Kingdom is anticipated to maintain its ranking as the sixth-largest economy globally, with a forecasted GDP of $3,685 billion. The IMF report recognizes the UK’s continued stability amid fluctuating global conditions, highlighting its role in the global economy.

France

France is set to retain its position as the world’s seventh-largest economy, with a projected GDP of $3,223 billion in FY2025. The IMF report acknowledges France’s sustained growth, placing it solidly within the top 10 economic powerhouses.

Brazil

Brazil is expected to move up to the eighth position, making a notable leap from its current ninth rank. The IMF’s forecast places Brazil’s nominal GDP at $2,438 billion in FY2025. This upward shift reflects Brazil’s strengthened economic framework and growth in various sectors.

Italy

Italy is projected to experience a minor drop, moving from eighth to ninth place. The IMF estimates its nominal GDP at $2,390 billion in FY2025. Despite its slight decline in ranking, Italy remains a significant contributor to the global economy.

Canada

Canada rounds out the top 10 largest economies with a projected GDP of $2,361 billion. The IMF’s projections for FY2025 underscore Canada’s consistent economic growth and stable position within the global economy.

U.S. Economy Reaches New Heights, Yet Voters Remain Dissatisfied

October 31, 2024November 2, 2024 Staff ReporterMoney 0

The U.S. economy has achieved a historic milestone with recent signs of strength across various indicators. Despite this, as the presidential election nears, a significant number of voters report ongoing dissatisfaction with the economy.

According to the Commerce Department, gross domestic product (GDP) grew at an annual rate of 2.8% in the third quarter, which is slightly below the 3% expansion seen in the previous quarter but above the 2.6% predicted by economists in a FactSet poll. This GDP rate, which accounts for seasonal changes and inflation adjustments, highlights steady economic growth.

The recent data reveals that the U.S. economy added an impressive 254,000 jobs in September. Alongside, inflation is now close to the Federal Reserve’s target of 2%, and consumer confidence saw its most substantial rise since March 2021, based on figures from The Conference Board. These factors collectively indicate a robust economic landscape. “I think we should declare a soft landing now,” commented James Bullard, the former president of the Federal Reserve Bank of St. Louis, in a recent CNN interview.

This “soft landing” refers to achieving a reduction in inflation without tipping the economy into recession—an accomplishment considered rare. Bullard, along with other economists and officials, acknowledged that the economy appears to have successfully achieved this outcome.

Yet, consumer sentiment remains subdued compared to pre-pandemic levels. Surveys suggest that Americans continue to feel uncertain despite these positive economic indicators. One explanation for this paradox is the higher price levels compared to 2019. While the Federal Reserve’s aggressive measures have reduced the inflation rate significantly since it reached a 40-year peak in 2022, the impact of those high prices lingers in consumers’ minds.

The Brookings Institution recently released a study arguing that Americans’ negative sentiments amid a strong economy are partly due to increased political polarization and media’s tendency to focus on negative stories. Additionally, they noted that a growing correlation between age and lower consumer sentiment could be influencing overall economic perceptions.

In the third quarter, consumer spending remained a crucial driver of economic growth, as indicated in Wednesday’s GDP report. Accounting for nearly 70% of the U.S. economy’s output, consumer spending rose sharply, led by purchases of big-ticket items, even as spending on services showed a slight decrease. Business investment also continued during the July-September period, albeit at a slower rate than in earlier quarters. Government expenditure at both federal and state levels played a role in supporting third-quarter growth.

In September, the Federal Reserve cut interest rates by half a point, marking the first reduction in over four years. This move signaled confidence among Fed officials that inflation was sufficiently under control, allowing a slight focus shift toward the labor market. The Fed has a dual mandate from Congress to ensure price stability and maximize employment through interest rate policies.

President Joe Biden lauded the U.S. economy’s progress, remarking on Wednesday that the GDP figures “show how far we’ve come since I took office — from the worst economic crisis since the Great Depression to the strongest economy in the world.” A White House official echoed this sentiment, noting that the average annual economic growth rate during the Biden-Harris administration is the highest of any administration in the 21st century.

Looking ahead, the International Monetary Fund (IMF) expects U.S. GDP to grow at an annualized rate of 2.5% in the fourth quarter, exceeding their July projections. This growth rate, if achieved, would be the strongest among the G7 advanced economies.

India’s Rupee Struggles Amid Global Market Volatility and Domestic Challenges

October 30, 2024October 31, 2024 Staff ReporterMoney 0

In a recent social media post, an ardent supporter of India’s ruling party praised the rupee’s apparent strength compared to the Turkish lira, which has devalued by 92% against the Indian currency over the past 11 years. His message implied Turkey’s economic instability versus India’s resilience. Ironically, this comparison comes as the rupee itself hits record lows, hovering around 84 to the US dollar, with the Reserve Bank of India (RBI) likely intervening to keep it from slipping further.

The rupee’s current challenges stem from various factors. Geopolitical instability in the Middle East has fueled volatility in oil prices, which, combined with high gold prices and an increased risk-averse attitude among investors, exerts further pressure on the currency. Recent weeks have seen consistent dollar sales from Indian state-run banks, driven by dollar purchases from both foreign banks and local oil firms. Meanwhile, foreign investors pulled over ₹20,000 crore from Indian equities in the past week alone and close to $10 billion this month, marking a level of selling pressure exceeding that seen during the COVID-19 pandemic and even the 2008 financial crisis. This intensified exit partly stems from a shift in investor focus to China’s economic stimulus measures and the recent wave of primary market offerings in India. Political uncertainties in the United States have also played a role.

The sell-off was further catalyzed by the Union Budget announcement this year. Shortly after the Finance Minister unveiled changes to capital gains tax in July, foreign institutional investors began reducing their positions. While some criticize these investors for causing instability, it’s crucial to remember their substantial contribution to India’s stock market in recent years. Yet, this foreign capital influx has done little to arrest the rupee’s depreciation over time.

Internationally, the Federal Reserve’s actions continue to loom large, with widespread speculation about its future policies. The U.S. economy’s strength has fueled a rally in the dollar, causing U.S. yields to rise, which, in turn, negatively impacts capital flows into emerging markets, including India.

Despite these significant pressures, some have mounted a spirited defense of the rupee’s decline, asserting that all emerging market currencies have been depreciating and that the rupee’s fall is primarily due to temporary capital outflows. But when examined more closely, such defenses often raise further questions.

For instance, it’s puzzling why India, which has prided itself on a high-growth trajectory, faces a currency slump comparable to other nations. A decade ago, Prime Minister Narendra Modi spoke passionately about reversing the rupee’s weakness, warning in 2013 that the currency’s slide endangered India’s economic stability. At that time, the rupee hovered around 62 to the dollar, whereas it now trades below 84—a decline of over 25% in 10 years.

Another argument suggests it’s misleading to focus only on the rupee-dollar exchange rate. Yet, as critical sectors like oil and gas, power, and telecom depend heavily on imports, any weakening of the rupee against the dollar amplifies import costs. With nearly 90% of India’s imports invoiced in dollars, alongside exports, this dependence underscores the dollar’s influence over the rupee’s performance. Even though China represents a substantial share of India’s imports, prices are still primarily invoiced in dollars, keeping the rupee’s fortunes closely tied to the dollar rather than the yuan.

Attempts to diversify currency exposure have seen limited success. For example, the government’s efforts to expand rupee-rouble trade with Russia were hampered by sanctions on Russia, making policymakers cautious. Even Russia’s largest bank, Sberbank AG, was reportedly denied permission by the RBI to export 100 tonnes of Russian gold bars for sale in India due to “supervisory concerns.” Thus, for now, the rupee’s fate remains closely intertwined with the dollar.

This focus on the rupee’s trajectory brings us back to Modi’s early speeches, where he linked the rupee’s fall to corruption. In 2016, the government launched a drastic anti-corruption move through demonetization, causing a sharp drop in currency circulation. However, by 2024, currency in circulation has surged to over ₹34 trillion, more than twice the amount in the immediate aftermath of demonetization. This raises questions about whether currency strength can genuinely serve as a reliable indicator of governance.

Today, two major headwinds loom over the rupee. First, the currency’s ties to the Turkish lira may be more relevant than initially thought. According to the Democracy Report 2024 from the Varieties of Democracy (V-Dem) Institute, autocratization—a trend where countries shift towards authoritarianism—is ongoing in 42 nations, affecting 2.8 billion people or about 35% of the global population. With 18% of the world’s population, India accounts for nearly half of those living in autocratizing nations, according to the report.

The report points to India, alongside countries like Turkey, Mexico, Russia, and the Philippines, as examples of nations experiencing diminishing democratic freedoms. It details how India has seen a steady erosion in freedom of expression, independent media, civil society engagement, and religious freedoms. This shift towards autocracy, the report suggests, could be detrimental to a country’s “economic calling card”—its currency. With more than a decade of control over economic policy, the government can no longer attribute the rupee’s struggles to opposition forces.

Second, beyond political issues, India’s economic growth story also faces challenges. Indicators of urban consumption, from car sales to fast-moving consumer goods, suggest softening demand. Slowing airline passenger traffic and weaker-than-expected festive sales further reflect this trend. As consumer demand falters and salary growth stagnates, inflation remains a persistent issue, particularly in the realm of food prices. Without a robust growth trajectory, it becomes difficult to justify the rupee’s relative strength on the global stage.

Supporters of the rupee’s value often attempt to mitigate concerns by comparing it to currencies that have performed worse. In this view, pointing to the Turkish lira, the Iranian rial, or the Sierra Leonean leone serves as a reminder that India’s currency is not the weakest. Yet, this may not be enough to inspire confidence. For the rupee, a more realistic comparison might now involve looking to currencies lower in the hierarchy rather than seeking parity with stronger economies.

In this light, the rupee’s depreciation tells a broader story, reflecting not just the pressures of global market dynamics but also the unique set of political and economic challenges India currently faces. The question of currency strength is not merely academic; it touches on India’s standing on the global stage, its trade prospects, and its ability to remain resilient amid geopolitical uncertainties.

Maximizing Social Security Benefits: How to Qualify for the Maximum Payout in Retirement

September 19, 2024 Staff ReporterMoney 0

Social Security isn’t designed to fully replace the income of the average worker, but it can still provide significant support. In July, the average benefit for a retired worker was $1,919.40, which, for many, isn’t enough to cover basic expenses, particularly as housing and medical costs continue to rise. However, it is possible to receive a much higher amount from Social Security—potentially even over $4,800 per month. The maximum benefit for retirees in 2024 is $4,873 per month, or $58,476 annually, which is comparable to the median income in the United States. This amount increases with yearly cost-of-living adjustments. While achieving this maximum benefit is difficult, it is possible if you meet specific criteria.

### Three Key Factors Impacting Social Security Benefits

There are three main factors that determine how much you’ll receive in Social Security benefits: your earnings history, when you were born, and the age at which you retire.

The first, and most important, factor is your earnings history. To be eligible for the maximum benefit, you need to have consistently earned a high salary throughout your career. The Social Security Administration (SSA) evaluates your earnings over your entire working life, adjusting for inflation, and selects your 35 highest-earning years. The average income from those 35 years is used to calculate your benefit. If you didn’t earn much or didn’t work for at least 35 years, this can significantly reduce your benefit, as the SSA averages zero-dollar years into your calculation.

The SSA then uses a benefits formula that takes into account your average earnings and your birth year to determine your primary insurance amount (PIA). This is the amount you will receive if you claim benefits at your full retirement age, which varies depending on when you were born. For those born between 1943 and 1954, the full retirement age is 66, and it gradually increases for those born later, maxing out at 67 for people born in 1960 or later.

The final factor is the age at which you retire. You can claim Social Security benefits as early as age 62, but your payments will be lower than your PIA. Conversely, if you delay claiming benefits beyond your full retirement age, your monthly benefit will increase until you reach age 70. For example, those with a full retirement age of 66 can receive a 32% increase in their PIA if they wait until 70 to begin collecting. However, there is no additional increase if you wait beyond age 70.

Maximizing Your Earnings History

Your earnings history is crucial for receiving the maximum benefit, but there’s an important detail to keep in mind: the SSA places a cap on the amount of income that is taxable for Social Security purposes. In 2024, the maximum taxable income is $168,600, which means only earnings up to this limit are considered when calculating Social Security taxes. The limit is adjusted yearly for wage inflation, so even if you earn more than the cap, only the amount up to the limit will be counted toward your benefits.

To be eligible for the maximum Social Security benefit, your income must meet or exceed the maximum taxable earnings limit for at least 35 years. If your earnings fall below the limit for even one year, it could reduce your benefit. The table below shows the maximum taxable earnings for Social Security over the past 50 years:

1975: $14,100

2000: $76,200

1976: $15,300

2001: $80,400

1977: $16,500

2002: $84,900

1978: $17,700

2003: $87,000

1979: $22,900

2004: $87,900

1980: $25,900

2005: $90,000

1981: $29,700

2006: $94,200

1982: $32,400

2007: $97,500

1983: $35,700

2008: $102,000

1984: $37,800

2009: $106,800

1985: $39,600

2010: $106,800

1986: $42,000

2011: $106,800

1987: $43,800

2012: $110,100

1988: $45,000

2013: $113,700

1989: $48,000

2014: $117,000

1990: $51,300

2015: $118,500

1991: $53,400

2016: $118,500

1992: $55,500

2017: $127,200

1993: $57,600

2018: $128,400

1994: $60,600

2019: $132,900

1995: $61,200

2020: $137,700

1996: $62,700

2021: $142,800

1997: $65,400

2022: $147,000

1998: $68,400

2023: $160,200

1999: $72,600

2024: $168,600

(Data from the Social Security Administration)

As these limits rise with inflation, your earnings need to keep up with them to maintain eligibility for the maximum benefit. If your salary falls short, it could reduce your overall retirement benefit.

Beyond Earnings: Timing and Birth Year Matter

While your earnings history plays the largest role, other factors influence how much you’ll receive from Social Security. For example, the $4,873 maximum monthly benefit for 2024 applies only to retirees who turn 70 this year. The benefit amount is slightly different depending on when you were born, reflecting changes in the benefits formula.

In addition, when you claim benefits is critical. To receive the highest possible monthly payout, you need to delay retirement until age 70. If you claim earlier, even by just a few months, your benefit will be reduced.

If you’re in line for the maximum possible benefit, it’s likely you’ve earned a relatively high salary for at least 35 years. However, if you’ve maintained a high income, you might also be accustomed to a lifestyle that requires more than $4,873 a month. Additionally, many people don’t want to wait until 70 to retire. In these cases, it’s essential to have personal savings to supplement your Social Security income.

Importance of Personal Savings

Regardless of your earnings history or the size of your Social Security benefit, relying solely on these payments is not advisable. Building up your personal savings throughout your career ensures that you won’t depend entirely on Social Security in retirement. The maximum benefit, if you qualify, can be a helpful supplement, but it shouldn’t be your primary source of retirement income.

As the article points out, “building up your personal savings so you only rely on Social Security for supplemental income is the best way to ensure you can retire on your own terms and live the life you want in your golden years.”

Don’t Overlook Potential Social Security Bonuses

If you’re like most Americans, it’s possible you’re behind on your retirement savings. However, several lesser-known strategies can help boost your Social Security benefits. For example, an easy trick could add up to $22,924 per year to your retirement income. Learning how to maximize your benefits can provide peace of mind and help you retire with confidence.

Social Security Mistakes: Why Your Checks May Be Wrong and How to Correct Them

August 28, 2024 Staff ReporterMoney 0

Social Security payments are a critical source of income for millions of American retirees. However, many recipients face an unexpected problem: the government often miscalculates the payments, resulting in either overpayments or underpayments. These errors can cause significant financial stress and confusion for those who rely on these funds to meet their daily needs.

The Social Security Administration (SSA) handles millions of benefit payments each month, and even a minor mistake in their calculations can impact thousands of people. Some beneficiaries have even faced the loss of their homes when the SSA tried to recover overpayments. Ed Weir, a former Social Security manager, recently highlighted this issue in a video on his YouTube channel, offering advice to Americans on how to ensure they receive the correct benefits.

In response to pressure from Congress earlier this year, Social Security Commissioner Martin O’Malley implemented a series of measures to address the overpayment issue. According to the SSA, payment errors can occur for a variety of reasons, including data entry mistakes, incorrect wage reporting, and misunderstandings of the complex rules governing benefits. These errors can also result in recipients receiving less money than they are entitled to. So, what steps can you take if you suspect your Social Security check is incorrect? Here are three common reasons why your payment might be wrong, along with suggestions on what you can do about it.

Incorrect Earnings Record

Your Social Security benefits are calculated based on your lifetime earnings, specifically the average of your highest 35 years of income. Errors in your earnings record can occur for several reasons, such as clerical mistakes, incorrect reporting by your employer, or even identity theft. For example, if your employer mistakenly reports your earnings under the wrong Social Security number, your record may show lower earnings than you actually made, which can significantly reduce your benefits.

To avoid this, it’s essential to regularly check your Social Security statement, which you can do online through the SSA website. If you find any discrepancies in your record, you should contact the SSA immediately to correct them. This proactive step can help prevent long-term issues and ensure you receive the correct amount of benefits.

Applying for the Wrong Program

The SSA offers several different programs designed to meet various needs, such as retirement benefits, disability benefits, and survivors’ benefits. Applying for the wrong program can lead to a denial of benefits or result in receiving less money than you are entitled to.

A common mistake occurs when individuals apply for Supplemental Security Income (SSI) instead of Social Security Disability Insurance (SSDI). Both programs provide financial assistance to disabled individuals, but they have different eligibility criteria and payment amounts. SSDI is based on your work history and earnings, while SSI is need-based and intended for people with limited income and resources. If you apply for SSI when you qualify for SSDI, you could receive lower benefits since SSI payments are generally less than SSDI payments.

Life Changes

Changes in your personal life, such as marriage, divorce, the death of a spouse, or the birth of a child, can also impact your Social Security payments. For example, if you get married, your benefits may change depending on whether you are receiving your own Social Security benefits or spousal benefits. Similarly, if you divorce, you may be eligible for spousal benefits based on your ex-spouse’s earnings. However, failing to report these life changes to the SSA can result in incorrect payments.

Overpayments might occur if you continue to receive benefits you are no longer eligible for, while underpayments can happen if you do not apply for benefits you are now entitled to. For instance, widows or widowers may qualify for survivor benefits, which are often higher than the benefits they were receiving on their own record.

How to Ensure You Receive the Benefits You Deserve

Relying on the government to get everything right might not be the best approach. Here are some steps you can take to maximize your Social Security benefits and correct any errors:

Regularly Monitor Your Social Security Account:

Create an online account with the SSA to access your Social Security statement, track your earnings record, and estimate your benefits. Regularly monitoring your account can help you spot and correct errors early, reducing the risk of financial issues in the future.

Review Your Earnings Record Annually:

It’s a good idea to check your earnings record at least once a year to ensure all your income has been accurately reported. If you notice any discrepancies, report them to the SSA immediately to prevent long-term problems and ensure that your benefits are calculated correctly.

Understand the Impact of Your Retirement Age:

The age at which you choose to retire can significantly affect the amount of your Social Security benefits. Understanding how retiring early or delaying retirement impacts your benefits can help you make more informed decisions and plan accordingly to maximize your payments.

By staying informed and proactive about your Social Security benefits, you can avoid many of the common errors that lead to incorrect payments. Whether it’s checking your earnings record regularly, applying for the correct program, or understanding how life changes affect your benefits, taking these steps can help ensure you receive the money you deserve.

Gold Prices Surge Amid Geopolitical Tensions and Federal Reserve Policies

May 24, 2024 Staff ReporterFinance/Economy, Money 0

Gold prices have experienced significant growth in recent months. The Indian Bullion Jewelers Association (IBJA) reported that on Tuesday, the price of 10 grams of 24-carat gold reached Rs 74,220, up from Rs 73,383 in the previous trading session on May 17.

“Gold may be able to sustain at higher levels only if the Fed cuts rates, and the US$ starts declining against currency majors,” stated a report by Emkay Wealth Management, a brokerage firm.

As of April 30, 2024, physical gold has achieved a compound annual growth rate (CAGR) of 19.42 percent over the past 12 months, and it has provided absolute returns of 6.78 percent over a one-month period in April.

The report highlights that gold prices have risen from a long-standing base of around US$ 2050 to a new range. This increase is primarily due to tensions in the Middle East and the Federal Reserve’s stance on policy rates.

The market has found some relief from the de-escalation of geopolitical tensions, although the potential for further conflict remains.

Despite resistance at the current levels of approximately US$2370 – US$2390, significant price corrections appear unlikely due to ongoing demand from central banks and retail consumers.

Inside the Staggering Wealth of the World’s Richest Family: The Al Nahyan Dynasty

January 20, 2024 Staff ReporterLifestyle, Money 0

The Al Nahyan royal family, rulers of the Emirate of Abu Dhabi, has secured its position as the wealthiest family globally, boasting a staggering fortune of $305 billion (Rs 25,38,667 crore) as of 2023. This places them ahead of the heirs of Walmart Inc., whose net worth totals $232.2 billion (Rs 19,31,374 crore), according to a report by Bloomberg.

Led by the influential United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan, commonly known as MBZ, the Al Nahyan family holds approximately six percent of the world’s oil reserves. Their strategic investments span various industries, from Rihanna’s lingerie line Savage X Fenty to Elon Musk’s SpaceX, as highlighted in The New Yorker.

One of the key figures in their financial empire is UAE National Security Adviser Sheikh Tahnoon, also known as Tahnoun bin Zayed Al Nahyan. He heads the International Holding Co., an investment company whose value has surged almost 28,000 percent in the last five years, reaching a market value estimated at around $235 billion, making it one of the largest firms in the Middle East. The company boasts a diverse portfolio, with interests in agriculture, energy, entertainment, and maritime, employing tens of thousands of individuals worldwide.

Presidential Palace and Luxurious Properties

The Al Nahyan family’s opulent property portfolio includes a collection of magnificent palaces. Foremost among these is the Qaṣr Al-Waṭan, a presidential palace in Abu Dhabi valued at $475 million (Rs 4078 crore). Spanning an expansive 380,000 square meters, the palace features a 37-meter-wide dome and a chandelier adorned with 350,000 crystal pieces. Divided into eastern and western wings, it houses a “House of Knowledge” with prized historical artifacts and halls used for official functions. Opened to the public in 2019, the palace stands as a symbol of the Middle East’s grandeur.

In addition to Qaṣr Al-Waṭan, the Al Nahyan family owns other lavish properties worldwide, including the Chateau de Baillon in northern Paris and several residences in the UK. Former family head Sheikh Khalifa bin Zayed Al Nahyan earned the moniker “landlord of London” for his extensive property holdings in affluent neighborhoods, rivaling even the British royal family’s London assets in 2015.

World’s Biggest Megayachts

The Al Nahyan dynasty’s fleet extends to some of the world’s most luxurious megayachts, surpassing even the possessions of Amazon founder Jeff Bezos. Notable yachts include the Azzam and the Blue superyachts, each valued at $600 million (Rs 4992 crores). Azzam, the world’s longest yacht at 591 feet, boasts accommodation for over 100 people and features a golf training room, overshadowing Jeff Bezos’ 417-foot superyacht, nicknamed ‘Koru.’ The $597 million (Rs 4967 crore) Blue, measuring 525 feet, ranks as the fourth-largest yacht globally, while the $660 million (Rs 5490 crore) A+ was even borrowed by actor Leonardo DiCaprio.

Eight Private Jets

The Al Nahyan family’s presidential fleet comprises eight aircraft, including the Airbus A320-200 and three Boeing 787-9s. Notably, Sheikh Mohamed bin Zayed Al Nahyan’s personal collection includes the $478 million (Rs 3977 crore) Boeing 747 and the $176 million (Rs 1464 crore) Boeing 787, reflecting the family’s commitment to a lavish lifestyle.

Uber-Expensive Fleet of Cars

Sheikh Hamad bin Hamdan al Nahyan’s car collection is museum-worthy, with over 700 vehicles, including the world’s largest SUV and the coveted Willys Jeep. Meanwhile, Sheikh Mansour bin Zayed bin Sultan Al Nahyan’s impressive collection features five Bugatti Veyrons, a Ferrari 599XX, McLaren MC12, Mercedes-Benz CLK GTR, and a Lamborghini Reventon, as detailed by The New Yorker.

Premier League Football Club

Beyond the realms of luxury, the Al Nahyan family has left its mark in the sporting world. The Abu Dhabi United Group, under Sheikh Mohamed bin Zayed Al Nahyan’s ownership, acquired the English football team Manchester City for $255 million (Rs 2122 crore) in September 2008. Moreover, the investment company holds an 81 percent majority stake in the City Football Group, managing football clubs like Manchester City, Mumbai City, Melbourne City, and New York City.

The wealth of the Al Nahyan royal family transcends conventional boundaries, reflecting not only in their financial holdings but also in their ownership of iconic properties, megayachts, private jets, luxury cars, and a prominent presence in the world of sports. As the world’s wealthiest family, the Al Nahyan dynasty continues to shape global investments and redefine opulence on an unprecedented scale.

Gautam Adani Now 15th Richest In The World

December 12, 2023December 13, 2023 Staff ReporterBusiness, Money 0

Gautam Adani, Adani Group Chairman is now the 15th richest in the world after adding more than $ 12 billion in a massive rally in Adani Group stocks. Adani was back in the list of top 20 richest people in the world in November following the rally in Adani Group stocks.

As per the Bloomberg Billionaires Index, Adani is now the 15th richest person in the world, with a net worth of $82.5 billion. Adani’s wealth jumped by more than $ 12 billion following the rally in Adani Group stocks on Tuesday.

Adani Group market cap hit an 11-month high, reaching Rs 13.8 lakh crore in mcap in Tuesday’s trade.

The Adani conglomerate clinched its best-ever single-day market performance adding Rs 1.92 lakh crore in one day gains.

Tuesday’s strong gains also come on the heels of reports indicating that the US International Development Finance Corp (DFC) did not find the allegations of corporate fraud by short-seller Hindenburg Research relevant. Before extending a significant loan to the conglomerate for a port project in Sri Lanka, the DFC reportedly conducted a thorough examination of the claims against the Adani Group.

All 10 stocks in the Adani group clocked gains ranging from 7-20 per cent with Adani Green Energy and Adani Energy Solutions hitting gains of 20 per cent. The Group’s flagship company Adani Enterprises Ltd (AEL) saw a staggering rise in its share price by 16.91 per cent, increasing its market valuation by a substantial Rs 48,809 crore. Adani Ports and Special Economic Zone (APSEZ) also performed solidly with a 15.3 per cent gain in share price, contributing Rs 29,043 crore to the market cap.

Other group stocks also gained with Adani Energy Solutions and Adani Green Energy Solutions clocking gains of 20 per cent each. Both stocks added over Rs 55,600 crore to the group’s market cap. Adani Power Ltd (APL) and Adani Total Gas Limited (ATGL) registered gains of 15.81 per cent and 19.88 per cent, respectively. (IANS)

US Averts Government Shutdown With Stopgap-Funding Bill

November 17, 2023November 21, 2023 Staff ReporterMoney, USA 0

The U.S. Congress passed a stopgap funding bill late on Saturday with overwhelming Democratic support after Republican House Speaker Kevin McCarthy backed down from an earlier demand by his party’s hardliners for a partisan bill.

The Democratic-majority Senate voted 88-9 to pass the measure to avoid the federal government’s fourth partial shutdown in a decade, sending the bill to President Joe Biden, who signed it into law before the 12:01 a.m. ET (0401 GMT) deadline.

McCarthy abandoned party hardliners’ insistence that any bill pass the House with only Republican votes, a change that could cause one of his far-right members to try to oust him from his leadership role.

The House voted 335-91 to fund the government through Nov. 17, with more Democrats than Republicans supporting it.

US Averts Government Shutdown With Stopgap Funding Bill (BBC) — Picture: BBC

That move marked a profound shift from earlier in the week, when a shutdown looked all but inevitable. A shutdown would mean that most of the government’s 4 million employees would not get paid – whether they were working or not – and also would shutter a range of federal services, from National Parks to financial regulators.

Federal agencies had already drawn up detailed plans that spell out what services would continue, such as airport screening and border patrols, and what must shut down, including scientific research and nutrition aid to 7 million poor mothers.

“The American people can breathe a sigh of relief: there will be no government shutdown tonight,” Democratic Senate Majority Leader Chuck Schumer said after the vote. “Democrats have said from the start that the only solution for avoiding a shutdown is bipartisanship, and we are glad Speaker McCarthy has finally heeded our message.”

DEMOCRATS CALL IT A WIN

Some 209 Democrats supported the bill, far more than the 126 Republicans who did so, and Democrats described the result as a win.

“Extreme MAGA Republicans have lost, the American people have won,” top House Democrat Hakeem Jeffries told reporters ahead of the vote, referring to the “Make America Great Again” slogan used by former President Donald Trump and many hardline Republicans.

Democratic Representative Don Beyer said: “I am relieved that Speaker McCarthy folded and finally allowed a bipartisan vote at the 11th hour on legislation to stop Republicans’ rush to a disastrous shutdown.”

McCarthy’s shift won the support of top Senate Republican Mitch McConnell, who had backed a similar measure that was moving through the Senate with broad bipartisan support, even though the House version dropped aid for Ukraine.

Democratic Senator Michael Bennet held the bill up for several hours trying to negotiate a deal for further Ukraine aid.

“While I would have preferred to pass a bill now with additional assistance for Ukraine, which has bipartisan support in both the House and Senate, it is easier to help Ukraine with the government open than if it were closed,” Democratic Senator Chris Van Hollen said in a statement.

McCarthy dismissed concerns that hardline Republicans could try to oust him as leader.

“I want to be the adult in the room, go ahead and try,” McCarthy told reporters. “And you know what? If I have to risk my job for standing up for the American public, I will do that.”

He said that House Republicans would push ahead with plans to pass more funding bills that would cut spending and include other conservative priorities, such as tighter border controls.

CREDIT CONCERNS

The standoff comes just months after Congress brought the federal government to the brink of defaulting on its $31.4 trillion debt. The drama has raised worries on Wall Street, where the Moody’s ratings agency has warned it could damage U.S. creditworthiness.

Congress typically passes stopgap spending bills to buy more time to negotiate the detailed legislation that sets funding for federal programs.

This year, a group of Republicans has blocked action in the House as they have pressed to tighten immigration and cut spending below levels agreed to in the debt-ceiling standoff in the spring.

The McCarthy-Biden deal that avoided default set a limit of $1.59 trillion in discretionary spending in fiscal 2024. House Republicans are demanding a further $120 billion in cuts.

The funding fight focuses on a relatively small slice of the $6.4 trillion U.S. budget for this fiscal year. Lawmakers are not considering cuts to popular benefit programs such as Social Security and Medicare.

“We should never have been in this position in the first place. Just a few months ago, Speaker McCarthy and I reached a budget agreement to avoid precisely this type of manufactured crisis,” Biden said in a statement after the vote. “House Republicans tried to walk away from that deal by demanding drastic cuts that would have been devastating for millions of Americans. They failed.”

Reporting by David Morgan, Makini Brice and Moira Warburton, additional reporting by Kanishka Singh, writing by Andy Sullivan; Editing by Scott Malone, Andrea Ricci and William Mallard

India and UAE Initiate Local Currency Trade, Impact on US Dollar

August 23, 2023September 6, 2023 Staff ReporterBusiness, Money 0

In a significant move, India and the United Arab Emirates (UAE) have officially commenced trading in their respective local currencies, marking a departure from the traditional reliance on the U.S. dollar for international transactions.

The Indian government made an announcement on Monday, revealing that Indian Oil Corp., a major petroleum refiner in the country, had used the Indian rupee to purchase one million barrels of oil from the Abu Dhabi National Oil Company, instead of using the U.S. dollar as the standard transaction currency. This landmark transaction underscores the growing trend towards local currency trade arrangements.

This development follows another noteworthy transaction involving the sale of 25 kilograms of gold from a UAE-based gold exporter to an Indian buyer for approximately 128.4 million rupees (equivalent to $1.54 million), as reported by Reuters. These two transactions serve as prime examples of the increasing shift towards conducting trade using local currencies.

The implications of this trend for the role of the U.S. dollar on the global stage are worth exploring. As these nations forge ahead with local currency trade agreements, questions arise about the potential impact on the U.S. dollar’s status as the dominant international currency.

India’s central bank laid the groundwork for this shift by introducing a new framework aimed at settling global trade using the rupee. This framework materialized last month when India, a significant oil importer and consumer on the global stage, entered into two agreements with the UAE. The primary objective of these agreements is to streamline cross-border transactions and payments by conducting trade in their respective local currencies. This move is anticipated to reduce transaction costs and eliminate the need for dollar conversions. In addition to local currency trade, both countries have also committed to establishing a real-time payment link, further simplifying cross-border money transfers. The Reserve Bank of India elucidated that these agreements will facilitate “seamless cross-border transactions and payments, and foster greater economic cooperation.”

While India and the UAE are at the forefront of this local currency trade trend, they are not alone in their efforts to reduce reliance on the U.S. dollar. Several influential countries worldwide, including China and Russia, have been exploring avenues to diminish the dollar’s prominence due to concerns over aggressive U.S. sanctions and foreign policy maneuvers. This global trend, often referred to as “de-dollarization,” has gained momentum, raising discussions about the future dominance of the U.S. dollar in international trade.

Janet Yellen, the Treasury Secretary, sought to address these concerns by emphasizing that no currency currently possesses the capacity to replace the U.S. dollar. Yellen’s assertion followed an 8% decrease in the dollar’s share of global reserves in the previous year. In response to this trend, central banks around the world have been diversifying their reserves, transitioning away from the dollar and towards other assets such as gold.

India and the UAE have embarked on a path of local currency trade, signaling a shift away from the traditional reliance on the U.S. dollar in international transactions. This move, driven by the desire to streamline cross-border trade and payments, highlights a broader trend of “de-dollarization” observed in various countries, including China and Russia. While these developments raise questions about the future status of the U.S. dollar, experts, including Janet Yellen, maintain that no currency currently possesses the necessary attributes to fully replace the greenback. As central banks diversify their reserves in response to this evolving landscape, the dynamics of global trade and finance continue to undergo transformation.

India Receives Record Remittances

July 26, 2023 Staff ReporterMoney 0

India received close to $90 billion in remittance flows from around the world in 2022. The total remittance flows during the 2021-22 fiscal year were the highest received by India in a single year, data from India’s Ministry of Finance showed. India’s fiscal year starts on April 1 and ends on March 31.

The US, the world’s largest economy, was the biggest source of remittances to India, with a 23.4 per cent share in total remittance flows, followed by the UAE at 18 per cent. The UK was in third place with a 6.8 per cent share and Singapore was fourth with a 5.7 per cent share.

Singapore also ranked among the top remittance-sending countries to India. The Gulf countries, including the UAE, play a significant role in supporting India’s economy, as a large number of Indians residing there send money back home.

Saudi Arabia, the Arab world’s largest economy, was the sixth biggest source of remittances to India with a total share of 5.1 per cent in total remittances, while Kuwait, Oman and Qatar had a share of 2.4 per cent, 1.6 per cent and 1.5 per cent, respectively.

Recently, India and the UAE signed agreements to promote the use of local currencies and enhance cross-border transactions, further strengthening economic ties between the two nations.

The agreements, which promote the use of the Indian rupee and the dirham bilaterally, are expected to boost investments and remittances between the two countries, the Reserve Bank of India said on its website.

The two countries also agreed to co-operate on linking their fast payment systems – India’s Unified Payments Interface with the UAE’s Instant Payment Platform – to ease cross-border money transfers.

Last year, India and the UAE also signed a comprehensive economic partnership agreement, boosting economic ties between the two countries.

Senate GOP Introduces “Lowering Education Costs and Debt Act”

June 21, 2023 Staff ReporterEducation, Money 0

Senate Republicans have announced their own plan to address student debt, which was introduced as the Supreme Court prepares to rule on President Biden’s student debt relief program. The GOP’s “Lowering Education Costs and Debt Act” comprises five bills aimed at tackling the underlying causes of the student debt crisis, including rising tuition fees and students taking out loans they cannot afford. The package was initiated by Senators Bill Cassidy, Chuck Grassley, John Cornyn, Tommy Tuberville, and Tim Scott.

Two of the package’s bills deal specifically with how colleges provide information to prospective students. The “College Transparency Act” would reform the way colleges report on outcomes of their graduates to provide more accurate and useful information for prospective students. On the other hand, the “Understanding the True Cost of College Act” would require colleges to use a standardized format for financial aid letters, including a breakdown of the aid offered, so that students can compare offers more easily.

The remaining three bills in the package concern student loans and look at improving the information provided to borrowers and limiting some forms of borrowing. The “Informed Student Borrower Act” requires individuals to acknowledge receipt of student loan entrance materials, and the materials must include information about loan repayment periods, monthly payment amounts, and potential earnings for graduates of specific programs. This information will be given to students annually.

One of the remaining bills in the package aims to simplify the nine different student loan repayment options available. The proposal cuts that number down to two, leaving the 10-year standard repayment plan in place and modifying the REPAYE repayment plan. The latter provides loan forgiveness to students with low balances and low incomes.

Undergraduate or graduate programs that have not been shown to lead to higher earning potential than high school graduates or bachelor’s degree holders will be ineligible for loans under the bill. The final proposal in the package aims to put pressure on graduate schools to reduce costs, which account for almost half of all student loan debt taken out each year. If passed, this legislation would end Graduate PLUS loans, a type of loan that has been left unrestricted since 2006 and that Republicans consider “inflationary.”

Sen. Cassidy remarked that “our federal higher education financing system contributes more to the problem than the solution. Colleges and universities using the availability of federal loans to increase their tuitions have left too many students drowning in debt without a path for success. Unlike President Biden’s student loan schemes, this plan addresses the root causes of the student debt crisis. It puts downward pressure on tuition and empowers students to make the educational decisions that put them on track to academically and financially succeed.”

Although Republicans do not control the Senate, they have a chance of winning approval for the bill if it gains the support of centrist Democrats, including Sen. Joe Manchin. Manchin recently joined with other senators, including Jon Tester and Kyrsten Sinema, in a vote to overturn President Biden’s student debt relief plan, which was vetoed by the White House. The Republican package was released ahead of a possible Supreme Court decision on the legality of Biden’s student debt relief program, providing the GOP with a plan to present should the high court strike down the president’s initiative.

Overall, the GOP’s Lowering Education Costs and Debt Act represents one approach to addressing student debt and the growing student loan crisis. With rising tuition costs and student debt levels that have reached unsustainable levels, addressing the root causes of the problem is critical to helping students cope with the costs of higher education and providing them with the resources necessary to succeed academically and financially. Whether the bill gains the support needed to become law remains to be seen, but the issue of student debt, and how it is addressed, will remain a key concern for lawmakers and students alike.

Top 10 Billionaire Hotspots

June 21, 2023 Staff ReporterMoney 0

In June, Wealth X unveiled its yearly analysis of the global billionaire population. Utilizing RelSci, a data-driven platform, the organization examined a database containing 11 million influential individuals and 1.8 million organizations to determine where billionaires reside, based on their primary business addresses. The report revealed that the top-ranked cities housed 29% of the world’s billionaires in 2022, with nearly all of them being major global cities. This demonstrates the ongoing appeal of high-end businesses, as well as cultural and lifestyle opportunities for the ultra-wealthy.

Here are the top 10 cities with the highest number of billionaires:

New York City

Hong Kong

San Francisco

Moscow

London

Beijing

Los Angeles

Singapore

Shenzhen

Mumbai

New York City leads the pack with 136 billionaires in 2022. Despite losing two billionaires from 2021 to 2022, the city remains the global capital for billionaires. As the report states, “New York is home to the world’s largest stock markets, New York Stock Exchange and Nasdaq, and is also considered the biggest regional economy in the U.S.”

Hong Kong follows closely behind with a total of 112 billionaires, experiencing a similar decrease of two billionaires. The Wealth X report explains that although Hong Kong’s wealth portfolios were less exposed to the fluctuating global economy, the region’s divided political developments impact its attractiveness for billionaire non-financial businesses.

San Francisco ranks third with 84 billionaires, one less than in 2021. Despite this slight decline, the city witnessed a 68% growth in its high-net-worth population between 2012 and 2022, according to a Henley & Partners report. A March study from Wealth-X and REALM reveals that “there’s one ultra-wealthy homeowner in San Francisco for every 505 residents.”

Over the past decade, San Francisco has become synonymous with Silicon Valley, which experienced significant growth in 2022. The tech hub extends from the southern part of the San Francisco Bay Area to other cities such as San Mateo, Santa Clara, San Jose, Palo Alto, Cupertino, and Mountain View. Silicon Valley hosts major companies like Apple, Facebook, Google, Twitter, Nvidia, and more.

End Of The Student Loan Pause Is Imminent

June 21, 2023 Staff ReporterEducation, Money 0

The student loan pause has been in place since March 2020, initially enacted by former President Trump using emergency authority in response to the Covid-19 pandemic. This was later solidified through legislation passed by Congress. The moratorium halted payments and interest on government-held federal student loans and ceased collection efforts against defaulting borrowers.

Initially planned for six months, the pause was extended by the Trump administration as the pandemic persisted. Upon taking office, President Biden continued this trend with several short-term extensions. Biden’s latest extension is connected to the Supreme Court legal battle over his separate student loan forgiveness plan.

In the recent bipartisan bill to raise the debt ceiling, Biden succeeded in maintaining his primary student debt relief initiatives, such as his loan forgiveness plan. However, during negotiations with congressional Republicans, he agreed to set the end of the student loan pause for this summer. Payments are now scheduled to recommence after August. Given the new legislation, it is improbable that Biden will be able to extend the student loan pause beyond that, unless a new national emergency arises.

Significant Changes in Student Loan Servicing

As borrowers prepare to resume repayments, they will encounter one of the most substantial changes in the student loan landscape: student loan servicing. Loan servicers are contractors who manage borrower accounts on behalf of the Department of Education.

Over the past three years, the student loan servicing sector has experienced significant upheaval. Several contracted Department of Education servicers have exited the Federal Student Aid system, and others have stepped in to manage those accounts. A recent report by the Consumer Financial Protection Bureau (CFPB) reveals that more than 40% of borrowers will have a different loan servicer compared to before the student loan pause was implemented.

Major changes include FedLoan Servicing’s departure, with accounts being transferred to EdFinancial, MOHELA, and other loan servicers. Navient also transferred its Department of Education accounts to Aidvantage, while Great Lakes Higher Education has been moving its department portfolio to Nelnet.

Student loan servicers fulfill crucial roles such as accepting payments, reviewing repayment plan requests, processing forms and paperwork, and addressing borrowers’ questions. Advocates have cautioned that due to the alterations in loan servicing and financial constraints, the Department of Education’s student loan servicing might struggle to handle the pressure of millions of borrowers resuming repayments simultaneously.

Biden’s Emerging Student Loan Repayment Plan

The Biden administration is currently working on a new income-based student loan repayment plan (essentially revamping an existing income-driven repayment plan). The latest proposal suggests that this plan could decrease some borrowers’ monthly payments by 50% or more and expedite student loan forgiveness.

However, the plan is not yet finalized and won’t be fully accessible when payments restart later this summer. The Department of Education is expected to release updated proposed regulations in the coming months and may begin implementing certain aspects of the plan later this year or in 2024. This would offer borrowers a potential new path to more affordable payments after the student loan pause concludes. As the new plan is introduced, some existing income-driven plans might be phased out, potentially causing confusion among borrowers.

Account Adjustment Potentially Leading to Student Loan Forgiveness This Summer

While President Biden’s flagship student loan forgiveness plan (which can eliminate up to $20,000 in federal student loan debt) awaits a Supreme Court decision, another significant debt relief program is advancing.

The IDR Account Adjustment will enable the Department of Education to credit borrowers with previous loan periods towards their 20- or 25-year student loan forgiveness term under income-driven repayment plans. Borrowers with government-held federal student loans can automatically receive these benefits, even if they aren’t currently enrolled in an IDR plan.

Borrowers who accumulate enough credit to meet the threshold for student loan forgiveness under IDR programs will be eligible for loan discharge. The department anticipates beginning loan balance discharges by August, coinciding with the resumption of repayments. As a result, some borrowers who were expecting to make payments might not have to.

Other borrowers who obtain retroactive IDR credit but fall short of the forgiveness threshold will have their accounts updated sometime next year. These borrowers should then consider switching to or continuing with an IDR plan to make ongoing progress.

New Student Loan Forgiveness Regulations

New student loan forgiveness regulations established by the Biden administration will take effect on July 1. These regulations will influence almost every major federal student loan forgiveness program.

The new rules will solidify some recent temporary flexibilities for Public Service Loan Forgiveness, easing the definitions of qualifying payments and qualifying PSLF employment, enabling more borrowers to receive PSLF credit and ultimately, loan forgiveness.

Additionally, new regulations will expand access and relief and simplify the application process for other student loan forgiveness programs, such as the Total and Permanent Disability (TPD) discharge program and Borrower Defense to Repayment. Unlike Biden’s new student loan repayment plan, which is still being finalized, these regulatory changes are essentially complete and should be in effect when borrowers return to repayment.

Biden’s New Repayment Plan, Loan Servicing Changes, and Forthcoming Forgiveness Regulations

June 21, 2023 Staff ReporterEducation, Money 0

The suspension of student loan payments is quickly approaching its end, and it is highly unlikely that President Joe Biden will grant another extension. This means that over 40 million borrowers will have to resume repayments after more than three years – a truly unparalleled situation.

The situation is further complicated by the fact that the student loan environment has undergone significant changes since before the pause, affecting various aspects such as loan servicing, repayment, and forgiveness programs. Advocacy groups for borrowers are worried that these substantial shifts, even if well-intentioned, may lead to confusion and mistakes, ultimately resulting in an increase in defaults.

Age, Education, and Gender Impact on Average Salaries in the U.S.

June 1, 2023 Staff ReporterBusiness, Money 0

The U.S. Bureau of Labor Statistics’1 research on American earnings reveals that the median salary in the United States peaks within the 45 to 54 age range. A deeper analysis of the average salary by age in the U.S. uncovers some interesting insights.

Key Findings on Average Salary by Age in the U.S.:

Median American earnings reach their highest point in the 45 to 54 age range.
The most significant salary increase from one age group to another is between 20 to 24 and 25 to 34, indicating that this is when most individuals experience major career advancements.
Younger earners in the 16 to 19 age group typically earn 49.92% less than older workers.

The data underscores the notable salary growth for workers transitioning from the 20 to 24 to the 25 to 34 age group. This substantial increase in earnings suggests that the most significant career progressions usually take place during this time, supported by factors such as skill development, education, and work experience.

Furthermore, a considerable wage gap exists between younger earners in the 16 to 19 age group and their older counterparts. On average, these young workers earn 49.92% less, which can be attributed to factors like limited work experience, a smaller skill set, and entry-level positions. This information is crucial for policymakers, educators, and employers, as it emphasizes the importance of skill development and work experience in closing the income gap. As younger individuals grow, develop their skills, and gain work experience, their earning potential will significantly improve, driving overall salary growth throughout their careers.

Noteworthy Observations on Average Salary by Age and State:

New Jersey, Massachusetts, and Maryland are the states with the largest income jumps from one age range to the next.
New Hampshire is the state where young people have the highest average income, with a salary of $52,926.
New Jersey is the state with the largest pay gap between younger and older workers.

IncomeByZipcode.com’s2 comprehensive research reveals intriguing regional disparities regarding income progression across age groups in the United States. The states of New Jersey, Massachusetts, and Maryland exhibit the most substantial income jumps between age ranges, indicating unique economic dynamics in these areas and suggesting that professionals in these states may experience more significant salary increases throughout their careers.

New Hampshire stands out as the state where young people have the highest average income, boasting an impressive salary of $52,926. This data highlights the favorable economic conditions for young professionals in New Hampshire, making it an ideal destination for ambitious individuals seeking to maximize their early career earnings.

On the other hand, New Jersey showcases the largest pay gap between younger and older workers, emphasizing the importance of understanding regional differences when evaluating career prospects and income potential across the United States.

Key Points on Average Salary by Age and Educational Level:

The median salary for individuals older than 25 with a bachelor’s degree is 76.24% higher than for those older than 25 with a high school diploma.
The median salary for people older than 25 with an advanced degree is 70.64% higher than for those older than 25 with a bachelor’s degree, and 143.54% higher than those with an associate degree.

The National Center for Education Statistics3 offers compelling data demonstrating the impact of education level on earning potential. People aged 25 and above with a bachelor’s degree earn a median salary that is 76.24% higher than those with only a high school diploma, emphasizing the value of pursuing higher education and its long-term benefits for career growth and financial stability.

Data shows that individuals over 25 with an advanced degree have a median salary that is 70.64% higher than those with a bachelor’s degree and a remarkable 143.54% more than those with an associate degree. These findings underscore the profound effect of advanced education on salary prospects and the potential rewards of investing in graduate or professional degrees.

Average Salary by Age and Gender:

The most substantial gender pay gap is observed in the 45 to 54 age group.
The smallest gender pay gap is present in the 16 to 19 age group.

Data from the U.S. Bureau of Labor Statistics^1 highlights a notable disparity in wages between genders, particularly in the 45 to 54 age group. In this age range, the male median annual wage amounts to $72,228, while the female median annual wage is considerably lower at $57,096. This translates to a wage discrepancy of $15,132 or a 26.5% difference favoring males.

Conversely, the gender pay gap is significantly smaller in the 16 to 19 age group, with the median annual wage for males standing at $32,188 and females at $31,096. This results in a difference of $1,092 or a mere 3.5% wage disparity in favor of males.

The information gleaned from these statistics emphasizes that the gender pay gap is not uniform across age groups. Instead, it widens as individuals progress in their careers and attain higher income levels. This trend suggests a complex interplay of factors, such as career choices, professional growth, and work-life balance, may disproportionately impact women during their mid-career stages.

Is The End Of Dollar Supremacy Coming?

May 25, 2023 Staff ReporterWorld, Money 0

(IPS) – Half a century ago, the dominance of the United States dollar in the international finance and trade system was indisputable.

By 1977, the US dollar reached a peak of 85 per cent as the prevailing currency in foreign exchange reserves; in 2001, this position was still around 73 per cent. But today, it is at approximately 58 per cent.

The dominance of the dollar and the hegemonic position of the United States have for long been intertwined. And the recent global transformations are affecting American’s ability to sustain this: the gradual movement of the centre of gravity from the West to the East, the unravelling complexities of US domestic politics, the growing muscle of the international projection of China and an international assertiveness among the countries of the Global South have restrained the American dollar’s supremacy and status.

And yet, the currency still holds by far the largest share of global trade, foreign exchange transactions, SWIFT payments and debt issued outside the United States. In fact, Western financial agents, government officials and renowned experts tend to downplay the so-called de-dollarization arguing that a relatively debilitated dollar doesn’t necessarily mean its demise.

Notwithstanding controversial standpoints, it is undeniable that the world system faces more complex, diverse and plural challenges that involve currency competition and new inventive financial pathways.

Resistance against the US Dollar

The so-called de-dollarization in global finance has its landmarks. The launch of the Euro in 1999 was crucial since the European currency, by now, represents 20 per cent of the global foreign exchange reserves. By the dawn of the 21st century, an Asian Currency Unit came to life as well: it represented a salad bowl of 13 currencies from East Asian nations (ASEAN 10 plus Japan, China and South Korea).

Along with the successful spill overs of economic regionalisation, Western-led geopolitics also came to be a source of global financial novelties that affected the US dollar’s pre-eminence.

The growing recourse to a sanction regime against countries such as Iran, especially since 2006, and Russia after the 2014 annexation of Crimea, encouraged alternative currency arrangements. As of today, Washington’s sanctions policy punishes 22 nations.

The invasion of Ukraine by Russia in 2022 and the extension of sanctions hampering the use of the US dollar encouraged even more de-dollarized practices. In response to the decision to disconnect Russia from SWIFT, Moscow advanced bilateral fuel transactions with partial payment in Rubles.

Simultaneously, Russia and a group of African countries initiated talks to establish settlements in national currencies, discontinuing both the US dollar and the Euro. Meanwhile, China is trying to insulate itself from the West and is attempting to internationalise the Renminbi, even though it represents less than 3 per cent of the official reserves worldwide.

Moscow and Beijing are coming closer in terms of financial cooperation, France and Saudi Arabia agreed to use the Renminbi in certain oil and gas deals, while Bangladesh became the 19th country to commerce with India in Rupees.

Last but not least, a gold rush is also picking up. As Ruchir Sharma has recently observed, key buyers are now central banks, which are procuring ‘more tons of gold now than at any time since data begins in 1950 and currently account for a record 33 per cent of monthly global demand for gold […] and 9 of the top 10 are in the developing world.’

Besides, some African nations seem willing to trade in currencies backed by rare-earth metals. In the Global South, in fact, there is a growing perception that de-dollarization is a step towards a multipolar world in which new actors, interests and rules interplay. In that sense, it is becoming evident that a multi-currency trading regime is slowly emerging.

How Brazil ‘de-dollarizes’

De-dollarization has been included in Brazil’s foreign policy strategy. Since the inauguration of his third mandate, President Lula da Silva rapidly disclosed the intention of overcoming his discrepancies with Western rule-setting. An adjourned narrative that contests the Global North’s preponderance in the World Order has resurfaced.

Demands for inclusive reforms in global governance, the condemnation of geopolitical worldviews leading to securitised methods and military escalation, and the questioning of the Dollar’s dominance in international trade and finance have arisen. In the present context of tensions and rivalries between the Great Powers, Brazil strives to speak of an autonomous voice of the Global South.

And thus, Lula has tried to promote peace in Ukraine on the basis of negotiations that recognize the voices of all parties involved in the war.

Lula’s de-dollarization standing has been stimulated by Brazil’s association with the BRICS, as well as its expanded bilateralism with China. The continuously record-breaking Brazilian-Chinese trade relationship reached a peak of $150,5 bn in 2022 (while the Russia-China trade relationship for the same year was $190,2 bn).

As bilateral ties are expanding further, during Lula’s recent state visit to China, novel settlements are being negotiated, aiming to put trade and financial operations on track directly with Chinese Renminbi and Brazilian Reais.

Concurrently, the Brazilian government has decided to use the New Development Bank (NDB), the BRICS’ multilateral bank, as a platform to defend a de-dollarized trade system among its members and with the countries that benefit from NDB credit lines.

By positioning former Brazilian President Dilma Rousseff as the head of the bank, Lula has upgraded the Brazilian political commitment to this frontline. Most certainly, this will become a reiterated pledge in Brazil’s performance in global governance arenas, with mention to its 2024 presidency of the G20.

It is remarkable how the Lula government has sought a prudent strategy balancing its anti-dollar hegemony signals among its BRICS partners with a constructive presence in a dollar-dominating terrain such as the Interamerican Development Bank (IDB).

By holding the presidency of the IDB since last December, supporting the candidacy of Brazilian ex-IMF official Illan Goldfajn, Brazil has stretched its footprint in international finance from Washington to Shanghai.

Beyond Brazil

Brazil has made a first attempt to bring in the de-dollarization card to its South American neighbourhood, particularly together with Argentina. Last February, bilateral talks took off to begin working on a common currency project that could reduce reliance on the US dollar. This could mean ingraining de-dollarization within the MERCOSUR area.

Following Brazil’s example, Argentina has started to consider the use of the Renminbi in its trade with Beijing. For Brazil, these are moves that could, step-by-step, lead to a regional financial terrain with relative distance from US dollar dominance. However, ongoing macroeconomic turbulences in Argentina, together with an extremely low level of foreign exchange reserves, will surely obstruct these plans in the short term.

Besides, more than two will be needed to tango. If a sustained economic recovery of Argentina takes place, Brazil will need to assure the support of extra-regional, heavyweight, non-Western actors, particularly China and India, in investment and trade flows to trigger a renewed insertion of MERCOSUR into the world economy.

De-dollarization could become a part, among others, of a dynamic reconfiguration of financial and productive intersections of Brazil and its neighbours with other regions and economic powerhouses of the global economy. Needless to say, this is a long-term strategy. The key consideration is the role of South America, that, in the near future, may play into the promotion of a multi-currency trading regime.

For now, while a strident flag of Lula’s presidential diplomacy, Brazilian ties with the US Dollar can be reduced but remain of unquestionable relevance. Decision-making in Brazil is conducted by a complex inter-ministerial web responsible for the states’ international sector that cannot avoid the influence of key production segments in the private sector.

Thus, transforming the Brazilian international financial modus operandi will depend on major accommodations that cannot overlook a broad domestic negotiation process, particularly if conjoined with the strengthening of democracy.

Monica Hirst is a research fellow at the National Institute for Science and Technology Studies in Brazil; Juan Gabriel Tokatlian is Provost at the Torcuato Di Tella University, Buenos Aires, Argentina.

Source: International Politics and Society (IPS), published by the Global and European Policy Unit of the Friedrich-Ebert-Stiftung, Hiroshimastrasse 28, D-10785 Berlin. (IPS UN Bureau)

Student Loan Forgiveness Eligibility in Three Key Areas

May 15, 2023 Staff ReporterEducation, Money 0

The Biden administration has begun implementing the IDR Account Adjustment, a significant initiative aimed at expediting student loan forgiveness for numerous borrowers. Recent guidance from the Education Department indicates that the program’s scope may be even more extensive than initially anticipated. Here’s what borrowers need to understand:

How the IDR Account Adjustment Will Lead to Student Loan Forgiveness

Introduced last year by the Biden administration, the IDR Account Adjustment is a long-awaited solution addressing well-known issues with Income-Driven Repayment (IDR) programs. IDR encompasses various repayment plans, allowing borrowers to repay their federal student loans based on factors such as income, marital status, and family size. Payments are recalculated annually, and after 20 or 25 years (depending on the plan), any remaining balance can be completely forgiven.

Historically, IDR plans have had stringent rules. Only time spent in an IDR plan counts towards loan forgiveness, and certain actions like consolidating or failing to re-certify income when required could hinder a borrower’s progress. Investigative reports have also exposed multiple administrative issues with the programs, including loan servicers that “wrongfully steered borrowers into costly forbearances” and a system that inadequately tracked borrowers’ IDR progress.

The IDR Account Adjustment aims to rectify these past problems. This initiative will enable the Education Department to credit borrowers with time that would not typically count towards their 20- or 25-year IDR student loan forgiveness term, including most repayment periods and some non-payment periods like deferment and forbearance. Borrowers don’t even need to be currently enrolled in an IDR plan to benefit from the initiative.

Furthermore, the IDR credit can also be applied to loan forgiveness under the Public Service Loan Forgiveness (PSLF) program, another program plagued by long-standing issues.

The Education Department published comprehensive new guidance last month on the IDR Account Adjustment’s implementation. The Biden administration seems to have broadened the eligible loan periods that can count towards loan forgiveness, possibly offering even more extensive relief to millions of borrowers.

Parent PLUS Loans Eligible for Credit Towards Student Loan Forgiveness

Historically, Parent PLUS loans have been excluded from many federal student loan relief programs, including IDR plans. While Parent PLUS borrowers could consolidate their loans into a federal Direct consolidation loan to qualify for the Income-Contingent Repayment (ICR) plan, this is the most expensive IDR option. Under previous rules, borrowers would receive no IDR or PSLF credit before consolidating, and Parent PLUS borrowers were also excluded from the Limited PSLF Waiver.

However, recent Education Department guidance confirms that Parent PLUS loans, even unconsolidated ones, can receive credit towards loan forgiveness under the IDR Account Adjustment. Borrowers who obtain 25 years of IDR credit can achieve complete loan forgiveness, while others may speed up their progress towards eventual loan forgiveness, reducing their repayment time and saving money.

Parent PLUS borrowers may still need to consider Direct loan consolidation, as they would need to continue making payments under an IDR plan to progress towards loan discharge. The only available IDR plan for Parent PLUS borrowers is ICR, accessible only if their loans are consolidated into a Direct loan.

Recent Default Periods Can Be Credited Toward Student Loan Forgiveness

Initially, the Biden administration stated that default periods would not count towards loan forgiveness under the IDR Account Adjustment. However, updated guidance in April marked a significant change, allowing borrowers to be credited with “periods in default from March 2020 through the month they exit default,” as long as they do so before the end of the “Fresh Start” period (expected to last one year after the current student loan pause ends this summer).

For borrowers who were already in default when the student loan pause began in 2020, this extended eligibility could result in over three years of additional IDR and PSLF credit towards student loan forgiveness, provided they take the required steps to exit default and return to good standing.

Consolidation Can Accelerate Student Loan Forgiveness

The Education Department’s new guidance states that borrowers who consolidate federal student loans with varying repayment lengths will receive the maximum amount of loan forgiveness credit based on the individual loans being consolidated. For example, if one loan has 10 months of credit and another has 80 months, a Direct consolidation loan combining those two loans could receive 80 months of credit towards loan forgiveness under the IDR Account Adjustment.

What Borrowers Need to Know About Student Loan Forgiveness Under IDR Account Adjustment

The Education Department will automatically implement the IDR Account Adjustment for borrowers with government-held federal student loans, including Direct federal student loans and some FFEL-program loans administered by the department.

Borrowers with commercially-held FFEL loans and other non-Direct loans must consolidate those loans before December 31, 2023, to qualify for relief. Other borrowers may also want to consider consolidation (such as those with a mix of older and newer loans, and Parent PLUS borrowers needing access to the Income-Contingent Repayment plan). However, consolidation may have drawbacks that borrowers should consider.

The Biden administration is expected to begin discharging federal student loans under the adjustment later this year for borrowers who immediately qualify for student loan forgiveness. All other borrowers will see the benefits of the adjustment sometime in 2024.

Pakistan’s Rupee Hits Record Low as Violence Erupts Over Ex-PM’s Detention

May 15, 2023 Staff ReporterMoney 0

Following a court order extending the detention of former Pakistani Prime Minister Imran Khan, violence erupted in the country triggering rupee to slump to a record low.

The rupee fell by 1.9% and closed at an all-time low of 290.22 against a dollar based on State Bank of Pakistan data. On Thursday, bonds maturing in 2031 fell to their lowest point since November at 33.10 cents to the dollar due to these circumstances.

In response to the protests, Pakistan’s government requested the aid of their military to end the violent events after a judge ordered the 70-year-old politician to be in the custody of the anti-graft agency for eight days. He was detained on Tuesday.

Impacted by this unrest is Pakistan’s ongoing negotiations with the International Monetary Fund to restart its bailout program, without which the country would fall into default.

“The rupee is weakening on economic and political uncertainty, especially the delay in the IMF loan program,” said Owais-ul-Haq, a currency trader at Arif Habib Ltd. “The arrest of Imran Khan just worsened the situation.”

Biden Faces Legal Risks, Financial Peril With 14th Amendment

May 15, 2023May 20, 2023 Staff ReporterMoney, USA 0

The extraordinary measure of President Biden invoking the 14th Amendment to prevent a national default could potentially result in legal ambiguity surrounding the already delicate financial system. Markets are worried about a possible default, which might occur as early as June 1 if Biden and legislators fail to reach an agreement. However, if the president were to take unilateral action, the financial system could suffer, with the risk of a default being entangled in legal disputes.

On Tuesday, President Biden acknowledged that discussions have taken place regarding the possibility of invoking the 14th Amendment to avoid a default, but added, “I don’t think that solves our problem now. I think that only solves your problem if, once the court has ruled that it does apply for future endeavors.” If he were to act on his own, Biden might face lawsuits from Treasury bondholders waiting for debt payments from the US. Additionally, Republican lawmakers could sue the president, claiming that he violated Congress’s authority over federal spending and taxation by disregarding the debt limit.

Legal questions loom over strategy

The legal debate centers on a clause stating that the US sovereign debt “shall not be questioned.” This amendment was adopted after the Civil War, and the relevant section pertains to suppressing future insurrections. Nevertheless, some legal experts believe it also grants the president authority to instruct the Treasury to continue borrowing money and disregard the debt limit.

David Super, a constitutional law expert at Georgetown University, said that if the president deems the debt limit unconstitutional, he can invoke the 14th Amendment. However, he cautioned about the severe consequences of such an unprecedented move. “Given how polarized the country is and how determined the Republicans are to use the debt limit for extortion, they surely would arrange for somebody to sue,” Super mentioned.

He added that if someone with standing to sue were found, “the courts could determine whether the president’s determination is correct and could conceivably order him to cease making payments.” However, this would be a monumental decision and likely wouldn’t happen quickly.

Jonathan Turley, a legal scholar at George Washington University, warned that “any litigation would come with potentially high political and legal costs.” He explained that “the House has the constitutional control of the purse and is using that authority to seek budget cuts in future expenditures, including some not previously approved by Congress.”

Senior White House officials reportedly consider the notion of Biden acting unilaterally as a last-resort emergency measure. Treasury Secretary Janet Yellen cautioned that invoking the 14th Amendment to avoid a default could spark a “constitutional crisis.”

This situation places the Biden administration in a legal predicament. The debt limit seems to conflict with both the 14th Amendment and laws requiring the federal government to make specific expenditures, such as Social Security payments. Although other ideas, like minting a trillion-dollar coin, have been suggested, Biden has publicly dismissed them.

Financial fallout

The Biden administration is considering all potential options to avert a disastrous default, which could undermine global confidence in US debt, increase borrowing costs for Americans, and cause millions of job losses, as per Moody’s Analytics analysis. The US Treasury market serves as the foundation of the financial system since all assets are compared to historically risk-free Treasury bonds.

However, experts warn that utilizing the 14th Amendment—where the Treasury Department continues to issue debt beyond the statutory limit—poses its own risks to financial stability. During an extended period of legal uncertainty, buyers might perceive newly-issued Treasury bonds as riskier or illegitimate, potentially causing interest rates to skyrocket. Long-term political instability could also drive investors away from the US market, experts noted.

If a court issued an injunction preventing the federal government from issuing new debt or invalidating bonds issued after the limit was breached, the nation could fall into default anyway. “One of the great virtues of US government debt is that there’s no credit risk. If that debt is invalidated, suddenly you’ve introduced it,” said Brian Knight, senior research fellow at the Mercatus Center at George Mason University.

On the other hand, some experts believe that if the Treasury Department were allowed to issue debts beyond the limit, it would find plenty of buyers interested in securing higher interest rates until the crisis is resolved. “The debt that would be issued to bridge this period would end up being very, very short-term debt,” said Daniel Alpert, managing partner of Westwood Capital. “First, you’ll see a spike in rates, but when people actually start getting paid, that will calm down.”

The financial system is still recovering from three of the four largest bank collapses in US history. Banks are holding massive unrealized losses on Treasury bonds that lost value when the Federal Reserve aggressively increased interest rates. Opponents of the debt limit view the 14th Amendment as a long-term solution to credit risk that arises every time the GOP threatens to block an increase. Prominent bankers, including JPMorgan Chase CEO Jamie Dimon, have called on Congress to abolish the debt ceiling.

The constitutionality of the debt limit has not been challenged in court until recently. On Monday, the National Association of Government Employees sued to end the debt limit, stating that the statute grants the president “unchecked discretion to cancel or curtail the operations of government approved by Congress without the approval of Congress.” The union, representing 75,000 federal government workers, cited the 14th Amendment in its complaint. “This litigation is both an effort to protect our members from illegal furloughs and to correct an unconstitutional statute that frequently creates uncertainty and anxiety for millions of Americans,” said David Holway, the union’s president, in a statement. The lawsuit targets Biden and Yellen. If a court ruled in the union’s favor, the Biden administration could simply choose not to appeal, according to legal experts.

Russia’s Richest Billionaires Added $152 Billion To Their Wealth in 2022

April 27, 2023 Staff ReporterBusiness, Money 0

Russia’s richest individuals have seen their collective wealth increase by $152 billion over the past year, according to Forbes Russia. The billionaires on Forbes’ list increased to 110, up 22 from last year, and their total wealth has grown to $505 billion. However, the list would have been longer if it were not for five billionaires renouncing their Russian citizenship.

The Forbes’ report highlights that “last year’s rating results were also heavily influenced by predictions about the Russian economy, which led to apocalyptic projections”. Forbes said the total wealth of Russia’s billionaires had reached $606 billion in 2021, before the Ukrainian war.

Despite the war, which led to the West imposing severe sanctions on Russia’s economy, the country was able to sell oil, metals, and natural resources to global markets, particularly to China, India, and the Middle East. Last year, the price of Urals oil, the lifeblood of the Russian economy, averaged $76.09 per barrel, up from $69 in 2021, and fertilizer prices were high.

The International Monetary Fund (IMF) raised its growth forecast for Russia in 2023 to 0.7% from 0.3% earlier this month, but lowered its forecast for 2024 to 1.3% from 2.1%, citing labor shortages and the exodus of Western companies that could harm the country’s economy.

According to Forbes’ Russia list, Andrei Melnichenko, who has made a fortune in fertilizers, was the country’s richest man, with an estimated worth of $25.2 billion, more than double his estimated worth from last year. Vladimir Potanin, the president and biggest shareholder of Nornickel, the world’s largest producer of palladium and refined nickel, was ranked as the second wealthiest person in Russia with a fortune of $23.7 billion. Vladimir Lisin, who controls steelmaker NLMK and was ranked as Russia’s richest person last year, was placed third on the Forbes Russia list with a fortune of $22.1 billion.

Over the past year, several billionaires renounced their Russian citizenship, including DST Global founder Yuri Milner, Revolut founder Nikolay Storonsky, Freedom Finance founder Timur Turlov and JetBrains co-founders Sergei Dmitriev and Valentin Kipyatkov. The Forbes’ report suggests that Russian domestic demand has remained strong despite years of sanctions, as new billionaires have emerged from snacks, supermarkets, chemicals, building, and pharmaceuticals.

The billionaires on the Forbes’ list made their fortunes during the Soviet Union’s collapse, and a small group of tycoons known as the oligarchs convinced the Kremlin to hand over control of some of the world’s largest oil and metals companies. The privatization deals often catapulted the tycoons into the league of the world’s wealthiest individuals. Under Putin, original oligarchs, such as Mikhail Khodorkovsky and Boris Berezovsky, were stripped of their assets, which eventually ended up under the control of state companies typically run by former spies.

Western sanctions are viewed as clumsy and even racist by many of Russia’s billionaires. Although sanctions have disrupted some industries, the country has diversified its exports and attracted investments from non-Western economies. Also, domestic demand has remained strong, with middle-class Russians weathering the economic downturn.

Russia’s billionaires have become more prominent in the nation’s politics, with some billionaires financing opposition parties, while others support Putin’s United Russia party. The Kremlin has vigorously resisted Western efforts to curb the influence of Russian billionaires, even as several have become subject to international investigations, raising suspicions of corruption and fraud.

The nation’s economic progress in recent years has prompted some observers to question whether Putin’s aggressive foreign policy and authoritarian rule are sustainable. The Kremlin has used the nation’s newfound wealth to promote its agenda abroad, including military interventions in Syria and the Middle East. However, Russia’s economic growth is now showing signs of stagnation. The nation’s GDP growth rate has been below 2% since 2013, and economists predict it will stay that way until structural reforms are undertaken.

In conclusion, Russia’s billionaires have seen a sharp increase in their collective wealth over the past year, driven by high commodities prices and their ability to diversify into non-Western economies. Despite years of sanctions and geopolitical tensions, their domestic businesses have remained buoyant. However, geopolitical risks and structural challenges could threaten the nation’s continued economic growth.

IRS Isn’t Calling You. It Isn’t Texting Or Emailing You, Either

April 12, 2023 Staff ReporterMoney 0

Your phone rings and it’s someone claiming to be from the Internal Revenue Service. Ominously, they say the police will be knocking on your door in minutes if you don’t pay your taxes right then and there.

Don’t fall for it. It’s not the IRS getting in touch with you.

Since 2018, more than 75,000 victims have lost $28 million to scammers impersonating the IRS over the phone, email, texts and more.

That’s according to data from the Federal Trade Commission, which enforces consumer protection laws, including those against fraud. The true number is almost certainly even higher, including reports to other agencies and victims who don’t make reports. And there are other types of tax scams altogether, like phony tax preparers and tax identity theft.

“Email and text scams are relentless, and scammers frequently use tax season as a way of tricking people,” IRS Commissioner Danny Werfel said in a news release last month.

As Tax Day approaches, here’s how the IRS actually contacts taxpayers and how you can spot imposters.

How the IRS will really contact you

“If the IRS contacts you, they’re never going to contact you first via email or telephone — they’re going to contact you in writing a letter,” says Christopher Brown, an attorney at the FTC.

A call or a visit usually only happens after several letters, the IRS says — so unless you’ve ignored a bunch of letters about your unpaid taxes, that caller claiming to be from the IRS is probably lying.

The IRS won’t threaten to have the police arrest you or demand that you make an immediate payment with a specific payment type, like a prepaid debit card. “That’s a sure sign that it’s a scam,” Brown says.

Taxpayers can always question or appeal what they owe, according to the IRS. Caller ID can be faked, so don’t think it’s real just because the caller ID says IRS, Brown says.

If you think a caller claiming to be from the IRS might be real, the IRS says you should ask them for their name, badge number and callback number, which you can verify with the Treasury Inspector General for Tax Administration by calling 1-800-366-4484. Then, you can either call the IRS back or report the scammer here.

What scams often look like

Aggressive and threatening scam phone calls impersonating the IRS have been a problem for years. Callers demand immediate payment, often via a specific payment method, and threaten arrest, driver’s license revocation and even deportation if you fail to pay up or provide sensitive personal information.

There isn’t data on the most common contact methods specifically for IRS imposter scams, but for government imposter scams overall, phone calls are the most common, Brown says.

These scams spread into emails and texts. Known as phishing and smishing scams, respectively, they were featured on this year’s “Dirty Dozen” list, an IRS campaign to raise awareness about tax scams.

“People should be incredibly wary about unexpected messages like this that can be a trap, especially during filing season,” Werfel, the IRS commissioner, said.

People get texts or emails that say “Your account has been put on hold” or “Unusual Activity Report” with a fake link to solve the problem. Clicking on links in scam emails or texts can lead to identity theft or ransomware getting installed on your phone or computer.

But scammers are always evolving. “Initially what we saw more was the threat with a demand that you make a payment, but then there was that new twist, which is, ‘Let’s not threaten, let’s sort of entice,’ ” Brown says.

That newer tactic of luring people with promises of a tax refund or rebate is more often employed over email or text as a phishing or smishing scam, Brown says. But both the threatening and enticing tactics are still prevalent, and they can be employed through any method of contact.

Consumers who are victims of imposter scams can report them to the IRS or to the FTC.

Regardless of the specifics, here’s a good rule of thumb from the FTC for spotting scams: “The government doesn’t call people out of the blue with threats or promises of money.” (NPR)

Yellen Says, Climate Change Is ‘Existential Threat’

March 31, 2023 Staff ReporterEnvironment, Money 0

Treasury Secretary Janet Yellen on Wednesday pushed back against a GOP congressman who voiced skepticism about the threat of climate change, suggesting the issue was being used by the Biden administration to secure funding and was not a serious concern.

“Can you provide to me, or do you know any research on your own to justify this drastic climate change that we have to do today or the next four or five years this world’s going to come to an end?” Rep Jerry Carl (R-Ala.) asked Yellen at a hearing on the banking system.

When Yellen pointed to an “enormous amount of research” summarized by a United Nations group about the threat of climate change, Carl claimed that the global organization “makes a lot of money off the climate change scenario.”

“There is a strong scientific consensus and enormous body of research,” Yellen responded.

Carl, who is a member of the House Committee on Natural Resources, downplayed the significance of the changing climate by pointing to the environment in his home state of Alabama. Carl noted one could go 300 feet above sea level and find oyster shells in an embankment, then travel 40 feet below sea level and find a petrified forest under water.

Carl said he believes the literal definition of climate change, but questioned the idea that it is a grave threat to the planet. He argued that the issue of climate change was being used by the Biden administration so it could secure funding for its various priorities.

“The way it’s being used now is like a Trojan horse. Everything you want to use it for to get into the conversation is climate change related,” Carl said.

“We’re seeing enormous increases in concentration of carbon dioxide in the atmosphere,” Yellen said. “Where in America are we seeing that?” Carl asked.

“It’s a global phenomenon; it’s not just in the United States,” Yellen replied, noting that an increase in the intensity of hurricanes is another cause of concern.

“Climate change, I believe, is an existential threat, and we will leave a world to our grandchildren and great grandchildren that will become uninhabitable if we don’t address climate change,” Yellen continued. “We have let decades pass in which we have understood that this was a problem and not taken meaningful action.”

Rep. Mario Diaz-Balart (R-Fla.) said he believed there is general skepticism among critics of the Biden administration that the billions of dollars being spent on the environment will meaningfully change the temperature of the planet.

Yellen has made fighting climate change a key part of her work as Treasury secretary, arguing that the U.S. economy will suffer if the planet continues to warm. The department previously created a climate hub, a division meant to drive investments toward projects to reduce carbon emissions and insulate the economy from extreme weather and other risks.

The Inflation Reduction Act, the administration’s signature piece of legislation passed last year, contains $27 billion in funding for green banks, credit unions, housing finance agencies and projects to cut pollution and energy costs.

Think Tank CPR’s FCRA Suspended, Gets I-T Notice On Tax Exemptions

March 8, 2023 Staff ReporterIndia, Money 0

Centre for Policy Research (CPR), one of the leading public policy think tanks, said last week that it has been “intimated” by India’s Ministry of Home Affairs that its registration under the FCRA had been “suspended for a period of 180 days.”

Weeks before it was informed that its registration under the Foreign Contribution (Regulation) Act (FCRA) had been suspended, the Centre for Policy Research (CPR) received a show cause notice from the Income Tax Department, asking why the registration granting it tax exemptions should not be cancelled.

The CPR had been granted tax exemption status until 2027 under Section 12A of the Income Tax Act. That status has now been questioned by the I-T officials, who collected huge amounts of documents and data during a survey on September 7, 2022 and followed it up by dispatching over a dozen summons to its staff — from its senior researchers to the office peon.

The I-T Department challenged the tax exemptions with a 33-page show cause notice, sent on December 22, 2022 alleging that the CPR was in violation of being involved in activities which were “not in accordance with the objects and the conditions subject to which it was registered”.

The I-T Department included in the show cause notice several observations and allegations not directly related to its operations as an entity.

For instance, there is a list of 19 persons, described as “non-filers” – mostly members of its staff who have either not filed or filed their I-T returns irregularly. The office peon has been included in the list of “non-filers” and the CPR asked to explain how the Rs 2.49 crore given to these individuals collectively (mostly remunerations paid between 2017 and 2021) were payments related to the objectives of the CPR.

The I-T has described the “non-filers” as “persons whose “genuineness is questionable” or not as per the mandate of the CPR. After scrutinizing accounts, the I-T Department has also questioned activities of the think tank such as bearing the cost of publishing books of its employees.

The show cause notice contains a list of seven authors and observed that while CPR has subsidized the publication of their books, it does not draw any financial benefit from it.

The CPR has been asked to explain how publication of books could be categorized as a “charitable” activity, and told to submit all expenses incurred during the book launches. The CPR has been challenging the allegations contained in the post-survey summons and notices received.

On the issues raised by the I-T in its show cause notice, Yamini Aiyar, President and Chief Executive of CPR, told The Indian Express, “There is no question of our having undertaken any activity that is beyond our objects of association and compliance mandated by law.”

“Our work and institutional purpose is to advance our Constitutional goals and protect Constitutional guarantees. We are absolutely confident that the matter will be resolved speedily, in fairness and in the spirit of our Constitutional values.”

Some of the ineligible “activities” listed by the I-T Department include:

* Funds to the tune of Rs 10.19 crore (since 2016) from the Namati-Environmental Justice Program. These funds, according to the I-T Department, “are used to file litigation and complaints instead of carrying out any research or educational activity”. The CPR has been asked to provide details of how funds received under the Namati project were used and how they relate to the objectives of the CPR.

* The I-T has show caused CPR for being “involved” in the Hasdeo movement (launched by activists against coal mining in the Hasdeo forests of Chhattisgarh) through the Jan Abhivyakti Samajik Vikas Sanstha (JASVS). The I-T has shown calculations that in the past four years, the JASVS received between 87%-98% of its donations from the CPR and, according to them, this too, “was not in pursuance of its approved objectives”.

* There are a whole bunch of allegations which have been conveyed to the CPR in the show cause notice on how they were in violation of provisions of the FCRA.

The show cause lists alleged “sub-grants” by the CPR and states that financials provided by the CPR show that its FCRA funds have got “mixed up” with its core funds. The observation, “CPR appears to be crediting the commercial receipts and foreign contribution in FCRA designated accounts and thus, there is an intermingling of funds, which is in violation of provisions of FCRA”.

Calculations have been provided to the CPR on how there was wide discrepancy between its annual receipts of funds as per their Income Tax filings and the funds received as per their account books. The “discrepancy” has been, for instance, calculated at Rs 1.43 crore for the year 2017-2018 to Rs 81.45 lakh for the year 2021-2022.

Yamini Aiyar told The Indian Express that replies to specific allegations could not be made by CPR since it would be outside the remit of the process and would undermine its objectivity and confidentiality.

“As an academic institution, whose primary objective is to produce high quality education and training related work, we enjoy tax exemption status accorded to us under Section 12 (A) of the Income Tax Act. Our work, including books written by our faculty, and research related partnerships are in pursuit of these objectives. We are in complete compliance with the law and are routinely scrutinised and audited by government authorities including the Comptroller Auditor General of India and the Ministry of Home Affairs, FCRA division. We have annual statutory audits and all our annual audited balance sheets are in the public domain,” she said. (The Indian Express)

Ajay Banga Wins Positive Reviews At G20 Finance Meeting

March 1, 2023 Staff ReporterMoney 0

(Reuters) – The U.S. nominee to lead the World Bank, ex-MasterCard CEO Ajay Banga, gained traction with leading members on Friday, a sign that he will likely have a smooth ride to confirmation by the bank’s executive board.

The finance ministers of France and Germany gave positive reviews to Banga, nominated on Thursday by U.S. President Joe Biden as a surprise choice to lead the institution’s transformation to fight climate change and other global challenges.

German Finance Minister Christian Lindner said on the sidelines of a G20 finance leaders in India that Banga‘s nomination was a “very remarkable” proposal because his private sector experience would be potentially helpful in mobilizing private investment in the fight against climate change and for development projects.

Lindner said that Germany would follow the nomination with “great attention” and expressed “sympathy” for the proposal.

The comments mark a turnabout from Tuesday, when German international development minister Svenja Schulze said the next World Bank chief should be a woman.

“I think he is a good candidate. I need to meet him to know a little bit more about him,” French Finance Minister Bruno Le Maire told Reuters.

Asked whether Europe would try to nominate its own choice, Le Maire said: “You know, we have this (U.S.) candidate, so I think it’s wise to meet him, get to know more about him.”

The G20 ministers meeting is being held on the outskirts of the Indian tech hub city of Bengaluru.

India’s finance ministry has not commented on the nomination of Banga, an Indian-born U.S. citizen, which played prominently in Indian media on Friday.

But the government was expected to support Banga, India’s new executive director at the International Monetary Fund, told Reuters in Washington.

Krishnamurthy Subramanian, the former top economic adviser to the Indian government, called the nomination “an elegant solution”.

ENSURING U.S. LEADER

The United States, the lender’s dominant shareholder, has chosen every World Bank president since the instititution’s founding at the end of World War Two.

U.S. Treasury Secretary Janet Yellen said she did not know whether there would be other nominees for the job, but said Washington moved quickly with a well qualified candidate to ensure that tradition would continue.

“… we’ve tried to find a nominee who was really well qualified and brings a unique set of skills to the job that we think will be attractive,” she said.

Other countries have until March 29 to nominate an alternative candidate and the World Bank board intends to announce a choice by early May.

But with the United States and European countries supporting Banga, along with some key emerging markets, a challenger would have almost no chance of succeeding and would be a largely symbolic effort to protest what is seen by many countries and stakeholders as a non-transparent selection process stacked for too long in Washington’s favour.

Yellen told reporters that Banga has “the right leadership and management skills, experience in emerging markets, and financial expertise” to lead the bank and reform it to boost lending on climate change, while maintaining its core anti-poverty mission.

Adani Group Stocks Rout Continues; Adani Enterprises Crashes Over 10%

February 24, 2023 Staff ReporterBusiness, Money 0

The rout in stocks of Adani group companies continued on Wednesday, as shares of all its firms fell tracking domestic equities. Adani Enterprises crashed 10.43 per cent, to close at Rs 1,404.85 on the BSE. ACC, meanwhile, tumbled 3.97 per cent, to Rs 1,755.20 on the Mumbai-based exchange.

Ambuja Cement fell 4.92 per cent, while Adani Power, Adani Transmission, and Adani Total Gas, were locked in 5 per cent lower circuit.

Investors continued to exit Adani firms as domestic markets fell sharply today. BSE Sensex crashed 928 points, or 1.53 per cent to 59,744.98. Nifty50 tumbled 272.40 points, to Science17,554.30.

The combined equity market value of Adani group’s 10 companies has slipped below $100 billion as firms have lost around Rs 11 lakh crore since the release of a report by US-based short seller Hindenburg Research on January 25. The report stated that the ports-to-power conglomerate was involved in “brazen stock manipulation and accounting fraud scheme.”

Adani Crisis May Spark Wider Financial Turmoil In India

February 9, 2023February 15, 2023 Staff ReporterIndia, Money 0

Both the Houses of India’s parliament were adjourned on Friday last week amid chaotic scenes as some lawmakers demanded an inquiry following the meltdown of shares in billionaire Gautam Adani’s group companies, which some fear could spark wider financial turmoil. Opposition parties continue to highlight that Life Insurance Corporations (LIC) of India’s and State Bank of India’s (SBI) high exposure to stocks in the Adani Group can have wider economic repercussions.

Shares in Adani companies recovered after sharp falls, but the seven listed firms have still lost about half their market value – or more than $100 billion combined – since U.S. short-seller Hindenburg Research last week accused the group of stock manipulation and unsustainable debt, Reuters reported.

The Reserve Bank of India on Friday said India’s banking sector is “resilient and stable” and the central bank maintains constant vigil on the lenders, in a statement issued in the light of the Adani crisis, triggered by a US-based short seller’s allegations of stock manipulation, fraud and use of tax havens by the Adani Group.

The stock rout led to Adani Group losing around $108 billion since Hindenburg Research published its report on January 24. But signs of recovery were visible on Friday.

But the government differs

Talking about the risks to the Indian banking system and lenders emanating from the ongoing crisis, Finance Minister Nirmala Sitharaman on Friday said that the country’s banking system is in a sound position. “They (LIC and SBI) have very clearly said that their exposure (to Adani Group stocks) is very well within the permitted limits and with valuation falling as well, they are still over profit. That is the word from the horse’s mouth,” Sitharaman said in an interview with CNBC-TV18.

The stock market turmoil created by the rout in Adani group shares is a “storm in a teacup” from a macroeconomic point of view, finance secretary TV Somanathan said on Friday, emphasising that India’s public financial system is robust. The senior-most bureaucrat in the finance ministry also said that movements in the stock market per se is not the government’s concern and there are independent regulators to take necessary action. Read more here.

Mukesh Ambani Regains The Crown As World’s Richest Indian

February 9, 2023February 15, 2023 Staff ReporterProfile, Money 0

As the rout in Adani group’s stocks triggered by short seller Hindenburg Research’s allegations touched $92 billion on Wednesday, as per news agency Bloomberg, business tycoon Gautam Adani lost his status as the world’s richest Indian to fellow Gujarati businessman and Reliance Industries chairman Mukesh Ambani.

The richest

Sixty-year-old Adani has now been pushed to the No. 15 spot on the list of world’s richest billionaires, compiled by Forbes, with his wealth now estimated at $75.1 billion. Sixty-five-year-old Ambani is at 9th position with a net worth of $83.7 billion. Over the last three years, Ambani and Adani have swapped positions as world’s richest Indian on several occasions.

With that, Ambani also became the world’s richest man from Asia, sharing the top-ten space in the Forbes list of billionaires with Elon Musk, Jeff Bezos, Larry Ellison, Warren Buffet, Bill Gates and Larry Page among others.

Brotherhood of billionaires

Adani groups, on Tuesday, secured a $2.5 billion share sale amid the short-seller storm, triggered by allegations of stock manipulation, accounting fraud and use of tax havens against the conglomerate.

While the heavy lifting was done by a $400 million investment from a conglomerate based in Abu Dhabi, a few other uber-rich surprisingly came to the last-minute defense of their compatriot.

People who’re neither financial institutions nor small investors bid for 3.3 times the stock reserved for them as a class. A Delhi-based industrialist, three Gujarati pharmaceuticals billionaires and a steel magnate from Mumbai were among the share sale’s white knights, according to the Economic Times. Read more here.

But, FPO cancelled

However, Adani Enterprises sprung up a surprise on Wednesday evening, announcing that it has “decided not to go ahead with the fully-subscribed Follow-on Public Offer” and assured that all proceeds will be refunded to investors. In a statement, it cited “unprecedented” market fluctuations and “extraordinary circumstances” to conclude that going ahead would not be “morally correct”.

Markets Surge As Fears Of The Economy Fade. Why The Optimists Could Be Wrong

February 9, 2023February 15, 2023 Staff ReporterMoney 0

Stocks have surged since the start of the year. The Nasdaq is up nearly 15% this year after posting its best January since 2001. And it’s not just stocks: bonds have risen and even bitcoin has made a roaring comeback, though all markets fell a tad on Friday.

This is all after a miserable 2022, when markets were hit hard by fears about surging inflation and about how the Federal Reserve was fighting it, with the biggest increases in the country’s interest rates since the early 1980s.

Today, hope has replaced that fear. Inflation has eased substantially and investors now believe the Fed will soon stop raising interest rates – and even cut them later this year to prop up a sagging economy.

And many on Wall Street no longer dread the worst about the economy, turning from their predictions of a big recession to hope that any downturn will be mild, or even that a recession may not happen at all.

But should there be this much optimism? Here’s why Wall Street is getting so excited about the economy – and why others believe it may end in tears.

The case for hope

The recent Wall Street gains could perhaps be explained in a single word: inflation. There are plenty of signs that inflation is starting to ease substantially after reaching its highest levels in around 40 years last year.

Consumer prices rose at an annual rate of 6.5% in December, down from a peak of 9.1% in June. The Fed’s preferred inflation yardstick is also down substantially from its recent peak.

And economists are hopeful inflation will continue to ease. Supply chains, for example, have improved. And wage gains have softened in recent months, allaying economists’ worries that rising wages could push up prices.

Prices are still high, of course, in fact, too high for the Fed’s comfort. But even Fed Chair Jerome Powell is expressing some hope about inflation while warning, repeatedly, that the fight against inflation is far from done.

Recession? What recession?

Then, there are the shifting views on the economy. In 2022, markets were bracing for the worst as they looked to history.

In the past, the Fed’s aggressive interest rate hikes to tame inflation have sparked recessions.

Higher interest rates can have all kinds of negative effects on the economy: mortgages get more expensive, which hurt the housing market; companies pull back on spending; and so forth.

But now, many on Wall Street believe any recession could be mild, like the short one during the pandemic in 2020 that barely made a blip in the markets (the S&P500 surged 16% that year, while the Nasdaq soared 44%).

Some economists even believe the economy may not suffer a recession at all, slowing down into a “soft landing,” or avoiding a contraction and a spike in unemployment.

That optimism is not completely unjustified.

For one, the labor market is very strong. Data on Friday showed U.S. employers added a whopping 517,000 jobs, much stronger than most forecasts, while the unemployment rate dropped to a 53-year low.

“The labor market continues to be very resilient with no clear signs of stopping yet,” investment bank Morgan Stanley said in a note to clients on Friday.

Investors are also taking comfort in earnings, which have largely proven resilient, though there are exceptions, notably, in the technology sector.

GM, for example, reported this week a surge in profits in the most recent quarter. Then again… There is one big downer in the market, however: the Fed. Some optimists believe the Fed will make an abrupt U-Turn and pivot to cutting interest rates as early as this year, after raising them one last time, likely at its March meeting.

That would mean the Fed would go from fighting inflation by slowing down the economy to doing exactly the opposite — revving up that very same economy with cheaper, easier borrowing.

The big issue with that premise? That’s not what the Fed is saying it plans to do at all. Powell, in his news conference on Wednesday may have sounded hopeful about the economy, but he also said it’s way too premature to declare victory against inflation, and he reiterated the Fed has no intention of cutting interest rates any time soon.

The message does not appear to be swaying the optimists on Wall Street so far, however. Some investors still believe the Fed is being too cautious about inflation. After all, the central bank for months played down inflation by calling it “transitory” until it suddenly reversed course and aggressively raised interest rates.

“The Fed is still firmly in the driver’s seat, but the market continues to fight the Fed, believing that they will pause and/or cut rates much sooner than they’ve guided,” said Amanda Agati, the Chief Investment Officer of PNC Financial Services.

But there are big dangers in fighting the Fed, as the famous market adage goes.

The Fed is the most powerful economic player in the world, with the ability to move markets from New York to Hong Kong with a single word.

And so far, the Fed has said, clearly, that the fight against inflation will go on. And is the economy really that strong, anyway?

Then, beyond the Fed, there’s the risk that plenty can still go wrong for the economy. For one, inflation could prove much more entrenched than the Wall Street bulls expect.

A strong labor market is great for workers, but it remains a major worry for the Fed given that it can keep inflation elevated, forcing companies keep wages high and fueling more consumer spending by those who are employed.

What tracking one Walmart store’s prices for years taught us about the economy

Furthermore, there’s plenty of other data that raises the prospect that the economy could end up hitting a recession after all.

The housing market, for example, has taken a major hit since the Fed started raising rates. And retail sales are showing signs of declining, a big concern in an economy so reliant on consumer spending. Market bulls are fond of noting that “as goes January, so goes the year,” an expression that refers to a historic trend in which strong January gains tend to portend a good year for Wall Street.

But that’s not always the case. In 2001, the Nasdaq similarly rallied in January, ending the month up 12%. It did not end well. The economy skidded into a recession, and the Nasdaq slumped a whopping 30% over the next 11 months, with losses magnified by the Sept. 11 attacks. As it turns out, all that optimism in January 2001, proved to have been misplaced.

Gautam Adani Lost Half His Wealth In A Flash

February 9, 2023February 15, 2023 Staff ReporterMoney 0

CNN — Less than two weeks ago, Gautam Adani was the fourth-richest person in the world. With a personal fortune estimated at $120 billion, the self-made Indian industrialist was wealthier than either Bill Gates or Warren Buffet.

Then Hindenburg Research, an American short seller with bets against Adani’s companies, accused him of pulling off “the largest con in corporate history.”

Adani’s firms have lost $110 billion in value since then, and his own wealth has been halved to little more than $61 billion as investors pull their support.

While the Adani Group has condemned the report as “baseless” and “malicious,” investor questions about its claims linger, and the fallout is growing. Adani’s business partners and lenders are clarifying their ties to the conglomerate, while India’s federal government is reportedly launching an investigation of his business after an outcry by opposition lawmakers.

Here’s what you need to know.

Who is Gautam Adani?

Gautam Adani is a 60-year-old tycoon who founded the Adani Group more than 30 years ago.

A college drop-out, he built a sprawling business empire that spans infrastructure, logistics, energy production and mining. That success has earned him comparisons to John D. Rockefeller and Cornelius Vanderbilt, who created vast monopolies during America’s Gilded Age in the 1800s.

He was Asia’s richest man, and last September briefly surpassed Jeff Bezos to become the second-wealthiest person in the world. He’s also seen as a close ally of India’s prime minister, Narendra Modi.

What are the accusations against him?

Hindenburg Research stunned investors in late January when it published a report accusing Adani and his companies of widespread fraud and “brazen stock manipulation” that it alleged took place over decades. The firm said it had taken a short position in Adani Group companies, meaning it would benefit from a drop in their value.

Hindenburg pitched 88 questions to Adani that cast doubt on his conglomerate’s financial health. Those ranged from requests for details on the group’s offshore entities to why it has “such a convoluted, interlinked corporate structure.”

The Adani Group has said it’s considering legal action in response to the claims. It charged Hindenburg with launching “a calculated attack on India” and said the investment firm is only interested in its own financial gain. But analysts say Adani Group hasn’t convincingly answered the questions raised by the report.

What do investors think?

Investors, spooked by the claims, are bailing, not wanting to get caught on the wrong side of a trade. Shares of Adani Enterprises, Adani’s flagship firm, have plummeted almost 55% since Hindenburg’s report was published on January 24.

The company is now struggling to raise new funding as a result. On Wednesday, Adani Enterprises abruptly abandoned a $2.5 billion deal to sell shares, just 24 hours after it was sealed.

Stocks of most Adani Group companies slumped again on Friday. India’s stock exchanges halted trading in five listed Adani firms after their shares crashed by the daily limits, set at 5% and 10%.

Meanwhile, TotalEnergies, a major business partner, said Adani had agreed to let one of the “big four” accounting firms carry out a “general audit.” There was no confirmation from Adani.

The French energy giant described its $3.1 billion exposure to Adani, via joint investments in India, as “limited”. It also said these partnerships were “undertaken in full compliance with applicable — namely Indian — laws.”

What happens next?

The wave of selling is raising questions about how Adani’s businesses will continue to cover their costs.

The large debt load of Adani firms — one of the concerns raised by Hindenburg — is under the microscope. Ratings agency Moody’s said Friday that the turmoil was likely to reduce the group’s ability to raise capital.

In a statement Wednesday night, Adani stressed that his business remains on solid footing, and that executives would review its capital market strategy “once the market stabilizes.”

“Our balance sheet is very healthy with strong cashflows and secure assets, and we have an impeccable track record of servicing our debt,” he said.

The consequences of the sell-off may not be contained to Adani. Indian banks that hold Adani Group assets could also be affected if the value of those holdings continues to drop.

The Reserve Bank of India said Friday that the banking sector “remains resilient and stable” based on its latest assessment and pledged to continue to monitor the situation.

In its first statement on the recent market turmoil, the Securities and Exchange Board of India (SEBI) said Saturday that it had observed “unusual price movement in the stocks of a business conglomerate.” It said that if any information comes to SEBI’s notice,” it would be examined and “appropriate action” would be taken.

The market regulator added that it “is committed to ensuring market integrity.”

India Inc. on the defensive

At the same time, the ordeal is the source of growing political turmoil in New Delhi. Opposition lawmakers in India have demanded a probe into the Hindenburg report. They staged a protest in the country’s parliament on Wednesday while the country’s finance minister presented the annual budget.

Their demands that normal business be suspended Friday to allow an emergency debate on the Adani crisis led to an uproar, resulting in the adjournment of both houses of parliament until Monday.

“Action is being taken against Adani all over the world, but PM Modi is quiet,” the main opposition Congress party tweeted. “When will our govt take action?”

Questions about the health of Adani’s empire are clouding the outlook for India Inc., which just weeks ago was out in force at the World Economic Forum in Davos, Switzerland touting opportunities for foreign investors.

The country’s emissaries leaned into its relatively robust economic outlook. The World Bank projected last month that India would log the strongest economic growth of any major economy this year.

“The Adani saga has opened a big can of worms,” said Manish Chowdhury, head of research at brokerage Stoxbox. “The India story is looking weak” to foreign investors now, he added.(CNN.COM)

Shah Rukh Khan, Only Indian On World’s Richest Actor List

January 17, 2023 Staff ReporterCinema, Money 0

Bollywood actor Shah Rukh Khan with his more than three decades of work in the film industry has garnered millions of fans all over the world and an estimated net worth of ₹627 million ($770 million), making him the richest actor in Asia and fourth richest actor all over the world.

Beating famous actors like Tom Cruise, Jackie Chan, and George Clooney, Shah Rukh Khan took the fourth position in the list of eight richest actors of the world released by World of Statistics.

Shah Rukh Khan who is ready to make his comeback with his action thriller Pathan in Janaury 2023 had been away from movies for a period of almost four years sans his cameos in R. Madhavan’s Rocketry: The Nambi Effect and Ayan Mukerji’s Brahmastra Part 1: Shiva. The richest actor according to this list was Jerry Seinfeld with a net worth of ₹82 billion ($1 billion). The American actor tied with Diary of a Black Woman fame Tyler Perry at $ 1 billion. They were followed by Dwayne Johnson at ₹64 billion ($800 million).

Richest actors in the world: Jerry Seinfeld: $1 Billion Tyler Perry: $1 Billion Dwayne Johnson: $800 million Shah Rukh Khan: $770 million Tom Cruise: $620 million Jackie Chan: $520 million George Clooney: $500 million Robert De Niro: $500 million

Dr. Aarti Pandya Defends the Decision to Settle the Case Without any Admission of Liability or Wrongdoing

January 17, 2023 Staff ReporterCommunity, Money 0

“Rather than continue to expend significant time and resources defending herself against these unfounded allegations, which were initially filed in 2013, Dr. Pandya made a business decision to resolve the case without any admission of liability or wrongdoing so she can go back to serving her patients,” Dr. Aarti Pandya’s attorney said in a statement.

Dr. Pandya, an Indian American doctor had recently agreed to pay $1,850,000 for allegedly billing Medicare for eye surgeries and diagnostic tests that were allegedly not medically required.

However, Dr. Pandya denies doing anything wrong. Dr. Pandya has served as an ophthalmologist in the Conyers, Rockdale County area for decades. Dr. Pandya has steadfastly maintained that she did not engage in improper billing or otherwise fail to properly treat her patients and bill for their care.

As per the statement issued by the Attorney, “Dr. Pandya has been defending herself in a lawsuit initiated by her former office manager, Laura Menchion Dildine, that accused Dr. Pandya of improper billing in violation of the False Claims Act.”

The attorney’s statement questioned the credibility of Ms. Dildine, describing her as “a convicted felon who was solely responsible for billing and coding while employed by Dr. Pandya at her office in Conyers, Georgia.” The statement went on point out how “After Dr. Pandya refused to write an opioid prescription for Ms. Dildine, Ms. Dildine began using Dr. Pandya’s name to commit prescription fraud while employed as office manager.”

Responding to the report, Dr. Pandya said she has been defending herself in a lawsuit initiated by her former office manager, Laura Menchion Dildine, that accused her of improper billing in violation of the False Claims Act. The statement said Dildine is a convicted felon who was solely responsible for billing and coding while employed by Dr. Pandya at her office in Conyers, Georgia.

“After Dr. Pandya refused to write an opioid prescription for Dildine, she (Dildine) began using Dr. Pandya’s name to commit prescription fraud while employed as office manager,” the statement alleges.

As per Dr. Pandya’s attorney, Ms. Dildine was arrested at the office of Dr. Philip Newman, another ophthalmologist in Conyers, Georgia, and was jailed by the Newton County Sheriff under felony charges. Ms. Dildine was employed by Dr. Newman as a biller at the time of her arrest, and resumed her employment with Dr. Newman after being released on bail. On June 16, 2014, Ms. Dildine was arrested again and charged with felony fraud/forgery and jailed at the Rockdale County Jail.

According to Piedmont, Dr. Pandya has been highly appreciated by her patients with a score of 4.5 out of 5 ratings with reviews by 289 ratings by her patients. (https://doctors.piedmont.org/provider/Aarti+Pandya/391123)

Dr. Arati Pandya, MD is an Ophthalmology Specialist in Conyers, GA and has over 28 years of experience in the medical field. She is affiliated with Piedmont Rockdale Hospital. Dr. Pandya, who had graduated with a Medical Degree from the University of North Carolina at Chapel Hill School of Medicine, completed her Graduate Medical Education in Ophthalmology at the University of Kentucky in Lexington , Kentucky.

She is Board Certified by the American Board of Ophthalmology. Dr. Pandya, says, she looks forward to continuing to serve her patients and the community now that this case is behind her.

As per reports, to protect federal healthcare programs and beneficiaries going forward, Pandya and the Pandya Practice Group have entered into a detailed, multi-year Integrity Agreement and Conditional Exclusion Release (IA) with the Office of Inspector General.

“We must assure patients and taxpayers that healthcare is dictated by clinical needs, not fiscal greed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This settlement should serve as a reminder that the FBI will not tolerate healthcare providers who engage in schemes that defraud the industry and put innocent patients at risk.”

Dr. Pandya however, said she looks forward to continuing to serve her patients and the community now that this case is behind her. She said she remains committed to providing quality patient care for years to come.

US Treasury Secretary Warns Of Default On Debt, With Catastrophic Consequences

January 17, 2023January 30, 2023 Staff ReporterMoney, USA 0

The United States Treasury Department has stated the US could default on its debt as soon as June, setting up one of the first major battles on Capitol Hill after Republicans took control of the House.

The US will reach the debt limit on January 19 and then “extraordinary measures” will need to be taken, Treasury Secretary Janet Yellen wrote in a letter to House Speaker Kevin McCarthy. She said that the Treasury Department will pursue those measures, but they will only last a limited amount of time.

It is unlikely that the government will exhaust its cash and the “extraordinary measures” before early June, though she said there is “considerable uncertainty” around that forecast, Yellen wrote. She urged lawmakers to “act in a timely matter” to increase or suspend the debt limit.

The Treasury Department said Friday the US could default on its debt as soon as June, setting up one of the first major battles on Capitol Hill after Republicans took control of the House.

“Failure to meet the government’s obligations would cause irreparable harm to the US economy, the livelihoods of all Americans, and global financial stability,” she wrote.

The debt limit is the maximum that the federal government is allowed to borrow, after Congress set a level more than a century ago to curtail government borrowing. Congress has in the past raised the debt limit to avoid a default on US debt that economists have warned would be “financial Armageddon.” That’s what lawmakers did in late 2021 following the last standoff over the debt ceiling.

The immediate measures include some accounting maneuvers involving the Civil Service Retirement and Disability Fund, the Postal Service Retiree Health Benefits Fund and the Federal Employees Retirement System Thrift Savings Plan.

However, these moves will not affect retirees’ ability to access their savings, experts said. The funds will be made whole once the impasse is settled, Yellen wrote.

‘Not the time for panic’

Yellen’s letter reinforced that the debt ceiling limit is an issue that Congress will have to deal with soon. But it’s not an immediate problem, experts said. “This is not the time for panic. We are many months away from the US being unable to meet all of its obligations,” said Shai Akabas, director of economic policy at the Bipartisan Policy Center. “But it is certainly a time for policymakers to begin negotiations in earnest.”

Just how long the Treasury Department can continue the “extraordinary measures” will depend in part on how much 2022 tax revenue the government collects this spring. Also, inflation and interest rates have risen faster than some experts estimated last year, and new policies, including the student loan forgiveness program, were introduced, potentially shortening the window.

House Republicans are preparing contingency plans, but dealing with the debt ceiling limit will not be an easy task for Congress, especially now that the GOP has taken control of the House. It is expected to unleash a battle between conservatives GOP members, who want to tie any lifting of the limit to spending cuts, and Democrats, who fiercely oppose any reductions.

The Washington Post first reported the emergency plans. McCarthy, in part of his negotiations to become speaker, promised to pass a proposal by the end of March telling the Treasury Department which payments should be prioritized if the debt ceiling is breached, GOP Rep. Chip Roy confirmed to CNN.

Roy, one of the key players in the standoff over McCarthy’s speakership, cautioned that the contours of the proposal are still being worked out, noting there are several different versions of a payment prioritization plan circulating inside the House GOP.

McCarthy is stuck in the middle, with his party holding only a razor-thin majority in the chamber. Also, any member can call for a motion to vacate the speaker’s chair, one of several concessions McCarthy made to gain the top post after 15 rounds of voting last week.

At a news conference, McCarthy took a hard line over the debt limit. Asked if he could guarantee that Republicans would provide the votes necessary to raise the debt ceiling, McCarthy said: “We don’t want to put any fiscal problems to our economy and we won’t, but fiscal problems would be continuing to do business as usual.”

McCarthy also said he “had a very good conversation with the president when he called me, and I told him I’d like to sit down with him early and work through these challenges.”

Republicans, he said, would not allow “spending money wastefully.” Senate Majority Leader Chuck Schumer told CNN he thinks Republicans will ultimately “come to reality” and raise the limit. “If you’re worried about inflation, default would be huge,” Schumer said.

Further complicating the situation is the fact that the debt ceiling negotiations will likely be tied to the fiscal year 2024 federal spending package, which Congress must pass before October 1 or risk a government shutdown.

The debt ceiling was last raised in December 2021 to $31.4 trillion.

The deadline comes sooner than some experts had expected. They were predicting the debt ceiling limit would not be breached until later this year, when the Treasury Department would have to start taking extraordinary measures to avoid defaulting on the government’s obligations.

A default could cause chaos

Goldman Sachs warned last month that a close call could set off turmoil on Wall Street that causes losses in the retirement accounts and investment portfolios of everyday Americans.

“It seems likely that uncertainty over the debt limit in 2023 could lead to substantial volatility in financial markets,” Goldman Sachs economists wrote, noting that the 2011 standoff helped cause a deep selloff in the US stock market.

Beyond markets, Goldman Sachs said a failure to raise the debt limit in time “would pose greater risk to government spending and ultimately to economic growth than it would to Treasury securities themselves.”

That’s because in order to avoid a default on US debt, the federal government would shift money around to keep paying interest on Treasuries. That would create a massive hole that would need to be filled by delaying a host of other payments — including ones that millions of Americans count on such as paychecks to federal employees, benefits to veterans and Social Security payments. “A failure to make timely payments would likely hit consumer confidence hard,” Goldman Sachs wrote.

White House says no concessions or negotiations.

The White House said Friday it will not offer any concessions or negotiate on raising the debt ceiling. “We will not be doing any negotiation over the debt ceiling, but broadly speaking, at the start of this new Congress, we’re reaching out to all the members … making sure that we have those connections with those new members,” White House press secretary Karine Jean-Pierre said.

She said in the past “there’s been a bipartisan cooperation when it comes to lifting the debt ceiling, and that’s how it should be.”

“It should not be a political football,” she added. “This is not political gamesmanship, and this should be done without conditions.”

Asked why Yellen was notifying Congress just six days before the debt limit is reached, Jean-Pierre referred those questions to Treasury, but said the “sooner Congress acts the better.”

“Even the prospect of not raising the debt ceiling will damage the full faith and the credit of our nation,” she said. “There’s going to be no negotiation over it, this is something that must get done.”

7 Changes Considered By Congress For Retirement Beneficiaries

December 23, 2022 Staff ReporterMoney 0

There soon may be new retirement rules in place that could make it easier for Americans to accumulate retirement savings — and make it less costly to withdraw them — if lawmakers pass a major spending package this week.

The retirement savings provisions – known as Secure 2.0 – were drawn from a House-passed bill and bills that were passed by two Senate committees.

“[SECURE 2.0] will help increase savings, ensure greater access to workplace retirement plans, and provide more workers with an opportunity to receive a secure stream of income in retirement,” said Thasunda Brown Duckett, president and CEO of TIAA, one of the largest US retirement service providers.

Here’s a look at seven of the provisions in the package, known on Capitol Hill as an omnibus, based on a breakdown from the Senate Finance Committee.

1. Require auto enrollment in 401(k) plans

Most employers starting new workplace retirement savings plans could be required to automatically enroll employees in the plan. (It is currently optional for employers to do so.) It would then be up to the employee to actively opt out if they don’t wish to participate.

The Secure 2.0 provision would require employers set a default contribution rate of at least 3% but not more than 10% for the employee plus an automatic contribution escalation of 1% per year up to a maximum contribution rate of at least 10% but not more than 15%.

The provision would go into effect after December 31, 2024.

2. Allow employer contributions for student loan payments

When you have to pay down student loan debt, it makes it harder to save for retirement. Secure 2.0 would let employers make a matching contribution to an employee’s retirement plan based on their qualified student loan payments. That way, it would ensure that the employee is building retirement savings no matter what.

The provision would take effect after December 31, 2023.

3. Increase the age for required minimum distributions

It used to be that when you turned 70-1/2 you had to start withdrawing a required minimum amount from your 401(k) or IRA every year. Then, the age moved up to 72. Under the Secure 2.0 package, it would move up to 73 starting in 2023 and then to 75 a decade later.

4. Help employees build and access emergency savings

Normally if you tap your 401(k) before age 59-1/2, you must not only pay taxes on that money, but also pay a 10% early-withdrawal penalty.

For employees who are dissuaded from saving money in a tax-deferred retirement plan because they are concerned it would be too complicated and costly to access it for emergencies, Secure 2.0 may assuage that fear: It would let employees make a penalty-free withdrawal of up to $1,000 a year for emergencies. While employees would still owe income tax on that withdrawal in the year it’s made, they could get that tax refunded if they repay the withdrawal within three years.

If they don’t repay the withdrawal, they would have to wait until the three-year repayment period ends before being allowed to make another emergency withdrawal. Enter your email to subscribe to the CNN Business Newsletter.

The provision would go into effect after December 31, 2023.

5. Raise catch-up contribution limits for older workers

Currently, if you’re 50 or older you may contribute an additional $6,500 to your 401(k) on top of the $20,500 annual federal limit in effect this year.

Under the retirement package, instead of $6,500, those aged 60, 61, 62 and 63 would be allowed to contribute $10,000, or 50% more than the regular catch-up amount in 2025, whichever is greater.

The provision would take effect after December 31, 2024.

To help pay for the cost of the retirement package, however, another provision which would go into effect a year earlier would require anyone with compensation over $145,000 to “Rothify” their catch-up contributions. So, instead of making before-tax contributions up to the catch-up limit, you could still contribute the same amount but you would be taxed on it in the same year. Your contribution would then grow tax free and may be withdrawn tax free in retirement. But the federal government would get the tax revenue from the original catch-up contribution up front.

6. Enhance and simplify the Saver’s Credit

An underutilized federal match exists for lower-income earners’ retirement contributions of up to $2,000 a year. The new package would enhance and simplify the so-called Saver’s Credit so more people could use it. Eligible filers (e.g., married couples making $71,000 or less) could get a matching contribution from the federal government worth up to 50% of their savings, but the match cannot exceed $1,000.

The provision would go into effect after Dec 31, 2026.

7. Make it easier for part-time workers to save

Part-time workers currently must be allowed to participate in a workplace retirement plan if they have three years of service and work at least 500 hours a year. The new package would reduce that service time to two years. The provision would go into effect after Dec. 31, 2024. (courtesy: CNN Business)

India Received Over US$100 Billion In Remittances In 2022

December 6, 2022 Staff ReporterMoney, Immigration 0

People of Indian origin settled around the world are on track to send home a record amount of money this year, boosting the finances of Asia’s third-largest economy, which is poised to retain its spot as the world’s top recipient of remittances.

Remittance flows to India will rise 12 per cent to reach US$100 billion (S$136 billion) this year, according to a World Bank report published on Wednesday. That puts its inflows far ahead of countries including Mexico, China and the Philippines.

A World Bank report released on Nov.30, 2022 predicted that remittances to India will increase by 12 percent to US$100 billion making it the only country to see such a massive gain in 2022.

Highly skilled Indian migrants living in wealthy nations such as the United States, Britain and Singapore are sending more money home, according to the report. Over the years, Indians have moved away from doing lower-paid work in places like the Gulf. Wage hikes, record-high employment and a weakening rupee also supported growth.

Inflows from the world’s largest diaspora are a key source of cash for India, which lost almost US$100 billion of foreign exchange reserves in the past year amid tightening global conditions that weakened currencies including the rupee against the US dollar. Remittances, accounting for nearly 3 per cent of India’s gross domestic product, are also important for filling fiscal gaps.

Cash transfers to India from high-income countries climbed to more than 36 per cent in 2020-21, up from 26 per cent in 2016-17. The share from five Gulf countries, including Saudi Arabia and the United Arab Emirates, declined to 28 per cent from 54 per cent in the same period, the World Bank said, citing Reserve Bank of India data.

The trend is not uniform across South Asia. Remittances earned by migrants from Bangladesh, Pakistan and Sri Lanka are expected to drop this year, the World Bank noted, as domestic and external shocks hit those countries especially hard.

Senators Sound Alarm On Need To Stop Medicare Physician Pay Cuts

November 21, 2022November 22, 2022 Staff ReporterHealth, Money 0

Forty-six US senators have signed a letter to Senate leaders Charles Schumer, D-N.Y., and Mitch McConnell, R- Ky., expressing serious concerns regarding the stability of Medicare payments for physicians and support for bipartisan, long-term payment reform. The “dear colleague” letter, led by Michigan Democratic Sen. Debbie Stabenow and Wyoming Republican Sen. John Barrasso, also urges Congress to address the budget-neutrality cuts scheduled to take effect in next year’s Medicare physician payment schedule.

The letter comes on the heels of the release earlier this week of the 2023 Medicare physician payment schedule, which has put “Congress on notice that a nearly 4.5% across-the-board reduction in payment rates is an ominous reality unless lawmakers act before Jan. 1,” according to American Medical association (AMA) President Jack Resneck Jr., MD.

In a statement posted on the AMA website, it stated, although the senators’ letter does not address all of the immediate concerns that doctors nationwide have regarding Medicare physician payment, the AMA welcomed the letter as a sign that pressure is building in the Senate to take the actions needed to protect older adults’ access to physician care.

What the AMA is seeking:

Before the end of 2022, Congress should:

Provide relief from the scheduled 4.42% budget-neutrality cut in Medicare physician fee schedule payments.
End the statutory annual freeze and provide a Medicare Economic Index update for the coming year.
Extend the 5% Advanced Alternative Payment Model participation incentive and halt the impossible-to-meet revenue threshold increase for five years to encourage more physicians to transition from fee-for-service into alternative payment models.
Waive the 4% pay-as-you-go (PAYGO) sequester triggered by passage of the American Rescue Plan Act.

The AMA offered detailed comments on the proposed 2023 payment schedule.

“It was immediately apparent that the 2023 Medicare physician payment rates not only failed to account for inflation in practice costs and COVID-related challenges to practice sustainability but also included the damaging across-the-board reduction,” Dr. Resneck noted. “Unless Congress acts by the end of the year, physician Medicare payments are planned to be cut by nearly 8.5% in 2023—partly from the 4% PAYGO sequester—which would severely impede patient access to care due to the forced closure of physician practices and put further strain on those that remained open during the pandemic.”

In their letter, 46 senators agreed that “Congress must address these vital payment challenges before the end of 2022 to ensure seniors continue to have access to care through a wide network” of physicians and other health professionals.

Senate leaders should work with members of Congress “on a bipartisan basis to address” the physician payment cuts that are imminent. “Going forward,” the letter says, “we support bipartisan, long-term payment reforms to Medicare in a fiscally responsible manner.”

Keep doctors’ doors open

Doctors and other health professionals “across the country are facing significant financial hardship due to higher practice costs and the impacts of COVID-19,” the senators’ letter to Schumer and McConnell notes. “Financial uncertainty due to pending payment cuts will only compound these challenges.”

Action should be taken “in the coming weeks” to ensure that doctors and other health professionals “have the resources they need to keep their doors open for seniors and families,” the letter says.

The AMA strongly supports H.R. 8800, the “Supporting Medicare Providers Act of 2022.” The bipartisan legislation aims to stop the scheduled 4.42% cuts to the Medicare physician pay rate and was introduced by Reps. Ami Bera, MD, a Democrat from California, and Larry Bucshon, MD, an Indiana Republican.

“Failure to act in the coming weeks could result in reduced staffing levels and office closures, jeopardizing patient access to care,” the senators noted. “We are especially concerned about this impact in rural and underserved communities. Failure to act on longer-term reforms will undermine Medicare’s ability to deliver on its promises to future seniors and generations.”

The AMA—in collaboration with 120 other physician and health care organizations—has outlined the essential principles (PDF) that can put the nation’s health care system on sustainable financial ground.

Biden Administration Seeks Supreme Court Nod For Student Debt Plan

November 21, 2022November 22, 2022 Staff ReporterEducation, Money 0

The Biden administration on Friday urged the Supreme Court to clear one of the legal obstacles blocking its student debt relief program, as part of the administration’s broader legal effort to have the policy reinstated.

The administration is currently fending off two separate rulings issued over the last two weeks that have effectively halted President Biden’s student loan forgiveness plan, which would give federal borrowers making less than $125,000 a year up to $10,000 debt relief.

In its Friday filing, the Department of Justice (DOJ), on behalf of the administration, urged the justices to lift a ruling issued Monday by the St. Louis-based U.S. Court of Appeals for the 8th Circuit that halted the loan relief program, saying its current legal status has left “vulnerable borrowers in untenable limbo.”

“The [8th Circuit’s] injunction thus frustrates the government’s ability to respond to the harmful economic consequences of a devastating pandemic with the policies it has determined are necessary,” U.S. Solicitor General Elizabeth Prelogar told the justices.

Biden’s policy, which the Congressional Budget Office estimates will cost about $400 billion over 30 years, has drawn numerous legal challenges. Its aim is to forgive up to $10,000 in federal student loan debt for those making under $125,000 annually and up to $20,000 for recipients of Pell Grants, which assist students from lower-income families.

The administration’s move on Friday comes after a unanimous three-judge panel on the 8th Circuit halted Biden’s massive debt relief plan, which had already been blocked nationwide by a separate court ruling.

The panel, which comprised two Trump-appointed judges and one appointee of former President George W. Bush, said its order would remain in effect until further notice by the 8th Circuit or the Supreme Court.

The ruling was a win for six conservative-led states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — that challenged the program on the grounds that they were harmed by a freeze on the collection of student loan payments and interest. The court’s six-page ruling singled out the impact on a large, Missouri-based holder of student loans called the Higher Education Loan Authority of the State of Missouri.

“The equities strongly favor an injunction considering the irreversible impact the Secretary’s debt forgiveness action would have as compared to the lack of harm an injunction would presently impose,” the panel wrote. “Among the considerations is the fact that collection of student loan payments as well as accrual of interest on student loans have both been suspended.”

The White House, for its part, maintains that its policy is authorized by a 2003 federal law known as the Higher Education Relief Opportunities for Students Act, which both the Trump and Biden administrations have drawn upon to alleviate student borrowers’ financial strain during the global pandemic.

In a related legal development last week, a Trump-appointed federal judge in Texas invalidated the program, saying the presidential action unlawfully encroached on Congress’s power. The Biden administration has asked the U.S. Court of Appeals for the 5th Circuit to halt that ruling while it mounts a formal appeal.

Several other similar challenges to Biden’s plan have so far proved unsuccessful. Among them were two cases that eventually sought emergency relief in the Supreme Court but were unilaterally rejected by Justice Amy Coney Barrett.

The Supreme Court may be more inclined to intervene now that the U.S. government is the party seeking relief and as courts across the country reach different conclusions about the program’s lawfulness.

The DOJ, in its Friday filing, told the justices they could choose to construe the government’s request as a formal petition for appeal and place it on a procedural fast-track.

The DOJ filing comes as student loan borrowers are anxiously awaiting for payments to restart at the beginning of 2023.

Advocates have been pressuring the Biden administration to extend the pause on payments, which began at the beginning of the pandemic, while the debt relief program is going through the courts.

Before the legal challenges, millions of borrowers applied for the debt relief through an application on the Department of Education’s website. Borrowers were told to apply before Tuesday in order to have a chance at their debt being forgiven before the payments began.

Since then, the applications have been taken down, and borrowers could have to wait months to get a final decision on the legality of the program from the courts.

The Washington Post previously reported talks were happening in the White House to extend the payment pause again due to the court challenges, despite Biden telling borrowers there would be no more extensions.

However, there has been no official word from the White House on the issue with only a month and a half left before payments resume. (Courtesy: The Hill)

FCC Recommendations To Stop Phone Scammers Who Have Tricked Americans Of $40 Billion In 2022

November 9, 2022 Staff ReporterMoney, Technology 0

Despite the rise of sophisticated crypto frauds and ransomware plots, phone scams continue to trick Americans out of tens of billions of dollars each year. Phone scams are on the rise. Truecaller, which makes an app that blocks spam calls, estimates that nearly 70 million Americans have lost money to phone scams in 2022, and that those scammers made off with nearly $40 billion in total. Phone scams include frauds that begin with calls and text messages.

“It’s very cheap to set up an automatic dialer and to plug a bunch of phone numbers into it, whether they’re random or they are very intentional by geography or by demographic, and place millions of phone calls in a very short period of time,” said Clayton LiaBraaten, senior executive advisor at Truecaller. “It’s a numbers game.”

The United States Federal Communications Commission (FCC) has stated that “Unwanted calls – including illegal and spoofed robocalls – are the FCC’s top consumer complaint and our top consumer protection priority. These include complaints from consumers whose numbers are being spoofed or whose calls are being mistakenly blocked or labeled as a possible scam call by a robocall blocking app or service.

“The FCC is committed to doing what we can to protect you from these unwelcome situations and is cracking down on illegal calls in a variety of ways:

Issuing hundreds of millions of dollars in enforcement actions against illegal robocallers.
Empowering phone companies to block by default illegal or unwanted calls based on reasonable call analytics before the calls reach consumers.
Allowing consumer options on tools to block calls from any number that doesn’t appear on a customer’s contact list or other “white list.”
Requiring phone companies to implement caller ID authentication to help reduce illegal spoofing.
Making consumer complaint data available to enable better call blocking and labeling solutions.

Check out the consumer guide on Call Blocking Tools and Resources, which includes information on many of the call blocking and labeling tools currently available to consumers.

Learn more about FCC Initiatives to Combat Robocalls and Spoofing and download the FCC Report on Robocalls.

File a complaint with the FCC if you believe you have received an illegal call or text, or if you think you’re the victim of a spoofing scam.

Consumer Tips to Stop Unwanted Robocalls and Avoid Phone Scams

Don’t answer calls from unknown numbers. If you answer such a call, hang up immediately.
You may not be able to tell right away if an incoming call is spoofed. Be aware: Caller ID showing a “local” number does not necessarily mean it is a local caller.
If you answer the phone and the caller – or a recording – asks you to hit a button to stop getting the calls, you should just hang up. Scammers often use this trick to identify potential targets.
Do not respond to any questions, especially those that can be answered with “Yes.”
Never give out personal information such as account numbers, Social Security numbers, mother’s maiden names, passwords or other identifying information in response to unexpected calls or if you are at all suspicious.
If you get an inquiry from someone who says they represent a company or a government agency, hang up and call the phone number on your account statement, in the phone book, or on the company’s or government agency’s website to verify the authenticity of the request. You will usually get a written statement in the mail before you get a phone call from a legitimate source, particularly if the caller is asking for a payment.
Use caution if you are being pressured for information immediately.
If you have a voice mail account with your phone service, be sure to set a password for it. Some voicemail services are preset to allow access if you call in from your own phone number. A hacker could spoof your home phone number and gain access to your voice mail if you do not set a password.
Talk to your phone company about call blocking tools they may have and check into apps that you can download to your mobile device to block unwanted calls.
If you use robocall-blocking technology already, it often helps to let that company know which numbers are producing unwanted calls so they can help block those calls for you and others.
To block telemarketing calls, register your number on the Do Not Call List. Legitimate telemarketers consult the list to avoid calling both landline and wireless phone numbers on the list.

Mortgage Rates Rise Above 6% Since 2008

September 16, 2022November 7, 2022 Staff ReporterMoney 0

Mortgage rates jumped again, surpassing the 6% mark and reaching the highest level since the fall of 2008. The 30-year fixed-rate mortgage averaged 6.02% in the week ending September 15, up from 5.89% the week before, according to Freddie Mac. That is significantly higher than this time last year, when it was 2.86%.

Stubbornly high inflation is pushing rates up, said Sam Khater, Freddie Mac’s chief economist.

“Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding 6% for the first time since late 2008,” he said.

After starting the year at 3.22%, mortgage rates rose sharply during the first half of the year, climbing to nearly 6% in mid-June. But since then, concerns about the economy and the Federal Reserve’s mission to combat inflation have made them more volatile.

Rates had fallen in July and early August as recession fears took hold. But comments from Federal Reserve Chairman Jerome Powell and recent economic data have pulled investors’ attention back to the central bank’s fight against inflation, pushing rates higher.

The 10-year Treasury yield moved higher last week as markets prepared for further monetary tightening by the Fed, said George Ratiu, manager of economic research at Realtor.com.

The Federal Reserve does not set the interest rates borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track yields on 10-year US Treasury bonds. As investors see or anticipate rate hikes, they often sell government bonds, which sends yields higher and with it, mortgage rates.

Investors reacted to August’s inflation numbers, which showed that consumer prices continued to rise at 1980s levels, said Ratiu.

“Core inflation remains stubbornly elevated, putting pressure on the Federal Reserve to maintain an aggressive stance on monetary tightening,” he said. “Markets are keeping a close eye on the central bank’s meeting next week, expecting another 75-basis-point increase in the policy rate, if not a 100-basis-point jump.”

Sales are slowing, but affordability is still a challenge

As mortgage rates rise and home prices remain high, home sales are slowing. With rates essentially double where they were a year ago, applications for home loans have dropped and applications to refinance into a lower payment have fallen off a cliff, down 83% from a year ago, according to the Mortgage Bankers Association.

“Higher mortgage rates … have contributed to more homebuyers staying on the sidelines,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

A year ago, a buyer who put 20% down on a $390,000 home and financed the rest with a 30-year, fixed-rate mortgage at an average interest rate of 2.86% had a monthly mortgage payment of $1,292, according to calculations from Freddie Mac.

Today, a homeowner buying the same-priced house with an average rate of 6.02% would pay $1,875 a month in principal and interest. That’s $583 more each month.

“With real median household incomes remaining relatively unchanged, many first-time homebuyers are finding the door to homeownership is closed for this season,” said Ratiu.

He said that with borrowing costs expected to continue rising in the next few months, it is becoming increasingly clear that home prices need to decline to bring balance back to housing markets.

“Many sellers are recognizing the shift in market conditions and are responding by cutting their asking prices,” he said. “These changes are coinciding with the time of the year when buyers have historically found the best market conditions to find a bargain.”

Bezos Loses Title of World’s Second Richest Man to Indian Billionaire

September 16, 2022November 5, 2022 Staff ReporterBusiness, Money 0

Gautam Adani, the Indian tycoon who has climbed the wealth rankings at breakneck speed this year, surpassed Jeff Bezos to become the world’s second-richest person. Jeff Bezos has lost the title of second richest man in the world behind Elon Musk, electric-vehicle leader Tesla’s (TSLA) chief executive.

The founder and executive chairman of tech and online-retail giant Amazon (AMZN) dropped to No. 3, on Sept. 16 at around 10:38 a.m in New York, according to the Bloomberg Billionaires Index.

At that time, Bezos had a fortune estimated at $145.8 billion compared with $146.9 billion for the Indian tycoon Gautam Adani who ended the day with a fortune of $147 billion, thus consolidating his second place won in the morning. Bezos has risen a bit and is also worth roughly $147 billion. The day started with Adani at No. 3 and Bezos at No. 2.

According to the Bloomberg Billionaires Index, just $1 billion had separated Bezos from Gautam Adani, the Indian billionaire and chairman of Adani Group, an industrial conglomerate.

Bezos’ fortune was then valued at $150 billion in this ranking, while Adani’s was estimated at $149 billion.

Since the immense fortune of the two men rests mainly in the shares each holds in his respective company, the safe bet was that Adani would overtake Bezos by the end of the day.

The current volatility in the markets — due to fears about the health of the economy in the face of an aggressive rate hike by the Federal Reserve to fight inflation — is particularly weighing on technology groups like Amazon.

Amazon stock is down around 26% since January. This translates into a drop in Bezos’s fortune, which has shrunk by $45.5 billion this year.

Adani’s Meteoric Rise

Conversely, Adani is experiencing a meteoric rise. His fortune has increased by $70.3 billion since January.

His countryman, Mukesh Ambani, ranked tenth richest person in the world with an estimated fortune of $88.7 billion, was the other top 10 billionaire to have seen his fortune increase (+$1.02 billion) this year until Sept.15. But the following day, Ambani, who is chairman and managing director of the Reliance Industries conglomerate, lost of his gains. He’s now down by $1.3 billion.

At the beginning of the year, Adani became the richest person in Asia, ahead of Ambani. Adani first overtook India’s Mukesh Ambani as the richest Asian person in February, became a centibillionaire in April and surpassed Bill Gates and France’s Bernard Arnault in the past two months. It’s the first time someone from Asia has featured this highly in the top echelons of the wealth index, which has been dominated by US tech entrepreneurs.

Adani, 60, dropped out of college to try his luck in Mumbai’s diamond industry in the early 1980s before turning to coal and ports. His conglomerate has since expanded into everything from airports to data centers, cement, media and green energy, focusing on areas that Prime Minister Narendra Modi deems crucial to meeting India’s long-term economic goals. The nation’s largest private-sector port and airport operators, city-gas distributor and coal miner are all part of Adani’s empire, which also aims to become the world’s largest renewable-energy producer. Last year, it pledged to invest $70 billion in green power, a pivot that has been criticized by some as greenwashing given that so much of the group’s revenue still comes from fossil fuels.

The push into renewables and infrastructure has earned Adani investments from firms including Warburg Pincus and TotalEnergies SE, helping boost his companies’ shares and his personal fortune. This year, he added about $70 billion to his wealth — more than anyone else — while many have seen losses.

World Could Face Recession Next Year: World Bank Report

September 16, 2022November 6, 2022 Staff ReporterEconomy, Money 0

The world could face a recession next year amid simultaneous tightening of monetary policy by central banks around the world, the World Bank has said in a new report that called for boosting production and removing supply bottlenecks to ease inflation. Several indicators of global recessions are already “flashing signs”, the report said. The global economy is now in its steepest slowdown following a post-recession recovery since 1970, it added.

Global interest rate hikes by central banks could reach 4%, double that in 2021, just to keep core inflation — which strips out volatile items such as food and fuel — at 5% levels, the bank said.

From the US to Europe and India, countries are aggressively raising lending rates, which aim to curb the supply of cheap money and thereby help bring down inflation. But such monetary tightening has costs. It dampens investment, costs jobs, and suppresses growth, a trade-off faced by most nations, including India.

“Global growth is slowing sharply, with further slowing likely as more countries fall into recession. My deep concern is that these trends will persist, with long-lasting consequences that are devastating for people in emerging market and developing economies,” World Bank president David Malpass said in a statement after the report was released on Thursday.

The world is facing record inflation due to factors including the Ukraine war that has dwindled food supplies, knock-on effects of the pandemic on supply chains, poor demand in China due to its persistent Covid lockdowns, and extreme weather that has upended forecasts of agricultural output.

The Reserve Bank of India (RBI) announced a third repo rate hike to 5.40% in August, up 50 basis points. A basis point is one-hundredth of a percentage point. The RBI maintained its inflation estimate at 6.7% for 2022-23 while forecasting real (inflation-adjusted) GDP growth at 7.2%.

The Biden-Harris Administration’s Student Debt Relief Plan Explained

August 29, 2022November 25, 2022 Staff ReporterEducation, Money 0

What the program means for you, and what comes next

President Biden, Vice President Harris, and the U.S. Department of Education have announced a three-part plan to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires. This plan includes loan forgiveness of up to $20,000. Many borrowers and families may be asking themselves “what do I have to do to claim this relief?” This page is a resource to answer those questions and more. There will be more details announced in the coming weeks. To be notified when the process has officially opened, sign up at the Department of Education subscription page.

The Biden Administration’s Student Loan Debt Relief Plan

Part 1. Final extension of the student loan repayment pause

Due to the economic challenges created by the pandemic, the Biden-Harris Administration has extended the student loan repayment pause a number of times. Because of this, no one with a federally held loan has had to pay a single dollar in loan payments since President Biden took office.

To ensure a smooth transition to repayment and prevent unnecessary defaults, the Biden-Harris Administration will extend the pause a final time through December 31, 2022, with payments resuming in January 2023.

Frequently Asked Questions:

Do I need to do anything to extend my student loan pause through the end of the year?

No. The extended pause will occur automatically.

Part 2. Providing targeted debt relief to low- and middle-income families

To smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume, the U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households.

In addition, borrowers who are employed by non-profits, the military, or federal, state, Tribal, or local government may be eligible to have all of their student loans forgiven through the Public Service Loan Forgiveness (PSLF) program. This is because of time-limited changes that waive certain eligibility criteria in the PSLF program. These temporary changes expire on October 31, 2022. For more information on eligibility and requirements, go to PSLF.gov.

Frequently Asked Questions:

How do I know if I am eligible for debt cancellation?

To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households)

If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt cancellation.

If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt cancellation.

What does the “up to” in “up to $20,000” or “up to $10,000” mean?

Your relief is capped at the amount of your outstanding debt.

For example: If you are eligible for $20,000 in debt relief, but have a balance of $15,000 remaining, you will only receive $15,000 in relief.

What do I need to do in order to receive loan forgiveness?

Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education.

If the U.S. Department of Education doesn’t have your income data – or if you don’t know if the U.S. Department of Education has your income data, the Administration will launch a simple application in the coming weeks.

The application will be available before the pause on federal student loan repayments ends on December 31st.

If you would like to be notified by the U.S. Department of Education when the application is open, please sign up at the Department of Education subscription page.

What is the Public Service Loan Forgiveness Program?

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full-time for federal, state, Tribal, or local government; military; or a qualifying non-profit.

Temporary changes, ending on Oct. 31, 2022, provide flexibility that makes it easier than ever to receive forgiveness by allowing borrowers to receive credit for past periods of repayment that would otherwise not qualify for PSLF.

Enrollments on or after Nov. 1, 2022 will not be eligible for this treatment. We encourage borrowers to sign up today. Visit PSLF.gov to learn more and apply.

Part 3. Make the student loan system more manageable for current and future borrowers

Income-based repayment plans have long existed within the U.S. Department of Education. However, the Biden-Harris Administration is proposing a rule to create a new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers.

The rule would:

Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans. This is down from the 10% available under the most recent income-driven repayment plan.

Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment.

Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with loan balances of $12,000 or less.

Cover the borrower’s unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower’s loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.

The Biden-Harris Administration is working to quickly implement improvements to student loans. Check back to this page for updates on progress. If you’d like to be the first to know, sign up for email updates from the U.S. Department of Education.

Singapore Unveils Long-Term Work Visas To End Talent Crunch

August 29, 2022November 26, 2022 Staff ReporterImmigration, Money 0

Singapore is overhauling visa rules to attract foreign workers and ease a tight labor market that’s contributing to wage and price pressures. The new rules will allow foreigners earning a minimum S$30,000 ($21,431) per month to secure a five-year work pass, with a provision to allow their dependents to seek employment, according to the Ministry of Manpower.

The new rules will allow foreigners earning a minimum S$30,000 ($21,431) per month to secure a five-year work pass, with a provision to allow their dependents to seek employment, according to the Ministry of Manpower. Exceptional candidates in sports, arts, science and academia who don’t meet the salary criteria are also eligible for the long-term visa under the so-called Overseas Networks and Expertise (ONE) pass that will take effect Jan. 1.

“Both businesses and talent are searching for safe and stable places to invest, live and work in. Singapore is such a place,” Manpower Minister Tan See Leng told reporters on Monday. “It is therefore timely to leverage on this opportunity to cement Singapore’s position as a global hub for talent.”

The announcement is the latest in a string of decisions this year that are meant to address a still-tight labor market, as well as attract international business to drive the city-state’s ambitions as a global financial hub, after a pandemic-era slump in white-collar workers from abroad. Many parts of the economy have seen pay increases this year to lure talent, stoking fears wage-cost escalation will add to headline inflation that’s touched a 14-year-high and force the central bank to tighten monetary policy further.

Effective Sept. 1 next year, Singapore plans to exempt jobs, comparable to those held by top 10% of Employment Pass holders, from the need to be advertised locally before hiring foreigners under a system called Fair Consideration Framework. The duration of FCF advertisements, where applicable, will be halved to 14 days, the ministry said, adding that processing time for all EP applications will be cut to 10 business days from the current maximum three weeks.

The rule change will help the city-state better compete with rival business hubs like Hong Kong and the United Arab Emirates and catch up to Australia and the UK, which have similar global talent visas. More than 700 finance professionals moved to Singapore from Hong Kong last year, according to recruitment firm Robert Walters.

The UAE this year made it easier for expatriates to work without being sponsored by an employer, as well as switched to a Saturday-Sunday weekend to align the country with global markets as it seeks to win more businesses, with Dubai positioning itself as a crypto hub.

Singapore has had to grapple with especially challenging labor-market dilemmas as the nation lives with Covid and the need to recharge sectors like hospitality and food and beverage that suffered disproportionately amid social mobility restrictions that are finally all but canceled.

A key gauge that measures the imbalance between demand and supply of workers rose earlier this year to the highest level since 1998. That trend is a risk to productivity in the economy, which officials expect will grow by 3%-4% this year, narrower than the 3%-5% seen before — a pace that will be among the slowest in Southeast Asia.

The country is witnessing an easing of labor market tightness, Minister Tan said, adding that labor supply in manufacturing and construction, among others, have gone back almost to pre Covid levels.

The problems are at the high end of the income ladder — where Singapore wants to attract top global talent particularly in next-generation, technology-heavy industries — as well as the lower end. The government fielded criticism during the pandemic that treatment and broader policies for migrant workers primarily employed in the construction industry needed a reboot.

“This is an age where talent makes all the difference to a nation’s success,” Prime Minister Lee Hsien Loong said in his Aug. 21 National Day Rally speech. “We need to focus on attracting and retaining top talent, in the same way we focus on attracting and retaining investments.”

Dr. Anthony Fauci To Step Down In December After More Than 50 Years Of Public Service

August 22, 2022November 29, 2022 Staff ReporterTechnology, Money 0

Anthony Fauci, the chief medical adviser to the president and longtime director of the National Institute of Allergy and Infectious Diseases (NIAID), said he will be leaving those positions to “pursue the next chapter in my career.” Fauci, 81, has led the NIAID for 38 years, and has advised every president since Ronald Reagan.

“While I am moving on from my current positions, I am not retiring,” Fauci said in a statement Monday. “After more than 50 years of government service, I plan to pursue the next phase of my career while I still have so much energy and passion for my field.”

Fauci has become a household fixture during the Covid-19 pandemic, battling back misinformation — sometimes from the highest levels of government. His steadfast commitment to science, challenging former President Donald Trump on everything from the use of hydroxychloroquine to mask mandates, made him a quasi-celebrity in the process.

The 81-year-old has advised seven U.S. presidents, starting with Ronald Reagan through the HIV/AIDS epidemic, West Nile virus, the 2001 anthrax attacks, pandemic influenza, various bird influenza threats, Ebola, Zika and, most recently, Covid and monkeypox.

In a statement, President Biden praised Fauci as a dedicated public servant with a “steadying hand” who helped guide the country through some of “the most dangerous and challenging” public health crises.

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Fauci has been at the forefront of every new and re-emerging infectious disease threat the country has faced over the past four decades, including HIV/AIDS, West Nile virus, the 2001 anthrax attacks, pandemic influenza, Ebola and Zika, and most recently the COVID-19 pandemic.

“Because of Dr. Fauci’s many contributions to public health, lives here in the United States and around the world have been saved. As he leaves his position in the U.S. Government, I know the American people and the entire world will continue to benefit from Dr. Fauci’s expertise in whatever he does next,” Biden said.

Biden worked closely with Fauci during the Zika and Ebola outbreaks when he was vice president, and has leaned heavily on Fauci’s expertise during the COVID-19 pandemic. Biden noted one of his first calls as president-elect was to ask Fauci to become his chief medical advisor.

Fauci previously said he does not plan to stay beyond the end of President Biden’s first term in 2025, but had yet to give a formal announcement.

“I want to use what I have learned as NIAID Director to continue to advance science and public health and to inspire and mentor the next generation of scientific leaders as they help prepare the world to face future infectious disease threats,” Fauci said.

Fauci said he would use his remaining time in government to “continue to put my full effort, passion and commitment into my current responsibilities” and to help prepare his institute for a leadership transition.

Fauci has been one of the leading infectious diseases researchers for decades, but he became a household name at the beginning of the COVID-19 pandemic during the Trump administration as part of the White House pandemic response team.

It was in this role that Fauci became a political lightning rod. He fell out of favor with Trump after numerous public disagreements over unproven COVID-19 treatments as well as the level of danger posed by the virus.

Fauci’s embrace of mitigation measures like masks and temporary business closures early in the pandemic made him a villain to conservatives, who view him as a symbol of government overreach and “lockdown culture.”

Threats from the public led to Fauci needing a security detail. Fauci has clashed repeatedly with Republicans in Congress, who are are eagerly floating investigations into the Biden administration’s response to the coronavirus pandemic if they win back control of the House or Senate in November’s midterm elections.

Fauci’s fiercest clashes have come against Sen. Rand Paul (R-Ky.), a libertarian ophthalmologist who has repeatedly antagonized Fauci over the benefits of masks, vaccinations and the origins of COVID-19.

“Fauci’s resignation will not prevent a full-throated investigation into the origins of the pandemic. He will be asked to testify under oath regarding any discussions he participated in concerning the lab leak,” Paul tweeted Monday.

Following Fauci’s announcement Monday, House Republicans also indicated Fauci’s decision to leave government won’t shield him from any potential investigations.

Rep. James Comer (R-Ky.), the top Republican on the House Oversight Committee, said in a statement Monday Fauci needs to answer questions about what he knows about the origins of the coronavirus, including whether the National Institutes of Health helped fund controversial research that led to the virus’s creation in a lab in Wuhan, China.

“Retirement can’t shield Dr. Fauci from congressional oversight,” Comer said. “The American people deserve transparency and accountability about how government officials used their taxpayer dollars, and Oversight Committee Republicans will deliver.”

The U.S. intelligence community has ruled out the possibility that COVID-19 was a bioweapon developed by China, but beyond that the origins of the virus are unclear.

Some scientists have said the idea that it escaped from a lab needs further investigation but acknowledge that won’t happen without China’s help. Many others think that it spilled into the human population from animals sold in a Wuhan market. Still, there is little evidence to suggest it was created in a lab or with funding help from the National Institutes of Health or Fauci.

When Will The Indian Rupee Stop Falling?

July 25, 2022December 13, 2022 Staff ReporterMoney 0

The Indian Rupee breached the psychological 80-mark for the first time against the US dollar on Tuesday, July 18^th, declining to 80.06 per Dollar. The Reserve Bank of India intervened in the currency market to help the Rupee steady after hitting seven straight intraday record lows. A recovery in domestic shares also favored the Indian currency.

According analysts, a wobbly global macroeconomic environment marked by a spell of monetary tightening unleashed, firstly, by the Federal Reserve and being mimicked in earnest by the major central bank governors across the globe has led to an exodus of hot money from developing economies to the “safe haven” of the Dollar. The scenario is compounded further by record-breaking crude oil prices, which balloon India’s imports, diminish the cumulative value of India’s exports and widen our trade deficit.

It is a regular demand-supply market. Currently, there is a greater demand for Dollars than there is for the Rupee. Two factors have pushed demand — India’s current account deficit has sharply widened particularly after Russia invaded Ukraine, and investment in the Indian economy has fallen due to heavy flight of funds in recent months.

Depreciation of the Rupee makes imported items — including petrol and mobile phones — and gives India’s export a competitive edge. But India is a net importer. For those eyeing a trip abroad, earlier budgets on food, boarding, and transportation will now fall short – leaving one with the option to either expand their budgets or opt for countries where the rupee commands a stronger position compared to their domestic currencies.

The dollar has been appreciating against all currencies including the Euro. Market watchers, in fact, say that the Rupee has fared better compared to other currencies including the Euro.

In FY’22, as per the provisional figures released by the Reserve Bank of India (RBI), India’s current account deficit widened to $38.7 billion from a surplus of $23.9 billion in the previous FY.

A widening current account deficit indicates that Indians have been converting more of their rupees into dollars to complete trade and investment transactions consequently spiking up the demand for dollars. It doesn’t help that foreign institutional investors (FIIs) have been dumping Indian equities after a strong bullish spell, and making a beeline for US treasury notes and bonds.

The RBI has intervened by selling Dollars to check the Rupee’s slide. Else, the free market would have seen a further weaker Rupee. The current exchange market scenarios suggest that the rupee’s fall may continue for a few more months, breaching even the 82-mark. Congress leader Shashi Tharoor took a dig at the Rupee’s slide saying a “strong government” is “giving us a weaker Rupee”.

1. Stronger Job Markets in Advanced Economies

2. Declining Job Prospects in the Gulf

3. Changing Migration Trends by Region

4. Rise in Education-Driven Migration

States Tackling Inflation with Wage Adjustments

The Federal Minimum Wage and Poverty

Who Benefits Most from Wage Increases?

Economic Context and Voter Sentiments

TheUNN Corporation

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