Silicon Valley Bank’s failure is the second largest bank failure in U.S. history, Washington Mutual Fund being the largest in 2008.
The catastrophe was not driven by credit problems but mismatch of assets and liabilities.
NGOs, George Soros, Media Cartels and the Adani Group
On 25th January, short-seller Hindenburg Research published a report beginning a series of well planned and co-ordinated attacks on the Adani Group.
Soon enough, George Soros the 92 year old speculator billionaire joined the issue of attacking the quality of India’s democratically elected polity. Best known for his attack on the British pound in 1992 he has since used his billions to fund political and public causes in more than 120 countries around the world. In 1997, he made huge bets against the Thai and Malaysian currencies and precipitated the Asian financial crisis that brought down economies of Indonesia, Thailand, South Korea and Malaysia. This also brought about regime changes in some of those countries. Soros is hoping that the Ukraine war will bring down Putin and Russia. With national elections round the corner, Soros is also hoping that such coordinated attacks will bring in a regime change in India.
Higher Interest Rates to Increase Repayment Costs on National Debt
Yesterday, the Federal reserve announced another 0.75% point increase for the federal funds rate. This is the rate at which commercial banks borrow and lend their excess reserves to each other overnight. The increase in this rate is meant to help tame rising inflation; this increase however also has implications for the US federal governments borrowing costs and hence the nations fiscal picture.
Budget 2022 Highlights: CAPEX outlay stepped up to Rs 7.5 lakh crores; No major money transfer into the hands of the masses
Budget 2022 seems to indicate that the government continues on their path of inducing an investment led economic recovery. This budget is, just as the previous one was, very clearly supply-side oriented. The CAPEX outlay has been stepped up to Rs 7.5 lakh crores and no major money transfer into the hands of the masses, through tax cuts or otherwise, has been announced.
Unprecedented Tax Revenue Collection Can Be Utilised to Close Past Liabilities
India’s burgeoning tax receipts have surprised those who termed the pandemic as a death knell for India’s struggling economy. Rarely has an economic recovery been so dramatic as the one being seen now.
That India’s tax collection is on track to beat pandemic hit FY 2021 is in itself surprising. Even more surprising is that they are well positioned to beat the collections of FY 2020 which was a regular growth year. Indeed, India is in the middle of an unprecedented tax revenue generation cycle.