Sree Iyer: Namaskar and welcome to Daily Global insights with Sri and Sree. This is episode 177, today is the 4th of June Friday, we start with United States news. In US news, Biden holds firm on corporate taxes but, trims infrastructure demand to 1 trillion dollars. Welcome to PGurus channels, sir and as always it’s a pleasure to have you on our Channel as we together navigate the Happenings around the world. President Biden’s trimming of his infrastructure plan. What does that mean? Is the number now coming down from 2 trillion to a smaller number, sir?
Sridhar Chityala: Good morning to everybody and happy to be here now Friday morning. As we try to wrap up the weekend. There’s plenty to cover as Sreeji pointed out.
To respond to a specific question. They’re trying to get this done, the infrastructure stimulus plan, which has been in negotiation forever since almost close to, he assuming power. So what you have here is it’s 2.25 million, it came down to 1.75 trillion, then, it got cut to one trillion the simply implies that he wants to get the first phase of this planning into motion. I am sure there will be more executive orders coming in more authorizations taking place. So, there could be lots of things in what we call banking on the balance sheet and off-balance sheet. So, he’s trying to get an on-balance sheet approval for one trillion. There could be several billion on the off-balance-sheet side, that’s what he’s trying to get things done.
Sree Iyer: Calls grow for Fauci’s resignation after more, exposures happen of his emails. It also calls for criminal investigation growth. So this thing we had warned it, I don’t know how many people remember as way back as in March 2020, that there is something more than that meets the eye. As far as Mr Fauci’s involvement in this whole thing goes and this was a hangout that I had hosted with Dr Shiva Ayyadurai. And unfortunately, for us on YouTube, was pulled down, however, it is available on other platforms; people can go back and look at it. It shows that DGI and PGurus have a knack for trying to or telling you what’s going to happen down the line. Sir, your thoughts, do you think he is being made the scapegoat? Is there a deeper rot than this?
Sridhar Chityala: Based on all the Press reports that are now coming out, including from the left media Washington Post, Etc, Now, Mike Pompeo went public today or yesterday, which is in making headlines, effectively to say that there was enough, evidence. Evidence was suppressed by three types of people. One is, you know, those from the medical field and second the intelligence and the state department, he is blaming even the state department. So the state department and the intelligence suppressed any further, discovery and pinning down on that this thing evaluated. What is this thing? The Covid actually originated from the Wuhan lab. Dr Fauci for the first time has made his statement to say, Please release the data of those 10 or 12 people who died in an accident, in Wuhan lab, the scientist that would help us to identify the precise location and the cause of their death. And probably pin it down to the Wuhan lab itself. So this is the first time he’s pointing out and asking the Chinese, why he kept quiet all this while. We don’t know. But, the fact is that there is more and more data that is coming out revealing that people knew about it or somehow, you know, suppressed it. This also in the news Facebook, chose to pull down there any news which is assigned to Wuhan Lab is now putting those videos back. So the question is, how collusive these Tech platforms have been in advocating, a political agenda that also needs to be investigated, not just merely the intelligence and the ecosystem, but the collusive and collaborative, nature of the social media platforms. It is not their business to arbitrate on the content. It is not their business. When they know that they have immunity and protection that is given to them as per the US laws.
Sree Iyer: Sir, when do you think this thing happened of the ten scientists dying in the Wuhan Lab? Approximate Date Line?
Sridhar Chityala: Don’t know the dateline. we only know the press release that has come out. Other than that, we don’t know, when. This could be, I don’t know in 2019 or 2018. We have covered a lot of these things, some people that you know, even passed away in United States accidents and so on. So this is a whole range of things around it. There is a CDC, deputy director, who has given a press statement in an Interview saying, you know, when he was trying to bring this information, guys, you can go and Google and look for yourself rather than we don’t have the ability to put all of those links and news and so on. But, there’s enough news that is that Doctor has gone and made a record that his life was under threat. When he wanted to say that this is not natural organic evolution but it has come out of the lab. So, there’s enough evidence or enough anecdotal data that points to something that more than meets the eye, in terms of the origins and the location of the virus.
Sree Iyer: One of the things that the United States has been proud of is its deep state and its loyalty towards the country. Then, I can tell you, there are so many families where generation after generation, they will come and work for the government and they took great pride in that, money was not an object, getting the interest of the United States was.
Unfortunately, the CCP in the last couple of decades has completely turned this thing upside down. And now, we are beginning to see the amount of infiltration that has taken place of the CCP. And CCP aided people in various organizations, we’re going to say more. We are going to reveal more data on this in the coming days and weeks to come.
In the meanwhile, let’s take a look at another interesting move by the Department of Homeland Security. First of all, Homeland Security should be within the United State. What they are about to do is something laughable. DHS with the support of Biden is flying border crossers into US cities. Remember, we told you that they were bussing them from the border into various settings. Now, they’re flying them. Wow. Whose money is being spent, sir?
Sridhar Chityala: It’s taxpayer’s money. So, Mr Biden has the keys to the kingdom and the Department of Homeland Security has much bigger room to draw cash from. So they are flying these people from into mainstream America and locating them into, you know because buses probably take time is faster for them to be flown. So they are being flown, apparently, it is through some kind of a lottery system, so the lottery system you pick, now, going to be flown into the city. So there is this sense of great rush to take these people into the cities and that is quite tragic.
Sree Iyer: Only last week there was an official announcement that there is the border is sealed. No more new people. What happened, sir?
Sridhar Chityala: The border is not sealed. They’re still surges and they’re still people flowing through the border. And one of the things that we wanted to talk a little bit about, but we can use this avenue to segue into that. Greg Abbott, the governor for Texas has stated, I will be doing the job for Mr Biden in the border because Mr Biden is not doing what he’s supposed to do, which is protecting the border.
Sree Iyer: Dereliction of Duty. Lead investigator for Republicans calls for a special meeting to discuss the skyrocketing cause to house children illegally smuggled across the border. Now, this is the place where it started the DACA program and in the pretext of bringing or uniting families. Suddenly, we are finding out that each child is having like a dozen parents. I mean this just is laughable and how that can even be imagined and how everybody’s accepting these kinds of blatant white Lies. I can’t fathom sir, what is wrong with this country?
Sridhar Chityala: Well, I think there is harmonization and normalization that Mr Biden And his administration, the progressives we call it as the Obama-Biden administration extension, which the Obama himself was quite explicit in stating that Biden is completing the job that I left unfinished with all my ex Administration staff or with my Administration staff. So I think that’s what is going on here. They firmly believe that border crossings are legal, they believe that many people who were deported, were not deported illegally. They were deported illegally. So they want to normalize it. So they bringing the people back. Holding people in Mexico were not correct, so, bring those people back. All there are 11 million illegal immigrants in the United States. To normalize them, this was a subject matter of a great battle that took place both during the Obama years as well as during the Trump period. It quietened during the Trump period.
So all this is the progressive agenda of Harmonization when you have the vice president of the country going across Central America and or on video call speaking with Central, America are saying, we’re going to give you 400 million dollars for your developmental work. So that there is no illegal, migration, that comes across. It is just a reflection of why only in Central America there are people from more than a hundred countries trying to enter via the US border. This is released by DHS itself.
So the problem here is that the progressives have a specific agenda in terms of what they want to do with the United States, how they want to what you call, re-architect the population of the United States at the demographics. That seems to be the broad broader agenda here and whether you think it is right or wrong is a matter of which political spectrum you are in. If you happen to be on the progressive side, they think it is genuine. If you happen to be on the opposite side of the progressives that you think, hey, how can all these be done.
Sree Iyer: Federal court halts Biden Administration from prioritizing minorities and women for Covid Relief. So was there a plan in place to try and give shorts first to children, and women, sir?
Sridhar Chityala: Yes,
Sree Iyer: To the minorities.
Sridhar Chityala: Yes, minorities. So, the federal court has halted. So the objective was to give it to the minorities and not based on medical condition, not based on age, not based on other factors, but factors, which are discriminatory in nature. Constantly, the plea that is made by Dr Fauci, Biden and so, on is Mr Trump doesn’t know science, doesn’t believe in science. So how can you not apply the same principle, when you are prioritizing based on the medical condition? So, therefore, aged who are ailing but, no will prioritize some other way. Generally, this goes to the Supreme Court and get blocked, but this seems to have been blocked in the Federal court itself.
Sree Iyer: Viewers, you may have heard of the website hugely popular, not a website, but the YouTube channel called real finance and Kyle Bass is one of those people who frequently comes there and he has a following to say about the Chinese Wind Farm project in Texas. He says that it is a threat to National Security, your comment, sir,
Sridhar Chityala: Anything which is to do based on what we are observing and witnessing and what we will hear then you soon are that anything that has got a touch of or a or a stamp of China seems to have surreptitious agenda, which contravene to the benefit of the Domicile state. It seems to be all roads leading to only one path, which is the Belt and Road. The Belt and Road all the way leads to China. So, any developmental initiative that you’re focusing on seems to have a circuitous map that leads towards China. I think that’s that is the point that everybody is trying to make it.
Sree Iyer: The Biden administration is contemplating Cyber Attacks against Russian hackers. What stopped them thus far, sir?
Sridhar Chityala: What stopped them from thus far. I wish I am part of the Biden Administration to give an answer. All I can say sometimes there is a word that is used is called Sleepy Joe. So probably is woken up and suddenly realizes oh my God all these cyber attacks are being directed. Now, here’s the crux, just the news that is percolating through the system is the attack on the Meat Farm the JBS, is whether it is a precursor to Attack the food supply chain in the United States. This is the rumour that is percolating. Is this not isolated, but a precursor to disrupt the food supply chain? And if that is the case, you know, you can do power grids, you can do nuclear, you can do defence. They’re all espionage and basically to create destruction. But if you’re going to do something in the food supply chain, it affects the fundamental ecosystem of living and well-being in the United States. Hence, there is a concern. So this is what is escalating to the administration? They’re saying we can kind of sit back and we need to figure out what’s the next step that one must do because it’s opening the doors. This particular attack has opened the doors and mind you, we also had the colonial Pipeline and which disrupted completely the fuel supply or the gas supply as we call it here in the United States to the entire Southeastern states. So you’re beginning to see the ecosystem which constitutes and make up basic living is under attack from the cyber way.
Sree Iyer: Let us take a look at Indian news. The Prime Minister holds discussions with the vice president, Kamala Harris on vaccines. Was this the right protocol? One Wonder, sir.
Sridhar Chityala: It is. I think it’s very unusual. First and foremost to have a vice president. I don’t recall a vice president speaking to a Prime Minister. But having said that, And the second thing that worries that also is a question mark here is Vice President Harris is speaking to Indian Prime Minister Modi on 80 million vaccines of which only seven million vaccines is to India. 7 million vaccines don’t alter the course of India in any manner. So, she discussed a whole range of vaccination. Today, the Press is reporting in the United States that this is to do with mitigating the China vaccine diplomacy, it’s not China vaccine diplomacy. People have forgotten in wave 1, if you happen to be in Indian American or an Indian origin person, India donated more than 60 a million vaccines to people around the world, it received a lot of criticism that India should have kept that 60 million rather than, you know, donating it to the world in the first particular phase. China confronted India on this, which is to say that fully India is using political scoring points to distribute.
People also forget when the world wanted hydroxychloroquine, the one that has been forgotten HCQ which is an immune booster medicine. India was the one that became the supplier to the world, when there was no vaccine going back to last year, including 29 million tablets at the request, waving the export restrictions at the request of President Trump. President Trump was asked, are you going to use your good offices and make sure we get those 29 million? Or you going to be because he happens to be your friend, this is Prime Minister Modi, he is just going to wave off. He said no, I am having discussions with him. We will work this out. So, even at that point in time, the left-wing progressives wanted to take a dig at India but today they are silent for a minuscule, seven million that is been given. So they say, okay, you know, the critical vaccine supplies, have been lifted. But, people forget J&J have a deal to manufacture vaccines in India, Eli Lilly has a deal to manufacture vaccines in India, Novartis has a deal to manufacture vaccine in India, Sputnik has a deal to manufacture vaccines in India. Now, Pfizer is doing a deal to manufacture vaccines in India. So, therefore already, there is a plan in place to get these things to manufacture overcoming, any deficiencies that are caused by these restrictions imposed from the United States on a critical supply of an API, which makes up the vaccine.
Sree Iyer: And for those of you who are interested in knowing about other alternatives to solving this problem, there is a story that we carried yesterday in #AskKarthik episode number five. This is available on all our social media channels, do tune in. We had covered the case of an Indian medicine provider, his name is Anandaiah. He is in Andhra Pradesh and he has been demonstrating amazing recovery for people who are affected by Covid. Now, it is beginning to start, making the waves will keep you posted on the developments.
In other news, India is going to resume FTA I am assuming this is Free Trade Agreement talks with the EU and the United Kingdom on the back of a very strong exports growth driven by engineering, petroleum products, and Gems and Jewelry. Bilateral trade with the EU is now standing at 62.8 billion Euros. And with the UK it is at 19 billion Pounds. All this is good and I think this will also give a boost to India’s exports, isn’t it?
Sridhar Chityala: There are two components. I think one is strategic deterrence. Sleepy Joe or our honourable president from United States, Mr Joe Biden and their own progressive agenda whether they’re going to create any deterrence. If that is the case, India must not be putting all its eggs in one basket. So, it’s very good for them to resume with the EU. Again, in the DGI program, we have covered, they are breaking the EU relationship into two components. One is a trade, the second is investments. So they want to have two parallel tracks so that one doesn’t conflict with the other. Investments in the foreign direct Investments that goes into India. So, 62 billion euros roughly translates to about $75 to $80 billion, which is a fairly sizable number. And then, of course, UK, now, having unbundled itself from Europe is building bilateral trade partnerships. It has a great partnership with Japan, it has a trade partnership with Singapore. It is now doing a partnership with India. All augurs well in terms of India trying to put an imprint on both trade and investments, as it builds its $5 trillion economies.
Sree Iyer: India hopes to achieve a 10% GDP growth based on government and stimulus programs. And India also vaccinates over 242 million doses. The Active cases have now fallen to 1.71 million and the recovery has crossed 211,500. A vaccination map is now going to be available. You can go to the website of the Indian government to look at where things are being addressed. Very Impressive. Sir, your thoughts?
Sridhar Chityala: Well, I think India is well on its way. It had its hiccups in terms of managing the wave-2, didn’t anticipate, but it is well on its way. As I said, it’s a vast country. It will be set with a number of challenges and problems. If one objectively looks at the numbers and looks at the volume of population and the density of population because Indians have a vast number of people concentrated, not just in one neighbourhood, but within Indian homes, then you find that the numbers that they’re dealing with are quite impressive. They very quickly brought the active cases to about 1.7 million. Remember, India had active cases of 400 to 500,000. It went up to 4 million, they brought it down. Again in the DGI, we have covered all these numbers over a period of time. Most important is the net discharge rate is now more than 200,000. The vaccinations are at 240 million depending on the day, it’s between 1 million and 3 million depending on the progress. They are also improving the supply mechanism. I think we listed all the available vaccines and I think, from July-August, the number of vaccines that will be available from a capacity point of view is going to dramatically shoot up. There was an issue around oxygen that also seems to have been addressed. So, India has prepared itself not just for mitigating the big, big hiccup for which it was criticized ut also for the Wave 3, which now they’re predicting is inevitable. They are also saying that Wave-3 is targeted towards the children. So they addressing that specific issue.
It is also possible that India looks at this as a huge opportunity for exporting because the world is desperately short of vaccines. I mean this is global news but I’ll just intersperse. Japan is supplying vaccines to Taiwan, such as the state. It is in a very bad state. 1.24 million vaccines were supplied by Japan on Friday to Taiwan because China has denied them access. They threatened Pfizer not to supply vaccines to Taiwan. So Japan has stepped up. Remember, Taiwan was made out to be a unique case. That’s not the case, there is a ramp-up in covid cases in Taiwan. Sorry, I deviated from India.
Sree Iyer: Serum Institute will also be manufacturing Sputnik vaccines in India. Currently, it is being done by Dr Reddy Laboratories, Hafkine Biopharmaceutical Corporation Limited and two other public sector undertakings are also going to manufacture 23 crores of vaccines annually. Remember viewers, we had shown you a roadmap of where the vaccines are going to be manufactured from various suppliers a few days ago in DGI. So it pays to watch DGI on a weekly basis, on a daily basis because we go where nobody else has gone before. But sorry to blow my own trumpet.
Let’s move on to Global News, sir. An Indian Think Tank has warned of China’s expanding influence on United Nations and its Allied agencies with the UN promoting China foreign policies. So, we have so many organizations now that have been infiltrated by the Chinese Communist Party.
Sridhar Chityala: Yes indeed, this report was released on May 27th specifically outlines 4 out of the 15 agencies, very pivotal ones. One is International Telecommunications, Union or called ITU. Another is UNIDO – United Nations Industrial Development Organization. The third is FAO – Food, and Agricultural Organization. Fourth is International Communication and Aviation Union – ICAU. CCP members head these organizations. With ITU – International Telecommunication Union, they have been advocating Huawei and the telecommunication standard across more than 190 countries. With International Civil Aviation Union, critical Airline routes to Taiwan and such destinations have been blocked. Food and Agricultural Organization – they have a clear understanding of how to direct aid, as well as the food Supplies. Because remember, China has a significant food supply. It cannot produce food and milk to meet its own demands that are driven by sourcing from various places around the world. New Zealand is one of the big areas which supplies milk products to China. China bought all of those dairy farms in New Zealand, as an example. Then the other one is UNIDO you shape the industrial policies in such a manner, they all lead to Belt and Road initiative. So when we get access to the full report, we will put it up on the website.
But these are examples of how CCP has directed the efforts and channel towards the China policies that are part of the WHO. That is why WHO denied membership to Taiwan. Taiwan has had access to WHO but at the request of China a meeting was recently held and Taiwan was blocked. It is in IMF, it is in World Bank, it is in international Agricultural Development Bank. So it has a membership in all these institutions and the members are from CCP and they direct their efforts towards the pro-China, fair China policy, rather than the global needs.
Sree Iyer: Israel arrests top Hamas Terror leader in West Bank law. Remember that all the tension thus far has been in Gaza, which is it geographically separated region from West Bank. And now Israel has arrested the top Hamas Terror leader, in West Bank. Hong Kong and Macau ban events commemorating the June 4th, Tienanmen Square massacre. Remember that Hong Kong and Macau used to be independent units, not long ago. So, whatever is happening in Hong Kong and, of course, in Macau, the United States is essentially doing nothing about it. And now China is beginning to threaten Taiwan. Additionally Chinese Vice Premier Liu He holds candid discussions on trade with the US trade representative, Katherine Tai. Sir, Janet Yellen, we talked about yesterday was holding talks. Today we are talking about the US trade representative, Katherine Tai. What’s going on? So the US is actually acting as if nothing is wrong with China.
Sridhar Chityala: I think, left and right don’t seem to reconcile. But dialogue is essential, debates and discussions are essential. On one side, yesterday, you had Biden banning 39 different companies from China which seems to have direct collaboration, on the other side, you have these discussions. Much of the details are not made public. So you have Janet Yellen having meetings on bilateral trades and financial situation and topics of mutual interest. And then you have Katherine Tai, who is supposed to be a trade representative holding discussions. What is happening is a puzzle! What is the outcome that’s going to come out of it? Very soon we will know that the Obama-Biden Administration outcomes will be some sort of a compromise. That’s a lot of brouhahas that is going on but at the end of the day some kind of a compromise that’s likely to come out. Remember, we also have both business as well as academic and all types of leaders in the United States including Henry Kissinger saying, ‘hey, you cannot ruffle the feathers of China and you need to deal with them with caution and with the sensitivity. I’m not sure I understand what that is. Whereas you want to impose bans with impudency on all the nations. But you somehow feel that China is something different for all its flirtations with law.
Sree Iyer: Biden prohibits investments in 59 Chinese companies, allegedly tied to the military. This is an ongoing process. It’s been going on for a long time. Trump also did the same thing, So as and when these things come out, we have more and more companies being shut down or prohibiting them. These are investments from the US companies, that might be mulling investing in the Chinese companies, sir.
Sridhar Chityala: Yes, I think these are companies that have access to specific capabilities from the United States which may be aiding the Chinese military. I said 39, I stand corrected, there are 59 companies that have connections to the military. This is over and above those companies, Mr Trump banned. Some of the public companies got delisted from NYSE. They were up-down, up-down, eventually, they got delisted.
Just one minute, I want to segue. I have worked with China in the 80s as a banker. I worked with three leaders Wen Jiabao, Hu Jintao and Jiang Zemin. When nothing existed, we established trade and commerce protocols. So therefore this bashing is about the specific policies rather than the nation. We did a lot of things, as a banker, as part of the team during the 80s and early 90s when nothing existed. We put a lot of things together. I’ve even given lectures at Xinhua Institute in Shanghai. So, this thing that we are up and speaking in DGI is very specifically at policies that are detrimental and not fair for a nation that should be behaving like the world’s second-largest economy.
Sree Iyer: ‘The United Kingdom gets a green signal to join the CPTPP deal’, the Japanese Economic Minister stated. Now, the CPTPP as you know is the Comprehensive and Progressive Trans-Pacific Partnership. Sir, your thoughts on this before we move on to markets.
Sridhar Chityala: China was one of the countries that asked Japan,’ we need to be a member.’ Again, we have covered this in DGI. We actually did a very extensive Fireside discussion on the whole notion and nature of the various trade partnerships that are prevalent and why it is important because as you go ahead and look at 2050, 54% of the global GDP will be coming from Asia. So the UK getting wind of this applied for it. Today they have been told to get ready, their membership is approved, start the process for joining the CP TPP, which is a huge win for Boris Johnson. Boris Johnson has a deal with ASEAN, now he will be part of CP TPP. He has done deals with Japan. He is also doing a deal with India. So he really is getting the ‘back to business’ type of momentum having unshackled himself from Europe.
Sree Iyer: Let’s take a look at the Markets, quickly. The markets ended the day flat and await the May jobs report. Global inflation hits the highest level since 2008. Sir, your quick thoughts on markets and then we can wind down for this week.
Sridhar Chityala: Markets are flat. There is still fear around inflation. Now, the global inflation report has come out. This report states that the average inflation is around 3.2% which is very high relative to what we saw when we had the global financial crisis last 2008, preceding the global financial crisis, the inflation rates were going up because of the asset bubbles. In the United States itself, we have reported the inflation is around 4.2%. The inflation is calculated excluding the oil prices and the food prices. But if we add oil prices and the food prices, we started around $35-40 dollars a barrel. We’re now around $70 a barrel. So you can all calculate for yourself whether it’s costing you to buy more or costing you to buy less. But the interest rates have been kept, so, therefore, make hay while the sun shines. So, when you have low-interest rates borrow money as long as you can repay it. Invest, make a buck out of it because nowhere the central banks are prepared to raise the interest rates.
Sree Iyer: With that, we bring our weekly news to an end and twitch is being Friday we wish you a great weekend, we’ll be back again, bright and early next Monday. Before I conclude the show, I would like to let you know that I have my new book out of fiction called ‘Who painted my state purple?’ There was a small 15-second teaser that I put out as a story on YouTube. Those of you who have watched it may know what purple and state mean in the United States. In the United States, we’ve been seeing with each presidential election, some states flipping from red to blue or blue to red. And while they go from one of these colours to the other colour, they go purple before they go to the other colour, which essentially states that this book is about the changing sands of US politics, its demographics and how elections can be easily manipulated. The book of fiction. It also starts with the name, ‘Who Painted’. Sir, I look forward to sharing some thoughts with you on this. And I hope that my viewers, you will give me the same kind of support that you gave to my previous two books. This is the third in a ‘Who Painted’ name brand, and let’s see how it goes. It’s a very interesting work that I have had the honour of doing and Sridharji was enormously helpful in providing me with some very valuable insights on how to do the research for this book. Thank you once again, Sridharji. And as always a pleasure, sir. We will see you again on Monday. Namaskar.
Sridhar Chityala: Namaskar. Have a wonderful weekend. Thank you.