Sree Iyer: Hello and welcome to Episode Number 91 of Daily Global Insight. I’m your host Sree Iyer. I have with me Sridhar Chityalaji. Sridharji, namaskar and welcome to PGurus Channel.
Sridhar Chityala: Namaskar and good morning to you. We just recovering from our fine bout of snow and we got two feet of snow piled up everywhere. If I just turn this computer, you can all say it but still, it’s a bright sunny morning here and the temperature is about -4 degrees.
Sree Iyer: And we have a lot of things on our plate today. The first one is the seeks for justice is behind all the instigation, all the coordinated messaging that came out the last couple of days about the farmer stir. Now, it is all out in the open and inadvertently leaked by someone that has now costed the credibility of this movement. In fact, I don’t know if viewers remember this, I had written about what happened about a month ago, no, about know two months ago that there are five people or six people involved who are behind this agitation. Now it is becoming increasingly clear who these people are and where they were while plotting all the stuff. So Sridharji, you were one of the first to write a post on Facebook about what happened. Can you please explain to our viewers, what exactly is happening and how this SFJ aided by ISI is behind all this misinformation?
Sridhar Chityala: Good morning. I think your PGurus article everybody must-read. I’ve used that article plus Greta’s leak that’s now making its way and prior to that, you had also the famous Rihanna, as well as Mia Khalifa’s post that seems to pop up. This we have been saying for quite some time that there is a coordinated left instigated movement, which has been focusing at not just India, but India and similar Democratic nations in terms of making sure that there is enough destabilization to bring the leftist regimes into purview.
We won’t go into the United States, you know these countries like, China and we have reported in a couple of instances needless to say, and the role of ISI which is they cannot win a war. So, they fight a surrogate like this. Then, you have the vested kind of left Naxals who are coordinating this around the world; Greta is no exception to this having now been caught out. Then, you have also Gorge Soros in 2020 World Economic Forum to the surprise and consternation of everybody, he named them, he called them like the fascist regimes which are pursuing nationalist movements. And so, therefore, they have to be brought down. He specifically mentioned Modi, Emmanuel Macron, he mentioned Bolsonaro and he mentioned obviously President Trump at that point of time and so on. So, one can go back and Google and take a look at the article, it just through a lot of consternation into the minds of the people as to how a guy like this spoke in a World Economic Forum. Then, you also have you know an overseas group like, the Khalistani movement and I don’t know to what extent and President Trudeau is supporting or not supporting this from Canada. So, when you look at five groups and then in conjunction with the groups within India. This seems to be a fairly coordinated effort and the coordinated effort is can be concluded based on the leaks, one can see out of the leaks of the papers published by Greta that seems to indicate, how to conduct the agitation? How to kind of move forward? How exactly the provocations could occur and what needs to happen and so on and so forth.
It will make interesting reading for all of you to look at the PGurus article and also the revelations, obviously, I can share if you are on Facebook, I can share my kind of little, a hundred words opinion on it. And also the media is the last piece of the puzzle along with the tech platforms. I don’t delineate between media and Tech platforms because they are conjoined. They are kind of when you do any marketing and studies, the media technology is part of the same paraphernalia, which seems to be supporting these efforts in Pursuit. Otherwise one would not have, leading editors and so on writing about this article. When you have IMF and other institutions coming out and saying that the reforms are very constructive and it is the natural evolutionary journey of the transformation that must happen between the producers of growers and the buyers and cutting down the intermediaries.
Sree Iyer: We experiencing some technical challenges on YouTube. But, Facebook and Twitter are fine, please bear with us. I think it is fixed now, but, bear with us. Moving on Sir, on the United States politic President Joe Biden now is willing to reduce the stimulus size to $1,400 for a select few people not everyone. So, is this a way of compromise on part of the President to reach out to the GOP Senators, so, that they can get something moving on the stimulus?
Sridhar Chityala: No, I don’t believe so, I think that Biden has to pretend or has to demonstrate objectivity. And so, therefore, he is trying to say, I invited them, I demonstrated objectivity in listening to them. But, the votes are not there for getting it done and hence, that the progressive agenda that the House is pursuing, this is predominantly the House-led and the progressive agenda that the House is pursuing will prevail. I, very much doubt whether they would cut it or reduce it to the economically only needy if they do show it will be at a price which is to say, now in Increase 2000 to 2250 and let us send the additional money to the needy because we have already set aside 1.9 trillion dollars. Remember close to 400 billion dollars for the PPE program and small business support of the loans already exists over and above this 1.9 trillion dollars that is being targeted, that sits in the treasury and all it requires is a specific program and the resolution and the House and the Senate to draw those funds, they are not even talking about it in this specific stimulus.
Sree Iyer: We have to wait and see how this plays out. In the meantime, the Democrats are trying to come up with their own stimulus plan, that doesn’t end-run around the Senate GOP and would that require the Vice President to put the casting vote? Do you think they’ll resort to that almost immediately now?
Sridhar Chityala: I think they would move forward on that basis. They would definitely forward on that basis that is what is called as using the special resolution. They’re passing using a special resolution. So the special resolution just as the Democrats and Republicans agreed to share of the power in the Senate. They will pass the resolution through the special process and get it done. So, I think that that is a fait accompli.
Sree Iyer: Well, we have to wait and see if that happens. So, we are going to have a session in about an hour’s time or hour an half’s time on China is incursions and China’s eight-pronged attack of trying to create geopolitical destabilization all around itself. And this will be talked about in great detail in that. Do join us there. Now, let’s move on to the next item, sir. In the United States, American Airlines has told it’s thousands of employees that it may have to lay them all up because there is no stimulus funding coming its way. Is this going to be a pattern that’s going to play out in other places too?
Sridhar Chityala: Well, Airline industry if you recall had a 15 billion dollars allocation in the 45 billion dollars in stimulus to package which helped them to prevail over that period and avoid about I think 30,000 people in the airline industry. American Airlines is now pointing out that money is running out or has run out and there are four 13,000 people in the American Airlines. I just want very clearly not the US airline industry, but, American Airlines as a carrier 13,000 staff will need to be furloughed as the aid runs out. So what they’re saying is they are reaching out and you need to look after if should and when the airline’s resume and regain his lost momentum in terms of the business because of the pandemic situation and we need to be ready and organized. Otherwise, all these people who are well-trained, we need to let go.
Sree Iyer: There is a very very expensive proposition indeed and let’s hope that something happens quickly now.
Sridhar Chityala: Sir, it is not very expensive sir, rather than focusing on chachkas that they want to give to all over the world, you know 15 million dollars to the domestic industry is not bad sir. Why do we need to put straight away get her 27 billion dollars to some other unknown entity which we highlighted if you recall?
Sree Iyer: Yes, indeed and let’s take a quick look at the DREAM Act. What was that DREAM act and now that portions of it is being released? We are finding some very ghastly information coming out of it. Many illegal immigrants with criminal records were ignored, so, what is happening and who needs to take the responsibility/blame for what happened in the DREAM Act. Can you please enlighten us?
Sridhar Chityala: The DREAM Act!. It was proposed that those illegal aliens and refugees who are coming into the United States must go through a proper process of assessment pre-registration for employment assessment. And why they need to be registered for employment assessment because you have to go through security protocols. And the story is that they were not willing to adhere to those guidelines as part of the new executive order signed. So what Tom Cotton is saying is there are several illegal aliens with criminal records in them. So, therefore, they have not been vetted for criminal records. So without the verification of the criminal records employment assessment management is not possible. So it is going to create a potential risk to the United States. Therefore we have to revisit this and we have to make sure that it is, that’s why the zero-tolerance came-in, as well as, I don’t know everybody should be familiar if you want to become a citizen of this country or even for the green card you have to do police verification. They have to do background checks before the normalization of the process occurs. But in this case, especially dealing with 12 million illegal aliens in this country, the DREAM Act was enacted basically to ensure that the right citizens get into the country.
Sree Iyer: Biden’s popularity rating has fallen below 50% isn’t it a little too early for that? What do you think is the reason?
Sridhar Chityala: The reasons are that you would expect people to be a little more cautious. He’s coming into his position with a lot of contention around the elections. He is coming into the presidency with issues around the covid situation. He has basically made some statements which have not enlightened the minds of the people which is to say,’I don’t know whether we’re going to be able to contain this thing and there is an inevitable course to it.’ He has not yet revealed the clearly specific plan in the minds of the people. He may argue the other way around but he is not like Obama who came with a euphoric sensation and great hope, and he was saying ‘I’m conciliatory, there’re no wars. I’m going to release people, I am going to do human rights practices and he came on the back of Iraq War II after Afghanistan. So, therefore, there was a lot of positive disposition. He didn’t have the baggage of incumbency or didn’t have the baggage of long tenure as a senator. So he was a refreshing hope. It is very very difficult for anybody to match Obama’s ratings. I think that’s what Biden suffering from.
Sree Iyer: And on Global News. Now, China has declared that its Coast Guard is also like an arm of the Navy and therefore the Coast Guard of China could, in fact, use a Weaponry to shoot on Intruders and this is considered to be a political victory for Xi Jinping. We are going to of course talk more about it a little bit later in a dedicated program at 9:00 p.m. IST. Why do you think that is so and if it is, why was it not done before? Why now? What is the significance?
Sridhar Chityala: Look, there’s a sequence of events or activities that are taking place and it is not evident to people. Let me recap, this is a sequence of events that are happening ever since Trump left. These 8 incursions that we are talking about is getting exacerbated. Number one. Number two, the service ships of China is extending its tentacles into waters that are not their territory. Number three, they recognize that there is going to be an imminent immediate threat from fishing vessels of Philippines, Thailand, Indonesia into the waters and Coast Guards of Taiwan and Japan in the waters. What they’re saying is that the best way to keep them away is to give the powers to Coast Guard and say, anybody whom you see in your view, they are in our Waters, you are entitled to attack. So he’s created what we call as Navy 2. Navy 2 has been created because he recognizes that there is a vacuum. Only two Nations have stood up and three nations have stood up and condemned this; Japan, Britain, and France US have made no comments and US’s comments come on Hong Kong rather than on this specific issue. So, even India has been very passive in terms of its reaction to, this is a very major and very dangerous move that Xi Jinping has announced.
Sree Iyer: In fact, I might add that for years the Chinese ships have been going Criss Crossing back and forth the region between Nicobar islands and Indonesia and they have been doing the same kind of mapping there looking for reserves of gas, what have you, and that is way away from their boundaries and yet they have not stopped doing that. So there is something definitely at play and I again urge you to come back at 9 p.m. to watch that other program.
Sir, moving on we have Market moving again. It’s moving forward in the hope of a stimulus bill passing. What are your thoughts? I think Janet Yellen also has been making some statements. Where do we go, because after that we can then call it a wrap?
Sridhar Chityala: Great, the markets look positive on the back of the stimulus. Clearly, there is buoyancy in the markets on the back of some earnings, which has specifically come from Amazon, Apple, Alphabet earnings look good, notwithstanding the fact that there were diminishing returns from its cloud services business. Disney has had positive returns. So generally there is a positive buoyancy in terms of the earnings season, in the earnings, whereas JP Morgan also had excellent earnings, on the banking side. So what you have is earning momentum plus, there is the positive hope of a large stimulus. There is plenty of liquidity in the system. So it’s almost like a risk of trading that is going to be seen in the market rather than risk-on trading and I think that’s what you’re seeing for three successive days and we probably may have, I have not looked at the Futures, we will see a positive uptick. We don’t touch this, I also want to point out, we have stopped importing but we will, going forward. The oil has been ticking every day between 1.5% – 2%. If you have tracked our daily Global insights program, we have tracked oil from $35 to today just over $55, I think $55.95 probably almost at $56. So we have tracked very silently this spurt and that is purely because of two reasons. One, they have clearly recognized that there is going to be a disruption in supply as a result of all the changes that are coming in here and second is also that this is the moment to seize by the global market OPEC to cut the supply, spurt the demand, increase the price and make up for all the things that have been lost.
With regard to the second question that you asked which is about Janet Yellen. It is very unusual, unusual for a treasurer to be calling The Regulators to discuss the volatility in the markets caused by these and came up with very unusual. It is usually that, there are regulators and SEC and those people deal with these issues but very very unusual. I’m not sure what they’re going to do. It is also going to be taken in the Senate hearings, Senate hearings I can understand but the treasurer coming into the picture is very unusual.
Sree Iyer: It looks like the progressives are really getting their agenda implemented in a hurry under the Biden Administration and especially the Keystone Pipeline closing. I think the price of crude is reflecting the fact that there is going to be a major disruption in that part of the world where that particular part is not going to be producing anymore which makes the United States a net importer, which was not how even Obama had envisioned. So we’re going to be seeing some interesting gyrations. Stay tuned for a difficult ride in the next few months. This is a self-inflicted wound in my opinion on part of the Biden Administration. They could have waited a little longer and studied the impact or slowly brought it down. This abrupt closing is hurting. So let’s wait and see what happens.
Sir, thank you very much for joining us and we will be back again in a very very short time 9:00 p.m. IST PGurus Prime Time talking about China’s incursions. This is the first time that some channel has tried to put the big picture forward. You will be shocked to know all the things that are happening. Thanks, once again for joining us. Please subscribe to our Channel and We’ll be back very soon. Namaskar.
Sridhar Chityala: Namaskar. Thank you. Have a wonderful day and have a good evening in India.
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