Sree Iyer: Hello and welcome to PGurus Channel. This is Sree Iyer, because of some technical issues SridharJi is unable to join us via video, but he is called in on an audio line, so you will be able to listen to him. SridharJi, Namaskar and welcome to PGurus Channel.
Sridhar Chityala: Namaskar, and good morning and nice to be here.
Sree Iyer: Welcome to episode number 43 viewers. Today, we have a lot of things that are happening. Let us first start with what is happening in the markets SridharJi, we had an impressive November this year, haven’t we?
Sridhar Chityala: We have, it’s quite amazing that the markets in the month of November showed the highest and propensity type of growth and the last that was witnessed was in 1987 of this. The Dow was up 11.8% in November and the S&P was up about 10.8% and Nasdaq was also up about 11.8%. So, it’s a very significant uptick in the market. And everybody attributes the uptick in the market in November. Not just because of the effects of the stimulus but also because of the emergence of a number of vaccines, Moderna, Pfizer, AstraZeneca and then, J&J, Regeneron, so a number of vaccines and a defined program that has that is being constructed notwithstanding the fact that much contention in the elections from the outcome. There is a vaccine program that has been constructed in terms of moving things forward. So people attribute to the vaccine, but people forget to attribute to President Trump, because of these personality issues. War speed everybody acknowledges including Financial Times acknowledges, project War Speed was a success, which was launched by President Trump around March- April when the Pandemic was rising. He indicated that the vaccines would be ready by end of the year and the problem can be tackled. So, the markets gave big thumbs up notwithstanding the uncertainty around the election part of it.
Sree Iyer: Thanks for that update on Market. So let’s take the 800 pounds gorilla in the room, which is the US Elections. So viewers, I just wanted to again reiterate as we speak, you can see an animation slowly moving across the screen for you and everything blue is Democrat and everything red is Republican. And if you have a red background on a screen that means that it is a republican majority in that. So, the most important thing here is we can start with what is happening with the legal team of Rudy Giuliani, sir. Where do things stand with his stuff?
Sridhar Chityala: As far as Rudy’s team is concerned, yesterday, they had a presentation in the state of Arizona and even president, stepped into that specific meeting and called it as the biggest kind of a scam and Arizona legislature must review the results and make a deterministic course. And just since you have over here under Arizona and Rudy, we can probably wrap this thing. They certified the result, but, at the same time they have only allowed the Republican members (GOP) to examine on a selective basis, some of these valid ballots and signatures and all those material and they have time till 1:00 p.m. today to kind of complete the process and then determine what they need to do?
Notwithstanding the fact that is certified, there’s a very high degree of contention Arizona and so that’s a good step that is the process of the legal verification has been granted to the Republican Party.
Sree Iyer: Sir, this is as far as Rudy Giuliani in Arizona is concerned. Are there any other state updates for Rudy Giuliani team sir?
Sridhar Chityala: No, I think that that’s the reason why I just paused at that.
Sree Iyer: No problem. Let’s go on to the independent team consisting of Sidney Powell, Linwood and she has had some significant new additions, hasn’t she?
Sridhar Chityala: She has, in fact, if you recall just reiterating we covered this in our Sunday call Dr Keshab Raj Seadie, the Crypto scientist and the data analyst has now formally joined the Sidney Powell’s team to give credence to the compromises that have occurred in the monitoring management and the execution of the Dominion software. And he’s even given his own affidavit and we will put it up in the website, it is quite extraordinary what he has stated. In fact, he went on to say that he can affirmatively confirm that the machines were accessed, the data was compromised and switching up the votes took place, when you look at the pattern of swings and the pattern of allocation across the country. He is not referring to just Georgia but, he’s referring it across the country. Now, he’s a significant addition in the too Michael Flynn, who was given clemency on Sunday. He is also joined Sidney Powell’s team. So, they are investigating, they are going to go out across the entire nation but starting with probably Georgia, Michigan, which is where specific cases are filed.
Sree Iyer: Now, there’s also been an affidavit by someone in Michigan who was a contractor with the software company Dominion, who said that the internet was actually connected during some part of the counting to the machines. What can you tell us about that sir?
Sridhar Chityala: I think that this gentleman was a contractor in for the dominions software company, so he knows the software and he probably was responsible at the Detroit Metro and you know, for establishment set up and then he also has had a life, as an observer, what he’s taking is that you can affirmatively confirm that the voting machines were connected to the internet during the counting process that was kind of going on. What is implying is that the potential breaches and real-time access to data were available through an open connection via the internet.
Sree Iyer: Viewers, there are also allegations that in 2019 the private cryptographic key of the Domainian software was hacked and that some people were in possession of that. Now, it is not clear if the Dominion did address this issue because if the private key portion of the cryptographic key is available, then you pretty much have the run of the place. You can essentially do whatever you want from outside and if have internet is connected, then that’s sort of like giving the keys to the building anyone from anywhere in the world can log in.
I am just making some observations here; I’m not saying that that is what happened. Here are just the allegations, it is up to Dominion software to go and start listing one by one what happened if there was a breach in the cryptographic Keys in 2019. Also just quickly you all need to remember that when we do online trading like for example, log in to Amazon, there is something called as a public-private key pair and the private key never leaves you, it’s always with you and only the public key is shared with the outside world. So, if the private key is given that means anyone can decode messages meant just for you. This is just a quick primer on how cryptographic Keys work. So, beyond that, I think there are a lot of other things happening.
SridharJi, let’s move on to the economy and the two contrarian stands apparently taken by Steve Mnuchin and Jerome Powell, sir.
Sridhar Chityala: Well, I think yesterday there was another discussion around the stimulus because of the rising Covid cases. Jerome Powell made a statement. He will be making the house and the senate members and doing his briefing. Usually, one day before you get a script of the text, what is likely to be discussed? To give you a hundred thousand feet view, Jerome’s point is that, look you know, this 455 billion dollar, which we transferred is a good backstop for the great markets and that’s what helped in the first phase of the journey and that should be retained with the FED which gives them the flexibility in terms of addressing the needs going up to December 31st, because technically this aid lapses on December 31st until the new government comes in.
The contrary view to that is, Steve is basically stating that look, there is a formula, the formula is very simple that this thing was approved and signed for it to be available till December 31st. The programs not been implemented, there is no approval by the house and the senate in concert with treasury to do what the stimulus would look like. In the absence of that, we are taking it back and leaving it in the treasury reserve and it will stay there. And should Nancy Pelosi and Schumer and McConnell and Kevin McCarthy meet with me and agree that we pass a program, then the capital can be released. There are also some issues around how the 455 billion dollars is to be allocated, whether it is a backstop for the credit or whether a part of that money should be allocated directly and some other programs. I am of the opinion that between Jerome Powell and Steve Mnuchin, so there are two different approaches. Naturally, FED always wants to have money in the back-end which it wants to use when it’s required whereas the treasury said that the FED but also look at what other kinds of economic stimuli that needs to be applied, not just purely the monetary stimulus.
Sree Iyer: So let’s take a quick look at what else is happening in the globe. Maybe you can do a quick roundup of what is happening around the globe, especially in China region because China seems to be in just about every frame it can possibly get into.
Sridhar Chityala: Oh! I think that first, we’ll start with Brazil, Bolsonaro has said that he’s aware of the fraud. And so, therefore, the story is that the US Presidential election a spat has broken out between China and Australia. Australia had insisted that China was responsible for Covid and needs to compensate. So China has reciprocated with the CCP spokesperson basically talking about the Australian soldiers potentially involved in ill-treatment of children. So, there is this fact that is going on, that Australia was one of the key members of the Quad. So just that’s just not it. So then you also have China stepping into as we already covered, China said it would like to revive, like to become part of the CPTPP. Then it also wants to be part of, its hosting one Belt Road initiative meeting in Hong Kong to make it, Hong Kong was a contentious hotspot between the United States, the rest of the world, and China in terms of democratic principles because they withdrew and everybody in Hong Kong legislators must all sign up and stand up to the red flag, which they were not supportive of. So now you have this one Belt Road initiative being set up in the conference being held in Hong Kong. Then it has actually stepped into the Indian Ocean and basically trying to work with Sri Lanka bypassing the Indian kind of context and competing with India as you probably know we covered this again, the United States came to the rescue of Bangladesh in terms of helping the defence and Japan came to the rescue of Bangladesh to keep China away. So it looks like China now has stepped into Sri Lanka which was to be with India and India has now moved into Maldives and Seychelles and trying to help those countries with credit facilities, which are far more harmonious relative to the hostile type of things that happen. Again, China is using both this footprint as well as media as its two vehicles in terms of like dangling in the region.
Sree Iyer: So I think except for perhaps aiding 99-year lease for Hambantota perhaps Sri Lanka is now back in the India Camp. Let’s hope that that happens and that relations thrive and the Maldives firmly appears to be in India’s camp and Bangladesh and Nepal are perhaps the next two who I would think would identify with India, sir. Correct me if I’m wrong, but the biggest question that is in people’s minds is that, is China going to make Pakistan a part of its own by just basically telling them now ‘we own you’ because Pakistan is not even able to make the interest payments on the CPEC loans that it has taken.
Sridhar Chityala: Yeah, well, China has given impinging rights to Pakistan and Pakistan Army in the CPEC Corridor China passed Pakistan Economic Corridor that is actually being contested within the state legislature or the national parliament of Pakistan that such overriding thing should not be given to the Army and they should be some government mechanisms. Remember, we still have Afghanistan with US soldiers 50% of them moving out in suicide bombings growing. What’s going to be the situation between India and China to dip into Afghanistan is another hot topic that’s likely to come in.
Sree Iyer: Thank you, sir. And with that, we bring an end to our news capsule for the day. We’ll be back tomorrow. Same time same location and the same host and hopefully Sridharji you have your video challenges taken care of and until then, see you all and Namaskar.
Sridhar Chityala: Namaskar. People have not left. Can I take just three minutes to wrap up the election because we went here?
Sree Iyer: Yes, yes, please go ahead.
Sridhar Chityala: Because it’s very important for people to know the magnitude of the challenge that the United States faces in terms of the election around the systems and software is quite propensic. There are more than 500 different kinds of cases that are being filed across by individuals across five states around the country. There are close to 14,000+ incidents that have occurred during the process of elections. So the magnitude of this from a systemic point of view in terms of the compromises is not a kind of a pie in the wall, but it is quite huge. And this now is not just in Wisconsin or Michigan or Pennsylvania or Arizona or in Georgia, but it seems like across the country. So there is a report that has also come out which states that the way this whole election system was managed, not only in blue states and red states but across the what you call as the battleground states that says that there is a selective amount of voting pattern switching that has taken place across the country to seamlessly provide a kind of optics that the elections were closer than they were using this pattern of vote switching. This is what Dr Nia is talking about and some of the specific affidavits are, though we haven’t covered in detail, which we did on Sunday program of the magnitude of the issues specifically around the six states notably in Michigan, Pennsylvania, and Georgia. Pennsylvania tops the list where we’re talking about 1.2 million votes potentially under compromise and we are talking about 300-400,00 votes in between Michigan and Georgia. So overarching message that we are giving here is the cryptologists, the national security people have all joined the legal team in terms of assessing and I think Sree Iyer spoke about this cryptography and some publicly being lost and taking bad entry into voting systems and counting systems in terms of the ability to manage this switching and managing the patterns. So I think this is not much more than what we are seeing at the moment and there is much more water to probably flow before we see the last kind of data point on this.
Sree Iyer: Thank you very much, sir. And as always, it’s a pleasure to have you with us and will be joining tomorrow again, same time, same place, same channels, please subscribe to our channel, we are about hundred thousand now. If each one of you refer to one friend or family to us, we will be easily hitting the 200,000 mark. We would like to get to the 1 million mark as quickly as possible. Once again, thank you very much. Namaskar Sridharji.
Sridhar Chityala: Thank you and Namaskarji.