Sree Iyer: Hello and welcome to PGurus channel, I am your host Sree Iyer. This is episode number 54 of daily Global insights. I am with Sridhar ChityalaJi. Sridharji, Namaskar and welcome to PGurus channel
Sridhar Chityala: Namaskar and very good morning and good evening to all looking forward to another bright day here. We are expecting a snowstorm in this east coast of the United States.
Sree Iyer: Wow, that should be something because Christmas is almost always welcomed with a lot of snow around you, so, you know, it’s coming true to form. So let’s jump right into what is happening in global development sir, Boris Johnson, the prime minister of the United Kingdom is going to be a guest at the Republic Day event in India. This is a much-awaited event because it was expected that following Brexit, the United Kingdom is going to seek new trade partners and it looks like they are looking towards India because they are also going to have Ministry level talks between the two foreign ministers. What are your thoughts on that sir?
Sridhar Chityala: My thoughts are that I’m very positive and my impressions are Britain on the back of the Brexit is demonstrating leadership in terms of reaching out to the world, which it is historically known for and transforming the goodwill that it has built over the years into monetizable capital. So, in other words, it’s saying to India, you are the second largest, we have an alignment. We have an alignment in terms of interests and strategic agenda. So, therefore he is endorsing, he made three things, you know, a praised Modi on specifically three areas. The first area that he mentioned is nobody talks about it because for some reasons because it’s India and it’s not China. India is the one amongst the only G20 nation or even G10 nation, which is likely to meet the client Paris climate accord guidelines, the most recent work that’s done by Mr Modi on the infrastructure on the renewable energy incremental capabilities and infrastructure that is building inaugurating in Gujarat is a reflection that you know, he’s very clear on the renewable side. So, I think that’s one thing that he personally endorsed. The second thing that he endorsed is the work that India is doing around the covid situation, so, which is to say India is demonstrating to the world that it is fully capable and be supportive and the way covid has been managed. I know different people give different percentages and different people have different data. India’s self-developed medication programs, whatever, the protocols that they’re using we discussed, seems to reflect that that the recovery rate is the highest in the world. The third thing that Johnson is taking leadership with Mr Emmanuel Macron of France with India and Japan on either side is around the new coalition that is being built upon the back of the quad. So there’s going to be discussions between Boris Johnson and the Japenese, Australians, the Koreans, the Germans and the French. So, this is the new kind of you know, the G7 or G10 discounting the fact that if Biden comes in and is less warm towards this, they have security deterrence mechanism plus the broad cooperation. I’m also told that he has asked the seven nations to cooperate in the alternative 5G mechanism not just purely on the network, but around all infrastructure and the Network equipment and devices on the 5G completely insulating China purely because of the security issues. He has also invited Korea, India and Australia to the G7 Summit. So, it’s almost like a G10 in the vacuum because you know, we have a vacuum here in terms of right now, Biden is the presidential elect certified yesterday. But, Trump continues to fight and battle on. So, in the absence of that Boris has stepped up and basically said you guys should be at the table for the G7 meet.
Sree Iyer: Thank you for that update, sir. Let’s take a quick look at India snubbing Canada on its prime minister statements regarding India’s Farmers agitation. I should say agitation in double-quotes because it is still difficult to understand, why one state is concerned about the law when the rest of the country seems to be perfectly happy with the new laws. Now, you know, when something like that happens, the last time I remembered something like this happening was when Mahathir Mohammad the then Prime Minister of Malaysia was essential, you know got rebuked by India when India refused to import palm oil from them and that resulted in Mahathir Mohammad losing his job as the Prime Minister. What do you see reading the tea leaves in Canadian politics because Justin Trudeau is completely dependent on a Khalistan sympathizing group, i.e., they have even got Deputy Prime Minister under that and that Deputy Prime Minister’s brother, I think making some interesting comments about the farmer’s agitation. Everybody now knows that there are Khalistani signatures in this agitation that is taking place in Delhi. What do you make of it? Quickly and then I can move on to markets.
Sridhar Chityala: Well, I think it’s a very fascinating interjection by him; firstly his visit to India was very unpopular, you know Trudeau’s visit was very very unpopular. I mean his lack of protocols, just went about it. It’s my view of this is he’s now become one of the members while he sits in the five eyes group is almost become an extension of the Chinese thought process or partnership. You know within the apparatus of the global politics, so the story is that for him to interject it to something that has no relevance to Canada only means is probably satisfying his constituent interest from a political aspirational desire point of view. So, as you rightly pointed out there is this Khalistani sympathizing group within his government plus also they formed his electoral base. So it’s basically poking his finger at it. At their kind of instigation, it has no relevance to Canada. It’s like we have a vested set of people in the United States, all seem to be in the Democratic camp is not much in the Republican Camp. The reason why I say that is many of the democratic councils which voted for this, the CAA and the Article 370 resolutions. They all the consulate say, why don’t you get some of your Republican councils to vote? It seems very similar in Canada, which is to say, okay, you know we sympathize with this agitation or people in Delhi and has to be resolved, as though India doesn’t know how to deal with these types of issues.
Sree Iyer: Thank you, sir. And let’s take a look at one of the five eyes partner Japan. It has been making some very quick moves recently. Can you throw a little bit more light on that sir?
Sridhar Chityala: Well, I think two things, first and foremost it now recognizes the area to be very very sensitive in Kasuguwa area. What they have done now is they have effectively drawn a huge perimeter which will be under observance people who are living in that area, people who are trying to buy property in that specific area, people who are moving in and moving out not only the restrictions have been placed but also a very close monitoring apparatus that has been put in by Japan recognizing the fact that there are potential security threats in the region and especially in that in that specific block. So, therefore, I think that’s what and there’s also your people should remember that’s also the base of the seventh fleet. So be the emphasis is around, with all the security stuff that is going on around the world that is one area, which is very very sensitive.
Since you asked that question, it’s a very provocative statement by the Chinese foreign minister and whosoever is dealing with in the foreign Ministry. In fact when New Zealand raised the issue because New Zealand is working with Australia. This is the China Trans-Tasman kind of tensions around the same when they brought this five eyes or six eyes issues, you know, they made a very provocative statement, which is, we can publish that statement, New Zealand better watch out, otherwise, we will pluck your eyes. This is the statement quote-unquote ‘will pluck your eyes out.’ This is a statement from the Chinese Foreign Ministry. That just is a reflection of why Japan wants to tighten the entire infrastructure around that area and put restrictions and controls – who is in and who is out.
Sree Iyer: Sir, let’s move on to markets now and I want to come back to this in just a little bit later if there is time. On the markets, there is some movement about a stimulus bill passing because yesterday the Dow was up 300 plus points. Where do you see things settling between the Democrats and the Republicans on the Stimulus Bill, sir?
Sridhar Chityala: Well, I think that there seems to be a sense of urgency because money is running out, people are complaining about either side of the aisle. There is a general consensus that there have to be shutdowns. And with more Democratic states in favour of shutdowns with the Republican states not in favour of shutdown. The mass vaccination program commencing, it has collateral kind of consequences in terms of offices functioning normally and people getting their compensation, businesses coming back to normal. So there are three-four specific areas where the focus is, which is namely PPP – the payment protection plan has to be back in place to address the small businesses. Warren Buffett went on to make this statement which is to say ‘Guys, wake up, small businesses are one of the most affected in this and they are the engine of the economy. They need to be supported. So get your act together and get the stimulus up.’ We have discussed close to 50% of the GDP comes from the SMA or SME businesses in the United States.
The second one is that it is all these things around vaccination testing has to have adequate liquidity in place. So the programs can be pre-acquired and run, for example, the United States has stated that not only 100 million people will be vaccinated and they need for close to 400 million or 300 million vaccines it is Pfizer, they are going to approve Moderna, so all this requires incremental funding. Then they are also going to use pharmacies and other places as distribution centres then hospitals need to be augmented. So for that, the whole program requires close to about 200 billion dollars. The unemployment insurance needs to be extended and they are adding another $300 that needs to be, where the contention seems to be is around this support what they call as the business protection insurance which is liability protection insurance in the event of something, there is a claim then the businesses need to, in these kinds of situation, the businesses are ill-equipped so the government augments that program. And then you also have the local governments and local administration in certain states which may not be capable to manage itself to meet the needs.
So the question, therefore, is Steve Mnuchin and McConnell’s point is these guys are bankrupt anyway, and we have to manage it through Central programs, we cannot manage it through by guide of shoring up the balance sheets. This is a fast issue that seems to be close to 200 billion dollars of contention between two sites. Increasing the PPP, increasing the vaccination, increasing the education, increasing the testing, increasing the unemployment insurance, none of these are contentious on either side. The whole 200 billion dollar block is around that. I think they will have to resolve in some way and move the needle and take this forward.
Sree Iyer: Thank you for that sir and viewers you might have noticed that we have not talked one word about US Elections today because we are building up for what is going to be a thrilling hang out tomorrow. A lot of stuff coming down your way. You will be surprised at how much has happened in the last few days and it requires a complete session only on the US Elections. Sridharji, a lot of the stuff that has been happening is not showing up in mainstream media. Instead, we have to look at the second tier of media, which has been very bravely putting out a lot of information perhaps for our viewers’ information if you want to add up and look up a little bit more than what we are sharing in our 15-minute news capsule, could you please you know list a few publications that you think are doing an excellent job right now, sir?
Sridhar Chityala: Well, I think we have consistently maintained mainstream media has turned a blind eye, has just basically shut, it said there’s nothing happening. But on the contrary, there’s a lot happening. For example yesterday we moved from 4 states to today’s seven states, in terms of casting electoral votes. It’s almost dismissed. So to answer your specific question the second tier of things that have built-up done are people like the Epoch Times, people like Breitbart, people like Gateway Funding, people like Newsmax. Also, the new social channel The Parlor, so that’s the one where you see a lot of activity being shown and discussed in social media channels because the traditional like channels like Facebook and Twitter is blocking. So that’s where you see a lot of news as it relates very specific not only to states but what is coming out in terms of several changes that are taking place in the presidential team as well as from the legal point of view.
Sree Iyer: Now, viewers just to round out the stuff there is another website called Infowars that also giving a lot of information. Now the most important things is an average viewer who is independent-minded, now when he sits down in front of a television and he starts watching CNN that is so left-leaning that the TV slowly start lurching left and then it falls off of the table gets up gets the TV back up in the centre, and then he starts watching the right thing channel and then the right-wing Channel starts moving the TV on the right side and then the TV just falls off on the right side. So this thing about news, the news is the truth that somehow seems to have become a casualty and this is the niche this is the thing that we are trying to fill-up in PGurus. We’re not saying that Republicans are right or democrats are wrong or the other way around. All we are saying is this is what is happening today. It’s for you to decide what is right and what is wrong and all we can tell you is, we are like a thermometer we can tell you temperature is going up, the temperature is going down. That’s all we can tell but be that as it may, it is a lot of information that is coming down tomorrow. You will be surprised to know what kind of games deep states play, one of those things will be touched upon tomorrow again. I’m building up for a big tasty event for you for tomorrow, but be that as it may, please stay tuned and as always it’s a pleasure having you Sridharji. Namaskar, and we will be back tomorrow.
Sridhar Chityala: Namaskar and thank you so much.
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