All Posts (1239)

IMF forecast pointing to recession in 2020

Chief economist of Moody’s Analytics, Mark Zandi, says risk of global recession is awfully high if something doesn’t stick to script. He also mentioned that even if we don’t have a recession over next 12-18 months, we are going to have much weaker economy. His stick to script includes

  1. U.S. President Donald Trump not escalating trade war with China
  2. U.K. finding a resolution to Brexit
  3. Central banks having monetary stimulus

Chief executive of JP Morgan Chase, Jamie Dimon, says “Of course there is a rec

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Latest Jobs Report

The October jobs report was just released with encouraging statistics. It has been feared that we are entering a recession. In the latest report, unemployment did rise slightly to 3.6% but 128,000 jobs were created. The rise in unemployment was due to new job seekers. I think it's great that people who had left the labor market are not re-entering and looking for jobs. That is a positive for the economy. The United Autoworker strike from GM didn't even have the effect on the jobs report that wer

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Artificial Intelligence (AI), this technology is quickly reshaping the economic activity and human behavior. Several estimates suggest that AI could create trillions or tens of thousands of dollars in wealth. Right now with AI, we have a set of partially connected national economies playing a global stage.

Now everyone would have this doubt how machine learning could boost the global economy. Most of them think that machine learning is used only for statistics to train computers to independently

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CT Teacher Pension Crisis

A recent report published by the Yankee Institute for Public Policy, based in Hartford, provides some staggering data about the extent of this issue and the looming crisis it is creating.  Yankee points out that not only are Connecticut tax payers on the hook for higher taxes to fix this mess but the current system does a poor job of helping towns recruit and retain talented teachers and leads to a tremendously inefficient use of public dollars in our education system.https://yankeeinstitute.org

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Hong Kong has entered a recession in their third quarter for the first time in a decade. Reported on October 31st, their economy shrank 3.2% during the quarter and economists expect it to continue into the New Year. With the continuation of the US-China trade war Hong Kong, being a major trading hub, has suffered greatly. However, political unrest has also played a huge role in their economic decline. Hong Kong has being going through months of anti-government protests resulting in the city’s to

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Federal Reserve October Decision and inflation!

 

Yesterday, Mr. Jerome powell has announced interest rate cuts, The  Fed cut its Fed funds target rate 25 base points to 1.50% to 1.75%, and gave its point of view about the US economy and expectations, so what is the role of the federal reserve, why this decision has been made, why inflation is main issue to Fed?

The Federal Reserve was founded in 1913, and it is the central bank of the US, the general role of this bank is to monitor and do any adju

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            According to an article by CNBC, analyst Rohit Kulkarni of MKM Partners has predicted that Amazon will surpass Oracle as the second-biggest enterprise software company. This is expected to happen in the next 12 to 15 months. The article goes on to explain that Amazon Web Services or AWS is more profitable than the company’s core e-commerce business, generating impressive amounts of $2.26 billion in operating income in Q3 and $9 billion in revenue. Moreover, analysts polled by FactSet

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The United States has the most dominant currency in the world. Their status has come under pressure since dominating countries also known as “Major movers,” including China, Russia and the European Union are desperately trying to take over the top-ranking spot to become the most powerful currency.  Korin, the co-director at the energy and security think tank stated, “We don’t know what’s going to come next, but what we do know is that the current situation is unsustainable”( “A 'Growing Club' of

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Why do I live in Connecticut

Why do I live in Connecticut?
Connecticut is the 4th most densely populated state in the country - https://state.1keydata.com/state-population-density.php

As of 2015, Connecticut is was the 2nd highest per capita income with the average income of $66,000, Second only to Washington D.C. who’s average income per capita was around $71,000.
https://www.infoplease.com/business-finance/poverty-and-income/capita-personal-income-state


Connecticut has one of the lowest poverty rates in the country at 9.76% a

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The Deterioration of Global Trade

Global trade is on a decline for several reasons, a few of which stand out. Global trade is expected to reach a record low growth since 2009 by the end of 2019. The World Trade Organization estimates that world trade in merchandise will expand by only 1.2 percent in 2019. That being the weakest since 2009 when it decreased by nearly 13 percent as a result of the 2008 economic crisis. This slowdown in just one part of the global trade shows trends towards further slowdown and a chance at a recess

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Modeling the impact of AI on the world economy

Artificial Intelligence can contribute tremendously to global economy activity. A study by Mckinsey Global Institute has shown that AI has a potential to deliver additional economic activity of around $13 trillion by 2030, or about 16% higher cumulative GDP compared with today, which is 1.2% additional GDP growth per year.

To show the impact of AI on the world economy Mckinsey has done a simulation that examined seven possible channels of impact specifically the impact of AI adoption, product fac

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On October 7, 2019 the US signed two limited trade deals with Japan which slashed tariffs on American agricultural exports worth $7.2 billion. They did not however, address President Trump’s threatened auto tariffs. The two deals scrap Japanese tariffs on certain agricultural products amounting to $4.3 billion and meat products worth $2.9 billion while tariffs would remain on the other roughly $1.7 billion of agricultural products. As part of this deal, digital products such as digital media and

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Things are not looking very positive for the Global economy. Some officials are saying that the signs of a possible meltdown are being ignored and the potential impacts will be harsh, others are pushing for quick fixer uppers rather than thinking long term and a little bit of global economic chaos seems to be occurring. After the recession in 2008, banks had their regulations tightened in order not to repeat the same mistake. Corporations in the eight major economic countries are taking on more

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The US went into debt since 1934, till 2019 the number of debt already reach 22000 billion dollars.

 

The international monetary fund predicts the debt of America will reach 1.6 times than GDP. If we only focus on data, which looks like no one will buy the treasury from the US. But actually the US treasury is the world recognized AAA grade investment products.

 

The United States is the poorest country in the world(High Debt). It is also the wealthiest country in the world(High Debt). The US become

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“The federal reserve should get our interest rates down to zero or less” trump tweeted. Federal bank has cut interest rates for third time in a row now. But still president Trump insists Fed to go zero or negative interest rates. He mentioned in his tweed that we should pay less interest than our others.

With negative interest rates, people should pay interest to keep their savings safely in banks. It was introduced by Danish bank followed by eurozone, Switzerland, Japan and Sweden to help their

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Should we Forgive U.S. Student Loan Debt?

 

As both the 2020 presidential election inches closer and the U.S. national student loan debt grows by the day, the conversation around forgiving or not forgiving the $1.6 trillion racked up by Americans across is becoming more intense and much more urgent. Many presidential candidates have suggested plans for eliminating or helping with student loan debt, but will it work? What impacts would forgiving or not forgiving this large debt have?

One presidential candidate, Elizabeth Warren, a Democrat

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Global Borrowing Rates

https://www.msn.com/en-us/money/markets/banks-are-paying-people-to-borrow-money-thats-alarming-news-for-the-global-economy/ar-AAFN2mi

 

In today's market, the American population is accustomed to paying an interest rate of approximately between four to five percent. In a bold market move, Denmark's Jyske Bank is offering a 10 year mortgage of -0.05 percent. While this is a positive financial outlet for potential Danish homebuyers (will pay extremely marginal interest), it creates an interesting dy

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Beijing played a pivotal role in reviving global growth after recession in 2001 and 2008 . 

The recession indicators of the US  are growing strongly and that is a matter of concern . Economists are starting to wonder if the US has approached the stall speed, the slowest pace of growth without careening into a recession . 

China drove the global economic recovery after 2001 and 2007 downdraft in America . This time China is not going to rescue . After 2001 and 2007 , Beijing helped by opening the g

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IS INDIA READY FOR RCEP?

IS INDIA READY FOR RCEP?

RCEP is a free trade agreement between ASEAN and six of FTA’s partners.  The RCEP trade members include about 3.4 million people with a total GDP of about 49.5 trillion which is bout 39% of world GDP. With combined GDP of India and China which is almost half of it.

Indian officials are narrowing the gap between, putting in an inadequate protection for import cheap Chinese products which is feared to flood Indian markets. The farmers and affiliated organizations have appeal

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The Federal Reserve and Interest Rate Cuts

The Federal Reserve of the US (also known as the Fed and the Central Bank), has the following responsibilities; to conduct the nation's monetary policy, to supervise and regulate banks and other important financial institutions, to maintain the stability of the financial system and to provide certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions. Recently the Fed has been cutting interest rates. Interest rates play a huge part in the ec

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