🗽US debt ceiling talks on hold - will the markets destabilize?
📉 The reason behind Germany going into recession.
🪷 Modi is about to complete 9 years - here’s what he accomplished so far.
Read Time: 4 mins
US Debt Ceiling Crisis
Debt Ceiling Talks Reach Deadlock, Investors Concerned
The talks between President Biden and congressional Republicans on raising the US debt ceiling have reached a standstill. Investors are getting more and more worried about this, and the stock market closed lower on Tuesday. Short-term Treasury yields also rose, with one-month bills hitting a record high of 5.888%.
US Government Borrowing at Limit, Default Possible
The government is currently borrowing at its statutory limit of $31.4 trillion. If the debt ceiling is not raised, the government won't be able to pay its bills and could default on its debt. This would have a devastating impact on the US economy and could lead to a recession.
Biden Administration Urges Congress to Raise Debt Ceiling
The Biden administration is urging Congress to raise the debt ceiling immediately. However, Republicans are refusing to do so unless Democrats agree to their demands on other issues, such as immigration reform.
Our Opinion: It is crucial for political parties to swiftly reach an agreement on raising the US debt limit to avoid potential economic turmoil and protect the nation's financial stability and credit rating. Failure to reach a timely agreement on raising the US debt limit could undermine investor confidence, disrupt financial markets, and have far-reaching negative consequences for the country's economy and global standing.
War & Recession
Germany's Economy Contracts in First Quarter
Germany's economy shrank by 0.3% in the first quarter of 2023, marking the start of a recession. The contraction was driven by a decline in household spending and industrial production.
Inflation Continues to Rise
Inflation in Germany rose to 7.2% in April, the highest level in 40 years. The rise in inflation was driven by higher energy prices. The war in Ukraine has disrupted supply chains and led to higher energy prices. This has made it more expensive for businesses to operate and has led to higher prices for consumers.
Our Opinion: The outlook for the German economy is uncertain. The war in Ukraine is likely to continue to weigh on economic growth, while the ongoing energy crisis is likely to keep inflation high. The German government has taken a number of measures to try to mitigate the impact of the war and the energy crisis, but it is unclear whether these measures will be enough to prevent a prolonged recession.
9 Years of Modi
A Glance at PM Modi's Game-Changing Economic Policies
Prime Minister Narendra Modi-led BJP government at the Centre will complete its 9 years on May 30, 2023. Let's take a quick look at the nine schemes brought in by the Narendra Modi government in the past nine years.
- Jan Dhan Yojana was launched in 2014 to provide financial services to the poor.
- Kaushal Vikas Yojana was launched in 2015 to provide skill training to the youth.
- Mudra Yojana was launched in 2015 to provide loans to micro and small enterprises.
- Fasal Bima Yojana was launched in 2016 to provide crop insurance to farmers.
- Swachh Bharat Abhiyan was launched in 2014 to make India open defecation free.
- Ujjwala Yojana was launched in 2016 to provide LPG connections to poor households.
- Atal Pension Yojana was launched in 2015 to provide pension to the unorganized sector workers.
- Jeevan Jyoti Bima Yojana was launched in 2015 to provide life insurance to the poor.
- Suraksha Bima Yojana was launched in 2015 to provide accident insurance to the poor.
- Gramin Digital Saksharta Abhiyan was launched in 2014 to provide digital literacy to rural citizens.
Our Opinion: These initiatives demonstrate the government's unwavering dedication to confronting social obstacles directly, aiming to bring about tangible improvements in the lives of individuals throughout the nation. Although some of the failures of the Modi government in the last 9 years include issues such as economic slowdown, failure to eradicate black money through demonetization, and challenges in implementing effective employment strategies.
