Tag: US

US government may shut down, and the risk is significant

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The United States government is staring at a shutdown starting at 12.01 am (Washington, DC, time) on Sunday, October 1. This would mean a complete cessation of nonessential government services unless the US Congress passes the necessary spending bills or a continuing resolution that provides stopgap funding. A shutdown will have a ripple effect across the US economy, from federal workers not receiving their salaries to households potentially not having access to some federal benefits.

To understand how the United States arrived at this point, it is crucial to recognise that the country faces a massive budget deficit of $2 trillion. This amount represents a doubling of the deficit from last year and is significantly higher than pre-COVID levels.

The primary reason for this deficit is that government revenues have remained at levels similar to those before pandemic, while spending has increased substantially. One notable factor contributing to this increase in spending is the rising cost of servicing the interest on the national debt.

It’s worth noting that this potential government shutdown wouldn’t be the first of its kind in the United States. In fact, there have been 14 government shutdowns since 1980, as reported by the Bipartisan Policy Center.

The most recent was a partial shutdown in 2018-19; it was also the longest, lasting 35 days. Historically, US government shutdowns have not had an impact on markets. And if one takes a look back at all those shutdowns, the average return has been 0 — essentially flat. There are a couple of reasons for that: one shutdowns are temporary, and two, any economic disruptions are also temporary. So government employees may not see pay cheques during a shutdown, but they receive back pay when things resume, so it all balances out.

If we zero-in on the three shutdowns which have been relatively more prolonged, the return has been net positive.

But there are implications which go beyond the equity price — for instance, important economic data releases.

Morgan Stanley compares the possible shutdown this time to the one in October 2013 as the dates — October 1-16 — line up nicely for the comparison.

Morgan Stanley  highlights how back then, the economic data release was delayed

In October 2013, the September CPI report was released on October 30, which was after a roughly two-week delay. This, in turn, pushed the release of the October CPI 2013 report because of September’s processing backlog. The October CPI report was released on November 20, 2013 — three trading days late. Also, labour data was delayed. The September 2013 payroll report was released on October 22, six days after the shutdown ended. The October payroll report was released one week later than scheduled, on Friday, November 8.

So that’s one risk — economic data releases are crucial for the Federal Oen Market Committee (FOMC). If there’s a shutdown this time, the FOMC meeting on scheduled for November 1 could be affected. If the shutdown persists, it could also could have a bearing on the US Federal Reserve’s rate decision.  According to Goldman Sachs, however, a modest shutdown, in terms of duration, should have little effect on the Fed’s monetary policy

A prolonged shutdown would add to the arguments in favour of postponing the November meeting and, finally, according to Moody’s, would be “negative’ for the US’ debt rating”. Moody’s, one must remember, is the last major rating agency which has yet to downgrade the United States’ debt.

Also read: Janet Yellen ‘feeling very good’ about soft landing for US economy

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US-Saudi defence pact linked to Israel deal, Palestinian demands take back seat

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Saudi Arabia is determined to secure a military pact requiring the United States to defend the kingdom in return for opening ties with Israel and will not hold up a deal even if Israel does not offer major concessions to Palestinians in their bid for statehood, three regional sources familiar with the talks said.

A pact might fall short of the cast-iron, NATO-style defence guarantees the kingdom initially sought when the issue was first discussed between Crown Prince Mohammed bin Salman and Joe Biden during the US president’s visit to Saudi Arabia in July 2022.

Instead, a US source said it could look like treaties Washington has with Asian states or, if that would not win US Congress approval, it could be similar to a US agreement with Bahrain, where the US Navy Fifth Fleet is based. Such an agreement would not need congressional backing.

Washington could also sweeten any deal by designating Saudi Arabia a Major Non-NATO Ally, a status already given to Israel, the US source said.

But all the sources said Saudi Arabia would not settle for less than binding assurances of US protection if it faced attack, such as the September 14, 2019 missile strikes on its oil sites that rattled world markets. Riyadh and Washington blamed Iran, the kingdom’s regional rival, although Tehran denied having a role.

Agreements giving the world’s biggest oil exporter US protection in return for normalisation with Israel would reshape the Middle East by bringing together two longtime foes and binding Riyadh to Washington after China’s inroads in the region. For Biden, it would be a diplomatic victory to vaunt before the 2024 US election.

The Palestinians could get some Israeli restrictions eased but such moves would fall short of their aspirations for a state. As with other Arab-Israeli deals forged over the decades, the Palestinian core demand for statehood would take a back seat, the three regional sources familiar with the talks said.

“The normalisation will be between Israel and Saudi Arabia. If the Palestinians oppose it the kingdom will continue in its path,” said one of the regional sources. “Saudi Arabia supports a peace plan for the Palestinians, but this time it wanted something for Saudi Arabia, not just for the Palestinians.”

The Saudi government and the US State Department did not respond to emailed questions about this article.

‘Less than a full treaty’

A US official, who like others declined to be named because of the sensitivity of the matter, said the parameters of a defence pact were still being worked out, adding that what was being discussed “would not be a treaty alliance or anything like that… It would be a mutual defence understanding, less than a full treaty.”

The official said it would be more like the US relationship with Israel, which receives the most advanced US weapons and holds joint air force and missile defence drills.

A source in Washington familiar with the discussions said MbS had asked for a NATO-style treaty but said Washington was reluctant to go as far as NATO’s Article 5 commitment that an attack on one ally is considered an attack on all.

The source said Biden’s aides could consider a pact patterned on those with Japan and other Asian allies, under which the US pledges military support but is less explicit about whether US troops would be deployed. However, the source said some US lawmakers might resist such a pact.

Another template, which would not need congressional approval, would be the agreement signed with Bahrain on September 13, in which the US pledged to “deter and confront any external aggression” but also said the two governments would consult to determine what, if any, action would be taken.

The source in Washington said Saudi Arabia could be designated a Major Non-NATO Ally, a step which had long been considered. This status, which several Arab states such as Egypt have, comes with a range of benefits, such as training.

The second of the regional sources said Riyadh was compromising in some demands to help secure a deal, including over its plans for civilian nuclear technology. The source said Saudi Arabia was ready to sign Section 123 of the US Atomic Energy Act, establishing a framework for US peaceful nuclear cooperation, a move Riyadh previously refused to take.

The Gulf source said the kingdom was prepared to accept a pact that did not match a NATO Article 5 guarantee but said the US had to commit to protecting Saudi Arabia if its territory was attacked. The source also said a deal could be similar to Bahrain’s agreement but with extra commitments.

Seeking Israeli Commitments

Israel’s Prime Minister Benjamin Netanyahu has hailed the possibility of a “historic” peace with Saudi Arabia, the heartland of Islam. But to secure the prize, Netanyahu has to win the approval of parties in his a far-right coalition which reject any concessions to the Palestinians.

MbS said in a Fox News interview this month that the kingdom was moving steadily closer to normalising ties with Israel. He spoke about the need for Israel to “ease the life of the Palestinians” but made no mention of Palestinian statehood.

Nevertheless, diplomats and the regional sources said MbS was insisting on some commitments from Israel to show he was not abandoning the Palestinians and that he was seeking to keep the door open to a two-state solution.

Those would include demanding Israel transfer some Israeli-controlled territory in the West Bank to the Palestinian Authority (PA), limit Jewish settlement activity and halt any steps to annex parts of the West Bank. Riyadh has also promised financial aid to the PA, the diplomats and sources said.

Palestinian President Mahmoud Abbas has said any bargain must recognise the Palestinian right to a state within the 1967 borders, including East Jerusalem, and must stop Israeli settlement building. However, all the sources said a Saudi-Israeli deal was unlikely to address those flashpoint issues.

Netanyahu has said Palestinians should not have a veto over any peacemaking deal.

Yet, even if the US, Israel and Saudi Arabia agree, winning support from lawmakers in the US Congress remains a challenge.

Republicans and those in Biden’s Democratic Party have previously denounced Riyadh for its military intervention in Yemen, its moves to prop up oil prices and its role in the 2018 killing of Saudi journalist Jamal Khashoggi, who worked for the Washington Post. MbS denied ordering the killing.

“What’s important for Saudi Arabia is for Biden to have the pact approved by Congress,” the first regional source said, pointing to concessions Riyadh was making to secure a deal.

For Biden, a deal that builds a US-Israeli-Saudi axis could put a brake on China’s diplomatic inroads after Beijing brokered a rapprochement between Saudi Arabia and Iran, which Washington accuses of seeking nuclear arms. Tehran denies this.

“There was a sense that the US has abandoned the region,” said one diplomat. “By courting China, the Saudis wanted to create some anxiety that will make the US re-engage. It has worked.”

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Taliban plans to expand US mass surveillance plan, met with China’s Huawei

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Taliban are creating a large-scale camera surveillance network for Afghan cities that could involve repurposing a plan crafted by the Americans before their 2021 pullout, an interior ministry spokesman told Reuters, as authorities seek to supplement thousands of cameras already across the capital, Kabul.

The Taliban administration — which has publicly said it is focused on restoring security and clamping down on Islamic State, which has claimed many major attacks in Afghan cities — has also consulted with Chinese telecoms equipment maker Huawei about potential cooperation, the spokesman said.

Preventing attacks by international militant groups – including prominent organisations such as Islamic State – is at the heart of the interaction between the Taliban and many foreign nations, including the US and China, according to readouts from those meetings. But some analysts question the cash-strapped regime’s ability to fund the program, and rights groups have expressed concern that any resources will be used to crackdown on protesters.

Details of how the Taliban intend to expand and manage mass surveillance, including obtaining the US plan, have not been previously reported.

The mass camera rollout, which will involve a focus on “important points” in Kabul and elsewhere, is part of a new security strategy that will take four years to be fully implemented, Ministry of Interior spokesman Abdul Mateen Qani told Reuters.

“At the present we are working on a Kabul security map, which is (being completed) by security experts and (is taking) lots of time,” he said. “We already have two maps, one which was made by USA for the previous government and second by Turkey.”

He did not detail when the Turkish plan was made.

A US State Department spokesperson said Washington was not “partnering” with the Taliban and has “made clear to the Taliban that it is their responsibility to ensure that they give no safe haven to terrorists.”

A Turkish government spokesperson didn’t return a request for comment.

Qani said the Taliban had a “simple chat” about the potential network with Huawei in August, but no contracts or firm plans had been reached.

Bloomberg News reported in August that Huawei had reached “verbal agreement” with the Taliban about a contract to install a surveillance system, citing a person familiar with the discussions.

Huawei told Reuters in September that “no plan was discussed” during the meeting.

A Chinese Foreign Ministry spokeswoman said she was not aware of specific discussions but added: “China has always supported the peace and reconstruction process in Afghanistan and supported Chinese enterprises to carry out relevant practical cooperation.”

Electricity cuts, Rights concerns

There are over 62,000 cameras in Kabul and other cities that are monitored from a central control room, according to the Taliban. The last major update to Kabul’s camera system occurred in 2008, according to the former government, which relied heavily on Western-led international forces for security.

When NATO-led international forces were gradually withdrawing in January 2021, then-vice president Amrullah Saleh said his government would roll out a huge upgrade of Kabul’s camera surveillance system. He told reporters the $100 million plan was backed by the NATO coalition.

“The arrangement we had planned in early 2021 was different,” Saleh told Reuters in September, adding that the “infrastructure” for the 2021 plan had been destroyed.

It was not clear if the plan Saleh referenced was similar to the ones that the Taliban say they have obtained, nor if the administration would modify them.

Jonathan Schroden, an expert on Afghanistan with the Center for Naval Analyses, said a surveillance system would be “useful for the Taliban as it seeks to prevent groups like the Islamic State … from attacking Taliban members or government positions in Kabul.”

The Taliban already closely monitor urban centres with security force vehicles and regular checkpoints.

Rights advocates and opponents of the regime are concerned enhanced surveillance might target civil society members and protesters.

Though the Taliban rarely confirm arrests, the Committee to Protect Journalists says at least 64 journalists have been detained since the takeover. Protests against restrictions on women in Kabul have been broken up forcefully by security forces, according to protesters, videos and Reuters witnesses.

Implementing a mass surveillance system “under the guise of ‘national security’ sets a template for the Taliban to continue its draconian policies that violate fundamental rights,” said Matt Mahmoudi from Amnesty International.

The Taliban strongly denies that an upgraded surveillance system would breach the rights of Afghans. Qani said the system was comparable with what other major cities utilize and that it would be operated in line with Islamic Sharia law, which prevents recording in private spaces.

The plan faces practical challenges, security analysts say.

Intermittent daily power cuts in Afghanistan mean cameras connected to the central grid are unlikely to provide consistent feeds. Only 40 percent of Afghans have access to electricity, according to the state-owned power provider.

The Taliban also have to find funding after a massive economic contraction and the withdrawal of much aid following their takeover.

The administration said in 2022 that it has an annual budget of over $2 billion, of which defence spending is the largest component, according to the Taliban army chief.

Militancy Risks

The discussion with Huawei occurred several months after China met with Pakistan and the Taliban’s acting foreign minister, after which the parties stressed cooperation on counter-terrorism. Tackling militancy is also a key aspect of the 2020 troop-withdrawal deal the United States struck with the Taliban.

China has publicly declared its concern over the East Turkestan Islamic Movement (ETIM), an armed separatist organisation in its western Xinjiang region. Security officials and UN reports say ETIM likely has a small number of fighters in Afghanistan. ETIM couldn’t be reached for comment.

The Islamic State has also threatened foreigners in Afghanistan. Its fighters attacked a hotel popular with Chinese businesspeople last year, which left several Chinese citizens wounded. A Russian diplomat was also killed in one of its attacks.

The Taliban denies that militancy threatens their rule and say Afghan soil will not be used to launch attacks elsewhere. They have publicly announced raids on Islamic State cells in Kabul.

“Since early 2023, Taliban raids in Afghanistan have removed at least eight key (Islamic State in Afghanistan) leaders, some responsible for external plotting,” said US Special Representative for Afghanistan Thomas West at a Sept. 12 public seminar.

A July UN monitoring report said there were up to 6,000 Islamic State fighters and their family members in Afghanistan. Analysts say urban surveillance will not fully address their presence.

The Afghan “home base” locations of Islamic State fighters are in the eastern mountainous areas, said Schroden. “So while cameras in the cities may help prevent attacks … they’re unlikely to contribute much to their ultimate defeat.”

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US in talks with Vietnam for largest arms deal between former enemies that could vex China

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Biden administration is in talks with Vietnam over an agreement for the largest arms transfer in history between the ex-Cold War adversaries, according to two people familiar with a deal that could irk China and sideline Russia.

A package, which could come together within the next year, could consummate the newly upgraded partnership between Washington and Hanoi with the sale of a fleet of American F-16 fighter jets as the Southeast Asian nation faces tensions with Beijing in the disputed South China Sea, one of the people said.

The deal is still in its early stages, with exact terms yet to be worked out, and may not come together. But it was a key topic of Vietnamese-US official talks in Hanoi, New York and Washington over the past month.

Washington is considering structuring special financing terms for the pricey equipment that could help cash-strapped Hanoi steer away from its traditional reliance on lower-cost, Russian-made arms, according to the other source, who declined to be named.

Spokespersons for the White House and Vietnamese foreign ministry did not respond to requests for comment.

“We have a very productive and promising security relationship with the Vietnamese and we do see interesting movement from them in some US systems, in particular anything that can help them better monitor their maritime domain, perhaps transport aircraft and some other platforms,” said a US official.

“Part of what we’re working on internally as the US government is being creative about how we could try to provide better financing options to Vietnam to get them things that might be really useful to them.”

A major US-Vietnam arms deal could aggravate China, Vietnam’s larger neighbor, which is wary of Western efforts to box in Beijing. A long-simmering territorial dispute between Vietnam and China is heating up in the South China Sea and explains why Vietnam is looking to build up maritime defenses.

“They are developing asymmetric defensive capabilities, but (want) to do so without triggering a response from China,” said Jeffrey Ordaniel, associate professor of international security studies at Tokyo International University and director for maritime security at Pacific Forum International, a think tank. “It is a delicate balancing act.”

Ordaniel said Washington should shift funds set aside for financing militaries in the Middle East to the Indo-Pacific region “so partners like Vietnam, the Philippines and Taiwan can afford the weapons they need to resist Beijing.”

The Biden administration has said it is trying to balance geopolitical competition with China, including in the Pacific, and responsibly managing the two superpowers’ relationship.

Earlier this month, Vietnam upgraded Washington to Hanoi’s highest diplomatic status, alongside China and Russia, when US President Joe Biden visited the country.

The diplomatic turnaround marks a sharp pivot nearly a half-century after the end of the Vietnam War.

Since an arms embargo was lifted in 2016, US defense exports to Vietnam have been limited to coast guard ships and trainer aircraft, while Russia has supplied about 80% of the country’s arsenal.

Vietnam spends an estimated $2 billion annually in arms imports, and Washington is optimistic that they can shift a share of that budget over the long term to weapons from the United States or its allies and partners, especially South Korea and India.

The cost of US weaponry is a major obstacle, as is training on the equipment, and is among the reasons the country has taken in less than $400 million of American arms over the past decade.

“Vietnamese officials are well aware that they need to spread the wealth,” the US official said. “We need to lead the charge in helping Vietnam get what it needs.”

Meanwhile, the war in Ukraine has complicated Hanoi’s longstanding relationship with Moscow, making supplies and spare parts for Russian-made arms harder to acquire. Nonetheless, Vietnam is also actively in talks with Moscow over a new arms supply deal that could trigger US sanctions, Reuters has reported.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Iran, US on the brink of prisoner swap deal under Qatar-mediation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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When $6 billion of unfrozen Iranian funds are wired to banks in Qatar as early as next week, it will trigger a carefully choreographed sequence that will see as many as five detained US dual nationals leave Iran and a similar number of Iranian prisoners held in the US fly home, according to eight Iranian and other sources familiar with the negotiations who spoke to Reuters.

As a first step, Iran on Aug 10 released four US citizens from Tehran’s Evin prison into house arrest, where they joined a fifth, who was already under house arrest. Later that day US Secretary of State Antony Blinken called the move the first step of a process that would lead to their return home.

They include businessmen Siamak Namazi, 51, and Emad Sharqi, 59, as well as environmentalist Morad Tahbaz, 67, who also holds British nationality, the US administration has said. The Tahbaz and Shargi families did not respond to requests for comment. A lawyer for the Namazi family declined to comment.

The identities of the fourth and fifth Americans, one of whom according to two sources is a woman, have not been disclosed. Reuters couldn’t establish which Iranian prisoners, in turn, would be swapped by the US.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India, US must team up in military, space, says Congressman Thanedar, condemns khalistani activities

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US Congressman Shri Thanedar is among the delegation that has arrived in New Delhi to participate in the 77th Independence Day ceremony tomorrow. Thanedar spoke exclusively in an interview to News18 and said he escorted Prime Minister Narendra Modi to the Joint Session of the US Congress where his speech was “well received”. PM Modi invited Thanedar to the I-Day celebrations, and “this all started with the PM’s visit to the US”.

News18 asked Thanedar about India’s role as a world leader, and he pointed out that the US wants India to look at Russia as an “aggressor” and how it has devastated Ukraine.

Amid the increasing attacks on Indian consulates in the US, UK, Canada and Australia by the Khalistani groups, Thanedar said he condemns such activities. “Any protest needs to be peaceful”, he added.

Edited Interview:

[faq][ques]How does it feel to come back to India on the Independence Day? Are you witnessing any change in the country?[/ques][ans]Huge change. Last 75 years have been amazing. India has advanced so much in technology. Its economy is the fifth largest in the world. India has young people with different cultures. G20 presidency shows the importance of India in the world scene.[/ans][/faq]

[faq][ques]We are speaking at a time when India is preparing for the G20 Summit. Do you see India in a role of a ‘Vishwa Guru’? Can it solve problems such as supply chain and food scarcity?[/ques][ans]It certainly can happen and will happen. It is very important that India rethinks non-aligned policy but the US is the real super power now and Russia is an aggressor. India has to look at what Russia has done in Ukraine. Putin is a dictator. India has to look at China’s military aggression on northern borders of India. US expects India to be able to look at Russia’s aggression and if India can put it all in perspective, it can surely deliver in G20.[/ans][/faq]

[faq][ques]With the increasing threat from China in cyberspace, India has recently banned the import of laptops and tablets and certain types of computers while the US has imposed heavy restrictions in key sectors such as semi-conductor, AI and quantum computing. Do you see both the countries moving on the same page?[/ques][ans]China practices unfair trade with respect to labour and environment, and the US takes it very seriously. In any future trade with China, all countries must take into account that China abides by the international labour, environmental and climate change laws.[/ans][/faq]

[faq][ques]’Free and inclusive’ Indo-Pacific is what both India and US believe in. How do you see India’s role in Indo-Pacific? Can India and US collaborate militarily to stop China’s expansionist policies?[/ques][ans]Absolutely. Many of those issues were addressed when Prime Minister Narendra Modi visited the US. Agreements between two governments on jet engines and drones addressed many of those issues. India and US must have collaboration in military, cyber and space. This does appear to a have lot of bipartisan support when Modi ji addressed the House; look at the standing ovation he received. India and US must have strong long-lasting friendship and relation to bring peace in Indo-Pacific.[/ans][/faq]

[faq][ques]The Indian government is concerned about the violent activities of Khalistani groups in countries such as the US, UK, Canada and Australia. What is your position on the Indian democratic institutions being attacked?[/ques][ans]I have been very open about the attack on the Indian embassy, democratic and religious institutions and putting people’s life in danger. Any kind of protest needs to be peaceful and must not involve violence. This has been our position. We have asked the Biden administration to provide security to the democratic institutions and religious places.[/ans][/faq]

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Fitch downgrades US credit rating to AA+ from AAA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fitch Ratings has downgraded the United States’ long-term foreign currency issuer default rating to AA+ from AAA on Tuesday, citing “expected fiscal deterioration over the next three years,” along with an erosion of governance and a growing general debt burden.

“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” said Fitch.

Fitch had placed the country’s rating on negative watch in May, citing the debt ceiling fight in Washington, which was eventually resolved after weeks of negotiations.

The rating cut echoed a move made by S&P Global Ratings a decade ago. Tax cuts and new spending initiatives coupled with multiple economic shocks have swelled budget deficits, Fitch said, while medium-term challenges related to rising entitlement costs remain largely unaddressed.

Treasury Secretary Janet Yellen quickly responded to the downgrade, calling it “arbitrary” and “outdated.”

“Fitch’s decision does not change what Americans, investors, and people all around the world already know: that Treasury securities remain the world’s preeminent safe and liquid asset, and that the American economy is fundamentally strong,” Yellen said in the statement.

Tuesday’s statement also attributed the downgrade to the country’s rapidly swelling debt burden, which it forecasts to reach 118 percent of gross domestic product by 2025, more than two-and-a-half times higher than the ‘AAA’ median of 39.3 percent. The rating company projects the debt-to-GDP ratio to rise even further in the longer-term, increasing America’s vulnerability to future economic shocks, the report said.

Fitch also highlights the rising government deficit, which it anticipates will rise to 6.3 percent of GDP in 2023, from 3.7 percent in 2022.

“It defies reality to downgrade the United States at a moment when President Biden has delivered the strongest recovery of any major economy in the world,” White House press secretary Karine Jean-Pierre said.

(With Inputs From Agencies.)

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Hyderabad woman student found ‘depressed, starving’ in the US, mother seeks help

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A woman from Telangana who is currently in the USA pursuing MS was found in awful condition. Her mother wrote a letter to External Affairs Minister S Jaishankar seeking his help to bring her back home.

In a letter that was posted on the Twitter page of BRS leader Khaleequr Rahman, the woman said her daughter Syeda Lulu Minhaj Zaidi went to the USA to pursue MS from TRINE University, Detroit in August 2021.

“Since last two months she was not in touch with me and recently through two Hyderabadi youths, we came to know that my daughter is in deep depression and her entire belongings have been stolen due to which she is on the verge of starvation and was spotted on roads of Chicago, USA,” the mother said in her letter.

Rahman in an update on his Twitter page said he was able to get in touch with one Mukarram, who is a social worker in Chicago. He and his family met Zaidi and she is currently undergoing treatment in hospital.

He further said he was informed that she was depressed and in a mentally unstable condition due to the financial situation she got into as she couldn’t get a job in the US.

She needs to get out of the depression in order to travel back to India, Rahman said quoting Mukarram.

The BRS leader said he would request Jaishankar to help Zaidi’s mother travel to the USA.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India, US mutually resolve all six trade disputes at WTO: Official

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India and the US have mutually resolved all six trade disputes pending at the World Trade Organisation (WTO), in line with the commitment made by the two countries during the US visit of Prime Minister Narendra Modi last month, an official said.

The official said that both countries have informed the WTO’s dispute settlement body (DSB) about the resolution of all the pending disputes.

The WTO has already issued a communication with regard to one of the disputes related to the imposition of additional customs duties by India on 28 US products. The official added that the remaining five communications would also be issued by the WTO.

“The United States and India are pleased to notify the DSB (dispute settlement body), in accordance with Article 3.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes, that the parties have reached a mutually agreed solution to the matter raised in this dispute,” according to a communication of the WTO dated July 17.

The two countries have urged the dispute panel that its report should be confined to a brief description of the case and information that a solution has been reached by the two.

The trade dispute which was resolved pertains to a complaint filed by the US in 2019 against India. India had imposed additional customs duties on 28 US products including chickpeas, lentils and apples in retaliation to the US increasing duties on certain steel and aluminium products.

Against this resolution, India would remove additional duties on eight US products, including chickpeas, lentils and apples, which were imposed in 2019 in response to America’s measure to increase tariffs on certain steel and aluminium products, government sources said.

During the recent state visit of Prime Minister Narendra Modi to the US, both countries decided on the termination of six WTO (World Trade Organisation) disputes and the removal of these retaliatory tariffs on certain US products.

In 2018, the US imposed an import duty of 25 per cent on steel products and 10 per cent on certain aluminium products on grounds of national security. In retaliation, India in June 2019 imposed customs duties on 28 American products.

The US is the largest trading partner of India. In 2022-23, the bilateral goods trade increased to $128.8 billion as against $119.5 billion in 2021-22. The six disputes include three initiated by India and as many by the US.

These included a complaint by India against the US with regard to the imposition of countervailing duties on certain hot-rolled carbon steel flat products from India.

On 9 September 2016, India filed a case against the US pertaining to domestic content requirements and subsidies instituted by the governments of the states of Washington, California, Montana, Massachusetts, Connecticut, Michigan, Delaware and Minnesota, in the energy sector.

Another dispute filed by the US against India was related to domestic content requirements under the Jawaharlal Nehru National Solar Mission for solar cells and solar modules. In 2018, the US filed a case against India’s alleged export subsidy measures.

Similarly, on July 3, 2019, the US filed a dispute against New Delhi on the imposition of additional duties with respect to certain products originating in the US.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Former US officials held secret talks with Russia to end Ukraine war

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Former security officials of the United States has been holding secret talks with prominent Russians believed to be close to the Kremlin in a bid to begin potential negotiations to end the war in Ukraine, according to an NBC News report.

The report quoting sources said that a group of former senior US national security officials met Russian Foreign Minister Sergey Lavrov in April in New York.

The agenda of the talks involved critical issues in the war like the fate of Russian-held Ukraine territory and an elusive diplomatic off-ramp that tolerable to both sides.

Richard Haass, a former diplomat and the outgoing president of the Council on Foreign Relations, Europe expert Charles Kupchan and Russia expert Thomas Graham, both former White House and State Department officials who are Council on Foreign Relations fellows, Mary Beth Long, a former U.S. assistant defense secretary with deep experience in NATO issues, were among those who were part of the meeting.

The talks were aimed to keep communication channels open and where possible, have enough elbow room for negotiation, compromise and diplomacy.

The sources quoted in the reports said that Biden administration knew about the discussions but did not order it. The former officials who were involved in the talks later briefed the White House National Security Council.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow