America Gets Trumpified!

The dice rolled has casted the polls and U.S has elected its 45^th President, Republican Donald Trump. He will be heading the state from 20^th January, 2017 after taking the Oath of Office and will be the commander-in-chief of the largest army on the planet. The news has come as a shock just like the Brexit.

The 19^th month old battle has come to an end and Donald Trump tastes the win, with a whopping 5,70,93,682 votes. On the other hand, Democrat Hilary Clinton could earn 5,60,88,589 hearts. Gary Johnson of Libertarian Party and Jill Stein of Green Party were able to bag 3% and 1% votes respectively. Republicans won the US Senate with a majority of 51 and the US House with a win of 235. The republicans were successful in gaining the support of the key swing states of Florida, Ohio, North Carolina and Pennsylvania. Hence, the dream of being the first-ever female president of the US died as Clinton concedes while Trump arrives to his victory party at Hilton Midtown.

Democrat supporters, especially Muslim-Americans are terrified by the win. They took to Twitter to express their dismay over the win of Donald Trump, who has repetitively said he would ban Muslims from the U.S. if elected the president. Mexico Central Bankers are heading for an emergency press conference and peso has hit the lowest.

After shattering the predictions of pollsters and financial markets, the win has left everyone in doubt of what comes next since Americans have elected a real-estate developer and a reality TV star as the US president who paved his path into US politics by questioning the 44^th president’s birthplace.

Nevertheless, Trump’s win can be owed to the performance of the Republicans and that was known by the strength of the ballots.

There has been a mix of reactions from the Americans but mostly disappointed, though the credits to them for his win.  Markets too, show disappointment facing downfalls.

Bloomberg tweeted “Europe’s shares fell by most since aftermath of Brexit vote following Trump’s win”. Japan’s Nikkei has closed down 5.3% as a wave of selling hit the Asian Stock while shares in Australia finished down to 1.92%. Meanwhile, India’s stock opened with shares down 3.7% at 4 a.m. The impact of this win could be huge than that of Brexit and it is being said, worst is yet to come. Indian PM congratulated Donald Trump, and expressed the intent of better ties between the two nations.

Yet, amid slew of controversies, Republican Donald trump has bagged the win and the world waits for the start of the work of the “great unknown”.

 -Manisha Singh
(Department of Finance Management)

 

The Big Ban

On 26th May 2014, Mr. Narendra Modi took oath as the prime minister of India and promised public to take serious action against the black money problem and to curb corruption issue, Indian economy has been facing since many years. After returning the favor to Pakistan through surgical strike, now the Prime Minister performs another surgical strike on the people who hold black money and the people who circulated fake currency in the Indian Economy. 

From 9th November 2016 the Indian government has decided to abolish usage of ₹500 and ₹1000 currency notes. This has a mixed reaction amongst the public of the country many are supporting it and many are confused on how drastic the move has come. There are some serious questions to be answered like, does the plan of government once all the currency notes have been withdrawn such as when will the new currency notes be arriving at the market so that there's no shortage of currency notes in the market, What are the reasons behind such a drastic move?

One advantage of this decision is, it will help the government to fight black money, corruption, terrorism and counterfeit currency with one single decision.

The RBI is unearthing the black money by denying legal tender status. Now if somebody has cash in hand that has not yet been disclosed will face serious issues as the currency notes have no value in the money market. This will also help in digging out the black money from the Indian economy. Another aspect can be considered is the fake currency presence in the Indian economy. Due to this move all the fake currencies would be detected and removed from the Indian economy.

With new limit on ATM withdrawal being restricted to ₹2000/- per day, withdrawal from the bank accounts limited to ₹10000 a day and ₹20000 a week. It will drive the card payments across the country, in simpler words card transaction will slowly replace cash transactions and daily activities that will help and highlighting every transaction and individual makes and will lessen the scope of hiding money.

Looking into the economic aspects of this decision, its implementation would lead in reduction of black money in the Indian economy which would in turn result in lowering the price of various goods and services ultimately. Such decision is good for the financial health of an economy as they will be part of white money and more of taxes that would be collected so more of revenue for the government to operate and this would in turn provide more money for government to invest in various sectors that would increase the size of economy by providing jobs, investing in technology, defense and various other sectors. Increase in the purchasing power amongst the people will level up the standard of living.

-Vaibhav Singh Rathore
(Department of Finance Management)