NC Renegades

With the crisis in the financial sector in the US and Europe there have been concerns about the consequences on the IT industry in India. The banking and financial services segment contributes over 30 per cent of the revenue of Indian IT companies. A recent report by Wedbush Securities stressed that deals from the Banking, Financial Services, and Insurance (BFSI) and high-tech sectors might slowdown in light of the crisis.

The Indian IT industry has recorded exceptional growth rate in the past few decades. However, the IT industry’s overarching reliance on Europe and US markets could up end creating disruption (see table).

Firms in the US and Europe are expected to defer their IT spending and also resort to cost-cutting measures. This would have a direct impact on the outsourcing business of Indian IT companies, and the uncertain economic environment could affect the project pipeline as well.

This would also have an impact on the recruitment in Indian IT firms at least in the shorter term.

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I am not sorry to say that I do not care if India loses jobs in its IT sector. I am sure that everyone has experienced speaking on the phone for technical support to someone in India. I personally believe it is a culture thing: Indians are not taught critical thinking skills in their culture. I have personally seen this in college and in the engineering field. Give them a script and they can follow it. Go off script and they are lost.

But that is not why I do not care: we should be training our children in IT, engineering and science degrees. We should not be shipping these jobs overseas so that corporate America can save some money. Maybe if our children would go to college to get valid degrees that will build a better America, we would not be in this position.

David DeGerolamo

Front Matter

Welcome to the latest issue of the Civil War II Weather Report. These posts are different than the other posts at Wilder Wealthy and Wise and consist of smaller segments covering multiple topics around the single focus of Civil War 2.0, on the first or second Monday of every month. I’ve created a page (LINK) for links to all of the past issues. Also, subscribe because you’ll join nearly 770 other people and get every single Wilder post delivered to your inbox, M-W-F at 7:30AM Eastern, free of charge.

The Spark

In research of Civil War over time, it appears that the conditions exist that start Civil Wars for some time before they turn into outright Civil War. Often, one group finally comes to the conclusion that they are out of power, will never be in power again, and are being treated unfairly, that feeling builds up. It’s waiting for a moment, a spark, that allows the emotional feeling to turn into action.

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h/t WRSA

It may not be the off the charts gold buying observed in the second half of 2022, but central bank Central bank gold buying made a blistering start to 2023 when according to the latest report from the World Gold Council, demand for the hard currency by the world’s money-printing authorities reached 228 tonnes in Q1, a 176% increase compared to the 82.7 tonnes one year ago. While lower than the figures seen in the previous two quarters this was nonetheless the strongest first quarter on record. According to the WGC, “this is all the more impressive considering it follows the record-breaking pace of demand last year.”

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Gold is currently up $11 an ounce this morning. This is unusual for a Monday morning where the price of gold is normally suppressed by the powers that be. Or I could say that people have retained their wealth if they placed their money in gold instead of depreciated fiat currencies.

David DeGerolamo

Russia’s Wagner group signals it will stay in Bakhmut after threat to quit

The head of Russia’s Wagner group appears to have ditched plans to withdraw his forces from Bakhmut, in eastern Ukraine, after receiving promises overnight that they would get all the arms needed to capture the devastated city.

Yevgeny Prigozhin announced on Friday that his fighters, who have spearheaded the months-long assault on Bakhmut, would pull out because he said his men had been starved of ammunition and taken “useless and unjustified” losses as a result.

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If you have built a business from scratch like I did, you too would be more than a little perturbed by the former (and current backdoor) Communist in Chief. I wonder how Obama would classify the transference of California’s unemployment debt to businesses. I am joking: the powers that be want this country destroyed at every level: business, military, education, religious and people’s property.

David DeGerolamo

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California Defaults On $18.6 Billion In Debt, Saddling Employers With The Expense

California’s recent decision not to pay back some $20 billion borrowed from the federal government to cover unemployment benefits during the pandemic will fall on the shoulders of employers, according to experts.

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More American banks were teetering on the brink of collapse this weekend as a leading US think-tank raised fears over the financial strength of almost 200 lenders.

The Bank of England, meanwhile, is preparing to lift the cost of borrowing for the 12th time in a row as it tries to tame double-digit inflation. This follows further rate increases in the US and Europe.

Experts at the Hoover Institution think-tank say the global surge in interest rates has caught banks on the hop and left many of them nursing huge losses on some of their investments.

Officials are also concerned about the speed of recent bank runs, fuelled by social media. Three of the four biggest bank failures in US history have occurred in the last two months.

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Hoover’s analysis found that if half of uninsured savers withdrew their cash, then 186 US banks with total assets of £240billion would be at ‘potential risk of impairment’. That means the banks in question would technically be in breach of regulators’ rules on capital.

If they became insolvent, the US government would have to guarantee savers’ money – leaving taxpayers on the hook – or find buyers for failed banks, as has happened recently.

‘There are several potentially insolvent banks lurking in the system,’ warned Amit Seru, finance professor at Stanford University and one of the Hoover report’s authors.

While most of the bank runs have been in the US, there are fears that panic could spread.

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