Surprising turn of events 🔄🤔

June 1, 2023 [image] [image] Welcome to the Weekly Rundown. In a surprising turn of events, President Joe Biden and House Speaker Kevin McCarthy have reached a deal to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025, aiming to avoid a financial crisis. The agreement includes caps on non-defense discretionary spending, cuts in non-defense sectors (excluding veterans' healthcare), and special funding for the IRS to enforce tax codes. It also opens the door for unallocated relief funds linked to the ongoing Covid-19 pandemic. The West Coast Banking Turmoil of 2023: Unraveling the Perfect Storm [image]( The West Coast is at the epicenter of the banking turmoil in 2023, with [three out of four collapsed banks located in California](. Factors like exposure to Silicon Valley, [unrealized asset losses, and uninsured depositors contribute to the chaos](. Fear and panic spread, amplifying the crisis. Banks in Silicon Valley faced massive deposit outflows, while the East Coast experienced different weaknesses in the 2008 crisis. Smaller lenders nationwide remain vulnerable to similar stress. Affected banks strive to restore investor confidence by emphasizing strong fundamentals and diversified deposit bases. [image] Biden Strikes Debt Ceiling Deal with Republicans to Avert Default [image]( In a remarkable turn of events, US President Joe Biden and Republican House Speaker Kevin McCarthy have reached [an agreement to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025](. This deal, now ready for [congressional voting](=), comes after Treasury Secretary Janet Yellen warned of an impending government default if the ceiling wasn't raised by June 5. While acknowledging that compromises were made, Biden emphasized that the agreement prevents a crisis and urged both chambers to pass it. The bipartisan deal sets discretionary spending caps for non-defense items, slashes spending on non-defense sectors (except for military veterans' healthcare), and includes special funding for the Internal Revenue Service (IRS) to enforce tax codes for affluent citizens, generating additional revenue over the next decade. [image] Sam Altman: Charming US Lawmakers, Struggling with EU's Regulation [image]( Sam Altman, CEO of OpenAI, captivated US lawmakers with his call for AI regulation, emphasizing the need to mitigate risks. However, Altman's charm offensive didn't yield the same results in [Europe](. He criticized the proposed AI Act by the European Union, claiming it would lead to [over-regulation](. Tensions arose as Altman's remarks were seen as attempts to blackmail European lawmakers. In contrast, Google CEO Sundar Pichai pursued a different approach, proposing a voluntary AI Pact to bridge the gap until the EU's law is implemented. While technology companies advocate for regulation, it's clear they desire to shape regulations in their favor. [image] Retired Americans Struggle: The Unexpected Reality [image]() Retirement plans are taking an unexpected turn as more [seasoned workers choose to stay in the workforce due to financial constraints](. According to a study by Korn Ferry, the number of Fidelity clients who can cover all their retirement expenses dropped from [83% to 78%]( in just one year. This trend is supported by Paychex, which found that about 17% of current retirees are considering returning to work, with over half of them citing financial need as the reason. The increasing number of older workers staying on the job is causing concern among corporate planners, who had anticipated their departure would create opportunities for younger employees. While this shift presents challenges for corporations, it also raises issues of [age discrimination]( and highlights the need for alternative retirement options such as buy-outs or retirement-track positions. [image] Wealthy Tax-Saving Tactics: Unveiling the Strategies [image]( Wealthiest Americans employ various [legal techniques to minimize their tax obligations](. These methods include utilizing trusts to donate homes and country houses, establishing generation-skipping trusts to pass wealth to future generations, leveraging charitable remainder trusts for philanthropic deductions and guaranteed income, taking loans to pay estate taxes, [buying offshore life insurance policies]( to avoid estate tax, and transferring depressed assets during market slumps through grantor-retained annuity trusts. These strategies, though complex and sometimes subject to scrutiny, allow the wealthy to significantly reduce their tax liabilities. [image] The Power of Living Debt-Free: Changing Your Mindset [image](=) Living a [debt-free life]( is a goal that can significantly impact your mindset and financial well-being. Despite the prevalence of debt in American society, many individuals are actively working towards becoming debt-free and experiencing a paradigm shift in their approach to personal finance. Being free from debt offers a sense of [peace, freedom, and control over your financial decisions](. It allows you to allocate your money according to your priorities and seize opportunities. While the journey to debt freedom may not be easy, it can bring euphoria and a fresh perspective on debt and money. [image] Erdogan's Third Decade: Triumph in Turkish Election Extends Rule [image](=) Recep Tayyip Erdogan has secured [victory in Turkey's presidential election](=), extending his rule into a third decade. Preliminary results show Erdogan winning with 52.14% of the votes, while his main challenger, Kemal Kilicdaroglu, received 47.86%. Erdogan called for unity and emphasized the importance of national goals and dreams. He pledged to focus on [fighting inflation](=) and addressing the aftermath of a devastating earthquake. The election outcome highlights the deeply divided nature of Turkish society, with both camps having different visions for the country's future. Foreign leaders, including Russia's President Putin and US President Biden, congratulated Erdogan on his win. [image] Airbnb CEO's Advice: Love Your 100 Fans, Forget the Rest [image]( Airbnb CEO Brian Chesky attributes the success of his company to a counterintuitive piece of advice he received from investor Paul Graham: ["Focus on 100 people that love you, rather than getting a million people to kind of like you."](=) Chesky explains that by catering to a small audience of deeply satisfied customers, Airbnb was able to stand out from competitors and create a unique guest experience. This approach, although contrary to conventional wisdom, became the company's marketing strategy, leading to significant growth through word-of-mouth. [image] Residency in Singapore: Entrepreneur's Employment Pass Route [image](=) Singapore offers a straightforward route to residency for entrepreneurs through the [Singaporean Employment Pass (EP) Visa](=). By registering a company in Singapore and employing themselves, entrepreneurs can apply for an EP, granting them a two-year residence permit. The recent introduction of the Complementary Assessment (Compass) Framework, a points-based system, further refines the EP qualification criteria. Entrepreneurs can easily meet the criteria through factors such as [high salaries, academic qualifications, diversity hiring, and local employment](=). [image] Ireland's Tax Windfall: A Move to Create a Sovereign Wealth Fund [image](=) Ireland is considering the creation of a [sovereign wealth fund]() to manage its soaring corporate tax receipts and secure its public finances for the future. Finance Minister Michael McGrath is submitting a paper to the Irish Parliament exploring the benefits of establishing a "longer-term public savings vehicle" to channel windfall receipts. The proposed fund could be used to [pay down debt, fund pensions, and support healthcare spending](). Ireland's corporate tax receipts have surged in recent years, driven by tech giants and multinational companies attracted by the country's low corporate tax rate. However, the establishment of a sovereign wealth fund raises concerns about the management and size of contributions relative to unpredictable tax receipts. [image] = Feel free to check out our [SERVICES](=) [ARTICLES](=) [PODCAST]() [Update Email Preferences]( | [Unsubscribe]( Nomad Capitalist LLC Kidnah, Block A Plot 4 Fujairah, Al Fujayrah United Arab Emirates (the) +1 (979) 966-6623