Financial Basic – Amiya Sahu http://amiyasahu.com/ Thu, 23 Jun 2022 17:51:45 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://amiyasahu.com/wp-content/uploads/2021/06/icon-150x150.png Financial Basic – Amiya Sahu http://amiyasahu.com/ 32 32 Highlighting our efforts to avert humanitarian catastrophe and economic collapse in Afghanistan https://amiyasahu.com/highlighting-our-efforts-to-avert-humanitarian-catastrophe-and-economic-collapse-in-afghanistan/ Thu, 23 Jun 2022 17:19:48 +0000 https://amiyasahu.com/highlighting-our-efforts-to-avert-humanitarian-catastrophe-and-economic-collapse-in-afghanistan/ Thank you, President. Let me first join my colleagues in conveying our heartfelt condolences to the people of Afghanistan for the suffering caused by the devastating earthquake. As my ministers have said, the UK stands ready to support them at this difficult time. The UK is one of the biggest donors of humanitarian aid to […]]]>

Thank you, President.

Let me first join my colleagues in conveying our heartfelt condolences to the people of Afghanistan for the suffering caused by the devastating earthquake. As my ministers have said, the UK stands ready to support them at this difficult time. The UK is one of the biggest donors of humanitarian aid to Afghanistan, and we are already working with teams on the ground, including the UN, NGOs and the Red Cross to provide aid. help those who need it most.

Allow me also to thank DSRSG Alakbarov and USG Griffiths for their briefings – and in particular our civil society informants, whose testimonies are powerful and moving.

The humanitarian and economic situation in Afghanistan remains critical. More than 24 million Afghans are in need of humanitarian assistance and nearly 20 million face acute food insecurity. Urgent action is needed to avert humanitarian catastrophe and economic collapse.

Strong UN leadership remains crucial to coordinate support from the international community and negotiate effectively with the Taliban to ensure principled humanitarian access across the country.

The UK remains committed to the Afghan people. Our Minister of Foreign Affairs co-hosted the United Nations conference for humanitarian donors on March 31, raising $2.4 billion. We committed $380 million nationwide in assistance this fiscal year to meet basic humanitarian and human needs.

We strongly support the 1988 sanctions regime as an essential tool for promoting peace, stability and security in Afghanistan. The humanitarian exception ensures that the regime poses no obstacles to the provision of humanitarian assistance and other activities that meet basic human needs.

President,

economic stability and the provision of basic services are essential to ending the cycle of humanitarian need and suffering. We support the leadership of the United Nations in this regard and stress the need for the Taliban to honor their commitments to the Afghan people and the international community.

As Ms Hakim and Ms Royan have told us today, women and girls in Afghanistan face unacceptable restrictions on their freedom of movement and dress, as well as on access to education, jobs and services. Educated women and girls able to participate fully in society will contribute to economic development, peace and security.

The UK is deeply concerned about the serious allegations of extrajudicial killings, detentions and disappearances of Afghans, including civil society activists, former members of the security forces and government officials.

Reports of terrorist attacks have also increased. Terrorist and narcotic threats from Afghanistan represent a risk, not only for the country, but also for regional security.

Mr. President, the role of the United Nations remains more important than ever. We pay tribute to the work of Deborah Lyons and look forward to working with the new management team.

The international community must continue to speak with one voice to pressure the Taliban to meet their commitments and advance shared human rights, humanitarian access, counter-terrorism and governance goals. more inclusive.

I thank you.

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The self-selling private equity bandwagon is a wild ride https://amiyasahu.com/the-self-selling-private-equity-bandwagon-is-a-wild-ride/ Wed, 22 Jun 2022 04:00:05 +0000 https://amiyasahu.com/the-self-selling-private-equity-bandwagon-is-a-wild-ride/ Once upon a time, in private equity jargon, a “secondary” meant that one master of the universe sold to another. Now, he could easily refer to a buyout fund that would flog itself with assets. In the twilight years of the pre-crisis credit boom, the growth of secondary buyouts raised concerns about shrinking investment opportunities, […]]]>

Once upon a time, in private equity jargon, a “secondary” meant that one master of the universe sold to another. Now, he could easily refer to a buyout fund that would flog itself with assets.

In the twilight years of the pre-crisis credit boom, the growth of secondary buyouts raised concerns about shrinking investment opportunities, struggling yields and valuations detached from public market restrictions.

As another cycle falters – a cycle where ultra-low interest rates have facilitated debt-fueled transactions and sucked money into ever larger funds – the emergence of so-called secondaries led by GPs where a group is effectively selling itself raises similar questions. It presents itself as a win-win for private equity firms, known as general partners, and their investors. This will not be the case.

This debate, generally, is muddled by a variety of terms that are used to refer to different transaction structures. But the general idea is that the transfer of assets, alone or in portfolio, from one fund to another within the same group is just one more tool in the toolbox, alongside the sale to a strategic buyer, another takeover company or the continuation of a listing.

Investors in the original fund, known as limited partners, have the option to cash out or invest in the new fund. Third-party money, sometimes from investors such as sovereign wealth funds or other private equity groups, but often from the “secondary” market where LP holdings may be traded, is brought in to fill the void (and to fix a price).

The theory is that investors get more flexibility. The funds capture the rest of the upside in what are usually presented as price assets, rather than handing it over to someone else.

To begin with, it is a bit rich for the sector to promote the “optionality” that this gives to its customers. Buyout funds have always been wary of investors selling stakes in the secondary market, which they have now co-opted for their own purposes. While self-selling transactions have increased, these GP-led transactions now account for more than half of the market, according to Jefferies.

Investors, meanwhile, have subscribed to a find, fix, and flog model that transforms assets over the life of a 10-year fund. Certainly, some single-asset trades may involve gems worth treasuring. But at their core, these agreements reflect that something has gone wrong or, at the very least, hasn’t been delivered within the time promised.

There will be more. Market convulsions make attractive exits harder to find. These deals, according to industry figures, are best used when there is another stage in the growth plan, or a need for fresh funds, to get the most out of a good asset. In reality, some concede, the quality of assets and the rigor of transaction governance vary widely.

The price is the obvious problem. Concerns over the comfortable juice of private valuations have led Amundi’s chief investment officer to comment that parts of the industry look like a pyramid scheme. But initial investors could also lose when an asset is transferred at less than its full market value.

The US regulator’s proposal to require an independent fairness opinion is inadequate. But his consultation has pierced the industry’s omertà, exposing the divisions. The industry lobby group in its response lamented “heavy demands” reducing yields. The body representing investors said “the most significant change in market practice would be to resolve conflicts of interest. . . more generally.”

One of the problems is the asymmetry of information and experience: sophisticated private equity groups can ask a few investment offices, unaccustomed to this type of transactions, to make unreasonably quick decisions on the limited information base.

Another is the redistricting of terms. Logically, this should benefit existing investors. Instead, it may introduce a “super-carry” or other changes to benefit the buyout fund. These are tailor-made and negotiated offers. But terms are often offered by new investors who want to participate: as more money has raced after deals, “GPs have taken advantage of what has been a very competitive market,” says one adviser.

The time horizons of private equity were already stretched to the limits of the 10-year fund, a vehicle designed for recycling capital and extracting profits. The explosion of self-selling deals should mean pressure to diversify investment structures to better meet what is currently on offer. Meanwhile, others should consider what another lever to keep assets in private hands longer could mean for public markets and those like pension funds that still primarily invest in them. This self-selling innovation raises questions for everyone.

helen.thomas@ft.com
Twitter: @helentbiz

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Are the days of UK property booms and busts over? https://amiyasahu.com/are-the-days-of-uk-property-booms-and-busts-over/ Mon, 20 Jun 2022 12:56:31 +0000 https://amiyasahu.com/are-the-days-of-uk-property-booms-and-busts-over/ Placeholder while loading article actions Has the UK property market outrun the boom and bust cycles? Property prices in London soared in the aftermath of the financial crisis, but have since largely stabilized. Now property across the UK is facing headwinds and red flags are popping up. Interest rates are rising and economists expect further […]]]>
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Has the UK property market outrun the boom and bust cycles? Property prices in London soared in the aftermath of the financial crisis, but have since largely stabilized. Now property across the UK is facing headwinds and red flags are popping up.

Interest rates are rising and economists expect further increases. Buyer inquiries fell in May after increasing for eight consecutive months, according to the latest survey from the Royal Institution of Chartered Surveyors. An index of homebuilder stocks has fallen by more than a third since April 2021, although house prices in London and the UK have hit record highs this year.

The current cycle began after the financial crisis, during which UK property prices fell by almost 20%. It was a bust with a small “b” compared to the United States and Ireland. After the UK’s 1990s downturn, the ratio of house prices to average worker earnings bottomed out around three times, according to the Nationwide Building Society. In 2009, this measure hit a low of six for London and five for the UK: property never reached bargain levels when measured against wages.

The London bubble quickly reinflated. As is well known, the weakness of the pound sterling has made the best areas of the capital cheap for international buyers, stimulating activity in other areas. The financial sector – and bankers’ compensation, now in the form of higher fixed salaries – staged a surprise recovery.

A reduction in the UK base rate to 0.5% meant that borrowing costs were very low when the mortgage market reopened. Those who could raise the deposits required for a home loan could benefit from advantageous conditions. This played in London and the South East.

The Eurozone crisis has seen London attract more foreign money as a safe haven. In 2013 came taxpayer-funded programs to support homebuyers; property price-to-income ratios in the capital exceeded their pre-crisis peak in the same year. Competition among lenders saw fixed two-year mortgage rates halve between mid-2012 and mid-2015, fueling the recovery.

But the London scum prompted countermeasures that kept house price growth in check by limiting the use of leverage. So far they have prevented a boom or bust. The government has imposed higher taxes on purchases of high-value properties and second homes. The Bank of England set limits on what banks could lend as a multiple of borrowers’ income and asked them to test how buyers would react if rates rose.

The bottom line: Overall, London has traded slowly since 2016. Its house prices relative to average incomes have nonetheless remained above a dizzying 10 times, meaning buying with mortgages requires deposits important. This has forced many buyers to look further. Covid has amplified the appeal of the outback as city dwellers seek space and retirees reconsider their needs. London has rallied lately, although Brexit uncertainty appears to continue to dampen interest from international buyers, even amid sterling weakness.

The growth of the much cheaper rest of the UK market has accelerated during the pandemic. It might be an overstatement to call this a full-fledged boom. Prices to earnings are just above the pre-crisis peak, but mortgage rates remain lower. Mortgage payments for first-time buyers are 31% of take-home pay for the UK as a whole, down from 46% before the 2007 crash, according to Nationwide (in London they’re at 51%, down from 62% pre-crisis.)

As the economic environment evolves, the market faces both tighter borrowing conditions and inflation that reduces income available to service mortgages. Most UK mortgages are at fixed rates and are not immediately likely to increase the BOE base rate. In the years to come, these agreements will expire in a more difficult climate.

Post-crisis financial regulation is therefore put to the test. Before long, we will find out if the measures taken to cool the market in the middle of the last decade are succeeding in preventing borrowers from taking out loans they cannot afford at higher rates.

Based on a model of average household incomes and mortgage rates, UK house prices do not appear to be overvalued to the extent that they were before the financial crisis or recession of the 1990s, although mortgage rates above 4% could lead to flat or slightly lower prices, says Richard Donnell, executive director of the establishment’s Zoopla website. An era of weaker earnings is ahead, with nominal house prices following earnings growth, he believes.

The relative cheapness of UK regions – and the government’s commitment to boosting them – suggests that the UK market as a whole could hold up even better than the capital. In addition, volatility in global equity indices has dampened investment banking activity, which will hit London’s financial sector this year.

Regardless of the capital’s relative performance to the county, a period of pedestrian growth or mild declines would be a success in fiscal policy. Housing is infrastructure and should operate as such rather than jumping into double digit percentages. After all, a Brit’s home is their castle, not a hedge fund.

More from Bloomberg Opinion:

• UK cost of living crisis petrifies tenants: Marcus Ashworth

• Boris Johnson’s housing headaches not over: Therese Raphael

• Cooling housing market will lead to more dysfunctions: Conor Sen

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Chris Hughes is a Bloomberg Opinion columnist covering the deals. Previously, he worked for Reuters Breakingviews, the Financial Times and the Independent newspaper.

More stories like this are available at bloomberg.com/opinion

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ECB won’t solve serious debt problems: Rehn https://amiyasahu.com/ecb-wont-solve-serious-debt-problems-rehn/ Sat, 18 Jun 2022 20:50:00 +0000 https://amiyasahu.com/ecb-wont-solve-serious-debt-problems-rehn/ FRANKFURT, June 18 (Reuters) – The European Central Bank is expected to limit rising borrowing costs for the euro zone’s most indebted members, but will not solve their debt problems or let fiscal concerns dictate monetary policy , ECB policy chief Olli Rehn said on Saturday. At an emergency meeting this week, the ECB decided […]]]>

FRANKFURT, June 18 (Reuters) – The European Central Bank is expected to limit rising borrowing costs for the euro zone’s most indebted members, but will not solve their debt problems or let fiscal concerns dictate monetary policy , ECB policy chief Olli Rehn said on Saturday.

At an emergency meeting this week, the ECB decided to direct bond reinvestment to help countries on the southern shore of the bloc and design a new instrument to contain the divergence in borrowing costs. Read more

But the ECB’s action will only go so far as to prevent “unwarranted” market movements and will not help countries in the event of serious debt problems, Rehn, the head of Finland’s central bank, said during the meeting. an event hosted by the Dallas Federal Reserve.

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“We are fully committed to preventing fiscal dominance — and/or financial dominance, for that matter,” Rehn said, referring to a situation where fiscal, not monetary, considerations dictate central bank policy.

“In the event of deeper structural economic weaknesses and debt sustainability issues, there is always room to activate monetary securities transactions.”

The OMT, a never-used emergency debt purchase program, can only be activated if a country participates in an economic adjustment program, a politically unpopular option since the bloc’s debt crisis a decade ago. year.

Borrowing costs have risen sharply around the world this year, with high inflation forcing central banks to raise interest rates to prevent rapid price growth from taking hold.

Italy, with a gross debt of around 150% of GDP, is among the most vulnerable in the bloc and the ECB intervened this week when its cost of 10-year borrowing jumped, overtaking Germany’s by 250 basis points.

Rehn said aid to individual members will only go so far as to ensure that monetary policy is transmitted to all corners of the bloc and that inflation is kept under control.

“While fiscal-monetary interaction is a fundamental feature of policy coordination in a monetary union like the eurozone, it cannot be at odds with central bank independence,” he said.

The ECB promised hikes in July and September, and said further measures are also likely in the fight against high inflation.

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Reporting by Balazs Koranyi; edited by Clelia Oziel

Our standards: The Thomson Reuters Trust Principles.

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How should we monitor trading bots? https://amiyasahu.com/how-should-we-monitor-trading-bots/ Fri, 17 Jun 2022 05:01:11 +0000 https://amiyasahu.com/how-should-we-monitor-trading-bots/ One interesting thing about flash crashes is that they should no longer occur. The rules to protect markets from algorithm-generated disorder are established, extensive and very demanding. The problem is that these rules don’t seem to be enforced. The consequences may seem obvious, like last month when European markets sold off after a Citigroup trader […]]]>

One interesting thing about flash crashes is that they should no longer occur. The rules to protect markets from algorithm-generated disorder are established, extensive and very demanding.

The problem is that these rules don’t seem to be enforced.

The consequences may seem obvious, like last month when European markets sold off after a Citigroup trader in London allegedly added an extra zero to an order. The cross-market ripple effects in this session strongly suggest that the algos of several companies were not responding to lower than usual volume and were contributing to the turbulence. This in turn raises difficult questions as to whether the same algos could rock the boat under less obviously stressed conditions.

A general rule of securities law is that market abuse is market abuse whether committed by a human or a machine. What matters is the behavior. An individual or company can expect trouble if they threaten to undermine market integrity, destabilize an order book, send a misleading signal, or commit myriad other vaguely defined offenses. The mechanism is largely irrelevant.

Importantly, an algorithm that misbehaves when pitted against another company’s manipulative or failed trading strategy is also committing market abuse. Fooling around under pressure is no more an alibi for a robot than it is for a human.

For this reason, trading bots should be tested before deployment. Businesses need to ensure not only that they will work in all weathers, but also that they will not be fooled by big-finger mistakes or popular attack strategies such as dynamic ignition. The intent here is to protect against cascading failures such as the “hot potato” effect that contributed to the flash crash of 2010, where the algos failed to recognize a shortage of liquidity as they traded rapidly among themselves.

Mifid II (effective from 2018) applies a very wide Voight–Kampff test. Investment firms using the European platforms are required to ensure that any algorithm will not contribute to disorder and will continue to operate effectively “in stressed market conditions”. The burden of the police falls partly on tradewhich should require members to certify before each deployment or upgrade that bots are fully tested in “real market conditions”.

But what this means in practice quickly becomes complicated, because for the details you have to delve into Mifid II Regulatory technical standards (RTS) updates.

RTS6 sets out the basic self-assessment framework for investment firms to certify that their bots will not cause antagonism in the markets. Its sequel, RTS 7has a separate and completely different definition as to whether bots will to contribute to the chaos of the market. In short, an RTS 7 compliant company must certify that all systems will not amplify any market convulsions and must include an explanation of how these tests were performed.

RTS 6 is well understood, but how many commercial businesses meet the RTS 7 criteria? According to Nick Idelson, technical director of the consulting firm TraderServer, it is likely that less than half have tested their algo strategies to the required standard. The scale and complexity of the work suggests that even this estimate may be optimistic.

Mifid II’s definition of an algo skips automated site routing and captures just about everything else. If there is “limited or no human intervention” required when generating a quote, it is an algo. If predetermined parameters control the price, order size or timing, it is an algo. If there is a post-submission strategy other than just execution, it’s an algo. Stress testing of these systems must prove that everything will work as expected both individually and in combination.

The scope of the regulation is equally broad, applying to all financial instruments defined by Mifid II on any venue that allows or enables algorithmic trading. The “or allows” bit brings into its scope sites that disallow automated trading strategies, as well as those without auto-matching trading systems. (See question 31 of the ESMA Q&A 2021.) Using a strict interpretation of the rules, it is nearly impossible for a trade to meet best execution obligations without also being defined as automated.

The penalties for non-compliance are significant, up to 15 million euros or 15% of turnover for companies and up to four years in prison for individuals. The overall situation is similar, with IOSCO market integrity principles provide a framework for cross-border enforcement.

But unlike the United States (where JPMorgan Chase landed a $920 million settlement in 2020 for spoofing precious metals futures) and Hong Kong (where Instinet Pacific and Bank of America were fined for bot management failures), the algo police approach in the UK and Europe has been gently-gentle. As CAF noted in its May 2021 Market Intelligence Bulletin:

Our internal monitoring algorithms identified trading by an algorithmic trading company, which raised potential concerns about the impact that the algorithms responsible for executing the company’s various trading strategies were having on the market. As a result of our investigations, the company has adjusted the relevant algorithm and its control framework to prevent the company’s activity from having an undue influence on the market.

One of the hurdles regulators face relates to definitions, as it is difficult to pinpoint exactly what stress testing means contributing to market turmoil.

Is it enough for companies to run historical market data through bots in a sandbox? Or does such an approach risk missing the feedback loops created when the fleet interacts with responsive markets? TraderServe has worked with regulators on best practices using live market simulations, but according to Idelson, it remains impossible for an outsider to know whether a company’s testing approach was comprehensive, cursory or non-existent. For this reason, it would be useful to establish public precedents.

Judging by the weaknesses exposed by Citi’s flash crash, the European approach to bot regulation appears to be insufficient. But the far-reaching obligations set out in Mifid II make more proactive forms of policing difficult to sustain. If non-compliance is as widespread as it sounds, the most effective form of enforcement available to regulators may be a good old-fashioned show trial.

Further reading:
AI Trading and the Limits of EU Law Enforcement to Deter Market Manipulation — IT Law and Security Review (PDF)

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By not taking a position on Rwanda or the railway strikes, the Labor Party exposes itself to attack | Owen Jones https://amiyasahu.com/by-not-taking-a-position-on-rwanda-or-the-railway-strikes-the-labor-party-exposes-itself-to-attack-owen-jones/ Wed, 15 Jun 2022 13:48:00 +0000 https://amiyasahu.com/by-not-taking-a-position-on-rwanda-or-the-railway-strikes-the-labor-party-exposes-itself-to-attack-owen-jones/ Jhe 1970s are back: well, without the flares, roller discos and other good bits. Inflation and a stagnant economy have combined with the classic conservative poison brew of migrant-bashing and union-baiting. It is not a coincidence. A right-wing party faced with escalating social and economic unrest is always tempted to press a big red button […]]]>

Jhe 1970s are back: well, without the flares, roller discos and other good bits. Inflation and a stagnant economy have combined with the classic conservative poison brew of migrant-bashing and union-baiting.

It is not a coincidence. A right-wing party faced with escalating social and economic unrest is always tempted to press a big red button emblazoned with the inscription “spawn bogeymen to deflect popular anger”.

At the time, Margaret Thatcher spoke of the public being “really rather scared that this country could be rather flooded with people of different culture”, while the newspaper headlines castigate the “union activists”. Today, the government is pledging to continue deporting asylum seekers to Rwanda, despite Tuesday’s last-minute reprieve, while considering tightening the already stifling noose of anti-union legislation in response to the upcoming national railroad strike. Anything to distract from soaring bread, pasta or energy prices that are eroding people’s standard of living.

On both fronts, the Tories are targeting the weakness of their Labor opponents. They know they have a clear, uncompromising message, while Labor has no consistent position. Officials do not believe that opposition parties can create a political climate and must instead bend to where the voters are. According to the wisdom received from the party, these voters are anti-migrant and anti-union. This poses a problem for a party whose members are pro-migrants and whose support – and financial base – comes from the labor movement.

The point of view of Labor strategists on this subject is simple: evade the question, avoid getting bogged down in controversy and wait for the storm to pass. There might be more to say about this approach if Labor had another issue to draw media attention to, but that is not the case, and the conversation therefore remains centered on the issues that the party conservative wants to dominate.

Unable to steer the debate, the Labor Party exposes itself to attacks from its base, the public and the Conservative Party. Management can alienate its base by not supporting workers and migrants; the general public may interpret his intransigence as a lack of sincerity; and the conservative party is able to define the position of its adversaries.

Keir Starmer’s legal instincts speak of speaking in terms of process, rather than moral conviction, but that leaves voters – who are human beings, not robots – cold. However, there is an opportunity for the leader to express the concerns and values ​​shared by the general public in the face of the radicalization of the conservatives.

Given that anti-migrant hostility has diminished – albeit to alarming levels, and remains pervasive among millions – Labor has a greater opportunity to advocate for a more compassionate. Humanizing migrants and refugees and highlighting that they are used as scapegoats for the injustices caused by conservative policies will be more compelling, especially if combined with coherent responses to these issues. Labor should tackle the real wage cuts workers are facing as prices rise in excess of wage increases, and support railway workers standing up for themselves and their families.

It can be done. In Question Time last week, Shadow Health Secretary Wes Streeting said: ‘If I was a member of the RMT and my jobs [sic] were at risk like that then I would be vote for the strike and I would vote to defend the terms and conditions of my job. If I was a government minister right now, it’s not my job to be on the picket line, it’s not my job to condemn the unions – it’s my job to solve the problem, to get people around the table, to make sure passengers aren’t embarrassed. That response may be driven by cynical political positioning as he maneuvers for leadership, but it shows that Labor politicians can argue convincingly for industrial action if they so choose.

Labour’s current lead in the polls is driven entirely by Tory self-immolation, but its own MPs are increasingly aware that, without a clear vision for the country, that advantage could soon evaporate. So rather than spouting muddled messages that risk alienating both natural Labor supporters and the swing voters Starmer’s team wants to attract, it’s best to speak with conviction and emotional intelligence. Rather than battening down the hatches and waiting for these storms to pass, the opposition has far more power to shape the political climate than it realizes.

  • Do you have an opinion on the issues raised in this article? If you would like to submit a letter of up to 300 words to be considered for publication, email it to us at guardian.letters@theguardian.com

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Bernanke sees a decent chance for the Fed to pull off a ‘soft landing’ https://amiyasahu.com/bernanke-sees-a-decent-chance-for-the-fed-to-pull-off-a-soft-landing/ Sun, 12 Jun 2022 20:04:00 +0000 https://amiyasahu.com/bernanke-sees-a-decent-chance-for-the-fed-to-pull-off-a-soft-landing/ Former Federal Reserve Chairman Ben Bernanke said in an interview on Sunday that he believed the Fed could deal with inflation with a “soft landing” to avoid a recession. When asked by CNN’s Fareed Zakaria if he agreed with former Treasury Secretary Larry Summers’ assessment that the Fed might induce a recession to fight inflation, […]]]>

Former Federal Reserve Chairman Ben Bernanke said in an interview on Sunday that he believed the Fed could deal with inflation with a “soft landing” to avoid a recession.

When asked by CNN’s Fareed Zakaria if he agreed with former Treasury Secretary Larry Summers’ assessment that the Fed might induce a recession to fight inflation, Bernanke disagreed.

“I think a recession is possible. Economists are very bad at predicting recessions, but I think the Fed has a good chance, a reasonable chance of achieving what [Jerome] Powell calls for a soft landing, either no recession or a very mild recession to bring inflation down,” he said, referring to the current Fed chairman.

Bernanke was also asked if he thinks the current state of the economy is similar to the stagflation seen in the 1970s and if he feels like the US no longer has any economic tools to solve problems.

“Do you feel like we’re in a situation like this today?” Zakaria asked.

“No, I don’t,” Bernanke said.

“A very fundamental difference is that the inflation of the 70s lasted 13 or 14 years and not six months, so people became very, very accustomed to inflation and a huge psychology of inflation developed “, he continued.

“I think it’s a very different situation. Today we have a Federal Reserve that knows it is responsible for inflation. He will take the lead. He has a lot of credibility. Inflation has been low for 40 years. He has political support,” he added.

Bernanke’s remarks come as inflation has soared in recent months. In May, the annual inflation rate was the fastest annual increase in prices since inflation reached 8.9% per year in December 1981.

“Inflation is not only hitting the volatile categories of food and energy, which themselves seem to persist at high levels, especially food, but it has spread deeply to services and the costs of housing, while remaining elevated in property categories we thought were cooling,” Robert Frick, chief economist at the Navy Federal Credit Union, said in an analysis last week.

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In practice: the benefits of renewing RACGP membership https://amiyasahu.com/in-practice-the-benefits-of-renewing-racgp-membership/ Thu, 09 Jun 2022 05:31:41 +0000 https://amiyasahu.com/in-practice-the-benefits-of-renewing-racgp-membership/ New The college offers a number of benefits if members renew before the end of the fiscal year. The college is offering a range of membership benefits for all renewals by June 30, including discounted registration for GP22. Information on how GPs can provide feedback on an independent review of collaborative arrangements for nurse practitioners […]]]>

New


The college offers a number of benefits if members renew before the end of the fiscal year.

The college is offering a range of membership benefits for all renewals by June 30, including discounted registration for GP22.


Information on how GPs can provide feedback on an independent review of collaborative arrangements for nurse practitioners is also included in this week’s In Practice summary, as are details of a number of upcoming educational webinars. .



Membership Renewal Benefits
If 2022-2023 RACGP membership is renewed by June 30, members will receive a $100 registration discount to attend GP22 in Melbourne, November 25-27.


This conference program of the year will include workshops accredited for 40 CPD points and basic life support workshops to meet the requirements for the 2020-2022 triennium.



By renewing before June 30, members can also access three special offers via RACGP Plus:

 

  1. Home loans that recognize the value of healthcare professionals
  2. A 10% lifetime discount on life cover, plus the first month free
  3. Access to tailored, cost-effective safety and wellness, workers’ compensation, injury management and employee benefits solutions

General practitioners are encouraged to renew their membership now and be part of Australia’s largest professional network of GPs.

Any questions or to discuss payment options can be directed to membership@racgp.org.au or 1800 472 247.

Independent Review of Collaborative Arrangements

The Ministry of Health has mandated IPS Management Consultants conduct an independent review of Collaborative agreements with nurse practitioners.

The IPS seeks to find out what is working well, what could be improved and what collaboration agreements should look like in the future. They solicit comments via a online surveywhich closes on Sunday, June 26.

RACGP members can find out more about the college position on primary care nurse practitioners.

Psychological assessment: assessing a patient’s work capacity

To help GPs manage recovery pathways and set expectations for their patients, Comcare has published a one page resource provide step-by-step assistance in assessing a patient’s work capacity, with an emphasis on psychological considerations.

Comcare also hosted a recent webinar on assess functional ability to work for psychological injuries, presented by a panel of experts made up of a practicing general practitioner, a psychologist and a psychiatrist. The panel discusses “good work”, as well as its benefits, and provides advice on changes to make to support continued participation in work.

Audit and feedback to improve the use of antibiotics in long-term care

Webinar: Tuesday, June 21, 8:30 a.m. to 9:30 a.m. (AEST)
Register online.

The Audit and Feedback MetaLab is hosting a webinar to present the results of a provincial peer-comparison audit and feedback program to antibiotic prescribers in long-term care facilities.

Two randomized controlled trials comparing incremental improvements to auditing and feedback will be presented by Dr. Nick Daneman and chaired by Associate Professor Denise O’Connor.

A recording of the webinar will also be available after the live session. Register online for a recording to be emailed. For more information, contact Julie Briggs.

Domestic and Family Violence Training Update

The Safer Families Center at the University of Melbourne leads Pathways to Safety – The Readiness Programa national domestic and family violence (DFV) training program for primary care providers.

Evidence shows that primary care providers have a crucial role to play in addressing VOD. At least one in 10 women who attend a GP practice will have experienced DFV, and it is estimated that a full-time GP sees up to five unidentified abused women a week. General practitioners are the highest occupational group disclosed by current survivors, even more so than the police.

The Pathways to Safety program will help streamline pathways and reinforce a team approach to recognition and referral. This includes for Victoria, training that incorporates the principles of the Multi-Agency Risk Assessment and Management (MARAM) framework and information sharing.

Training is also now available in the Murray Primary Health Network catchment.

Program participants receive accredited hands-on training, tools, and practice-wide support to effectively identify, respond, and refer individuals and families experiencing VFD.

To learn more and apply for the program, contact Kitty Novy or visit Safer Families website.

Other learning options through The preparation program include a suite of hour-long e-learning modules, workshops on a range of topics and a series of webinars hosted by the RACGP.

Responding to LGBTIQA+ Family Abuse and Violence in General Practice

Webinar: Thursday, July 21, 7:00 p.m. – 8:30 p.m. (AEST)
Eligible for 3 RACGP CPD activity points
Register online.

Moderated by Associate Professor Ruth McNair, academic and general practitioner with a particular interest in LGBTIQA+ health care, and Marina Carman, director of Rainbow Health Victoria.

Presented as an interactive educational activity, the session will provide GPs with the skills to support LGBTIQA+ people experiencing domestic violence.

Learning outcomes:

  • Understand the prevalence and specific drivers of family violence for LGBTIQA+ people
  • Describe the drivers of family violence among subgroups of LGBTIQA+ people
  • Understanding suicide risk in relation to family violence
  • Identifying and overcoming barriers to identifying domestic violence among LGBTIQA+ people
  • Using the Socio-Ecological Framework to Develop LGBTIQA+ Domestic Violence Management Approaches in Primary Care

Preventing Elder Abuse

Webinar: Thursday, August 18, 7:00 p.m. – 8:30 p.m. (AEST)
Eligible for 3 RACGP CPD activity points
Register online.

Presented by Dr Elizabeth Hindmarsh, GP and Chair of RACGP Special Interests on Abuse and Violence, and Professor Dimity Pond from Newcastle University.

This webinar will discuss how general practice can contribute to the prevention and intervention of elder abuse and contribute to a safer society for all.

Learning outcomes:

  • Understand the prevalence of elder abuse in society
  • Discuss and become more aware of how to ask and intervene with patients to improve safety
  • Discuss available resources and SEO options

GP22 registrations are now open

The RACGP is delighted to provide GP22 in Melbourne from November 25-27.

Held as an in-person event for the first time in two years, GP22 will give GPs access to training and networking opportunities they may have missed during the pandemic.

Program highlights include:

  • dermatological presentations
  • cardiovascular health
  • pain management
  • women’s health
  • endocrine and metabolic health
  • Mental Health.

This year’s program will also include accredited workshops for 40 CPD points and basic life support workshops for GPs to meet the requirements for the 2020-22 triennium.
Register onlinee.

Rural Procedural Grants Program: Online Education Applications Extended Through December 31

The Rural Procedural Grants Program (RPGP) helps cover the cost of professional development for general practitioners who provide procedural and/or emergency medicine services in unsupervised settings in rural and remote areas.

The RPGP offers GPs the opportunity to access financial assistance to maintain or update their skills, so that they can continue to provide vital services to their community.

GPs enrolled in RPGP can continue to apply for education grants online until 31 December 2022. The date has been extended by the Department of Health in conjunction with GP colleges to make professional development more accessible to rural and remote GPs during the COVID-19 pandemic.

To attend a claimable activity, GPs must be enrolled in the program prior to attending.

Visit the RACGP website for more information or to register.

Australian Patient Association Award 2022

The appointments are Open until June 30 for ‘Most Outstanding General Practitioner’ in the 2022 APA Awards. More information is available on the APA website.

RACGP Plus – July offer

RACGP Plus members can receive a quote from MBA car assistance to help with the purchase of a new motor vehicle before the end of the fiscal year. More information is available at RACGP Plus.

Log in below to join the conversation.



DPC Abuse and Domestic Violence Membership GP22 In Practice


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Will your practice administer free flu shots outside of NIP-eligible individuals?

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The Facemaker – how plastic surgery emerged from the horror of the First World War https://amiyasahu.com/the-facemaker-how-plastic-surgery-emerged-from-the-horror-of-the-first-world-war/ Tue, 07 Jun 2022 14:00:16 +0000 https://amiyasahu.com/the-facemaker-how-plastic-surgery-emerged-from-the-horror-of-the-first-world-war/ ‘The patient’s new face emerging from his chest’ headlined the Yorkshire Evening Post on December 6, 1917. A few days earlier, Harold Begbie of the Post stood in an operating theater at Queen’s Hospital, Sidcup. The anesthetized man on the table in front of him was naked from the waist down, and his orange, iodine-soaked […]]]>

‘The patient’s new face emerging from his chest’ headlined the Yorkshire Evening Post on December 6, 1917. A few days earlier, Harold Begbie of the Post stood in an operating theater at Queen’s Hospital, Sidcup. The anesthetized man on the table in front of him was naked from the waist down, and his orange, iodine-soaked chest showed the faint outline of a hand-drawn face. What made the sight all the more disturbing was that the man’s true facial features were “blasted and shattered” beyond recognition.

Begbie watched in horror and fascination as the surgeon took up his scalpel and began to carefully slice and lift the skin along the outlined lines. Another member of the medical team drew the viewer’s attention to two distinct ridges protruding from the patient’s shoulders. They were pieces of bone – already taken from his ribs, implanted just under the skin to preserve them – that would be used as cartilage for his new nose.

It was too much for Begbie who had to be escorted out almost immediately. But he had seen enough to know that the surgeon in that operating room was making history. “A revolution has come,” he informed his readers. “A new face is grafted onto it, grows into it and becomes a real face.”

The man wielding the scalpel was Harold Gillies, a New Zealand-born, Cambridge-trained otolaryngologist. His pioneering work during World War I not only restored the identity and dignity of thousands of horribly wounded soldiers, but, as medical historian Lindsey Fitzharris shows, also established plastic surgery as we know it. know today.

We are aware that mechanized mass combat has led to industrial-scale slaughter, and we are also well aware of the psychological trauma caused by the sights and sounds of trench warfare. The truly gruesome facial injuries suffered by so many soldiers between 1914 and 1918 are less widely documented. Basic medical advances meant that more men survived these injuries than ever before, but when it came to trying to repair the damage, surgery was still horribly limited. These men – the French called them broken jaws (faces shattered), the Germans Menschen ohne Gesicht (men without faces), and the English, the “Loneliest of Tommies” – were left in limbo; hidden out of sight and deprived of the welcome of the hero celebrated by their brothers in arms.

Walter Yeo, an English WW1 sailor who is said to have been one of the first people to have plastic surgery to repair his face © Alamy

As a young ear, nose and throat specialist serving in a Belgian military field hospital, Gillies saw these horrors firsthand. Back in England, he established a specialist maxillofacial unit, where, as the war raged on and the wounded continued to be sent home, he assembled a team of specialists to develop what he described as “this strange new art”. These included dental surgeons, anesthesiologists and radiologists, as well as artists, sculptors and photographers. Fitzharris captivatingly shows that the process of making the face required both surgical innovation and artistic skill.

Gillies is that rare hero; very accomplished, but also modest and empathetic. It’s quite moving to read how he would reassure those in his charge. “Don’t worry, son,” he said. “You’ll be fine and look as good a face as most of us do before we’re done with you.”

As in his award-winning book in 2017 The art of butchery – on how Joseph Lister transformed Victorian medicine with an antiseptic – Fitzharris does not sensationalize the gory details of the battlefield or the operating room. But she doesn’t look away either. Sometimes scary, sometimes moving, The Facemaker seized me; it is elegantly written and endlessly fascinating. Using the right balance of diligent research and ingenious resuscitation, Fitzharris brings an overlooked slice of medical history to life, telling the story of Gillies as well as that of many of the men whose faces and lives he saved.

The Facemaker: A surgeon’s battle to repair disfigured WWI soldiers by Lindsey Fitzharris Allen Lane £20, 336 pages

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The inequity of job-ready graduates for students needs to be addressed quickly. here’s how https://amiyasahu.com/the-inequity-of-job-ready-graduates-for-students-needs-to-be-addressed-quickly-heres-how/ Sun, 05 Jun 2022 20:02:12 +0000 https://amiyasahu.com/the-inequity-of-job-ready-graduates-for-students-needs-to-be-addressed-quickly-heres-how/ Labor’s promise of a ‘deal with universities’ suggests a slow and cautious approach to higher education policy. A new education minister without a strong track record in the portfolio may also want time to address issues. In general, taking this time to properly define the policy and gain support for it is a good approach. […]]]>

Labor’s promise of a ‘deal with universities’ suggests a slow and cautious approach to higher education policy. A new education minister without a strong track record in the portfolio may also want time to address issues.

In general, taking this time to properly define the policy and gain support for it is a good approach. But when the current policy is problematic and lacks strong support, it is necessary to act more quickly. This is the situation with the previous government Ready-to-use graduates student funding policy adopted at the end of 2020.

Job-ready graduates impose AID debts on some students, increases the costs of running the HELP loan program for the government, and distorts university incentives to allocate student places across courses.



Read more: Labor promised university deal could be watershed for higher education in Australia


How are university courses funded?

A mix of Commonwealth and student contributions finance domestic undergraduate students in public universities. Added together, these contributions constitute the overall funding rate by subject.

The government sets Commonwealth contributions, which vary by academic discipline. The government pays universities based on their enrollment up to a capped total grant amount.

Universities set student contributions up to a legal maximum, which also varies by discipline. Universities are paid directly by students or by HECS-HELP Loans. The total income from student contributions is not capped.

Once universities have reached their maximum Commonwealth Contribution grant, they can still increase enrollment, but only on student contribution income. These additional students are called “over-enrolments”. Historically, oversubscriptions have been an important source of flexibility to meet student demand.

In its basic architecture, graduate-ready has similarities to previous funding policies, other than the demand-driven system, which uncapped both Commonwealth and student contributions.

Where Graduate Ready Graduates differ is in Commonwealth and Student Contributions.



Read more: Demand-side funding for universities is frozen. What does this mean and should the policy be restored?


Commonwealth Cup by Student Contribution

Career-ready graduates increase student places by keeping total university grants at about the same level but reducing the average Commonwealth contribution. Universities need to provide more places for students for every million dollars in public funding.

Labor has already promised a small, and possibly temporary, increase in total Commonwealth contribution funding. Since the government overall budgetary situationa significant increase per student may not be achievable.



Read more: Labor offers more university places, but more radical change is needed


For universities, increases in student contributions at least partially offset reductions in Commonwealth contributions for job-ready graduates.

Student dues have changed drastically

The most drastic element of Ready-to-Go Graduates was another change in student contributions. Before this policy came into effect, a combination of assumed private financial benefits and course costs explained student contribution levels by discipline. The price difference between the cheapest and the most expensive discipline was around $4,500 per year.

Job-ready graduates abandoned this system. Instead, it uses student contributions to manipulate student demand.

In nursing and education, the “ready-made” courses that the previous government favored, student contributions have been cut by about $2,700 a year. In disadvantaged courses, they have increased. The largest increases of $7,800 per year were recorded in humanities other than languages.

The spread between the cheapest and the most expensive has more than doubled to $10,550 per year.

Higher or lower Commonwealth contributions partly offset these changes in student contributions, so overall funding rates have changed less than student contribution levels.



Read more: 3 big issues in higher education demand the attention of the new government


Job-Ready Graduates Have Long-Term Impacts

The graduate-ready hypothesis that students would respond to these price signals and alter enrollment trends has never been proven. Course preferences again depends on student interests. For financially motivated students, differences in job and salary prospects are also more important than the amount they pay for their course.

Job-ready grads shuffle hundreds of millions of dollars in HELP debt between students each year. Some students, such as those in nursing or teaching, will owe less than before and will pay off their debt sooner.

Others, like those taking humanities courses, will owe much more and will continue to repay for years longer than before. Some may never fully repay their HELP debt.

Although HELP is designed to allow for slow or incomplete repayment, this should reflect varying individual circumstances. It is neither reasonable nor fair to assign payback periods and risks based on course choices.

Slow or non-existent repayment increases the cost of HELP for the government. This is not prudent when it is already facing large budget deficits.

The system also affects the economics of over-enrollment.

In fields such as the arts, law or business, the student contribution covers more than 90% of the maximum income that a university could obtain per student. These areas are close to a de facto demand-driven system, with only minor financial constraints on increasing enrollment for universities already earning their maximum Commonwealth grant.

In areas such as education and nursing, less than 25% of the maximum income per student comes from the student. Excessive enrollment in these areas is almost certainly at a deficit, preventing them from accepting more students.

How to repair this system?

To fix the system, we need student and commonwealth contributions that vary within a narrower range.

This change can be almost budget neutral. Courses that are too expensive compared to other areas would result in lower student contributions and higher Commonwealth contributions. Tuition that is too cheap would lead to higher student contributions and lower Commonwealth contributions.

Enrollment estimates in 2022 could be used to ensure that increases and decreases in contributions balance each other out, leaving government and universities in the same financial position.

Fast or slow change?

Increases in student dues are normally “fronted”, so that only new students are affected and continuing students are retained on the old rates.

Grandfathering is usually preferable, so that students in the course aren’t suddenly hit with unexpected extra fees to complete it. But job-ready graduates are creating so many problems that they need to be ended as quickly and completely as possible.

Had the new student fee system been introduced for 2023, students facing higher fees would have benefited from up to two years of reduced student contributions. Their total course cost upon graduation would still be lower than other students.

A quick solution to the problems of job-ready graduates does not preclude later changes coming from the agreement process. This is an interim measure to correct errors rather than a long-term policy.

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