Why Middle East Always at War

Tensions in the Middle East have been a longstanding and complex issue, rooted in historical, political, economic, and religious factors. The region has been marked by several significant conflicts and disputes. Here are some of the key sources of tension in the Middle East:

1. Israeli-Palestinian Conflict:

Ongoing tensions between Israelis and Palestinians over issues such as borders, refugees, and the status of Jerusalem have led to numerous conflicts and peace negotiations.

2. Iran and Nuclear Concerns:

The international community, particularly Western countries, has expressed concerns about Iran’s nuclear program. Talks and agreements, such as the Joint Comprehensive Plan of Action (JCPOA), have been central to diplomatic efforts regarding Iran’s nuclear ambitions.

3. Syrian Civil War:

The Syrian conflict, which began in 2011, has led to one of the most devastating humanitarian crises of the 21st century. Multiple factions, including the Syrian government, various rebel groups, and ISIS, have been involved in the conflict.

Middle-East Tensions

4. Yemeni Civil War:

Yemen has been embroiled in a civil war involving Houthi rebels, who are backed by Iran, and the internationally recognized government, supported by a coalition led by Saudi Arabia and the United Arab Emirates.

5. Rivalries in the Gulf:

There are longstanding tensions between Gulf countries, particularly between Sunni-majority Saudi Arabia and Shia-majority Iran. This rivalry often plays out in proxy conflicts in other countries.

6. ISIS and Terrorism:

The rise of ISIS (Islamic State of Iraq and Syria) and other extremist groups has created significant security concerns in the region. Efforts to counter terrorism and extremism remain a top priority for many Middle Eastern countries.

7. Resource Conflicts:

The region’s vast oil reserves have historically led to competition and, in some cases, conflict over control and access to these resources.

8. Political Unrest:

Several countries in the region have experienced political unrest and popular uprisings, such as the Arab Spring movements, which have had far-reaching effects on the political landscape.

It’s important to note that the situation in the Middle East is highly dynamic, and new developments may have occurred since my last update in September 2021. For the most recent and detailed information, I recommend consulting reputable news sources and international relations analyses.

For Financial Stability Bank of Israel Maintained Interest Rates

The Bank of Israel is responsible for formulating and implementing monetary policy in Israel. It uses various tools, including interest rate adjustments, to control inflation and stabilize the economy during the war.

Now The Bank of Israel kept short-borrowing interest rates at 4.75% and the rates are maintained this level for the third time. It may help to avoid the inflation and weakened economy.

Currency Issuance:

The Bank of Israel is the sole issuer of the Israeli New Shekel, the country’s currency. It manages the country’s foreign exchange reserves and participates in currency markets to influence the exchange rate of the Israeli New Shekel.

Foreign Exchange Reserves:

The Bank of Israel manages the country’s foreign exchange reserves, which are held in various currencies. These reserves are important for stabilizing the local currency and ensuring economic stability.


The Bank of Israel is headed by a Governor, who is supported by a Monetary Committee. The Governor and the committee members are responsible for making key decisions related to monetary policy, interest rates, and other important financial matters.

war and currency

Connection between War and Currency

War and currency have a complex relationship, and historical examples as well as economic theories provide insight into this connection:

  1. Impact of War on Currency:
    • Inflation: Wars can lead to inflation due to increased government spending on military efforts. When a government spends more money, it often prints more currency, which can devalue the currency and lead to inflation.
    • Uncertainty: Wars create economic uncertainty. Investors and businesses might lose confidence in the stability of a country’s economy during wartime, leading to fluctuations in currency value.
    • Trade Balance: Wars can disrupt trade, affecting a nation’s balance of trade. A country might import more goods (especially military equipment) than it exports, leading to trade imbalances and affecting the value of its currency.
  2. Role of Currency in Financing Wars:
    • Debt: Countries often take on significant debt to finance wars. Governments issue bonds, and sometimes they borrow money from other countries, which can influence the value of their currency.
    • War Bonds: Governments might issue war bonds to citizens, essentially borrowing money from the public. This can impact the money supply and, consequently, inflation and currency value.

      In conclusion, war and currency are intricately linked. Wars can lead to economic instability through inflation, uncertainty, and trade imbalances. The way governments manage their currency, debt, and economic policies during and after wars significantly influences how currencies are affected.

Saudi Oil US Dollar and Other Global Currencies

Saudi Arabia is one of the world’s largest oil producers and has a significant impact on global currencies through its influence on oil markets. The country is a key player in the Organization of the Petroleum Exporting Countries (OPEC) and has substantial reserves of crude oil.

Oil is denominated in U.S. dollars, and its pricing and trading are conducted predominantly in dollars in global markets. This means that when countries and entities buy oil from Saudi Arabia or other oil-producing countries, they typically pay in U.S. dollars. As a result, the demand for dollars in the global economy is influenced by the need to purchase oil, including Saudi oil.

The relationship between oil and global currencies, particularly the U.S. dollar, can be quite complex. Here are a few key points to consider:

  1. Petrodollar System: The petrodollar system refers to the arrangement where oil-exporting countries, including Saudi Arabia, accept only U.S. dollars as payment for oil. This system emerged in the 1970s when OPEC countries agreed to sell oil exclusively in dollars. It helped solidify the U.S. dollar’s position as the world’s primary reserve currency and increased demand for the dollar.
  2. Currency Exchange Rates: The strength or weakness of a country’s currency can be influenced by its reliance on oil exports and fluctuations in oil prices. When oil prices rise, countries that are major oil exporters, such as Saudi Arabia, tend to see an increase in revenue. This influx of income can strengthen their currency. Conversely, a decline in oil prices can have the opposite effect.
  3. Economic Impact: Oil plays a crucial role in Saudi Arabia’s economy, accounting for a significant portion of its government revenue and export earnings. Fluctuations in oil prices can impact the country’s fiscal health, affecting its ability to maintain its currency’s stability and manage its economic policies.
  4. Currency Diversification: In recent years, Saudi Arabia has taken steps to diversify its economy and reduce its reliance on oil exports. As part of its Vision 2030 initiative, the country aims to develop other sectors, such as tourism, entertainment, and technology. By diversifying its economy, Saudi Arabia seeks to mitigate the vulnerability of its currency to oil price fluctuations.

The United Arab Emirates (UAE) is a significant player in the global oil market. It is one of the world’s leading oil producers and exporters, contributing to the global supply of crude oil.

It’s important to note that while Saudi Arabia’s oil exports influence global currencies, they are not the sole determinant. Currency exchange rates are influenced by a wide range of factors, including interest rates, economic indicators, geopolitical events, and market sentiment.

Overall, Saudi Arabia’s position as a major oil producer and exporter gives it considerable influence over global currencies, particularly the U.S. dollar. However, the relationship between oil and currencies is complex, and various factors contribute to currency exchange rate dynamics.

How to Calculate Current Market Value?

To calculate the current market value of an asset or investment, you typically need to consider factors such as the prevailing market conditions, supply and demand dynamics, and recent sales or transactions of similar assets. Additionally, the specific method of valuation depends on the type of asset or investment you are referring to. Here are a few common examples:

  1. Stocks: The market value of a stock is determined by multiplying the current price per share by the total number of outstanding shares.
  2. Real Estate: Real estate market value can be estimated by analyzing recent sales of comparable properties in the same area, taking into account factors such as location, size, condition, and amenities.
  3. Bonds: The market value of a bond is influenced by its face value, interest rate, maturity date, and prevailing interest rates in the market. It can be calculated using present value calculations.
  4. Mutual Funds: The market value of a mutual fund is determined by multiplying the net asset value (NAV) per share by the total number of shares held by the fund.
  5. Cryptocurrencies: The market value of cryptocurrencies is typically determined by multiplying the current price of a particular cryptocurrency by the total number of coins or tokens in circulation.

How to Determine Current Market Price

To determine the market price of an asset or investment, you typically need access to real-time market data. As an AI language model, I don’t have direct access to current market prices. However, you can find the market price of various assets by referring to financial news sources, brokerage platforms, or financial websites that provide up-to-date market data.

For stocks, you can check the prices on stock exchanges such as the New York Stock Exchange (NYSE) or NASDAQ. Cryptocurrency prices can be found on cryptocurrency exchanges or specialized financial websites. Real estate prices can be researched through property listing websites, real estate agents, or property appraisal services.

By consulting these sources, you can obtain the most recent market prices for different assets and investments. Keep in mind that market prices are subject to constant fluctuations due to supply and demand dynamics, economic factors, and investor sentiment.

It’s important to note that the financial landscape and market conditions have evolved since 2008. While it serves as an important historical reference, it’s always advisable to consult up-to-date information and analysis for the current market environment.

It’s important to note that market values can fluctuate rapidly based on market conditions and other factors. Therefore, it’s advisable to consult up-to-date market data or seek professional advice to obtain accurate and current market values for specific assets or investments.

What Happened to the Market in 2008

The year 2008 is known for a significant event in financial history, commonly referred to as the “2008 Financial Crisis” or the “Great Recession.” It was a global economic downturn that originated in the United States and had a profound impact on financial markets worldwide. Here are some key points about the 2008 market:

  1. Trigger: The crisis was triggered by a combination of factors, including the bursting of the U.S. housing bubble, subprime mortgage defaults, and the subsequent collapse of several major financial institutions.
  2. Stock Market: Stock markets experienced a severe decline during this period. In the United States, the Dow Jones Industrial Average (DJIA) and the S&P 500 index both saw significant drops. The global stock markets also faced substantial losses.
  3. Housing Market: The U.S. housing market experienced a substantial decline, leading to a wave of foreclosures and a significant drop in housing prices. This had a negative impact on financial institutions heavily exposed to mortgage-backed securities.
  4. Bank Failures: Several prominent financial institutions faced severe financial distress or collapsed entirely, including Lehman Brothers, Bear Stearns, and Washington Mutual. This led to a loss of confidence in the financial sector and further intensified the crisis.
  5. Government Intervention: To stabilize the markets and prevent a complete collapse of the financial system, governments around the world implemented various measures. These included bailouts of troubled financial institutions, stimulus packages, and interest rate cuts by central banks.
  6. Global Economic Impact: The 2008 financial crisis had far-reaching consequences beyond the financial sector. It resulted in a global recession, high unemployment rates, and a slowdown in economic growth in many countries. The effects were felt across multiple industries and had a significant impact on individuals and businesses worldwide.

Some of the Key factors of 2008 Financial Crisis

It is not accurate to attribute the crisis to a single individual or entity. However, here are some key factors and contributors to the 2008 financial crisis:

  1. Subprime Mortgages: One of the main catalysts of the crisis was the proliferation of risky subprime mortgages. These mortgages were extended to borrowers with poor creditworthiness and had higher default rates than traditional mortgages.
  2. Financial Institutions: Several major financial institutions played a role in the crisis. Some of them, such as Lehman Brothers, Bear Stearns, and Merrill Lynch, had significant exposure to subprime mortgages and related securities. The collapse or near-collapse of these institutions had a severe impact on the financial system.
  3. Mortgage Lenders: Mortgage lenders who originated subprime mortgages, including both banks and non-bank lenders, contributed to the crisis by offering loans to borrowers who were unable to repay them. These loans were then packaged into complex financial products known as mortgage-backed securities (MBS) and sold to investors.
  4. Credit Rating Agencies: Credit rating agencies, which assign ratings to financial products, failed to adequately assess the risks associated with mortgage-backed securities and other complex financial instruments. They assigned high ratings to many securities that ultimately suffered significant losses.
  5. Regulatory Failure: Some critics argue that regulatory bodies, including the U.S. Securities and Exchange Commission (SEC) and the Federal Reserve, did not effectively supervise and regulate the financial industry. They failed to identify and address the risks and vulnerabilities that ultimately led to the crisis.

Futures and Options Risk Factors that Every Trader Need to Know

Futures and options are financial derivatives that are used to manage risk or speculate on future market movements. Here is a brief explanation of each:

  1. Futures: Futures are contracts that oblige the buyer to purchase an asset or the seller to sell an asset at a predetermined price and date in the future. Futures contracts are traded on organized exchanges and are standardized with respect to the quantity, quality, delivery date, and location of the underlying asset. Futures are commonly used by businesses and investors to hedge against price fluctuations in commodities, currencies, and financial instruments.
  2. Options: Options are contracts that give the buyer the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a predetermined price (strike price) on or before a specified date. Options can be traded on organized exchanges or over the counter (OTC). Options are commonly used by investors to speculate on future price movements or to protect their portfolios against downside risk.

In summary, futures and options are both financial derivatives that allow investors to manage risk and speculate on future market movements, but they differ in terms of their contractual obligations and the rights they confer to the buyers and sellers.

Risk Factors

Futures and options trading involves risks that investors should be aware of before participating in these markets. Here are some of the main risks associated with futures and options trading:

  1. Market Risk: Futures and options are subject to market risk, which means that their value can rise or fall depending on the movements of the underlying asset. The prices of commodities, currencies, and financial instruments can be volatile and are affected by various factors such as economic indicators, geopolitical events, and supply and demand factors.
  2. Leverage Risk: Futures and options are leveraged instruments, which means that traders can control a larger position with a smaller amount of capital. While leverage can magnify potential profits, it can also increase the potential losses. Traders can lose more than their initial investment if the market moves against their position.
  3. Counterparty Risk: Futures and options contracts are binding agreements between two parties. The counterparty risk arises if one party fails to meet its obligations under the contract, either by default or bankruptcy. Exchange-traded futures and options are generally backed by a clearinghouse, which acts as a counterparty to every trade and reduces counterparty risk. However, OTC options are subject to counterparty risk, and traders should carefully consider the creditworthiness of their counterparties.
  4. Liquidity Risk: Futures and options markets can experience periods of low liquidity, which can affect the ability to enter or exit a position at a desired price. Illiquidity can also increase bid-ask spreads and transaction costs, which can reduce profits or increase losses.

In summary, futures and options trading involves various risks that should be carefully considered by investors before participating in these markets. It is important to have a clear understanding of these risks and to have a well-thought-out trading strategy in place to manage them effectively.

What is Inflation? Inflation Worries 2023

Inflation refers to the general increase in the prices of goods and services over time, resulting in a decrease in the purchasing power of currency. In other words, inflation means that the same amount of money can buy less than it could in the past. It is measured as the percentage change in the Consumer Price Index (CPI), which is a basket of goods and services that are commonly purchased by households.

Inflation can be caused by a variety of factors, such as an increase in demand for goods and services, a decrease in the supply of goods and services, changes in government policies, and changes in the value of currency. High and persistent inflation can have negative effects on an economy, such as reducing the value of savings and fixed-income assets, making borrowing more expensive, and potentially leading to a decrease in investment and economic growth.

Inflation worries

Inflation worries can arise when there is a sustained increase in the prices of goods and services, which can reduce the purchasing power of consumers and potentially lead to other economic problems.

In 2023, if inflation concerns were to arise, it would likely be due to a combination of factors such as changes in consumer demand, fluctuations in the supply of goods and services, global economic conditions, and changes in monetary or fiscal policies. Central banks and governments may implement various measures such as adjusting interest rates or implementing fiscal policies to stabilize prices and control inflation.

It is important to note that some level of inflation is considered normal in a healthy economy, and a small amount of inflation can even be desirable as it encourages spending and investment. However, high or rapidly increasing inflation can be a cause for concern and may require intervention from policymakers.

Inflation can have a significant impact on businesses in a variety of ways. Here are some examples:

  1. Increased costs: As the prices of goods and services rise, businesses may face higher costs for raw materials, labor, and other inputs. This can eat into profit margins and make it more difficult to operate efficiently.
  2. Reduced consumer demand: When inflation occurs, consumers may have less money to spend on discretionary items, as the cost of necessities such as food and housing increase. This can lead to reduced demand for non-essential goods and services, which can impact businesses that rely on consumer spending.
  3. Pricing pressures: Businesses may feel pressure to raise their own prices in response to inflation, in order to maintain profit margins. However, if consumers are unable or unwilling to pay higher prices, this can lead to decreased sales.
  4. Uncertainty: Inflation can create economic uncertainty, which can make it difficult for businesses to plan and invest for the future. If inflation is high or volatile, businesses may be hesitant to make long-term investments or take on new projects.

Overall, inflation can make it more challenging for businesses to operate effectively and can lead to decreased profitability and reduced growth opportunities. It is important for businesses to monitor inflation trends and adjust their strategies as needed to adapt to changing economic conditions.

Artificial intelligence Growth and Market Size

Artificial intelligence (AI) is rapidly growing and transforming various industries across the world. Some of the areas where AI is being applied include healthcare, finance, retail, transportation, manufacturing, and many more. Here are some factors driving the growth of AI:

  1. Increasing Data Availability: With the increasing amount of data generated daily, AI can be used to extract insights and drive decisions.
  2. Advancements in Computing Power: The development of high-performance computing technologies, such as cloud computing, have enabled AI to process large amounts of data at high speed.
  3. Improvements in Algorithms: The development of new and more sophisticated AI algorithms has led to significant improvements in AI capabilities, including machine learning, natural language processing, and computer vision.
  4. Investment in AI: Governments, private companies, and investors are increasingly investing in AI research and development, which is accelerating the growth of the industry.
  5. Growing Demand for Automation: With the increasing demand for automation across various industries, AI is being used to automate processes, reduce costs, and improve efficiency.
  6. Emergence of Edge Computing: The emergence of edge computing, which enables processing of data at the edge of the network, is driving the growth of AI-powered IoT devices and applications.

Overall, the growth of AI is expected to continue as the technology continues to evolve, become more accessible, and address new challenges in various industries.

AI growth and Size

The global artificial intelligence (AI) market size was valued at USD 62.35 billion in 2020, and it is expected to grow at a compound annual growth rate (CAGR) of 40.2% from 2021 to 2028. The AI market includes various segments, such as hardware, software, and services, which provide different AI solutions to industries and organizations.

The demand for AI is driven by factors such as increasing data volumes, growing adoption of cloud-based applications, and advancements in technologies like machine learning, natural language processing, and computer vision. The rising adoption of AI by various industries such as healthcare, automotive, finance, and retail is also contributing to the market’s growth.

North America dominated the AI market in 2020, followed by Europe and the Asia Pacific. The United States and Canada are the major contributors to the AI market in North America, while the UK, Germany, and France are the key players in Europe. The Asia Pacific region is expected to witness significant growth in the AI market due to the increasing adoption of AI-based technologies by various industries in countries such as China, Japan, and India.

Overall, the AI market is expected to continue to grow in the coming years due to the increasing demand for AI-based solutions and services across various industries and the rapid advancements in AI technologies.

80C Investments or Just ELSS is Best for Tax Saving

Section 80C of the Income Tax Act allows individuals and Hindu Undivided Families (HUFs) to claim deductions from their taxable income for certain investments and expenses. The maximum deduction allowed under Section 80C is Rs. 1.5 lakhs for the financial year 2022-23.

ELSS are managed by fund managers and hence a safe investment option for tax saving purposes. It also comes under 80C of the Income Tax Act, 1961 and you will get a tax exception of 150000 a year. And it is the only Mutual Fund scheme that is eligible for tax benefits. Investments made in ELSS have a lock-in period of 3 years. The advantage of mutual fund is that as we all know it is invested in a blanched way into the equity markets.

Features of ELSS (Equity-Linked Savings Scheme) Funds

Here are some of the features of ELSS,

  • Investment only upto 150000 comes under section 80C
  • The long-term capital gain of upto 1 lakh is tax exempt
  • The risk involved is still higher compared to a fixed deposit
  • These tax-saving investments have a lock-in period of 3 years
  • The scheme is open-ended
  • SIP is applicable for ELSS as well
Tax Saving

80C Tax Saving Investments

Under this section, you can reduce your tax liability every year. According to section 80C these investments are eligible for tax deduction

  • Public Provident Fund
  • National Savings Certificate
  • Post Office Term Deposit
  • National Pension System
  • Senior Citizen Saving Scheme
  • Tax saver Fd
  • Unit Linked Insurance Plan
  • Sukanya Samridhi Account. 
  • Employee Provident Fund