Thursday, October 8

Global Economics

Looking at economic forecasts for the global economy and the impact of national and multinational policies.

U.S. Phones, Telecom Companies Still Subject to Spying
Big Tech, Digital Economy, Sanctions, Types of News: Brief, United States

U.S. Phones, Telecom Companies Still Subject to Spying

Trump Scraps Proposed Sanctions on China’s Spy Agency December 4, 2025—A year after it became known that the Chinese government hacked into the U.S. telecommunications systems, gaining access to millions of phones, the systems remain vulnerable to spying, according to senators, a panel of experts, and officials at the Federal Communications Commission. “Our nation’s communications networks are facing rapidly evolving threats ranging from fraud and espionage to sabotage,” said Sen. Deb Fischer at a Senate Commerce Committee hearing on Tuesday. In late 2024, U.S. officials became aware of a Chinese government cyberespionage operation targeting global telecommunications systems. That became known as the “Salt Typhoon” attack, the worst telecommunications compromise in the nation’...
Musk Pushes Robotics After Winning Tesla $1 Trillion Pay Plan
Big Tech, Digital Economy, Finance, Banks, Cryptocurrency, Metals, Types of News: Brief

Musk Pushes Robotics After Winning Tesla $1 Trillion Pay Plan

Why the GER is covering this story: This story cuts to the heart of corporate responsibility, the ability of shareholders to influence corporate decisions, the evolving role of AI in the workplace and human relations, and inequality. November 7, 2025—Tesla’s board and CEO Elon Musk have won their proposal to pay Musk $1 trillion via stock options over the next decade with over 75 percent support from shareholders. Shortly after the company announced the results, Musk took the stage and emphasized a focus on robots. He said robots “are the future” for everything from health care and criminology. He added, however, that “things get wild from an economic point of view.” “Every human on Earth is going to want to have their own personal R2-D2 or C-3PO,” Musk said. “So who wouldn’t...
Norway’s Wealth Fund Votes ‘No’ on Tesla’s Trillion Payout to Musk
Finance, Banks, Cryptocurrency, Metals, Types of News: Brief

Norway’s Wealth Fund Votes ‘No’ on Tesla’s Trillion Payout to Musk

November 4, 2025—Norway’s Norges Bank Investment Management voted against both Tesla’s board proposals on executive pay, including the plan to distribute $1 trillion to CEO Elon Musk over the next decade. This year’s proxy vote is a significant test of shareholder power. The $2 trillion fund is the world's largest sovereign wealth fund. It has a $11.7 billion stake in Tesla, which represents just over one percent of the company’s shares. “While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk- consistent with our views on executive compensation. We will continue to seek constructive dialogue with Tesla on this and other topics,” the fund said in its reas...
Risk and Rewards of Bank Deregulation in Trump 2.0
Big Tech, Digital Economy, Finance, Banks, Cryptocurrency, Metals, Types of News: Brief

Risk and Rewards of Bank Deregulation in Trump 2.0

Trump’s Changes Boost Big Banks and AI Carry Market Risks November 3, 2025—Deregulation of industry is a significant feature of Trump 2.0. In his second term, President Donald Trump is signing executive orders and presidential memoranda that require agencies to pause, review, or repeal rules affecting energy production, air quality, environmental protection, and banking. In the financial sector, the Trump administration is: Reducing the amount of cash banks need to hold (a.k.a. capital requirements). Cutting certain exam requirements for small, community banks effective Jan. 1, 2026. These relate to the National Flood Insurance Program, fair lending risk assessments, and other regulatory requirements. (See the Office of Comptroller of the Currency, https://occ.gov/news-issuances/...
Musk’s $1 Trillion Demand on Tesla Shareholders
Finance, Banks, Cryptocurrency, Metals, Global Economics, Types of News: Analysis

Musk’s $1 Trillion Demand on Tesla Shareholders

Proxy Vote is a Test of Shareholder Power, Musk's Value Versus Per-Share Worth October 28, 2025—In just over a week, Tesla shareholders are scheduled to meet virtually and at the company’s headquarters in Austin, Texas to decide on corporate governance and a $1 trillion incentive package for CEO Elon Musk.Shareholders are voting up until the end of the day November 5 in time for the annual meeting the following day. Front and center of the decisions this year is a generous pay package for Musk worth $1 trillion over the next 10 years. Politics Hurts Brand, Shareholder Activists Say The proposal faces a pushback from a coalition of shareholder and public interest groups under a banner called “Take Back Tesla.” It includes groups like Public Citizen, Stop the Money Pipeline, Ame...
Consumers Likely to Pay Two-Thirds the Expense Cost of Tariffs, S&P Says
Global Economics, Global Trade, Types of News: Brief

Consumers Likely to Pay Two-Thirds the Expense Cost of Tariffs, S&P Says

Companies Face $1.2 Trillion Cost Shock in 2025 October 24, 2025—Businesses are facing a $1.2 trillion tariff-related expense burden this year, and companies are likely to pass on two-thirds of some costs to consumers, according to S&P Global. S&P Global evaluated estimates from 15,000 sell-side analysts for its report, “Margin Math: A $1.2 trillion expense propagates through supply chains in 2025.” Overall, across the global equity market, which represents roughly 9,000 public companies worth $130 trillion, companies are expected to face a $1.2 trillion cost shock due to higher tariffs. At the company level, firms face an expense shock of $907 billion. Firms are likely to pass on part of the burden—an estimated $592 billion—to consumers. Meanwhile, companies are likely to...
United States: The Big, Beautiful Bond Drop
Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief, United States

United States: The Big, Beautiful Bond Drop

Trump Budget Plan Prompts Rating Drop And Loss of Confidence in Treasuries May 21, 2025—The bond markets for long-term U.S. Treasuries spoke clearly on Wednesday, and it wasn’t pretty. The 30-year Treasury yield rose to 5.096 percent as bond dealers sold off U.S. long-term debt holdings. The bond markets underpin a country's economic stability. Volatility in government bonds can impact politics, as it did in the United Kingdom under the short-term leadership stint of Liz Truss. Now, President Trump is testing the limits as he pushes forward a multitrillion-dollar budget plan for the next 10 years. Trump and House Republicans call it the tax cut and budget plan the “big, beautiful bill,” but today, the bond markets signaled their displeasure. Furthermore, the Financial Times warned...
Senate Stablecoin Bill Would Give Crypto Some Credentials
Finance, Banks, Cryptocurrency, Metals, Types of News: Brief, United States

Senate Stablecoin Bill Would Give Crypto Some Credentials

JP Morgan To Add Bitcoin Buying Options May 20, 2025—The Senate is debating a bill to regulate the stablecoins—a token used to purchase cryptocurrencies. Passage of the bill would mark a significant legislative victory for the cryptocurrency industry. Crypto is now quickly emerging from its reputation as a volatile and speculative venture into one that carries legitimacy. The GENIUS Act S. 1582, the GENIUS Act, would establish a comprehensive federal regulatory framework for the industry. It would provide some consumer protection and regulatory clarity. Specifically, it would: Require stablecoin issuers to maintain reserves in U.S. dollars, demand deposits, or short-term Treasury securities. Provide a federal regulatory framework in place that includes the Federal Reserve a...
DOGE Whistleblower Cites Breach of Sensitive U.S. Business Data
Big Tech, Digital Economy, Corruption, Bribes, Illicit Finance & Money Laundering, Types of News: Brief, United States

DOGE Whistleblower Cites Breach of Sensitive U.S. Business Data

NLRB Breach Impacts Labor Cases, Proprietary Information April 16, 2025—A U.S. federal worker came forward this week as a whistleblower against the Department of Government Efficiency, DOGE, the broad-reaching initiative President Trump created with an executive order on his first day of office. The whistleblower, Daniel Berulis, is an IT worker at the National Labor Relations Board. NLRB is a small, independent government agency tasked with ensuring that private-sector workers have rights such as collective bargaining in their workplaces. Berulis asserts that DOGE employees not only overrode standard security procedures to protect sensitive data, but they also made the system vulnerable to disclosure to a foreign adversary. A federal IT worker Daniel Berulis has informed Congr...
U.S. Household Debt Tops $17 Trillion
Finance, Banks, Cryptocurrency, Metals, Types of News: Brief

U.S. Household Debt Tops $17 Trillion

U.S. credit card debt. Photo source: picryl. November 14, 2024--U.S. consumer debt reached a new high in the third quarter of 2024 of $17.94 trillion, according to the Federal Reserve Bank of New York. Mortgage debt accounts for the largest amount, 70 percent, of total consumer debt. Compared to 10 years ago, U.S. households owe 55.5 percent more on mortgages: $12.6 trillion today compared with $8.1 trillion in the third quarter of 2014. Mortgages account for the largest share of U.S. debt. Chart: Mohr Media. Data NY Fed. Consumer debt on credit cards and auto loans stood at $1.17 trillion and $1.64 trillion, respectively, rising moderately. It's an 8 percent increase on credit card balances from the year before. As a whole, 3.5 percent of American household debt was in some st...