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Real Estate Investment: Where to Start

One of the most common things you’ll hear when it comes to investing is, “Investing in real estate.”  They all make it sound easy and fun but they don’t tell you how to go about it. They make it sound as if it’s as easy to just buy a house and resell it.  There’s a lot of things to consider if you plan on investing in real estate.

Financial Stage

The first step when you are considering investing in real estate is to know where you stand financially.  Knowing how much financial flexibility you have is key to knowing what opportunities and investment options are available to you for you to be able to invest at a comfortable rate without having to go too far into debt.

Investing Strategies

There are plenty of options to consider when going into real estate investment.  And as much as you’d like to diversify and fill your portfolio with multiple goals, plans, and strategies, you have to start somewhere.  Will you take an active role or not? Are you investing alone, with a partner or more in say a peer-to-peer method? This type of method allows more diversifying and less money, perfect entry into real estate, but may not give you that full control feel.  There are many options out there, and you can always adjust as your income changes over time.

Activeness

When deciding your investing strategies, you’ll also want to decide if you’ll become an active investor or passive investor.  Your investments may not only be limited to your financial ceilings, but you may dedicate your time into being more active in your investments and in doing so, can safeguard yourself a bit better as you will know where the details of where your money is being put to use.

Know Your Market

The market you choose can make a huge difference in the results towards your success.  You want to have as much knowledge about the market you’re investing in. A good starting point is your immediate area for that very reason.  You’ll be able to really sell the location with talking points with specific knowledge of the area you are comfortable with. If prices start to look too high in your vicinity, leaving the area a couple hours away may give you better, more affordable and profitable prospects.  Looking at smaller niche markets can also be profitable if you remain in cities with high market prices.

When analyzing the market of your choice, there will be key factors to look out for that you’ll want to have a good knowledge of the following.

  • Jobs in the area
  • Population size and demographics
  • Rent and price of other local listings
  • Education
  • Crime and safety
  • Convenience and distance of necessary needs like grocery stores and clinics
  • Public transport
  • Neighborhood aesthetics

Investment Targets

Once you know the area and niche you’d like to invest in, you can set a more specific target of the type of investment you’re looking for.  This would involve things like the type of property you’ll be looking into (house, condo, apartment, how many rooms, surrounding neighborhoods, amenities, size, etc.) as well as the price range of the place you are looking to invest.

Build Your Team

You’re going to need a team of people when looking into real estate investments.  This can and will range in terms of size and what each team member’s role is, but all will play an important part.  The people you will have within your circle will be partners, mentors, advisors, lawyers, accountants, home contractors, etc.  Make sure you have built, and continue to build, a team that you can rely on and trust.

Financing and Payments

You’ll need to learn what the best method of financing will be for you as you continue real estate investing. Advanced training, like Entry Education finance courses, can help you with this. There are many options from bank loans to private lenders, so you may have to adjust how you finance as you move from project to project, as different factors may influence which method works best.  And as much as you are getting on your loans , you’ll need to be prepared to put some money down in case anything were to happen. In such a scenario, you have to be prepared through your savings, ready to liquidate assets to cover costs, or communicate with business partners and investors from your circle.

Due Diligence

Once you are prepared financially, and have your targets, you can start treasure hunting for your big real estate investment.  Opportunity doesn’t always knock, you have to be the one out there going door-to-door, and you might just have to do that literally.  Make use of that circle you’ve built, don’t be afraid to use every resource you have. The best deals to be had are the ones not everyone is willing to work for.  

As you move through your real estate investing career, have patience and structure.  Stay organized as there will be a lot to handle, but remember to be patient.  It takes time to build a home, it takes just as much time to buy and sell it too.

How Billing Can Be Made Hassle-Free

The process of billing clients or suppliers has always been an issue for most businesses. Some of the old methods have been tedious and annoying, which is why it’s best to utilize the easy, quick billing methods that save time and increase productivity. You need to invest in these new automated tools and subscription management software methods that can make it a hassle-free task.

Here are the different ways for you to achieve just that when it comes to billing. 

 

Proper Optimization for Billing Times

Many companies don’t realize that delays in transactions occur because they’re sending their invoices at the wrong time; this can hinder the billing process significantly and you will lose a lot of time. You need to ask yourself when’s the best time to have them sent out, and the answer depends on what type of projects you’re working on and how to get people to pay you faster. Some companies take the monthly approach to send them out, where you send your invoices out on the first day of each month. 

Other companies send out their invoices weekly or fortnightly; you will need to choose the weekends as the best time if that’s your plan. The main purpose here is to optimize your billing times based on your plan. You will see some excellent results and receive payments faster and improve your cash flow by at least a week. 

 

Save Time With Templates 

Generating invoices can take time, precious time that can be used to do something better for the good of the company. Not only does it take a long time, but it also increases your chances of mistakes or unsent invoices. This is why the templates from Digital-Invoice-Template.com can be generated in a few minutes or less to send to your clients with minimal mistakes, getting your payments back a lot quicker than other methods. You can customize it all to make it relate to your company, making sure it has every detail written correctly. You will save a lot of time and your staff can focus on their other duties which will benefit your company, making things run smoothly. The process won’t be a hassle to deal with at all.

 

Minimal Errors Is Key

When invoices are received with errors or missing information, it means payments will not be made and the process will have to delay the continuation of any pending projects because of it. Not to mention that there will be a lack of trust between your company and its clients, making you do whatever it takes to build that confidence in them again. You need to start reducing the number of people needed for producing quotes; this can be done through helpful billing software programs that can compile all the information and data needed automatically. You need these automated features to get the right quotes, costs, billable times, and a lot more. The software makes minimal mistakes and can get everything for you done with just a click of a button, making the process completely hassle-free.

 

The Features of The Perfect Billing System

The best system put in place will have automatic reminders sent to your suppliers or clients. This helps speed the process along and you will receive payments faster. Also, when your system starts generating informative reports that are easy to read, you’ll have an easier time accepting the payments securely and efficiently. Proper software would have recurring payments, making you not repeat the same process multiple times; this saves time and effort.

We are living in a digital world, so this system must be synced to all your devices and not just your office computer. This allows you to manage things quite effectively and you will be notified quicker regarding any issue or reminders. It will keep you on track of everything so you won’t get lost; having the ability to track invoices, names, payments, transactions, and due dates can make everything easier and cost-effective. The whole process won’t seem tedious or difficult to manage anymore.

You can say goodbye to delays or mistakes thanks to these modern methods. Every company should adapt and change if they want to compete properly and survive. Getting past the problems that come with the billing process can mean a lot to your company’s operations. People will be billed faster and you will get paid on time, making projects carry on without any setbacks and your business can grow and get new prospects. In this day and age, all companies need to shift to automated billing because of their immense benefits. 

Why You Need to Hire a Life Insurance Advisor

We are living in a world where anything could happen, good or bad. It’s important to have various insurances that can protect you, your family, and your assets. You have plenty to choose from, but the most common one is life insurance. There may be some doubts that make people not consider hiring a life insurance advisor, but it would be very beneficial. 

There would be no point in just saying it directly, so here are some reasons why you should hire one:

 

They will be reliable 

If you’re in the process of researching and checking different policies, it would be great to have someone that has all the information you need and is just a phone call away. Finding someone in the insurance field that is eager to help and shows reliability can be a great benefit to you. 

They can be easy to find whenever you want to ask questions and they will be there to answer everything. Every field is hindered if finding representatives to talk to about concerns or to get some information is difficult, but that wouldn’t be the case if you found an advisor that will always make time for you whenever you need assistance. You can rest assured that they would guide you to a safer life.

 

They have vast knowledge

Not only do they have lots of experience with customers and how to deal with them, but they can also direct you toward the right policy that is best for you. Even if it isn’t related to life insurance and you’re interested in other policies related to home insurance, they will still know a lot of information that you need for home insurance options that can prove beneficial to you in case something bad happens. The idea behind both insurance types are similar because they both focus on protecting people; this protects your home and if someone got injured inside it, while, life insurance protects the people you leave behind when you pass away. 

They can explain the conditions of when you’d get paid, whether it was because of damages, loss of property from theft, or extreme disasters, physical injuries because of negligence, and a lot more. They would clarify and make a case for the importance of this type of policy along with your life insurance, helping you keep your loved ones safe and protected. The agent would give you the best advice on what to get and how to get it for a fair price.

 

Honesty is key

When your advisor shows integrity, it can make you trust them more and you’d consider their advice a lot more often. The honesty the agent shows you means they care about your well-being more than getting you to sign a policy; they would tell you that life insurance isn’t the only policy needed. Even though it’s not their department, they would still recommend that you’d get health insurance.

They would explain how it can work well with life insurance because it would cover parts of medical bills and visits to the doctor, saving you a lot of money in the process. This helps you keep some of that for later for your children’s inheritance. Your advisor can assure you that their policy would keep your children safe, but they will still be honest enough to teach you how to save money through other insurance policies.

 

The technicalities behind payments and legal aspects

This is another amazing benefit you can gain if you hire an insurance advisor; it’s not just enough that they know how to guide you in purchasing the best policies, they also explain to you how the payment process works and what other legal aspects you should consider. A good agent will tell you about the taxes involved and prepare you for it, making you know beforehand and keep you in the loop on how the system works. Your advisor would explain how it’s put in place to match your financial situation, so they would never put you in a position where you can’t pay. They would give you payment plans that you can live with.

The idea behind hiring a life insurance advisor depends on your situation and financial state; you might benefit from specific policies while others might prove less beneficial. You just have to figure it out with the help of your insurance advisor, whether it’s for life insurance or anything else. You need an agent that can go above and beyond to help, giving you all the information you need and explain it all to make it simple for you. 

How Does a DWI Negatively Impact Your Life?

Most people understand that a DWI charge is not good news – but many underestimate the ways in which a conviction will negatively impact their lives.

The only way to ensure that a DWI charge does not end up affecting your finances, your freedom, and your career is to ensure that a good DWI lawyer gets you off the charges, such as the attorneys at Trey Porter Law.

While penalties do vary from state to state in the U.S., be prepared for the following negative consequences.

 

A real possibility of jail time

While first offenders are unlikely to serve jail time, you may be forced to spend a day or two behind bars, depending on the state you are arrested in.

Increasingly harsher penalties mean that offenders are taught a lesson with a mandatory one or two days (often at the weekend) in prison.

For repeat offenders (even for a second offense), a custodial sentence is more likely and even mandatory in some states. It could mean weeks or months behind bars – more if there are aggravating circumstances. This is why it is important to spot the signs of alcohol abuse early on and get the necessary help.

 

A hefty fine

A DWI conviction will almost certainly come with a hefty fine to pay (in addition to court costs), regardless of the state you’re charged in.

Even for a first-time offense, this can be thousands of dollars – maximums and minimums usually apply.

However, with aggravating circumstances such as damaged property or a child being in the car, these fines will be higher.

 

Loss of driver’s license

In some states, your driver’s license may be suspended while you’re still on the side of the road talking to the arresting officers – if you refuse a field sobriety test, for instance.

Whether or not that happens, a conviction will certainly see the loss of your license for at least a year – perhaps more. Again, the length of the driving ban is likely to increase with the number of DWI convictions.

Some states offer a “hardship license”. This allows you to drive to work or school even if your license is revoked or suspended – but with very limited driving privileges. 

 

Use of an ignition device

The ignition “interlock” device is a popular tool used by the courts to prevent people from operating a vehicle while under the influence of alcohol.

Even first-time offenders can be ordered to install it.

The device conducts an alcohol breath test and ensures that if you have been drinking you cannot drive the vehicle. Additionally, if alcohol is detected, the authorities will be alerted and you may face more problems.

Note that you will be liable for the considerable fees associated with installing the device.

 

Paying for probation 

Probation is preferable, of course, to a jail sentence.

However, some people don’t realize that the costs of probation (for instance, the monthly administrative and supervisory costs) must be met by the defendant. 

This is another cost to be borne as a result of a DWI.

 

Drink-driving awareness education

Often, as part of a more lenient sentence handed down by the judge, people convicted of DWI are ordered to attend drink-driving awareness classes.

Most states also require people to attend classes in alcohol and drug education before their license and driving privileges are returned. 

You must pay for these classes out of your own pocket and they may last for many hours in total – again impacting your finances and your freedom.

 

Your employment prospects

Even a DWI charge can result in consequences with your employer. 

If you are convicted, it is almost certain to impact your working life – whether you commute to work or rely on a vehicle to perform your job (traveling salesman, delivery driver, etc.).

For others, the negative reputation that may come with a DWI conviction can be difficult to bear and cause stress for you as an employee.

You may also have to disclose your DWI as a criminal conviction on future job applications –severely jeopardizing your chances.

 

Educational prospects

Higher education institutions may check criminal records before awarding scholarships. 

If you have a DWI showing on your record (particularly if there is more than one), it can preclude you from earning a scholarship even if you are a star student – or it can even mean you lose the scholarship you have already been awarded.

 

The higher cost of auto insurance

An SR-22 is a special insurance policy for people classed as “high-risk”. 

As a DWI offender, you will be classified in this bracket, meaning your premiums will be considerably higher (double or triple), adding again to the long-term financial burden of a DWI.

This insurance will usually be required for three years and your choices of policies may be very limited.

 

A potential civil lawsuit

If your DWI caused death or injury to another party, there is the real prospect of a civil lawsuit in addition to the criminal charges and the feelings of guilt you must live with.

This can have further life-changing consequences, requiring payment of damages and a lengthy court process that can negatively impact your life in many ways.

 

Short and long-term impact on your life

The fallout from a DWI conviction is serious and can be catastrophic in some cases.

It can impact your immediate future and further ahead too, affecting not only you but those around you. 

The mounting expenses, restrictions of freedom, and detrimental effects on your career make it essential to seek an experienced attorney as soon as possible after being charged with DWI in the U.S. 

5 Questions to Ask Your Divorce Attorney at Your First Consultation

When you’re in the early stages of a divorce, an experienced and results-driven divorce attorney can be the difference between a settlement that allows you to move on with your life in relative freedom and one that holds you back.

Many family lawyers offer a free initial consultation as a first step. Our attorneys at Sean Smallwood P.A. give you a breakdown of what should you talk about during your first consultation. 

Whether your first consultation is complimentary or not, it’s important to ask the right questions of any divorce attorney so that you can be sure that you’re heading along the right path with professional legal assistance. 

To help you prepare for your first consultation, we’ve narrowed it down to five main questions you should ask.

  • How long have you been practicing divorce law in this state – and what results have you achieved?

Let’s start by establishing two important credentials: experience and results.

It’s important to establish these early on as most people don’t want to entrust their future to a novice lawyer just out of law school – especially if their spouse has just hired experienced representation.

You firstly need to ensure that your attorney specializes not only in family law but specifically in divorce law in your state. Divorce laws vary from state to state and can impact key elements of the settlement, such as child custody, etc.

Next, check that the attorney has the required experience and a good track record for their clients.

Disputes are common in divorce settlements. Ensure that your attorney has a strong background in conflict resolution and acting in the best interests of clients. This usually comes with experience.

A seasoned divorce attorney may offer more creative solutions than a newcomer and may have handled similar cases in the past.  This often provides extra insight into how your case will go.

Your attorney should be able to point you towards testimonials and reviews from previous clients that confirm the types of results that they claim.

  • How will you and your team approach my case?

How does the attorney prefer to work?

During the initial consultation, you should get a feel for how your attorney will approach and prepare your case: get to grips with both the internal processes of the law firm and the local court processes that must be navigated.

Ask questions to understand exactly how they will approach the divorce and the standard steps they take to teach a resolution.

The last thing you want is an attorney who will string out the process and make it longer than necessary.

Look for an attorney who is prepared to collaborate with your spouse’s attorney, mediate if there are disputes, and work towards an amicable settlement – rather than heading for litigation in the divorce courts.

Litigation is sometimes necessary to secure a client’s best interests – by all means, hire an attorney who is prepared to go into battle for you.

However, a contested divorce can add many months and many thousands of dollars to a settlement. For this reason, it is usually the best option only as a last resort, when all other avenues for a collaborative agreement have been exhausted.

  • How long is my divorce likely to take?

During the first consultation with your divorce attorney, you should be asked plenty of questions too.

Your answers to these will help the attorney gauge how long the process will take.

Much, of course, will depend on whether the divorce is contested or uncontested. Even if it is uncontested, the potential for disputes over typical issues such as child custody, child support, spousal support, and division of property still exists.

In almost all cases, divorces take at least 6-8 weeks. Your attorney is likely to point out that if there are no disputes, it should be a relatively simple process and the judge should sign the divorce order without any delays.

Disputes and complications always create delays and your attorney may be able to assess the estimated time it will take after meeting you – but their assessment will be more accurate after they have also met with your spouse’s lawyer.

  • What exactly will I be charged for?

It’s important to understand the fee structure that your attorney will apply for work on your case. Different firms apply different structures.

Be sure to get to grips with all potential costs so that there are no billing surprises at the end of the case.

For instance, is a retainer required? Also, does the attorney charge for:

  • The initial consultation?
  • Every hour worked on your case – or is there a fixed flat fee?
  • Questions asked and answered by email or by phone?

When divorce proceedings drag on into months, all of these fees will mount up. 

You will probably not be able to get an exact quote from your attorney but an estimate from the start will help avoid too many nasty surprises.

  • What should and shouldn’t I be doing during my divorce?

You will need to work closely with your attorney to achieve the outcomes you want from your divorce.

However, during divorces emotions often run high and you may not be thinking clearly. 

Your attorney should be able to provide more clarity, ease confusion and stress, and show you the way forward.

It helps to leave the first meeting with a clear idea of how to proceed and what not to do (e.g. social media posts that can compromise your position).

What should and shouldn’t you be doing?

For instance, your attorney can help you focus your mind on preparing all the necessary financial information required, such as pensions, joint accounts, credit cards, and investment information.

Most divorces are far from simple – even uncontested divorces – and they are usually a stressful experience for all concerned. 

If you arm yourself with the five questions outlined above, you will leave your first meeting with your attorney with more confidence in the divorce process during the months ahead.

What Happens if an Uber Driver Has an Accident?

Not many people realiㄑze that ridesharing giant Uber was actually once a tiny startup here in the great state of California.

Uber changed the face of how the public gets their transportation needs met. But it is also changing the face of traffic law here in California and around the nation.

Each new ridesharing driver adds one more vehicle to the already crowded roadways. Lyft and Uber drivers are still first and foremost drivers. Just like all drivers, Uber and Lyft operators should have insurance covering their vehicle. Quote radar is a resource to compare prices on Uber insurance. 

As such, statistics tell us the average driver will be involved in one to three accidents during their driving years and ridesharing drivers are no exception to this.

Being involved in a ridesharing accident can be scary, confusing and time-consuming. If you have been involved in this type of auto accident, you may need a ridesharing personal injury lawyer to help resolve your insurance claims payout.

 

What Happens When a Ridesharing Driver Gets Into an Accident?

No one ever wakes up in the morning and thinks to themselves, “I bet that today I’m going to get into a traffic accident.”

And yet this happens to hundreds of people in California every day.

Every time you hire an Uber driver to transport you, there is the risk that driver will get into an accident while you are a passenger in their vehicle.

What makes this doubly difficult is that as a ridesharing passenger, you may not even be paying attention to the roads. And why should you be? You hired your Uber or Lyft driver to do that for you!

So when the accident does occur, it takes you by complete surprise. You don’t know what happened or who was at fault. You may have been talking on your phone or texting or reading or listening to a podcast or even taking a nap.

This is where getting your insurance claims paid promptly can really become a challenge. You will likely need to work with an Uber accident lawyer to get your claims paid and here is why. https://westcoasttriallawyers.com/ca/los-angeles-uber-and-lyft-accidents-lawyer/

 

Traffic Accident Insurance Claims Payouts Are Not Straightforward in California

California is one of only a small minority of states in the nation that administers traffic accident insurance claims payouts using a fault system.

Here, the word “fault” refers to assessing which driver(s) were at fault for causing a traffic accident.

There are three categories of fault:

1. Not at fault.
2. Partially at fault (assessed by percentage).
3. Totally at fault.

Not only will California’s choice to use a fault system potentially delay your insurance claims payouts, it could even put you in the position of having to pay out of pocket for your own property and medical damages!

 

Why You Need a Ridesharing Accident Lawyer to Handle Lyft Accident Claims

Ridesharing giants Uber and Lyft each carry a $1 million auto insurance policy that supposedly protects passengers in case any of their independent contractor drivers are involved in an auto accident.

This has been all over the news as of late and many ridesharing customers think this means they are automatically protected no matter what may happen while they are receiving a ride from a driver.

But this is not always the case here in the fault state of California.

 

Ridesharing Drivers Operate in Three “Periods”

A ridesharing driver can be in one of three so-called “periods” when they are behind the wheel of the vehicle they use to work for Uber or Lyft.

These periods are very important to know for auto insurance claims payouts.

Period one

Period one is when the ridesharing app is powered down. The driver is using the vehicle for personal reasons and is not seeking a passenger.

If an Uber driver has an accident that involves you, but they are in period one, the only recourse you will have for claims payouts is whatever personal auto insurance policy that driver may have elected to carry.

Sometimes the driver may not even have any auto insurance, in which case you will have to take action with the help of a personal injury lawyer to try to recover your expenses.

Period two

Period two is when the driver has powered on the ridesharing app. The driver is using the vehicle to work for Uber or Lyft and is actively seeking a passenger.

if an Uber driver has an accident during period two that involves you, then there is a much more limited auto insurance policy that may potentially cover any claims arising from that accident based on how California assesses fault for the purposes of claims payouts.

Period three

Period three is when the driver has accepted a passenger request. The driver is either en route to pick up their passenger or is driving their passenger to their desired destination.

If an Uber driver has an accident while in period three that involves you, this is the only period which is covered by the full $1 million dollar auto insurance policy that Uber carries.

But here again, access to that policy is going to be governed by assessment of fault for the purposes of auto insurance claims payouts.

 

What If the Uber Driver Is Declared Not At Fault?

This is one of many complications that often triggers a call to one of our experienced ridesharing accident lawyer team members.

Remember, California uses the fault system to administer traffic accident auto insurance claims payouts.

Insurance companies have claims adjusters who will assess percentage of fault. No insurance claims adjuster ever wants to have to tell their boss that their driver was declared at fault. So this battle can rage on for weeks or months as adjusters argue over who was at fault for causing the accident.

Meanwhile, if you sustained personal injury or property damage as a result of a ridesharing driver’s accidents on the road, your life is on hold while you wait for your claims to be settled and paid.

Even if the ridesharing driver is declared at fault, you can be sure the insurer (in this case, Uber or Lyft) will fight that declaration to avoid having to make a payout and watching their stock values plunge.

Working with an Uber accident lawyer can level the playing field and help you get your claims payout process moving forward again.

With ridesharing accident cases in particular, it is important to choose an experienced California traffic law attorney who is skilled at interpreting fault-based traffic law statutes and applying available precedents to expedite your claims payout.

 

Have You Been Hurt in a Ridesharing Accident? West Coast Trial Lawyers Can Help!

Ridesharing traffic law is a very new field and every single case can potentially change how all future insurance claims are processed and paid out.

Because there are very few legal precedents for traffic court judges to use for guidance, the ridesharing accident lawyer you choose is going to be vitally important to the outcome of your claim.

Have you been involved in a Lyft or Uber accident as a passenger or a bystander? Contact West Coast Trial Lawyers today to schedule your free no-obligation consultation with a skilled and experienced Uber accident lawyer.

How Failed Int’l Cooperation Amplifies Virus Damage

By Dan Steinbock  

As the downgrades of the economic outlook for US, China and worldwide are about to begin, the virus outbreak may be steadying. Sadly, much of the economic, xenophobic and virus damage stems for lagging cooperation.

 

At the end of January, United States declared the 2019 novel coronavirus acute respiratory disease (nCoV ARD) an “unprecedented public health threat” followed by preparations “as if this were the next pandemic.” The unilateral action went against guidance by the World Health Organization (WHO).

Thanks to sensationalist media, the move also unleashed fear across America at the peak of the domestic flu season. Some 22 to 31 million Americans have already been infected with the seasonal flu, requiring up to 210,000 to 370,000 hospitalizations and causing 12,000 to 30,000 deaths, according to the CDC. As the Trump administration is preparing a $4.8 trillion budget with big safety-net cuts, it is focusing public attention on the virus outbreak.

Instead of a focus on the epidemiological facts, international headlines have focused on the expected “pandemic,” resulting in pressure campaigns against the WHO and an avalanche of xenophobic anti-Chinese incidents. The net effect will reverberate in downgraded economic outlooks in China, US and worldwide.

Here’s how it happened.

 

Rising number of cases, rapid outbreak deceleration        

Even reputable media has contributed to misunderstandings. On February 4, New York Times reported: “Deaths in China Rise, With No Sign of Slowdown.” The first part of the sentence was true, but the second was misguided. In reality, the daily increase of new virus cases in China had just started to decelerate, while the pace of accumulated cases had been decelerating since mid-January.

With the new coronavirus, there are now (2 pm Wuhan time, Feb 11) over 42,600 confirmed cases worldwide, while the number of deaths is more than 1,000. If the current pace prevails, the former figure will soon exceed 50,000, while the latter may climb to 2,000.

And yet, the number of the confirmed cases and deaths has remained relatively low – less than 500 and only 2, respectively – outside China. While these numbers will continue to increase, the low starting-point suggests that China’s costly and draconian measures may have saved many lives within and outside China.

Moreover, the pace of the contagion is changing. The relative increase of the accumulated cases has decreased since mid-January. While the pace peaked at almost 100% after mid-January, it has declined to zero and below (Figure 1a). In turn, new cases increased steadily from mid-January soaring to almost 3,900 on February 4. But since then the numbers have fallen below 2,600 – from daily increase of almost 350% to zero and below (Figure 1b).

Figure     Rising Accumulated Numbers, Falling Relative Rates

(a) Daily Increase of Accumulated Cases, Jan 10 to Feb 9, 2020

 

(b) Daily Increase of New Cases, Jan 10 to Feb 9, 2020

 Source: DifferenceGroup. Data from China’s National Health Commission

While the data could indicate a possible turnaround in the virus outbreak, there is no assurance that the deceleration will prevail. Since viruses can zigzag, these trends do not justify any complacency. And as the Lunar New Year holidays now end in China, new outbreak clusters are still possible, including outside China. But assuming current trends, we may be witnessing a crossroads – despite politicized international coverage.

 

Instead of virus outbreak, an ‘infodemic’                    

In late January, the World Health Organization (WHO) declared the outbreak a “public health emergency of international concern” (PHEIC) and urged attention to a global health emergency to foster a “coordinated international response.” The PHEIC was not motivated by China, but by the possible effects of the virus, if it would spread to countries with weaker healthcare systems. That’s why WHO has called for a $675 billion initiative to combat future virus outbreaks.

Instead, media hysteria contributed to ugly instances of xenophobia against people of Chinese and Asian descent. On February 2, the misinformation on global scale compelled the WHO to declare the coronavirus an “infodemic,” which “made it hard for people to find trustworthy sources and reliable guidance.”

Worse, WHO leaders were targeted in public pressure crusades, including an online petition campaign calling the WHO chief Tedros Adhanom Ghebreyesus to resign. In reality, Tedros, an Ethiopian public-health pioneer, has adhered to WHO guidelines regarding pandemics, supported research on virus causes and tried to foster member states’ cooperation against the outbreak.

The smear campaign is an ugly déjà vu. Amid the 2017 WHO election, Tedros was attacked for alleged cover-up of possible past cholera epidemics in Ethiopia. The odd allegations came from Lawrence Gostin, US law professor who advised the rival UK candidate (and has resurfaced as a critic of China’s anti-virus struggle). In the UN, the African Union dismissed the allegations as an “unfounded and unverified defamation campaign.” But now the same ugly campaign was back.

In contrast to Washington’s demands for WHO to declare the outbreak a “pandemic,” WHO has a six-stage pandemic classification, which requires a pandemic to be fatal, infectious and international. In the last pandemic, the 2009 H1N1 flu outbreak (swine flu), 150,000-300,000 people died around the world. The current outbreak has caused only two deaths outside China (both linked with Wuhan, the virus epicenter).

Oddly, as international coverage focused on China’s alleged conduct, which WHO mainly applauded, it ignored the actual conduct of other states, despite Tedros’s news bomb on February 4. It was not China, but countries outside China that had proved slow in sharing complete information about cases. Despite weeks of crisis and global health emergency, more than 60% of five member countries had failed to provide complete case reports to WHO.

As international cooperation lagged and precious time was lost, economic consequences have grown more severe.

 

Impact scenarios

After a month of the virus outbreak, three economic scenarios prevail. In the “SARS-like impact scenario,” a sharp quarterly effect, accounting for much of the damage, would be followed by a rebound. The broader impact would be relatively low and regional. The impact on annualized growth would be tolerable.

In China, the 1st quarter would be penalized by a 1.2% reduction to about 5% or less, while the 2nd quarter rebound would offset much (but not all) of the losses. U.S. growth could suffer a 0.4% slowdown of the annualized growth. In Japan, growth would fall closer to 0%. Due to supply chain disruptions, South Korea and Taiwan would take heavier hits. In Hong Kong, the outbreak will extend the technical recession into the 1st quarter. In Southeast Asia, downgrades would reduce growth closer to 4%. Annualized global growth would fall closer to 3.1%.

In the “extended impact scenario,” the adverse impact would last at least two quarters until early summer. In this case, the broader impact would be more severe and have an effect on global prospects, with rebound in the summer. The reductions in the US, China, and Japan would have a significant adverse impact in Asia and the global economy.

In the “accelerated impact scenario,” adverse damage would be far steeper, while a rebound would ensue only toward the end of the summer. The impact on annual growth would prove very significant, with dire repercussions in the global economy.

Today, consensus projections vary between the SARS-like and extended impact scenarios. If we are witnessing a sustained turnaround in new virus cases, there might be some reason for such hopes. Yet, international media coverage, pressures against WHO and lagging international cooperation indicate non-economic forces are fueling economic forecasts, while the risk of the extended impact scenario has increased. Finally, the accelerated impact scenario would undermine most of the post-2008 recovery with severe consequences to global prospects.

No virus outbreak will go by without adverse economic effects. But some of the impending damage could have been reduced with appropriate international cooperation.

About the Author

Dr. Dan Steinbock is an internationally recognized strategist of the multipolar world and the founder of Difference Group. He has served at the India, China and America Institute (USA), Shanghai Institutes for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net

The original commentary was released by China-US Focus on Feb. 11, 2020

7 Financial Laws You May Not Know

There are different laws and regulations governing commercial banking, capital markets, insurances, and investment sectors. Various laws are put into place to keep people and businesses safe, some of which play an integral part in the formation of global economies and legal transactions. 

So, if you want to learn more about the repercussions and implications of some of these laws, here are 7 of them that you might not have heard of before.

 

Multiple IRAs

You probably thought you can only have one individual retirement account, but that’s not the case, thanks to this law. You are allowed to have more if you happen to already have a 401(k) plan, which is then rolled into a traditional IRA. Sometimes, people can even do this if they have an old Roth IRA from before. In most cases, people inherit one, even though they had one of their own. However, in all cases, your deposits are subject to the annual maximum limit of $6,000 and $7,000 for people over 50 years of age.

 

Suing your employer after injuries

Another thing that a lot of employees—especially those who were victims of a workplace accident—don’t know is that you can still sue your employer even after collecting the workers’ compensation benefits. This is why you need to read more about how a skillful attorney can notice that something was wrong with your case. With their help, you could get a better compensation deal. Many people don’t understand their rights, so it’s a good idea to hire an experienced professional to guide you through the process. The law states that if the accident happened because you were performing a task outside the scope of your job description, or if your employer acted with malicious intent, then you may still have the right to file another lawsuit.

 

Plausible deniability with insurances 

A lot of sectors in the world have different insurance plans, but sometimes, the people within the confines of a transaction or company do not realize that they are doing something illegal. This law states that if you’re dealing with money—whether in the commercial or banking sectors—and there have been some irregularities that you missed, you won’t necessarily be in trouble or taken to court because it would be considered unactionable. This means that you may not be subject to any legal liability.

 

Handling debt collectors

When you’re in a position where you have a debt to pay, some companies may not directly receive it or ask for it. Most companies just hire a third-party debt collector to do it. Sometimes, this can get messy or turn out to be a hassle. However, there are laws that allow you to send them a written cease and desist letter or sue them if they have been violating your rights in any way.

 

Liability insurance laws for indemnities

Indemnities are common in many different contracts, especially in the retail sector. People who create products or big brands that manufacture and sell them need a guarantee that they won’t go bankrupt if a product causes harm or gets recalled for any reason. This means that legal costs should be on the Indemnitor and not the indemnitee, making this point a must-have in any contract between the two parties, in case any problems arise.

 

Using your home equity for various payments

Not many people know this, but you’re allowed to refinance your home and take cash out of it whenever you want. This means that you’re giving away ownership to the creditors or insurance company, but you might find yourself paying a lot more than what the home is worth, even if the law permits it.

 

Overdraft protection laws

If you withdraw money from a bank and the remaining balance goes below zero, then this is considered an overdraft and causes a lot of problems. But luckily, you have laws that help you pay it off with funds through different courtesy pay programs. This includes electronic transfers, ATM withdrawals, debit card purchases, and checks.

It’s important to understand these laws ahead of time; you don’t want to get yourself in a tough situation that you can’t get out of smoothly. Of course, you should do your best not to violate any financial laws, but luckily, there are regulations that protect people who do that unknowingly. The system is designed to be fair, so as long as you make sure that every financial activity you carry out is within the confines of the law, you can rest assured that you’ll be safe. 

Cybersecurity – Maximising KYC to eliminate the vulnerability of online fraud and build customer engagement.

As payments and online engagement continue to expand, as do our global fraudsters.

We are massively in a realm where digital experiences and transactions are now just a part of our DNA. Some would state that we are in a predicament where digital identities have equal to if not more, bearing on statue than physical selves. In the recent Global Digital 2019 Report reveals that internet users are growing by an average of more than one million new users every day since January 2018 and an expected annual digital growth of 9.1%

From these internet users, 2,818 Billion people worldwide engage with eCommerce. In 2018, one in every ten dollars spent globally was spent online, with an expected spend growth of 14% year-on-year to hit US$4.5 Trillion in 2021. By 2022 online sales will make up 17% of all global consumer sales.

With all this growth and more and more customers engaging online storing card and personal details, inevitably brings more risk. Fraudsters are relentless in their maneuvers to attack customers intangible selves and businesses worldwide from their hard-earned established customer trust, brand loyalty and revenues. Fraudsters highly victimize the elderly as customers who are an easy target for fraudulent schemes.

 

Global online payment fraud – it’s a major concern.

Payment fraud is already a billion-dollar entity, and it’s rapidly growing as our financial technology continues to advance online as do our fraudsters, presenting a top concern for 44% of financial professionals. Juniper research stated that online sellers will lose $130 billion to online payment fraud between 2018 and 2023 with an average online payment fraud costing global businesses 1.8% of revenue and for every $1 of fraud from chargebacks, companies lose an extra $2.94.

With most people engaging online for 50-80% of their waking hours, how do they bring security and confidence to their digital identities and online purchasing transactions? How do businesses globally circumvent the ever-changing vulnerability to the continued development of sophisticated fraudsters, bots, and large-scale data-breaches?

In the last year alone, we have seen a substantial increase in cyber-attacks, where security breaches increased 11% in 2019 from 2018, and within the first half-year of 2019, 4.1 billion records were breached – utilising this captured data to assist in one of the fastest-growing identity theft methods of account takeovers. Where in 2018 it tripled from the previous year, reaching a four-year high and experiences losses of US$5.1 Billion.

Fintechs; payment companies, banks, eCommerce sellers, digital currency platforms, investment platforms, are proving to be committed to not only the innovation of financial technology, seamless and advanced customer experience but in fraud detection and prevention technologies. Gartner has stated that globally cybersecurity will reach US$133.7 billion by 2022. Global regulations surrounding payment services are also combatting the threat of online security and fraud; constantly adapting regulations per localised jurisdictions and globally to ensure appropriate regulations instilled to serve consumers digital identity and businesses operations.

For payment providers in Europe, the revised PSD2 regulation will instill Strong Customer Authentication (SCA) where the consumer can further identify their intangible self with their tangible biometric components; bringing security to their identity and transaction.

 

Businesses need to truly identify digital identities for all customer touch points.

Business leaders worldwide are rethinking their online strategy, syncing with leading technology developments and adapting their business mantras with dynamic decision-making intelligence for the best layers of defence and continued growth of consumer trust and loyalty with their brand.

One of the critical mantras these businesses are implementing is a wide range of Know Your Customer (KYC) tactics throughout their entire customer journey. With KYC Compliance from Acuitytec.com, businesses can safely process payments, establish trust with customers, and comply with regulations. Implementing KYC above and beyond regulatory requirements and will include a combination of the following:

  • Knowledge-based: Using specific security questions to verify identities
  • Documentary-based: Using technology like machine learning and AI to assess the authenticity of various government – issued IDs
  • Biometrics-based: Uses a person’s biometrics such as fingerprints, voice, and facial characteristics to verify a user’s identity
  • Database reference-based: References multiple databases like credit bureaus and even less formal sources such as social media for verification purposes.

For many businesses, onboarding customers in a verified manner may bring the risk of friction and loss of engagement if the required verifications at an entry-level are too vigorous. 75% of businesses want advanced authentication and security measures that have little or no impact on the digital customer experience. In our ever-evolving Fintech innovations, companies can harness methods and intelligence to circumvent KYC friction.

One method to maintaining low KYC friction at the point of entry it to implement pre-screening KYC verifications in the onboarding journey. Which allow the costs associated with KYC performance to remain low, and identities are quickly verifying through risk analysis against basic KYC checks.

These pre-screening KYC verifications may include:

  • Email Verify: Address & Domain Intelligence, Age, Reputation & Validation
  • Device ID Intelligence: Java-Based, Hardware Fingerprint, Granular Device Details & Reputational Data
  • Phone ID: Geo Location, Phone Type, Phone Carrier

 

Following businesses can quickly expand more rigorous KYC checks, including document identity verification or biometrics at various touchpoints of the customer engagement where it is deemed more applicable or required through compliance. While designing their KYC experience with intelligence like cascading verification logic to maximise data performance, and minimise overall costs and continued frictionless experience on the customer’s verification process.

 

Maximising revenue retention and customer lifetime value through ID verification.

Building trust through technology without disruption is increasingly the goal, but also the responsibility of businesses with online channels. While there are substantial barriers to achieving that goal, it is more critical than ever for companies to overcome. Businesses need to look beyond just implementing KYC for compliance and utilise KYC data to enhance customers digital profile, experience and trust.

Lack of visible security is the number one reason customers abandon an account creation or transaction. Nearly two-thirds (66%) of customers appreciate security protocols when transacting online because it makes them feel protected.

If KYC verifications are presented to customers in a manner when they are relevant in their journey as well within a layered cascading approach, the business is acquiring the best data and fraud prevention techniques. The more a business knows about their customers, the more they not only build further trust within their brand but can tailor customers experiences to expand loyalty, improve overall customer lifetime value and obtain revenue retention.

It has been proven that businesses that utilise a combination of KYC verifications in conjunction with real-time fraud prevention technologies can diminish chargebacks by 66 percent in the first two-months and increase authorisation rates by 85%.

 

Implementing an array of KYC without the pain of multiple integrations.

The only way businesses can verify a customer’s identity in real-time is through accessing world-class data and pairing it with automated KYC checks and real-time fraud prevention technology. However, for many businesses implementing a single KYC data service can take months with high costs and drains on internal development resources, which can result in slow to market launches or missed market opportunities altogether.

Many businesses globally are in a constant state of flux as they try and keep up with KYC demands for regulation. Often it is too cumbersome of a process to manage, and the costs and resources required outweighs the benefits of implementing additional KYC regardless of what it could bring to their business performance and revenues.

Data aggregation and global KYC orchestration hub technologies support the high demands our online eco-system is presenting. Hubs like 4Stop based out of Germany and supporting many global Payment Service Providers (PSPs) with access to implement thousands of premium global KYB, KYC data services, data intelligence and anti-fraud technology all from a single API. Utilising orchestration hubs is the most cost-efficient manner to implement and perform KYC worldwide. Allowing businesses to harness the true potential KYC and ID verification brings to their business without any touch on their operations.

Most KYC orchestration hubs stay relevant as our online eco-system continues to evolve, and more and more KYC verification technologies are developed. They are continually updating their data hubs and KYC data services with these advancements. Providing their clients complete peace-of-mind that their anti-fraud technology, compliance management and KYC services are designed and implemented in a future-proofed, fail-safe manner -locally, globally, today and in the future.

Trump’s ‘Red Meat’ SOTU Speech US Political Crisis Now Deepens

By Jack Rasmus

On Tuesday, February 4, 2020, Donald Trump delivered a State of the Union speech that revealed his election 2020 strategy, designed to roil and mobilize his political base, and to declare to the Democrats that his political war with them will now escalate further.

If anyone thinks the recent impeachment and Senate trial was the high point of the growing conflict between the two political parties, Republican (correct that: Trumpublicans now) and Democrat, they haven’t seen anything yet. The worse, much worse is yet to come in the months leading up to the November 2020 elections.

The visual personification of this intensifying conflict was evident during Trump’s speech: As he began speaking Trump turned to vice president Pence and House of Representatives leader, Pelosi, both sitting behind him on a dais. Trump handed them his written speech, as is the tradition. He then abruptly turned away from Pelosi refusing to shake her extended hand—as traditional decorum has always required. Pelosi, shocked by the snub, after Trump finished, in turn symbolically tore up the written speech. All this was caught on national TV. The event was symbolic of the fight will now escalate and get even more vicious in the run up to November.

If Trump’s speech summarized the conflict up to this point, the exchange between him and Pelosi reflected the ‘gloves off’ political conflict now about to begin. As the saying goes, “We ain’t seen nothing yet”!

It is not difficult to understand the true meaning of Trump’s SOTU. Above all, it represents a toss of ‘red meat’ to his radical political base. There was very little in it about what he proposes for the country in the future, as is normal for a SOTU speech. Instead, what we got was a speech designed to agitate and mobilize his political base based on themes of fear (of the immigrant) and hate (of Pelosi and the Democrats). The dish of fear/hate was sauteed with a large dose of lies and misrepresentations and served up with a new recipe of racism designed to help Trump hold on to the swing states that delivered his electoral college majority in 2016.  The speech marks what will be a significant escalation of extraordinary political attacks by Trump and his movement against his Democrat opponents in the election. And if past practice is any clue, the Democrat leadership is likely unprepared for what is to come.

The ‘Red Meat’ to the Base

The speech was replete with what Trump’s base wants to hear, with no punches pulled. Once again, as in 2016, the immigrant is the dangerous criminal and killer. The immigrant is of course anyone of color, but especially Latinos crossing the southern US border, and anyone sympathetic in any way to them or even those already legally here. Trump wants to protect us from the immigrant. And according to Trump’s appeal to this base: the Democrats want to embrace him, protect him with taxpayer money, and thereby identify themselves with the criminal-killer element among us.

In the same breath as he reiterated his politically successful anti-Latino racist appeal, Trump touted his “long, tall and very powerful” wall, claiming 100 miles have already been built and another 500 coming next year. More money for the wall will thus by inference be necessary. Or else we may all suffer the fate of the anecdotal killer-criminal-immigrant, who of course is Latino.

A variation on this illegal (read: Latino) ‘enemy within us’ theme is the Sanctuary Cities movement and, by association, the entire state of California which has declared itself a sanctuary state. Trump spent a good deal of time in his speech attacking sanctuary cities.  In the past, his bete noir was a person (Hillary, Pelosi, etc.) Now it’s a geography, even a state. Watch out California. Trump is about to swing his ax, far and wide, and in your direction!

Trump claimed they were failing everywhere and that every parent should have the choice of sending their kid to whatever school they wanted, and receive scholarship money paid by the taxpayer to send them to a private school of their choice.

Like most demagogues, Trump likes to make his case with anecdotal, emotional appeals. Thus, with a fear-mongering, melodramatic anecdotal example early in his speech he cited a criminal illegal running amuck, shooting everyone in California. That cleared the way for his proposal for legislation to go after Sanctuary Cities, in particular in California. The legislation proposed was the ‘Justice for Victims of Sanctuary Cities’ Act that would allow individuals to sue Sanctuary Cities.  It is clearly a move to open the door for radical elements of his base to protest and engage in even more militant, perhaps even violent, action—not unlike how anti-abortion radicals were encouraged in the past to physically attack abortion clinics and threaten and assault doctors and nurses.

Like all extreme nationalist and proto-fascist movements, there must be an ‘enemy within’ that is identified as the source of the country’s problems—including those who might defend them.

Another ‘red meat’ toss to his base in his speech was his proposal for legislation to bar late term abortions. Still another dish offered up was allowing prayer in public schools, which he followed up with a pledge to increase federal funding to promote it.

Another fresh bone thrown to the base was Trump’s strong endorsement of 2nd amendment gun rights. In contrast, throughout the speech not a word was said about mass killings at US schools or the fact that studies show a shooting and killing goes on in schools in America at least once every day somewhere.

His base was no doubt pleased as well with his solution to the growing climate crisis: somehow business and the public will plant 1 trillion more trees, he proposed. That would presumably create enough oxygen to prevent the oceans from acidifying, glaciers from melting, and Australia and California from burning.

There was also an attack on public schools. Trump claimed they were failing everywhere and that every parent should have the choice of sending their kid to whatever school they wanted, and receive scholarship money paid by the taxpayer to send them to a private school of their choice. Trump touted the ‘Educational Freedom & Scholarship Act’. In one of at least a half dozen examples, best described as ‘gallery melodrama’, he turned to the gallery in the House chamber and introduced a young black girl and her mother, announcing on the spot he personally was giving her a scholarship under the Act.

One of the more disgusting examples of ‘gallery melodrama’, that has become ready fare apparently in these SOTU speeches in recent years, was Trump’s introduction of the right wing radical talk show pundit, Rush Limbaugh.  Long an ideologue of the radical, extreme right who has dished up lies and misrepresentations on a daily basis, Limbaugh was introduced as having stage 4 lung cancer. That was to set up the sympathy appeal, of course. Trump then announced he was giving Rush the Presidential Medal of Freedom. Rush acted surprised. The person next to Rush then immediately pulled out the medal and draped it around Limbaugh’s neck. We’re supposed to believe it was all unrehearsed and spontaneous. Not a dry eye in the gallery. Trump’s message: all you liars and hate mongers on the right out there, you too can become a hero under Trump. Just keep up the good work in the coming election year!

The New Racism Card

Democrats should take note of Trump’s new racism strategy. He clearly is now appealing to the African-American voter—even as he writes off and declares the Latino as the illegal alien threat.

In at least six episodes of ‘gallery melodrama’, Trump’s subject was a black American. In addition to the young girl and her mother, noted above, Trump introduced a black former drug user who became a businessman, enabled by Trump’s ‘opportunity zone’ legislation—in fact a piece of legislation designed to give special tax cuts to businesses in certain cities.  Then there was the black kid who wants to become an astronaut. He was introduced with his 100 year old grandfather, a former Air Force officer, Charles McGee, who served in Korea and Vietnam, next to him. Trump announced he just made McGee a brigadier general. That kills ‘three birds with one stone’, as they say: a kudo to senior citizens, to blacks, and to the military all in one melodrama bundle.  Trump then proposed an increase in funding for black colleges.

In only one, and very brief, ‘gallery melodrama’ episode during the speech was a Latino introduced. Unlike all the black kids and moms, he was a Latino ICE officer. Not as much emotional sympathy appeal there.

See where this is going? Up with blacks; down with Latinos? Split the minority vote.

Why the strange pro-black strategy? A strategy launched, by the way, a few days earlier in his unprecedented election Ad in the super-bowl, where Trump took credit for the bipartisan criminal reform legislation just passed, by showing a middle aged black women crying in relief now that Trump had released her relative from prison. Trump now a defender of African-Americans? A reformed former racist? Trump the declarer that Africans lived in shithole countries?

It’s not that Trump has overnight given up his racist attitude against African Americans. What he’s doing is counting the electoral votes in the swing states. The new appeal to blacks is designed to provide him a margin of extra votes in those swing states, a safer margin in the red states, especially the south in places like Georgia, all to ensure he wins the electoral college votes in those states as he did in 2016. That black vote margin is needed to offset the possible loss of middle class white women in the swing states that are, according to polls, put off by Trump’s aggressive and off the cuff tweets and statements.

Manipulate blacks. Mobilize white nationalists by vilifying Latinos and other peoples of color. Split the minority vote, in other words.

The real picture is that unemployment is much higher and wages are stagnating for the vast majority or worse. But this didn’t stop Trump in his SOTU speech from saying “companies are coming back to the US” and creating jobs.

Trump’s Lies by Commission

As heard so often from Trump, much of his SOTU speech was laden with outright lies. In the roughly one-third of it devoted to the economy, this was especially the case. (Another one third of the speech was devoted to domestic issues and another third to foreign policy).

First there was Trump’s claim that the under him the US economy is “the best it has ever been” in US history. But what are the facts?  Not so in terms of US GDP. Trump’s roughly 2% growth rate today is not that much different from the average since 2000. Nevertheless he said “Families are flourishing”. Oh? What about the more than half of families today who have less than $400 to their name for emergencies? Or the more than half in each of the last two years who say, in polls, they received no wage increase at all in either year? Or what about the tens of millions of millennials and youth indentured with $1.6 trillion in student debt and can’t get homes or families even started?

In the speech, Trump claimed the unemployment rate was the lowest ever. But that’s the so-called U-3 rate which covers only full time workers, whose employment ranks by the way have been declining in absolute terms. It further excludes altogether the roughly 60 million US part time, gig and temp workers. If they were accurately estimated and included in unemployment figures, the true unemployment rate would be 8%-10%.

And what about wages? In the speech Trump repeated the oft-heard statistic that wages have been rising on his watch. But behind that figure lay several deeper facts: first, there’s the more than half of the labor force who acknowledge they received no wage increase at all last year or the year before. That suggests it is the top 10% of tech, professional, and other workers who are getting most of the wage gains. Moreover, the wage figures and gains noted by Trump are an average: if those at the top get more, those at the middle and below are getting less or even nothing. In addition, the numbers are for full time workers, leaving out the 60 million part time and temps. Finally, they’re wages not adjusted for inflation.

The real picture is that unemployment is much higher and wages are stagnating for the vast majority or worse. But this didn’t stop Trump in his SOTU speech from saying “companies are coming back to the US” and creating jobs. Or that this is a ‘blue collar boom’ with wages rising.

Trump also declared in his SOTU that he would protect social security and Medicare. But in his recent speech to the billionaire crowd in Davos, Switzerland he let it slip to the well-heeled in attendance he would be going after both once he won the election again. One wonders which audience he’s speaking the truth of his real intentions to.

In the SOTU he also gave support to infrastructure spending. But his prior proposals define ‘infrastructure investment’ as tax cuts for real estate developers.

He also declared in the SOTU speech that his recent proposals would lower prescription drug prices. But by this he really meant consumers being gouged by the Pharma companies would get to see how much the various drugs were being raised, in order to choose which one that would gouge them less. Market transparency does not mean lower drug prices. Big Pharma is not a competitive market where the consumer can choose among multiple offerings.

An even more outrageous, blatant lie was Trump’s declaration he was giving his “ironclad” guarantee that those with health related, pre-existing conditions would have access to health care–when in fact what he has proposed to date are various measures to roll back pre-existing conditions guarantees.

Trump’s most ridiculous lie was that Medicare was socialist. Here he was obviously attacking the growing support for a Medicare for All solution to the health crisis, increasingly supported both by the public and within the ranks of the Democrats. As he put it, 180 million Americans love their private health insurance. And he promised not to let the socialists take that away, even though it’s quite clear that 70% of the US population is now dissatisfied with private health insurance and want something better.  And if Medicare is socialist, does that mean the 50 million seniors on Medicare and Social Security are socialists as well? Add the millennials and seniors, and America must have already gone socialist!

One of the more disgusting outright lying claims of Trump was his comment that, under his regime, 7 million on food stamps had left the program.  But what he didn’t mention was he and the Republicans just declared 700,000 no longer eligible for food stamp support, including single moms with kids.

Trump’s SOTU: Lying by Omission

Lies may be committed by carefully not elaborating on topics. Here Trump excelled as well in his SOTU speech. For example, he boasted that the stock markets had risen in value by $12 trillion on his watch. But what he didn’t say is that more than $1 trillion every year has been passed on by corporations to investors and stock holders in the form of stock buybacks and dividend payouts. That’s what drove the $12 Trillion, making the 2% of the voters who own most of the stock richer than ever in history.

He then glossed over the recent signed China-US phase 1 trade deal as well as the NAFTA 2.0 USMCA trade deal. he said they were great achievements, but refused to indicate in what sense.  In recent weeks he has declared China would buy $100 billion more in US goods this year as part of that deal. But the fact is China never agreed to that and most economists estimate it will be well less than $50B, and maybe not even that now that the coronavirus is undermining US-China trade.

And so far as the USMCA is concerned, Trump in the SOTU speech reported it will produce 100,000 new US jobs. But even a cursory reading of the terms of that deal show there are no measures designed to bring back jobs from Mexico to the US. In both the trade deals, there’s really ‘no there there’, as economists are now beginning to determine. Both the China and USMCA trade deals are just old wine in new bottles, as they say, corked up with a lot of bombast, hyperbole, and factual misrepresentation.

Missing totally from the SOTU speech was any reference how Trump’s multi-trillion dollar tax cuts for corporations and investors and war spending have driven the US budget deficit in excess of $1 trillion a year, with trillion dollar additional deficits for another decade! In short, unlike all Republican presidents before him, in his SOTU speech Trump said nothing about the accelerating deficit, and in turn the $23 trillion national debt, or how he proposed to address it in the coming year or beyond.

In yet another example of lying by omission, in the speech Trump claimed that low wage workers had experienced an increase of 16% in wages on his watch, but then didn’t bother to explain that most of that was due to the raising of minimum wages by governors and legislatures in the ‘blue’ Democratic states.

Lying by omission means taking credit for things you never did, or were done by others. That’s become a norm for Trump, and he kept up that practice throughout the SOTU speech.

Foreign Policy Fantasies

Trump has had no actual foreign policy accomplishment during his entire term in office. Nothing came of the North Korea deal. He was able to get only a few token European countries, like Greece, to increase their NATO spending a little, but not much. His attempted support for a coup in Venezuela collapsed. (That didn’t stop him by bringing to his speech the US selected puppet, Guido, and introducing him in the gallery). His trade deals produced very little in actual gains for the US ballooning trade deficit. He achieved nothing in Syria or Turkey except to allow Russia to increase its influence in both. And he failed to get Iran to the bargaining table to renegotiate the nuclear deal.

What he did declare in his SOTU speech as victories in foreign policy was his reversal of the Obama administration’s opening to Cuba. His recent launch a new Mideast Israel-Palestine initiative that was dead on arrival. The claim he destroyed ISIS, when in fact it was mostly the Iranians, Kurds, Russians, and Turks that did it. And his declaration that peace talks in Afghanistan to end that conflict were making “tremendous progress”, when in fact a deal isn’t even close.  And, not least, his assassination of the Iranian general, Soleimani, that almost pushed both countries over the brink of war. Not much there in foreign policy either.

The SOTU Message: Domestic Political Warfare

Where Trump has succeeded is in his domestic political war with the Democrats. As he noted in the SOTU speech, he has approved 187 new Federal Court judges and two Supreme Court judges, giving him a clear majority in the Judiciary. The US Senate has become no less myopically committed to him than his political grassroots base and media machine. Senate leader, McConnell, has proven to be one of the most obsequious Senate leaders in history.  With the Judiciary and one house of Congress firmly in his pocket now he has not been reluctant to break whatever rules and norms he deems necessary.

Having outmaneuvered the Democrats in the Mueller Report and Russia interference affair, and now as well in the impeachment attempt, Trump is now even more confident no doubt that he can run roughshod over Pelosi and the Democrats in this election year. And he will.

His SOTU speech was in effect a declaration of his intent to do so. And the confrontation at the end of the speech between himself and Pelosi—Trump refusing to shake her extended hand and Pelosi then ripping up his speech—is symbolic of the political dogfight about to come. Throughout it all, Trump’s approval rating has survived in safe territory.  His red state allies are intent on ensuring his electoral vote majority via both gerrymandering and voter roll suppression.  His grass roots minions are itching to release more aggressive protests, demonstrations and action. His strategists are formulating a new racist appeal to split Democrats’ historical minority base of support.

Meanwhile, the Democrats themselves are sliding into their own internal conflict, with the corporate wing planning to scuttle Sanders by any means necessary and replace him with Bloomberg as their candidate at the convention.

In short, Trump’s SOTU speech was less about the state of the union and more about the state of Trump’s re-election and the Trump strategy to win a second term in November. And it appears he may succeed in domestic politics while having clearly failed in economics and foreign policy.

About the Author

Dr. Rasmus is author of the just-published book, ‘The Scourge of Neoliberalism: US Economic Policy from Reagan to Trump’, Clarity Press, January 2020. He blogs at jackrasmus.com. His twitter handle is @drjackrasmus. And his website is http://kyklosproductions.com

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