Category Archives: Fiscal Freedom

California is planning to strengthen its regulation of financial companies by replicating on a state level what the Consumer Financial Protection Bureau was created to be.

The state legislature has revived an idea Gov. Gavin Newsom first proposed in January to remake the California Department of Business Oversight into a beefed-up regulator of fintech companies, credit reporting agencies, debt collection forms and others firms.

The agency, which would be renamed the Department of Financial Protection and Innovation, DFPI, would see its powers expanded to address abusive acts and practices, going beyond its current goal of preventing unfair and deceptive acts and practices. The new agency would be fashioned after the federal CFPB that was created as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

The proposal to create a mini-CFPB in the state was added to a pending budget bill after being dropped in June. California is the most populous state in the nation, home to 12% of the Americans. If the state was an independent nation, its economy would be the fifth-largest in the world.

The legislature likely will act on this proposal in the coming weeks, according to staff comments in an agenda for a state Senate hearing held last week.

The DFPI is designed to provide consumers greater protection from predatory practices while facilitating innovation and ensuring a level playing field for all companies operating responsibly in California, according to the description in Newsoms proposal. It seeks to cement Californias consumer protection leadership amidst a consumer-protection retreat by federal agencies, including the Consumer Financial Protection Bureau.

Enforcement actions at the federal CFPB plummeted after President Donald Trump took office in 2017, according to a story last year in the Wall Street Journal. The number of new enforcement investigations fell to 15 in fiscal 2018, from 63 in fiscal 2017 and 70 in fiscal 2016, the CFPB said in response to a Freedom of Information Act request from the Journal.

Beth Mills, a spokeswoman for the California Bankers Association, said in an interview with NPR that she supports the creation of the new state agency because it would mean better policing of online lenders who compete with banks but operate with looser oversight.

We would welcome greater regulation on them to make sure that were operating under the same rules, Mills said, while proposing banks that already are heavily regulated by the Federal Reserve and the Office of the Comptroller of the Currency be exempt from the new bill.

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Californias proposal for its own CFPB is back on track - HousingWire

For example, he spoke of how government programs to eradicate poverty hadnt solved much of anything: If government planning and welfare had the answer and theyve had almost 30 years of it shouldnt they be telling us about the decline each year in the number of people needing help?

In recent years, weve spent about a trillion dollars a year on federal welfare programs. Divide that up among the 40 million or so Americans considered poor, and we could have given a family of four $100,000 a year. Yet, the poverty rate has stayed about the same as it was when the War on Poverty began in 1964. Tragically, most welfare programs have only been successful at creating perpetual reliance on government.

Reagan also pointed out that, despite the fact that Washington was collecting unprecedented amounts of money from taxpayers in 1964, it never seemed to be enough: Today, 37 cents of every dollar earned in this country is the tax collectors share, and yet our government continues to spend $17 million a day more than the government takes in.

Washingtons poor fiscal restraint has only gotten worse. In 2019, the government spent $2.7 billion a day more than it took in, and currently, the national debt exceeds $80,000 for every man, woman and child.

Yet today, despite years of failures, just like back then, the left continues to promote policies that usurp our freedom, harm our economy, endanger our security and create an unhealthy dependence on government.

Today, theyre proposing government-run single-payer health care and cutting our military when those who want to do us harm are increasing theirs. They want to defund the police across America, putting out the neighborhood welcome mat for criminals everywhere. Theyve proposed climate legislation that would eliminate gas-powered cars, ground all airplanes, and forbid beef consumption. Their proposals would guarantee every person in America access to free health care, free college, and even a free paycheck paid for with huge tax increases.

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KAY COLES JAMES: Why Reagans call to conservatism needs to be heard again today - SCNow

While not the only factors, two of the major forces impacting the economy are the coronavirus and who will be sitting in the White House come January. With science and politics meeting, economist Hugh Johnson, the chairman and chief investment officer of Hugh Johnson Advisors in Albany, is predicting that the current V-shaped economic recovery will slow.

Johnson spoke with WAMC's Jim Levulis about his latest economic outlook.

Johnson: When you take a look at what happened in March and April, and of course we dug an extraordinarily deep hole in March and April, and it showed up in the second quarter gross domestic product numbers, which was a 32% decline in gross domestic product, by far the largest or steepest decline we've ever had in our history. So we dug a deep hole. And initially, there was a very strong sort of a recovery from those very deep numbers, those very poor numbers, and that we saw in May and June, particularly in the employment numbers in one month, we saw 4.8 million jobs added or recovered into payrolls. And so that was all really good news. But I think that, you know, since that time quite frankly, that everybody's been a little bit worried about a number of things. First of all, the stock market has come very far very fast, and they're a little worried about that. The second thing that most everybody is worried about is that we're going to have a sort of a replay of March and April that we're going to roll back some of the reopenings and as a result, the recovery that we had, and again, May and June being very strong with slowed down. So the recovery in May in June was very steep and V-shaped. And after we get that we get into something like July, August, the numbers we've seen so far. And it looks like there's still a recovery going on. But it's a little bit more gentle. So what does it mean? It really means good news, in the sense that we're still recovering, maybe not such good news in the sense that we're not recovering as fast as we did. And it's going to take some time. And I mean time until 2022, to get back to the levels of employment and economic growth or output that we saw at the end of 2019. So positive growth, but slow growth. And that's good news for I think the markets but maybe it's just not as exciting, shall we say as when you get something that's V-shaped.

Levulis: The S&P 500 has been hovering around its record high, which was set before the pandemic hit. Your outlook predicts S&P 500 earnings will increase nearly 30% in 2021. That's after declining 23% overall in 2020. What's pushing that index to be able to recoup its losses relatively quickly?

Well, the big thing that is pushing the index is that investors know that what's where we are doesn't count. And where we are, of course, is in 2020, in the middle of the pandemic, in the middle of the kind of the bad times for the economy, and earnings are going to be down 23%, but nobody's really looking at 2020. Now we are all looking are focused on 2021 and asking the question, what are the earnings going to look like, not only in 2021, but also 2022. And, as you say, that's a positive growth of 30% in earnings for the S&P 500. That's really good news and that's very positive news. And, there's no expectation of anything that's going to get in the way of that. In other words, we're not going to see interest rates rise, the Federal Reserve is likely to keep interest rates right around current levels, which means a supportive of current valuations in the market. So I think really what we're saying is that look, you know, the Federal Reserve interest rates will be very benign, they're not going to get in the way, this was all going to be up to earnings. And the earnings outlook is very positive for 2021. And a little less positive, but still positive for 2022. And that's what investors are focused on. And that's why they're somewhat optimistic. It looks like a new bull market. And the one thing I want everybody to remember is bull markets are not short.they last on average about 63 months. Last one we had was my gosh, was 130 months, but generally speaking around 60 to 65 months. That's a long way from here. We're only two months into this. So I think investors are saying, look, it's a reason to be upbeat about things or prospects not downbeat.

And sticking with Wall Street here, your outlook seeks to compare the current stock market with the dot.com bubble of 1999-2000. Are you seeing similarities between now and then?

Well, I'm seeing similarities in the sense that one of the things you focus on is the level of valuation. And we had, you know, we've got price earnings multiples of about 22 now. We had higher price earnings multiples at that time. But one thing we've got now that was really different from dot.com is that we've got extremely low interest rates, and we didn't have very low interest rates during the dot.com bubble. And so it was hard to justify those valuations, hard to justify those very high price earnings ratios in the dot.com bubble of 1998 through 2002. This time, you can justify the high price earnings ratios and I draw that comparison mainly just to show you to make a statement and the statement is, you know, you just shouldn't worry about this being a bubble like the dot.com bubble, you shouldn't worry about valuations now, as you should have worried in 1998 through 2002. So it really takes that big worry about valuation kind of off the board. You kind of worry about it, but you don't worry as intensely as you should have worried back in 1998. That's the reason I say it.

And from Wall Street to Pennsylvania Avenue, we are less than three months away from the presidential election, if former Vice President Joe Biden were to win the White House, how might that impact the economy?

That's really a great question. And I think you're going to have to say, you know, the truth is regardless of who wins I'm not sure it's going to very much affect the economy. I don't think we're going to go into a tailspin as a result of it. The thing you worry about, of course, is that look, we're spending a lot of money right now on the pandemic to try to get ourselves out of this crisis. And that's going to show up in a very big increase in the deficit. It's going to go for about 4.5 percent of gross domestic product up to as much as 18% of gross domestic product, when we've seen that historically, it's ushered in a period of sort of fiscal restraint, and that means higher taxes and less spending. I think if we're talking about sort of a Democratic victory, which right now that looks like a real possibility, maybe more than just a possibility, but I think we're really saying, yeah, higher taxes, higher corporate taxes, higher taxes on the wealthy, less sort of freedom of regulation, there has been a very long period of unregulated anti-trust, anti-trust is going to be much tighter and tougher during a Democratic victory, but at the same time I think you're going to see all that offset by ongoing very strong spending, lots and lots of spending, particularly on things like infrastructure. And I think that the bottom line is that yeah, we'll get the restraint of hierarchical but we'll also get the good news, I think it's good news in the form of maybe ongoing increased spending on things like infrastructure that are very important, as well as all sorts of things like, like healthcare. So, quite frankly, I don't think it's going to have that much of an impact on the economy, but it's going to really change the way things are done in Washington. Higher taxes on the rich, higher taxes on corporations, we're going to roll back that corporate tax from 21 to 28%. It's almost a guarantee. So things will change.

Stepping back away from current events for a secondhistorically, why are the economic predictions for a Democratic White House worse off than say, a Republican presidency? I know you mentioned high taxes, more regulation, that sort of thing. historically has that held true, those predictions?

It really hasn't held true. It has certainly has held true that we've had the predictions that the Democrats bad for the stock market and bed for the economy. But when you take a look at the outcomes, whether it's a Republican or a Democratic presidency, really, quite frankly, the outcomes have been mixed. In other words, they've been very good for Democrats and they've been very good for Republicans. So it really depends on which Republican it is, which Democrat it is, and what their policies really are, because their policies will determine the outcome. And right now, when we look ahead towards 2021-22, you have to be a little bit worried because those deficits are so high, you have to be a little worried that that's going to usher in not only higher taxes, but less spending. But when we take a really close look at what Joe Biden has said for the Democrats, he's really talking about not lower spending, but a little bit higher spending. But in either case, I think it's really a little bit up in the air and yes, you should be worried. Yes, you should be worried about fiscal restraint, but I think it's a little bit too early to say that the economy is going to somehow go into a tailspin in 2021-2022. So I think we got to watch very carefully for what the policies are going to be the incoming administration, either the existing one continues, or the new administration comes in with new policies, you got to watch them very carefully and try to measure what the outcome might be. It really makes a difference.

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COVID-19 And The Presidential Election Impacting Economic Outlook - WAMC

In a dark season of pestilence, COVID has reduced to tatters the illusion of American exceptionalism. At the height of the crisis, with more than 2,000 dying each day, Americans found themselves members of a failed state, ruled by a dysfunctional and incompetent government largely responsible for death rates that added a tragic coda to Americas claim to supremacy in the world.

Thats Wade Davis in an op-ed titled The Unraveling of America in Rolling Stone magazine published Aug. 6 that paints a grim picture of the current state of the U.S.

Wade Davis is an anthropologist at the University of British Columbia and his post in Rolling Stone has racked up millions of page views since its publication earlier this month. For some readers it drew comparisons with an article written by Matt Taibbi in 2010 titled the The Great American Bubble Machine centered on Goldman Sachs as a vampire squid wrapped around the face of humanity.

In Daviss article, he suggests that the days of U.S. dominance may be undone by the COVID-19 pandemic that has infected nearly 5.5 million Americans, or more than a quarter of the 21 million global total, thus far, according to data compiled by Johns Hopkins University.

The critique from the U.S.s sister country to the north may be a hard pill for some to swallow, as Davis says that Americas obsession with individual rights and liberty at the expense of community has been a key point of weakness for the nation.

More than any other country, the United States in the post-war era lionized the individual at the expense of community and family, he wrote. What was gained in terms of mobility and personal freedom came at the expense of common purpose.

In a CBC article Davis said that he isnt taking cheap shots at the U.S., which is an ally and trading partner with Canada, but he believes his essay was an attempt to encourage widespread introspection.

I think of it like a family when you have to do an intervention. The first step is to hold a mirror to the face of the individual to let them know what has become of themselves. Thats the first step on the path to rehabilitation, Davis was quoted as saying by the CBC.

Davis isnt the only one questioning the outlook for the global superpower.

Earlier this summer, Stephen Roach, Yale University senior fellow and former Morgan Stanley Asia chairman, warned that the U.S. dollar DXY, +0.07% may face a challenge to its place as the reserve currency of the world.

The prominent economist told MarketWatch in an interview that the dollars decline could occur at warp speed and that the era of U.S. hegemony may be coming to an end, citing increases in the nations fiscal deficit and dwindling savings.

To be sure, the list of those who have inaccurately written about the demise of the U.S. and its leadership place in the world is lengthy.

Like Davis, Roach said that responses to his article were very visceral.

Davis says his criticism has less to do with the dominance of the U.S. currency or with the nations leadership in the White House, but he points out that growing disparities between haves and have-nots may be the nations undoing.

At the root of this transformation and decline lies an ever-widening chasm between Americans who have and those who have little or nothing, Davis wrote. The elite one percent of Americans control $30 trillion of assets, while the bottom half have more debt than assets.

Economic disparities exist in all nations, creating a tension that can be as disruptive as the inequities are unjust, he continued.

However, What every prosperous and successful democracy deems to be fundamental rights universal health care, equal access to quality public education, a social safety net for the weak, elderly, and infirmed America dismisses as socialist indulgences, as if so many signs of weakness.

His warning comes as the S&P 500 stock index carves out its first record since Feb. 19, marking an unofficial end to a bear market that gripped the benchmark SPX, +0.23% and the broader market, including the Dow Jones Industrial Average DJIA, -0.24% and the Nasdaq Composite Index COMP, +0.72%.

However, those new highs for the broad-market stock benchmark may only highlight the fact that the U.S. economy, and the economy for much of the developed world, remains in tatters amid the COVID-19 pandemic.

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'COVID has reduced to tatters the illusion of American exceptionalism,' says anthropologist in Rolling Stone op-ed - MarketWatch

So what more must be done? How does SA now best fix its economic future?

Despite the weak preconditions in the SA economy, we must recognise the extent to which the national lockdown has obliterated previous economic and fiscal benchmarks. The devastating economic impact of Covid-19 and the possible cushioning effect of various economic support measures introduced so far still have to play themselves out.

A revised budget has been prepared in light of the additional spending commitments, the loss of tax revenues and the consequent escalating debt burden arising from the health crisis. The rate of recovery in the short term depends on the strength of any revival in the world economy, on whether the economic support measures are effectively implemented, and on the pace at which the lockdown is phased out so that economic and business activity can resume. The rest we know.

This does not, however, mean a permanent doomsday scenario. What can be said is that this pandemic, like previous ones, will eventually pass. Indeed, a vaccine will one day be found. SA, along with many other economies, will eventually revert to what might in future be called the new normal. Yet even if the socio-economic contours in SA shift as a result of Covid-19, the underlying challenges will remain.

SAs historical imbalances have not disappeared.

We need to bear in mind that we cannot define or propose economic strategies without having a clear vision of a national purpose. This goes beyond economic theories and models; it is about the kind of society we wish to live in. And we must not forget what the long walk to freedom entailed or where the aspirations in our widely praised constitution came from, as we try to define a new national purpose for SA.

Often, our purpose as a nation does not come across in technical discussions of economic policy and its implementation. Such discussions frequently fail to take into account the impact of our economic decisions and activities on the institutional framework of the society we live in. The danger in this oversight is that our policy choices may invite changes in our society that we would not specifically have chosen, had we had the benefit of foresight.

The consequences of apartheid provide a powerful lesson in this regard for all South Africans. And now there is widespread concern about the violation of human rights brought about by the lockdown regulations.

We can only be assured that we will achieve our preferred type of social organisation if we know how it is likely to be affected by our chosen economic policies. This alignment also helps create policy coherence, public confidence and social cohesion.

Parsons is a professor at North-West University Business School. This is an extract from the chapter he wrote in Recession, Recovery and Reform: SA After Covid-19, a publication he also edited.

Originally posted here:

Can we create the SA we want to live in after Covid-19? - Business Day

Not even two decades since they were set off, the light has gone out of power distribution reforms. Accumulated financial losses of distribution companies, or discoms, ballooned to about Rs 4.7 lakh crore in fiscal 2019, while average cost of supply-average revenue realised (ACS-ARR) gap and aggregate technical and commercial (AT&C) losses are both higher than Ujjwal Discom Assurance Yojana targets.

The lack of autonomy of state electricity regulatory commissions (SERCs) has been a major stumbling block to progress. The move to create a single central selection committee for appointment of chairman and members of all SERCs in the proposed Electricity (Amendment) Bill, 2020, is thus the right step. It may finally eliminate state interference and pave the way for much-stalled reforms.

So how have the SERCs been an impediment?

They have wide-ranging powers and the responsibility to ensure efficiency by introducing competition and upholding consumer interest. Instead, they begot irregular tariff revisions, continuous cross-subsidisation, large regulatory assets, and delays in adjudication on tariff and non-tariff disputes.

SERCs are also empowered to grant licences, fix tariffs and targets, and punish errant licensees. However, with political appointees as members, the current mess is not surprising.

Discoms in some states (such as Tamil Nadu, Madhya Pradesh, Punjab and Rajasthan) have failed to file tariff petitions and issue orders on time, submit annual accounts, and get true-ups done regularly. Thats again telling on SERCs, which are ultimately responsible to ensure petitions are filed promptly and can do so suo motu even if discoms fail to. Such non-action has not helped timely reconciliation of tariff requirements to meet costs.

Discoms are also carrying huge regulatory assets with no concrete plan to get rid of them. For instance, in tariff petition of fiscal 2018, TN discom filed for regulatory assets of Rs 68,873 crore and the SERC approved only Rs 10,432 crore. In UP, discoms regulatory assets were around Rs 40,541 crore at fiscal 2019 end, again, no clear timeline for liquidation.

All this is why, even after years of reform, tariff structure in many states is still skewed, with disproportionate burden on the industrial and commercial segment. Some SERCs have also dragged their feet in certain cases on conducive regulatory actions to promote open access, which could have helped propel competitive industrialisation as well as the option for independent power producers to sell power directly to consumers.

But now that SERC members will be selected by a central body (once the amendments go through), certain long-pending reforms could find renewed vigour:

Indeed, private sector participation and separation of retail supply, or for that matter any reform, will depend on how non-politically and independently the sector is regulated. Only when tariffs start reflecting the true cost of supply and AT&C losses, will the rest follow.

DISCLAIMER : Views expressed above are the author's own.

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Freedom and power: Autonomy for state electricity regulatory commissions can be the harbinger of big change - The Times of India Blog

LONDON, Aug. 17, 2020 /PRNewswire/ -- Leidos(NYSE: LDOS), a FORTUNE 500 science and technology leader, has appointed Al Potter as Managing Director of the National Security and Defence Business for Leidos UK. In this role, he will be responsible for engaging the defence, intelligence and national security markets.

Potter has joined from Boeing Defence UK where he served as a Board Member alongside his day-to-day role as Managing Director of Government Service Business. Prior to this, Potter spent four years at Lockheed Martin Global as Business Development Director for UK and Europe, where he was responsible for identifying and capturing new business across the mission systems and training portfolio.

Al is a recognised diversity champion - having built very diverse teams and championing leadership development. He has also acted as a mentor for many employees and often advises veterans leaving the services. In addition, Al is also a Trustee and Director of the Midlands Educational Trust, an Education Academy that runs four primary schools in the Malvern and Worcester area.

Potter began his career with the Royal Air Force, eventually earning the rank of Squadron Leader after 23 years of service. During his time, he flew Search and Rescue helicopters, completing over 400 rescues and awarded an Air Force Cross for his service. A qualified helicopter pilot instructor, he later ran the UK Search and Rescue training academy on return from an overseas deployment with U.S. Forces on Operation Enduring Freedom.

Chief Executive of Leidos UK & Europe, Simon Fovargue, said: "We see enormous opportunity to contribute towards the UK Government's security and defence agenda leveraging the wider company and growing organic skills and capability. Bringing someone of Al's calibre and expertise to lead on these efforts is a great coup for us and I am confident that he will make a meaningful impact on this priority market for us."

Alan Potter said: "I am thrilled to be joining the Leidos team at such an exciting period of growth for the business, and particularly in the UK as we look to expand our services in national security and defence. I have known Simon for a number of years, he is a top-class leader and I look forward to working with him and the rest of the team at Leidos."

About Leidos

Leidos is a Fortune 500 information technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, homeland security, civil, and health markets. The company's 37,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Va., Leidos reported annual revenues of approximately $11.09 billion for the fiscal year ended January 3, 2020. For more information, visit http://www.Leidos.com.

Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. Such statements include contract valuation assuming the exercise of all options. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in the company's Annual Report on Form 10-K for the period ended January 3, 2020, and other such filings that Leidos makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.

Media Contacts:

US: Melissa Duenas Melissa.L.Duenas@leidos.com

UK: Robert McNeill Robert.McNeill@leidos.com

Logo - https://mma.prnewswire.com/media/4662/leidos_logo_4817_21071_.jpg

http://www.leidos.com

SOURCE Leidos

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Leidos UK appoints new Managing Director of National Security and Defence - PR Newswire UK

Roughly five months after Indias first lockdown to tackle the Covid-19 scourge, its easy to blame the pandemic for the current economic woes. Sure, GDP contraction isnt something we would have to reckon with if it wasnt for the virus, but an economic slowdown was very much underway. In the second quarter of fiscal 2020 (July to September 2019), growth was down to a six-year low of 4.5 percent (subsequently revised at the end of the year to 4.2 percent); the following quarter was marginally better at 4.7 percent growth, although the pandemic-induced revision brought it down to 4.1 percent; the fourth quarter growthwhich included just seven days of the lockdownwas pegged at 3.1 percent and the full years at 4.2 percent.

The pre-Covid-era, however, is water under the bridge. The new normal may by now be a well-worn buzzword but for industries that have been busy restoring supply chains and stoking fresh demand, its quite literally a start from scratch. And its been an encouraging beginning.

If there are glimmers of hope, theyre largely being seen in agrarian India. Even pre-Covid, it was agriculture, and not manufacturing and construction, that helped take fiscal 2020 GDP past 4 percent. Since then, strong monsoons and record sowing levels are manifesting in an increase in rural spending, which has also been buoyed up by the government pumping cash into villages via a series of schemes.

That windfall has started reflecting in report cards of consumer companies, from tractor makers and two-wheeler makers to biscuit marketers. Even Indias largest carmaker Maruti, which typically derives 80 percent of its demand from urban India, is seeing higher growth from rural.

Our cover story is on a company that may well be a barometer of the rural ray of economic hope, Hero MotoCorp. Consider: In the April-June quarter, rural sales have outpaced urban by 12 percent for Hero that would get half of its overall sales from rural pre-Covid. July sales, of almost 5.15 lakh units of motorcycles and scooters, were almost at levels of a year ago. Sensing the opportunity, the worlds largest two-wheeler maker is going the whole hog with its rural outreach efforts, which include 650 rural sales executives (RSEs) covering 55,000 villages. The RSEs are in touch with the rural community through video and phone calls, with information on everything from Covid safety measures to product information and retail finance. As Hero MotoCorp chairman & managing director, and CEO, Pawan Munjal tells Rajiv Singh, who penned the cover story: We have to learn to live with the virus. You cant sit at home and wait for it to go away. Yet, whether the July rebound will persist is a billion-dollar questionat a time when Covid-19 in India is spreading further upcountry. Clearly, a rural recovery can do its bit for the Indian economy, but as the analysts at Barclays succinctly put it in a recent research report: Ultimately, health care management and disease resolution will dictate the pace of the economys return to normal.

India completed 73 years of Independence in a period in which individual freedom didnt have a lot going for it. When locking down and masking up were the calls of the day, the pandemic shone a light on how shackled so many of the nations citizens still are in accessing quality health care and educationand, indeed, a livelihood to make ends meet. Our Independence Day package, put together by Jasodhara Banerjee, delves into Finding Freedom from disease, illiteracy and unemployment. Covid-19 is a cruel reminder that you cant take anything for granted.

Best,Brian CarvalhoEditor, Forbes IndiaEmail:Brian.Carvalho@nw18.comTwitter id:@Brianc_Ed

(This story appears in the 28 August, 2020 issue of Forbes India. You can buy our tablet version from Magzter.com. To visit our Archives, click here.)

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The Great Rural Hope - Forbes India

American democracy balancing precariously

"May you live in interesting times" an old Chinese well wish or curse.

We are living at a point in the life of our democracy philosophers like Alexis Charles de Tocqueville and others predicted as the end of democracies a life expectancy ranging about 250 years.

Americas democracy is balancing on the point of a pin. Corruption among the royal leadership is a caustic poison that drips down to the people.

In 1787 Alexander Tyler, a Scottish history professor at the University of Edinburgh, said: "A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship."

Professor Tyler continued with these eight steps of a democracy:

1. From bondage to spiritual faith;

2. From spiritual faith to great courage;

3. From courage to liberty;

4. From liberty to abundance;

5. From abundance to complacency;

6. From complacency to apathy;

7. From apathy to dependence;

8. From dependence to bondage

We seem to be on pace to make Professor Tylers predictions come true. Our ancestors took great risks, sacrificing sweat, blood and life to free themselves from the bondage of monarchs, despots and dictators. They fought hard for the treasures of freedom.

It appears recent generations are surrendering those freedoms in the most cowardly of capitulations, rolling over like dogs to be leashed in bondage. Settling fat, happy and lazy, back again to emaciated and downtrodden.

Gerald J. Furnkranz, Millport

Maennerchor an area treasure

Frank Tomainos July article in the O-D mentioned the Utica Maennerchor and described how it was founded in 1865 by a group of 15 men who started a German choir in a brewery.

These men faced numerous difficulties as they created one of the largest and most popular clubs in central New York.

UMC has continued to struggle and face innumerable challenges the Great Depression, Prohibition, losing the building to fire and then to urban renewal twice.

Times have changed and the Maennerchor has changed where once it was a closed club with over 500 dedicated members, it is now open to the public with 300 members dedicated to song, dance and German culture.

The Maennerchors singers and dancers perform free at various cultural events and nursing homes often donating proceeds from in-house concerts to other worthy causes.

The facilities are presently open to anyone who wishes to enjoy the fine bar and Friday dinners, to renting the spacious grounds and buildings for private parties or monthly meetings.

The Bavarian Festival has been canceled due to COVID and has been replaced with a GoFundMe drive which has helped with some revenue loss.

The Utica Maennerchor has existed for 155 years and should it not survive, it would be a great cultural loss to our area.

John and Erika Perrone, Marcy

Safely reopening SUNY Poly

We are writing to alert the public as to the concerns our faculty and staff members have about the reopening plan for SUNY Poly, especially its Utica campus.

SUNY Polys Reopening Plan adheres to standards established by the CDC, state and SUNY guidelines. The plan complies with some of the recommended best practices while adhering only to minimal standards with regard to testing with a 7 to 14 day "good faith" precautionary quarantine and event testing upon arrival only if the student is showing symptoms.

Mandatory testing of students, faculty, and staff before returning to campus and throughout the semester is essential to protect the safety of students, staff, faculty, and of the wider community.

We applaud the examples set by private colleges and some SUNY campuses, and believe that the practice of mandatory testing should be extended to all campuses, including the Utica campus.

There is still time to require mandatory testing of students, faculty, and staff before they return to campus. We respectfully ask that the community support us in this effort by urging SUNY Polys Interim President Wang (president@sunypoly.edu) to do the right thing and require a rigorous program of testing.

Dr. Linda Weber, Poly Utica Faculty Assembly

Dr. Maarten Heyboer, Poly Chapter of UUP

Head to library for free wi-fi

I applaud any efforts to address digital access inequities in our community and the news that there are additional wi-fi hotspots for downtown Utica residents and visitors to the community is worthy of praise.

I would also like to point out that downtown Utica has had free wi-fi for 23 hours and 59 minutes of every day since March 13th, 2020, in the parking lot and grounds outside Utica Public Library.

We aren't alone, either.

Many of the libraries in the Mid York Library System which comprises all public libraries in Oneida, Herkimer and Madison Counties made efforts to expand their free, unlimited wi-fi access on their properties once we made the difficult but necessary decision to close our buildings almost five months ago.

While we are still unable to open fully to the public as we have have been in the past, staff have been providing both new online and on-site programming such as browsing of new library materials on Thursdays outside our building, free bagged lunches two days a week for children in partnership with Compassion Coalition, and take-and-make craft kits for children and adults.

Utica Public Library recently updated its mission statement: With over a century of service to the Greater Utica Area, The Library remains dedicated to providing information and learning experiences throughout our diverse community.

This hasn't changed due to the current pandemic, and while we certainly miss visitors coming freely through our doors and roaming our majestic stacks, our work hasn't stopped.

Christopher Sagaas, director, Utica Public Library

Disrespecting two saints

Alexandria Ocasio-Cortez a prominent Democrat from New York claims Fr. Damien, was an example of a white supremacist. This was a Catholic priest who went to Hawaii and ended up working with lepers.

This priest, knowing the dangers, went to the island to assist these walking dead. He died of leprosy at 48. Before he died, he came back to America looking for those who might assist him in his ministry. Over 50 religious congregations had refused his request, all knowing how contagious this truly deadly disease was.

It was not until he reached Syracuse that he met a Catholic nun who said she was interested. She grew up during the Civil War in Utica. She had already founded St. Josephs Hospital in Syracuse.

She along with six of her fellow sisters joined Fr. Damien.

The Church, on rare occasion, will choose extraordinary people to be used as good examples for us all. They are called saints. There have been 15 from America in our history. Marianne Cope is included on that list.

Where is the outrage from our local politicians to these blatant lies?

They sit back and say nothing as these people work to "cancel" the best of us.

Martin Droz, North Bay

Protect Adirondack Park

It disappoints me every year at the indifference some people have toward preserving the integrity of the Adirondack area. Garbage and beer cans thrown out of cars, the noise and pollution of snowmobiles, boats and Jet Skis its just the cavalier indifference of some of the visitors toward this environment.

Social media has also impacted the hiking trails. Everyone wants to get a selfie on top of a mountain and yet most have seldom, if ever, spent a night in the woods. They are ignorant of the history, solitude and spirituality of what this unique resource provides and means.

To many, the Adirondacks simply represents a destination to party. How do you keep the Adirondacks economically viable without taking away the thing that makes it the Adirondacks?

I hope this question gets the attention it needs before its too late.

Gerhardt Storsberg, Trenton

Comparing generations again

In his guest view "Greatest Generation " (OD, 8/09/20), the writer describes the differences between the sacrifices made during WWII and the refusal today, by some, to tolerate the small inconvenience of a face mask.

He reminded us that our whole nation collaborated on the homefront and the battlefield to defeat a horrific enemy, and compares those patriotic actions to the shameful behaviors of some today who refuse to fight a different, but equally dangerous public enemy through the simple expedient of a face mask.

I'd like to add another important comparison between then and now.

I'd like you to compare the national leadership that we were blessed with back in the dark days of WWII to the one we're burdened with today.

We had Roosevelt and an energetic, dutiful Congress to guide us and unify us through those awful times. Today we have Trump and his cowardly enablers whose leadership, or the lack thereof, has resulted in our nation displaying the worst position in the world relative to combating the COVID-19 pandemic.

November 3 can't come soon enough.

Carl Streeter, Ilion

Park condition shameful

A friend and I visited a park which has several monuments.

Who is responsible for the Purple Heart Memorial Park at Erie and Whitesboro streets in Utica?

I could not believe it. It was so sad to see the overgrowth at the Purple Heart Monument and the wanton damage and destruction to the pavilion, with supports kicked out. The flower pots were overturned and plants destroyed a general sense of abandonment.

Where is the civic pride?

Robert Fletcher, Ilion

A witness to poor policing practices

I am writing in opposition to the 10-point policing proposal introduced by sheriffs across the state.

I am the proud son of a retired police officer and I worked in police dispatch. Despite my compassion for the challenges and dangers of policing, I do not support legislating law enforcement officers as a protected class.

The protests sparked by the murder of George Floyd exposed the growing impatience with abuse of power and authority by law enforcement; over-policing, racial profiling, brutalization, and extrajudicial executions.

New York State sheriffs assert that the 10-point proposal will improve officer safety in a "climate of disrespect." I have witnessed the militarization of police over time, the shooting of a known mentally ill citizen, harassment of a Latino acquaintance, and have been subject to disrespect by police officers while engaged in my work as a pastor.

Draconian protection laws for police will not earn more respect.

I suggest legislation that promotes citizen input and defunding law enforcement to fund social services, mental health, conflict resolution, domestic violence intervention, combating poverty, and improving decaying neighborhoods.

Rev. Richard Moran, Jr., New York Mills

Choose wisely in November election

Conservatives and Libertarians endorsed Tenney; Working Families and Independents endorsed Brindisi (justfacts.votesmart.org, ballotpedia.org). I consider myself as an Independent Conservative, registered Republican.

For upstaters, the House elections are of even more importance than the presidential one. Tenny will claim Brindisi is Pelosi's puppet (yet she openly admits to being Trump's). The negative ads will increase, and we all need to be able to see through them.

Statistics on sites such as Govtrack.us show similarities. I encourage you to browse deeper into sites like these and make informed decisions. You will see the committees Brindisi sits on, and those Tenney did not. You can compare bills sponsored, and how they voted. You can see their ratings and how they fall on an ideology/leadership scale.

Most notable for me was Tenney's poor approval scores from "Club for Growth," which are very conservative: Reducing taxes, the size and scope of the federal government, spending, and passing a balanced budget (clubforgrowth.org).

Please dont believe all of Claudia's advertisements. Educate yourself to make the best decision for you and your family here in upstate New York.

Travis Owens, Clinton

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YOUR VIEWS: Letters to the Editor, Aug. 16 - Opinion - Utica Observer Dispatch

NEW DELHI: The focus of the Reserve Bank of India (RBI) shifted to alternate methods of providing reliefs rather than pumping more money into the banking system, in a way accepting most of industry and Streets demands.

RBI gave more freedom to banks to deal with loans while keeping mum on moratorium. The monetary policy committee (MPC) said Indias GDP growth is likely to slip in the red during the fiscal year.

As per expectations, the committee unanimously voted to maintain the status quo. It kept repo rate at 4 per cent and reverse repo rate at 3.35 per cent while not ruling out further rate cuts.

Here are key takeaways from the policy meet:Liquidity shot in the arm for MFsRBI Governor Shaktikanta Das said abundant liquidity has supported many segments of financial markets, including mutual funds, and the situation has stabilised since the Franklin Templeton episode.

Assets under management of Debt MFs, which fell to Rs 12.20 lakh crore as on 29 April, 2020, recovered and improved to Rs 13.89 lakh crore as on July 31, 2020, he said.

Recasting of MSME loansThe central bank allowed restructuring loans of the MSME sector, which came under heavy stress due to the lockdown and the following slump in demand.

It has been decided that stressed MSME borrowers will be made eligible for restructuring their debt under the existing framework, provided their accounts with the concerned lender were classified as standard as on 1 March, 2020. This restructuring will have to be implemented by 31 March, 2021, the central bank said.

More loans for your goldAs gold prices have been soaring, the central bank said it will now allow lenders to lend 90 per cent of the value of gold jewellery against earlier 75 per cent. This is likely to help Indian households, who are sitting on the largest amount of gold ornaments in the world.

Lockdowns hit high-frequency indicatorsThe MPC said even though the economic activity had started to recover from the lows of April-May, the surges of fresh infections have forced re-clamping of lockdowns in several cities and states. Consequently, several high frequency indicators have levelled off.

Petro tax fuel inflationThe central bank said higher domestic taxes on petroleum products have resulted in elevated domestic pump prices and will impart broad-based cost push pressures going forward.

It said inflation will remain elevated in the second quarter but may ease once new crops come into the market. Nonetheless, upside risks to food prices remain as vegetables and protein-based food items (meat, fish, etc.) could also emerge as a pressure point.

Low rates give boost to bond marketLower borrowing costs have led to record primary issuance of corporate bonds of Rs 2.1 lakh crore in the first quarter of 2020-21, the MPC said.

It noted the transmission of policy rate cut to bank lending rates has improved further, with the weighted average lending rate (WALR) on fresh rupee loans declining by 91 bps during March-June 2020.

Das in his statement noted that borrowing costs in financial markets have dropped to their lowest in a decade, with commercial paper yield for NBFCs falling to 3.8 per cent and non NBFCs to 3.4 per cent.

GDP to take a plungeFor the year 2020-21, as a whole, real GDP growth is expected to be negative, the MPC said. An early containment of the Covid-19 pandemic may impart an upside to the outlook. A more protracted spread of the pandemic, deviations from the forecast of a normal monsoon and global financial market volatility are the key downside risks, it said in its statement.

Space for rate cut availableThe committee said the economy is going through unprecedented stress and hence supporting the recovery of the economy assumes primacy in the conduct of monetary policy.

While space for further monetary policy action in support of this stance is available, it is important to use it judiciously and opportunistically to maximise the beneficial effects for underlying economic activity, it said.

Eternal optimismDespite all challenges on the monetary and economic front, Governor Das said he remains eternally optimistic. Throughout this traumatic period, one thing has stood out the indomitable spirit of humanity, the inner conviction that whatever be the challenge, we have the innate resilience to combat them, overcome them and emerge victorious, he said.

Originally posted here:

More freedom to banks, further rate cut not ruled out: 10 key takeaways from policy meet - Economic Times