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Economics

A court rejects Donald Trump’s claim to absolute immunity

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10 months ago

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ON THE campaign trail, Donald Trump has been saying he would be a “dictator” on the first day of his second presidency. Mr Trump may be half-joking when he announces this plan to cheering throngs. But the Republican front-runner has a track record of swelling presidential power past its traditional limits, from declaring a national emergency to build a wall on the southern border, to withholding his financial records and White House communications related to the January 6th riot.

On February 6th Mr Trump’s latest pretension—that years after leaving office he is immune from criminal prosecution for actions he took as president—met with thorough rejection by a federal appeals court in Washington, DC. “Former President Trump has become citizen Trump,” the ruling read, “with all of the defences of any other criminal defendant.” The three-judge panel that dismantled Mr Trump’s case included two appointed by Joe Biden and a staunch conservative appointed by George H.W. Bush.

Mr Trump’s pitch for immunity stems from the federal case brought by Jack Smith, the special counsel, concerning the former president’s attempt to overturn the results of the 2020 election. The appeals-court hearing, which began on January 9th after a district-court judge also ruled that Mr Trump did not enjoy the “divine right of kings”, exposed the extraordinary nature of the argument. When asked whether, for example, a president who had a political rival assassinated by SEAL Team Six could face a legal reckoning after leaving office, Mr Trump’s lawyer answered no—unless Congress had impeached and convicted him first. The judges were unimpressed. Making former presidents wholly immune from criminal exposure, they wrote, would abrogate “the primary constitutional duty of the judicial branch to do justice in criminal prosecutions”.

Mr Trump’s lawyers had argued that presidents might be “chilled” into inaction if a blanket of immunity does not await them upon leaving office (a claim Mr Trump repeated after the ruling). And yet, wrote the judges, past presidents have always “understood themselves to be subject to impeachment and criminal liability”, so any purported chilling effect has been in place throughout American history.

Gerald Ford, for example, pardoned Richard Nixon after he resigned—which was necessary only because both men knew that Nixon faced criminal prosecution for his involvement in the Watergate scandal. And Bill Clinton “agreed to a five-year suspension of his law licence and a $25,000 fine” to avoid having criminal charges filed against him after his presidency. Even if some presidents were to temper their actions through fear of “vexatious litigation”, the court wrote, that risk is outweighed by the public interest in holding former chief executives responsible for criminal misdeeds.

After expediting the briefing and oral argument, the DC circuit took nearly a month to issue its ruling. That has delayed Mr Trump’s trial for election interference, originally due to begin on March 4th. Yet the 57-page decision—presented by a united front of ideologically diverse judges—may ultimately help get the trial started in time for a verdict before the presidential election in November.

One more tribunal could stand in the way, however. The DC circuit panel put its ruling on hold until February 12th to give Mr Trump time to request a stay, and ask for full review, by the Supreme Court. If the justices decline, the case will return to the district court and the trial could begin in the spring. But more likely, in a season rife with fraught election-year battles, is an accelerated trip to the Supreme Court.■

Stay on top of American politics with The US in brief, our daily newsletter with fast analysis of the most important electoral stories, and Checks and Balance, a weekly note from our Lexington columnist that examines the state of American democracy and the issues that matter to voters.■

Correction, February 7th 2024: An earlier version of this article mistakenly referred to Richard Nixon as Gerald Ford’s running mate. Sorry.

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Accounting

Business Transaction Recording For Financial Success

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4 hours ago

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January 18, 2025

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Business Transaction Recording For Financial Success

In the world of financial management, accurate transaction recording is much more than a routine task—it is the foundation of fiscal integrity, operational transparency, and informed decision-making. By maintaining meticulous records, businesses ensure their financial ecosystem remains robust and reliable. This article explores the essential practices for precise transaction recording and its critical role in driving business success.

The Importance of Detailed Transaction Recording
At the heart of accurate financial management is detailed transaction recording. Each transaction must include not only the monetary amount but also its nature, the parties involved, and the exact date and time. This level of detail creates a comprehensive audit trail that supports financial analysis, regulatory compliance, and future decision-making. Proper documentation also ensures that stakeholders have a clear and trustworthy view of an organization’s financial health.

Establishing a Robust Chart of Accounts
A well-organized chart of accounts is fundamental to accurate transaction recording. This structured framework categorizes financial activities into meaningful groups, enabling businesses to track income, expenses, assets, and liabilities consistently. Regularly reviewing and updating the chart of accounts ensures it stays relevant as the business evolves, allowing for meaningful comparisons and trend analysis over time.

Leveraging Modern Accounting Software
Advanced accounting software has revolutionized how businesses handle transaction recording. These tools automate repetitive tasks like data entry, synchronize transactions in real-time with bank feeds, and perform validation checks to minimize errors. Features such as cloud integration and customizable reports make these platforms invaluable for maintaining accurate, accessible, and up-to-date financial records.

The Power of Double-Entry Bookkeeping
Double-entry bookkeeping remains a cornerstone of precise transaction management. By ensuring every transaction affects at least two accounts, this system inherently checks for errors and maintains balance within the financial records. For example, recording both a debit and a credit ensures that discrepancies are caught early, providing a reliable framework for accurate reporting.

The Role of Timely Documentation
Prompt transaction recording is another critical factor in financial accuracy. Delays in documentation can lead to missing or incorrect entries, which may skew financial reports and complicate decision-making. A culture that prioritizes timely and accurate record-keeping ensures that a company always has real-time insights into its financial position, helping it adapt to changing conditions quickly.

Regular Reconciliation for Financial Integrity
Periodic reconciliations act as a vital checkpoint in transaction recording. Whether conducted daily, weekly, or monthly, these reviews compare recorded transactions with external records, such as bank statements, to identify discrepancies. Early detection of errors ensures that records remain accurate and that the company’s financial statements are trustworthy.

Conclusion
Mastering the art of accurate transaction recording is far more than a compliance requirement—it is a strategic necessity. By implementing detailed recording practices, leveraging advanced technology, and adhering to time-tested principles like double-entry bookkeeping, businesses can ensure financial transparency and operational efficiency. For finance professionals and business leaders, precise transaction recording is the bedrock of informed decision-making, stakeholder confidence, and long-term success.

With these strategies, businesses can build a reliable financial foundation that supports growth, resilience, and the ability to navigate an ever-changing economic landscape.

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Economics

A protest against America’s TikTok ban is mired in contradiction

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11 hours ago

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January 17, 2025

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AS A SHUTDOWN looms, TikTok in America has the air of the last day of school. The Brits are saying goodbye to the Americans. Australians are waiting in the wings to replace banished American influencers. And American users are bidding farewell to their fictional Chinese spies—a joke referencing the American government’s accusation that China is using the app (which is owned by ByteDance, a Chinese tech giant) to surveil American citizens.

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Economics

Home insurance costs soar as climate events surge, Treasury Dept. says

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1 day ago

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January 16, 2025

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Firefighters battle flames during the Eaton Fire in Pasadena, California, U.S., Jan. 7, 2025.

Mario Anzuoni | Reuters

Climate-related natural disasters are driving up insurance costs for homeowners in the most-affected regions, according to a Treasury Department report released Thursday.

In a voluminous study covering 2018-22 and including some data beyond that, the department found that there were 84 disasters costing $1 billion or more, excluding floods, and that they caused a combined $609 billion in damages. Floods are not covered under homeowner policies.

During the period, costs for policies across all categories rose 8.7% faster than the rate of inflation. However, the burden went largely to those living in areas most hit by climate-related events.

For consumers living in the 20% of zip codes with the highest expected annual losses, premiums averaged $2,321, or 82% more than those living in the 20% of lowest-risk zip codes.

“Homeowners insurance is becoming more costly and less accessible for consumers as the costs of climate-related events pose growing challenges to both homeowners and insurers alike,” said Nellie Liang, undersecretary of the Treasury for domestic finance.

The report comes as rescue workers continue to battle raging wildfires in the Los Angeles area. At least 25 people have been killed and 180,000 homeowners have been displaced.

Treasury Secretary Janet Yellen said the costs from the fires are still unknown, but noted that the report reflected an ongoing serious problem. During the period studied, there was nearly double the annual total of disasters declared for climate-related events as in the period of 1960-2010 combined.

“Moreover, this [wildfire disaster] does not stand alone as evidence of this impact, with other climate-related events leading to challenges for Americans in finding affordable insurance coverage – from severe storms in the Great Plans to hurricanes in the Southeast,” Yellen said in a statement. “This report identifies alarming trends of rising costs of insurance, all of which threaten the long-term prosperity of American families.”

Both homeowners and insurers in the most-affected areas were paying in other ways as well.

Nonrenewal rates in the highest-risk areas were about 80% higher than those in less-risky areas, while insurers paid average claims of $24,000 in higher-risk areas compared to $19,000 in lowest-risk regions.

In the Southeast, which includes states such as Florida and Louisiana that frequently are slammed by hurricanes, the claim frequency was 20% higher than the national average.

In the Southwest, which includes California, wildfires tore through 3.3 million acres during the time period, with five events causing more than $100 million in damages. The average loss claim was nearly $27,000, or nearly 50% higher than the national average. Nonrenewal rates for insurance were 23.5% higher than the national average.

The Treasury Department released its findings with just three days left in the current administration. Treasury officials said they hope the administration under President-elect Donald Trump uses the report as a springboard for action.

“We certainly are hopeful that our successors stay focused on this issue and continue to produce important research on this issue and think about important and creative ways to address it,” an official said.

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