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Binyamin Netanyahu is alienating Israel’s best friends

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One day more than 30 years ago, during the administration of President George H.W. Bush, the secretary of state, James Baker, flung a newspaper article at an aide, Daniel Kurtzer, and declared he was going to eject the Israeli ambassador. He was furious about a quotation he had just read from the deputy foreign minister of Israel, Binyamin Netanyahu.

Mr Kurtzer pleaded for 24 hours to check that the quotation was accurate. He learned that Mr Netanyahu’s wording was slightly different from what had been reported, but still shocking: America, Mr Netanyahu had said, “is building its policy on a foundation of distortions and lies”. The ambassador got a reprieve, but Mr Baker declared Mr Netanyahu persona non grata and banned him from the State Department.

A few years later, in 1996, Mr Netanyahu became prime minister, and it was President Bill Clinton’s turn to be insulted. “Who the fuck does he think he is?” Mr Clinton vented to aides, after receiving a lecture on how to deal with Arabs during his first meeting with Mr Netanyahu. “Who’s the fucking superpower here?”

Even Donald Trump, who as president delivered item after item on Mr Netanyahu’s wish-list, found himself blindsided by a classic Netanyahu manoeuvre to box America in. When the two men appeared in the East Room of the White House to announce a peace plan they had arrived at without Palestinian participation—the plan went nowhere—Mr Netanyahu declared it meant Israel could now annex parts of the occupied West Bank. “This was not what we had negotiated,” a flabbergasted Jared Kushner, Mr Trump’s son-in-law and lead negotiator, would later write in his memoir, “Breaking History”. “I grabbed my chair so intensely that my knuckles turned white, as if my grip could make Bibi stop.”

Far more than the unpractised Mr Kushner, President Joe Biden had reason to hope that his grip would be enough to restrain the prime minister, whom he had alternately jousted and joked with for decades, since back before Mr Baker imposed his ban. But since Hamas’s rampage into Israel on October 7th, Mr Netanyahu has repeatedly rejected Mr Biden’s counsel about the war and scorned his vision for its aftermath. That is what provoked Chuck Schumer, the Senate majority leader, to give an extraordinary, anguished speech on March 14th naming Mr Netanyahu along with Hamas as an obstacle to peace and calling for an Israeli election to oust him. Mr Netanyahu, he said, “has lost his way”.

Mr Netanyahu and other Israelis would be making a mistake to interpret the speech as just another bump in the often rocky road the allies have travelled since the founding of Israel. “This is very different,” says Mr Kurtzer, who went on to serve as the American ambassador in Cairo and then Tel Aviv. “The Israelis will need to understand that this is a wake-up call, if nothing else has persuaded them that they’re running into a problem with us.”

Mr Schumer, the highest-ranking elected Jewish official in American history, is no fair-weather friend of Israel. Back when Mr Netanyahu outraged Barack Obama’s White House by attacking Mr Obama’s proposed nuclear deal with Iran in a speech to a joint session of Congress, Mr Schumer was one of only four Senate Democrats to vote against the deal. Mr Schumer is also no progressive. Now aged 73, he was at pains in his speech to point out that “unlike some younger Americans” he was of a generation “within living memory of the Holocaust”. He described pressing a transistor radio to his ear at high school as he fearfully tracked news of the Six Day War.

Mr Schumer is a political animal, as alert to danger in his surroundings as they come, but it is doubtful that he was worrying about Mr Biden’s chances of winning Michigan. Mr Netanyahu should worry instead that, given Mr Schumer’s political sophistication, he was correct in saying he spoke for “a silent majority” of Jewish Americans, people, he said, “who love Israel to our bones” yet take a nuanced view of the war in Gaza. Mr Schumer repeatedly condemned Hamas and a double standard in the news media that put all the blame for Palestinian suffering on Israel. But, he said, both Israel and the United States had a “moral obligation” to do more to protect Palestinian civilians: “We must be better than our enemies, lest we become them.”

Mr Netanyahu responded on March 17th by saying that calling for elections in Israel now would be like having called for elections in America in the wake of the attacks of September 11th 2001. “You don’t do that to a sister democracy, to an ally,” he told cNN. But Mr Biden has made clear that he approved of Mr Schumer’s message. “He made a good speech,” he told reporters.

Moving America

Mr Netanyahu was partly brought up and educated in America, and he prides himself on understanding how to manage its politics. “I know what America is,” he remarked once, apparently unaware he was being recorded. “America is a thing you can move very easily.” Maybe not this time. Given the polarisation of foreign policy, he can count on Republican backing, but bipartisan support of Israel has always been a bulwark of its security and, having lost Mr Schumer, Mr Netanyahu has all but lost the Democrats.

Even before Mr Schumer spoke, Mr Biden had boxed himself in, saying if Israeli forces conducted a major operation in Rafah in the southern Gaza Strip they would be crossing “a red line”. He has required “credible and reliable” assurances from Israel that it is using military aid in compliance with international humanitarian law. The Americans will soon decide whether they are satisfied with those assurances. Mr Schumer has dramatically strengthened Mr Biden’s hand, should he choose to find Israel is misusing American weapons. The anger of America’s leaders is directed at Mr Netanyahu, but Israel may wind up paying the price.

Read more from Lexington, our columnist on American politics:
“Dune” is a warning about political heroes and their tribes (Mar 14th)
Has Ron DeSantis gone too far in Florida? (Mar 7th)
Vladimir Putin hardly needs to interfere in American democracy (Feb 29th)

Also: How the Lexington column got its name

Accounting

Business Transaction Recording For Financial Success

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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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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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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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