Connect with us

Economics

The risk of election violence in America is real

Published

on

THERE ARE countries in the world where machete-wielding teenagers intimidating voters are a routine part of elections. America is not normally among them. Yet on October 29th an 18-year-old man in Florida was arrested for doing exactly that. Caleb James Williams was, according to local police, part of a group of eight young men hanging out in the parking lot of an early-vote polling station in suburban Jacksonville, waving Donald Trump flags and chanting slogans. Mr Williams allegedly “brandished a machete in an aggressive, threatening posture over his head” at two women who were supporting Kamala Harris.

In late October two ballot boxes, one in Washington state and one in Oregon, were set alight. In Arizona, on October 24th, a 60-year-old man was arrested in connection with three incidents where a Democratic National Committee office was shot at, first with a BB gun, and then with real bullets. In Michigan, on November 2nd, a 55-year-old man was charged after allegedly accelerating his car at Harris campaign canvassers, while calling for them to be exterminated. And in July, one candidate, Donald Trump, was almost assassinated.

Many Americans fear it could get worse. Three-quarters of Americans say that they are worried about post-election violence, according to the AP/NORC poll. Some businesses in Washington, DC, have boarded up their windows, apparently for fear of riots. A few larger businesses are quietly preparing for potential disruption by cancelling meetings and suggesting employees work from home. Readying for potential unrest, some media organisations have even redeployed correspondents from warzones. A few media organisations are warning darkly of “civil war”. But how bad could it really get?

“I am not a panic peddler,” says Sheriff Tom Dart of Cook County, Illinois. “I am just sitting on data that is indisputable…saying that we’ve never had more people saying political violence is OK.” Mr Dart is among the most prominent of 200 law-enforcement officers who have been briefed by Robert Pape, an academic at the University of Chicago who studies political violence. Mr Pape has been surveying voters, both remotely and in person at rallies. Based on this evidence, he is frank: “We are going forward into a season of political violence.”

Underpinning this is data showing that significant minorities—a fifth of Americans—say they support the use of violence to either restore Donald Trump to the presidency or else to prevent him from taking it. That finding, Mr Pape argues, is roughly analogous to discovering there is a lot of dry wood in a forest. It does not necessarily mean that an enormous wildfire will break out. Nor does it tell you much about what sort of spark could set it off. But it means that you should be prepared.

What would violence look like if it happened? Much depends on the results. If Ms Harris appears to be winning in a close count, one possibility is protests at places where counts are being held (as happened in 2020), fuelled by conspiracy theories about fraud. Even if she won clearly, currently sporadic violent incidents against Democrats by amped-up or paranoid individuals could escalate. By contrast, if Mr Trump wins, the fear would be widespread protests in big cities, some of which could turn into violent rioting. Mr Pape stresses that his data suggest people on both sides of the political divide are supportive of violence.

The risk, however, is not evenly balanced. Another survey by the Public Religion Research Institute, a think-tank, suggests Republicans are over three times as likely as Democrats to believe that “true American patriots may have to resort to violence to save the country”. And incitement can turn support for violence into action. In the final weeks of the campaign, Mr Trump has come close to that. At one of his final rallies in Pennsylvania on November 3rd he appeared to make a joke about how he “wouldn’t mind” if somebody shot at the “fake news” journalists covering him, and suggested that “demonic” Democrats “are fighting so hard to steal this damn thing”.

One concern is that viral online posts claiming to offer proof of electoral fraud or irregularities will inspire people to take to the streets. A recent illustration of just how quickly “rage bait” can spin out of control came from the (false) claim that Haitians were eating dogs in Springfield, Ohio. That was then amplified by Mr Trump and his running-mate, J.D. Vance. It led to over 30 bomb threats against schools and government buildings. Already hundreds of posts have claimed to show evidence of election fraud, and many more are certain to follow on and after election day. False claims are also fanned by foreign adversaries: a viral video purporting to show Haitian immigrants illegally voting in Georgia turned out to be Russian election interference, America’s intelligence agencies said last week.

Yet there are reasons to be optimistic for a smoother ride than in 2020. Local officials are better prepared. In Michigan, poll workers have been given special phone numbers to contact law enforcement if they are threatened. In Philadelphia’s, ballot-counting  has been moved from the city centre location warehouse , where in 2020 Mr Trump’s supporters banged on the windows demanding to “stop the count” to a suburban warehouse, is now surrounded by barbed wire. “Do we think it’s possible there’s going to be protests at election warehouses? We’ve already seen that, so, yeah, we’re planning for that. Do we think that folks are going to get threatened? Yeah, we’re planning for that,” says Adrian Fontes, Arizona’s Democratic secretary of state. According to the Brennan Centre for Justice, a think-tank, 92% of local election officials across America have taken steps to improve election security and staff safety.

Will it be enough? Predictions of imminent civil war are clearly overblown. Even widespread violence seems unlikely. But irregularities and a few bad incidents are inevitable (and happen at every election). “The notion that all police departments are going to be up to speed on election law is wildly naive,” worries Mr Dart, the sheriff in Illinois. After all, America has almost 18,000 police departments. Small forces are not all trained in active-shooter response, best crowd-control practices or in riot equipment and weapons, says Brian Higgins, a former cop and now a crowd-control expert at John Jay College of Criminal Justice.

Overall, police seem prepared. And election officials have put measures in place, including live feeds of drop boxes, in an attempt to build trust in the process. Sending a signal that political violence will be severely punished would help. Unfortunately Mr Trump is conveying the opposite message to his supporters—by promising to pardon January 6th rioters if re-elected. As long as violence is not roundly condemned, it is impossible to rule out.

Accounting

How to Reconcile Cash Flow Statements with Bookkeeping Records

Published

on

Reconcile Cash Flow Statements with Bookkeeping Records

In the world of financial management, reconciling cash flow statements with bookkeeping records is an essential process that ensures financial accuracy, transparency, and alignment. Far from being a routine task, this practice validates financial reports and offers deep insights into an organization’s financial health. Let’s explore the steps and strategies involved in this critical reconciliation process.

Understanding the Reconciliation Process

At its heart, reconciling cash flow statements involves comparing them with the general ledger and bank statements. This three-way alignment ensures that all cash movements are accurately recorded and categorized. By identifying discrepancies, businesses can maintain trust in their financial data and make more informed decisions.

Step-by-Step Reconciliation

A systematic approach to reconciliation is vital. Start by confirming the opening and closing cash balances in the cash flow statement against the corresponding balances in the ledger and bank statements. Next, work through the three sections of the cash flow statement: operating, investing, and financing activities. This methodical process ensures every transaction is accounted for and helps isolate variances quickly.

Leveraging Financial Software for Automation

Advanced financial software can significantly simplify the reconciliation process. Many platforms now include automated tools that flag discrepancies, generate exception reports, and streamline adjustments. These technologies not only save time but also reduce the likelihood of human error, enabling finance professionals to focus on analysis and decision-making.

Addressing Non-Cash Transactions

Non-cash transactions such as depreciation, amortization, and unrealized gains or losses require special attention. While these items do not directly affect cash balances, they are integral to accurate financial reporting. Ensuring these transactions are correctly recorded in the cash flow statement without artificially altering cash totals is crucial for maintaining transparency.

Maintaining Accurate Timing

Timing discrepancies are a common source of variance during reconciliation. To prevent mismatches, ensure that all transactions are recorded in the correct accounting period. This practice not only avoids artificial discrepancies but also provides a clear and accurate picture of cash flow for the designated timeframe.

Documenting the Reconciliation Process

Thorough documentation is a cornerstone of successful reconciliation. Every adjustment made during the process should be explained and supported by detailed notes. This practice creates a clear audit trail, simplifies future reconciliations, and ensures transparency during external audits.

Benefits of Regular Reconciliation

Frequent reconciliation offers numerous advantages. It ensures that financial statements remain accurate and compliant with regulatory standards, strengthens internal controls, and enhances decision-making capabilities. Moreover, regular reviews can uncover inefficiencies, detect fraud, and provide early warnings about potential cash flow challenges.

Conclusion

Reconciling cash flow statements with bookkeeping records is more than a compliance requirement—it is a strategic process that safeguards financial integrity and supports sound decision-making. By adopting a structured approach, leveraging technology, and paying close attention to non-cash transactions and timing, businesses can achieve financial alignment and transparency.

For finance professionals and business leaders, mastering this process is key to maintaining accurate financial records, building stakeholder trust, and driving sustainable growth in today’s competitive business environment.

Continue Reading

Economics

PCE inflation December 2024:

Published

on

Customers shop for food at a grocery store on Jan. 15, 2025 in Chicago, Illinois.

Scott Olson | Getty Images News | Getty Images

Inflation closed out 2024 on a strong note, as a price gauge the Federal Reserve focuses on came in well above the central bank’s target.

The personal consumption expenditures price index increased 2.6% on a year over year basis, 0.2 percentage point higher than the November reading and in line with the Dow Jones estimate.

Excluding food and energy, core PCE registered a 2.8% reading, also meeting expectations and the same as the prior month. Though the Fed considers both readings, historically officials have seen core as the better gauge of long-run inflation.

On a monthly basis, headline PCE rose 0.3% while core increased 0.2%, both in line with forecasts as well.

The Fed targets annual inflation at 2%, a level the price gauge has not seen since February 2021.

The report comes two days after the central bank voted unanimously to hold its key interest rate in a range between 4.25%-4.5%, taking a break after three consecutive cuts totaling a full percentage point.

In remarks delivered Friday morning, Fed Governor Michelle Bowman said she expects inflation to decelerate through 2025, but thinks the central bank should stay on hold until there are clear signs that is happening.

“There is still more work to be done to bring inflation closer to our 2 percent goal. I would like to see progress in lowering inflation resume before we make further adjustments to the target range,” Bowman said in remarks before business leaders in Portsmouth, N.H. “I do expect that inflation will begin to decline again and that by year-end it will be lower than where it now stands.”

The report Friday also showed that personal income increased 0.4% as forecast, while spending rose 0.7%, or one-tenth of a percentage point ahead of the estimate.

This is breaking news. Please refresh for updates.

Continue Reading

Economics

German inflation, January 2025

Published

on

Customers waiting at the checkout in a supermarket.

Markus Scholz | Picture Alliance | Getty Images

German inflation was unchanged year-on-year at 2.8% in January, preliminary data from the country’s statistics office Destatis showed Friday in the last reading before Germans head to the polls next month.

The reading was also in line with a forecast from economists polled by Reuters. The print is harmonized across the euro area for comparability. 

On a monthly basis, the harmonized consumer price index fell by 0.2%

Germany’s inflation rate has now stayed above the European Central Bank’s 2% target for the fourth month in a row, after falling below that threshold in September last year.

This roughly mirrors the development of re-accelerating inflation in the wider euro area. The European Central Bank on Thursday said that disinflation in the bloc “is well on track” and has broadly developed in line with staff projections.

Euro area inflation came in at 2.4% in December. The January figures are slated for release next week.

The January inflation print is among the final key economic data released before Germany’s election on Feb. 23, which is taking place earlier than originally scheduled after the collapse of the ruling coalition in November 2024.

Germany’s economy has been one of big topics during campaigning next to immigration, as the country has been grappling with lackluster economic growth and the renewed rise of inflation.

The government earlier this week slashed gross domestic product expectations to 0.3% for full-year 2025, after annual GDP contracted in the last two years. Quarterly growth has also been sluggish, even as the economy has so far avoided a technical recession characterized by two consecutive quarter of contraction.

Non-harmonized inflation is expected to average 2.2% this year, the government added in its annual economic report.

This is a breaking news story. Please check back for updates.

Continue Reading

Trending