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Finance: Crypto On Metamask As An Enticing Investment

Cryptocurrencies are increasingly being used as an investment and a certain gold rush mood can often be felt. For small investors, however, these investments represent a highly speculative and risky investment alternative. You have to know how metamask works before investing using your crypto wallet.

The cryptocurrency Bitcoin has been on the market for over 10 years. More and more service providers and product providers accept payments in digital currencies. As an investment, they promise high profits but also harbor enormous risks, including total loss.

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Investing in cryptos on metamask: Consumer tips

Cryptocurrencies are progressively becoming a new asset option. The technology remains. Nonetheless, with the enormous fluctuation in value, the call for more regulation is growing. For the moment, cryptocurrencies are just a highly speculative asset for internet and technology-savvy investors looking for high revenues.

What to consider when investing in cryptocurrencies

  • Only invest in cryptos if you can do without this money in case of doubt.
  • As with strongly changing asset classes, it is wise to invest only a minimal part. It’s no more than a maximum of five percent of the total assets.
  • Stay up-to-date about what is going on in the crypto market, especially the currency in which you have invested money.
  • Diversification is also worthwhile with crypto. Invest in different cryptocurrencies along with equity funds and traditional assets.
  • Credit-financed investments are taboo.
  • Pay attention to contract details when investing in cryptocurrency and always check the company’s place of jurisdiction for internet trading platforms.
  • Do not respond to unsolicited emails or promotional offers.
  • When in doubt, always seek independent advice.

How to invest in cryptocurrencies?

For digital money, you first need a digital purse, also known as a wallet, on your computer, smartphone, or another storage medium. The registration process on one of the crypto exchanges takes place through a personal/video verification process. There are numerous options for profiting from short-term price fluctuations or the ongoing crypto trend.

In the second step, there is the option of buying and selling cryptocurrencies directly on digital marketplaces, on crypto coin exchanges, on trading platforms or exchanging them for a legal currency at the current rate. Investors who are willing to take risks only need sufficient capital for this. The difference between crypto exchanges lies in their liquidity and the number of cryptocurrencies offered.

Risk of cryptocurrencies

Digital currencies are subject to immense price fluctuations and carry a high risk. Double-digit fluctuations in value in one day are not uncommon. If you want to exchange your invested money back into real currency, there may be a significant loss in value.

How Bitcoin Losses Translate to Taxes

Bitcoin Trading

Bitcoins are a digital, anonymous, central bank-independent currency. But many don’t really know what exactly that is and how it works. What is widely perceived, however, are press releases about the extreme increases in value, especially in recent times. At the beginning of 2017, Bitcoin was still trading at around $1,000 on exchanges and platforms such as https://bitcoin360ai.com/nl/ – and on November 28, 2017, it cracked the $10,000 mark.

On December 6, the price broke through the $12,000 mark, on December 7 it even broke the $14,000 mark, and just before Christmas, it was worth a whopping $20,000! After Christmas, however, the price was again around 17,000 dollars. Anyone who is now the happy owner of a Bitcoin considers whether he should turn the gigantic virtual price gains into real money gains and what tax consequences this probably has.

The tax authorities have clarified that Bitcoins can be the subject of a private sale transaction pursuant to § 23 para. 1 no. 2 EStG (BT-Drucksache 17/14530 of 9.8.2013, p. 40).

This means:

  • The exchange or exchange of Bitcoins into euros or another cryptocurrency within one year after purchase leads to a private sale transaction in accordance with § 23 para. 1 no. 2 EStG. So if euros are exchanged for Bitcoins, the economic asset “Bitcoin” is purchased. You should definitely record the time of purchase, purchase price, and purchase quantity.
  • If Bitcoins are sold again within 12 months of purchase, i.e. exchanged for euros, profits are taxable in full as “other income” according to § 22 No. 2 EStG at the individual tax rate. However, withholding tax does not apply to this. However, a profit remains tax-free if it remains below the exemption limit of EUR 600. Losses may only be offset against profits from private sales transactions, namely by offsetting losses in the same year and by deducting losses in the previous year and/or in subsequent years. The transactions shall be indicated in “Appendix SO”.
  • If the sale of Bitcoins takes place after 12 months, profits are completely tax-free and losses are tax-irrelevant.
  • If Bitcoins are purchased one after the other and held in the same custody account, the “First in, first out” rule applies: For the calculation of the speculation period and the capital gain, the first Bitcoins purchased are considered to be sold first (FinMin. Hamburg of 11.12.2017, S 2256-2017/003-52).
  • If interest income is generated from the Bitcoin investment as a source of income for at least one year, the speculation period is extended from 1 year to 10 years (§ 23 para. 1 no. 2 sentence 3 EStG).

 

ALSO READ: Importance Of Financial Plan

 

If cryptocurrencies are purchased or produced in the context of commercial activity with the intention of making a profit, profits from the sale or exchange of the cryptocurrency are to be recorded within the framework of the “income from commercial operation”. The cost of mining the cryptocurrencies is deductible as operating expenses.

Currently, certain tax courts have expressed doubts about the opinion of the tax authorities. It is true that there is only one decision in a so-called suspension procedure; the decision on the substance of the case is therefore still pending. However, the judges point out that the Federal Finance Court has not yet decided on the tax treatment of cryptocurrencies. Therefore, there are considerable doubts about the legality of the taxation of cryptocurrencies, which would justify a suspension of the enforcement of the contested tax assessment.

How Finance Majors can Find a Good Investment?

Finance majors are often stereotyped as being unemotional and uncaring. In reality, however, most finance majors want to help people make smart financial decisions that benefit them in the long run. 

While many people think of investing as a risky venture that you should avoid if you want to keep your money safe, there are many ways for a finance major to invest wisely. Here are some tips from experts on how you can invest well and responsibly as a finance major.

Research Your Investments

Before you invest, see to it that you have made thorough research on the company whose stock you are planning to buy.

This is important because the company’s health will be the deciding factor in how much your investment is worth. If a company is in trouble, you could lose all of your money if the company goes out of business. So before you make any investments, you need to make sure you know all the factors that could affect the company’s success, including the people in charge and the current market conditions.

Diversify Your Investments

One of the most important things you can do as a finance major is to diversify your investments. Simply speaking, don’t put all your eggs in a single basket. 

Instead, you should spread your money out over several different investments, like investing in wholesale bathroom cabinets. One great way of doing this is by investing in mutual funds. Mutual funds are baskets of stocks that allow you to diversify your money across many different companies at once.

You can also diversify your money by investing in stocks, bonds, and other assets. One important thing to keep in mind is that you should never invest so much money in one place that you can’t afford to lose it.

Don’t Invest on Something You Don’t Understand

One of the biggest mistakes a finance major can make is to invest in a single asset they don’t understand. For example, if you don’t know anything about real estate, you shouldn’t invest in real estate.

Although it’s often tempting to invest in the latest hot stock or newest tech company, it’s important to make sure that you understand the investment so that you don’t end up losing your money. If you’re not sure what investment is right for you, you can always consult with a financial advisor or make use of robo-advisors to make investing easier.

The Key to Financial Freedom: Is It Really Good Credit?

There is a lot of conflicting information out there regarding the financial freedom achieved by achieving good credit. Some sources claim that having good credit can help you achieve financial freedom faster, while others scoff at the notion of trusting credit agencies with your money and suggest avoiding them at all costs. But what does good credit have to do with financial freedom? Well, let’s take a look.

What is Financial Freedom?

Financial freedom is the goal of earning enough income that you don’t need to rely on any external sources, like credit, to pay your bills.

The goal of achieving financial freedom is to become independent from outside creditors, enabling you to live debt-free. 

Financial freedom is a confusing term. On the one hand, it means not having to work a traditional job to pay your bills. Rather, it means earning enough money through passive income that you can live without having to work at all. Or depending on someone’s perspectives, it can be making money through trading using the best platforms by performing traders with edge comparison.

Most people don’t achieve financial freedom in their lifetime. However, some people do. After all, it largely depends on your tenacity and commitment to make everything work your way.

How Good Credit Helps You Achieve Financial Freedom Faster?

There are many reasons why good credit can help you achieve financial freedom faster. The most obvious is that it enables you to borrow money at better rates and terms.

People with good credit often have access to lower interest rates and better terms, such as longer repayment periods, than people with poor credit, who are often charged higher rates to compensate lenders for their perceived risk of default.

Other Ways Good Credit Helps You Achieve Financial Freedom Faster

There are a few other ways good credit can help you achieve financial freedom faster. One is that it can help you save money on insurance premiums. Some insurance companies use a person’s credit history to determine the cost of their policies, including car insurance and homeowners insurance.

If your credit is good, you may be able to get cheaper rates on your insurance policies, saving you money over the course of your lifetime.

Good credit can also help you open a business. Many banks require business owners to have a high credit score, along with a healthy amount of equity, to get a business loan.

UN’s WFP Says Continuing Attacks in Ukraine is Fast Becoming a War on Food Security

As Russia’s attacks on Ukraine are likely to extend beyond summer, U.S. Congress passed a bill granting $40 billion in aid to the country led by Pres. Zelensky. Last May 06, the UN World Food Programme (WFP) aired concerns that the global hunger crisis could spin out of control if the food being produced in Ukraine cannot flow freely across the globe. Unbeknownst to many, the war-torn country is a major exporter of agriculture products, providing food to around 400 million people worldwide.

According to the WFP, the ports in Odesa and other Ukrainian ports located along the Black Sea are blocked because of the ongoing war. That being the case, millions of metric tons of grain remain stored in Ukraine silos as ships are unable to transport them because of the conflict.

Prolonged Armed Conflict in Ukraine Could Result to Global Famine

Currently, the WFP’s main problem is food pricing, but the continuing lack of food supply could very well become a food availability problem in 2023. David Beasley, the Executive Director at World Food Programme warned that

“during this unprecedented crisis, not allowing the ports of Ukraine to let the supply of food flow freely is akin to declaring
war on global food security.”

Mr. Beasley urges all parties involved to permit the supply of food to leave Ukraine so it can reach places where it is desperately needed. He added that they are running out of time as the result of continuing inaction is the looming threat of famine.

While Ukraine’s grain silos remain full, 44 million people across the globe are facing starvation. Based on WFP’s analysis, the number could rise to 47 million if the war continues. WFP studies show that since the start of 2022, 276 million people worldwide have been experiencing acute hunger. The UN WFP Director says the world demands the opening of the Ukraine ports so that food supply can move out of Ukraine.

70 Major Donors Formally Notify Senator Sinema of Their Intent to Support Another Candidate

Donors who backed Senator Kyrsten Sinema in past political campaigns are now looking to support another Democratic candidate who will run in the 2024 elections. In a missive sent to the Arizona senator, 70 major donors in all conveyed their disappointment and apprehension over the preservation of democracy  if the Freedom to Vote Act is not approved by Congress.

Many of the donors who gave the maximum allowable donation to the senator’s 2018 campaign were disappointed because instead of protecting democracy against authoritarian threat, Sinema along with Joe Manchin has been opposing the Democratic party’s priorities, including the change in the filibuster rule. .

As it is, every Democrat in the Senate needs to vote in agreement with the weakening of the filibuster rule in order to create a tie, which VP Kamala Harris would break by a single vote in favor of the Democratic Party.

Another issue that has stirred a backlash from donors is Senator Sinema’s refusal to show support to Biden’s Build Back Better Act, which up to now has been stalled in the Upper House.

What Some Donors are Saying Individually Against Sinema

According to a report by CNBC, top party donor and philanthropist Trey Beck that he plans to financially support U.S Rep. Ruben Gallego to run against Sinema as 2024 democratic primary candidate.

A former anonymous donor of Sinema shared with CNBC that they have stopped trying to understand the senator’s motivation on what she alleges as bipartisan support. Although the letter addressed to Sinema said that bipartisanship must be reciprocal for it to work, the unnamed donor added that they don’t really care much at this point and that they would simply prefer an alternative candidate to support.

FEC Takes Note of Republican Rep. Boebert’s Misuse of Campaign Funds for Personal Expenses

New filings with the Federal Election Commission (FEC) reveal that Republican U.S Rep. Lauren Boebert used campaign funds in paying her utility and rent bills.

Although Boebert filed a subsequent report to the FEC last Tuesday showing the Congresswoman replaced the $6,650 worth of campaign spent for personal bills it does not change the fact a violation has been committed. Under federal campaign finance laws, disbursing campaign money for personal use is strictly prohibited.

The Republican congresswoman or her representatives have not given any comments regarding this particular issue, since the action taken to replace the misused campaign funds took place months after the FEC report was filed.

Details of Republican Representative Boebert’s Misuse of Campaign Funds

Rep. Boebert’s payments in question were four separate installments. Two of which are worth $2,000 each while the other two are worth $1,325 each. The payments were reviewed and it was noted that the were made on the same date and have similar descriptions. All were sent to a person named John Pacheco through his location at the Shooters Grill in Rifle, a business owned by Boebert. However the relationship between Boebert and Pacheco is yet to be clearly established to determine if Pacheco used the money to pay for the utility bills of Boebert’s Shooter Grill.

The most recent violation involves a Venmo transaction included in Beebert’s July campaign finance report in July to the Congressional committee. It was simply described as a personal expense of Boebert that was erroneously billed to her campaign account but has been reimbursed and duly returned.

As a matter of procedure, FEC officials have asked Boebert to clarify the matter. However only Jake Settle, Boebert’s spokesman gave a reply explaining that the payments were personal for Boebert’s personal expenses.

Through a letter, FEC Senior Campaign Finance Analyst Shannon Ringgold warned the Congresswoman that they may consider taking legal action if the campaign fund payments were for her personal use. Still, they might be able to give Boebert a chance to avoid legal action if prompt action is taken in acquiring reimbursement of the funds.

In line with the advice, the Congresswoman filed a supplemental report that the necessary reimbursements have been made last Tuesday. The formal report about the reimbursement of the personal expenses will be included the next reporting period due this October.

SC Upholds Authority of FHFA to Collect Profits on Bailout Money

On June 23, the U.S. Supreme Court issued a ruling on the lawsuit filed by Fannie Mae and Freddie Mac investors versus the Federal Housing Finance Agency (FHFA). Supreme Court Justice Samuel Alito ruled that even if FHFA’s structure is flawed to the point of being unconstitutional, he and all other SC Justices unanimously agreed that the profits being collected by the FHFA in favor of the government, do not exceed the statutory authority of the federal agency.

The SC concluded that while FHFA was structured unconstitutionally this was stipulated by Congress so that the incumbent could not easily replace the director of the agency, in case the priority policies of the FHFA are contrary to that of the sitting POTUS.

While the ruling did not grant the $124 million dividends beng claimed by Fannie Mae and Freddie Mac investors from the FHFA, the ruling granted incumbent president, Joe Bident, the right to replace the Director of the FHFA.

That being the case, Pres. Biden lost no time in removing FHFA Director Mark Calabria and appointing Sandra L. Thompson as interim director. The move further deemed hopes of Fannie Mae and Freddi Mac investors to privatize the two government-backed financial institutions. As it is, President Biden is not in favor of privatization deals as he intends to tap on the resources of the agency in addressing and solving the country’s massive housing problem.

What Exactly is the FHFA?

The FHFA was established by Congress as overseer-conservator of the $190 million bailout money that the government infused in Freddie Mac and Fannie Mae to keep the two financial institutions solvent during the 2007-2008 financial crisis.

Freddie Mac and Fannie Mae are government-backed entities that bought deed of real estate mortgages from lenders and then sold them as investment products to private investors.

At first, private shareholders realized huge profits from collecting the payments due from home mortgage borrowings. However, because of the subprime loans that ballooned into amounts that borrowers could no longer afford to pay, Fannie Mae and Freddie Mac stood at risk of becoming insolvent.

To keep the two financial institutions afloat, the government infused taxpayer money with Congressional approval but subject to the oversight of the FHFA to protect the government’s investment. As Fannie Mae and Freddie Mac’s conservator, the FHFA conservator directed all profits to the government’s Treasury Department.

However, private shareholders od the two institutions are claiming that as much as $124 million has been overpaid to the government, which they tried to claim by seeking the intervention of legal courts.

However the only aspect found unconstitutional by the Supreme Court about the FHFA, is the condition that prevents an incumbent president from replacing the Director of the agency.

Biden Open to Good Faith Negotiations Over Infrastructure Plans

Republicans are expected to oppose the 28% corporate tax hike to augment federal funds for Pres. Biden’s proposed $2.3 trillion infrastructure plan. That being the case, the President announced that he is willing to discuss and negotiate with Republicans and Democratic senators alike; but he will not allow inaction to hamper his push for major economic developments.

A week earlier, Pres. Biden presented details of the $2.3 trillion infrastructure plan, which include pumping more than $620 billion into transportation projects specifically for rebuilding 20,000 public roads and reinforcement of 10,000 existing bridges. An estimated $111 billion will be spent to improve water infrastructure by replacing lead pipes that contaminate drinking water, while $100 billion will be used for broadband infrastructure projects.

According to the Treasury Department the proposed 28% corporate tax hike aims to raise $2.5 trillion within a period of 15 years. Still, President Biden says he is wide open to negotiations for a lower tax hike but insisted that the government will need funds to pay for the projects. However, he made it clear that he is open to good faith negotiations, as well as to hear good ideas from lawmakers he plans to meet with in the weeks ahead.

What Republican Lawmakers are Opposing?

Most Republican lawmakers are voicing opposition against spending on incentives to encourage Americans to shift to electric vehicles. Affordable health care for all is another issue that Republicans will vote against, whilst questioning its relevance to infrastructure plans.

Senate Minority Leader Mitch McConnell of Kentucky who spoke last Monday said outright that President Biden’s plan is “something we are not going to do.” Actually and traditionally, any Democratic plan is something that Republicans are always opposed to without any logical reason.

The former majority senate leader who had blocked nearly all Democratic proposals during the Trump administration said the GOP will not support a plan that relies on corporate tax hikes. That is considering that President Biden’s proposed 28% corporate rate is still lower than the 35% corporate tax rate that Republicans had cut down to 21% during the Trump administration.

West Virginia Sen. Joe Manchin, albeit a Democrat, told a local news station that he will not vote for the boosting of corporate rate to 28%. Nonetheless, Manchin said he is in favor of closing existing tax loopholes that enable the wealthy to reduce their income tax payments. Additionally, Manchin said that he would consider supporting a corporate tax hike of 25%.

FinCen’s Proposed Ruling for Cryptocurrency Use Still Looms as a Major Concern

Bitcoin continues to gain support from major companies that have recently unveiled plans of accepting bitcoin and other cryptocurrencies as payment forms. Yet concerns on how the U.S. Treasury Department plans to regulate the use of cryptocurrencies still loom as potential factor that could affect the benefits of using crypto money for online transactions.

Prior to President Biden’s assumption of office, the U.S. Financial Crimes Enforcement (FinCen) put forward a proposed rule to the Treasury Department. The FinCen rule recommends requiring all businesses handling money services to collect information about the identity of their respective customers. The proposed rule, specifically mention the inclusion of cryptocurrency exchange operators, for which the collection of information will also include those pertaining to other individuals with whom their customers transacted using the ewallet of the cryptocurrency exchange site. .

Moreover, the proposed rule published in December by the U.S. FinCen, require licensed businesses to maintain a record of all cryptocurrency transactions amounting to more than $3,000; as well as submit a report of the record to the government, if the a specific transaction involves a transfer of $10,000 worth of cryptocurrency.

While the rule has not yet been adopted, the possibility that stipulations cited will be enforced by the Treasury Department now headed by Biden’s appointee, Janet Yellen. Although Ms. Yellen conveyed in the Senate Appointment Committee that she is open to the regulated use of cryptocurrency, she made it clear that intends to curtail the use of cryptocurrency in the country. Many believe that is is unlikely that the new Treasury Secretary will scrap the proposed rule, but instead, will support its enforcement.

The pronouncement of course validated the concerns over the potential regulation of cryptocurrency in the U.S.

Lawyer of Non-Profit Digital Rights Group Airs Criticism Over the Proposed FinCen Rule

Atty. Marta Belcher, a special counsel for the non-profit digital rights group Electronic Frontier Foundation, said the FinCen Ruling, will make it difficult for people who use self-hosted wallet to remain anonymous when transacting with cryptocurrency users who use traditional storage or exchange services.

Atty Belcher asserted that the most important advantage of using cryptocurrency is the ability to keep one’s identity protected via secrecy part of cryptocurrency, from a civil liberties perspective, is the ability to transact anonymously online. FinCen’s proposed ruling will take away the ability to maintain privacy protections, particularly the secrecy of the cash being imported it into the online world.

Will Cryptocurrency Miners Be Affected by New FinCen Ruling

Many cryptocurrency miners initially thought that FinCen’s latest ruling will not affect their crypto currency mining operations in light of an earlier ruling that FinCen issued in 2014. The said ruling excluded cryptocurrency miners from being recognized as Money Service Businesses. The 2014 ruling was mainly based on the premise that their mining activities are mainly for their personal use and not for purposes of trading crypto money to other users or potential investors.

While cryptocurrency miners keep their rewards stored in their self-hosted wallets in order to maintain anonymity, It became apparent that the new FinCen ruling will affect their ability to use such rewards without having to reveal their identity and that of the users who will receive their mined rewards.

Pres. Biden Says $15/Hour Wage Hike Might Be Excluded in Pandemic Relief Package

In a recent CBS interview, Pres. Biden disclosed that the provision aiming to raise federal minimum wage to $15 could be excluded from the $1.9 relief package. Nonetheless, the President added that he would be urging Congress to pass a separate bill that will see to the promised $15 per hour minimum wage increase. He believes that it isn’t right for workers to still live below poverty wage while working more than 40 hours a week.

What Will Be Included in the $1.9 Trillion Stimulus Package

As President Biden promised, he and his Democratic allies in Congress will obtain the $1.9 trillion relief package, even without the support of Republican lawmakers. They did so through a congressional process known as reconciliation procedure. However, based on the rules of reconciliation, only legislation that impacts the federal budget will be passed in the final bill.

That being the case, the bill passed under reconciliation procedure Includes items like the $170 billion allocated for college institutions and K-12 schools. There is also a $30 billion allocation to provide citizens with assistance in the settlement of unpaid household expenses like utilities and rent.

Vermont Senator Bernie Sanders who is now the Chairman of the Senate Budget Committee said he is still exerting effort, and looking for ways of including the minimum $15/hour minimum wage hike in the $1.9 trillion stimulus bill. According to the Vermont Senator, he is counting on a team of lawyers to make a case of citing the minimum wage hike as having important budget implications in accordance with the reconciliation rules.

US-China Trade War Not Likely to End Quickly Under the Biden Administration

Even if President-elect Joe Biden officially assumes office as POTUS, the trade war started by Donald Trump vs. China is not likely to end all too quickly. .

While President-elect Joe Biden has plans of improving diplomatic relationships with China, economists and trade experts believe that the new POTUS will still use the U.S. tariffs imposed by Trump as leverage. Although China had responded by suspending imports coming from the U.S., the 10% tariff on the $300 billion worth of goods, will still come in useful as a bargaining tool to gain concessions from China.

Charles Skuba, a former senior official of the U.S. International Trade Administration (ITA) and a professor at Georgetown University opines that it would be impractical for the new POTUS to immediately make tariff reductions, as he could use them in negotiating trade deals with China.

Biden as New POTUS Can be Confronted w/ Calls to Reduce the Trump-Imposed 10% Tariffs

Since Trump failed to recognize that the tariff increases imposed on Chinese imports adversely impact U.S. businesses that rely on raw materials imported from China, Biden as the new President could be confronted with calls to reduce, if not roll back the tariffs to the original rates. While President Biden can use them as bargaining tools, China’s retaliatory action of limiting its importation of U.S. agricultural products will likewise serve as an important tool for the Chinese government’s trade negotiations.

In the meantime, American exporters, particularly the U.S. farmers will continue to suffer greatly from the lack of export trade. Not unless, the new POTUS can secure trade deals with other countries not only to make up for the lost Chinese revenues, but also to sustainably revitalize the country’s flailing agricultural industry.

Trump’s Trade War with China Only Resulted in Greater Trade Deficits

While Trump had insisted that China will bear the costs of the raised tariffs,his rhetorics and trade negotiating strategies failed to achieve the goal of reducing the trade deficits that persistently affected the country’s performance in international global trades. In fact the U.S.’ overall trade deficit went on a rise as Trump had also alienated some European governments by imposing similar tariff increases.

 

Moreover, under the Trump administration, several American companies moved their production facilities in other countries like Mexico and Vietnam, as a way to avoid paying the tariffs imposed on raw materials imported from China. .

Fund-Raising Prowess of VP Hopefuls, Did It Influence Biden’s Decision?

Will fundraising abilities be a critical aspect when Joe Biden decides on his choice of Vice Presidential running mate in the forthcoming general election in November? Apparently not as much, because reports just came in that Biden chose Senator Kamala Harris as his running mate.

Financial contributions are seen as silent indicators of real voters supporting Joe Biden’s candidacy, even if only for the purpose of ousting Trump from the Oval Office. The more funds raised by a VP hopeful, the greater the number of individuals backing the members of the electoral college who will vote for the Democratic tandem. Although Trump often boasted of the huge financial backing raised by his campaign team in his behalf, most of the funds came from big donors who in recent months have started withdrawing their financial support.

 

VP Hopefuls Who Achieved Tremendous Success in Raising Campaign Funds for Joe Biden

Joe Biden has earlier remarked that he will be choosing a governing partner and has been holding one-on-one interviews to determine the best pick. In the meantime, and with the vetting process still ongoing, the fund-raising prowess of each VP hopeful is now becoming an important consideration.

Currently, Senator Elizabthe Warren is in the lead, having raised as much as $7.7 million dollar by going along with high-dollar fund raising events that she did not engage in for her own presidential candidacy. In addition, she drew as many as 50,000 attendees to her grassroots event, while also sending emails to her and Biden’s small-dollar list of supporters. The amount is still expected to increase as Warren is scheduled to hold more fund-raising events in Biden’s name.

Sen. Kamala Harris is doing great as well. According to Politico sources , her fundraising activities on behalf of Joe Biden has already raised more than $5 million.

Senator Tammy Duckworth, who after having co-headlined three fundraisers with the Biden couple, as well as after appearing in other events, contributed more than $3 million for the Democratic campaign.

Politico also reports that Susan Rice, former President Obama’s national security adviser and also a potential VP pick, was able to raise funds by simply headlining fund raising events for Biden even without the latter in attendance.

NY Gov Calls McConnell’s State Bankruptcy Bill a Dumb Idea

Angered by Republican Senator Mitch McConnell’s move to pass a bill for states to declare bankruptcy, NY Gov. Cuomo called it the dumbest idea ever.

Actually, McConnell made his remarks in connection with his and other Republican allies’ refusal in giving financial aid to Democratic States. Rather than receive bailouts coming from the $2.2 trillon coronavirus relief fund approved by Congress, McConnell wants states with steep shortfalls consider declaring bankruptcy while facing the Covid-19 crisis.

The Republican Senate leader referred to Democrats, who after pushing to spend tens of billions of dollars in helping residents in their states, namely in California, New York and Illinois, are now banking on financial aid coming from the stimulus fund in addressing their shortfalls. His statement appeared under a press release captioned as “Stopping Blue State Bailouts.”

McConnell, who apart from being senator of Kentucky is also the senate majority leader, whilst branding himself as the grim reaper of Congress. He stated the controversial remarks in response to an interview conducted by radio host Hugh Hewitt.

According to news sources, McConnell’s statements have fueled bipartisan backlash from several state governors.

NY Governor Lashes Back

In his Friday briefings about the present state of the Covid-19 crisis in New York, Gov. Andrew Cuomo (D) berated McConnell’s support of a bill that will force states to declare bankruptcy during the ongoing pandemic crisis. Apart from calling the passing of the bill as a “really dumb idea,” the NY Governor dared McConnell to pass the law, saying

“Your suggestion, Sen. McConnell, pass the law, I dare you to do that.” “Then go to the president and ‘say sign this bill that allows states to declare bankruptcy.’ …”I dare you to do that if you want to send a signal to the markets as well as send an international message that the U.S. economy is in turmoil.”

NY Republican Representative Peter T. King came out with a tweet last Wednesday, calling McConnell’s suggestions and remarks “shameful and indefensible,” whilst branding McConnel as the Marie Antoinette of the U.S. Senate.”

Republican New Hampshire Governor Chris Sununu came out with a press statement in which he called McConneell’s statements ridiculous because it means allowing a state to go bankrupt, and forego all the programs and benefits that a state has to institute, manage and operationalize for citizens.

The Real Picture Behind Trump’s Claims of Being the Greatest President in the History of the U.S.

President Trump often basks in the glory of boasting about job growth during his presidency, which his supporters readily believe.

Yet time again, economists and analysts point out that economic and job growth did not start during Trump’s presidency. His showing was only a continuance of the progress made by the Obama administration, after pulling the U.S. economy out of the “Great Recession” that lasted between December 2007 and June 2009.

Fortunately, it was President Obama who was at the helm of the government’s efforts to bring the country on the road to recovery. The financial crises of the Great Recession were wrought by toxic mortgages, breakdowns in corporate governance and excessive credit card borrowings. All of which stemmed from poor financial regulations and ineptitude by those handling the Federal Reserves.

Upon Trump’s assumption of office in the year 2017, the country was already well on its way to economic recovery. Yet even if job growth was sustained, the rate of job growth in America has not actually made an impressive change during Trump’s presidency.

Although Trump promised a GDP growth of 4%, his administration managed to post an increase of only 2.9% during the years 2017 and 2018, coming from an average GDP growth rate of 2.07% linked to economic recovery initiatives under Obama.

At the end of 2019, the rate of GDP growth plummeted to 2.00% – 2.01%; even lower than the GDP growth rate before Trumped assumed office.

The drop was largely expected in light of the trade wars that Trump initiated with other countries, particularly vs. EU-member countries and China. Many businesses, particularly the manufacturing sector were largely affected by the tariff increases imposed on raw materials being imported from China and other countries. Apparently, Trump did not have a clear idea of how tariffs actually work, since the burden of paying the costs of importing the raw materials eventually falls on the American end-users or consumers.

The Real Picture about the Economic Growth During Trump’s 3-Year Presidency

A substantial portion of the tariff collected from Chinese goods imported by U.S. manufacturers and resellers, estimated at around tens of billions of dollars were paid by American consumers. Most of the funds collected from the increased tariff collections went to subsidies aimed at supporting U.S. farmers, being the hardest hit by the U.S.-China trade war.

 

Mainly because China suspended all importation of agricultural products being supplied by American farmers, instead of caving in to Trump’s trade demands and threats.

Sallie Mae’s New Student Credit Cards : Is It Wise to Use It in Paying Down a Student Loan?

SLM Corporation, the student-loan lender commonly known as Sallie Mae, recently introduced Mastercard credit cards for college students and recent grads.

Sallie Mae’s introduction of the new credit facilities has catchy overtures. They come with a promotional offer of zero annual fee and zero interest, plus cash-back features that award an additional 25% cash-back if used to pay down a federal or private student loan.

Yet those who are not familiar with how credit cards work, should carefully read the terms and conditions.

Credit card analyst and expert, Matt Schulz of CompareCards, said cash-back returns are not big enough to worry over. What new credit card users should pay attention to are the fees, Annual Percentage Rate (APR) or interest rates, default charges and the outstanding balance of their credit card account.

Sallie Mae’s VP of Corporate Communications, Rick Castellano, is into promoting their new credit cards as a way of helping students responsibly build their credit history by rewarding them with cash-backs. Still, credit analyst Nathan Grant of Credit Card Insider, says that Sallie Mae’s unlimited one percent (1%) cash-back reward is very much the same as the cash-backs of student credit cards offered by other financial companies.

According to Grant, the bottomline is that

“Student credit cards are serious financial tools that can help build a student’s credit history only if used responsibly. Otherwise, they can be a gateway to debt when used irresponsibly,”

What Happens if You Use Your Credit Card to Pay Down a Student Loan?

Using a Sallie Mae Credit Card to pay down a federal or private student loan requires careful consideration of several factors. As opposed to business loans or personal loans, student loans, particularly federal loans, are granted under easier terms and conditions. The Sallie Mae credit cards, on the other hand, follow the same terms and conditions of conventional credit cards.

When attracted to the promise of 25% cash-back bonus, it is important therefore to first look into and compare certain aspects.

Compare the interest applied per annum on the student loan against the APR applied on credit payments. Take note that after the promotional or introductory period is over, the zero % interest ends. This denotes that the credit card balance will start accumulating daily interest based on the APR, which can be anywhere between 14.99% (15%) and 24.99% (25%).

 

The simple interest on a student loan is calculated based on the unpaid balance of the principal amount borrowed. If a student fails to pay on the due date, interest on the unpaid principal merely accrues and will be added to the next interest due on the loan. Calculations of future interests will still be based on the outstanding principal amount.

If you will use your credit card to pay down a student loan, the terms of the loan are bound to change. Any credit amount used to pay down a student debt becomes due on the next statement date following the payment. In order to avoid payment of APR-based interest, you must settle the amount in full.

If you do not pay the student loan payment in full, the student-loan payment plus any unpaid APR interest will be reflected as outstanding balance of your credit card. Keep in mind that with credit cards, the APR interest is calculated based on the average outstanding balance of your credit account and not on the unpaid portion of a credit purchase or loan payment.

Paying only the minimum amount indicated in the credit card statement will not reduce your outstanding credit card obligations. That is because minimum payments cover only the APR interest due for the month. In the meantime, the system will continue compounding interest on the outstanding credit card obligations on a daily basis, including unpaid portions of the student loan payment plus any unpaid interest from previous billings. .

Grassroots Fundraising and Its Significance to a Political Candidate

Grassroots fundraising in its simplest context is money solicited from ordinary people without any stipulation of amount contributed, in order to provide funds that will mobilize a movement and achieve a specific mission that will benefit a particular group of people. Grassroots donation has no limit in the sense that any one person can contribute on a recurring basis, to ensure that the movement will be able to have a sustained means of carrying on with its activities.

While grassroots raised funds were originally focused on projects intended to serve the community in which the funds were raised, it came to a point when political candidates had to resort to grassroots funding in launching their political bid. This was deemed acceptable as a grassroots funding purpose since supporting a political campaign, if supporting a political candidate will help push the movement toward success.

Inasmuch as raising of grassroots funds depends on the efforts of volunteers who take actions in soliciting and collecting donations, the political candidate who will utilize the money donated will not be beholden to the donors. If he or she succeeds in getting elected, the politician will be expected to honor his pledge to the multitude of grassroots donors by focusing on policies and projects that will benefit the general public; particularly the sector or public concerns requiring positive government actions.

President Barack Obama Sets an Example of a Successful Grassroots Funded Politician

Although there were other presidential aspirants like Howard Dean, Ron Paul and Bernie Sanders who utilized grassroots fundings for their political campaign, only Barack Obama succeeded in getting elected as President of the United States (POTUS). As POTUS, President Obama made good on his promise to make healthcare available for the less fortunate Americans, and to introduce policies that protect the welfare of immigrant workers.

However despite getting re-elected, political divide did not allow some of President Obama’s healthcare and immigration policies to gain full legislative support. Moreover, the current Trump administration, whose president is politically backed mostly by business institutions and wealthy members of society, continues to carry out actions that would repeal or modify some of Obama’s grassroots-oriented policies; including those addressing climate-change and gun-ownership laws.

2020 Presidential Candidates Supported by Grassroots Political Campaign Funds

Bernie Sanders launched another bid to get the Democratic Party’s nomination as 2020 presidential candidate. However, Senator Sanders is mostly making a repeat of his 2016 advocacies. That being the case, he is currently unable to expand his grassroots base beyond his loyal supporters. Senator Sanders was able to raise around $18 million as grassroots-supported campaign funds.

Democratic Senator Elizabeth Warren of Massachusetts has come to the fore as another grassroots presidentiable seeking for Democratic nomination as presidential candidate to run against Donald Trump. Senator Warren was able to raise $19.1 million in grassroots funds to launch her campaign.

 

She stands firm on her position of not accepting big-dollar contributions coming from wealthy donors. After all, Senator Warren’s political agenda is to fight for the working class people. She vows to advance policies that will require funding paid in part by hefty taxes she intends to impose on America’s super rich people.

Estate and Trust Lawyers

The field or branch of law that legal representatives are practicing is so broad and wide. In fact, even just in the practice of estates and trusts include tons of different things including estate and trust administration, estate planning, elder law, probate and many other things.

With the presence of an estate and trust lawyer on your side, they can be of help in many different things. For instance:

  • Create a plan for what’ll happen to your assets at the time of your demise
  • Avoiding probate like transfer-on-death tools, living trusts, designation of beneficiaries etc.
  • Reducing estate taxes
  • Setting up trusts for loved ones
  • Assistance with probating estates

As a matter of fact, there are more services that estate and trusts lawyers can offer like finding tradelines for sale helpful resource which can help in growing your wealth and finances.

Where they Excel Most?

Trusts and estates lawyer are more expert in handling specific types of issues. Therefore, if ever you needed an estate and trust lawyer, try finding someone who is specializing in your specific concern.

Let me give you a simple example…

One of your loved ones had passed and you need a lawyer in order to mediate in settling assets and possessions. In this regard, it will be a big help if you are going to search for someone who have accumulated years of experience in relation to probating estates in county where your loved one lived.

Make a List

No matter what the situation is, you’ll have to perform research in order to find trust as well as estate lawyers that’s best for you.

Assuming that you don’t have prospects yet, then a good place to start is to search online. As you do so, you can narrow down your research as per the practice area and location of your lawyer from state, zip code or city.

By the time that you have created a list, take advantage of the tips below to perform initial interview. Then after, pick your top 3 candidates.

  1. Check the lawyer’s website – as you are browsing the website, see if they are expert in the field of estates and trusts, do they have valuable information on their site that’s of great value to you? These are some information that you have to watch out.
  2. Contact your local bar association – this is actually an extremely effective way of assessing the expertise and knowledge of your prospective lawyer. Be sure not to disregard it.
  3. Talk to your prospects – there’s only one way to gauge whether you’re comfortable with the lawyer or not and that’s by scheduling a meeting with them and ask questions that aren’t clear to you.

Generating Compounding Profits and Interests with Bitcoin

The greater the number of people who are using Bitcoin, the greater the number of financial services would be created to accommodate cryptocurrency. As a matter of fact, there are constant stream of new applications being developed just for this purpose. One major advantage of Bitcoin than other traditional currencies is the fact that it is not affected by inflation. There’s no central authority that could all of a sudden manipulate the value and supply of this currency.

The Path to Richest with Bitcoin is Here!

On the other hand, if you are interested to make money using Bitcoin, you’re in luck because there are countless of ways on how you can do so rather than keeping them in your digital wallet. As you read this article, I will walk you through on the different ways of making money with Bitcoin.

Buy & Hold

By far, this has been the most effective method known to man. You can make tons of money by simply investing in Bitcoin. This however will require continuous positive trend. Even though the cost increased thousand percents, there’s no indication that the growth slows down.

Mining

This is yet another way that can be applied to earn money using Bitcoin. On the other hand, since the competition is tougher and fiercer, it is more challenging to multiple your money with this procedure. This is something that would demand resources. In the event that you are really determined to try this path, then consider using bitcoin trading robots from GladAge.

Invest in Crypto

Rather than just being a user, you may actually be an investor. The more the people who start to use Bitcoin, the more its value will rise. People are buying Bitcoin for sheer number of reasons.

Many are using Bitcoin due to the reason that it is easier to do online transactions with it. Others however take advantage of it for the cheaper money transfers while some are investing in Bitcoin to not be affected by inflation.

https://www.youtube.com/watch?v=z8r1D9Vu8Sw

Bitcoin as well as blockchain technology has various applications and will keep improving in the years to come. The potential for growth is high and therefore, a lot of people are deciding to invest in Bitcoin using the aforementioned methods.

US GAO Reports Government Agencies Still Using Verification Method Weakened by Equifax Database-Breach

Nearly two years after the Equifax database hacking, the US Government Accountability Office (US GAO) released a report last Friday naming government agencies still using the Knowledge-Base Authentication method in running their online operations. The revelation by the government watchdog serves as a warning to people transacting online with agencies like the Social Security Administration, the US Postal Service, the Centers for Medicare and Medicaid Services, and the Veterans Affairs that their accounts and their benefits, are vulnerable to cyber attacks.

The US GAO is concerned that the Equifax database breach in 2017 resulted to the exposure of personal identifying information belonging to more than 148 million Equifax credit report users.

Knowledge-Base verification is the second stage security measure used by a website when authenticating users intending to replace a forgotten password. Usually the verification requires giving answers to security questions about personal information known only to the account holder. If supplied correctly, a change in password will be allowed to grant access to whoever initiated the password change. .

Breached personal information providing details about credit-cards, Social Security Number, Driver’s License, date of birth, email addresses and phone numbers, can be used by cyber criminals in surreptitiously accessing benefits and other privileges provided by the aforementioned government agencies. Considering that account passwords can easily be replaced by using Knowledge Base authentication approach, rendered weak as a result of the Equifax database hacking that made massive personal information available to cyber criminals. . .

That is why immediately after the Equifax credit report data-hacking transpired in 2017, the National Institute of Standards and Technology (NIST) recommended the discontinuance of Knowledge Base Authentication as second-level method of verifying the identity of online account holders. .

However, the US GAO noted that the 2017 NIST notification did not include guidelines for directing government agencies on how to implement alternative methods of remote identity proofing, such as in-person verification, or through the use of user mobile devices when checking in.

Actions Taken by Government Agencies Cited in the US GAO Report

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The U.S. Department of Commerce agreed to the GAO’s recommendation, and has committed in behalf of the NIST, the Social Security Administration, the US Postal Service, and Veterans Affairs that steps will be taken to improve the security in their remote identity verification processes.

The Center for Medicare and Medicaid Services (CMS), through the Department of Health, disagreed with the GAO recommendation. According to the CMS, the alternative methods recommended are not feasible practices as far as the citizens availing CMS services are concerned.

In response, GAO underpinned the reasons for their recommendation, suggesting that the CMS may consider other alternative methods other than those recommended by GAO in the report.

The Promise of Cryptocurrency – Freedom, Democracy, Equality

The craze on cryptocurrency is spreading like wild fire. And yes, governments around the world had been intrigued too as they have started to create their own versions of digital currency. Estonia created Estcoin, Japan with J-coin, Sweden with the E-Krona project, and Petro by the Venezuelan government. These are just a few of the many governments exploring cryptocurrencies.

These government backed coins are called central bank issued cryptocurrency while others called it digital fiat. Regardless of what they are called they are not true cryptocurrencies. Why? True crytocurrencies are decentralized and it is one of the features why many people love the crypto. It is not governed or controlled by any entity as opposed to these government backed coins.

Bitcoins for Freedom

Venezuela is suffering from years of high inflation. There are over 3 million Venezuelans who have fled the country since 2014 seeking for food in nearby borders to feed their empty stomachs. Authoritarianism has gone from bad to worse and Venezuelans have the least power to change their rulers through campaigns for change or via free and fair elections simply because they fear for retaliation. It may seem that there are no other options for the people of Venezuela but technology gave hope to those who believe.

Many Venezuelans are experimenting with Bitcoin to avert inflation and tight financial management. There had been a lot of factors that concealed the liberating potential of Nakamoto’s invention. Lear more about crypto trading here – https://pheeva.com/bitcoin/trading/best-crypto-trading-bots/.

Among others is speculation, fraud, and greed. But for the Venezuelans and others who are living in high inflation and authoritarian rulers, they have seen Bitcoin as a valuable tool to fight ongoing inflation and work around the present government based exchange.

Venezuela is not the only nation where people are able to use Bitcoin to escape present economic climate. Zimbabwe, China, and Russia are experiencing the rage of inflation and are looking into Bitcoins to work around the tightening financial economic standards.

The Dark Side of Cryptocurrencies

The governments are interested in cryptocurrencies too. In this regard, we have to consider the dark side of this rising technology. Intellectuals have sent out warnings already that big data and AI (artificial intelligence) can possibly bolster authoritarians and tyrants everywhere. Venezuela, Saudi Arabia, and Iran have plans and are trying hard to change and centralize the concept of Bitcoin from peer-to-peer decentralized digital money to state-controlled cryptos such as the Petro. This will allow governments to successfully expurgate deals, control user accounts, and elude sanctions.

Keeping coins Decentralized

Cryptocurrencies such as Bitcoin is an insurance policy against an Orwellian future – written by Nassim Nichols

Decentralizing cryptocurrencies can result to opposing force. Other than Bitcoin, there are protected communications software and web browsers, privacy-preserving cryptocurrencies, mesh network units, and control-resistant storage programs. We could make certain that our financial systems and social networks won’t become tools for greed and control by continuously investing in these tools and making them better for the freedom and benefit of the majority.

The Federal Budget Process and the Role Played by Congress

The Federal Budget Process is a 9-step plan outlined by the 1974 Budget Control Act, establishing the role and authority of Congress in appropriating government funds, which the latter will present as a centralized and consolidated budget plan for the federal government at the start of every fiscal year.

Take note that a fiscal year is different from the calendar year that conventionally starts on January 01 and ends on December 31. A fiscal year also covers a 12-month period, but may start and end on any date agreed and settled upon by the federal Congess, state Congress or by a business entity, as the cyclic period. Currently, the the Federal Budget Process is being carried out to create a Budget Resolution for a 12-month period starting October 01 and ending September 30.

The Federal Budget Process

The 9-step process mainly involves submission of budget requests to the Office of Management and Budget (OMB), coming from all federal agencies. The OMB in turn, carries on with the process by reviewing, assembling and preparing all budget requests before they are forwarded to the Office of the President.

Once forwarded, the Office of the President will in turn prepare a budget proposal indicating in dollar values, the President’s funding levels and priorities for each federal agency. The proposal may include changes to mandatory programs that Congress had already enacted; and/ or make certain changes to the tax code.

After which, the President’s final budget proposal will be submitted to Congress, where the final steps of the Federal Budget Process, take place.

The Role of Congress in the Federal Budget Process

The U.S. Constitution empowered Congress to raise revenue from where government spends will be derived and appropriated. Elected officials voted as representatives of their respective state take up positions in Congress either as house representative (congressman) or senator.

Both the House of Representatives and the Senate maintain their own budget committees, whose output will be significant during deliberations and negotiations for the final appropriations bill. Part of their output are the results of hearings with the head of federal agencies, to establish the propriety and necessity of the funds requested.

In addition, there is also a Congressional Budget Office to which certain congressional members are tasked to provide non-partisan analysis and review of the budget proposed by the President of the United States for each fiscal year.

After which, a consensus must be reached by Congress on where the tax burdens must fall, on who are the recipients of the spending benefit and on funding priorities.

The final budget projections and allocations are stated in hard numbers. Once all matters have been considered and agreed upon by the members of the House of Representatives, a Budget Resolution will be prepared and passed to the Senate for review and approval. Once the Senate approves the Budget Resolution passed by the House of Representatives, the approved budget will then be forwarded to the President of the United Stated for approval.

Why It is Important for Money to Circulate Constantly and Widely

A stable economy is one in which money circulates effectively and continuously. When money held by a person or entity transfers to another on a daily basis, money becomes available for use to others. If large sums of money in an economy go to the hands of individuals who place them in financial markets, or stash them in personal cash vaults, even hide them in walls or floors, less money circulates; likely stunting the growth of an economy.

What is Money Circulation and What are Its Indications

Money circulation is the actual transfer of physical cash on hand, which transpires when consumers buy goods or pay for services. However, for money circulation to be effective, the exchange must generally transpire within the same economic territory.

The stable flow of money will carry on from consumers to retailers, to wholesalers or distributors, to manufacturers, to raw material providers, up to the very people who toil on natural resources to produce or extract the most basic requirement of a product. If such is the case, it denotes that almost all participants in an economic sector will have money to circulate at their end.

In the process of transfers, business entities aim to collect cash in amounts that enable them to pay for salaries, utilities, maintenance, tools, and other things necessary to sustain business growth. Growing businesses create new jobs, use new spaces and pay additional taxes.

The government in turn, must use taxes in ways that will benefit the general public; not on some political projects that favor only the players and supporters of a current administration.

Salaries on the other hand represent the source of money from which consumers derive cash they will put into circulation. Ideally, money received as compensation should exceed a person’s cost of living. If such is the case, a consumer can expand coverage of money circulation by purchasing other products, aside from those that they buy or pay for to meet the cost of living. Even more ideal is that they can save money in banks, since a bank in turn, will be able to generate loanable funds.

Money placed in banks yields interests, whilst still keeping the value intact for the depositor’s future use. Interest paid by banks are sourced from interests collected from borrowers; making it important for banks to make sure that money, is loaned out to entities vetted as capable of paying back the funds borrowed plus interests.

Such scenarios in an economic territory, if occuring with very little or no setbacks at all, can guarantee economic stability and growth. Unfortunately, there are certain factors such as natural calamities, disasters, civil unrests, poor political policies, monopolies, fraud, innovations, and global conflicts that affect activities and operations of those who participate in money circulation.

Why Insurance is a Must-Have?

Insurance is a must-have for any car owner who wants to protect themselves, their passengers, and their vehicle in the event of an accident. Insurance provides financial protection against potential losses due to accidents, theft, and other unexpected events.

Carrying insurance also offers a variety of other benefits, from providing peace of mind to saving money on repairs and medical bills. With a reliable insurance policy, you can rest assured that you and your vehicle are covered no matter what comes your way.

What is Car Insurance?

Car insurance provides financial protection against potential losses that may arise from accidents, theft, and other unexpected events.

Carrying a car insurance policy is mandatory in many states, so even if you don’t want it, you’ll have to have it. Car insurance is divided into two types: liability and collision coverage. Liability coverage covers the costs of any damage or injuries you cause. Collision coverage covers the cost of damage to your vehicle.

How to Find Affordable Car Insurance?

The best way to find an affordable insurance policy is to shop around. You can start with reputable companies, Of course, you can compare car insurance quotes online.

Once you’ve found a few companies that offer affordable rates, you’ll need to shop around a little more. You’ll have to speak with a representative from each company to get the full picture of what their policies include.

You’ll also need to provide some additional information, such as the make and model of your car, your driving history, and your contact information. Once you’ve chosen an insurance provider, you’ll need to sign an official policy document.

3 Things to Consider in an Insurance Provider

Beyond the cost of your insurance, it’s important to look at other factors when choosing an insurance company. Here are a few factors to keep in mind when choosing an insurance provider:

  • Availability – The first thing to look for when choosing an insurance provider is their availability. You’ll want to make sure the company you choose is open and operating during normal business hours.
  • Response Time – The speed of a company’s response can give you a good idea of how reliable they are. You’ll want an insurance company that responds to your questions quickly and effectively.
  • Reputation – One of the best ways to figure out if a company is reputable is by reading reviews. You can find reviews on a variety of insurance websites, such as Yelp and Google.

The Effects of Inflation on Politics

Euro Bills on the floor

 

There was a time when the political left saw itself as a lobby of the little people. If the material interests of low-income earners, small pensioners, or social benefit recipients were threatened, trade unionists and social democrats, greens, and leftists felt called upon to intervene. Some of them called it “class consciousness.”

It is all the more strange how loosely the self-proclaimed camp of progress deals with one of the greatest dangers currently facing the financial situation of the lower classes (who would really need apps to manage their finances well): inflation. The fears of this were “unfounded,” said former SPD leader Norbert Walter-Borjans when he was still in office. His people have “no catching up to do” on this issue, adds IG Metall boss Jörg Hofmann in a recent SPIEGEL interview. And the Duisburg economist Achim Truger, who sits on the Council of Economic Experts for the trade unions, also gives the all-clear. Although “the higher inflation will last longer than originally expected,” he admits. But “reason for concern” he sees “therefore not”. Devaluation of money – for leftists this is obviously not an urgent problem – and certainly not a social issue.

Better one percent negative interest rate than one percent negative growth.

Instead, they enthusiastically support the cheap money policy of Western central banks, although their unpleasant distribution consequences have long been obvious. While the balances of small savers are devalued by low and negative interest rates, the rich benefit from the hunt for higher-yielding investments, which is associated with the so-called unconventional monetary policy. The top floor cheers the stock market boom and real estate boom. Broad layers, on the other hand, can no longer even afford to buy a condominium.

The fact that loose monetary policy promotes social imbalances was seen by the political left as an inevitable side effect in the fight against economic weakness and deflation. Rather than one percent negative interest rate, so was the motto, than one percent minus growth.

But in the meantime, there is no longer any talk of economic dangers. The rise in wealth has turned into inflation of consumer prices, and even ardent advocates of money-flooding policies admit that the economic threat situation has changed fundamentally. With up to seven percent in the US and five percent in the eurozone, inflation has reached a level that noticeably reduces the standard of living of broad strata.

In Germany alone, inflation cost citizens around 80 billion euros last year, according to Allianz Insurance; and it is not unlikely that the loss will reach a three-digit billion this year.

A creeping erosion of prosperity has set in, which is all the more corrosive because it is far more noticeable at the lower levels of the income scale than at the upper ones. While the rich can at least partially escape inflation by buying stocks or real estate, the poorer classes are feeling the effects of current inflation with full force. Energy, food, rents: the prices of goods that account for a larger share of the household budget for low-income earners than for the wealthy are currently rising particularly rapidly. “Inflation,” as former CDU Labor Minister Norbert Blüm called it, “is theft of the little man.”

 

ALSO READ: Decentralized Finance Regulation: What are the Risks and Opportunities?

 

For Minister Özdemir, the rise in food prices cannot be high enough

A finding that is anything but new, but not particularly popular with those responsible in Frankfurt am Main and Berlin. The leaders of the European Central Bank have recently been talking a lot about climate protection and sustainability, but hardly about the social consequences of devaluation. And the traffic light coalition is celebrating a minimum wage increase, of which not much will remain after deducting the inflation rate. Anyone who listens to leading politicians of the three governing parties these days does not exactly get the impression that they would worry too much about the victims of the current wave of inflation.

Higher food prices? For Agriculture Minister Cem Özdemir, the increase can hardly be high enough, as he emphasizes in his interviews. The per capita reimbursement of CO2 prices to citizens? It is in the program of the FDP and the Greens, but not in the coalition agreement. The inclusion of inflation in the tax rate? Was a perennial favorite of the FDP – as long as it did not provide the finance minister. Incidentally, the traffic light politicians let it be known, they are not responsible for the topic. Inflation and monetary policy are a matter for the European Central Bank (ECB).

Its boss Christine Lagarde, on the other hand, systematically minimizes the problem. It still speaks of a temporary phenomenon, although its own people are again predicting a devaluation of money for the current year that exceeds the target value. Many economists are convinced that the energy transition and labor shortages will lead to prolonged price pressure. And in countries such as the USA, Great Britain, or New Zealand, central banks have long since turned the tide.

Decentralized Finance Regulation: What are the Risks and Opportunities?

Bitcoin and Dollar Bills

 

“Decentralized Finance” has been inspiring experts for some time as the next big development after Bitcoin and Ethereum. What’s behind it?

Decentralized Finance, or “DeFi” for short, stands for the idea of using the blockchain to organize even more complex financial services such as lending, secondary trading, insurance, or portfolio management decentrally and without financial intermediaries and to enable more efficient and cheaper financial services.

But aren’t more complex financial services such as lending or a stock exchange too “complex” to be able to do without intermediaries? Significantly, today’s dominant crypto exchanges and wallets like Metamask and Coinbase (check out Metamask vs Coinbase wallet comparison here), where cryptocurrencies can be traded, are primarily central intermediaries.

SEVERAL BILLION DOLLARS A WEEK

Until the invention of Bitcoin, many people could not imagine that digital money and securities transfers would be possible without banks. Today, around 13 years later, transfers of cryptocurrencies or security tokens without intermediaries are already part of everyday life in certain circles.

The number of DeFi applications is also growing steadily. DeFi exchanges, such as Uniswap, Sushiswap, or Curve Finance, have been around for several years now. They now process transactions amounting to several billion dollars per week and provide the functionality of exchange without a central intermediary.

And indeed, the most important decentralized exchanges have been functioning robustly so far. Even the extreme fluctuations of the crypto market this spring have survived the exchanges well.

SIZE DIVERSITY OF FINANCIAL SERVICES

On closer inspection, it is not surprising that it is possible to organize an exchange without human intervention via decentralized protocols. Even at central stock exchanges, computer-aided systems and rules are mainly used today. In this sense, decentralized exchanges are more of a consistent continuation of the development of the past decades.

It is to be expected that this development towards further DeFi applications will continue from a functional point of view and that we will see a greater variety of financial services in the future. But what does this development look like from a regulatory perspective?

REGULATORY PERSPECTIVE

Today’s financial market regulation is based on the supervision of financial intermediaries. But what happens when there are no more intermediaries? Who will be the addressee of the regulation?

We have seen an example of this type of problem in the area of anti-money laundering, which today is essentially based on the involvement of intermediaries. Some time ago, the Financial Action Task Force (FATF) proposed classifying software developers as financial intermediaries in decentralized structures and making them responsible for preventing money laundering, which has led to an outcry from the private sector.

CONCERNS OF INVESTOR PROTECTION AND PREVENTION OF ABUSE

The same problem arises for the concerns of investor protection and financial stability. In recent decades, governments have had to drastically expand the regulation and active supervision of financial intermediaries in order to maintain stability and adequately protect investors. Without intermediaries, supervisory authorities now also lack the most important lever for preventing abuse in the financial sector.

DEVELOPMENT COMES TO A HEAD

The development of DeFi is exacerbating a trend that has been observable for several years: Digitization enables new financial market applications that were of course not taken into account when formulating the laws. These fintech applications in the broader sense rub heavily against the applicable laws. In many projects, the assumption under the financial market laws is far from clear in practice.

As a result, the requirement for financial market authorities to interpret the laws appropriately has risen sharply in recent years. With DeFi – without a clear organization to supervise – this development continues to come to a head.

LOSS OF CONTROL AND RISK OF MISUSE

The big question now is how DeFi should be handled under regulatory law in the future. Although there would certainly be the option of not subjecting many DeFi applications to financial market regulation, it is to be expected that the supervisory authorities and, indirectly, the governments in many jurisdictions will not accept the associated loss of control and the possible risks of abuse.

It can therefore be assumed that the scope of financial market regulation will be increasingly extended to the DeFi sector in the coming years. Many countries will try to classify any form of activity in the environment of DeFi applications as a financial intermediary, as the FATF has proposed.

However, this approach is problematic: while it is undisputed that DeFi applications can be associated with risks, their risk profile is fundamentally different from intermediary-based activities.

UNNECESSARY COSTS

The application of an “old” regulatory system to DeFi means that the risks are not adequately addressed. In addition, the current form of regulation is necessary not only, but also because of the intermediaries. An intermediary-free system could therefore dispense with these parts of the regulation.

So when regulation forces the use of intermediaries that are not actually necessary, it leads to unnecessary costs. And it is precisely the increase in efficiency in the financial sector that is a central concern of every economy.

EXISTING SYSTEMS HINDER INNOVATION

Applying “old” regulation to DeFi hinders innovation, undermines the benefits, and ignores the real risks. Therefore, there is no way around a new form of regulation for DeFi: In order to make the most of the significant advantages of DeFi, a new and differentiated risk-based system is required to effectively combat abuse, which does not require intermediaries and does not impair the efficiency of DeFi through the use of technology.

However, the road to such regulation is long. It is best for governments and authorities to take a closer look at the technology, opportunities, and specific risks of DeFi at an early stage, to understand them and to be able to look at them in a differentiated way, and to learn to deal with them.

Even though the stock markets have recovered in the meantime after the shock in March 2020, the uncertainty for the global economy remains. It is therefore to be expected that investors will also be rather cautious in startups, venture capital, or private equity in the coming months.

Another alternative asset class – platforms and companies that specialize in financing SMEs via security tokens – is also likely to have a long dry spell ahead of it. This is all the more unfortunate as the security token industry had developed dynamically just before Covid-19.

Can the security token industry cope with this dampener? Or will Covid-19 even give it an extra boost? Tokenization offers important alternatives in financing and investment right now. From an economic point of view, there are two arguments in favor of giving the asset class a further boost.

 

ALSO READ: How Bitcoin Losses Translate to Taxes

 

INCREASED NEED FOR FINANCING

On the one hand, existing companies will have an increased need for financing. Companies that emerge as winners from the pandemic will seek growth capital, while others will need liquidity to maintain their operations. Large companies use the classic capital markets or bank loans for this, but for SMEs, the high administrative burden and the high implementation costs for access to the capital market compared to the relatively small volume are usually too high and bank loans are difficult to obtain.

For them, the blockchain basically offers the possibility of carrying out the process of issuing tradable digital securities much more cost-effectively and quickly. This makes security tokens an attractive instrument for obtaining own or external funds. In addition, it is to be expected that the digitalization boost triggered by Covid-19 will also promote innovation. As a result, – hopefully – new projects or companies will be launched that want to be financed by “classic” stocks, bonds, or even innovative new financial products.

BASIC MARKET NEEDS

Security tokens also offer a fast and in principle more cost-effective way of refinancing. A fundamental market need would therefore be given if all legal requirements and the availability of capital for such products were met.

The second aspect concerns the emergence of a sufficiently large market for financing via security tokens. An economic crisis may not be the right moment to try out new forms of investment. But given the ongoing period of low-interest rates, investor interest in alternative investments is expected to increase as global economic uncertainty eases.

Security tokens can put the process from generation to storage to secondary trading on a completely new foundation and thus help to make investments for which access to the financial sector was too expensive “bankable”. Security tokens thus expand the investment universe for investors, whereby the basic processes have a similar level of security to the “classic” financial infrastructure.

UNIFORM LEGAL FRAMEWORK

In order for this to be implemented in practice, however, the legal and supervisory system must also evolve accordingly. Liechtenstein, for example, has already created an instrument that gives investors comprehensive legal certainty with the so-called Blockchain Act (Act on Tokens and VT Service Providers, TVTG), which came into force on 1 January 2020.

Here it is now possible to generate digital securities directly and without a detour via physical security. For investors, this step means that both the ownership and civil transfer of security tokens can have the same legal certainty as we know from the traditional financial market.

RULES FOR SAFEKEEPING

Another aspect is the rules for the safe keeping of security tokens by service providers. For an investor, it is important that the securities are also separated from the bankruptcy assets in the event of the service provider’s bankruptcy. With the entry into force of the TVTG, all tokens, i.e. not only security tokens but also cryptocurrencies or utility coins, are separated from the assets of the service provider by law. In addition, the TVTG includes some other rules to improve legal certainty around blockchain applications.

However, European providers of security tokens are not only confronted with national civil and regulatory issues. Rather, in the future, some essential questions regarding the treatment of security tokens in connection with European financial market law must be clarified, for example, the very basic one, which token exactly is to be qualified as a financial instrument. This has not yet been conclusively and, above all, uniformly clarified in all countries.

Especially in view of the innovative design possibilities of tokens, however, this is of great importance. Also still unclear are the rules as to when a platform in the context of primary issues of securities must qualify as a financial service provider. As long as there are no answers, a cross-border issuance of security tokens in Europe is associated with major legal risks for companies.

HIGH HURDLES

The same picture emerges in secondary trading: the regulatory framework for financial service providers around securities issuance and trading was created for the traditional financial market. The requirements for financial service providers are therefore relatively high and reflect the traditional, comprehensive business models. For security token service providers, who usually only do a small part of the activities of a traditional intermediary, these hurdles are usually much too high and not appropriate in view of their focused business model.

They therefore often try to position themselves outside the financial sector, combined with corresponding regulatory risks in the European internal market. The distinction between the regulated and the non-regulated area is not really easy in view of the variety of forms of design made possible by the technology – neither for the regulator nor for the companies. It is therefore not surprising that this differentiation is still unclear and heterogeneous in many countries. As long as there is no legally secure and at the same time efficient and cost-effective secondary market for security tokens, the demand from investors will remain within narrow limits.

REGULATORY RISK

Security token service providers have been put on the back burner in recent months, not only from an economic perspective. Rather, the regulatory risk in Europe for players in this sector has not diminished. In some cases, it has even increased, as many states have now developed their own interpretation of the financial market laws with regard to tokens.

For the development of the security token industry in Europe, it is therefore essential that, on the one hand, the existing uncertainties regarding financial market regulation are eliminated as quickly as possible and, on the other hand, the financial market laws are adapted in such a way that service providers are regulated on a risk- and activity-related basis. Without these two steps, the development of the security token industry depends on the established financial service providers, who usually have only a limited interest in the issuance of security tokens.

However, positive development of the security token industry is in the interests of the economy as well as investors. It is therefore to be hoped that the EU Commission will quickly solve these problems and thus lay the foundation for a prosperous security token sector in Europe. Then the time delay caused by Covid-19 would have been well used.

How to Make an Accounting Service Website?

Throughout the years, the corporate world has kept on changing. Those businesses that failed to adapt eventually shut down. Then again, those that prevailed climbed up the ladder and established a strong footprint in their market.

Competition is fiercer than ever, and companies no longer have the luxury of a slow response time when it comes to launching new products or services. If you’re operating as an accounting firm or service, you will need to launch your website as fast as possible in order to stay relevant in this hyper-competitive environment.

Let’s take a look at some excellent tips on how to make an accounting service website that stands out from the crowd:

Make Sure Your Website is Responsive

One of the first things you will want to do is ensure that your website is responsive. Most people visit websites from their mobile devices so it makes sense to design your website. See to it that it is mobile-friendly and fully functional from any device. If your website isn’t compatible with mobile devices, you will lose a significant chunk of your potential customer base.

Make sure that your website is responsive and compatible with all devices, including desktops, laptops, tablets, and smartphones. This will help ensure that as many people as possible are able to access your site at any time and from any place.

Explain Your Services and Their Benefits to the User

One of the best ways to make your website stand out from the crowd is to explain your services and their benefits to the user.

Most potential customers will be visiting your website because they need accounting services and don’t know where to turn.

You need to make it as easy as possible for them to understand what you do and how you can help them. It is also best to put it on your front page like in buhalterija to keep potential customers engaged.

Use High-Quality Images and Visuals

One of the best things that you can do to make your website stand out from the crowd is to use high-quality images and visuals to illustrate your services and benefits.

This is crucial when you’re trying to build trust with potential customers and show them that your accounting services are worth their time and money. Using high quality images and visuals on your website can also help to increase your website’s conversion rate and help you to drive new business from your site.

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