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Information for accountants and accounting companies: "NATO and Europe’s Refugee Crisis"

The announcement last Thursday that NATO would send ships to patrol the Aegean in an effort to break up the smuggling rings ferrying desperate refugees and migrants from Turkey to Greece is, at this point, more a symbolic show of solidarity than anything else. Even so, it reflects a heightened sense of urgency about the refugee crisis and sends a strong signal that the Western alliance stands ready to help Europe cope with it.

Gen. Philip Breedlove of the United States Air Force, NATO’s supreme allied commander for Europe, said last week that the mission had “literally come together in the last 20 hours” and that he had been asked to “go back and define the mission.” Part of that mission must be to help refugees at risk. Last year, 3,800 people drowned trying to cross the sea to Europe, and more than 400 have already drowned this year, many of them children. Frontex, the European Union border agency, and the Greek Coast Guard have simply not been able to cope.

Concern for refugees’ safety was not, however, the reason Germany, Greece and Turkey — the three countries most affected by the crisis — asked NATO for help. The main concern is political: public dismay at the prospect that the tide of refugees shows no sign of abating. Last week, Turkey’s president, Recep Tayyip Erdogan, threatened to send millions of refugees on to Europe. Turkey has already taken in three million people and is under pressure to take in more.

Read more: Information for accountants and accounting companies: "NATO and Europe’s Refugee Crisis"

Information for accountants and accounting companies: "How America Was Lost"

Once upon a time, the death of a Supreme Court justice wouldn’t have brought America to the edge of constitutional crisis. But that was a different country, with a very different Republican Party. In today’s America, with today’s G.O.P., the passing of Antonin Scalia has opened the doors to chaos.

In principle, losing a justice should cause at most a mild disturbance in the national scene. After all, the court is supposed to be above politics. So when a vacancy appears, the president should simply nominate, and the Senate approve, someone highly qualified and respected by all.

In reality, of course, things were never that pure. Justices have always had known political leanings, and the process of nomination and approval has often been contentious. Still, there was nothing like the situation we face now, in which Republicans have more or less unanimously declared that President Obama has no right even to nominate a replacement for Mr. Scalia — and no, the fact that Mr. Obama will leave soon doesn’t make it O.K. (Justice Kennedy was appointed during Ronald Reagan’s last year in office.)

Nor were the consequences of a court vacancy as troubling in the past as they are now. As everyone is pointing out, without Mr. Scalia the justices are evenly divided between Republican and Democratic appointees — which probably means a hung court on many issues.

And there’s no telling how long that situation may last. If a Democrat wins the White House but the G.O.P. holds the Senate, when if ever do you think Republicans would be willing to confirm anyone the new president nominates?

How did we get into this mess?

Read more: Information for accountants and accounting companies: "How America Was Lost"

Information for accountants and accounting companies: ‘Liberal’? No. ‘Progressive’? Nah. How About ‘Democratic Socialist’?

The democratic socialist tradition that Sanders is invoking may be just what we need.

Senator Bernie Sanders formally identifies himself as a “democratic socialist,” a designation which is at once part of his allure, especially for a new generation of voters, and a turn-off for other sections of the electorate—not to mention a likely unbridgeable barrier for media and political elites. He mixes in references to European and/or Canadian models of health care, family leave and college financing, but when pressed for a definition of the term, Sanders customarily reverts to Democratic Party platforms of the New Deal and after.  

Citing the programs of venerable Democratic Presidents from Franklin Roosevelt to Lyndon Johnson, Sanders benignly explains, “Democratic socialism means that we must create an economy that works for all, not just the very wealthy.” Yet, if socialism is already so much a part of “the fabric of our nation and the foundation of the middle class,” as Sanders argued at a speech in Georgetown University last November, why, one might ask, venture out on a new and uncertain conceptual limb? Why not just stick to “Democrat,” “liberal” or at most “progressive,” the latter being the current favorite—often favored even by Sanders—of the left-but-respectable crowd? The answer tells us a great deal not only about the current crisis in the American economy and politics, but also about the changing position of America in the world.

On the positive side, by resurrecting a term that emerged from a 19th-century critique of class inequality, Sanders’ socialism actually dovetails nicely with his more extended emphasis on the relative decline of wealth and income working-class and middle-class Americans have experienced since the 1970s and the corresponding appropriation of power and influence by a favored few. Add to that the organic connections historically (as evident in France, Germany and Britain by 1900) between the socialist movement and the first electoral breakthroughs for ordinary working people, and the connection only reinforces the bona fides of an attack on a corrupt, undemocratic political system.

Read more: Information for accountants and accounting companies: ‘Liberal’? No. ‘Progressive’? Nah. How...

Information for accountants and accounting companies: "On Economic Stupidity"

Bill Clinton’s 1992 campaign famously focused on “the economy, stupid.” But macroeconomic policy — what to do about recessions — has been largely absent from this year’s election discussion.

Yet economic risks have by no means been banished from the world. And you should be frightened by how little many of the people who would be president have learned from the past eight years.

If you’ve been following the financial news, you know that there’s a lot of market turmoil out there. It’s nothing like 2008, at least so far, but it’s worrisome.

Once again we have a substantial amount of troubled debt, this time not home mortgages but loans to energy companies, hit hard by plunging oil prices. Meanwhile, formerly trendy emerging economies like Brazil are suddenly doing very badly, and China is stumbling. And while the U.S. economy is doing better than almost anyone else’s, we’re definitely not immune to contagion.

Nobody really knows how bad it will be, but financial markets are flashing warnings. Bond markets, in particular, are behaving as if investors expect many years of extreme economic weakness. Long-term U.S. rates are near record lows, but that’s nothing compared with what’s happening overseas, where many interest rates have gone negative.

Read more: Information for accountants and accounting companies: "On Economic Stupidity"

Information for accountants and accounting companies: "What’s Holding Back the World Economy?"

NEW YORK – Seven years after the global financial crisis erupted in 2008, the world economy continued to stumble in 2015. According to the United Nations’ report World Economic Situation and Prospects 2016, the average growth rate in developed economies has declined by more than 54% since the crisis. An estimated 44 million people are unemployed in developed countries, about 12 million more than in 2007, while inflation has reached its lowest level since the crisis.

More worryingly, advanced countries’ growth rates have also become more volatile. This is surprising, because, as developed economies with fully open capital accounts, they should have benefited from the free flow of capital and international risk sharing – and thus experienced little macroeconomic volatility. Furthermore, social transfers, including unemployment benefits, should have allowed households to stabilize their consumption.

But the dominant policies during the post-crisis period – fiscal retrenchment and quantitative easing (QE) by major central banks – have offered little support to stimulate household consumption, investment, and growth. On the contrary, they have tended to make matters worse.

In the US, quantitative easing did not boost consumption and investment partly because most of the additional liquidity returned to central banks’ coffers in the form of excess reserves. The Financial Services Regulatory Relief Act of 2006, which authorized the Federal Reserve to pay interest on required and excess reserves, thus undermined the key objective of QE.

Read more: Information for accountants and accounting companies: "What’s Holding Back the World Economy?"

Information for accountants and accounting companies: "10,000 Child Refugees Are Missing"

According to the European police agency Europol, more than 10,000 children who entered Europe during the last two years have disappeared, vanishing through the gaping cracks in Europe’s chaotic system for dealing with refugees and migrants.

The fear is that many of the missing children have been trafficked into the sex trade by the same organized criminal groups that are profiting handsomely by ferrying refugees into and across Europe.

In addition, many children are believed to have fled detention centers, where they do not feel safe and are too often kept in the dark about their rights. Some are teenage boys, many from Syria and Afghanistan, who have been sent ahead by families hoping to join them later. Once on the streets, they are easy prey for drug dealers, pimps or petty theft rings. Younger children and adolescent girls are also at great risk of sexual and other abuse.

Some children may have become separated from their families along the routes refugees take through Europe after landing in Greece or Italy. Others arrive in Europe as unaccompanied minors — 26,000 last year — according to the humanitarian group Save the Children.

Read more: Information for accountants and accounting companies: "10,000 Child Refugees Are Missing"

Information for accountants and accounting companies: "Forget Techno-Optimism: We Can’t Innovate Our Way Out of Inequality"

Hillary Clinton’s former ‘senior advisor for innovation’ sees our Uber-ized future through rose-colored glasses
BY Chris Lehmann

Toward the end of his 250-page hymn to digital-age innovation, The Industries of the Future, Alec Ross pauses to offer a rare cautionary note. Silicon Valley may have incubated all the wonders and conveniences one can imagine—and oh, so many more! But for the international business elites looking to remake their emerging market economies in the Valley’s gleaming, khaki-clad image, there’s some bad news: It can no longer be done. A “decades-long head start” has granted too great a competitive advantage to the charmed peninsula along the Northern California coast.

Not to worry, though! On-the-make tech globalists can still make a go of it, provided they’re prepared to embrace “specific cultural and labor market characteristics that can contradict both a society’s norms and the more controlling impulses of government leaders.”

Stripped of the vague and glowing techno-babble, this is a prescription for good old-fashioned neoliberal market discipline. Everywhere Ross looks across the radically transformed world of digital commerce, the benign logic of market triumphalism wins the day. When Terry Gou—the Taiwanese CEO of Foxconn, the vast Chinese electronics sweatshop that doubles as an incubator for worker suicides—plans to eliminate the headache of supervising an unstable human workforce by replacing it with “the first fully automated plant” in manufacturing history, why, he’s simply “responding to pure market forces”: i.e., an increase in Chinese wages that cuts into Foxconn’s ridiculously broad profit margins. And you and I might see the so-called sharing economy as a means to casualize service workers into nonunion, benefit-free gigs that transfer economic value on a massive scale to a rentier class of Silicon Valley app marketers. But bouncy New Economy cheerleaders like Ross see “a way of making a market out of anything, and a microentrepreneur out of anyone.”

Read more: Information for accountants and accounting companies: "Forget Techno-Optimism: We Can’t Innovate...

Information for accountants and accounting companies: "The Time-Loop Party"

By now everyone who follows politics knows about Marco Rubio’s software-glitch performance in Saturday’s Republican debate. (I’d say broken-record performance, but that would be showing my age.) Not only did he respond to a challenge from Chris Christie about his lack of achievements by repeating, verbatim, the same line from his stump speech he had used a moment earlier; when Mr. Christie mocked his canned delivery, he repeated the same line yet again.

In other news, last week — on Groundhog Day, to be precise — Republicans in the House of Representatives cast what everyone knew was a purely symbolic, substance-free vote to repeal Obamacare. It was the 63rd time they’ve done so.

These are related stories.

Mr. Rubio’s inability to do anything besides repeat canned talking points was startling. Worse, it was funny, which means that it has gone viral. And it reinforced the narrative that he is nothing but an empty suit. But really, isn’t everyone in his party doing pretty much the same thing, if not so conspicuously?

The truth is that the whole G.O.P. seems stuck in a time loop, saying and doing the same things over and over. And unlike Bill Murray’s character in the movie “Groundhog Day,” Republicans show no sign of learning anything from experience.

Read more: Information for accountants and accounting companies: "The Time-Loop Party"

Information for accountants and accounting companies: "Who Hates Obamacare?"

Ted Cruz had a teachable moment in Iowa, although he himself will learn nothing from it. A voter told Mr. Cruz the story of his brother-in-law, a barber who had never been able to afford health insurance. He finally got insurance thanks to Obamacare — and discovered that it was too late. He had terminal cancer, and nothing could be done.

The voter asked how the candidate would replace the law that might have saved his brother-in-law if it had been in effect earlier. Needless to say, all he got was boilerplate about government regulations and the usual false claims that Obamacare has destroyed “millions of jobs” and caused premiums to “skyrocket.”

For the record, job growth since the Affordable Care Act went fully into effect has been the best since the 1990s, and health costs have risen much more slowly than before.

So Mr. Cruz has a truth problem. But what else can we learn from this encounter? That the Affordable Care Act is already doing enormous good. It came too late to save one man’s life, but it will surely save many others. Why, then, do we hear not just conservatives but also many progressives trashing President Obama’s biggest policy achievement?

Part of the answer is that Bernie Sanders has chosen to make re-litigating reform, and trying for single-payer, a centerpiece of his presidential campaign. So some Sanders supporters have taken to attacking Obamacare as a failed system.

Read more: Information for accountants and accounting companies: "Who Hates Obamacare?"

Information for accountants and accounting companies: "Europe's Huddled Masses"

WASHINGTON — From London to Athens Europe is questioned. Some people, mainly refugees from Syria, Iraq and Afghanistan, are dying to get into the European Union. Many British conservatives are fighting to get out of it. Others, including Russian President Vladimir Putin, plot to undermine it. Yet others are bored by it. The 20th century and the strategic imperatives behind NATO and the European Union seem far away to wired millennials.

The two most powerful symbols of European integration — the euro that binds 19 European Union states in a currency union, and the Schengen accords that allow people to move freely between 22 borderless European Union nations — are in danger of unraveling under the pressure of polarized politics, diverging economic performance and the influx of more than one million desperate migrants and refugees in the past year.

There is an identity crisis. Christian Europe, a notion that Prime Minister Viktor Orban of Hungary has turned into a kind of illusory fetish, is in fact much less Christian. Around 6 percent of the European population is Muslim today; by 2030 that figure will be 8 percent.

A small minority of those Muslims — told by online jihadi propagandists that there is no gray zone between Islam and the infidel, only the obligation to slaughter the unbeliever — drift off via Turkey to ISIS-held territory in Syria and return to kill — Charlie Hebdo, the Paris kosher supermarket, Paris sports and music halls and restaurants, the Brussels Jewish museum. Division and demagoguery spread. Xenophobic rightist parties thrive at the margins from Sweden to Greece.

Read more: Information for accountants and accounting companies: "Europe's Huddled Masses"