PM touts economic plans

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Govt to finance more regional initiatives

PUBLISHED: 13 Dec 2024 at 04: 00

Prime Minister Paetongtarn Shinawatra at the NBT Channel yesterday highlighting her administration's achievements during its first 90 days. Apichart Jinakul
Paetongtarn Shinawatra, the prime minister, spoke to the NBT Channel yesterday to discuss the accomplishments of her administration over the course of its initial 90 times. Apichart Jinakul

Prime Minister Paetongtarn Shinawatra has pledged a number of fresh populist measures to boost the economy and improve people’s lives the following month.

In a televised address on the National Broadcasting Services of Thailand route about the government’s achievement in its first three months in office, Ms. Paetongtarn reaffirmed her government’s dedication to fighting for the people’s interests and laying the groundwork for the nation but that Thais you prosper with success and respect.

” 2025 will be a time of options”, she said. The state promises to produce tangible outcomes for a better future.

New methods that will be rolled out next year include the” One District, One Award” project, funded by earnings generated by raffle ticket revenue from the Government Lottery Office, to develop educational opportunities for poor students, she said.

The government may also offer the” One District, One Summer Camp” effort to allow students to enter short-term elsewhere language instruction, she said.

She continued, adding that city schools will also be modernized with the aid of modern technology and expanded teaching tools to advance students ‘ language and artificial intelligence capabilities.

She added that the small-medium-large village and community development program will also be implemented to give local communities the tools they need to identify and address their individual issues. It will also be supported by money raised through town and metropolitan community systems.

To help medium-sized companies, which serve as the core of the Thai business, a 5-billion-baht account will be allocated to help them, she said.

Housing initiatives will also be another priority, with the” Homes for Thais” programme providing high-quality, affordable condominium units with 99-year leases, she said.

She said that the government will also push for a 20-baht flat rate for all electric train lines serving Greater Bangkok because the unit rent will start at about 4, 000 baht per month, giving many residents access to homeownership.

She added that the government will continue to support the digital wallet handout program to promote the digital transformation and economic recovery.

She added that the second phase of the cash distribution program will give cash to 4 million senior citizens by the Chinese New Year, and a third phase will target the general public to help maintain the economic recovery’s momentum.

Debt relief will also be prioritised, with measures focusing on household debts, home and car loans, including a three-year interest payment suspension scheme, as well as full debt forgiveness for smaller debt obligations under 5, 000 baht, she said.

Water management remains a top priority, with measures being developed to mitigate both flooding and drought, she said.

These include promoting cooperation between the public and private sectors for canal dredging and conducting extensive floodway research to find long-term solutions.

Our goals are to empower people, end centralization, and create a world where everyone has the opportunity to prosper with dignity. Together, we will make 2025 a year of progress and hope, setting the stage for a brighter decade ahead”, Ms Paetongtarn said.

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Trump heralds the end of dollar dominance – Asia Times

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Donald Trump’s win in November’s US presidential poll saw the US dollars improve. In less than two weeks, it reached a one-year large and has since maintained its power in comparison to its main competitors. His vote has also raised the possibility of US tariffs on goods, and notice has also been drawn to the potential disruption to international trade.

As part of this, Trump made a not-so-veiled threat of rough taxes on the&nbsp, BRICS&nbsp, team of leading emerging industry really they&nbsp, create a rival&nbsp, to the US dollar, which has been the country’s “dominant money” since the Second World War.

Dollarization refers to the use and positioning of the US dollar by different nations. It has various degrees of meaning, from places like Panama using the US dollar as their reserve and as their car money. This latter position enhances international trade.

Get Chile and Malaysia as an example. There will be a big and active marketplace for the exchange of Chilean pesos for the Indonesian rupiah, for which any industry between these two nations will be required. Pesos are rather exchanged for US money and US dollars for dinars, making business easier and less expensive.

However, the US dollar is used in more than 50 % of international business invoices, and over 80 % of all international trade deals worldwide. But, it is possible that Trump’s” America First” foreign policy may provide to hasten the end of the US currency’s dominance.

Pros and cons

Dollarization is advantageous for international business. However, it has distinct advantages for the US, as other nations require US currency to help trade and pay for a lot of commodities. This implies that the US dollar’s demand is still high, and that it does not experience depreciation force.

Perhaps the most crucial aspect is that nations don’t hang US dollars in cash when they do so. Instead, they buy US Treasury bills and thus, in effect, lend money to the US authorities. Due to the US government’s great need for US Treasury, borrowing at a lower interest rate than would otherwise be feasible.

But, there are also disadvantages. A robust US buck increases the price of dollar-denominated goods and, therefore, the cost of international trade. And for the US itself, a robust US dollars may damage its local trade organization.

These shortcomings have frequently prompted the idea of a multi-currency worldwide program, but this has never gained any traction or been a significant factor. But that could change with a following Trump administration.

When Trump takes office in January, he has threatened to impose large trade sanctions. Photo: Phil Mistry / Shutterstock via The Talk

During his first name, for enquiries grew louder. Additionally, there have been some changes to US dollars holdings since that point, causing a decline in global US dollars reserves.

Therefore, which Trump plans may hasten the end of US dollars dominance? The incoming president is viewed as pro-business, which will likely translate into laws designed to lower taxes and regulations. At a time when worldwide productivity is less than respectable, engaging private growth will result in an even stronger US dollar.

A stronger US dollars, as mentioned above, even increases the price of petrol and related supplies. Countries will certainly be asking themselves why, as crude from Saudi Arabia, for instance, may be purchased in US bucks as those dollars increase in value.

Trump’s financial plans are likely to raise US bill, which could lower the value of the significant US dollar deposits held around the world. According to one research, Trump’s plans may include as much as US$ 15 trillion to the world’s loan over a decade. Some nations may be less willing to hold US bill as a result of a decline in the value of US dollars resources.

The result of these policies may be considered unexpected. But other procedures, like as Trump’s program for higher taxes, are more consciously designed.

A robust US dollar hurts US exports because they become more expensive locally and import prices are less expensive. Taxes are a way to shield domestic producers from this global rivals.

However, raising tariffs will only serve to strengthen the US dollars if no other nation reacts, as fewer exports will result in fewer US dollars being sold on the global trade market. This does, at least in part, erase the impact of the price policy while imposing trade costs worldwide.

Countries may agree to use choices as a reserve money and a payment method for global commodities in order to prevent this. A distinct money, such as the Euro or Yuan, has been suggested by the Brics countries. Trump’s challenges may merely speed up this hunt for an option.

What would this imply for the United States?

Countries would then need to carry less US money, but may sell off their US Treasuries. The outcome will be a surge in the US’s loan and a decline in the value of the US dollar. Unfortunately, this would increase the price of goods ( the goal of Trump’s tax policy ), but it could also lead to inflation.

A work on the US dollar did have significant effects on the US and the world in the worst-case situation, if nations coordinated their offering of US dollars and Bonds. This may require the US to reduce its trade deficit and raise its loan costs.

Globally, it may disrupt industry, increase purchase costs and there would be a loss of benefit for any dollar-denominated property and resources. A major world recession would probably follow from this.

For the immediate future, the US dollar will be a world money. But Trump’s” America First” plan, as well as the greater weaponisation of the US dollars, could lead to its fall from being the only world currency.

David McMillan is doctor in finance, University of Stirling

This content was republished from The Conversation under a Creative Commons license. Read the original content.

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Global economy bracing for Trumpworld – Asia Times

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The world market was already under pressure as a result of Donald Trump’s victory in the November election, which also included a sluggish Europe, an ugly conflict in Ukraine, and a sluggish Chinese market. However, there was a chance that lower interest rates may encourage economic activity and the global economy in 2025 as central banks began to control higher inflation.

Trump’s triumph, however, has a number of reasons to doubt those expectations. The world’s largest economy’s economic policies are under a lot of new confusion, as is how Trump’s extreme rhetoric toward China will actually work. &nbsp,

Trump emphasized three monetary steps on the plan trail that appear more certain than others to be put into practice.

The first is density deportations of illegal immigrants, a round-up that will dent the US’s labour supply with negative consequences for progress and prices. The second is a business income reduction, which will increase the already large US fiscal deficit and national debt but will also encourage more capital to be raised.

Trump plans to increase trade taxes across the board, but to the evident greatest extent against China, in a second and more significant way for the global economy. Given all of these actions’ inflationary effects, it seems obvious that the US Federal Reserve will need to be watchful for any potential spikes or overly sticky prices.

Due to Europe’s surprisingly depressed economic situation, this risk is rarely present in that country. That in turn indicates a weaker euros in the upcoming year as the European Central Bank will be more willing to cut interest rates. &nbsp,

In other words, it seems exceedingly improbable that the fantastic dream of a quick standardization of US monetary policy and, with it, a weaker US dollar, would lead to better global financial conditions. Many developing and emerging markets with access to additional funding are particularly concerned about this Trump-driven transition in world economy expectations.

Given the unhappy financial climate in France and Germany and the good effects it would have on the eurozone’s profitability abroad, a weaker euros may be good news for Europe. That’s especially true as Trump’s taxes will also probably pin the European Union, though to what level is very questionable.

Trump’s primary tariff statements since winning the election, which targeted the US and Mexico ( to be hit with 25 % of US tariffs despite having a trade agreement with the US), may serve as a consolation for the EU that allies and friends won’t become immune to Trump’s tax assault.

Another important issue is whether Trump may impose more severe sanctions on nations that import Chinese goods for US distribution as made in their own countries, including but not limited to Vietnam, Malaysia, and Thailand.

This, among other factors, will decide whether the rest of Asia will be a relative “decoupling” success from Trump’s taxes, as has been the case with the Biden administration’s limits on China trade.

Trump’s plan to reduce US business income and the effects that will have on the relocation of US multinational profits are another important factor. More money will likely flow to the US from Asia as a result of this resettlement.

The Inflation Reduction Act, which granted grants to a limited US-based companies, has already done so. In other words, Trump’s tax plan could leave the US as the most appealing location for squandering international funds, with adverse effects for Asia and Europe. &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp,

Beyond ramped-up US protectionism and business tax cuts, both gross negative for the rest of the world, Trump had accidentally make another major problem for the world economy, especially the dollar’s collapse as the globe’s reserve currency.

Trump has repeatedly stated he craves a weak money to reduce the enormous US trade deficit, despite the fact that these three hooks of his monetary policy mentioned above may eventually enjoy the money, which is how the market responded following his victory. &nbsp,

Within Trump’s world of financial experts, there are voices proposing capital controls, which would be unthinkable of for the world’s supply money. Trump has simply added more complexity by making it seem as though Trump has just threatened BRICS people with 200 % taxes if they decide to de-dollarize their business and finances.

But the rhinoceros in the room is Trump’s program for China. On one hand, Trump has been fiercely aggressive toward Beijing, threatening 60 % tariffs on all Chinese-made products.

In a December 2019 alliance that gave China the right to purchase$ 600 billion worth of US goods and grant them preferential access to US buyers in some highly desired areas of its economy, Trump showed a commitment to strike a deal with China.

The EU may care a lot about how Trump handles China. For Western companies looking to do business with China, a new US-China trade agreement that is comparable to the one from 2019 is likely to be a net negative. Importantly, the 2019 offer saw Western businesses lose market share to American types in China.

All in all, Trump’s 2025 appearance does bring with it a quantum jump in worldwide economic uncertainty.

Trump’s guaranteed taxes and tax breaks could lead to a new rise in global inflation, worsening economic conditions for developing and emerging markets, and more inflows of cash from Asia and Europe into the US, but the effects of these measures on the money and US-China relations may be felt everywhere.

Alicia Garcia Herrero is an adjunct professor at Hong Kong University of Science and Technology and a senior researcher at the Bruegel think tank.

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China’s monetary easing shows how much it fears Trump – Asia Times

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President Xi Jinping claims to have “full trust in meeting this week’s economic growth target” and that China is continuing to play its part as the world’s largest financial growth engine.

International markets seem less certain, nevertheless. International investors were hardly interested in China’s Politburo’s striking new stimulus measures this week.

On Monday, Beijing surprised businesses with the biggest change in&nbsp, its economic position in 14 years. Xi’s coverage team is even pivoting to a “moderately free” squat from “prudent”, the first use of the terminology since the conflict of the 2008 global financial crisis.

The Politburo, the 24-member governing system led by Xi, has given the most explicit indication yet that it comprehends the enormity of the challenges affecting China.

With China’s home problems festering and private demand sweet, Beijing is bracing for Donald Trump’s inevitable trade war– and taking steps to getting ahead of the US president-elect’s affected tariffs.

According to economist Larry Hu at Macquarie Bank, Team Xi is “paving the means for a new financial easing period.” Given the slow private demand and the possibility of a new trade war, he adds,” suggests that policymakers are greatly concerned about the financial view.”

The shift to a “moderately free” fiscal policy, according to Bob Elliott, co-founder and CEO of Unlimited Funds, is “interessant to me– actually confirming the intensity and duration of the real estate economic crisis.”

It suggests, also, that more price breaks are coming. ” We do hope the People’s Bank of China to move up the pace of rate cuts following time”, says Julian Evans-Pritchard, head of China economy at Capital Economics.

Though “it’s improbable that they will cut costs anywhere near as violently” as politicians did during the Lehman Brothers problems 16 decades ago, he says, the need for more cash is clear.

More work must be done to have negative pressures, according to inflation information released on Tuesday. In November, consumer prices rose just 0.2 % year on year while dropping 0.6 % month on month, the biggest decline since March. Producer prices, meanwhile, fell for the 26th quarter in November, sliding 2.5 % year on year.

Exports fell, too, indicating that trigger efforts to date aren’t gaining the grip politicians hoped. In November, goods fell 3.9 % year-on-year.

According to economist Zhiwei Zhang of Pinpoint Asset Management,” the downturn of exports is consistent with the fragile consumer price data.” The Politburo conference provided a boost to domestic demand for the upcoming season. The market is eagerly awaiting information on what precisely the state will do.

More price reductions are both beneficial and likely. ” The People’s Bank of China has significant area to reduce the supply need ratio by at least 100 base positions in 2025″, says Carlos&nbsp, Casanova, scholar at Union Bancaire Privée.

Also, Casanova says, the PBOC may lessen the seven-day reverse mortgage rate by another 25 to 50 basis points.

He adds that “measures to increase interbank liquidity are likely to take precedence over outright rate cuts,” though. Given that M2 and credit growth are currently significantly below 2024 goals, coordinated efforts will be required to accelerate these metrics in 2025.

According to Becky Liu, a Standard Chartered Bank senior policy advisor for China, “delation pressures will continue in China,” especially as trade wars rekindle.

Brian Coulton, chief economist at Fitch Ratings, says that” for 2025 and 2026, we assume that US trade policy towards China&nbsp, will take a sharp protectionist turn”. Though there are “tentative signs of stabilization” in China’s real estate sector, it remains a clear and present danger to Asia’s biggest economy.

Wei He, economist at Gavekal Research, says that China’s growth momentum is therefore likely to remain relatively solid for the remainder&nbsp, of&nbsp, 2024 and into the new year. ” Still, the growth outlook for 2025 as a whole remains highly uncertain”, He notes. ” Some&nbsp, of&nbsp, the current supports for growth may not last”.

The front-loading&nbsp, of&nbsp, exports in anticipation&nbsp, of Trump’s tariffs will likely pull forward future demand.

” If and when higher US tariffs do arrive, exports will weaken and drag on overall economic growth”, He says. The property market’s nascent stability is still fragile and could deteriorate if government policies don’t make their mark. And since November’s stock market trading volumes have slowed, there may be a cooling in retail investor interest.

Yet for long-term government bond yields to fall much further, He adds, the PBOC would need to slash borrowing costs. ” The probability of large rate cuts is low, as lower rates would put more downward pressure on the currency even as the central&nbsp, bank&nbsp, appears likely to mount a defense&nbsp, of&nbsp, it”, He says. ” For the time being, the divergence between the bond market signals and actual economic conditions appears to be growing.”

This presents PBOC Governor Pan&nbsp, Gongsheng&nbsp, with quite a balancing act. So far, Pan has been reluctant to deploy the massive stimulus “bazooka” the PBOC did amid the 2008 global crisis.

Because Beijing is hesitant to reinflate bubbles or reward bad behavior in ways that reverse years of economic deleveraging. Additionally, it worries that property developers could default on offshore debt if the yuan falls.

China is loath, too, to provoke the Trump 2.0 White House with a weaker exchange rate. Trump might go even higher than 60 % in terms of tariffs on domestic goods, which would lessen the chances of a “grand bargain” trade agreement between Beijing and Washington.

The positive news is that China isn’t using the infrastructure apparatus it used to combat previous crises. Rather, Xi’s team and the PBOC are prioritizing increased consumer demand more directly than previously.

Xinhua news service quoted top officials as saying:” We must vigorously boost consumption, improve investment efficiency, and comprehensively expand domestic demand. We should pursue a more active fiscal and monetary policy in the coming year.

Trump’s upcoming trade war is also being aided by Xi’s Communist Party, which already has an arsenal of weapons to retaliate against the world’s largest economy.

Xi’s party launched a monopolistic behavior investigation into American Nvidia Corp. and prohibited the export of rare materials used for drones and other military applications in response to US President Joe Biden’s decision to restrict Chinese access to components for artificial intelligence chips.

Beijing’s plan to limit sales of key ingredients used to manufacture drones apply to Europe, too. China also announced this week that it is enforcing visa restrictions on some American officials who it believes are in charge of the affairs of Hong Kong.

China’s deflation dynamics aren’t all bad. Arguably, China is experiencing disinflation, not outright Japan-like deflation, and there are positives along with negatives to the phenomenon.

Chen Fengying, an ex-director of the China Institutes of Contemporary International Relations ‘ Institute of World Economic Studies, claims that this indicates that China’s economic transformation is progressing more quickly and that it is undergoing a digital economy and high-tech transformation.

Despite this, Team Xi seems determined to keep the average 5 % economic growth rate at the same level as it has been for the previous 16 years. According to Xi and Premier Li Qiang, any effort to create a more productive growth model must encourage dozens of local governments all over the country to abandon the debt-fueled infrastructure projects that are the product of previous boom-bust cycles.

The means by which local government politicians gained national respect over the past ten and a half years were generating above-trend gross domestic product ( GDP ) rates. This explains why China has too many low-vacancy skyscrapers, six-lane highways, international airports and hotels, white-elephant stadiums and ginormous apartment complexes that developers can’t complete.

This motivation partially accounts for why municipalities struggle with the burden of LGFV-related debt. Much of this borrowing is of the off-balance-sheet variety. At the start of 2024, the International Monetary Fund estimated that LGFV debt had risen to roughly&nbsp, 47.9 % of China’s GDP, or&nbsp, 60.2 trillion yuan ( US$ 8.3 trillion ).

If 2024 taught Beijing anything, it’s that certain laws of economic gravity still apply to nations transitioning from state-driven and export-led growth to services, innovation and domestic consumption.

According to one of those laws, developing economies must establish credible and reliable markets before influxes of billions of dollars from outside. Regulators also need to methodically improve transparency, encourage companies to play better governance, develop trustworthy surveillance systems like credit rating players, and strengthen the financial architecture before&nbsp, the&nbsp, world shows up.

On&nbsp, Xi’s watch, China has become less transparent and&nbsp, the&nbsp, media less free. And this is&nbsp, the&nbsp, problem facing Xiconomics: Too often China has believed it can build a world-class financial system&nbsp, after&nbsp, waves of foreign capital arrive.

Xi’s team is stepping up efforts to reverse this approach. However, the recent events in&nbsp mean Xi’s reform team is being watched as rarely as possible. With China’s$ 18 trillion economy facing turmoil in a variety of sectors, it’s vital for Xi’s technocrats to accelerate the work of building a stabler, more resilient financial system.

And for Beijing to lessen recent years ‘ erratic regulatory environment. Jack Ma, the founder of Alibaba Group, made a public appearance at an Ant Group event earlier this week.

It was his first since the company’s mammoth$ 37 billion initial public offering ( IPO ) got pulled in late 2020 amid Beijing’s crackdown on internet platforms. There, Ma said he expects “more miracles” from Chinese fintech companies and opportunities brought on by artificial intelligence.

The underlying economy matters, too. Global investors are paying close attention to whether the grand rhetoric from Xi and Li is translated into practical action. That’s particularly so for pledges to accelerate efforts to end&nbsp, the&nbsp, property crisis, stabilize local government finances and strengthen China’s capital markets.

Earlier this year, Xi’s team took a big swing for&nbsp, the&nbsp, future with plans to unleash “new productive forces” to create a more stable and productive economy. By providing targeted liquidity to troubled sectors, The PBOC has bolstered things.

Stock buying by&nbsp, the&nbsp, “national team” of state-run funds also helped stabilize things. For all China’s challenges, the CSI 300 Index is up nearly 20 % over the last 12 months.

But as Trump 2.0 arrives on January 20, 2025, Xi and Li have their work cut out to recalibrate growth engines and deleverage&nbsp, the&nbsp, economy while also ensuring Trump’s tariffs don’t slam top-line GDP rates. As global headwinds intensify, Beijing is under internal pressure to hit&nbsp, the&nbsp, gas anew&nbsp, on&nbsp, fiscal and monetary stimulus.

Recent data “are a clear sign of the fact that corporate willingness to invest has yet to be restored,” says former PBOC economist Sheng Songcheng, a professor at China Europe International Business School. We think there is still room for further RRR, or reserve requirement ratio, and interest rate cuts, given that the central bank continues to support a supportive monetary policy.

The biggest interest rate surprises may result from Beijing in the year to come in spite of the focus on the Federal Reserve in Washington and the Bank of Japan in Tokyo.

Follow William Pesek on X at @WilliamPesek

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Dozens of condo scam victims seek help

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If people agreed to purchase condominium units, the Pathum Thani company offered to pay off their debts.

PUBLISHED: 11 Dec 2024 at 20: 25

Veteran social activist Pavena Hongsakula (right) leads a group of 70 people to file complaints with the Department of Special Investigation (DSI) on Wednesday after they were duped into purchasing condominium units, resulting in total losses of 3 billion baht. (Photo supplied/Wassayos Ngamkham)
After being duped into purchasing condominium units, which resulted in total losses of 3 billion baht, veteran social activist Pavena Hongsakula ( right ) leads a group of 70 people to file complaints with the Department of Special Investigation ( DSI) on Wednesday. ( Photo supplied/Wassayos Ngamkham )

A group of 70 people have complained to the Department of Special Investigation ( DSI) that they were duped into purchasing apartment products, resulting in total loss of 3 billion ringgit.

Pavena Hongsakula, chairman of the Pavena Foundation for Children and Women, led the group in filing the issue on Wednesday. She claimed that the team only had about 200 affected people in it.

On Saturday, the plaintiffs complained to the basis that they had been defrauded by a debt-relief firm that offered to pay their payment card payments. In returning, they had to signal contracts to buy property products.

One victim, who gave her name only as Meen, said that the corporation, located in Khlong 2 in Lam Luk Ka city of Pathum Thani, contacted her and offered to live her credit card debt equivalent to 900, 000 baht. She claimed that although the business did give her debts, she had no idea how she knew.

She also reported to the Khu Khot police station in a statement that the business had paid her back in exchange for the loan. She was required to agree to participate in a condominium getting project under a contract with the organization.

She initially assumed she had agreed to purchase one product, but she later learned that the business had submitted her paperwork to numerous institutions to obtain loans. She is currently owed 16 million ringgit for the purchase of four condominiums.

She claimed that the business had promised to pay for the remaining three units. According to the agreement, the company agreed to buy back all of the models within two years. But, it gradually defaulted, leaving her responsible for the entire loan and facing lawsuits from the lenders.

Other victims ‘ views were identical. Some were tricked into purchasing several products, resulting in debts totaling up to 40 million ringgit.

The subjects set up a Collection team that has more than 200 people, said Ms Pavena. All was extremely frightened because the business had already shut down.

Ms. Pavena urged the DSI to work with lenders to negotiate debt reform for the victims, conduct an investigation into the company and other companies that use similar strategies, and post ads on social media.

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Thai cabinet approves measures to ease household debt

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BANGKOK: Thailand’s cabinet on Wednesday ( Dec 11 ) approved debt support measures, including interest suspensions and reduced principal payments, to help tackle household debt, Prime Minister Paetongtarn Shinawatra said. The steps will help wholesale lenders and smaller companies, she told a media event. Finance Minister Pichai Chunhavajira informed investigatorsContinue Reading

Trump’s BRICS ultimatum won’t deter de-dollarization – Asia Times

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The US President-elect is undoubtedly concerned about what the BRICS countries might have in business for the US dollar as Donald Trump prepares for a second term in the White House.

And, not surprisingly, Trump is threatening big-time fines for any hint of de-dollarization among Brazil, Russia, India, China, South Africa and the grouping’s novel people, including Saudi Arabia and the United Arab Emirates.

Trump recently posted to his Truth Social system, saying that the notion that the BRICS countries are trying to walk away from the money while we watch and watch is over.

We demand a commitment from these nations that they won’t create a new BRICS money, nor will they support any other money to replace the powerful US money, or that they will be subject to 100 % tariffs, and that they should anticipate saying goodbye to selling into the wonderful US market.

Never simply a delightful bed from the Trump 2.0 group. Trump’s affected tariffs on the BRICS may only serve as fuel for the” International South” to look for or develop a buck alternative.

According to Michael Wan, senior currency analyst at MUFG Research, it’s unclear how 100 % tariffs on a group of nations that make up 37 % of global GDP would actually occur.

Additionally, it’s unclear how the BRICS’ sky-high taxes would benefit the world’s largest economy. But as Deutsche Bank argues, Trump’s preoccupation with a powerful money appears greater than ever.

” This seems to further show that money strength is an concern for the new leadership, unlike Trump 1.0″, when the US took a less ambitious approach, Deutsche researchers wrote.

Development countries have plenty of reason to be concerned about the dollars with US government debt exceeding US$ 36 trillion and Trump countering enormous budget-busting tax cuts. Washington, after all, only has one AAA record score left — from Moody’s Investors Service.

Morgan Stanley, for one, is advising that it might be time to sell the dollars. According to scientist David Adams,” a lot of the great news for the USD” has already been priced, with the majority of them having “largely internalized the US outperformance storyline” based on Trump’s pledges to impose their tax and trade policies. Businesses, though, may become “overestimating the rate, depth and scale” of those swings.

” We sense investment attitude on the whole is very productive on the franc, suggesting asymmetrical risks for a’ problems trade,’ in the months ahead”, Adams noted.

Trump World has made it clear the US Federal Reserve’s democracy, a key component in global confidence in the greenback, is also on the board come January. The” Project 2025″ system that his Democratic party cooked up for Trump 2.0 includes treatments for curbing the Fed’s much-vaunted freedom.

The Fed almost escaped Trump 1.0 unhurt. Trump placed the pressure on his hand-picked Fed Chairman Jerome Powell first and frequently during his first term in office, which spanned from 2017 to 2021.

Trump attacked the Powell-led Fed in statements, press events and on social media. Trump also mulled firing Powell. The Fed started adding liquidity to an business that didn’t have any additional assistance in the same year.

In October, Trump mocked Powell’s policy staff over. ” I think it’s the greatest job in government”, Trump told Bloomberg. Everyone talks about you like a god when you say, “let’s say turn a gold,” and you show up to the office once a month.

But&nbsp, Trump&nbsp, even defends the right of the leader to persuade the Fed into lowering costs. In August, Trump said,” the Federal Reserve&nbsp, is a very fascinating thing and it’s sort of gotten it wrong a bunch”.

Trump added,” I feel the leader should have at least stayed there, yeah. I feel that clearly. I think that, in my situation, I made a lot of money. I was extremely prosperous. And I believe I have a better impulse than those who, in many cases, may become chairman of the Federal Reserve.

For Asian officials and politicians, it’s a truly personalized abuse on the Fed’s position. The largest US Treasury supplies ever held by Eastern central bankers are held by the world’s largest central banks. Japan only holds$ 1.1 trillion&nbsp, of US loan, China$ 770-plus billion.

More broadly, Asia’s largest holders of dollars are sitting on about$ 3 trillion worth. It all implies that a Trump 2.0 administration would put a lot of Asian state success in danger.

Actually so, Trump is trying to wrench up tariff-induced problems for any country — or economic bloc — brave to champion a penny alternative.

The coming Treasury Department, however, was apply currency manipulation charges, trade controls or levies on trade beyond anything Trump has previously suggested or announced.

Trump appears to be prepared to punish allies who look to conduct bilateral trade in currencies other than the dollar, as well as adversaries. In March, Trump told CNBC that he “would not allow countries to go off the dollar”, as it would be” a hit to our country”.

Yet de-dollarization has moved to the center of the BRICS agenda, particularly since the grouping’s 2023 summit. Both Trump’s and US President Joe Biden’s fingerprints are present in this backlash.

Trump’s meddling with the Fed, hints at defaulting on US debt, and fiscal excesses affected dollar perceptions significantly. When Fitch Ratings revoked Washington’s AAA status, it&nbsp, cited the Capitol Hill chaos on&nbsp, January&nbsp, 6, 2021, as a “reflection of the deterioration in governance” imperiling US finances.

Biden-led efforts to impose economic sanctions on Russia, including accusations of “weaponizing” the dollar, exacerbated the problem.

” The United States ‘ ability to hobble Russia to this extent, without firing a shot, highlights the sovereignty of the United States and the dollar in the global economy”, argues George Pearkes, an analyst at the Atlantic Council’s GeoEconomics Center.

” In this case”, Pearkes noted,” sovereignty is the degree to which a currency issuer can dictate the use of that currency”. But, he added,” by using the power of dollar sovereignty, dollar sovereignty risks endangering the reserve status, which allows it to be weaponized”.

To be sure, Pearkes noted that “aggressive use of dollar weaponization has been signaled repeatedly by US policymakers to achieve US goals in the current Ukraine dispute.”

Although this would have a significant impact on Russia, he noted that “negative feedback on dollar sovereignty will be measured in decades rather than years— and will unavoidably come.”

According to Pearkes,” the ability to restrict access to financial markets is significantly more powerful than it has historically been.” What’s more, he noted,” the weaponized dollar” was “already a fact of life in global affairs” before Russia invaded Ukraine.

Pearkes noted that” the governments of Cuba, Iran, North Korea and Venezuela can all attest to that fact, as can their civilian populations. In all four countries, dollar sovereignty has been weaponized in a contemporary context”.

Trump is, however, steadfast in his desire to avoid the risk that the Global South might lose the dollar. &nbsp,

There is no way the BRICS will ever replace the US dollar in global trade, and any nation trying should wave goodbye to America, Trump said via social media.

Trump has recently shook markets with plans to impose 25 % tariffs on Canada and Mexico as well as additional levies on China up and above the 60 % he has already threatened.

Curiously, Trump said he’s had contact with Chinese leader Xi Jinping in recent days. Over the weekend, Trump told NBC that “we’ve had communication”.

At the Group of 20 summit in Japan in June 2019, Trump and Xi had their final in-person meeting. Trump stated to NBC,” I had an agreement with President Xi, who I got along with very well.

Still, Trump World is clearly steeling for a Trade War 2.0 with Xi’s Communist Party. Last week, Trump buttressed his” Tariff Man” street cred by naming uber-China hawk Peter Navarro as his top trade adviser. Navarro, &nbsp, who in 2011 co-authored a book titled” Death by China”, rarely misses a chance to accuse Xi’s party of “robbing us blind”.

Trump also appointed aggressive China critic Marco Rubio as secretary of state, and padded his next trade negotiations team with extremists like Jamieson Greer and Robert Lighthizer.

Trump 2.0’s supporters contend that tariffs are merely a tactic used to bring Xi’s party to consensus. Yet Xi’s inner circle seems unsure of Trump’s sincerity concerning a new “grand bargain” trade deal.

Case in point: Beijing’s move to limit the sales of key components used to build drones to the US and Europe. While bad news for Ukraine’s defense against Russia, it also serves as a sign of upcoming broader export restrictions.

China also opened an investigation into US chipmaker Nvidia this week following concerns that the business might have violated its anti-monopoly laws. This is also being interpreted as a sign of targeted Chinese trade war retaliation measures. Nvidia is at the center of Nvidia’s efforts to rule the artificial intelligence market.

Earlier this year, the BRICS added Egypt, Ethiopia, Iran, Saudi Arabia and the UAE to its ranks.

Mariel Ferragamo, a member of the Council on Foreign Relations, said,” The addition of Egypt and Ethiopia will amplify voices from the African continent.” Egypt also shared close political ties with Russia and close business ties with China and India. As a new BRICS member, Egypt seeks to&nbsp, attract more investment&nbsp, and improve its battered economy”.

According to Ferragamo,” the addition of Saudi Arabia and the UAE would bring in the Arab world’s two biggest economies, as well as the second and eighth top oil producers globally.”

Yet the most powerful connector among BRICS members, old and new, is stepping out of Washington’s financial orbit. As such,” we think the bloc&nbsp, has &nbsp, the most potential to forward its de-dollarization agenda in&nbsp, FX reserves and fuel trade”, said Chris Turner, global markets head at ING Bank.

Turner noted that the BRICS bloc controls 42 % of global central bank currency reserves, likely contributing to the global de-dollarization process.

The BRICS is “gaining more and more visibility as a trade partner for other emerging markets, particularly in the fuel trade,” adding that it is “gaining more and more ground in regional trade.” BRICS accounts for 37 % of the EM fuel trade, a key area of interest for de-dollarization”, he said.

The BRICS , Turner noted, “is actively de-dollarizing its financial flows from above-average levels, as seen through declining shares of US dollar in their cross-border bank claims, international debt securities, and broader external debt”.

The BRICS , according to Turner, “has a much smaller global presence in those areas that limits the impact of its regional de-dollarization on the global role of the US dollar.”

Even so, the BRICS are causing the dollar to pivot, despite Trump’s efforts to stifle the process. Perhaps the better course of action would be to improve the US financial system.

But that seems unlikely as Trump eyes additional multi-trillion-dollar tax cuts sure to push America’s national debt toward an eye-watering$ 40 trillion over the next four years.

Trump may also be using the reserve currency to defy de-dollarization advocates. With the BRICS cast playing the role of a spoiler, the dollar will likely be a major battleline in the Trump 2.0 era.

Follow William Pesek on X at @WilliamPesek

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Adani Group: Will bribery charges hinder India’s renewable energy goals?

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Reuters Indian billionaire Gautam Adani attends the 51st Gems and Jewellery Awards in Jaipur, India, November 30, 2024. REUTERS/StringerReuters

Business leaders have told the BBC that corruption allegations made by a US judge against the Adani Group are unlikely to significantly alter India’s commitment to fresh energy.

Delhi, which is essential to global efforts to combat climate change, has committed to getting half of its energy needs or 500 gigawatts ( GW ) of electricity from renewable sources by 2032.

The Adani Group is expected to make a twelfth of that contribution.

The legal troubles in the US could temporarily delay the group’s expansion plans but will not affect the government’s overall targets, analysts say.

Over the past ten years, India has made significant progress in building a clean energy facilities.

The nation is growing at the “fastest level among key economy” in adding solar potential, according to the International Energy Agency.

Installed fresh strength power has grown five-fold, with some 45 % of the region’s power-generation capacity- of almost 200GW- coming from non-fossil fuel sources.

Charges against the Adani Group- essential to India’s fresh energy ambitions- are “like a passing black cloud”, and will not adequately impact this momentum, a previous CEO of a rival firm said, wanting to remain anonymous.

Getty Images A maintenance worker inspects solar panels at a solar power plant operated by Ayana Renewable Power Pvt. in Tuticorin, India, on Wednesday, March 20, 2024. Getty Images

Gautam Adani has vowed to invest $100bn (£78.3bn) in India’s energy transition. Its green energy arm is the country’s largest renewable energy company, producing nearly 11GW of clean energy through a diverse portfolio of wind and solar projects.

Adani has a goal to scale that to 50GW BY 2030, which will make up roughly 10 % of the region’s unique installed power.

Over half of that, or 30GW, may be produced at Khavda, in the northern Indian state of Gujarat. It is billed as the largest fresh power plant in the world, five times the size of Paris, and the crown jewel of Adani’s solar initiative.

However, US prosecutors are now focusing on Khavda and Adani’s other renewable energy amenities, alleging that they obtained bribes from American officials after winning contracts to supply power to express submission companies from these facilities. The organization has refuted this assertion.

However, the consequences are now discernible at the organization level.

Adani Green Energy immediately canceled a$ 600 million bond offering in the US when the indictment was made public.

France’s TotalEnergies, which owns 20 % of Adani Green Energy and has a joint endeavor to develop various solar projects with the company, said it will end new capital infusion into the business.

Significant credit ratings agencies- Moody’s, Fitch and S&amp, P- have since changed their view on Adani team companies, including Adani Green Energy, to bad. This may affect the company’s ability to raise money and increase the cost of doing so.

As global loans become resentful of the group’s increased exposure, researchers have also raised fears about Adani Green Energy’s ability to refinance its debts.

International lenders like Jeffries and Barclays are now said to be reviewing their ties to Adani despite the group’s dependence on foreign banks and local friendship issues for long-term bill increasing from little 14 % in the 2016 fiscal year to nearly 60 % as of this writing, according to a Bernstein note.

Nomura, a Japanese brokerage, claims that new financing should “gradually resume in the long term” despite the possibility that it might dry up in the short term. Meanwhile, Japanese banks like MUFG, SMBC, Mizuho are likely to continue their relationship with the group.

The “reputational and sentimental impact” will fade away in a few months, as Adani is building” solid, strategic assets and creating long-term value”, the unnamed CEO said.

Getty Images This aerial photograph taken on October 15, 2024 shows solar panels installed at the Adani Green Renewable Energy Plant in Khavda, in India's Gujarat state. Getty Images

The Adani Group’s spokesperson told the BBC that it was” confident of delivering 50 GW of renewable energy capacity and committed to its 2030 goals.”

Adani stocks have rebounded significantly from their lowest levels since the US court’s indictment.

Some analysts told the BBC that Adani’s competitors might benefit from a potential slowdown in funding.

While Adani’s financial influence has allowed it to rapidly expand in the sector, its competitors such as Tata Power, Goldman Sachs-backed ReNew Power, Greenko and state-run NTPC Ltd are also significantly ramping up manufacturing and generation capacity.

” It’s not that Adani is a green energy champion. Being the biggest private developer of coal plants in the world, it is a big player that has walked both sides of the street,” said Tim Buckley, director at Climate Energy Finance.

A large entity, “perceived to be corrupt” possibly slowing its expansion, could mean “more money will start flowing into other green energy companies”, he said.

According to Vibhuti Garg, director of South Asia at the Institute for Energy Economics and Financial Analysis ( IEEFA ), market fundamentals also continue to be strong, with India’s demand outpacing supply, which is likely to maintain the appetite for large investments.

What could in fact slow the pace of India’s clean energy ambitions is its own bureaucracy.

” Companies we track are very upbeat. Finance isn’t a problem for them. If anything, it is state-level regulations that act as a kind of deterrent”, says Ms Garg.

Getty Images Wind turbines at the ReGen Powertech Pvt. farm in Dewas, Madhya Pradesh, India, on Friday, Sept. 9, 2022. Getty Images

Most state-run power distribution companies continue to face financial constraints, opting for cheaper fossil fuels, while dragging their feet on signing purchase agreements.

According to Reuters, the controversial tender won by Adani was the first major contract issued by state-run Solar Energy Corp of India (SECI) without a guaranteed purchase agreement from distributors.

According to SEC I’s chairman, there are 30GW of operational green energy projects on the market without buyers.

According to experts, the 8GW solar contract at the heart of Adani’s US indictment also reveals the tense tendering process, which required solar power generation companies to produce modules, which limited the number of bidders and increased power costs.

According to Ms. Garg, the court’s indictment will undoubtedly cause the bidding and tendering rules to tighten.

According to Mr. Buckley, a cleaner tendering process that lowers risks for both developers and investors will be crucial going forward.

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Reminder to America: How republics succeed, falter and fail – Asia Times

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The US has a fragmented and impressive economy that draws international talent and unparalleled military strength, which gives it an edge over other republics.

Yet the Roman Republic, which had its own analytical benefits, eventually fell to authoritarian rule, and the US faces a similar fate if it fails to protect administrative dignity and unchallenged power continues to grow.

Reform is essential to maintaining democratic government, but history shows that enshrined strength frequently threatens this process. Social function and the growing impact of business interests threaten to destroy the basic principles of the US, posing a threat to its long-term security.

From its beginning, the US has worked to address its internal inconsistencies by guaranteeing good therapy for its citizens. Autocratic impulses even emerged first, with minute President John Adams’s Alien and Sedition Acts targeting political dissent, refugees, and free conversation.

Lincoln later expanded his executive power during the Civil War, avoiding Congress to protect the Union and end slavery, which has become the most controversial and considerable political issue since the country’s founding.

Despite for departures from Constitutional procedure—sometimes for great reasons—the system’s checks and balances finally resisted after senior overreach, likeFDR’sfailed Court-Packing plan.

The unique political challenges facing democratic techniques are concerning, but the degradation of democratic culture also causes irreversible shifts in the political landscape. Political bribery, unregulated imperialism, and government serving business interests over citizens mix to continuously get the system.

A select group of actors has created a constant, increasingly scripted cultural-political spectacle, causing civic decay. As a result, the public has reduced active participation in governance in exchange for the passive right to cheer or criticize from the sidelines.

The Roman Republic’s collapse, which endured for centuries before becoming a slave country, provides valuable context—lessons on not only what values to uphold but also on how reform efforts can backfire.

Half-hearted efforts to fix inequality and instability often strained the system, pushing it closer to dysfunction and leading it to autocracy. Learning from Republican Rome’s successes and failures can be applied to the challenges of today.

A balanced republican political system encourages elites to compromise, build consensus, and compete for public approval, qualities the early Roman Republic struggled to develop after its establishment in 509 BC.

The Senate, which was largely dominated by the patrician aristocracy, had theoretically the power to act as an advisory body, but in reality it had significant influence over finances, foreign policy, and much of the legislative process. Nonetheless, there was strong competition among patrician families for the two annual consulship positions.

In addition to limiting any power concentration, these roles, which were filled through the cursus honorum ( course of honor ), allowed two capable leaders to ascend to the position in a predetermined hierarchy and shared short-term executive authority.

Consuls often entered the Senate or assumed other political positions after their terms, where they could be prosecuted for misconduct. Because of this rotation and accountability, leaders ‘ interests were better off running the state than accumulating personal acclaim for their roles or accomplishments.

The design of Roman statues also supported this culture, celebrating the civic virtue of individuals over personal achievements. In deft contrast to the idealized perfection of Greek art, the stereotypes depict aging and imperfections. The Republic also barred actors from government, viewing their imitation of life as deceptive and unworthy of public office.

Republican Rome thrived on political engagement, despite uneven participation, like other effective republican city-states. The Republic’sseasonal political process, shaped by agricultural cycles, military campaigns, and religious festivals, advantaged wealthy landowners who could afford to leave their estates for politics, perpetuating uneven and inconsistent efforts to address problems.

Military victories were frequently a factor in political advancement, which made them popular and occasionally pursued for personal reasons rather than strategic reasons.

Yet this seasonal structure still created predictable opportunities for many citizens to travel to Rome to participate in political affairs, ensuring concentrated and focused decision-making during key periods. Additionally, it found ways to lessen the power imbalance between the patricians and the commoners, or plebeians.

TheConflict of the Orders (5th to 3rd centuries BC ) brought about significant gains for plebeians. Rome’s economy was severely hampered by mass strikes, and soldiers refused to fight, leading to changes like the Concilium Plebis, along with theComita Tributa.

Additionally, after 451 BC, legal safeguards via the Twelve Tables and the establishment of the Tribunes of the Plebs—two annually elected magistrates with executive power to protect plebeian interests—were also won.

Plebeians gained greater social mobility during the fourth century BC, including the right to wed patricians, as well as gaining access to the consular office, the Senate, and other positions of religious authority.

After 338 BC, the Latin Rights extended certain privileges to non-Roman communities in Italy, such as intermarriage and participation in commerce. Although full citizenship gradually became available, these measures integrated new populations while preserving the identity of Roman citizens.

Despite the Republic’s growing wealth and territories, inequality remained rife. The army’s backbone was made up of Plubeians, who suffered the most from imperial expansion but hardly received any rewards.

Longer military service in support of campaigns left them unable to tend to their farms, indebting many. Plubeians frequently capitalized on this by acquiring their lands, but the use of slave labor during conquests reduced plebeians ‘ bargaining power as necessary workers. Many moved to Rome, swelling the urban poor.

Prior republics, including Rome, had a history of erasing debts and lowering slavery to restore economic balances, but these measures ceased in the Late Republic. Expansion also strained governance, as new territories were home to communities who had fewer rights than Roman citizens andpaid heavily in taxes, further exposing the Republic’s systemic inequities.

Policies intended to combat inequality frequently ended up worsening it. The Lex Claudia ( 218 BC ), for instance, barred senators and their sons from owning large commercial ships to prevent them from dominating Rome’s expanding maritime trade. However, this primarily benefited wealthy Plebeians and other elites who could afford their own fleets, widening economic disparities.

Richer plebeians also disproportionately benefited from privilegeslike access to higher office, enabling only some to join the senatorial elite. The horseman’s order, which had its roots in Rome’s cavalry, eventually developed into a distinct wealthy class. Though largely lacking formal political power, members enjoyed elevated benefits and economic strength that deepened Rome’s social stratification.

Many of the new elites developed into populist reformers, or<a href="https://www.thoughtco.com/ancient-roman-history-<a href="https://www.thoughtco.com/ancient-roman-history-optimates-119359″>optimates-119359″>populares ( “for the people” ), or<a href="https://www.thoughtco.com/ancient-roman-history-optimates-119359″>optimates ( “best men” ), who opposed the senatorial elite. Distinctions between the two groupswere not always strict—the <a href="https://www.thoughtco.com/ancient-roman-history-<a href="https://www.thoughtco.com/ancient-roman-history-optimates-119359″>optimates-119359″>populares included both new aristocratic elites and sidelined senatorial factions seeking to reclaim influence lost to dominant <a href="https://www.thoughtco.com/ancient-roman-history-optimates-119359″>optimates.

Populares-aligned politicians used plebeian support to alter the power balance in their favor, shifting from genuine reform to self-serving opportunism. Alliances were fluid, showing how Roman politics often prioritized status and influence over rigid ideology.

Plebeians ‘ demands for greater equality were further fueled by elite infighting, which used their citizenship and numbers to further their advantage. Political gridlock became more frequent, and violence escalated.

Numerous of their supporters were killed in addition to prominent pro-Plebean leaders like Tiberius Gracchus ( 133 BC ), Gaius Gracchus ( 121 BC ), and Publius Clodius Pulcher ( 52 BC ). In this way, Roman politics devolved into a zero-sum struggle where the defeated often faced death.

They were more prone to break with political customs and precedents when it was appropriate for their cause because of the use of violence and intimidation to harm plebeian interests, coupled with persistent inequality. Power was increasingly extended in executive positions, with populares-aligned Gaius Mariusholding seven consulships, and citizen soldiers showing increasing loyalty to individual commanders rather than the state.

A dramatic overcorrection resulted from Marius ‘ eventual defeat by Lucius Cornelius Sulla, a patrician allies ‘ ally. During his dictatorship ( 82–79 BC ), Sulla’s constitution aimed to curb instability by empoweringthe old aristocracy and Senate, severely weakening the tribunes, and restricting thepowers of citizenship.

The enthralled aristocracy failed to address the root causes of economic inequality. Ambitious figures like Pompey, through military power, and Marcus Licinius Crassus, through immense wealth, exploited these tensions to consolidate power and play kingmaker.

Under Julius Caesar’s plebeian-friendly policies bypassed the Senate by utilizing popular assemblies, Sulla’s reforms ultimately failed, exposing the new fragility of Rome’s legal system.

Thegrowing glorification of individual leaders reached a turning point when Caesar became the first living Roman to appear on a coin, a stark departure from tradition. After being deemed a dictator for life, his assassination by senators infuriated the electorate, which sparked a power struggle and civil war. This ultimately led to the rise of Caesar’s adopted heir, Octavian, who centralized authority in 27 BC and later became known as Augustus.

Many Romans willingly traded their political rights for oligarchic rule, violence, and uncertainty while maintaining a facade of republican governance. When rumors spread of Octavian relinquishing his special powers, public sentiment opposed the idea.

With the emergence of the Roman Empire, an urban proletariat that was dependent on state-sponsored food distribution and entertained by gladiator games became more and more peaceful under the strategy of “bread and circuses,” strengthening the new order.

A reshuffling of the nobility, suppression of opposition, and unchecked territorial expansion fueled instability in Republican Rome. Despite its 500-year existence and shoddy attempts to address it, persistent inequality remained the Republic’s fundamental flaw.

These pose lessons for the US today. Inequality continues to be a major issue in the US. Once marked by strong social mobility, at least for white residents, ithas declined since the 1940s, initially due to the end of the post-war boom but now reflecting deeper systemic flaws.

US social welfare falls behind in comparison to the EU, and policies like corporate bailouts highlight how citizens bear the burden of debt while large corporations profit from government regulation and lucrative contracts. Aculture of consumerism encourages US citizens to take on debt, mirroring the problems of the Roman Republic, instead of building a more efficient economic system.

Republican Rome’s challenges and those faced by the US are similar, but each has its own unique set of problems. In Rome, the wealthy were directly involved in political life, using their influence to shape decisions.

In contrast, US elites have access to representatives, who are encouraged to advance their interests despite not typically coming from the wealthiest social classes. This indirect control reduces the accountability of the elite, as their influence is masked by the modern US political structure and hidden from public view.

Although corrupt or incompetent politicians can be imprisoned or tried for, those who are truly responsible for the system remain largely unaffected, allowing the pay-to-play political system to continue unabated.

Rome’s political processes grew opaque and less respected, a trend increasingly seen in contested US elections in recent decades. After George W. Bush’s contentious victory in 2000 and Trump’s victory in 2016, there were still doubts among Democrats that remained within institutional boundaries.

However, election denial escalated dramatically with Trump’s response to Joe Biden’s 2020 victory, and the ensuing 2021 insurrection marked a major challenge to the peaceful transfer of power and trust in electoral integrity.

Establishing trust in the process calls for strict rules regarding voting, role assignment, and transparency in procedures. Laws crafted through open processes rather than private deals are crucial, allowing citizens to view the electoral process and governance as fair, smooth, and rooted in mutual understanding.

However, the risks of unrelenting public political engagement have grown even more acute. Modern technology enables 24/7 politicization, and constant campaigning distracts from governance and risks citizen burnout.

Public apathy makes it possible for organized elites to rule politics, and only well-resourced groups can effectively mobilize and strategize, according to legal scholar Ganesh Sitaraman.

The US judiciary remains distinct in its reliance on common law, a system shared by a few English-speaking countries, allowing adaptability through evolving precedents as new cases are brought forward.

Juries ‘ use imposes a fundamental responsibility on citizens ‘ moral and legal judgment, ensuring public participation. However, this system is increasingly vulnerable to politicization, as judicial appointments and voting processes for judges and other judicial/law enforcement positions risk undermining impartiality and fairness.

Political parties were also opposed by the Founding Fathers because they feared factionalism would sever national unity. Today, the two major parties and their supporters increasingly treat politicsas a sports rivalry, prioritizing spectacle over policy debate.

Both parties rely on the power of celebrity to entice voters, with Ronald Reagan becoming the first actor-president in 1981, followed by entertainer Trump in 2017, while Democrats have consistently relied on the power of celebrity to win over voters.

This reliance on high-profile public figures allows citizens to disengage, as these amplified individuals are granted tacit approval to shape policy—even when they lack the expertise to do so—reducing the public’s role in democratic governance to passive spectatorship.

Violent language undermines the foundation of republican culture of compromise. While Trump is commonly associated with this trend in the US ( and remains its most persistent voice ), Democrats have also contributed. In the 1960s and 1970s, political violence was primarily directed at influential US figures, but it is now increasingly threatening local officials as well.

Comments about the existential danger posed by political opponents have been consistently undercut by post-election embraces. Trump was welcomed back to the White House by President Obama in 2016, just like Biden did in 2024, and he also toned down his stance toward them after victories. These radical shifts in messaging reveal the performative nature of politicians ‘ language and weaken the credibility of political discourse.

A healthy republic relies on the public’s support and deliberation as its last resort. Yet although Congress holds the constitutional authority to declare war, it has not done sosince 1941.

Instead, executive war powers have grown as a result of the abuse of emergency measures, preventing public sway over war and peace decisions. Numerous presidents have labeled major recent wars like Vietnam, Iraq, and Afghanistan as mistakes, eroding trust in leadership to responsibly conduct war.

The Trump administration now has to address undocumented populations and immigration. Past policies like Reagan’s Amnesty Bill and Obama’s executive action for so-called Dreamers caused friction and had far-reaching political consequences. Immigration was a central issue in the 2024 election, with Trump likely to have a strong support for a crackdown on illegal immigrants.

Solutions, however, must go beyond piecemeal fixes or mass deportations, which risk violating human rights and republican ideals. The main problems with immigration reform and enforcement are also ignored by less drastic approaches, like those pursued by Biden.

Rome offers a cautionary tale: patricians and plebeians showed rare unity in the Late Republic when they united against Gracchus after hepledged to extend citizenship rights to other populations. The situation demonstrates the need to increase responsibility.

The US economybenefits from labor tied to undocumented populations, and the root causes of migration, includingdecades of US intervention in Latin America, must also be acknowledged.

The US was initially established as a republican league of states, but it soon realized that national cohesion was necessary to ensure security and economic cohesion. Over time, the growing centralization of authority in Washington eroded the balance of this system and led to fears of ever-expanding executive power, particularly over matters of war.

This consolidation of power made the federal government more assertive and interventionist in its foreign policy, enabling it to project influence globally. Yet US states retain significant rights, functioning in a federated system with distributed powers that allow states to experiment with their own agendas. Among the options available to them are working together to counterbalance federal authority include health care reforms, voting rights, and working together.

American citizens also benefit from strong protections enshrined in the Bill of Rights, which, despite historical flaws in terms of racial and gender equity, established safeguards against government overreach.

However, a hesitance to fully leverage these rights remains, partly due to ignorance. Rights that are intended to advance all citizens, such as the right to bear arms, or judicially decided issues like access to abortion, frequently turn into sources of conflict and are presented as victories for one side as opposed to universal benefits.

This risks turning benefits into partisan battlegrounds, undermining their broader societal purpose. Many of the rights that Americans enjoy were secured by legislative action driven by social movements, not by courts interpreting the Constitution, which shows that the true source of rights is in the collective efforts of citizens and legislators.

US presidents have been generally unable to radically alter the nation’s political system, though the Jacksonian era proves there are exceptions. The two-party system was strengthened, the use of veto power expanded, and centralized executive authority were all the results of Andrew Jackson’s presidency ( 1829–1837 ), which fundamentally altered the role of the presidency.

Jackson, a populist, challenged corrupt elites and the political establishment but also aggravated tensions between the federal and state governments. Democratic participation was increased, but it was only for white men, and led to the substitution of officeholders with individuals loyal to them, with support for the continuation of slavery and the ethnic cleansing of Native Americans.

Concentrating authority away from the executive in a few oversight bodies or enlarged bureaucracy can also backfire, often encouraging corruption rather than transparency. For instance, in the 1970s, legislative changes to campaign finance intended to improve transparency unintentionally led to an increase in lobbying, attack ads, and electoral exploitation.

This shift, intended to curb corporate influence, instead deepened it, allowing corporations and interest groups to find new ways to wield power. While the founding fathers were focused on preventing tyranny through checks and balances, they were unable to anticipate the significant influence that corporate interests would have on political outcomes, leading to the development of a system where legal monetary contributions increasingly predominate policy.

The US faces a major struggle in adapting its republican system to the realities of the 21st century. Executive power has played a key role in addressing significant issues, such as the end of slavery, but it also poses a risk of abuse.

Efforts to forcefully reform republics from the top down, like those seen in Rome, often impose rigid systems that fail to meet society’s evolving needs. On the other hand, overreliance on populist power without the necessary safeguards can lead to impulsive choices and unstable government.

Rejecting populism does not equate to diminishing civic engagement, rather, it calls for more sophisticated participation for constructive political processes. Important power is still in place for Americans, including the right to organize, protest, and use of free speech and association.

Realizing the full potential of these rights and their responsible use requires a deeper understanding of the political system and a commitment to responsible use.

This can be accomplished by gaining knowledge from other nations that support public funding, educate young people, and promote political legitimacy through transparency and participation.

Ignoring the need to address the decline in civic culture and public understanding of the system of government will further weaken the foundation of democratic practices.

Although organizations like the Bipartisan Policy Center have been criticized for being compromised by corporate interests, reforming the US republic is necessary because of this.

Over time, bipartisanship has become entrenched as a long-term alignment in support of big-money interests and an imperialist foreign policy, sidelining efforts for systemic change and diverging sharply from the best aspects of the early US vision.

Contrastingly, many reform advocates advocate for quick fixes rather than lasting solutions, often through partisan lenses, populism, or authoritarian impulses.

Meaningful reform, however, will be a slow and contentious process, and progress will remain elusive without addressing the root causes of major problems and accepting a collective responsibility to solve them.

John P. Ruehl is a world affairs correspondent for the Independent Media Institute and an Australian-American journalist who resides in Washington, DC. He is a contributor to several foreign affairs publications, and his book, Budget Superpower: How Russia Challenges the West With an Economy Smaller Than Texas ‘, was published in December 2022.

This article was written by Human Bridges and republished with permission.

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Southern Thailand’s Hat Yai city centre spared from floods

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PUBLISHED: 8 Dec 2024 at 15: 48

A road on the outskirts of Hat Yai city in the southern Thai province of Songkhla is seen flooded after two major canals overflowed last month. (Photo: Assawin Pakkawan)
After two significant rivers overflowed last month, a street in the southern Thai state of Songkhla has been spotted to be flooded on the fringes of Hat Yai city. ( Photo: Assawin Pakkawan )

SONGKHLA: Companies have yet to determine the losses incurred by business disruptions caused by the crisis, but Hat Yai’s central business district was largely spared from the floods, which left over four billion ringgit of destruction throughout the state, according to Songkhla’s chamber of commerce.

Songpol Chansiriwathanathamrong, chairman of the country’s chamber of commerce, said the storms that hit the South affected over 540, 000 persons across 533 settlements in the country’s 16 regions.

He claimed that while the room had estimated property damage worth more than four billion baht, losses incurred by temporary business shut downs during the floods have not yet been reported. &nbsp, &nbsp, &nbsp,

The worst of the flood, which specifically affected people living in rural areas, was largely spared from the central business district in Helmet Yai, he said.

” Up in 2010, the storms paralysed the central business district and caused over 10 billion ringgit of destruction, but this time the region was safe because of Klong Phuminartdamri, which is able to discharge about 1, 200 square feet of water per second from the area”, he said.

The chamber intends to ask the government to impose a 3-3-6-month debt moratorium and grant gentle loans to impacted residents so they can repair their homes and businesses to aid residents in dealing with the effects of the floods, according to Mr. Songpol.

” Without loan repayment suspension, non-performing funding may spike”, he said.

He stated that the tourism industry will collaborate with the Tourism Authority of Thailand ( TAT ) to provide promotions that will increase visitor numbers and boost the economy.

Sitthipong Sitthipataraprapa, president of Hat Yai’s hotels organization, said hospitality and event tickets which would have pulled in 300-400 million baht in earnings were cancelled because of the floods.

He urged the government to take into account property tax reductions for disaster victims and income tax deductions for local employees.

Korakot Tetiranon, chairman of the chambers of commerce in Surat Thani, Chumphon, Nakhon Si Thammarat, Phatthalung and Songkhla, called for reduction measures for small-and-medium-sized companies.

The state needs to act as soon as possible as more heavy rain is forecast to collapse on these counties over the next few days.

According to the Department of Disaster Prevention and Mitigation, 664, 173 communities in 87 districts in 10 southern provinces were impacted by the floods, which left 31 people dead between November 22 and December 8?

Although the condition is usually improving, there are still reports of flooding in six regions in Nakhon Si Thammarat, three in Songkhla, and two towns in Pattani. According to the office, rescue personnel and tools like water pumps and removal vehicles are still in use.

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