Politics

The Political Agenda Behind Credit Reporting Agencies

In this generation, we are living within a digital financial framework. Identities of Americans exist in set databases made to monitor details about them and used mainly to run commerce. This power destroys anonymity which takes even the slightest info about our social bonds and reputations then converts them straight into structured data. This very same structure can tag you with bad credit and ruins your chances for further finances not if you consider other specialized lending institutions. Check out https://www.forafinancial.com/blog/working-capital/get-business-loan-bad-credit/ to help you get your finances straight.

Driving all this are the credit reporting agencies (credit bureaus), like Equifax. The credit reporting business acts like a governor of each and everyone’s credit interactions, reputations as well as individuality. It had been recognized by the congress in the late 60s to early 70s that the power inlayed in data involves political matter and thus developed a regulatory command for these agencies. However, through the years, the regulatory program vested upon these agencies is insufficient. The government bodies such as the Federal Trade Commission (FTC) and also the Consumer Financial Protection Bureau (CFPB) are generally poor. Therefore the credit-reporting program on which we have vested our identities as well as our commercial existence continues to be opaque and also susceptible to misuse.

Credit Reporting Background

Credit Bureau Prior To The 70’s

Like organized business relationships, prejudice and biases have been integrated into the rules of the Credit Bureau and the types of facts they collect. Before 1970, Black, gay, single women, or a person with a strong political opinion – all of these could make an impact on the person making it difficult to find jobs, get credit, loans, insurance purchases, or stay away from police investigations. In WWII, credit reporting agencies conducted loyalty checks on the military to keep the business. This relationship continued even after the war. Millions of Americans undergo background checks for many reasons but mostly political in nature.

Credit had been always associated with social norms. In the 19th century, black and white tenants were exposed to undesirable interest rates and also credit terms to undermine their freedom. In the 1950s, a fixed-rate mortgage for 30 years was a liberation force for white families and the strict credit circumstances for black families were a way of controlling races.

Since the 1950s, politicians have received grievances from people who have severely suffered due to bad credit reports. And while many ordinary citizens suffered by mere noise from their apartments, that would enter their credit report and will eventually destroy the reputation of one person. As suggested by the CEO of Retail Credit in 1968, this is a “discipline” for US citizens.

The Age of Computerization

The changes that took place in the 1970s were mainly computerization of identity and money. Americans have seen the verge of computerization than the prediction of data problems. In the 1960s, there were many books on databases of American society as well as congressional hearings on this matter. In 1974, Congress included the Federal Act’s authority to manage all databases in the Privacy Act, however, it was withdrawn immediately as an act for a favor to a Republican staff who helped the conference committee discussion.

This birth and the expansion of the credit card business clearly required a means to confirm identities quickly. It required a computer system, which meant the credit reporting agencies along with their lengthy files of claims from nosy people which will soon prove useless.

The Introduction of Fair Credit Reporting Act (1970)

Then came the FCRA or the Fair Credit Reporting Act of 1970 (and soon after the law to regulate debt collection practices). The FCRA had been the very first federal law to regulate data use and is part of a legislative initiative motivated through the civil rights movement. This essentially views credit report as a public tool that had been given a new set of rules. This includes the principle of anti-discrimination and the rules by which people share information and data.

The FCRA is not perfect, but the transition from social relations to structured data has brought significant changes to the politics of credit share. The FCRA was written by liberals trying to stop discrimination in the business community. While it did not totally remove it, it had a major impact on preventing the apparent racism and gender discrimination realized by credit channels.

There is now a dynamic domestic and international credit market. We do not take into account the cost of goods and services traveling abroad or using a credit card. Manage your pipeline tasks for all payments and identities. Discrimination is absolutely not permitted, and debt collection is somewhat regulated.

Discipliine in Credit and Commerce

The foundation of credit and business is discipline. When you borrow money, you owe something to the creditor. You can’t have a business community unless you’re sure who’s accumulating debt. If you do not recognize your identity and account, you can not deposit salaries into people’s accounts. Banks, workers, and merchants cannot just trade cash. Whenever you use a card to pay for anything in a store, whenever you place an order online, rules are made that make your business life less difficult.

The terrible thing about the old credit bureau is that it doesn’t track people, but the rules had been constant with the sensitivity of racism and gender discrimination that we abandoned. This is not the collection of data, but the use of data to empower people to manipulate people in a way that we think we hate.

Politics

Trump Unleashes a New 10% Tariff Threat vs China after Latest Trade War Talks Ended Last July 30, 2019

Trump’s latest announcement of imposing a 10% tariff on the remaining $320 billion worth of Chinese goods entering the U.S., clearly denotes that the most recent U.S.-China did not end well. Although Trump had previously described the ongoing talks as “constructive”, his newest tariff announcement, is an indication that nothing constructive was agreed upon by both sides.

Effectivity date of the new tariff is on September 01, 2019, which means it could still be averted if China makes good on its previous commitment. According to a White House announcement, trade negotiations will resume in Washington by early September.

Trump Asserts China is to Blame Why Recent Negotiations Failed

According to Trump, China failed to honor its previous commitment of increasing its purchase of agricultural products as a show of goodwill. In return, the U.S. government eased sanctions imposed on controversial Chinese telecoms giant Huawei Technologies Co Ltd.

Yet according to Chinese state media Xinhua, the government of China declared that millions of tons of soybean shipments from the U.S. arrived in China since July 19, 2019; whilst numerous Chinese companies have placed new orders for U.S. cotton, soybean, sorghum and pork.

Trump vows to increase the 10% tariff to 25% if after the September resumption, China will not budge from its present negotiation demands that include stripping of the existing duties that were imposed during the ongoing trade war.

To date, the U.S. imposes tariff rates of 25% exclusively on $250 billion worth of Chinese imported goods. On the other hand, China applies exclusive 25% tariffs on U.S. imported goods valued at $110 billion. If Trump will not find future negotiations favorable, the 10% tariff on the $320 billion worth of Chinese importation will be raised to 25%.

Prior to the closing of the 2-day trade talks in Shanghai, Hua Chunying, the spokeswoman for the Chinese Foreign Ministry said that it was clear that the United States continued to “flip flop” on the negotiations, although she added that she was not aware of the latest developments that transpired during the ongoing talks.