Legal

What Happens if the US Defaults: Life After Reaching the Debt Ceiling

Well, it will be a global catastrophe, impacting not only the United States but also countries like Canada, Australia, China, and many others. Whoever is not destroyed by the explosion, will be maimed by the shockwave.

The US economy is on the verge of reaching its debt ceiling since the US government finance policy relies heavily on loans and debt securities such as treasury bonds when it comes to fulfilling government obligations, including payment of tax refunds, military salaries, running social and health insurance programs, and interest payments on existing debt.

Accordingly, not only world leaders, but also traders and ordinary people are concerned about the current news background. Politicians watch each other closely to anticipate what may happen, traders keep an eye on the economic calendar to avoid losses, and everyday people worry about safeguarding their savings.

The US national debt hit its maximum possible level of $31.4 trillion at the beginning of this year. The US Treasury warned that the government could lose the ability to meet its debt obligations by June.

The Republican-led US House of Representatives has proposed raising the national debt limit by $1.5 trillion in exchange for $4.8 trillion budget cut. That should be enough to prevent the Default for another year, until around the end of March 2024.

At the same time, President Biden is calling on Congress to raise the limit without any conditions, emphasizing that preventing a default is a direct responsibility of Congress.

According to the White House itself, a protracted default will lead to far-reaching repercussions for the US economy. The number of jobs could be reduced by 8.3 million, while GDP will decrease by 6.1% on an annualized basis.

Unemployment will increase by 5%, the analysis says. There are opinions that the application by the US President of this amendment to the US Constitution, which allows increasing borrowing without the approval of Congress, could trigger a “constitutional crisis”. But this is parried by the fact that all the same, the state debt limit and budget spending are separate issues and cannot be directly connected.

Thus, the US public debt limit reached $31.4 trillion in January. Treasury Secretary Janet Yellen warned that the government may run out of funds by June 1.

A negative scenario is definitely undesirable. A technical default, or rather, a budget deficit, would not bring the US economy down, given its status as the largest economy in the world, but it would entail a halt in government institutions’ operations due to a lack of funds to pay employee salaries.

As for the default on government bonds, this situation might lead to a credit rating downgrade and an outflow of investor funds, causing an increase in rates on them and higher costs to service public debt. Investors are already anticipating these outcomes, leading to a shift in many bonds.

A similar situation occurred in 2011 during conflicts between Democrats and Republicans. Then the US rating was downgraded by one notch. Once the debt ceiling was raised, ratings and markets returned to normal. However, the reasons leading to default will remain, and the US will continue to make new debts to pay off the old ones.

Investors should now tighten up because the clouds are gathering. Until the announcement of the results on changing the upper limit, it is better to avoid trading US government bonds, as well as banks’, insurance and commodity companies’ stocks. Gold, known for its ability to preserve capital during turbulent times, can serve as a safe haven. Oil and other metals are best avoided.

The likelihood of avoiding a default on US government obligations is highly probable. Running a country is not entrusted to the incompetent. Hopefully…

Despite fierce debates and frightening statements made by American politicians and officials, the procedure of raising the national debt ceiling is not something new to the US. Since 1962, the ceiling has been raised 83 times.

In the worst-case scenario, the issue of the national debt ceiling could potentially be resolved using drastic measures. President Biden has the authority to declare the debt ceiling unconstitutional, and the US Treasury can simply issue money.

In anticipation of the decision on increasing the public debt, volatility will increase. Now the market seems to ignore the difficulties associated with the public debt increasing.

The US dollar index, as a natural indicator of the state of the economy, unfortunately, or maybe fortunately, is subject to absolutely the same technical principles of movement as other assets. It is worth noting that futures contracts are also traded on the US dollar index.

The index is currently at a significant level that has been both support and resistance on multiple occasions, and it is currently acting as support again.

This is a range from 100 to about 104, as evident on the weekly chart. And until this range is broken, there is absolutely no point in looking for support below that level.

Usually, if strong levels break through, it leads to a significant shift without much effect that from all the following levels until the price stops for other reasons.

And as soon as it halts, it may twitch up and down for some time, until supply and demand reach a certain equilibrium. If a default were to occur, it is highly likely that the index would drop well below 100.

From a resistance perspective, there are a couple of notable levels that could pose challenges for the US dollar’s recovery. These levels are situated around 105-107 and 112-115, representing previous local highs where selling pressure has been significant.

Right now the price has been moving sideways since March of this year, lacking any sharp breakouts. It leads to the conclusion that an accumulation pattern is formed, with key levels defined by the upper edges, middle, and lower boundaries.

Significant forecasts for a probable movement should not be made yet. It is better to exercise patience and wait for clearer signals before making trading decisions. Just like in fishing, it is important to keep an eye on the float and wait for the fish to bite.

Legal

Thai Court Amends Law to Allows Wives to Sue Husband’s Lovers

Thailand's Constitutional Court Allows Wives to Sue Husband's Lovers

Angry Thai Wife: File Image

Thailand’s Constitutional Court has changed the Civil Code will allow women to sue their husbands’ lovers, male or female. The Constitutional Court found on Tuesday that Section 1523 of the Civil Code breached Section 27 of the constitution, which safeguards Thais’ rights and liberties regardless of gender.

The court directed that the verdict be enforced within 360 days.

Section 1523 of the Civil Code states that husbands can sue their wives’ lovers, and wives can sue other women who publicly display an adulterous connection with their husband.

Keirov Kritteeranon, secretary-general of the Office of the Ombudsman, stated that the Ombudsman had previously urged the court to rule on the legality of Section 1523, which allowed wives to suit only female lovers.

Husbands can now sue their wives’ boyfriends regardless of gender, and there was no requirement for any public declaration of an adulterous connection, he claimed.

Once enforced, Tuesday’s Constitutional Court order, according to the Ombudsman, will correct this imbalance.

Thailand Amends Marriage Law

Meanwhile, Thailand is set to become the first Southeast Asian country to recognise same-sex marriage, after its marriage equality law was passed in the Upper House on Tuesday and is now on its approach to being promulgated before going into effect in the coming months.

LGBTQ+ advocates rejoiced as the Senate voted 130-4 to pass the bill on its final reading, with 18 abstentions. They hailed the development as a win in their long struggle for equal rights.

When the advocates who had gathered at parliament on Tuesday to witness the Senate’s final reading and vote on the measure heard the outcome, they burst out in cheers.

They next went to authorities House, where the authorities had planned a celebratory reception for them later in the day. They then went to the Bangkok Art and Culture Centre, where the party lasted until late at night.

Prime Minister Srettha Thavisin, who is on sick leave due to Covid-19, congratulated them via Zoom call from Government House.

The new law will allow any two people aged 18 or older to register their marriage and obtain the same advantages and rights as heterosexual couples. The bill refers to married couples as “two individuals” rather than “a man and a woman,” and changes their legal status from “husband and wife” to “spouses.”

LGBTQ+ people from any country can legally marry in Thailand. When the bill goes into force, foreign same-sex married partners will be eligible for a spousal visa.

The law will be sent to the government for approval before being presented to the monarch.

It will take effect within 120 days of its publication in the Royal Gazette, making Thailand the third Asian country to accept same-sex marriages after Nepal and Taiwan.

Senator Kamnoon Sidhisamarn, spokesman for the Senate’s special committee evaluating the proposed law, called it a victory for equal rights campaigners.

“There is no reason for the Upper House to disagree with the judgement made by the House of Representatives,” he told reporters. He was referring to the legislation’s passage in the Lower House prior to its submission to the Senate for approval.

The battle for same-sex marriage legislation began 23 years ago. Tunyawaj Kamolwongwat, a Move Forward Party list-MP, said that the law’s passage on Tuesday signified the beginning of a new chapter in Thai history.

Source: Bangkok Post

Court Upholds Israel’s Ban on News Agency Al Jazeera

Legal

Thailand’s Senate Passes Landmark Marriage Equity Bill Legalizing Gay Marriage

Thailand’s Senate has approved a long awaited marriage equality bill on Tuesday, making the country the third Asian country to accept same-sex couples. The Senate approved the law 130-4 with 18 abstentions.

The marriage equality bill will be sent the palace for royal clearance. The marriage equality law takes 120 days to take effect after Royal Gazette publication.

LGBTQ+ advocates welcomed the proposal a “monumental step forward” because Thailand would be the first Southeast Asian country to legalise marriage equality. Thailand is popular with travellers due to its LGBTQ+ culture and tolerance.

“This would underscore Thailand’s leadership in the region in promoting human rights and gender equality,” the Civil Society Commission of marriage equality, activists, and LGBTI+ couples said.

Prime Minister Srettha Thavisin, who wore a rainbow shirt to commemorate Pride Month, joined thousands of LGBTQ+ revellers and activists in a Bangkok parade at the start of June.

The prime minister will open Government House to commemorate the bill’s passage. Pride supporters will march from Parliament to the prime minister’s office. Mr. Srettha, who has Covid-19, will join them online after taking several days off.

Deputy Prime Minister and Commerce Minister Phumtham Wechayachai anticipates June’s Pride Month to create approximately 4.5 billion baht in economic cash flow.

Marriage Equity Bill

Pride Month in Thailand

On Saturday, Mr. Phumtham said the government under Prime Minister Srettha Thavisin is encouraging sexual diversity and working with the commercial sector to plan more Pride Month festivities to attract LGBTQ+ tourists.

He claimed it will increase the country’s trade potential by giving SMEs business expansion chances and adding soft power value.

Mr. Phumtham claimed Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office, told him Pride Month celebrations will make Thailand a “pride-friendly destination” for LGBTQ+ Thai and global consumers.

This would help the country become a regional tourism hub under the government’s “Ignite Tourism Thailand” initiative to enhance tourism in 55 “worth visiting” provinces.

He added that such festivals will support downstream industries like event planners, food and beverage companies, hotels, and transport services and disperse cash to local areas. Mr. Phumtham stated Thailand’s Pride Month began in 1999. Bangkok, Chiang Mai, Phuket, and Chon Buri host parades, festivities, and campaigns.

The Tourism Authority of Thailand (TAT) expects approximately 860,000 people to attend this year’s festival and contribute at least 4.5 billion baht for the economy. LGBT Capital estimates that the world’s LGBTQ+ population has US$4.7 trillion in purchasing power and Thailand’s sexually varied population has US$26 billion.

LGBTQ+ rights in Thailand are improving, but there’s still much to do. The LGBTQ+ community in Thailand is notably strong in Bangkok and Pattaya.

Strong legal recognition allows transgender people to change their names and titles. Many LGBTQ+ couples lack legal rights since same-sex marriage is banned.

Marriage Equity Bill

LGBTQ+ rights in Thailand

Thailand is becoming more accepting despite these difficulties. LGBTQ+ rights are gaining favour. Activists want legal changes to guarantee equality.

Pride parades are becoming increasingly visible, demonstrating diverse acceptance. While challenges remain, LGBTQ+ rights in Thailand are improving as awareness and acceptance expand.

Legal

Protecting Your Designs: Intellectual Property Rights in the Jewelry Manufacturing Industry

Intellectual Property jewellery

The jewelry manufacturing industry is a vibrant and highly competitive sector where creativity and innovation are paramount. Designers invest significant time, effort, and resources into crafting unique pieces that appeal to consumers’ tastes and preferences. However, this industry faces a persistent challenge: the protection of original designs from imitation and unauthorized use.

Intellectual property rights (IPR) play a crucial role in safeguarding jewellery designs, ensuring that creators receive recognition and financial benefits from their work. This article delves into the various forms of intellectual property rights pertinent to the jewelry manufacturing industry and offers insights on how designers can protect their creations.

Understanding Intellectual Property Rights

Intellectual property rights are legal mechanisms that grant creators exclusive rights to their inventions, designs, and artistic works. These rights encourage innovation by providing creators with the means to control the use of their creations and to benefit financially from them. In the context of jewelry design, the most relevant forms of IPR are copyrights, trademarks, patents, and design rights.

Copyrights

Copyright protection extends to original works of authorship, including artistic creations such as jewelry designs. Under copyright law, the designer of a piece of jewelry automatically acquires the exclusive right to reproduce, distribute, and display the design upon its creation. This protection does not require registration, although registering the copyright with the appropriate governmental body, such as the U.S. Copyright Office, can provide additional legal benefits and evidence of ownership.

For jewelry designers, copyright protects the aesthetic aspects of a piece, such as the specific design, patterns, and artistic expressions. However, it does not cover the functional elements or the materials used. The duration of copyright protection varies by country, but it typically lasts for the life of the creator plus an additional 50 to 70 years.

Trademarks

Trademarks protect symbols, names, logos, and slogans that distinguish goods and services in the marketplace. For jewelry manufacturers, a trademark can cover the brand name, logo, or even a unique product line name.

Registering a trademark with the appropriate authority, such as the United States Patent and Trademark Office (USPTO), provides nationwide protection and the exclusive right to use the mark in connection with the specified goods or services.

A strong trademark helps consumers identify and differentiate a brand’s products from those of competitors, fostering brand loyalty and reducing the risk of confusion in the marketplace. It also provides legal recourse against counterfeiting and unauthorised use of the brand’s identity.

Patents

Patents protect new inventions and technical innovations. In the jewelry industry, this could include innovative manufacturing processes, unique mechanisms for adjustable or interchangeable jewelry, or novel materials and techniques. A patent grants the inventor the exclusive right to use, make, and sell the invention for a limited period, usually 20 years from the filing date of the patent application.

Obtaining a patent involves a rigorous process of proving that the invention is novel, non-obvious, and useful. For jewelry designers, the primary benefit of patent protection lies in safeguarding their innovative techniques and mechanical features, which can provide a competitive edge in the market.

Design Rights

Design rights specifically protect the visual appearance of a product, including its shape, configuration, pattern, and ornamentation. These rights are particularly relevant to the jewelry industry, where the aesthetic appeal of a product is a key selling point. In many jurisdictions, design rights must be registered to be enforceable, though some countries offer unregistered design rights that provide limited protection.

Registering a design right involves submitting detailed representations of the design to the relevant authority, such as the European Union Intellectual Property Office (EUIPO) for protection within the EU. Registered design rights typically offer protection for up to 25 years, subject to renewal fees.

Steps to Protect Jewelry Designs

Document Your Designs: Maintain detailed records of your design process, including sketches, prototypes, and finished pieces. This documentation can serve as evidence of originality and ownership in case of disputes.
Conduct Searches: Before launching a new design, conduct thorough searches to ensure it does not infringe on existing intellectual property. This can prevent legal issues and costly disputes.
Register Your IP: Where applicable, register your copyrights, trademarks, patents, and design rights with the appropriate authorities. Registration enhances protection and provides legal advantages in enforcing your rights.
Use NDAs and Contracts: When working with manufacturers, suppliers, and collaborators, use non-disclosure agreements (NDAs) and detailed contracts to protect your designs and outline the terms of use. ( Check out EJ: A Jewelry Manufacturer with NDA’s.
Monitor the Market: Regularly monitor the market for potential infringements. This can involve online searches, attending trade shows, and staying informed about competitors’ activities.
Take Legal Action if Necessary: If you discover an infringement, take prompt legal action to enforce your rights. This may involve sending cease-and-desist letters, pursuing litigation, or seeking alternative dispute resolution methods.

Challenges and Considerations

While intellectual property rights offer significant protection, there are challenges and limitations to consider. The cost and complexity of obtaining and enforcing IPR can be prohibitive, especially for small designers and startups. Additionally, the global nature of the jewelry market means that protections obtained in one jurisdiction may not be recognized elsewhere, necessitating international strategies for comprehensive protection.

Moreover, the fast-paced nature of fashion and jewelry trends can make lengthy registration processes impractical for certain designs. In such cases, relying on unregistered design rights or focusing on brand protection through trademarks may be more viable strategies.

Conclusion

Intellectual property rights are a vital tool for protecting the creativity and innovation that drive the jewelry manufacturing industry. By understanding and strategically utilizing copyrights, trademarks, patents, and design rights, designers can safeguard their creations, enhance their competitive edge, and ensure they reap the financial rewards of their ingenuity. As the industry continues to evolve, staying informed about IPR and adapting to emerging challenges will be crucial for sustaining success in the dynamic world of jewelry design.