Thanks very much. I'm just turning on my camera here. Basani has been having issues joining us. She is now phoning me, which unfortunately is not gonna work. So she's been having tech issues. So my name's Gillard Isaacs. I work at the Institute for Economic Justice, a policy think tank in South Africa. I see that Basani is now online, which is fantastic. And we've been doing work on COVID-19 since the outset. For the audience, I've been thinking how to frame what I'm going to say. And what I really would like to try and contextualize is the utter failure of the South African state to respond adequately to the COVID-19 crisis. In particular, economically speaking now, despite a proactive public health intervention at the outset, the economic response has been completely inadequate. And I'm going to contextualize that within two ideas. The first is on South Africa neoliberalism and how that has played out. There has always been in South Africa, as is true elsewhere, attention between more progressive or interventionist policies and market-centric policies. In South Africa, this is shaped by the internal contradictions within the ruling ANC and their engagement with business and a business elite. And the boundaries of this neoliberal orthodoxy is in particular policed by the national treasury and South African reserve bank. And whilst COVID-19 has disrupted and weakened some of these, it has not displaced them. At the same time, that is combined with severe inadequacies in state capacity. And this is not simply arbitrary. There is of course within neoliberalism a selective incapacity within states. And so that's really frames what I think explains the policy that we've seen unfold. I'm going to switch between sharing a screen and not. I am showing a graph now, which I am going to assume that everyone can see unless I get interrupted by the chairperson. So what we note here is the COVID cases. And we see this initial spike. And that first spike is mainly due to wealthier tourists and business persons coming back from abroad and from Europe in particular. And a very hard lockdown, one of the most severe lockdowns globally is then instituted. And that lasts for different guises about a six week period as shown here. And that accounts for the significant dip in infections. And of course the idea of that lockdown pair, originally three weeks and then two weeks is to prepare the public health response. What we've seen subsequently is a gradual opening up of economic and social activity through a staged process of moving from a level five lockdown to level four to level three to what's now called advanced level three, which is basically just level two. And we've seen this steady rise in infections. And this shows South Africa in relation to a range of other countries. The trend and similarity with India is particularly disturbing at the moment. And when I gave a presentation on an Ideas webinar, Jayat T. Ghosh noted the similarities, both in infection and in policy. So that's what the trajectory of the virus looks like here. What does that mean economically speaking? Well, the estimated fall in GDP ranges anywhere from around minus six to up to minus 17. So we're looking at a very significant fall of which a contraction of about 10% is extremely plausible. We're looking at job losses in excess of a million workers in a country with an expanded unemployment rate of almost 40% that's a severe crisis. So initially the South African response was extremely weak. What I'm showing now is an illustration of spending as a share of GDP as of the start of April, which is when our lockdown had started. And South Africa is a tiny share of that expenditure at like 0.1% compared to a G20 average, which is a hundred times larger than that. After much advocacy and contestation, the president announced on the 21st of April a 500 billion rand stimulus package, which if you divide by 20 is roughly the number of pounds, which my brain is not quite doing at the moment. And this was heralded as a significant step forward. If we look what this means in practice is this would increase South Africa's expenditure as a share of GDP and place it amongst, in some ways, international norms. The spending was divided up into various elements, health, municipal support for water, sanitation, increased in social grants, which is our form of social security. This job advancement program with the details of which remain completely obscure, wage guarantees to help pay workers wages as exist in the UK, and then various loan guarantees and tax deferrals. Now I want to point to two issues with this, which I think are illustrative of what I was referring to. The first is that these measures even before the second incident which I'll refer to had been extremely poorly implemented. The rollout of a new social grant to benefit anyway between eight and 13 million people within six weeks had 10 people who had been paid out. The increase to our existing child support grant was lower than initially expected. The type of wage support has at best reached under a third of the workforce with 60% of the allocated funds spent. The health spending was failing to materialize with an absence of PPE across public healthcare facilities. So a real significant inability to roll out this package. The second element which I'll point to is that on Wednesday we had the tabling of our adjusted budget is essentially a budget framework meant to give extra to this rescue package. And what we actually saw and this is led by our national treasury, apologize for this dense slide, our fact sheet on this is still in the works. But essentially this 500 billion has been whittled down to a net increase of 36 billion. This is because some of it's failed to materialize. A large portion of it has actually been reallocated existing expenditure and such substantial portion is in loan guarantees, which is not new expenditure. In addition to the fact that only 36 billion is new expenditure, the budget actually plans to implement significant budget cuts over the three year medium term expenditure framework. So essentially we're seeing in the midst of a crisis the acceleration of austerity. This includes elements even like the health like response in which we only see about three billion in new expenditure. So that's an example of the type of responses which we've seen.  We've tried to look at this package and assess it based on international best practice, which is that it should be early large target households be simple to administer insure survival and then target particular sectors within the economy. And most aspects largely fail on all of those scores. On the monetary policy side, we once again have seen the adherence to the existing orthodoxies. We have seen a interest rate cuts significant but not startling. We have seen some bond buying in the secondary markets, but not expensive quantitative easing program. There's been no serious conversation of instituting capital controls, of requiring the prescribed landings from pension funds, no developmental landings within our developmental finance institutions and a range of other weak responses. So whilst we have had a extremely strict lockdown, we've had one of the world's weakest economic responses. And so whilst COVID-19 does offer an opportunity to try and disrupt the economic orthodoxies present, thus far those traditional centers of power have managed to exercise influence over economic policy in South Africa. I'm gonna leave it there. Thanks very much. Thank you so much Gillard for your contribution. That was really interesting to follow through. We will now hand over to Bassani Maloi to actually talk about the informal sector. And then after that, we will have questions from the audience. Feel free if you already have questions or Gillard subtopic, feel free to already post them in the chat. Thank you. Hi, I think we're trying to get through to Bassani. Bassani, can you hear us? Bassani, it does show you as unmuted and your microphone as active. I don't know if you can turn on your camera at the bottom of the main screen. Hi everyone. Bassani, you have to turn the sound off on your computer. Okay, so I have Bassani who wants to try, apologies everyone, she wants to try and speak through my phone on my microphone. Bassani, you have to mute me now or else there's feedback. Hello? Yes, that's better. Let's see if this works. I can hear you, but if you can hear me, that's a problem because you need to mute your computer. I'll still be feedback. In terms of sharing screen, I've sent you a photograph. If you can hear me, have a look on the bottom right, there's a purple arrow. And if you click on that purple arrow and then there's the third icon is share content. And then the second option is share application screen. We can't hear you now. So your microphone needs to be, I think we're losing, your microphone needs to be on, but your speaker off. Okay, I am sharing it Bassani. Is it possible? Okay, we have the slides. Perhaps I could make a suggestion, which is that we take any sort of conversation around what I may have put forward. And in the meantime, Bassani tries to sort out the connection. Okay, so I see there's some comments in the chat. Is Sibolele with us? Yes, hi. I'm just turning on my microphone. Hi. Hello. Sorry. Hi. I think that's a good suggestion, Gillard. So I think one of the questions from the audience is what is the trajectory for the COVID cases and what potential impact will that have on the GDP? So I think from the South African point of view, the peak will probably be around August, September. So if the cases continue to peak, what is your sort of estimated impact on the GDP? Okay, thanks. Yeah, so you're absolutely right that the expected peak is now been brought forward to like around August. The estimations of impact on GDP, I mean, as with other countries, there's a lot of guesswork which goes on here. We've done our own input output modeling with for the ILO and I would say sort of, and then there's all sorts of other private sector modeling from various banks and research agencies and so on, as well as the official IMF modeling. I would say that an estimate of about 10% of GDP is a safe estimate. The sort of estimates range between minus five and minus 15. So we're talking about a really significant hit. And of course we're talking about this hit in the context of a economy which was already in recession and of course has some of the world's highest levels of inequality and then significant unemployment and poverty. I see there's a question here also on the public reception and that the public service that Lucy had has problems and how are the institutions delivering these? So I mean, what was interesting was that there was widespread frustration prior to the April 21st announcement of the rescue package. We coordinated the signing of an open letter to the president which about 300 economists signed on and so there was economists from across the spectrum, business persons, unionists, civil society, all saying relatively similar things which we had seen elsewhere, which was support wages, increased social security, have business support measures, increase health spending and so on. And it took obviously, it took three weeks before anything was announced and five weeks before anything was implemented and the announcement was generally greeted with positivity including by ourselves. That gradually faded with the failure to implement and that failure to implement has been both institutional weaknesses but it's also been around the design where they've placed the responsibilities, what type of funding has been allocated to institutional support. So the failure is not simply a, well, we don't have enough hands at laptops to institute the resources that are needed thus I would say it's that sort of interaction between the particular policy orientations and capacity issues. Thank you for that. Let's see if Bassani has actually managed to turn on her microphone. Hi, Bassani, is the audio better? Hello. I think her video is working but not the audio for now. So maybe we can ask maybe one last question to Gillette and see offline how we can actually best support both. We have another question from Mary. So do you, from your opinion, from your research, Gillette, are there any industries that are worse off than others given the current lockdown? Yeah, I mean, I think, Mary, the response is probably somewhat similar to elsewhere in the world. And what's really interesting, in a perverse kind of way about COVID-19 is that whereas in many recessionary and crises environment, the service sectors are ones which remain quite active. We saw this after the 2007 AIDS crisis in retail, in food and so on. So, but obviously in COVID, those sectors are significantly hard hit because they are high contact sectors and therefore are because of the lockdown imposed. So we've seen similar trends. The type of real-time data available is less in South Africa than in the US. So we don't have unemployment claim figures per industry and so on just yet. But what we're going to see is the spread and the spikes in other relatively close contact sectors also. So we'll see them in mining. There's been a few spikes already due to the proximity and conditions within which workers operate and then like elsewhere in healthcare and other frontline services. So, yeah, I would say that gives a picture of where some of the sort of worst hit sectors are. The last thing I would say is again, similar to some other countries, the business size is also an influencing factor despite the fact that a number of support measures are targeted allegedly at small and medium enterprises. Many of them are the type of measures which are difficult for small and medium enterprises to actually access. So for instance, accessing the various tax relief measures require fairly cumbersome accounting and form filling out and so on, which of course large firms have their fleets of accountants available. The wage support mechanisms also are overly complicated. So we'll see a, so there's a significant sort of hit to small and medium enterprises also. I mean, I think your point skillet are very valid. So as a suggestion, I guess in terms of the long term, what would you say is needed, what action is needed by the South African government to mitigate these time lags between the policy proposal and the implementation. So what we're understanding is that it seems that there's some institutional blockers that actually hinder these policies from being implemented in the media group. Yeah, that's absolutely right. Just before answering that, I just wanted to add to my previous comment and it's a shame that like Bassani's had the issues which she has, because Bassani's focus was going to be on the informal sector of which she knows more than I do. But it's another sector, which has been particularly hard hit both by the natural playing out of how the virus operates, but also through policy measures where there was a favoring, for example, of formal sector supermarkets over informal food suppliers and a general kind of dismissal of the importance of the informal sector in South Africa. And probably the hardest hit workers were informal sector workers because formal sector workers have the ability to continue to earn money despite lockdown and also the sorry, all the messages are distracting me. And informal workers are insufficiently covered through our employment insurance and other measures like that. In terms of the kind of way forward, you know, I think that the crisis again, like elsewhere offers a very important integration between short and medium and long-term measures which are needed. What do we of course need in South Africa is a transformation of the structure of the economy. Structural transformation is insufficiently advanced in South Africa. We suffer from both headline statistics of higher unemployment poverty, et cetera, but also a crisis in all care economies related social crises like gender-based violence and a range of social ills which stem from a dysfunctional economy. And what we've argued is that what we need to do is see the rescue package elements as being in stepping stones and indicative of what longer transformations might be able to look like. And so for example, the expansion of social grants through the supposed new special COVID-19 grant which has so far largely been a failure has the potential to lay a foundation for a basic income grant and for the further expansion of our social security sector. The expansionary, if we were to succeed in expansionary fiscal and monetary policy, this could lay a foundation for the form of fiscal stimulus which South Africa needs. And then we, so we need to start in some ways with these immediate measures, but they need to be framed in a way which also opens up opportunities. In the medium to long-term, and a number of groups and individuals, including ourselves, are advancing the notion of a just recovery, one which places human and environmental sustainability at the heart of what the economy should be about moving forward, right? And that means the expansion of the public sector, a renewal of the commons, a move to renewable energy, a dressing of our care economies and restructuring of the sort of productive structure of the South African economy amongst other elements. And of course that's a sort of wholesale kind of overall, but we've got to try and leverage this moment to try and tie it to those transformative policies. Subbu, I see the other question, yeah. Yes, we have some other questions. I just wanted to check quickly if Bassani is able to join us or we'll just keep moving on to other questions. Hello, it seems like I think she's still having some technical difficulties. I also can't get through to her right now. So we have another question about capital controls. So do you know why there hasn't been so much of a big push actually use capital controls during the COVID crisis? Yeah, I mean, thanks Sarah for that question. I think there's a few different dimensions here. The first is just an ideological inertia. South African economic policy tends to be five, 10 years behind everywhere else. We were instituting the Washington consensus in the mid 1990s when it was really being critiqued elsewhere, right? And the type of resistance to unconventional economic policies is extremely entrenched in particular within the two entities responsible for such management the National Treasury and the Reserve Bank in the wake of the global financial crisis in 2008. I have a sample of 16 comparative emerging markets. South Africa was one of only two countries to further liberalize financial markets rather than institute controls. So this is a longstanding issue. At the same time, there is I think I think that South Africa's integration into global financial markets needs to be altered and renegotiated. The type of capital controls and capital management techniques given the fact that South Africa is a small open economy which unfortunately is reliant on capital inflows at the moment to balance its current account does mean that the implementation of those would need to be done in a sequenced way and in a way which sort of made sense in context. What the Reserve Bank and National Treasury do is simply say no, we're not doing that. What some advocates of capital control seem to imply is that you could just have this wholesale sort of closing, which I also don't think is the solution. And that I'm not sure we've successfully advanced what those controls would look like and how they would be implemented. Great, and we have a, I don't know if Eileen's question is complete, but I don't know if this really can also tie in with the current economic transformation, the topic of land redistribution into Africa. I know it's going a little bit off topic, but what is the place for that in the mid to long-term economic time in South Africa? Yeah, I think, and unfortunately, I think Eileen just left us, but I think it's, you know, the land question is really multifaceted and it ties into a number of issues. So firstly, there's the difference between talking about rural or farming or semi-rural land and urban land, right? And both require significant reform and both actually link both to the causes, consequences and warnings which COVID-19 offer. So for instance, anyone who has visited South Africa and lands at an airport will see that you then drive to the city centres and on either side of you are large informal settlements, particularly in Cape Town on that route, but pretty much everywhere, and that the apartheid spatial geographies have displaced the people both in terms of where they are and in terms of how they live, right? And that's not unrelated to what we've seen in COVID-19. It's not unrelated in the sense that you can't physically distance if one lives in a shack. It's not unrelated in the sense that if you are on in a public taxi for an hour and a half to and from work every day, that exposes you to significant risk. So the COVID crisis illustrates the fragilities within that. It illustrates the fragilities within our rural land and farming land division areas also, for instance on issues of food security and informal food trading. And so COVID-19, the question of land and the geographies in South Africa is certainly revealed within COVID-19. But the fragilities are really important because COVID-19 is a precursor for the type of crisis we might face with climate change. And these elements will once again become really, really pertinent. And the distribution of land where people live, how they move in what physical infrastructure definitely have an influence in vulnerability with in-climate crisis. So absolutely we need to think holistically about what it means to recover from this. The last thing I'll say, because I know I am going on a lot, but I think it's a useful way of thinking about this elsewhere, is we're soon to put out a brief which argues that you should understand comorbidities of COVID, not only in a physical health sense that there is diabetes or you have a lung problem, but that there are social comorbidities that if you live in a shack, if you use transport of that kind and so on, it exposes you to far more risks then if you have the kind of lifestyle which I am privileged to. And so we need to consider recovery and reform of our economies with a holistic notion of what risks are. Thank you so much for that, Dylan. So I don't think we're able to reach Pasani. So what we might do is have her recorded talk and then we just upload it as well with the recording of today's session. So I'll just, if anyone in the audience actually has a question for Dylan before we end of the session, since no questions are coming through. So I think I have a question coming from you for you, Dylan. I think you talked a lot about some people, some sectors that are more at risk. Do you have maybe at the Institute for Economic Justice, because this is also a question I've just been receiving from colleagues internationally, do you have any indication what the pandemic has had on gender inequalities, especially gender-based violence? I know it's currently a big topic right now in South Africa. People are also listening. However, I think there hasn't been such a big connection in terms of how it is actually putting more pressure or more risk to people who are already vulnerable in this regard. So maybe you can talk a little bit more about that. No, thanks. And I think that's really important. I mean, I've alluded to the crises of care and in gender-based violence, but I welcome the chance to sort of profile it as an issue. I think there's a few elements here. The first is that COVID and one of our researchers, Sonja Falatze, wrote an op-ed about this, which I would encourage everyone to read, that COVID highlights the various crises of care faced in the South African economy. So South Africa not only has there been just a soldering of care work by women, but there's been an ability of wealthier households to transfer that onto poor black women in particular. And so what we have seen is that the... So in two ways, the domestic work sector itself has been hard hit economically, but importantly, the crisis has exacerbated the care responsibilities which women predominantly face, whether that is like elsewhere, whether it is in childcare, with schools closed, but a really insufficient socialization of care responsibility so that the state carries far too little of those responsibilities. So whether that's in childcare, elderly care, food provision, water collection, and so on. At the same time, the collapse in social services, as we know, disproportionately impacts women. On the issue of gender-based violence, I think that both the physical nature of lockdowns places women at significant risk, but more broadly, the economic collapse of an economy potentially has a long-term danger in exacerbating this. Without making any excuses, what is gender-based violence in South Africa? It's predominantly lower-income men who in their own way have been exploited by the economic system or in their own way are just possessed of various things who are taking that out in a way whose own anger and violence and mental trauma is being acted out on women in our society. And that's absolutely reprehensible. But what it points to is the fact that if our economy and our society unravels further, and if men experience further violence by the economic system, then the violence which is perpetrated on women will only increase. And so it's of extreme concern that we both need to change our individual behaviors as men, but we also need to change the system within we live and operate. Thank you for that answer. That's also very useful too in terms of just profiling the specific problem that we have in South Africa. I think we've reached the time now for our webinar and from us it's so as I would like to say thank you very much for a very insightful and engaging talk. We'll be able to post the recording on Facebook and Twitter and hopefully we can also get a recording from Basani Deloy. And also everyone else, thank you so much for joining our webinar series. We have our very last one unfortunately, happening on the 7th of July. So we hope to see some of you guys there. Thank you very much. Excellent. Thanks for inviting me. Thank you.


The Fopsherana USO had a special visitor that only travels a couple of days out of the year. Santa Claus took the time to visit troops during a Christmas party sponsored by the USO and the Fopsherana Education Center. Christmas is an especially difficult time for deployed military families and DJ Stainhope, the Fopsherana USO center manager, makes it her mission to spread the holiday cheer. I think it's been really exciting to have an event like this simply because we are seeing an uplift in spirits. We are seeing people get excited as you can see from what's going on over here. We have people throwing ring toss at each other and there's lots of raffle prizes and just the energy around having Santa Claus here sounds like a simple thing. Makes people feel like they're, you know, that they're not missing out entirely on what the holidays and the holiday spirit from home. The party was put together by an all-volunteer team of soldiers and civilians. Events like this may seem small to some, however they have a huge effect on the troops during the holidays. All the gifts that were raffled off were made possible through donations from people back home supporting the service members currently deployed.  Thank you.


Greetings everyone this is James P. Madonna of Megalife 21 and this happens to be Friday evening October 3rd 2014 at the Colonial Bar in Richfield, New Jersey and there's the address right in front of you and the name and lights yes okay here is uh the band is warming up with uh Jimmy Donovan in the white shirt on uh acoustic guitar uh this band is starring guitarist extraordinaire Sal Mummy Annie and they're warming up Sal Mummy Annie and the dirty old man there's Sal in the lower left hand corner getting everything straightened out with the equipment sound system the food being set up on sternum right here and one of the gentlemen working here is uh just said hi and there we have over there uh at the bread sandwiches plates plastic uh utensils right in the corner on the side of the bar and there's the sternum where the food will be right we're right outside in front of the Colonial Bar Richfield, New Jersey there's Sal Mummy Annie yeah they did last time during his uh Halloween bash they did the same thing I hope that was a yes I hope it's safe and well I'm sitting here that's how I knew it because as soon as I stepped out I went oh come back so you gotta have you gotta have my drunken head in there well any anybody could uh go nuts do whatever they want I'm only gonna laugh at it when I serve I'm a little guy dude and that's right here now I see you uh headshot you're in I see from here I don't know actually uh here we are Colonial Bar Richfield, New Jersey on Grand Ave everybody's getting plugged in getting warmed up for this event and uh hopefully the turnout will be pretty good and we'll have a very interesting uncensored uh ad-lib evening anything could happen which I'm hoping James P. Madonna of MegaLife 21 you know who I am already playing something actually it's the risk of boring people I'll probably cut it now so I think it's a loose connection, so I will let you check. What? What? What? Check. Check. Check. Check. Check. Check. Check. What are you doing? Oh shit..  Here we go, food is out, unbelievable salad with mozzarella balls, olives, tomatoes, Italian sausage, big hero sandwich, it's all out there, right outside in autumn, how about that, in front of the Colonial Bar, Richfield, New Jersey on Grand Avenue. This is Jimmy Donovan's Fall Bash 2014 and we're here with Salmone Annie and the dirty old men, they're gonna be that way till they're dead old men, like Red Fox said, turn this one way down, too loud for me, that was, that still is a little too loud for me, perfect, thank you. It's supposed to be a happy occasion, it is Jimmy Donovan's Fall Bash 2014, here at the Colonial Bar in Richfield, New Jersey, with Salmone Annie and his dirty old men, Bam. I will say one thing, you stick it right wing Republican, greedy bastards, new corporations, you're going down in 2014 and 2016, Pennsylvania Geeks. Very good, it's not good, it's coming out. What is this, that one? What? I think you hear me in angle with this one. You can just say that. Here, that one. Oh, that's it. Wee, wee, wee. Wee, wee. Wee, wee. Wee, wee. Wee. Wee. Wee. Wee. Wee. Wee. Wee. Wee. Check. There you go. On the other hand, there you go. You're kidding. Check. Why do you always say, hey, how are you doing? What happened, Derek? What happened, Derek? They say, what are you hanging in here? Pull out in there. I get you. Yeah, you can't. You got to lie and say, oh, I'm doing this. Very good. People don't want to hear that. No, they don't want to hear how you really are. When I ask, you're right here. Well, Cher said it on her favorite letter.  I like to hear how you really are and for everybody a lot. She's cool. She's having trouble walking. Yeah. The comic with the power. Yeah. Yeah. One, one, two, three. Eight, three, four, five. That's six. Is it on? $1,999,000. That's what you call warm your fingers up. Two. One, two, three. Two. All right. Place them like guitar sounds. Just live the rules. At least in my mom's home. I better be careful. George. This is one you're gonna sing along with. I don't know. Hoonie, hoonie, hoonie. That's what he had. Ha, ha, ha, ha. Oh, I don't know. Yeah, yeah. It's all over the place. My favorite part of the night. What? Whoa. What? Same one I did last time. Oh. You got a call for you. We said there's something down the road. I have no idea. Yeah, I know. Sorry. Sorry. What? What? I don't know. No. No. No. No. No. No. No. No. No. No. No. No. Take my wife please. Let's take my wife. Yeah. Yes, you gotta put and your Okay, you have just heard Sal Momiani and the Dirty Old Men with Special Guest Singer Jimmy Donovan. This is Jimmy Donovan's Fall Bash 2014. It is Friday evening, October 3rd, 2014, and it is getting chilly now, but it's not bad. The weather is not bad out here. It's an outside party. How's your friend, what's his name? Your mother's Sal, right? Yeah, I'm his mother. Nice to meet you. What's your friend's name? Dave. Hey, remember Dave? He doesn't run. Is there a corner? Yeah. Let me ask you a question. Oh, you want to ask a question on camera? Yeah. Alright. I'm on camera right now. You want to be on camera with me? I'll be with this question. He's got a question. No, I can't. You need it. I don't know. What's your friend's name? Jimmy D. Jimmy D. Jimmy D. Jimmy D. Sal is a big part of bad. It should be Sal and a dirty old man.  What do you think of the name Sal and Jimmy D. Or Jimmy D. Or Jimmy D. Or Jimmy D. Or Jimmy D. Or Jimmy D. Or Jimmy D. Or Jimmy D. Like, like, cement dirty.  Cinnamon. I only was in the... It's not cinnamon. I was only in the Navy for basic tests.  Jimmy D, right? It's called the John of It. Oh, that's his last batch. It's called John of It. Oh, that's his last batch. Okay, all bads, 2014. Yeah, at least I got the year one. So we did it, we did it, we did it. All right. Hi! Get in! Get in! Get in! Hello, hello. Yes, yes, I'll be there. Yes, I'll be there. I'll be there. I'll be there. I'll be there. I'll be there. Get in! Get in! I'll be there. 10 dollars. 1, 1, 1. Test, test, test, test. 1, 2. Hey, Joe! You guys are gonna have a long time to get here. You guys ready? J.D. and he's 60 guys up here. Oh my God, I didn't know that was on the phone. I've been in marijuana for hours. Hope there's no extra. Two JoJo's! You got two JoJo's! Two JoJo's! I've been a hard day tonight. Let's hear it for the ladies from the bar. Thank you ladies. I love my car. Any chances of you turning this thing down? Thank you, thank you, thank you. Well, we'll sign it to the bill. The bills are second to none.  Great job. I do want the things, but he... You told me your email. I mean, I remember that. Thank you. Guys on this? I'm not gonna sing a low one. Like, uh... Something... Anything that you don't... Train your voice. This is not worth it. You're not paid. Once you yell at them, they win. They win. They're like sharks in the water. Oh, you know what's going on? You can pass the class. We have the class and take it along. Or go to summer school or whatever. Why don't tell you all about it. You're taking over. It's not yours. It's somebody else's head. But if they turn around, they're wrong. They're going to be on YouTube. On YouTube? My head? My forehead. I don't think so. I only think tea. How do you know? I don't know. You know, when you move a lot of people around, you do what you're doing. You're changing your mind. You're changing your mind. You've got the ball twice. You've got the ball twice. This is for a blackboard special. The Gorilla Grill and your sampler is thrown by the train. Because that's an old trick. What are you doing in the sock drill? You take a sock and you put it in the water. It's a sock and you put it in the water. I have a dirty sock.  A laundry basket. And throw some sardines in the water. Or they go to open that up. Or a skunk cabin. Oh. Jimmy, my boy. No, my ring. Jimmy, my boy. Jimmy, come here. I want to say something. Come over here. Why are you so Absurd? Why are you so Absurd? Hurry up. Who? Who's that? Who? Who are you? Genie Volcart. We're these guys. She's like...


Industry is really not interested much in basic research because it's too risky, so industry and ICE in particular, they are interested in bridging information that comes from university to make money in a certain part of, you know, a certain product, for example. If I compare Japan with the most highly innovating countries, the G7, Japan is about at the end. If you look at the number of papers per yen, you can recognize that the funding system that is implemented in Japan is inefficient. So you have three major issues here. You have not enough money, you have inefficient funding, and the result is you have very low level of science production. Japan is also saying that the government, the Japanese economy, the economy, and the economy are important. Japan's companies are developing research. How much research is done in the open innovation, especially in university, and in the public research institution? It's about 1 billion yen. 0.7% only open innovation companies are not doing it. In Germany, the total number of employees is a little less than 14 employees, and the total number of employees is less than 10 employees. However, the total number of employees is 6% in open innovation. So, the ecosystem is working. How do we catch up with the OBE countries? There was a goal. The goal was to catch up with the companies. It was easy to do it at some point. But after 2000 years, the goal was gone. Originally, it was the order in which Japan had its own innovation, but it wasn't really angry. So, Japan felt that there was a need to do open innovation. However, it wasn't really angry. The research was chosen to be helpful and to be able to stand up for it. And the point where the employees can get money is to be able to do it. But the point where the money can't get to the point where it's not good. The point where the innovation can be created. What do you want to ask them? What kind of things do you want to do to have money in the air? It is time for a major reform of the Japanese R&D system. If you give money to R&D, it's not subsidy. It's investment to the future, because without that money, in 10 years down the road, you'll have nothing. One of the, you know, problems as I see it in the Japanese university system is that you have the full professors being in charge of associate professors and assistant professors. But that means neither one is completely independent. But if I tell you that most of the results that have led to the Nobel Prize were done by people under 40 in most fields, you can see why it is so important that the young people become independent. And this independence is needed to generate creativity. I have advocated a funding system that is not based on project plans, but is based on brains. Currently, most of the third party funds in Japan is given for a project. But I've read a funny story about what this means. Antibiotics were discovered by Fleming. And Fleming was going a few days on vacation and he left the Petri dish on his bench. When he came back, this Petri dish was full with bacteria, except for one area where a mold was fallen into. It was a contamination. And around this mold, no bacteria could grow. So now this guy to the Canadian parliament said, if you were Fleming, what grant would you write? You would write, I am planning to take three days of vacation. I will leave a Petri dish on my bench. I hope that it will be contaminated so that I can subsequently discover the antibiotics. If you want to have a good research system, you have to have a balance between project and curiosity-driven research. It's quite different. What is different is that the goal is big and different. In the case of SASOKEN, the mission is to solve the social problem by doing social implementation. Of course, the base is based on innovation. The mission is to strengthen the cooperation between Japan and Japan. In the case of university, it is possible to change the world in a more advanced and basic way and to create a new innovation that cannot be destroyed. And to be able to change the world in a more secure way. That is what we aim for. And at the same time, the people's education is also a big mission. For the purpose of the SASOKEN project, I think that there is a big difference between a research center and a university. I think that the way to invest money is much different. I think that it is better to invest money in a more secure way than to invest in a research center. I think that it is better to invest money in a more secure way than to invest in a research center. That is what I have changed. There are many universities that have not taken such a form yet. As the teacher said, there is a possibility that the SASOKEN research center is particularly advanced. It is really necessary as a mechanism to implement a wonderful season in a research center. Of course, it is necessary to support the SASOKEN project. But when you look at it from a researcher's point of view, it is not possible to build a research center that is quite original and that is why I think that the SASOKEN project is necessary. The SASOKEN project is to trust the organization and trust the SASOKEN project as well. That kind of environment is necessary. There is a vision for the organization. It is necessary that everyone can share their ideas. Another important thing is to work hard. It is not just working hard, it is working hard. It is not good to just work hard. If you really want to share your ideas, you should not create a group of young people who are involved. You should not create a group of young people who are involved. You should work as a vision for the organization. The SASOKEN project was made by young people who were involved last year. It is important to work hard and work hard in that direction. This is a main route of technology transfer that you provide products or ideas for products to existing industries. But there is a second route driven by new ideas, new concepts that are then translated into new companies. The main job of a university president is to give these people all the freedom they can get to come up with some crazy idea that then opens up a new market. These universities that have as a mission a technology transfer. has produced graduates that have started 30,000 new companies. They would amount to being about the 12th largest economy in the world. So this is the direction that OIST is taking. The number of people who want to study abroad is decreasing. I wonder why. The challenge spirit is accelerating in Japan. On the contrary, when you fail in a challenge, you think about it. If you fail in a challenge, you will be able to open it up. Those people will not be able to carry the project. Roughly speaking, there are three types of scientists. There is the pure scientist, take Einstein. I don't think Einstein has thought of GPS when he developed the relativity theory. But it was important for GPS 50 years later. The second is use inspired research. Take Pasteur. Everything Pasteur did throughout his life. And I would actually say most people working in life sciences have in the back of their mind the use inspiration. What can I do in order to improve certain things for humanity? You know, diagnostics, therapy, new drugs. And the final one is Edison. It's like the engineer. This is where you have a little science on the side. But the bottom line is you only think about application. These three individuals as subtypes are in every university. Now you have to foster it. You have to make the transition into business easy. I think it would be great if you could collaborate with each other. I think it would be difficult to collaborate with Einstein. But I think it would be difficult to collaborate with him. In the case of Pasteur, Einstein has a strong personality. If you have to do something like this, you have to be able to connect with him. I think there is enough potential to collaborate with him. For example, Edison. I think it would be difficult to collaborate with him. But I think there is enough potential to collaborate with him. I think it would be difficult to collaborate with him in Okinawa. I think Einstein has a chance to collaborate with him in the ocean. I think there is enough potential to collaborate with him in the ocean. In a sense, we are complementary. OIS clearly needs more contact to Japanese industry. And I believe that if we would work together and we can do so, I would believe that it would be of mutual benefit if we would work together, utilizing the different types of expertise we have. I would like to give a message to the researchers in Japan. As I said earlier, it is very important to have a challenge spirit. As a whole, I don't think I should be shocked. I think this is very important. I think diversity can be evolved for the first time by merging with the things of consciousness. Unlike Neanderthals, our homo sapiens have evolved. Neanderthals seems to be better than homo sapiens, but they have never evolved. They have always been in the same cave. The homo sapiens have evolved. In the end, the homo sapiens crushed Neanderthals. Of course, the researchers themselves have also been shocked from the point of view of consciousness. And I would like to return the challenge spirit to them. Homo sapiens is inherently curious. This is why we are sitting here. We want to make use of the environment in a positive sense. And as we all know, there are numerous challenges. So we need to train the next generation, but we also need to train the current generation that they understand what's coming up. Although I agree there has to be a level of bottom-up, universities have to rewrite their curriculum. From my point of view in Japan, it doesn't work without a strong top-down signal.


Attention, civilian! Attention, civilian! Attention, all civilian using internet connected devices should not turn off their device. Pay attention to this message. This learning from SCP Foundation can concern your safety and security. SCP Foundation is a formerly secret organization dedicated to protecting you from anomalies. An anomaly is any object, entity, or phenomenon which violates natural law. The anomaly's foundation is immediately concerted with its name, SCP-008. This anomaly is a preeminent disease which is 100% lethal, and after causing the infected individual to re-demand with only basic hyper-aggressive instincts and physical abilities. Infected individuals are not to be approached. Infected individuals have little brain activity and there is no possibility of curing that at this time, they should be treated as disease that either are treated from or terminated. The infected have limited sensory abilities, therefore, ever eating and hiding from that disinfective strategy. Please note that the infected are somewhat faster than the infected humans. If you must defend yourself from the infected, remember to either proceed or maximize your chances of survival. There is a location where you have an avenue of escape, but you cannot be easily encircled. Is a lately infected to make that more manateable? Destroy the head of the infected. This is the only way to ensure termination. Ensure that you have not been bitten by the infected, and this is how the infection spreads. Whether it was a very as soon as possible, there may be more infected near me. Conventional methods of communication such as lightning, television, and radio have been disrupted by a disturbance related to SCP-008 outbreak. As such, you are likely one of the few people in your gold ore city district who have received this message. You must inform others of the threat and do what you can to ensure their safety. Do not reveal the true nature of the threat, go to its perceived improbability instead. Suggest that a natural disaster is incoming and evacuation is essential. Thank you for your attention and cooperation at this time. The SCP Foundation and Slash or your National Government will attempt to make contact with more information as it is available. Secure. Contain. Prodec.


يقول أن يوم الحسين يحضرون رأسنا وحضرون رأسنا لماذا؟ لأن إمام حسين أقرح جفونه؟ هذا one of the reasons إمام الرضا then says وأذل عزيزنا meaning our darling has been humiliated and the reason isn't just because إمام حسين أقرح جفونه the reason because القتل لهم عادة وكرامتهم من الله الشهد being martyred was a usual thing هناك أشياء التي حدثت إمام حسين علي السلام that was worse than being martyred being martyred was the easiest thing that happened to إمام حسين علي السلام some of us do not even know what happened to إمام الحسين علي السلام and cannot even handle to hear and mention what happened to إمام حسين علي السلام if إمام حسين علي السلام sacrificed only one thing and Karbala Islam would still have remained nonetheless إمام حسين continued to sacrifice everything because that would make Islam stronger it was the greatest thing that إمام حسين sacrificed for and the easiest thing for him was sacrificing himself there's a word that has been mentioned in history which mentions and states the generosity of إمام حسين علي السلام إمام حسين he knows who he is he knows he's the greatest he wanted yet to be martyred himself and leave his companions and families in good he wanted to be killed without his companions he wanted to sacrifice the pain and feel the torture but he wanted his companions and family to remain harmless and that is exactly what happened there were more than one or two misfortunes many misfortunes that إمام حسين did not let his companions observe he handled it himself and these misfortunes are not lesser than being tortured and murdered and the hardest thing that the master of martyrs إمام حسين did was present his companions that was the hardest thing that he sacrificed for but in order to keep إسلام remaining he sacrificed his companions as well he did not only sacrifice his companions he sacrificed what was harder and more painful on his heart which is his family he sacrificed 17 individuals where there are none in this world that are similar to them as narrated and mentioned in history he did not sacrifice them for death only he sacrificed them for a massacre for being slaughtered and was that enough for إمام حسين to sacrifice for? no he sacrificed what's more painful to his heart than that I don't know if you've seen a woman on streets being beaten which would be hard to see a woman being beaten than a man how about if this woman is a little girl that is more painful how about if she was being beaten on her face إمام حسين sacrificed his daughter سكينا إمام حسين sacrificed what's more painful than this he sacrificed his sister زينب to be captive and presented to يزيد أعطى الذي ملكت يداه إله كل شيء حتى الجنين فداه كل جنيني إمام حسين presented everything to Allah in Karbala and sacrificed for everything the majority of us do not know what إمام حسين sacrificed for in Karbala and many of what إمام حسين sacrificed for did not even mention or be mentioned in history إله للبيت never even mentioned them due to its severity and its intolerance thus this is part of what إمام حسين gave to Allah and presented to Allah and sacrificed for in Karbala now what did Allah honor إمام حسين for these sacrifices Allah's name is الشكور meaning thanking if a creator was to give one small thing to Allah Allah would thank them double what they gave إمام حسين has given everything to Allah what did Allah give إمام حسين and I am saying this word with my full clear mouth Allah gave إمام الحسين everything everything what we read about and what has been narrated in history from the four lives the life on earth the life in برزخ the life in grave and the life in قيامة the day of judgment and the life in heaven Allah has gave إمام حسين everything let's mention some of the things that we see in this world today that Allah has given it to إمام حسين when it comes to commemorating the martyrdoms of أهل البيت anyone from أهل البيت do we see the same thing happening to them as we see it happening for إمام حسين all people around the world get ready for محرم they wear black they plan those مجالس people leave their homes their mosques they just enter the community centers to listen to these مجالس you see that they spend money just for إمام حسين more than what they do for any other commemorations to any other إمام do we see this happening other than إمام حسين its commemoration it becomes bigger and greater because all people around the world from every certain places they all gather and they mourn on one specific day for a whole month who gave this إمام حسين Allah gave everything to إمام حسين in this world and this is what we see today do you find someone in this world after many decades and many generations people remember him and start to mourn with sorrow grief and pain and they are not just the شيهز and they are not just the Muslims millions of people around the world do you find someone greater someone that millions all around the world would gather in one month and mourn with sorrow grief other than إمام حسين عليه السلام Allah made these مجالس the حسينيات the مجالس are the homes of إمام حسين عليه السلام how many حسينيات are there in this world in one research in بحرين they said that there is only in بحرين this small country 1,000 حسينية how many حسينيات are there in this world all those are the homes of إمام حسين عليه السلام do you find someone who has more homes more than إمام حسين عليه السلام who gave this to إمام حسين Allah gave this to إمام حسين do you find miracles happening in this world as much as we find it happening with إمام حسين عليه السلام how many miracles have we heard and seen ourselves that occurred in the مجالس of إمام حسين عليه السلام how many people who had no cure for their illnesses they were treated from just coming to these مجالس for إمام حسين عليه السلام crying and asking for treatment how many prayers that were not accepted and not responded and they were answered by these مجالس Allah gave this to إمام حسين aren't these miracles who gave them to إمام حسين Allah did and maybe so many of you have tried it with your own self that there are doors that are closed in your face and you start to lose hope and then you see them opened in one of these مجالس of إمام حسين عليه السلام how many miracles have we seen in this whole world that Allah gave to إمام حسين if we had time we would keep going on and on with more information of what Allah gave إمام حسين in this world however this is also part of what Allah gave إمام حسين in the life in grave in عالم البرزخ what did Allah give إمام الحسين there are things about إمام حسين عليه السلام we don't even know about إمام الصالق عليه السلام says that إن الذي يلي حساب الناس قبل يوم القيامة which is عالم البرزخ الحسين من علي the one who is held accountable to discipline or honor people in grave in عالم البرزخ is إمام حسين عليه السلام he is the one who is responsible to discipline you or to honor you if you did something good and those who visit إمام الحسين in this world إمام حسين will visit them in their grave although in the life of قيامة in the day of judgment there are many things that Allah gave إمام حسين عليه السلام just in the day of judgment فعطمت الزهرة عليه السلام she herself will act part of what happened in عاشورة a huge part of the day of judgment is عاشورة in a matter of fact in the day of judgment there is a narration that states you see people being questioned and the ones who visit إمام حسين عليه السلام in this world those people came to the majal عليه السلام and cried on إمام حسين عليه السلام those people who donated to إمام حسين عليه السلام all those people who did something to إمام حسين عليه السلام in this life will be sitting with إمام حسين عليه السلام so there will be no lineup for them in the day of judgment there are people waiting to be questioned millions of people on the day of judgment and those ones are sitting with إمام حسين عليه السلام talking to him و تتحدث عنه و تمرسة و يقول ان الحور العين سيقوم بخبرهم و يقولوا لما لا تشاهدوننا سيقولون لهم أنهم موضوعون مع نورة الإمام حسين عليس سلام من قلت هذا لأمام حسين ؟ الله قلت هناك الكثير من الآخرين التي قلت بها ما الله قلت لأمام حسين على يوم جدم الله قد حسين أمام حسين كل شيء في فرحة ويجب في حياته ويجب في حياته ويجب في فرداته هذا خاص بوا الله لإمام حسين now what have we given to Imam حسين دعني أعلم 3 قليل الأثيق الأول point is that as much as we give to Imam حسين عليه السلام لن يكون بخير. لن نقل one thing that Imam Hussein has given to Allah to save the religion of Islam. And on top of that we have to give Imam Hussein عليه السلام. It is not a favor from us. It's the right we owe Imam Hussein. We are responsible to take action in industry guards. This is what's narrated. الله تعالى gave each and one of us a responsibility to owe back Imam Hussein for the blood that he shed on the day of Karbala. We are not giving Imam Hussein a favor. We owe him back. Thus anything we give to Imam Hussein will be counted even if it's a small thing. Imam Hussein would consider it. And nothing gets lost with Imam Hussein. Us as human beings we should not say I can't do anything. Everyone can do something even if it's a small thing. But we should always aim for the higher and the better things to present to Imam Hussein عليه السلام. The last point and I conclude with a very astonishing story. In Karbala there were a group of men gathered to expand the shrine of Imam Hussein عليه السلام. There were houses near the shrine back then. So people used to live in meters away from the shrine of Imam Hussein عليه السلام. So they decided to come and buy those homes and demolish them to make the shrine bigger. They came to one man and asked him how much would you like to sell your home? Just sign this check or sign this paper and we will buy the home from you as much as you want. The man accepted the offer. But his home was old. It was dirty. It was rusty. There was no electricity. So he decided to fix it. The neighbors around him started to assume that this man wants to sell his home with a higher price. That's why he's renovating it. A couple days passed by and those group of men came to the man and told him that we are buying your house today from you. This man said I am not selling my house. They said you said you're going to sell your house. He said to them yes I accepted and agreed. But I do not owe nothing but this house. And I felt shy to present it to Imam حسين عليه السلام. It being rusty. No electricity. It's not been painted. So I renovated it and I fixed it to present it to Imam حسين عليه السلام. It's a gift and I don't want to sell it. I'm gifting it to Imam حسين عليه السلام because this is the only thing he has. This is how we should present things to Imam حسين عليه السلام. When you want to cook rice for example make sure you choose the best type of rice. Not the cheapest. Once you want to serve water or drinks you should choose the best type. Don't go cheap with Imam حسين عليه السلام. Anything you do for Imam حسين عليه السلام. Choose the best type. The most expensive thing to present to Imam حسين عليه السلام. إن شاء الله everything we present to Imam حسين عليه السلام. We see it in this world before the hereafter. وسل الله على سيدنا ونبينا محمد وعلى ألبيتي الطيبين الطاهرة. نصل حديث عن الإمام الصادق صلوات الله عليه يقول إن الذي يلي حساب الناس قبل يوم القيامة هو الحسين بن عليه صلوات الله عليه. لا عجب في ذلك من الذي يتولى قبض الأرواح بإذن الله تعالى ملكل من الذي يتولى حساب الناس قبل يوم القيامة سيد الشهر


Okay, so let's do another one of these converting decimal notation to scientific notation. So this is another one of these population problem questions. So you can see that first one is 6,974,000,000. So when we imagine where the decimal point would be, we move it 1, 2, 3, 4, 5, 6, 7, 8, 9 places. And so we use all of the digits that are significant. So the answer would be 6.974, don't put any of those zeros on there. And since we moved the decimal nine places, it would be times 10 to the ninth. That's where that nine comes from. So use the same problem solving strategy for the rest of them. 1,344,000,000,000 converts to 1.344 times 10 to the ninth. Because we're moving the decimal point nine places. And remember, don't put any of those non-significant zeros. So 11,254,000 converts to 1.1254 times 10 to the seventh. And then 4,487,000. We're going to write that in scientific notation as 4.487 times 10 to the sixth. Let me know if you have any questions on this one.


Hi, I am Annesha. I will give a quick overview of our project, Neural Network Models, described by the role of plasticity in cochlear implant outcomes. Cochlear implants or CI's are one of the most successful neural prostheses that have been able to partially restore hearing perception in people with severe sensory neural hearing loss. CI users are able to correctly identify speech in a quiet environment. However, their performance in complex auditory tasks such as speech recognition in noise is still extremely poor compared to normal hearing listeners. In this project, we propose to use a computational model of CI-mediated hearing to better understand the different factors behind the successes as well as limitations of current cochlear implants and efficiently explore the space of new signal processing and stimulation strategies that may improve the device's performance. In our proposed model, we implement a deep artificial neural network to simulate the central auditory pathway. We model normal hearing by training the network using simulated auditory neural input from an intact cochlear. To model CI hearing, we test the same trained network on simulated auditory neural input from CI. Further, to simulate the possible consequences of learning to hear through a CI, we retrain this entire network on CI input. Also, to model the possibility that only part of the auditory system exhibits this plasticity, in some models, we retrain only the late stages of the network. We evaluate the model performance using speech recognition in noise tasks and compare it with the performance of normal hearing conditions and data from cochlear implant users. When the entire network was re-optimized for CI input, the model exhibited near-normal speech intelligibility score. Performance and power with CI users was achieved only when just the late stages of the models were re-optimized. Our results are consistent with the possibility that limitations on CI-mediated speech perception relate to incomplete plasticity that prevents the risk of the auditory system from optimally decoding CI input rather than being entirely due to impoverished auditory neural representation from CI stimulation.


What's up navigation traders today's December 18th on a Wednesday welcome to today's trade hacker update another day feels like Groundhog Day the Markets did almost nothing today ended up pretty flat Just grinding sideways I'm not sure if they're kind of waiting for some more information to come out about the whole impeachment proceedings or If they're just taking a pause taking a breather, but either way pretty boring trading So what did we do today a couple things one? FedEx had their earnings announcement. I mentioned that and they Dropped down so on the earnings duck We're still in that and still have a chance at a good profit If we get a little bit of a bounce higher After the announcement because it went down so much implied volatility stayed bid for a while In fact, it was up closer to around here earlier today, and then it contracted even more later in the day So what we did is we went ahead and entered an iron duck here. So price is way up here. So we've got this big Downside buffer for price to potentially move in there if price rips higher We still make a little bit of money moves lower. We've got a chance at a max profit So that's where we're at in FedEx The other thing we did is we sold some premium in bonds if we take a look at TLT the ETF You can see here It's one of the only symbols that has some still decent implied volatility Ivy percentile up around the 53 range. So we sold some premium in there to take advantage Really the only other thing besides upcoming earnings plays is natty gas that has decent implied volatility So those are the symbols we are left with and then lastly I wanted to touch on Tesla Tesla has been on absolute fire lately. I can see since the beginning of October I mean the markets grinded higher, but Tesla has absolutely exploded higher and so if we take a look at that In fact, let me do this. I want to move to a I want to look back Over a longer period of time This is a five-year chart. So you can see, you know, really since the beginning of 2017 end of 2016 Tesla's really been in this range from 220 up to 400 now It's coming to that height again it hit new highs again today and I'm really looking for Tesla to break out I mean, I think it's I think it's gonna break out and head up to 600 So looks like a potential buying opportunity, you know, this is definitely not a contrarian move a contrarian would be looking to sell here I disagree with that. I think I think Tesla is going to continue to be on fire So I'm looking to be a buyer on any dips. So any any kind of pullbacks I would look to be a buyer for some continuation to the upside so that's what we're looking at in Tesla and That's about it. So M. U announced after the bell today We did not put on an earnings play in M. U, but let's see what it did So it's up a little over a buck. So not much movement and so we didn't do anything there So we'll see how that ends up tomorrow if implied volatility still decent maybe look at a potential play but being as low as it was got a little bit of spike today, but Not really looking for anything there tomorrow because I assume implied volatility is going to contract and Then we will see what happens. So that's all we got. Hope everybody has a great evening Talk to you tomorrow


Hello, and welcome to this session. This is Professor Farhad and this session we would look at CPA questions that deal with foreign currency adjustments and translation. These topics are covered in financial accounting and reporting CPA exam. And on my website, I cover those topics in details, in depth in my advanced accounting, as well as international accounting. So if you are looking for more, and I'm for sure you're going to be looking for more unless you are competent in this topic. You will need to go to my advanced accounting and I have two chapters about this topic and in my international accounting. I have three chapters plus illustrations plus examples. So you want to make sure when you go into the CPA exam, you are comfortable with foreign currency adjustments and translation. As always, I would like to remind you to connect with me on LinkedIn. If you haven't done so, YouTube is where you would need to subscribe. I have 1,700 plus accounting, auditing, tax, finance, as well as Excel tutorial. If you like my lectures, please like them, share them, subscribe to the channel, put them in playlists. If they benefit you, it means they might benefit other people. Share the wealth, connect with me on Instagram, on my website, farhadlectures.com. And this is where you have access to my advanced accounting course, international accounting. And one subscription gives you access to everything, as well as 2000 plus CPA questions. If you're looking to improve your CPA score, 10 to 15 points, if you're looking to supplement or complement your accounting courses, check out my website. Let's take a look at the first question to have a kind of a basic understanding of this topic. By looking at these questions, you're not going to be able to learn everything, but you'll be able to find out, what am I lacking? What do I know? Test yourself. And this is the purpose of taking exams to find out what you don't know. What you know is not really beneficial for you. If you know something, then there is no value to it because you already know it. The value is when you find out, I am lacking somewhere, then you can zoom in to find out, what are you lacking and what can you do about that issue? So let's take a look at the first question. Let's take a look at the first question. With regard to the foreign currency accounting, which of the following are included in the determination of net income for the period? So here they're given us two type of adjustments. They're given us remeasurement adjustments as well as translation adjustment. And the question is, the first thing you need to know is where does the remeasurement adjustment appears and where does the translation adjustment appears? Because that's important. If you don't know where do they appear, then you can do the computation correctly, but if you don't know where do they appear, do they appear in net income? Do they appear in OCI? Then you will get the question incorrect. So that's the first thing. For example, do you know where does the remeasurement adjustment appear? Well, you need to know that the remeasurement adjustment appears on the income statement. Therefore, it goes into the determination of net income. That's what you have to know. Just basically memorizing, but when you are dealing with the remeasurement, it involves many steps. But the most important step to know is, do you know that it goes on the income statement? Therefore, the answer is A. Where does the translation adjustment appears? We're going to find out soon. Let's take a look at this question. Sue industries has international subsidiaries in Asia. These industries enter into contract in both US dollar as well as local currencies. In year 13, Sue industries experience a remeasurement loss and a translation gain of 36,000. As a result of this conversion, what would Sue industries report and accumulated other comprehensive income? Simply put, you are giving two things. You are giving remeasurement loss and you are giving translation gain. They're asking you which of these two will appear in accumulated other comprehensive income. Let's take a look at this prior question. In this prior question, we already determined that remeasurement adjustment, which is either remeasurement gain or remeasurement loss, are reported in the income statement. Therefore, here translation. Do you know where the, so we already know. The 55,000 cannot be the answer because the 55,000 we already know that remeasurement is income statement. Therefore, the question becomes, do you net them? Do you net 36 and 55 and you don't net them? You don't net them. So in case some people say, okay, let me net them. Well, you don't net them. Then with so simply put, the question becomes, do you know where translation gains go? Well, translation goes into A O C I accumulated other comprehensive income. Therefore, the answer is the, now, I already told you this and you have to know this. That's easy. That's easy peasy. Translation gains go into O C I. But what I want to tell you is when you have to know the steps to perform translation, because you could see this as a simulation, you could, or you could see translation in a multiple choice question. All what I'm asking you here to know, do you know where the translation go? Do you know where the remeasurement goes? So those are simple concepts. But when you practice them, you need to know much, much more. And that's why I refer you to Farhat Lectures. Because when you take a CPA course, they might spend 15 minutes or 20 minutes explaining remeasurement and explaining translation. That's it. Or maybe half an hour about both topics. On my website, I spend two to three hours in each course. And in my international accounting, I spent four to five hours because because I go over several examples in the tales and I'm talking hours, not minutes. In this way, you have a good understanding. Walk into the walking into the exam. You have full confidence if they throw anything at you. Let's take a look at this question, which of the following would result in a purchasing power decline purchasing power decline? What does that mean? It means you are losing your purchasing power. You are losing your purchasing power. And when would you lose your purchasing power? Think about it. Will you lose your purchasing power when there is inflation? So if you have money, if you have $100 today, and this $100 can buy you, let's assume the cup, the cup of coffee is for $2 at Wawa, you'll be able to buy 50 cups of coffee. Okay. What happened if the cups of coffee at Wawa goes to $3? So we have inflation. What's going to happen to your $100? It's going to buy you less than 50 cups of coffee. So you would lose purchasing power. It will buy you less than 50. You know, you can take 100 divided by 3, but it'll buy you less than 50. So which of the following would result in a purchasing power decline? Holding monetary asset. Monetary asset means money. Think of it as money, cash, in a period of deflation. Oh, no, no, no. If you hold money and there's deflation, deflation is the opposite of inflation. Deflation means the cup of coffee at Wawa goes from $2 to $1. Now you can buy 100 cups. Would you lose, would you lose, would you lose decline in purchasing power? On the contrary, so A is out. Holding monetary asset in a period of inflation, that's exactly what I said. If you have money and prices go up, inflation means the prices of things go up, then you would lose purchasing power. I would say B is the answer. Holding monetary liabilities in a period of inflation, that's good. That's good. Actually, you don't decline. That's good for you. If you're holding monetary liability, it means simply put, you have a loan at the bank and let's assume you have a loan and you have a loan for $100,000. That's a liability. You have to pay the loan. Suddenly, inflation kicks in. Now as a result, your employer increase your salary by 20% because you need to keep up with inflation. Now you have more money coming in to you in form of salary or if you're selling product, you can raise your prices, but your loan of $100,000 is fixed. It stays the same. Now you're making more money because of inflation, but your liability is fixed. Now you are better off. It's going to result in a purchasing power improvement. Why? Because now you could pay off your loan quickly and have more money for other things. That's the good thing about holding monetary liability in a period of inflation. That's the good thing. That's the good thing. Let's take a look at this question. On October 5th, year 13, Griffin purchased merchandise from an affiliate in Taiwan for $20,000 when the spot rate was 0.65. Griffin paid the bill in February, year 14 when the spot rate was 0.74. The spot rate was 0.80 on December 31, 2013. So notice we have three different dates. So you have to be very careful. We have October 5th. This is the date of purchase. This is when we made the purchase. We have December 31st end of period, end of the accounting period. And we have the payment that happens on, February. They don't tell us when in February. February is the payment. So in this question, in this problem, before I read the question, they could be asking about three different things. So it's very important to look at what you are given. Okay, but it's okay. Now we read it. What amount should the Griffin report as a foreign currency transaction gain or loss in its income statement? So transaction gains and losses goes on to the income statement for December 31st, year 2013. So simply put, now we know we have to zoom in on this date because we're giving three different dates. Because we are giving three different dates, it was a little bit not confusing. We have to know what are we being asked. We're being asked for the gain on the loss on the eve of December 31st. So what does that mean? Well, let's go through this journal entry and see what we will have to do in this problem. And I like to walk you through the journal entry. So this way you understand this topic because this is a good example for illustration purposes because I can go over the examples and show you exactly what we are doing on the three different dates because they could ask you the question in a different way. So this way you are comfortable with this. Let's start with October 5th. What happened on October 5th? You made the purchase. You purchased 20,000 worth of merchandise from Taiwan and the spot rate on that date was 0.65. So what happened is this on that date, you're going to debit your inventory. Your inventory it's going to be your inventory it's going to be $13,000 because based on the spot rate on that date and you will credit accounts payable of $13,000. Now remember this accounts payable in a foreign currency because you have to pay in Taiwanese dollar. Let's fast forward till December 31st. December 31st what you have to do you have to sit down and ask yourself what happened to my to that investment in accounts payable to that foreign currency. So you have basically you have an investment and it's another investment a payment. So you have in a sense it's an investment in this foreign currency because an investment could go up or it could go down. So what happened on December 31st if we take $20,000 we multiply it by 0.8 the rate is 0.8 I believe the rate is 0.8 in December 31st the rate is 0.8 and what's going to happen is now you are responsible for paying $16,000. Now what happened to your to your liability is $16,000 hold on a second my liability is $16,000 that's bad for me it means I have a loss from foreign currency transaction fc is foreign currency transaction in the amount of $3,000 why because I need to increase my accounts payable by $3,000. Now my accounts payable so if I'm looking if I'm looking at my accounts payable initially it was I had $13,000 obligation now I have to make it $16,000 so I have to add $3,000. So my liability now as of December 31st is $16,000 and I booked the loss of I booked the loss of $3,000 in my on the income statement so remember this goes in the income statement and they're telling you on this problem sometimes the question could be where does this loss or gain goes it goes on the income statement. So simply put we answer the question right there because they're asking us about December 31st December 31st we have a loss and the loss is $3,000 they could also ask you what happened what is the loss or the gain year 2014 when we pay it in February because remember we we don't pay it until year 2014 let's see what happened on year 2014 in year 2014 this spot rate when we paid it was 74 look in year 2014 was 74 so when we were ready to pay this bill we'll take $20,000 times 0.74 and let's get a calculator to compute this so if we take $20,000 times 0.74 it's $14,800 now I oh when I write the check I write the check only for $14,800 for a liability of $16,000 what does that mean well let's see what does that mean well on the books I owed $16,000 I only have to pay $14,800 I have a gain of $1,200 what does that mean it means on that date this is the date of the payment here's what I would do I will credit cash $14,800 I will debit my accounts payable $16,000 because I have I paid it I'm no longer responsible for everything therefore I have to reduce it down to zero the difference between those two is a gain from foreign currency transaction and the gain is $1,200 the gain is $1,200 now you could be asked what is the net gain or loss for the whole transaction well notice here there is no $1,200 answer so they're not asking us about this but they could ask you what is the net gain or loss on the whole transaction well we had a loss of $3,000 a gain of $2,200 the overall is a net loss of $1,800 so notice the net loss of $1,800 is there as the answer to see but that's not the question so you have to be very careful what you are being asked in a question like this and again these topics are covered in my advanced accounting as well as international accounting so it's very important it's very important that you visit my website if you want additional material additional explanation because in a CPA course they assume you know this they assume you know it and they would review it with you I don't assume anything I will sit down and explain this as this is the first time in your college classroom and the problem with this topic it's one of two things you never took an international accounting course or advanced accounting or when you took them they did not cover those chapters or if they cover those chapters the teacher did not did not do a good job and if the teacher did not do a good job you were not mature enough to pay attention because it was your senior year and you were ready to go no problem visit my website to make up for all those missed time good luck study hard stay safe especially during those coronavirus days