Dutch Central Bank Warns Of Market Calm Before The Storm

With one foot out of the door of Germany’s finance ministry, the former head of the German economy, Wolfgang Schäuble, 75, delivered a fire and brimstone warning over the weekend, telling the FT in an interview that there was a danger of “new bubbles” forming due to the trillions of dollars that central banks have pumped into markets. Schäuble also warned of risks to stability in the eurozone, particularly those posed by bank balance sheets burdened by the post-crisis legacy of non-performing loans, something we warned about since 2012, and an issue which remains largely unresolved.

Taking a broad swipe at the current financial regime – which he helped design – Schauble warned that the world was in danger of “encouraging new bubbles to form”.

Economists all over the world are concerned about the increased risks arising from the accumulation of more and more liquidity and the growth of public and private debt. I myself am concerned about this, too,” he said echoing the concern voiced just one day earlier by IMF head Christine Lagarde, who said the world was enjoying its best growth spurt since the start of the decade, but warned of “threats on the horizon” from “high levels of debt in many countries to rapid credit expansion in China, to excessive risk-taking in financial markets”.

And while Schauble’s dramatic warning was not surprising – prominent economists have a habit of telling the truth once their tenure is over, and once they start selling books warning about all the consequences of policies they helped adopt – one day later a more surprising, and just as urgent warning was delivered by the Dutch central bank, DNB, which on Monday said that ultra-loose monetary policy in the euro zone has run its courseand excessive risks seem to be building up in financial markets making the financial sector vulnerable to a sudden correction.

“It increasingly feels uncomfortable to have low volatility in the markets on the one hand while on the other hand there are risks in the global economy,” said Klaas Knot, the president of the Dutch Central Bank, at the presentation of DNB’s biannual financial stability report according to Bloomberg.

Putting the current unstable equilibrium in its temporal context, Knot said that the current picture resembles that of the period before the financial crisis.

Taking a page out of Mark Faber playbook, the DNB labelled the threat of a sudden downturn in markets, brought on by a return of risk aversion, as an “acute” risk for the international financial sector, capable of starting a new financial crisis in weaker euro countries and beyond.

And, according to the Dutch central bank, only one thing could prevent a further build up of risks, eventually resulting in a crash: Knot reiterated a call to fellow board members at the European Central Bank to start phasing out monetary stimulus measures. The “time has come,” he said. “Economic growth has been above potential for months and the threat of deflation is gone.

“The program has achieved what realistically could be expected from it,” Knot said about QE, adding that it supported growth, and reduced investment costs.

Of course, Knot is merely the latest to fall for the paradox of reflexivity, where he sees the product of central bank intervention as the object that was meant to be cured by said intervention – a process which has pushed yields on European junk bonds below the yield on the US 10Y Treasury, among other market distortions. In reality, if one were to reduce or eliminate the tens of trillions in liquidity injections by central banks, the world would find itself right back in the eye of a financial crisis hurricane, prompting central banks to unleash even more “unorthodox” measures, culminating eventually with central banks purchasing equities, as JPM’s Marko Kolanovic previewed last week.

Later this month, the ECB – rapidly running out of German bunds to monetize – is expected to decide on the fate of the central bank’s bond-buying programme, potentially announcing another taper of its current QE which purchases €60 billion in sovereign bonds per month.

Still, even Knot admits that whatever the ECB’s decision, any slow down or restriction in ECB intervention will have to be gradual, confirming that the ECB remains trapped by the market and any sharp, adverse reaction will promptly force the ECB to resume nationalizing the European capital markets.

“Interest rates will stay very low for a very long time, even if we decide to phase out our bond buying program at our next meeting. Nobody at the ECB is talking about raising interest rates yet.”

And, soon enough – once markets get reacquainted with gravity – nobody at the ECB will be talking about any normalization whatsoever.

 

From: http://www.zerohedge.com/news/2017-10-09/dutch-central-bank-warns-market-calm-storm

“The End Goal Is To Destroy The Constitution and Subvert The Country” – How Secretive Non-Profit Organizations Erode The United States

 George Soros Quote: I cannot and do not look at the social cosequences of what I do.

One of the biggest problems facing this nation is the amount of money that has been “sequestered,” to term it, for “Non-Profit Organizations,” or “NPO’s.”  Why?  They present a problem when they can be used by an unscrupulous individual or groups of unscrupulous individuals (for examples, a George Soros, or the Democratic Party respectively).  What is an NPO?  Let’s look at what they are and see if the definition is characterized by actual NPO actions.

Here is an excerpt from a book that describes NPO’s (what they should be):

“The main financial difference between a for-profit and a not-for-profit enterprise is what happens to the profit.  In a for-profit company like Ford or Microsoft or Disney or your favorite fast-food establishment, profits are paid to the owners, including shareholders.  But a nonprofit can’t do that.  Any profit remaining after the bills are paid has to be plowed back into the organization’s service program.  So profit can’t be distributed to individuals, such as the organization’s board of directors, who are volunteers in every sense of the word.”

Nonprofit Kit for Dummies,” ISBN: 0-7645-5347-X, pg. 8

Austere and stoic, these NPO’s, all!  Ahh, but what is conveniently left out is the salary portion…for the directors.  Those salaries are written off as an operating expense by the “Non-Profit,” but they’re hardly the funds gleaned by a “simple volunteer for the beneficent NPO.”  Another paragraph from the book shows this:

…for the most part, we’re talking about an organization that the Internal Revenue Service has classified as a 501(c)(3).  They receive exemption from federal income taxes and sometimes relief from property taxes at the local level.  Nonprofit organizations classified as 501(c)(3) receive extra privileges under the law.  They are, with minor exceptions, the only group of tax-exempt organizations that can receive tax-deductible contributions from individuals and organizations.

Being a nonprofit organization does not mean that an entity is exempt from paying all taxes.  Nonprofit organizations pay employment taxes just like for-profit businesses do.  In some states, but not all, nonprofits are exempt from paying sales tax…”

Read More: www.dcclothesline.com/2017/02/23/the-end-goal-is-to-destroy-the-constitution-and-subvert-the-country-how-secretive-non-profit-organizations-erode-the-united-states/

Here’s Who Funded Shut Down Of Milo Yiannopoulos At Berkeley | The Daily Caller

George Soros quote: "Deliberately misleading propaganda techniques can destroy an open society."

Chuck Ross  02/03/2017

The Alliance for Global Justice, based in Tucson, is listed as an organizer and fiscal sponsor for Refuse Fascism, a communist group that encouraged left-wingers to shut down the Yiannopoulos event.

While it is unclear whether those who carried out the violence were paid to do so, the benefactors of the Alliance for Global Justice — and Refuse Fascism — are listed online.

According to its most recent 990 tax form, Alliance for Global Justice (AfGJ) received $2.2 million in funding for the fiscal year ending in March 2016.

One of the group’s biggest donors is the Tides Foundation, a non-profit funded by billionaire progressive philanthropist George Soros. Tides gave AfGJ $50,000.

The United Steel Workers labor union also contributed $5,000. The city of Tucson is also listed in AfGJ’s 990 as a donor, but a city official says that the city acted merely as a pass-through for a Native American tribe that provided a grant to the activist group. The city official said that no city money went to AfGJ.

Charities associated with several major corporations also donated. Patagonia.org, the outdoor apparel and equipment company, gave $40,000. The Ben & Jerry Foundation, the charity associated with the ice cream maker, gave $20,000. And Lush Cosmetic gave $43,950.

Another bit of irony is seen in the $5,000 contribution from the Peace Development Fund, a group that claims to support organizations that fight for human rights and social justice.

Another major donation came from a group that was chaired by Hillary Clinton during the 1980s. The New World Foundation gave $52,000 to AfGJ.

Read More: dailycaller.com/2017/02/03/look-who-funds-the-group-behind-the-call-to-arms-at-milos-berkeley-event/

 

George Soros funds Ferguson protests, hopes to spur civil action – Washington Times

George Soros Quote: I cannot and do not look at the social cosequences of what I do.

There’s a solitary man at the financial center of the Ferguson protest movement. No, it’s not victim Michael Brown or Officer Darren Wilson. It’s not even the Rev. Al Sharpton, despite his ubiquitous campaign on TV and the streets.

Rather, it’s liberal billionaire George Soros, who has built a business empire that dominates across the ocean in Europe while forging a political machine powered by nonprofit foundations that impacts American politics and policy, not unlike what he did with MoveOn.org.

Mr. Soros spurred the Ferguson protest movement through years of funding and mobilizing groups across the U.S., according to interviews with key players and financial records reviewed by The Washington Times.

In all, Mr. Soros gave at least $33 million in one year to support already-established groups that emboldened the grass-roots, on-the-ground activists in Ferguson, according to the most recent tax filings of his nonprofit Open Society Foundations.

Read More: www.washingtontimes.com/news/2015/jan/14/george-soros-funds-ferguson-protests-hopes-to-spur/

A very good crisis

philanthropist, oligarch, oligarchy, NGOs,

George Soros on the 2008 election and financial crisis. “It is, in a way, the culminating point of my life’s work...the American election, the financial crisis... it is actually a very stimulating period."

George Soros is having a very good crisis. Other investors are wilting, political power structures are being upended and market economists are scrambling to fashion new theories, but the world’s most famous speculator is having a belated heyday.

“It is, in a way, the culminating point of my life’s work,” the 78-year-old says in his heavy Hungarian accent during an interview at his London mansion.

If Soros had retired from the money markets at 48 to become a philosopher – which was his life plan when he set up his own Wall Street hedge fund at the age of 43 – the world is unlikely to have heard of him, as either an ideas man or a money man. Even if he had ended his career 20 years later, he would have been remembered as little more than the big-stakes gambler who “broke the Bank of England” with his 1992 bet against the pound that earned him $US1.1 billion.

At 68 Soros had just predicted a global financial collapse which did not happen, just as he had done a decade earlier; his pet theory of market behaviour, which he calls “reflexivity”, had been largely ignored; and his political donations had bought him little sway in Washington. Yet today, he says, all those strands seem to have come together – “the American election, the financial crisis, the theory of reflexivity, so it is actually a very stimulating period”.

Read More: www.news.com.au/news/a-very-good-crisis/news-story/c106017ba109bc5688f219dd87ff845a