Category Archives: Europe

Trump Backgrounder for the Leftist Media

In today’s Trump Doral, Florida presser, the MSM are reporting in a variety of terse ways, that Donald Trump is asking the Russians to hack the DNC and God knows what else. For the record, this is the full reference that is being “precis’d”. The most serious hacks going on right now are the media hacks.

“If it is Russia, which it’s probably not, nobody knows who it is, But if it is Russia, it’s really bad for a different reason, because it shows how little respect they have for our country. When they would hack into a major party and get everything, but it would be interesting. I will tell you this. Russia, if you’re listening, I hope you find the thirty thousand emails that are missing. I think you’ll probably be rewarded mightily by our press. Let’s see if that happens next.”

The Progressive Left

“The fundamental flaw in both the left and its media is that they are craven. Without a moral compass and no sense of integrity or righteousness, they will chase every gold cloaked squirrel that runs in front of them, which is why they are where they are today: roadkill.”

Durden: zerohedge.com: “Deutsche Bank Poses The Greatest Risk To The Global Financial System”: IMF

“Deutsche Bank Poses The Greatest Risk To The Global Financial System”: IMF

by Tyler Durden, Jun 30, 2016. Zerohedge.com

Over three years ago we wrote “At $72.8 Trillion, Presenting The Bank With The Biggest Derivative Exposure In The World” in which we introduced a bank few until then had imagined was the riskiest in the world.

As we explained then “the bank with the single largest derivative exposure is not located in the US at all, but in the heart of Europe, and its name, as some may have guessed by now, is Deutsche Bank. The amount in question? €55,605,039,000,000. Which, converted into USD at the current EURUSD exchange rate amounts to $72,842,601,090,000….  Or roughly $2 trillion more than JPMorgan’s.”

So here we are three years later, when not only did Deutsche Bank just flunk the Fed’s stress test for the second year in a row, but moments ago in a far more damning analysis, none other than the IMF disclosed that Deutsche Bank poses the greatest systemic risk to the global financial system, explicitly stating that the German bank “appears to be the most important net contributor to systemic risks.”

Yes, the same bank whose stock price hit a record low just two days ago.

Here is the key section in the report:

Domestically, the largest German banks and insurance companies are highly interconnected. The highest degree of interconnectedness can be found between Allianz, Munich Re, Hannover Re, Deutsche Bank, Commerzbank and Aareal bank, with Allianz being the largest contributor to systemic risks among the publicly-traded German financials. Both Deutsche Bank and Commerzbank are the source of outward spillovers to most other publicly-listed banks and insurers. Given the likelihood of distress spillovers between banks and life insurers, close monitoring and continued systemic risk analysis by authorities is warranted.

Among the G-SIBs, Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC and Credit Suisse. In turn, Commerzbank, while an important player in Germany, does not appear to be a contributor to systemic risks globally. In general, Commerzbank tends to be the recipient of inward spillover from U.S. and European G-SIBs. The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures, as well as rapidly completing capacity to implement the new resolution regime.

The IMF also said the German banking system poses a higher degree of possible outward contagion compared with the risks it poses internally. This means that in the global interconnected game of counterparty dominoes, if Deutsche Bank falls, everyone else will follow.

Notwithstanding moderate cross-border exposures on aggregate, the banking sector is a potential source of outward spillovers. Network analysis suggests a higher degree of outward spillovers from the German banking sector than inward spillovers. In particular, Germany, France, the U.K. and the U.S. have the highest degree of outward spillovers as measured by the average percentage of capital loss of other banking systems due to banking sector shock in the source country.

The IMF concluded that Germany needs to urgently examine whether its bank resolution, i.e., liquidation, plans are operable, including a timely valuation of assets to be transferred, continued access to financial market infrastructures, and whether authorities can ensure control over a bank if resolution actions take a few days, if needed, by imposing a moratorium:

Operationalization of resolution plans and ensuring funding of a bank in resolution is a high priority. The authorities have identified operational challenges (e.g., the timely valuation of assets to be transferred, continued access to financial market infrastructures) and are working to surmount them. In some cases, actions to effect resolution may require a number of days to implement, and the authorities should ensure they can maintain control over the bank during this period, including by using their powers to impose a more general moratorium for a specific bank.

Here is the IMF’s chart showing the key linkages of the world’s riskiest bank:

And while DB is number 1, here are the other banks whose collapse would likewise lead to global contagion.

Considering two of the three most “globally systemically important”, i.e., riskiest, banks just saw their stock price scrape all time lows earlier this week, we wonder just how nervous behind their calm facades are the executives at the ECB, the IMF, and the rest of the handful of people who realize just close to the edge of collapse this world’s most riskiest bank (whose market cap is less than the valuation of AirBnB) finds itself right now.

Judicial Watch: Law Enforcement Sources: Gun Used in Paris Terrorist Attacks Came from Phoenix

Law Enforcement Sources: Gun Used in Paris Terrorist Attacks Came from Phoenix

by Judicial Watch Blog, June 29, 2016

One of the guns used in the November 13, 2015 Paris terrorist attacks came from Phoenix, Arizona where the Obama administration allowed criminals to buy thousands of weapons illegally in a deadly and futile “gun-walking” operation known as “Fast and Furious.”

A Report of Investigation (ROI) filed by a case agent in the Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) tracked the gun used in the Paris attacks to a Phoenix gun owner who sold it illegally, “off book,” Judicial Watch’s law enforcement sources confirm. Federal agents tracing the firearm also found the Phoenix gun owner to be in possession of an unregistered fully automatic weapon, according to law enforcement officials with firsthand knowledge of the investigation.

The investigative follow up of the Paris weapon consisted of tracking a paper trail using a 4473 form, which documents a gun’s ownership history by, among other things, using serial numbers. The Phoenix gun owner that the weapon was traced back to was found to have at least two federal firearms violations—for selling one weapon illegally and possessing an unregistered automatic—but no enforcement or prosecutorial action was taken against the individual. Instead, ATF leaders went out of their way to keep the information under the radar and ensure that the gun owner’s identity was “kept quiet,” according to law enforcement sources involved with the case. “Agents were told, in the process of taking the fully auto, not to anger the seller to prevent him from going public,” a veteran law enforcement official told Judicial Watch.

It’s not clear if the agency, which is responsible for cracking down on the illegal use and trafficking of firearms, did this because the individual was involved in the Fast and Furious gun-running scheme. An ATF spokesman, Corey Ray, at the agency’s Washington D.C. headquarters told Judicial Watch that “no firearms used in the Paris attacks have been traced” by the agency. When asked about the ROI report linking the weapon used in Paris to Phoenix, Ray said “I’m not familiar with the report you’re referencing.” Judicial Watch also tried contacting the Phoenix ATF office, but multiple calls were not returned.

The ATF ran the Fast and Furious experiment and actually allowed criminals, “straw purchasers,” working for Mexican drug cartels to buy weapons at federally licensed firearms dealers in Phoenix and allowed the guns to be “walked”—possessed without any knowledge of their whereabouts. The government lost track of most of the weapons and many have been used to murder hundreds of innocent people as well as a U.S. Border Patrol agent, Brian Terry, in Arizona. A mainstream newspaper reported that a Muslim terrorist who planned to murder attendees of a Muhammad cartoon contest in Garland, Texas last year bought a 9-millimeter pistol at a Phoenix gun shop that participated in the ATF’s Fast and Furious program despite drug and assault charges that should have raised red flags. Judicial Watch has thoroughly investigated Fast and Furious and has sued the Obama administration for information about the once-secret operation.

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Ball: Paris Climate Conference: A Sideshow To More Frightening Use Of False IPCC Climate Science

Reprinted from WUWT Paris Climate Conference: A Sideshow To More Frightening Use Of False IPCC Climate Science by Dr. Tim Ball,  January 3, 2016.  from  WUWT President Obama used the Paris Climate Conference to advance his legacy: an agreement was … Continue reading

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Witness the Carbon Footprint of This Fully Armed and Operational Climate Summit

Witness the Carbon Footprint of This Fully Armed and Operational Climate Summit by John Hayward, November 30, 2015. Breitbart. Skepticism about climate change dogma is reaching a generational peak. One of the reasons is that climate change alarmists stubbornly refuse … Continue reading

Quote Of The Year.

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[Can’t see anyone coming up with anything better…!]