Pope Francis slams credit-default swaps market, call derivatives 'a ticking time bomb'

Warren Buffett once called them “financial weapons of mass destruction.”

Now Pope Francis, of all people, is taking aim at derivatives.

In a sweeping critique of global finance released by the Vatican on Thursday, the Holy See singled out derivatives including credit-default swaps (CDS) for particular scorn. “A ticking time bomb,” the Vatican called them. The unusual rebuke — derivatives rarely reach the level of religious doctrine — is in keeping with Francis’s skeptical view of unbridled global capitalism.

“The market of CDS, in the wake of the economic crisis of 2007, was imposing enough to represent almost the equivalent of the GDP of the entire world. The spread of such a kind of contract without proper limits has encouraged the growth of a finance of chance, and of gambling on the failure of others, which is unacceptable from the ethical point of view,” the Vatican said in the document.

The critique echoes comments made by Buffett in 2003, when he criticized the “unchecked” expansion of the derivatives market. Francis has been a critic of Wall Street in the past. He has called for regulating speculative financial practices and reining in the “absolute power” of the financial system, which he said would bring more crises.

At: https://www.bloomberg.com/news/articles/2018-05-17/pope-goes-off-on-cds-market-calls-derivatives-ticking-time-bomb

George Soros Group Leaves Hungary, Citing 'Hate Campaign'

Source: NPR

Billionaire George Soros' pro-democracy Open Society Foundations will pull out of Hungary following growing pressure from the right-wing government there.

Citing "an increasingly repressive political and legal environment" in Hungary, the OSF said in a statement that its decision to quit the country comes amid a crackdown on non-governmental organizations launched by Prime Minister Viktor Orbán, who won re-election to his fourth term in a landslide victory last month.

Orbán — who once received a $10,000 scholarship from the Soros Foundation to study political science at Oxford — has been locked in an escalating dispute with Soros. Orbán accuses Soros — a Jewish émigré who survived Nazi-occupied Hungary and later made his fortune in America — of trying to wrest control of their native country from those elected to office.

The OSF calls the campaign against it and its founder a "hate campaign [that] has included propaganda posters and billboards, invoking anti-Semitic imagery from World War II."

Read more: https://www.npr.org/sections/thetwo-way/2018/05/15/611204440/george-soros-group-leaves-hungary-citing-hate-campaign

Viktor Orbán, the Hungarian Trump

Nazi leads GOP field for CA Senate, calls Trump his inspiration, vows to "remove Jews from power"

A relatively unknown U.S. Senate candidate in California who was booted from the state's Republican Party Convention for a campaign promise to "remove Jewish leaders" from power is getting new attention since seen surging in one political poll.

Patrick Little, an unabashed admirer of Adolf Hitler who attended the Neo-Nazi March in Charlottesville last year, is now the Republican frontrunner in the California Senate Race, according to a new SUSA poll of likely voters.

Little garnered 18% (behind Dianne Feinstein’s 39%), establishing him as the leader among GOP hopefuls running against Feinstein. The poll, released on April 24th (SUSA receives an “A" rating from Nate Silver's 538 blog) also describes Little as Feinstein’s "likely Republican opponent” this November.

Little, who was denied permission to attend the state GOP convention, has praised Adolf Hitler and calls himself a "counter-Semite," has been endorsed by former KKK leader David Duke, and claims to draw inspiration from President Donald Trump.

"He showed me that people were willing to respond to dog whistles about whites having group interests, so I decided to state these things explicitly," Little said.

At: https://www.dailykos.com/stories/2018/5/11/1763592/-Nazi-Leads-GOP-Field-For-CA-Senate-Says-Trump-Is-His-Inspiration-Vows-To-Remove-Jews-From-Power

GOP Senate hopeful Patrick Little: Leading all other Republicans despite - or rather, because of - his avowed Nazi views.

Chile's National History Museum director fired for including Pinochet in 'Sons of Liberty' exhibit

The director of the National Historical Museum of Chile, Pablo Andrade, was dismissed today following his decision to include a tribute to former dictator Augusto Pinochet in a historical exhibit.

The exhibit, called Sons of Liberty: 200 Years of Independence, was organized as part of the country's bicentennial celebrations.

Among the 14 notable figures in Chilean history, it included both a portrait of the late dictator as well as a quote of his extolling the September 11, 1973, coup as "[the day] Chile joined the fight against the Marxist dictatorship by freedom-loving peoples."

The Ministry of Culture, Arts and Heritage stated that the minister, Alejandra Pérez Lecaros, asked Andrade to resign, citing "serious curatorial errors" in the exhibit.

The ministry ordered the immediate withdrawal of the Pinochet tribute.

"We deeply regret the moral harm caused by this situation, as the form and selection has caused, with just cause, so much controversy, and is inadmissible," the ministry said in the statement.

Pinochet ruled Chile as head of a military junta from 1973 to 1990 after a violent coup against President Salvador Allende. The Pinochet regime left over 3,500 dead or missing, tortured at least 28,000 political prisoners, and drove an estimated 200,000 Chileans into exile.

At: https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=https%3A%2F%2Fwww.pagina12.com.ar%2F113633-chile-echo-al-director-de-su-museo-historico&edit-text=

Chile's National Historical Museum, in Santiago.

Argentina in talks with IMF for $30 billion bailout

Argentina has asked the International Monetary Fund (IMF) for financing to help stem a five-month-rout in the peso that has led to a surge in interest rates and threatens to derail its economic recovery.

The government is reportedly seeking a flexible credit line worth $30 billion. An IMF spokesman didn’t immediately reply to a request for comment.

President Mauricio Macri announced the talks in a televised address earlier today in order to stem a renewed run on the peso - but without mentioning how large the line was.

“This will allow us to face the new global scenario and avoid a crisis like the ones we have faced before in our history,” Macri said.

The speech was the first time that Macri spoke to the country after the central bank abruptly raised the benchmark interest rate three times in 10 days, from 27% to 40% - the highest among major economies. The currency has plunged more than 18% this year, dragging down local bonds and stocks.

Seeing red

Behind the weakness is growing concern that both inflation (26%) and deficits are spiraling dangerously high.

A record 225 billion-peso ($24 billion) budget deficit Macri inherited in 2015 grew in two years to 569 billion pesos ($34 billion), as steep corporate tax cuts took effect. They are up another 30% in the first quarter due to a doubling in interest payments.

Higher interest payments are in turn due to heavy borrowing reliance on high-yield LEBAC notes, which, despite paying 38%, are being unloaded for dollars to be wired overseas - a variant of carry-trade known locally as the “financial bicycle.”

Rolling back protectionist measures has meanwhile led to a record, $8.5 billion trade deficit and a doubling in the country's historically problematic current account deficit to $30.8 billion, or 4.9% of GDP.

The bailout reportedly requires steep cutbacks in public works, subsidies, and pensions - but no corporate or wealth tax increases.

A similar, $38 billion “bulletproof” IMF-led bailout in December 2000 was followed by collapse a year later as both Argentine and foreign investors largely used the funds to finance capital flight.

At: https://www.bloomberg.com/news/articles/2018-05-08/argentina-said-to-request-30-billion-imf-flexible-credit-line

The IMF's Christine Lagarde and a disconsolate Macri during a recent meeting. The IMF has been one of his right-wing administration's most prominent cheerleaders.

Bob Lynn: An unpretentious editor who inspired many reporters

The Kansas City journalism scene lost another great one this week — former city editor and weekend editor Bob Lynn.

Lynn, renowned and most admired, perhaps, for his refusal to bow and scrape to upper management, died of a massive heart attack Tuesday outside the Lowe’s store in Roeland Park.

Lynn, 71, is the fourth titan from The Star’s heyday to die in the last 15 months.

First it was reporter Rick Alm in February 2017. Then it was Laura Hockaday, former society editor, last October, and Pulitzer Prize-winning reporter Mike McGraw just four months ago.

Because he spent his career as an editor, Bob Lynn was not as well known to the public.

He was every bit as legendary in The Star’s newsroom, though.

Reporters loved working with him because of his easygoing disposition, lack of ego and the fact that he treated everyone equally, disbursing advice clearly and concisely. Upper managers respected him because they knew he was extremely competent and pulled not punches.

The highest position he attained was city editor of The Kansas City Times, the morning Kansas City Star, until it merged with The Star in 1990. He then worked as an editor on the State Desk and later became the weekend editor.

At: https://jimmycsays.com/2018/05/04/bob-lynn-an-editor-who-brooked-no-nonsense-and-inspired-many-reporters/

Former Kansas City Star editor Bob Lynn and his mother. As city editor from 1990 to 2008, he helped lead the Kansas City Times through its heyday of uncovering corruption in police and government.

Argentina's Macri appoints loyalist to head media regulator

A shakeup in Argentina's federal media regulator, ENACOM, has resulted in the appointment of a presidential loyalist as its new director, former Congresswoman Silvana Giudici.

Giudici, 53, is a prominent figure in President Mauricio Macri's right-wing party, PRO. She was named to the agency's board of directors by Macri in 2016.

Her appointment has been denounced by the opposition as incompatible with the office, given Giudici's involvement in a Macri campaign finance scandal as well as her close relationship to the Clarín Group, Argentina's largest media conglomerate.

Prior to Macri's election as president in 2015, Giudici became known for her frequent appearances as a guest on TN, the Clarín Group's cable news outlet.

She endeared herself to the powerful media group as a vocal opponent of the Audiovisual Communication Services Law, which limited media monopolies and was supported by the International Federation of Journalists, the Carter Center, and the UN, among others.

Passed by Congress and upheld by the Argentine Supreme Court, Macri nevertheless rescinded the law by decree within days of taking office.

In the tank

Her political star faded, however, after her involvement in the SUMA foundation scandal.

SUMA, a right-wing think tank established to promote Macri's candidacy, was raided by prosecutors in 2016 on charges that up to 4 million pesos ($450,000 at the time) were laundered through the non-profit to Macri's 2015 campaign.

Giudici served as treasurer of the SUMA Foundation during the campaign.

Radio host Reynaldo Sietecase compared her appointment to that of Laura Alonso's as head of the Anti-Corruption Office. Alonso, an outspoken former PRO congresswoman and vulture fund lobbyist, was installed despite her being from Macri's same party and lacking a law degree - both of which violate the office's prerequisites.

Alonso has consistently refused to investigate mounting allegations of tax evasion and self-dealing against Macri and other members of his administration - including Giudici.

At: https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=https%3A%2F%2Fwww.pagina12.com.ar%2F112510-silvana-giudici-reemplazara-a-de-godoy-en-el-enacom&edit-text=

Macri's new media regulator, Silvana Giudici, during one of her frequent appearances as a commentator for the Clarín Group - the very group she will now be regulating.

Argentina's great reformer is losing believers with peso cratering

President Mauricio Macri of Argentina, who rose to power with bold promises to revamp the nation’s economy, is starting to try the patience of global investors.

For the second time in less than a week, the central bank on Thursday moved to shore up the peso, to little effect.

The currency weakened 7.8% against the dollar to 23 pesos - its worst day since Macri's shock devaluation in late 2015 - even as the central bank raised its benchmark interest rate by 300 basis points to 33.25%, the highest in the world. This was on top of Friday’s 3% increase.

Behind the weakness is growing concern that both inflation (26%) and government spending are spiraling dangerously high.

A record 225 billion-peso ($24 billion) budget deficit Macri inherited has ballooned within two years to 569 billion pesos ($34 billion), as steep corporate tax cuts took effect.

Budget deficits in the first quarter are up another 30% due to a doubling in interest payments, mostly to service high-yield LEBAC notes now being unloaded for dollars to be wired overseas - a variant of carry-trade known locally as the “financial bicycle.”

Rolling back protectionist measures has meanwhile led to a record, $8.5 billion trade deficit and a doubling in the country's historically problematic current account deficit to $30.8 billion, or 4.9% of GDP.

Currency traders have made the peso the worst performer in emerging markets so far this year as it sank 19%. The country’s overseas bonds are also among the world’s worst performers.

It’s a disappointment to many investors who saw Macri’s election in 2015 and his promises to bring predictability and lure foreign capital as a turning point.

At: https://www.bloomberg.com/news/articles/2018-05-03/argentina-s-great-reformer-is-losing-believers-as-peso-craters

Argentina's Macri promoting a municipal bicycle sharing program he enacted as mayor of Buenos Aires in 2010.

His reliance on the financial bicycle as president has been more problematic.

Deposed Brazilian leader Dilma Rousseff: "I fear for Lula's life."

Former Brazilian President Dilma Rousseff headlined a conference at the Buenos Aires International Book Fair yesterday calling for the release of jailed Brazilian leader Luiz 'Lula' da Silva.

Da Silva, 72, was jailed on April 8 on corruption charges dating from his 2003-11 tenure as President of Brazil. The sentence effectively bars the popular former labor leader from running in this year's presidential elections, which polls show he would win handily.

“I fear for Lula's life,” Rousseff added. “I fear for the food that he eats and the water he drinks, and because they have denied him medical visits.”

Rousseff noted that Brazil's current right-wing regime, mired in single-digit approval and corruption scandals of its own, needs Lula imprisoned “because they lack a candidate capable of winning” the upcoming presidential election.

She likened the move to the parliamentary coup which lead to her own impeachment in 2016.

“Like a military coup, a parliamentary coup supports economic interests, locates enemies and attacks them, while permanently reducing the power of democratic institutions,” she said.

Supporters of Lula da Silva note that no evidence has surfaced to corroborate bribery charges against him. The case was instead based on the testimony of a convicted public works contractor whose sentence was later reduced.

“In Brazil,” Rousseff said, “they used the law to violate the law.”

The event included the presentation of a collection of recent interviews of the jailed populist leader, Lula: The Truth Shall Overcome.

Calling for the release of former Brazilian President Lula da Silva are (front row):

Nobel Peace Prize laureate Adolfo Pérez Esquivel; former presidents Dilma Rousseff (Brazil), Cristina Kirchner (Argentina), and Ernesto Samper (Colombia); Estela Barnes de Carlotto of the Grandmothers of the Plaza de Mayo; and former Argentine Foreign Minister Jorge Taiana.

Spanish Basque separatist group ETA dissolves after 54 years

Source: UPI

The Spanish Basque separatist group ETA said it's dissolving after more than a half-century, during which more than 800 people died amid its campaign.

ETA, considered a terrorist organization by the European Union, sent letters to organizations in Spain's northeastern Basque region last month.

The letters, meant to show the group's decision is "definite and conclusive," said ETA will dissolve all structures and "has terminated its political initiatives." The declaration acknowledges the formal end of its mission.

A formal dissolution ceremony in the French town of Cambo-les-Bains is scheduled for this weekend.

Read more: https://www.upi.com/Top_News/World-News/2018/05/02/Spanish-Basque-separatist-group-ETA-dissolves-after-54-years/8701525278803/