Afternoon Sail Charles Steinhacker
The
manipulation of the Libor interest rate by the too-big-to-fail banks is without
doubt the greatest financial scandal in the history of the world. It has been called the "tobacco
moment" for the banking industry. Yet, no one is even talking about it
here in the United States.
Americans
don't even know what the Libor rate is nor would they care if they did. And if
they did want to find out, the compliant main stream media is guaranteed to
keep them in the dark. Let's face it, The dumbing down of the citizens of this
country guarantees that the people are far more interested in Tom Cruise's
divorce and the prospect that Katie Holmes will again be able to wear high
heels than
anything related to economics or the financial system.
The
Libor rate is the interest rate that the big banks charge each other to lend to
each other. That rate is announced once a day in London by averaging out the rates charged by
16 of the largest banks on the planet (Three are American). What makes this
interest rate the center of the financial universe is that it affects every
other interest rate on the planet. That includes literally hundreds of
trillions of dollars worth of derivatives, mortgages, credit cards,
municipalities, communities
etc. each and every day. Everyone of us is profoundly scammed when those banks
lie about what they are charging each
other in order to make obscene profits and/or to keep the public from knowing
just how fragile the house of cards really is.
So
far, Barclay's, the Royal Bank of Scotland and UBS have admitted
guilt. But in England,
unlike America
where both parties are bought and paid for by the banking cartel, the Labor
party is aggressively investigating this remarkable scandal. The likely outcome
will be that all 16 banks were involved. Remember,every
interest rate comes back to Libor. And as long as the banking mafia's business
model, which is to do as they please to enrich themselves while producing
nothing, is allowed to exist, the global financial system will rest on a bed of
quicksand.
July 14, 2012
