Editor’s Note – Is there anything left in the world that the common man or woman can trust? Is everything subject to question now?
It seems that way as the world’s financial markets are supported by fraud, held together by ever weakening band-aids and bubble-gum, and the house of cards is about to tumble down. But people like Timothy Geithner, Ben Bernanke, Paul Tucker, and Bob Diamond have already secured their nests, but now the lid is off – take a peek at where it all went!
By Doug Hagmann – Canada Free Press
The chances are good that if you ask someone on the street what LIBOR is, they would guess it to be an obscure country in Africa. The reality, of course, is that LIBOR is something that affects everyone, to the extent that it “sets” the interest rate you’ll be paying for your mortgage, car loan, credit cards, and the rate of return you’ll receive on your pension, 401K, savings and all financial instruments. In total, it establishes the pricing of financial products across the world to the tune of up to $800 trillion. Trillion.
We are now finding out that the entire system has been rigged, enriching the “elect” and financially looting the rest. If you are reading this, you have been robbed, although the corporate media remains silent about who robbed you, how it was done, and which government and non-government officials were complicit and benefited.
Why? Perhaps the most compelling reason is that when the “average” person learns the depths at which corruption exists between the various banks, governments and government officials, there will be a revolution like the world has never seen. Additionally, they too, along with many elected and appointed officials, have aided and abetted the fraud. Yes, it’s that bad, and it’s about to break wide open.
LIBOR is an acronym for the London Interbank Offered Rate, which is the average interest rate set by a group of international banks and charged by and between banks. Sixteen-(16) banks set the LIBOR rate: Bank of America, Bank of Tokyo-Mitsubishi, Barclays Bank, Citibank, Credit Suisse, Deutsche Bank, HBOS, HSBC, JP Morgan Chase, Lloyds TSB Bank, Rabobank, Royal Bank of Canada, Norinchukin Bank, Royal Bank of Scotland, UBS, and West LB.
LIBOR sets short and long term interest rates for 10 currencies and for 15 different time spans, ranging from one day to one year. The rate is calculated daily by a company named Thomas Reuters, which is the parent company of Reuters News, and is overseen by the British Banking Association (BBA).
Although based in London, the LIBOR rate impacts all financial products across the globe. In the U.S., for example, there are two “numbers” that play a critical role in our economy: LIBOR and the prime rate. The LIBOR rate particularly affects sub-prime loan rates. Investigation in 2008 established that about 60 percent of prime adjustable rate mortgages and almost all subprime mortgages were tied to LIBOR.
Through the interest rate process, LIBOR affects investments as well. The daily LIBOR rate is set daily by member banks, and then reported to the British Banking Association (BBA), a trade association of banks and financial services companies. It is then made public to the world. Investors make decisions based on LIBOR rates, whether the investment is short or long term.
The CRIME in simple terms
Simply stated, a group of about 20 international banks, including many associated with setting the LIBOR rate and a number of U.S. banks have been fraudulently and systematically rigging global interest rates for the past decade, if not longer.
The fraud was “discovered” when Barclay’s Bank was found to have been involved in submitting false numbers to LIBOR to enhance their trading position. The “scandal” as it is called in the media, instead of the wholesale fraud and robbery that it is, now involves numerous other banks who reportedly acted in collusion to fix global interest rates.
Manipulating the rate (suppressing the rate, or conversely, inflating the rate) is done to make certain banks’ balance sheets appear healthier than they are, thus allowing the CEOs and heads of such banks to rake in huge bonuses, while essentially robbing real money from real investors. They “rig” the numbers to benefit the member banks and those who run and oversee them, all under the alleged oversight of regulators and government (and non-government) entities.
The problem, however, is that the majority of regulators are tied to the very banks that they oversee. Additionally, as in the U.S., there is a criminally incestuous relationship between the perpetrators, the Federal Reserve, the Secretary of the Treasury, and government officials and officials appointed by the government. The entire financial system is rigged by a group of central banks, bankers, regulators, and elected government officials.
One has to look no further than Jon Corzine of MF Global, Henry Paulson, Ben Bernanke, and others to get an idea of such examples. The LIBOR fraud, however, might be the tripwire that exposes the massive scale of the financial raping of the people.
How the LIBOR rigging affects you
Many cities and municipalities have made investments or loans based on the LIBOR rate. For example, the City of Baltimore, Maryland and New Britain Firefighters’ Benefit Fund recently filed a complaint against Citigroup Inc., Credit Suisse AG, Bank of America Corp. and more than a dozen other banks, claiming that they “artificially suppressed” the LIBOR rate, causing them substantial financial loss.
Nearly every city, town and municipality in the U.S. will be victimized by this fraud of epic proportions. Invested in the stock market? That is a house of cards, with its base partly propped up based on LIBOR. Despite this, few are talking about it, and those in the corporate media are downplaying the severity and scope of this financial terrorist attack by the global banks.
With regard to the aforementioned scandal involving Barclay’s Bank, that’s just the beginning. Barclay’s CEO Bob Diamond resigned last week and the bank was fined a mere $453 million for its role in the scam. Other banks are being “investigated,” and it appears that some perpetrators are running scared. Some are reportedly cooperating with investigators to avoid taking the ultimate fall for what promises to be the mother of all frauds – a completely rigged, compromised and totally unsustainable global financial system that affects everyone.
Soon, the media will be unable to maintain their silence as the global financial Ponzi scheme unravels and as we predict, victims will take to the streets. This will happen when you suddenly find out your money is worthless, the entirety of our economy and our debt is a fraudulent by-product of financial terrorists of the megabanks and the carnival barkers on Wall Street are mere shills for the global financial oligarchy. Except for a few, the very people who created the financial crisis remain in their positions or have been elevated, and continue to have authority over the global financial realm.
For now. Until the masses awaken