Grant Williams (via Zero Hedge) explains why it would be impossible for Barclay's to rig the LIBOR rate on its own.
Williams then goes on to indicate he believes that 13 banks were actually involved in this great manipulation. It's possible the bankster did get together for such a game, but highly unlikely in my book. That said, I must continue to emphasize that no great distortions in global market interest rates could have occurred without further distortions in the supply and demand for loans. The system would have been insanely backed up on either the supply or demand side. Further, all this focus on LIBOR causes most to take the eye of the real manipulators, the central banks. As Daily Bell puts it:Attempts to manipulate free markets invariably end badly - after all, they are, supposedly, by their very nature, free....Over the past few weeks, the exposure of the Libor-rigging scandal has monopolized the headlines of the financial press and inveigled its way onto the front pages of every major news publication in the world through the sheer size and scale of the story.Something as big as this just CAN’T be hidden from the public.Only... it can.It has been. It no doubt still is to a certain extent. I’m not going to go through all of the events of the past few weeks as you are no doubt familiar with them, but [simply understanding how LIBOR works makes for a simple conclusion].I’m afraid it’s rather obvious. Given that almost half the reported inputs that help establish the Libor rate are discarded immediately, Barclays simply CANNOT have manipulated the Libor rate alone. Period.What’s more, to effectively ensure the rate is set at the price required, you’d need to not only establish the highest and lowest 25% of prices, but then ensure the remaining 50% average out to the required rate and, based on the fact that there are 16 banks that submit rates, that would mean about 13 of the 16 involved would need to be complicit.
The article we have listed last is of special import because the subject was a poll that asked people whether bankers should be prosecuted for "crimes" and came out just as the LIBOR "scandal" was breaking.
Now, some may find this to be a beneficial coincidence but we will say with considerable certitude: This Is All a Big Scam.
We're seeing the formulation of a full-blown dominant social theme before our aching eyes. It doesn't make any sense otherwise. It's all just promotional propaganda.
The idea is that top British banks conspired together to "rig" the price of LIBOR. But the entire financial industry is rigged from beginning to end, starting with the price and volume of money.
Central banking is the predominant theme of the monetary world – of the global economy, actually. All around the world, small groups of men under the supervision of the BIS meet regularly to determine (or "fix") the price and volume of money.
Yet we are to believe that the paltry price shaving performed by LIBOR banks is an expression of ultimate criminality while central bank price-fixing on a day-to-day and sometimes hour-to-hour basis is beneficial?
(ht John Frahm)