Friday, July 6, 2012

The Difference Between the LIBOR "Scandal" and the Federal Reserve

The LIBOR scandal is about 16 banksters in a room not doing a very effective job of trying to screw each other.

The Federal Reserve is about the extremely schizophrenic Fed chairman, Ben Bernanke, actually manipulating, by hundreds of basis points, interest rates by printing money and halting the printing of money, thereby sending the economy on a mad rodeo ride.

The focus on the LIBOR "scandal", given what the Fed and other central banks are up to, is commentary on the cluelessness of mainstream media as to to the basics of how the modern day financial world is manipulated.


  1. There is a reason this is a story now, and there is a reason it is getting the traction and attention that it is. This isn't the first time bankers have pulled a fast one (dare we call this fraud?). The mortgage fraud wasn't bad enough?

    What story are they attempting to draw our gaze away from? Which is the right walnut shell to watch?

    There is no doubt that manipulations by central banks are infinitely greater than anything done by Barclays or this group of 16. But this was also true a week ago, as it was true in 2008.

    Why the diversion now?

  2. Robert

    I tend to the view that LIBOR-rigging is fraud and that, generally, banking stables are in need of a good clean. However, everyone here in the UK is in full-on "hang Bob Diamond" mode while, two days ago, the Bank of England printed up another £50billion, in order to manipulate interest rates, and it passed almost without comment outside of the financial pages.

    It's a funny old world.

  3. The longer the world's central banks keep refusing to acknowledge that Keynesianism in the world economics or anywhere else that for that matter, is the equivalent of a group of men and a few women peeing in the wind, with useless expectation, that they will not get wet! They will have to accept the reality, that money must have "real value", whether that value be based on hard assets such as gold, silver,precious metals, diamonds, land, commodities, etc. If they on the other hand, want to continue with their casinos with play money and their giant egos, Fantasy land or Ponziville can only continue until the new patsies realize they are not going to get paid! House of cards falls down! Game over!

  4. LIBOR shows how screwed up everything really is. The biggest banks in the world have to borrow currency. Even they don't have any real reserves.