THE LATEST BIGGEST FINANCIAL SCANDAL…
My thanks to Mr. V.T. for sharing this, and you may not have heard of it, and if you haven't heard of it, I don't blame you. It seems we've been subjected to a "latest biggest financial scandal" about every six months. First Greece and "austerity"; then Italy, then Spain. Before that we had the derivatives and credit default swap scandal. The mortgage bubble and fraud, the news that big banks were - surprise surprise! - basically crooks and robo-signing mortgages. There was massive inducement to fraud in the system (think of that in respect to the Obamacare fiasco). Then came the bailouts and the "too big to jail"...er... I mean, "too big to fail" banks and their banksters. Then LIBOR... then the highly suspicious death of Michael Hastings, then the Edward Snowden allegations and the increasing corroboration from other sources that the NSA spying was really about finance. Granted, the socialist policies of various countries has a lot to do with the problem, the USA being the biggest example of rich hypocritical leftists in bed with rich hypocritical mercantilist crapitalists; forget about Spain or Italy. They've merely been following our example.
Then came the calls for gold repatriation. The late Mr. Hugo Chavez of Venezuela - himself no foreigner to expropriation - asked for his gold back. That began a "repatriation" run, as he was quickly followed by Ecuador, and a variety of other countries, most importantly Germany, which, for the second time in a century, discovered that the US New York Federal Reserve had apparently lost its gold (the first time was in 1928, during a visit of Reichsbank President Hjalmar Schacht).
But wait! There's more!
Chase Isn't the Only Bank in Trouble
Now I hope you caught the really interesting thing in this article, and it isn't about the sudden spikes before and after the WM/Reuters announcements are made in London. The intriguing thing here to me is this:
"Perhaps most importantly, however, there's a major drama brewing over legal case in London tied to the Libor scandal.
"Guardian Care Homes, a British "residential home care operator," is suing the British bank Barclays for over $100 million for allegedly selling the company interest rate swaps based on Libor, which numerous companies have now admitted to manipulating, in a series of high-profile settlements. The theory of the case is that if Libor was not a real number, and was being manipulated for years as numerous companies have admitted, then the Libor-based swaps banks sold to companies like Guardian Care are inherently unenforceable.
"A ruling against the banks in this case, which goes to trial in April of next year in England, could have serious international ramifications. Suddenly, cities like Philadelphia and Houston, or financial companies like Charles Schwab, or a gazillion other buyers of Libor-based financial products might be able to walk away from their Libor-based contracts. Basically, every customer who's ever been sold a rotten swap product by a major financial company might now be able to get up from the table, extend two middle fingers squarely in the direction of Wall Street, and simply walk away from the deals.
"Nobody is mincing words about what that might mean globally. From a Reuters article on the Guardian Care case:
"'"To unwind all Libor-linked derivative contracts would be financial Armageddon," said Abhishek Sachdev, managing director of Vedanta Hedging, which advises companies on interest rate hedging products.
"Concern over all of this grew even hotter last week with the latest Libor settlement, in which yet another major bank, the Dutch powerhouse Rabobank, got caught monkeying with the London rate."
Now, let's put this into perspective by connecting the LIBOR rate to all those credit-default swaps and derivatives that we heard about in connection to the "too big to jail" bailouts, for the thing to be noted here is that at some level, all derivatives were tied more or less implicitly to the LIBOR rates, since they play such a major role in international transaction, and since many derivatives "products" bundle all sorts of swaps - domestic and international - together. Nor is this just speculation, for it is explicitly mentioned in the article:
"Here at home, virtually simultaneous to the Rabobank settlement, Fannie Mae filed a suit against nine banks – including Barclays Plc (BARC), UBS AG (UBSN), Royal Bank of Scotland Plc, Deutsche Bank AG, Credit Suisse Group AG, Bank of America, Citigroup and JPMorgan – for manipulating Libor, claiming that the mortgage-financing behemoth lost over $800 million due to manipulation of the benchmark rate by the banks."
Note also the role of prime international banks like JP Morgan:
"And virtually simultaneous to that, JP Morgan Chase disclosed that it is currently the target of no fewer than eight federal investigations, for activities ranging from possible bribery of foreign officials in Asia to allegations of improper mortgage-bond sales to . . . the Libor mess. "The scope and breadth of risky practices at JPMorgan are mind-boggling," Mark Williams, a former Federal Reserve bank examiner, toldBloomberg."
(Now, as an aside to those who like dot-connecting and who've been following the much bigger story: remember that the sprawling web of JP Morgan Chase also made an appearance in the metal-bands around $100,000 Wilson Gold certificates in the Spanish Bearer Bond scandal. See my Covert Wars and Breakaway Civilizations, pp. 49-50, making it a possibility that this is one of the institutions perhaps participating in the hidden system of finance that I have hypothesized was put into place before, and immediately after, World War Two... and it makes that little alleged check-cashing episode with Martin Bormann even more interesting).
But the scale of what is involved here is what Rolling Stone gets correct, and it's the sheer scale of the fraud that has been perpetrated that is rocking the trust in western financial institutions and the "too big to jail" banksters to their very foundations:
"One gets the feeling that governments in all the major Western democracies would like to sweep these manipulation scandals under the rug. The only problem is that the scale of the misdeeds in these various markets is so enormous that even the most half-assed attempt at regulation will cause a million-car pileup.
"There's simply no way to do a damage calculation that won't wipe out the entire finance sector when you're talking about pervasive, ongoing manipulation of $5-trillion-a-day markets. That's the problem – there's no way to do a slap on the wrist in these cases. If they're guilty, they're done."
However, we can't leave it there. The real importance of all of this - all of it, from hidden systems of finance, bearer bonds scandals, Martin Bormann checks being cashed on big name western banks after the war and over his own signature, of LIBOR and bailouts, of currency manipulations, credit default swaps, robo-signed mortgage fraud, is this:
"It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national autodetemination practiced in past centuries." (David Rockefeller, June 1991 Bilderberg meeting, Baden, Germany).
Uhm... Mr. Rockefailure, sir....uhm... it sort of looks like a lot of the data is in, and your bank isn't doing so well, and is implicated in a whole lot of fraud... so might the same be said of your ideas?
See you on the flip side.
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Here is a post discussing Dr. Farrell’s research. Interesting, but quite long.
Watch out! The ‘little people’ are being prepared to get hosed big time. Can’t wait for the introduction of the balmy unction, already waiting in the wings, prepared to wash away all of those manufactured fears.
Presenting the two fingered salute, let us all excuse ourselves from their duplicitous table of debauchery.
BitCoin anyone? What’s in your wallet!?
To big to jail, but not to big to feed to the lions. In my forthcoming book “Talking Points For An American Demagogue” I suggest alleviating the fury of the masses, after the economic calamity which befalls them when the bankster system is dismantled, would be to entertain these same masses by feeding the banksters to hungry lions during NFL halftime shows. When we run out of banksters and to ensure that other “undesirables” aren’t cast into the coliseum lion pit and Roman style entertainment does not become a mainstay of American culture, I suggest in my book the immediate roll out of the introversive GMO marijuana to safeguard American cities from being razed to the ground and an apocalyptic crime wave from overtaking the nation.
My other suggestion would be to put all the banksters on the miles wide island of post Fukishima garbage floating in the Pacific Ocean and allow them to fend for themselves… all the while filming their escapades for a reality show to be broadcast on prime time tv.
If the banksters can figure out some way to take over the world from their garbage island, my hats off to them and their rat cunning/ indomitable spirit. Even if they set up casinos and get tourists to visit there, I would be impressed by these rascally banksters and have to admire their chutzpah.
I appologise profusely for being profoundly off-topic but if anyone is interested:
looks like Dr. Farrell continues to get more and more traction- I’m slightly half-way through “Financial Vipers” myself and it’s a “whopper doozie”-
please stay well Dr. Farrell and all-
Larry in Germany
These psycho’s have really painted themselves into a corner with no exit. Hoping to survive the fall of their house of cards but then when have idiots had any brains to speak of. Just hope I am still alive when it all blows up in their faces.
What’s the world coming to when capitalism can no longer buy & sell justice? So, because of the coming enginerred global collapse, do they have the peasants come begging to their one-world financialized-masters, to teturn to a back-to-the-future globalized electronic-feudal system of fed & housed slaves/serfs?
Probably nobody knows the number of loan contracts all over the world containing a Libor clause. It looks like the consequences could go far beyond any attempts at “papering over the cracks” so that the banksters, thanks to the “free” money, can save their skins (oh, and don’t forget all those lawyers’ fees…)
Bankers are arroant criminal socio- and psychopaths and no one can unwind the Strangelovian Doomsday debt bomb they’ve strapped themselves to, just like moronic characters try to escape punishment by holding themselves hostage in Mel Books comedies.
They make so much money just by breathing (and thieving) for so long now that they’ve long since convinced themselves they are the masters of the universe. Well, they’re nothing but financial parasites that we’re told even Jesus flailed in fury. So, let them keep their Doomsday machine. It’s all fictive compound-interest debt anyway.
A debt jubilee is looking more and more viable every day. Mass arrests on Wall Street would be a smart move, too. On the same day–to reassure the real economy and make it a true bank holiday.
I agree but what fills the vacuum created when they are ousted? Everything is criminal and corrupted, those that seek power are the most corrupted….look what happened to Caesar, they knifed him in the back after he won them an empire. Mark Anthony ended up falling on his sword trying to fill Caesars shoes.
Except Jesus, his only act of violence was against the “shape shifting” money changers…..they say spiritual healing was lost when materialism took over.
“Caesar’s Messiah – The Roman Conspiracy to Invent Jesus”, Atwill outlines the series of events in Jesus’ ministry that are parallels with the events of the battle campaign of Titus Flavius as recorded by Josephus Flavius…
Atwill contends these correlations, and talks about linguistic typology and the reasons why the imperial Cult of Rome, with the Flavians at the center, manufactured the New Testament and the story of Jesus for their own benefit. It was a Roman comedy, and a slap in the face to that warring upstart that dared break away from Rome’s prison of Nations.
The etymology of the word “Gospel” indicates it originally meant: Good news from the battlefield – in this case,Titus’ battlefield.
LISTEN TO INTERVIEW WITH ATWILL:
Although, I do agree that the cage of temporal materialism; where ego reigns supreme, acts as a blinder!
Ego does not wish its throne to be challenged,
Plain old lying about the state of the books has more to do with the deficit in Greece than “socialist policies”?
Does Canada with a strong welfare state run huge debts? No. Of course Canada all severely regulates ibanking. Wait, that would mean there’s probably a correlation between deregulation of ibanking and fraud+economic troubles.
Fraud and Obamacare, sure it’s a fraudulent give away to phrama and for profit medical insurance, oh you meant another form of fraud, the one pushed by FoxNews.
I call telling people you can keep your doctor, and then not being able to do so, or your insurance policy, and not being able to do so, bait and switch, or inducement. Regardless of where it comes from.
I think that’s a different definition of “fraud”. That’s just plain old lying–and yet Obama did that. He also lied about there being a public option to keep the private insurers honest.
“fraud” is more likely selling worthless insurance–say credit default swaps.
The credit default swaps are SO huge and the whole system by which they were engineered… I don’t even know if “fraud” or “inducement to fraud” are even adequate enough to describe it. What would one call it? Insane hyper-fraud? Megalofraud? Maniafraud?
It’s that one is fraud (mega) and one is lying. Fraud always involves lies, whereas lying doesn’t always involve fraud. And Obama lied, by neglecting that part about not changing personal policies after mid2010 being the only way to keep that personal policy. And again Obama lied about there being a public option to keep the insurance companies honest. (I happen to have listened to that part of the Portsmouth, NH (Aug 2009) speech just last week so I’m quite sure about both lies.)
Inmates Running The Asylum?
“Systemic criminality” seems to fit the bill.
i think the gig is up. now cui bono? great blog.