LIBOR - An Explanation About The $800 Trillion Scam
LIBOR stands for London Interbank Offered Rate.
Now, yes, it pertains to interbank lending rates..
But what I would like to discuss, is how US companies
and state and local governments have been scammed
Corporate Sweep accounts are overnight (generally) bets
against the difference between the Euro and the Dollar.
If an American company has some extra cash in their payroll, 401K
or pension account, they can (through the bank) bet overnight that
the dollar is going higher against the euro (other currencies too, but the
euro is the main bet)
At first, back in the early 90's, it was just big companies like GM and GE, etc,
where in the exclusive swaps club.
But as Basel and the BIS relaxed the rules, smaller and smaller banks got involved..
and smaller and smaller companies got involved, and eventually government started
using municiple bond funds and pension accounts to bet.
You see, this whole thing was creating a whole new breed of gambling addicts.
Pretty soon, CEO's were buying 3rd, 4th, and 5th vacation homes, admins were getting bonuses, employees were getting raises.
Banks loved it, because they were raking in fees, so they started borrowing more money from the central banks to make easy loans for just about anything. The money was flowing, just like the roaring 20's.
Since the LIBOR controlled the interbank loan rate, the manipulators (16 major banks) artificially ran the rate up, so they were really getting rich..The Fed loved it because they were printing money as fast as they could, and charging interest right on down the lines of banks they lend money to.
But the excessive printing was having a negative effect on the value of the dollar, and these companies and govt entities starting losing money, and the bets were getting too big to fail, and suddenly the money changers like Lehman and AIG collapsed.
It was a house of cards. Trillons of dollars were being bet overnight. The banks needes their heroine (currency). So the LIBOR manipulators suddenly dropped their rates from up around 5%, to what is now .015%. FREE MONEY!
Whew, banks breathed a sigh of relief, and the govt and media blames it on too many easy loans to poor people.
Soon we had terms like TARP, and Quantitative Easing...
While this was all going on, big banks especially in the US, where selling their gold to smaller countries who were not in the gambling ring...Tiny countries were were suddenly awash in gold.
The banks soon started selling gold they didn't even have. You see, when banks sell gold to a country, they don't even physically move the gold. It's all done on paper...
So no one really knew how much gold there was in the banks, and everyone wanted to know how much gold was under the WTC in their vaults.
They needed to get what was actually in there and move it out and make it so no one could audit their gold reserves.
God controls death. Hope He never takes it away.