LIBOR, Lies and Derivatives


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    Three weeks, ago, I wrote LIBOR was a criminal conspiracy from the start. An avalanche of articles have been written on LIBOR since, and I think an up
    [See the full post at: LIBOR, Lies and Derivatives]


    See also

    Saving our societies doesn’t necessarily require saving our economies. In other words, we don’t need to play the rigged game (“the economy”) in order to live, not even–and most significantly–at the species level. The use of money leverages the impact of lies (among other things).

    John Day

    Financial Plan B will have to be on a much smaller scale.
    This complex financial system will collapse to the lowest level of complexity which is inherently stable.
    That won’t be global, and it won’t be homogenous.
    Whether you can find yourself in a larger and more stable grain of order, or not, depends on a lot of decisions you have already made.
    You have a few left, perhaps.
    I hope I do…


    The LIBOR issue is just another nail in the ‘deflation’ coffin. Not just the interest rate mechanism, but the entire system is fraudulent to the core. Even the sheeple that don’t know what a derivative is understand that as long as massive ‘too big to fail’ banks are creating money out of thin air, the fact that they are skimming even more by fixing rates is a yawner.

    I’m not sure when the inflection point was reached, but perhaps some arithmetic average date corresponding to the tops of Nasdaq tech bubble, the housing bubble, and the end of cheap oil (2005). They can still engineer a soft landing, but that would require a massive reallocation of resources away from the military industrial complex to other, wealth building areas. Hard to see this happening though, so a hyper inflationary collapse would appear to be imminent.

    Jimmy Bumble B

    If you really knew how it works, then why would they let you talk?
    You’re talking, so you must not really know.


    What more could I add to Jimmy BB’s comment, other than, when this website goes dark, the nerve will have been hit.


    I doubt that, ProfLock. Dozens of writers predicted the housing bubble deflation, with many nailing every detail in advance.

    My company’s sales to Europe haven’t dropped off one iota in the last year or two. Anecdotal, yes? But I think it is pretty obvious what is going on, don’t you think, lol?


    Well, pipefit, there were also a freight car load of prognosticators who predicted financial Armageddon upon the subprime meltdown. And here we are at Dow 13,000, full restaurants, the heaviest traffic I’ve seen in years (at least here in the West), none of my friends or family are out of work, and the republicans tell us we’re in a depression, while the dems say everything is clover. Guess we won’t know what is REALLY going down here, for several decades, after it’s all declassified. To Wit;

    Who’d a thunk it back in ’71?

    The above considered, I’m no longer a participant in these insane “markets”, and am waiting patiently for the next set of meticulously engineered revelations.


    This my first Great Depression. It’s probably yours too. So things aren’t precisely as I would have imagined, based on what I’ve seen in photos of the 1930s.

    I just came back from Sydney Australia. Now THAT city is booming. No for-lease signs anywhere. Prices sky high. A permanent party-on atmosphere. Incredible infrastructure. Line-ups at the movies going out the door just like back when I was a kid. And yet…here is Australia’s PMI (dark red is indicative of serious contraction).

    Something doesn’t add up on the surface–clearly a modern economy is incredibly complex and weakness doesn’t show up everywhere at once. Conclusion: this collapse is deceptive. Be warned.



    So, where is the scandal? Both practices – manipulating LIBOR rates and transferring money to tax havens – are absolutely normal practices in a capitalist world-economy. The object of capitalism is after all the accumulation of capital – the more the better. A capitalist who doesn’t maximize revenue, one way or the other, will sooner or later be eliminated from the game.

    The role of the states has never been to control or limit these practices, but to wink at them for as long as they can. Every once in a while, the practices – of the capitalists and of the states – gets momentarily exposed. A few people go to jail, or are forced to return the technically illegal profits. And politicians talk of reform – seeking to adopt with great fanfare the lowest level of “reform” they can get away with.

    But this is not a scandal, because what is called “scandal” is in fact the heart of the system. Will this ever change? Yes, of course. One day the system will be no more. Of course that opens another question. Will the successor system be better? It’s possible, but far from certain.

    In the meantime, to call the LIBOR manipulations a scandal is to draw our attention away from the fact that it is simply one more normal way of accumulating capital. In 1992, James Carville, campaign strategist for Bill Clinton, then running for U.S. president, famously said, “It’s the economy, stupid.” Faced with the so-called scandals, we ought to be saying, “It’s the system, stupid.”

    Copyright by Immanuel Wallerstein, distributed by Agence Global. For rights and permissions, including

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