muses of the moment

July 3, 2012

More banking scandals…LIBOR

The Western banks will be taken down, not by regulators or government, but by class action lawsuits for the next 30 years.

The LIBOR Rate scandal is one of the biggest, effecting basically the financial system world-wide. Practically every public and private contract is based off the LIBOR rate. Businesses, banks, and investors were cheated out of a huge amount of money. HUGE.

This makes MF Global look like Corzine swiped a tip from a sidewalk cafe table when no one was looking.

Click here.

This should be interesting to watch over the coming years.

And just got more interesting, 20 more banks around the globe in on the LIBOR scam. Click here. And Barclays claim that officials in the British government endorsed this crime. And that makes the whole thing better….how?

gg predicts China will create an integrated interest rate system for the entire Eastern portion of the globe (to go with their reserve fund, global trading currency, SWIFT, and gold exchange) in three, two, one…..

China doesn’t have to do anything. Just create alternative global financial systems, and eventually, every global investor will beat a path to their door. Not because it is so much better, but because it is predictable and the only other games in town (New York and London) are so blatantly stupid and greedy. It is not rocket-science, the sun is setting on the West.

Click here for Jesse’s comments on the recent brief discussion of rigged markets on CNBC…..Whalen’s conclusion: everybody knows markets are rigged. They do? And we wonder why money is literally fleeing the West? Congratulations, the financial TV talking heads have moved with lighting speed from denial to acceptance. Unbelievable. Who even listens to these people anymore?

More capital controls will keep money from flying to Asia. Better move it now.

Side musing: gg also predicts that those with smaller amounts of money will invest locally (slow money style), where they can keep a direct eye on their money. groovygirl has not taken this leap yet, but is studying it carefully. It is one of the possibilities of investment for long-term or short-term investments after selling gold/silver.


  1. Please keep us up to date on your investigations into “slow money” investing!

    Comment by MontanaSacra — July 3, 2012 @ 1:22 am

  2. I don’t read Whalen’s comments in the video as collusion or even indifference. Whalen, like only a small handful of others, supports and trashes the industry almost equally, and this can be disconcerting for those that feel there’s simply nothing left to champion in an industry that’s eaten itself alive. And so Whalen can be hard to stomach I imagine when he appears so offish with comments like “it’s been like this for centuries” and the like. Instead of getting all Max Keiser about it, I find he deals with what he can deal with, knowing full well that stuff like the lie-bor rate issue is imbedded into the system and thus it becomes a “so what can you do?” kinda thing. What one can only hope for is that he’s alluded to it in his past writings, otherwise his assumption that everyone knows this stuff would definitely be seen as a kind of protection.

    I think it’s important to remember that Whalen and his biggest cheerleader, Rickards, are working together now, which means that Whalen is all too familiar with Rickards’ stance on gold and financial fraud and currency manipulation. It’s also important to consider how Whalen is a regular contributed to Zero hedge, still, and that Zero Hedge tends to show full support for Whalen, whereas ZH and Rickards are having a gentlemen’s war ever since Rickards had been showing himself to be more right about Europe than ZH (and by a rather wide margin). I’ve yet to find Rickards wrong about almost anything in the last 5 years, even on issues like Iran.

    Comment by Jeffhalmos — July 3, 2012 @ 9:54 am

  3. Good comment. Good points.

    gg is just frustrated that Media completely skipped the anger/outrage part. groovygirl really doesn’t care who is right and wrong about Europe or timing of the next crisis (although it’s interesting to discuss). She is just looking for a little rule of law from government and support for rule of law from the media.


    Comment by totallygroovygirlfriday — July 3, 2012 @ 10:49 am

  4. Great post – thanks!

    “So to summarize: Fed manipulates capital markets, HFT manipulates bid ask spreads, “self-policing” CDS pricing market groups fudge the prices on trillions in Credit Default Swaps, bank cabals collude and manipulate short-term interest rates [LIBOR], and now banks are confirmed to have manipulated the ratings on tens of billions of bonds using monetary incentives and threats. Is there anything in this “market” that was fair over the past several decades, and was actual price discovery ever actually possible? Because by now it should be very clear going forward all the things that actually make a free and fair market are forever gone, and that without endless fraud and manipulation by all the market participants who realize that anyone defecting the ponzi group means immediate and terminal losses for all, and all those calls for an S&P 400 would actually prove to be overly optimistic.” – Tyler Durden

    Comment by sw — July 3, 2012 @ 6:42 pm

  5. GG,

    People gave up on watching the “media” some time ago. Ratings for these shows are abysmal. Nobody is watching them except for the older Boomers. Even then, those that do watch are zombies, destined for destruction.

    Comment by MikePhila — July 4, 2012 @ 9:15 am

  6. Another great link. gg is just floored by the lack of outrage.


    Comment by totallygroovygirlfriday — July 4, 2012 @ 12:03 pm

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