New Video (9.05 mins) of Stuart Wilde with Gerald Celente of the Trends Journal talking about the currency wars, and possible global wars and the price of gold. Fascinating interview.
If Readers can share this to their social sites it would help get the word out…thank you, Stuart W.
We noted Friday:
Barclays and other large banks – including Citigroup, HSBC, J.P. Morgan Chase, Lloyds, Bank of America, UBS, Royal Bank of Scotland– manipulated the world’s primary interest rate (Libor) which virtually every adjustable-rate investment globally is pegged to.
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That means they manipulated a good chunk of the world economy.
We actually understated the impact of the Libor scandal.
Specifically, more than $800 trillion dollars worth of investments are pegged to the Libor rate. As the Wall Street Journal reports today:
More than $800 trillion in securities and loans are linked to the Libor, including $350 trillion in swaps and $10 trillion in loans.
Remember, the derivatives market is approximately $1,200 trillion dollars. Interest rate derivatives comprise the lion’s share of all derivatives, and could blow up and take down the entire financial system.
The largest interest rate derivatives sellers include Barclays, Deutsche Bank, Goldman and JP Morgan … many of which are being exposed for manipulating Libor.
They have been manipulating Libor on a daily basis since 2005.
They are still part of the group of banks which sets Libor every day, and none have been criminally prosecuted.
They have received a light slap on the wrist from regulators, which – as nobel economist Joe Stiglitz points out – is just the cost of doing business when fraud is the business model.
Indeed – as Bloomberg notes – they’re probably still manipulating the rate:
The U.K. bankers and regulators charged with reviewing Libor in the wake of regulatory probes are resisting calls to overhaul the rate because structural changes risk invalidating trillions of dollars of contracts.