LIBOR: The Sad Reality Of The Situation.

Posted February 21, 2014

by Jerry Alatalo

“A power has risen up in the government greater than the people themselves, consisting of many, and various, and powerful interests, combined into one mass, and held together by the cohesive power of the vast surplus in the banks.”

– John C. Calhoun (1782-1850)

blogger3-1Recent years, in particular the years since the global financial crisis of 2007-8, have seen a number of highly publicized “scandals” coming out the world’s financial services/banking industry. The scandal surrounding collusion of the world’s largest banking corporations to rig the London Interbank Offering Rate (LIBOR) has been described by many as the largest banking scandal in history.

LIBOR is directly related to the interest rates all people get charged for loans from banks for homes, autos, credit card charges, college, business startups, and virtually all forms of borrowing. Basically, those whose input determines LIBOR have been manipulating the rate since LIBOR began in the 1980’s. Rather than an anomalous, first time deliberate manipulation of LIBOR, the recent scandal only publicized a systemic, continuing fraud which has become institutionalized.

The LIBOR scandal is revelatory in the sense that it unveils exactly how much power and wealth has become concentrated through history. It is important to focus on the fact that LIBOR is manipulated not by regulatory institutions or banks but by the wealthiest people on Earth. Many people may have heard of LIBOR and have a hard time connecting the scandal to real people, as opposed to a difficult-to-understand financial framework which has been in place for hundreds of years.

The largest financial institutions in the world, including the Federal Reserve in America and the Bank of England, have been well aware of LIBOR manipulations since the 1980’s creation of LIBOR. The Federal Reserve, Bank of England, Barclay’s, and the so-called “too-big-to-fail” bank corporations are all privately owned and under the control of major shareholders and boards of directors. The financial power that has been garnered by these shareholders through the decades has grown to such a monumental level that their agendas, even though achieving those agendas include fraudulent manipulation of LIBOR, have become so powerful that nobody seems able to stop actions which favor the wealthiest on Earth at the expense of most regular citizens.

At the top of the international banking pyramid reside the “ultra-elite” class of the human race, quite simply the wealthiest people on Earth. The recent LIBOR scandal reveals one of the most essential tools used by the “ultra-elite” to intensify their concentration of wealth and accumulation. LIBOR represents one aspect of a giant corrupt, bankrupt system whose only goal is the transfer of wealth from ordinary citizens to the bankster class. As one man featured in the following video says, “that is the sad reality of the situation”.

Former United States Congressman and candidate for President Dennis Kucinich says in the video, “where did the Federal Reserve get 7.7 trillion dollars to bail out the banks? They created it out of nothing.” It is worthy to note that while a member of Congress Mr. Kucinich tried to pass a bill that would have abolished the Federal Reserve System in favor of a publicly-owned, government-run central banking institution. His words “they created it out of nothing” deserve further examination.

In the simplest of terms, when one looks at the world’s international monetary systems as they now operate, there is a group of “ultra-elite” people who have positioned themselves in a place where virtually infinite numbers of dollars are created “out of nothing” (the more popular phrase is “out of thin air”), loan that money out to the average people with a few keystrokes on a computer screen, and then create profits from money that did not exist before loaning it.

One can imagine a scenario where a relative, friend, or neighbor comes to you and asks for, say.. $250,000 to purchase a home. You don’t have the $250,000 so you type up a “mortgage” contract on your laptop, enter the transaction in your books, and hand a piece of paper reading “pay to the order of my friend” in the amount of $250,000 to your “customer”. Unfortunately, your friend runs into some financial difficulty and cannot meet the terms of your contract. You foreclose and.. voilà! .. you now own a $250,000 home.

Because you entered some numbers on a computer screen.

If you run the Federal Reserve the piece of paper reading “pay to the order of my friend” (with quantitative easing this means banking friends who have become stuck with toxic mortgage-backed securities) has amounts with a few more zeroes in the figure – instead of $250,000 the amounts are more like $250 billion. Out of thin air, out of nothing. Then your friends can buyback their corporation’s stocks, use the funds for more risky, speculative transactions like those that caused the 2007-8 crisis, invest in real estate and foreclosed homes, ignore loaning to job creating businesses and startups, and go back to the same “boom and bust” economics as usual.

The immense power derived by those in control of the world’s monetary systems – namely the ultra-wealthiest people on Earth – is analogous to the giant in a famous children’s fairy tale. This is the giant that, when all the little people joined to create a power to bring that giant down, was eventually tied down to the ground and subdued. It is a very simple analogy that fits.

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This video was created by and thanks go to Sergiy Beloy @ YouTube. Although it is not a “slick” production, the goal Mr. Beloy tried to reach – a wide awareness of the LIBOR scandal, through inclusion of varied reporting of views and opinions – was successfully attained. One views his video and comes out on the other side with a good grasp of the massively important issues surrounding the LIBOR scandal.

Think of Mr. Beloy as one of billions of “little people” with a length of rope, ready to help humanity tie down the “giant”.

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Public Banking: What Every American Needs To Know.

Posted January 19, 2014

by Jerry Alatalo

ripple33“The real menace of our republic is this invisible government which like a giant octopus sprawls its slimy length over city, state, and nation. Like the octopus of real life, it operates under cover of a self-created system… At the head of this octopus are the Rockefeller Standard Oil interests and a small group of banking houses generally referred to as international bankers. The little coterie of powerful international bankers virtually runs the United States government for their own selfish purposes. They practically control both political parties, write political platforms, make catspaws of party leaders, use the leading men of private organizations and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business. These international bankers and Rockefeller Standard Oil control the majority of newspapers and magazines in this country. They use the columns of these papers to club into submission or drive out of public office officials who refuse to do the bidding of the powerful corrupt clique which comprise the invisible government.”

– New York City Mayor John F. Hylan (1868-1936)

Readers of the blog are aware of my respect for the years of research and writings of Ellen Brown. Ms. Brown is the founder and president of The Public Banking Institute (publicbankinginstitute.org), an organization advocating for establishment of public banks in all 50 states in America, and eventually a United States Public Bank to replace the privately owned Federal Reserve System. Public banking based on the success of the Bank of North Dakota’s model, has become more well-known as a real option for economic development as knowledge flows freely over the world-wide-web.

Ellen Brown has spoken to audiences in person and on radio and television for years, patiently explaining how the money system works, and how and why public banks will become an improvement over the present finance systems in counties, states, and the federal government. Her patience is beginning to pay off as public banking initiatives have begun in over 20 states in America, and people are actively looking for real alternative monetary reform to ease present dismal economic conditions.

She lives in California, where recently the state government passed a bill to study establishment of a California state-owned bank, unfortunately blocked through a veto by the governor. In the last few weeks Ellen Brown has announced she will be running for California Treasurer on the Green Party ticket, and feels there is a good chance of being victorious. In my opinion, when the men and women voters of California get an understanding of Ellen Brown’s state-owned public banking model, they will vote for her simply because it represents a superior model.

Education and understanding of public banking very important

Due to Americans’ very limited understanding of monetary systems, what we may call “money science”, Ellen Brown has spoken directly to the importance of American citizens becoming knowledgeable on the subject, and for discussion/debate to become a more common occurrence. Let me say that, when you listen to the following lecture from Ellen Brown to mostly university students, you will notice nervous laughter from members of the audience. Let me explain why I believe recognition of the reasons for this nervous laughter is very important.

The reason for audience members’ nervous laughter is because they have no other way to react to the new, quite shocking, and revelatory information that Ms. Brown is exposing them to. In a sense, there are men and women in the audience who are losing their innocence with regard to the real world of money science, with long-held views and myths surrounding the banking industry being utterly shattered. Ellen Brown is bringing to them truly mind-boggling information which has never been in the awareness of most people, and there is a natural attempt by them to relieve through laughter the stress of learning explosive truths.

Let me say that, no offense to Ellen Brown, I wished early on in her lecture, after the first laughs came from audience members, she would have taken a moment to explain that what she was doing was no laughing matter. However, some people do not have the type of personality which results in anger for misunderstandings, and she is one of these types – easy-going, calm, and patient. I’m sure she has run into a range of responses from men and women who she introduces to public banking, and has come to realize that this is going to happen, so then goes on with her teaching.

Let me reiterate that laughter from the audience in this lecture should be seen for what it represents: the profound lack of awareness of, and the great importance of Americans’ becoming aware of, money science and the public banking solution – especially now in 2014 with the great economic problems and challenges the nations face. Public banking has the same great potential for not only America, but for every nation on Earth with a privately owned central bank. Because of the current relevance of this subject now around the world, men and women would do well to visit webofdebt.com and publicbankinginstitute.org, Ellen Brown’s websites, to start learning about this most important issue.

I have listened to Ellen Brown’s talks on many occasions, whether in banking conferences, lectures to college students, or on numerous radio interviews. She has spent a great deal of time and effort to bring out the truth surrounding monetary issues, including writing eleven books, the latest being “The Public Banking Solution”. If you live in California I hope that you do whatever you can to help her win her race for state treasurer. To Californians, let me just say simply that you will not regret for one second having Ms. Brown as your state’s treasurer. You will be grateful.

For Americans living in the remaining 49 states, you would do well to learn as much as you can from Ms. Brown, as soon as possible. Please visit her websites. You will then enroll in what could be called “Economics One Trillion and One”.

Ellen Brown is a woman whose goal is financial freedom for the American people.

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(Thanks to freespeechtv @ YouTube)

Compound Interest: An Invisible Wrecking Machine.

Posted January 11, 2014

by Jerry Alatalo

“If you have money, do not lend at interest, but give to him from whom you will not receive it back.” – The Gospel of Thomas

smoky mt-1With the current economic downturn being experienced around the world, there has been a significant movement created to explore alternatives in economics and monetary systems. Occupy, Arab Spring, and other significant social movements in nations around the Earth have economics and money at the roots of their motivations, greatly increasing debate and discussion on these important issues. One woman who spent decades of study into economics and monetary systems was Margrit Kennedy from Germany, who passed away recently at the age of 72.

Ms. Kennedy was an architect by training who, in the early 1980’s, became concerned upon seeing that worthy ecological projects were not receiving financing because they were not “economical” – in other words, they did not earn profits. It was a profound realization for her, so much so that she decided to leave the field of architecture to devote the remaining years of her life to the study of new and alternative, interest-free monetary systems.

Let me first say that I only first heard of Margrit Kennedy when a fellow blogger wrote a memorial post for her in the past week, including a video memorial from monetary reformist/documentary filmmaker Bill Still. In Buddhism there is a term called Dharma, which relates to right livelihood and the work one is best suited for in this life. With the decision made by Margrit Kennedy to move from architecture to money and interest-free systems, and her devoting of over thirty years to study, lecture, and travel on this universally relevant subject, we can say that she practiced right livelihood.

There are many lectures and interviews of Ms. Kennedy on YouTube in German, however the video here is in English, and gives people a good idea of what she studied and worked on. Her work involved sharing information which is not taught in schools of economics, nor discussed in the media to any real, significant extent. One of her central messages was that people are unaware that the present monetary/financial system is not the only option available for humanity – that other options are there.

Margrit Kennedy was certain to point out that all the great religious leaders of all time were against the charging of interest, and that she was a strong proponent of interest-free money. She was able to see the “big picture” – that in her home country of Germany 90% of the people were paying large amounts of compound interest to the remaining 10%. In some developed countries the figures show an even greater concentration of wealth: 99% paying large amounts to the 1%.

Looking at the history of interest-based money from a philosophical standpoint, one can see how there is a sharp contrast between the current system – “money and power” – and a possible system which could be described as one of “money and love”. This new philosophical viewpoint is gaining much traction around the world as debt becomes an almost unmanageable, overpowering condition for both individuals and countries. One could describe the compound interest systems currently in place as ones which are in effect “anti-love”.

The words from the man named Jesus, “it is better to give than receive”, were never more relevant than here in 2014 where debts owed to so-called “too-big-to-fail/jail” bank corporations have reached record-breaking levels. Finance sectors around the world have grown into the largest sector of economies, manufacturing no goods but making money from money, accomplishing virtually nothing but transferring money from the many to the few.

As the many transfer their wealth in the form of compound interest payments on homes, cars, credit cards, etc., the many are left with less to spend on food, clothing, utility bills, education, energy, entertainment, and on and on… Humanity has seemingly boxed itself tightly into the debt corner, to the point where alternative economics and monetary systems are now studied and discussed in exponentially intense ways. Millions of men and women have come to the point of saying “there must be a better way” of organizing systems of money.

Public banking, reinstituting the Glass-Steagall Act, real deterrents for financial crimes (including real jail time), whistleblower protection for those who report white collar crime, and limits on compensation for bank executives are a few of the many reforms proposed since 2007-8’s economic collapse.

People everywhere have come to varying points of nearness to a spirit of demanding fundamental change which gives most people a monetary system which serves them, instead of them serving the system – which many feel is totally corrupted by greed. Of the 90-99% who have paid dearly to the 1-10%, most are unaware of how the monetary system works, and the .001% who are aware do not want to see any change in the status-quo.

Margrit Kennedy likened compound interest to an “invisible wrecking machine”, practiced by economists taught at schools of economics that this is the only system – that there are no other options – there is nothing to replace it with. She also found that 40% of the prices people pay are built-in for the manufacturers’ interest payments. So, people are having to pay interest on their homes, cars, credit cards, etc., plus 40% of the prices they pay for necessities and desired goods.

Economists go along with a system which has regular booms and busts, reaching periods that experience downturns of world-shaking proportion as here in 2014. They have become drenched in interest-based economics, speaking half-truths and using hazy, vague “economese” which nobody can understand. Men and women such as Ms. Kennedy are never seen on mainstream media. Because the media corporations are held by the .01% at the top of the wealth pyramid – being paid advertising revenue from the largest banks in the world.

Margrit Kennedy tried to make the world a better place. She tried to increase human freedom. Margrit Kennedy fought the good fight.

All who hold the same goals would be wise to remember always Margrit Kennedy, and work to carry out her vision.

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(Thanks to Dimitrid @ YouTube)

Toward A New World Economic Paradigm.

First ever "Earthrise" photograph, t...
First ever “Earthrise” photograph, taken from lunar orbit during Apollo 8 (Photo credit: Wikipedia)

Posted December 23, 2013

by Jerry Alatalo

As one who has a healthy interest in learning as much as possible about the Earth’s financial, economic, and banking system(s), taking the time to find men and women “in the know” is a big part of the process. After viewing a very interesting documentary titled “Four Horsemen”, which does a real service for humanity by combining the views of 20 or so men and women experts in economic studies, I found the following interview of Ms. Ann Pettifor.

Let me first say that “Four Horsemen” is available for viewing on YouTube – on Renegade Economist channel (450,000 views) – and that I found it one of the best films on economics I have ever seen. In other words, this documentary film critic gives it a “big thumbs up!” and “four and a half stars!”. I will provide a link to the film in my next post, but for now, about an impressive woman by the name of Ann Pettifor.

Secondly, for those men and women who have an interest in economics and finance/banking, you would not regret spending some time and study of videos on Renegade Economist channel @ YouTube. Ms. Pettifor’s interview is one of those videos. Her story is interesting. What is impressive about her is that she led an effort called “Jubilee 2000” to bring about writeoffs of over $100 billion of debt faced by some of the world’s poorest nations.

To be honest, after all the articles and videos I have read and viewed, it is always somewhat surprising to come across men and women with great ideas that one has no previous awareness of. Most of the people in “Four Horsemen” are men and women who I have some familiarity with, having read and heard them  before. Ms. Pettifor happened to get interviewed by the same organization that made the film, so there was the added “bonus” of listening to her speak.

She describes her journey of awareness regarding international banking problems as starting with somewhat mundane beginnings, like noticing her friends and family members obtaining hefty mortgages, although in financial conditions which would be seen as risky – where she felt the stage was set for a fall. Ms. Pettifor became looked upon as a “looney” when she wrote a book predicting the speculative housing bubble bursting, well before 2007-8.

In the years before the world economic crisis which began in 2007-8, Ann Pettifor “got it”. In 2013, soon to be 2014, Ms. Pettifor “gets it”, and she is currently involved in making sure that as many people as possible “get it” as well. Her description of three years of studying economics and banking, her “informal Ph.D.”, provides evidence of her gravitas as an expert of economics. She studied politics and economics in the country of her birth, South Africa, at the University of the Witwatersrand.

She describes the three years of study as ones which allowed her to gain an “eagle’s eye view” of world economics and politics, in contrast to the specialization, micro-vision, limited horizon view held by “silo mentality” academicians. She talks about how “blindingly obvious” was the credit bubble collapse which occurred in 2007-8, expounded upon in her 2003 book “Credit Crunch”. She believes that economics and finance have been taught at university level in a “very bizarre” way, with a failure to focus on more consequential, macro levels.

Ms. Pettifor speaks of constraints on professors’ freedom to speak truthfully due to the issue of tenure, where economics/finance experts without tenure self-censor because of employment concerns, and that many are afraid to “rock the boat” and risk losing positions at universities. She also speaks about economists becoming “hired guns” for the too-big-to-fail banking corporations, pointed out by the interviewer as evidenced by economists in the documentary “Inside Job” becoming visibly annoyed – acting cowardly – in response to inconvenient questioning.

She welcomes the “clash of ideas” as the only way to arrive at a new paradigm in economics and finance around the world. She points out her reading of a speech by Ben Broadbent, a top manager at the Bank of England, and thinking to herself that the speech was probably written by Goldman Sachs, and indicative of huge political and economic power held by financial corporations whose focus is on profits, without any focus on improving the economic conditions of citizens.

This “frozen view” has led to the current situation, where person(s) wanting to borrow capital for a wind farm have become ignored for speculative ventures which benefit small amounts of people, adding no jobs or real production of goods and services. She relates the cause/genesis of the problem being from the early 70’s, when deregulation allowed speculation to run wild without any controls whatsoever. She suggests permanently low-interest rates, laws which regulate and control the financial sector, as well as eliminating lending for speculative purposes.

She realizes that banks have bribed and co-opted politicians, and gives Franklin Roosevelt as an example of a United States president who waged an intense battle with Wall Street – a U.S. president who would not be bribed. She plainly states her placement of blame for the 2008-present world economic crisis on politicians, and strongly suggests the need to hold political leaders to account. She points out that the public has largely been ignorant of economic/finance issues, but holds the optimism that people are beginning to “get it”, in large part due to information democratization and the internet.

Her description of how the movement resulting in $100 billion of poor nations’ debts being cancelled began, in a bare-bones way – with a rustic office and no funding – to eventually getting support from world leaders and accomplished, gives inspiration to all who are interested in creating good changes on Earth.

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Ann Pettifor believes that when enough men and women become aware and “get it” –  the momentum for real change will become unstoppable.

Ms. Pettifor writes articles for debtonation.org. 

(Thanks to Renegade Economist channel – YouTube)

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