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)
Recent 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.
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”.