David Wilcock released a new article this morning that is BRILLIANT.
I will admit that I more than slightly discouraged and well.... unimpressed with David's latest article that he released prior to this one. But David has brought a huge amount of information together in this article that ties together so many pieces of the puzzle.
The article is hugely long, a la Wilcock, so I will only post one section of it here, but please take the time to read the entire article.
David's article starts off discussing the LIBOR scandal that began with Barclay's, and a ground breaking study released from Switzerland in September 2011 that tracks the ownership and control of the vast portion of all businesses in the world to one small group.
Please read the first half of David's article that discusses this incredible information HERE.
I found this section of the Article to be very insightful. David pulls together information from several areas and ties pieces of several different sections of the puzzle together in a way that many people did not see.WHAT KIND OF "INFORMAL NEGOTIATIONS" ARE WE TALKING ABOUT HERE?
Let's be clear that the Swiss scientists suggested the possibility of "back-room dealings" -- the type of insider cheating that conspiracies are made of.
This is what they are calling "informal negotiations."
Now, with the LIBOR scandal, we have the proof that these "informal negotiations" are indeed taking place -- and the world has been electrified.
All 16 of the top financial institutions in the world have been secretly conspiring, with each other, to defraud the public.
This has now become common knowledge in the last three weeks.
With this scientific backdrop, the significance of what you are about to read will be much greater.
BARCLAYS WAS DIRECTLY TARGETED
Again, as of June 27, 2012, action was taken against Barclays Bank by the Commodities and Futures Trading Commission, or CFTC, to make this knowledge public -- on a mass scale -- for the very first time.
Let's not forget that Barclays was the number one most powerful entity in the "super-entity" of 147 corporations discovered by the Swiss scientists.
Their information has been publicly available since last September, and was prominently featured in Section One of
Financial Tyranny, published in January 2012.
US FEDERAL MARSHALS ARE RESPONSIBLE FOR THIS
The CFTC is the financial investigation branch of the Department of Justice. The personnel who enforce the law on behalf of the Department of Justice are the US federal Marshals.
The US federal Marshals are the only entities legally capable of taking down this cabal -- which has seized control of the world and its resources to an astonishing degree.
The Marshals are allowed to cross state borders, and can enlist the support of the police and the military to aid in their enforcement of the law.
These tools are absolutely critical in defeating such a vastly interconnected entity.
All of these details fit perfectly with the "Mass Arrests" scenario we've been heavily tracking on this website since last November.
In order to do mass arrests, you have to start with mass charges -- leading to mass court cases.
The Department of Justice has now kicked this process into high gear. As you will see, the outraged public is already calling for mass arrests as the scope of the conspiracy sinks in.
THE FEDERAL RESERVE SYSTEM
At the center of this octopus of global control is the Federal Reserve System. It was originally called the National Reserve System, and was presented in 1911 and 1912 via the Aldrich Plan.
The idea was to outsource the control of the US financial system to a private consortium of international bankers.
Americans then essentially rent their money from these bankers -- and pay them for the honor of using it.
As billionaires, the trust and collateral of these bankers is supposedly superior to any "reserve" within the US government itself.
This vintage cartoon shows how there was a widespread understanding, in the early 20th Century, of the danger we faced if we allowed private bankers to seize control of our financial system.
WHAT WERE THE RESULTS?
This problem did not begin in 1911. Once you have read Financial Tyranny, you will be well aware that it goes back to at least the 1700s.
The results of the Federal Reserve were elegantly summed up by the Ron Paul site:
Ron Paul Site -- Audit the Federal Reserve
The Federal Reserve is the chief culprit behind the economic crisis.
Its unchecked power to create endless amounts of money out of thin air brought us the boom and bust cycle -- and causes one financial bubble after another.
Since the Fed’s creation in 1913, the dollar has lost more than 96% of its value, and by recklessly inflating the money supply, the Fed continues to distort interest rates -- and intentionally erodes the value of the dollar.
For the past 30 years, Congressman
Ron Paul has worked tirelessly to bring much-needed transparency and accountability to the secretive bank.
And in 2009 and 2010, his unfaltering dedication showed astonishing results: HR 1207, the bill to audit the Federal Reserve, swept the country and made the central bankers shudder at their desks.
The bill passed as an amendment both in the House Financial Services Committee and in the House itself. But eventually the most significant portions of the bill were derailed. (
Full story here.)
NOT THIS TIME
Ron Paul's original bill led to a shocking disclosure.
The Federal Reserve paid 26 trillion dollars in bailouts -- with American money it printed, without our permission -- to its own member banks surrounding the financial crash of 2008.
This has still not created anywhere near the degree of outrage that it should have. Corporate media has completely ignored it -- because to publicize it would speed their own destruction.
Here is a small part of the letter where Congressman Alan Grayson reveals how he found this number, in the newly-audited Federal Reserve balance sheets, to John Hively -- “The World’s Most Accurate Economic Forecaster Since 1989”.
CONGRESSMAN GRAYSON: I wouldn’t want anyone to think that I’m dramatizing or amplifying what this GAO report says, so I’m just going to list some of my favorite parts, by page number.
Page 131 – The total lending for the Fed’s “broad-based emergency programs” was $16,115,000,000,000.That’s right, more than $16 trillion. The four largest recipients, Citigroup, Morgan Stanley, Merrill Lynch and Bank of America, received more than a trillion dollars each.
The 5th largest recipient was Barclays PLC. The 8th was the Royal Bank of Scotland Group, PLC. The 9th was Deutsche Bank AG. The 10th was UBS AG. These four institutions each got between a quarter of a trillion and a trillion dollars. None of them is an American bank.
Page 205 – Separate and apart from these “broad-based emergency program” loans were another $10,057,000,000,000 in “currency swaps.” In the “currency swaps,” the Fed handed dollars to foreign central banks, no strings attached, to fund bailouts in other countries….
These currency swaps and the “broad-based emergency program” loans, together, totaled more than $26 trillion. That’s almost $100,000 for every man, woman, and child in America.
That’s an amount equal to more than seven years of federal spending — on the military, Social Security, Medicare, Medicaid, interest on the debt, and everything else. And around twice America’s total GNP….
If the Fed had extended $26 trillion in credit to the American people instead of Wall Street, would there be 24 million Americans today who can’t find a full-time job?
NOW THE AUDIT HAS THE POTENTIAL TO BE COMPLETED
However, as the above quote from the Ron Paul site reveals, "the most significant portions of the bill were derailed."
That all may have just changed. The magic date should sound quite familiar by now -- June 27, 2012.
June 27: Ron Paul's Audit The Fed Bill Clears House Panel, Unopposed!
The House Oversight Committee easily cleared legislation Wednesday that would require a top-to-bottom audit of the Federal Reserve.
The bill, sponsored by Rep. Ron Paul (R-Texas), was advanced by the committee on a bipartisan voice vote with no vocal opposition.
The measure, which has garnered 257 co-sponsors from both parties, would require the Government Accountability Office (GAO) to conduct a full audit of the Fed's operations, including its monetary policy deliberations, for the first time....
Before the audit bill cleared the oversight committee on Wednesday, ranking member Elijah Cummings (D-Md.) attempted to introduce an amendment that would prevent the GAO from auditing the Fed's deliberations on monetary policy.
Cummings withdrew the amendment after Chairman Darrell Issa (R-Calif.) voiced opposition, saying it "essentially guts this bill."
Issa maintained it was ironic that Congress took an intense interest in the $2 billion and counting in losses suffered recently by JPMorgan Chase when it "pales in comparison" to the Fed's multi-trillion dollar portfolio.
"It is long past time for a real audit," he said.
Fed Chairman Ben Bernanke has previously opposed congressional attempts to audit the Fed's monetary policy deliberations, saying it would expose the politically independent institution to lawmaker pressure.
VERY INTERESTING THAT BOTH OF THESE THINGS HAPPENED ON THE SAME DAY
I find it very interesting that the Department of Justice blew the whistle on the LIBOR scandal on the same day that the new Audit the Fed bill passed the House Committee.
Clearly there is a "read between the lines" message being given here -- for those who are paying attention.
The Federal Reserve IS the heart of the "cartel" of bankers that are manipulating the LIBOR rate.
It is safe to say that the Federal Reserve and its affiliates were completely caught off guard by this surprise one-two punch -- and have been scrambling to contain the damage ever since.
Though this has now become a tremendously significant issue in Great Britain, the controlled US monopoly press has essentially been plugging its ears and humming, hoping it will just go away.
Just as I was preparing to publish this, we had another tragic mass shooting in Colorado.
Once you've read Financial Tyranny, you may start to wonder if these "lone nut" assassins are really acting alone.
Stories like this can dominate the headlines for weeks -- and wash away other, embarrassing issues for the Cabal in the meantime.
ROLLING STONE'S MATT TABIBI EXPLAINS THE LIBOR SCANDAL
This next video is an excerpt from Elliott Spitzer's show, Current TV -- and has completely gone viral, for good reason.
It very nicely summarizes what the people have now learned as a result of the LIBOR scandal -- and should be considered "required viewing" for anyone seeking to understand this.
July 3: Matt Tabibi Explains LIBOR Scandal – It’s Over for the Banking Cartel
THE ORIGINAL WRITEUP FROM CURRENT TV
Here is the original writeup of this show, as it appears on the Current TV website. Additional information is provided that is not in the video -- and it is nicely summarized.
July 3: Original Link on Current TV to Spitzer / Tabibi Interview
“Viewpoint” host Eliot Spitzer, Matt Taibbi, Rolling Stone contributing editor, and Dennis Kelleher, president and CEO of Better Markets, analyze the Libor interest rate–rigging scandal engulfing the banking industry.
Barclays CEO Bob Diamond recently resigned after the bank was fined $453 million for its part in the scandal, which involved manipulating the London Interbank Offered Rate (Libor), a key global benchmark for interest rates, by essentially “faking their credit scores,” according to Taibbi.
And as Taibbi explains, Barclays couldn’t have acted alone.
“It can’t just be Barclays and the Royal Bank of Scotland. In fact, it can’t even be four banks or even five banks,” he says.
“Really, in the end it’s probably going to come out that it’s going to be all of them … involved in this. And that’s what’s critical for people to understand: that this is a cartel-style corruption.”
Kelleher argues that the Libor scandal is proof that the financial industry “is corrupt and rotten to its core.”
“The same executives [using] the same business model that crashed the entire financial system in ’08 are still running these banks,” he says.
AL-JAZEERA'S "INSIDE STORY" DOES A NICE JOB AS WELL
Television news often lacks explosive drama -- but not in the case of the July 4th episode of "Inside Story" on Al-Jazeera!
Beginning at 11:55, the host Mike Hannah asks Philip Booth, Programme Director for the Institute of Economic Affairs, if manipulation should become a crime, rather than a "moral mistake."
Then, at 12:26 into the video -- very shortly after Philip Booth begins his answer -- Max Keiser starts screaming that Philip Booth is lying.
It was quite a dramatic moment in the often-sterile world of television news.
The whole video is worth watching, but definitely check it out at 11:55 if you don't have time to see the rest.
July 4: Excellent Al-Jazeera “Inside Story” on LIBOR Scandal
TRANSCRIPT OF MAX KEISER'S BIG MELTDOWN
This event was significant enough of a "breakthrough" in mainstream media that I transcribed it.
Once Max Keiser starts yelling, I deleted all the overtalk so his message is presented intact:
MIKE HANNAH: [11:55] So the question here is, should some international body be regulating the regulators of a system that appears to assume that everyone acts honestly?
And, Philip Booth, should the emphasis be on legal rather than regulatory sanction? In other words, make manipulation a crime, rather than some moral mistake?
PHILIP BOOTH: Yes, I really don't understand the point of view that suggests that somehow London is very lightly regulated markets, and that's why all this fraud and these misdemeanors take place.
MAX KEISER: (screaming) Because that's the reality of the situation! OK?
Stop peddling out lies! Deregulation? There's NO regulation!
You can re-hypothecate to infinity in London! Stop telling lies!
People are being suffered for austerity because panel members like that are lying!
That's absolutely unacceptable! You can't have somebody come on your show and lie like that!
London is a cesspool! There is no regulation -- and the Bank of England is totally implicated in this scandal! [MICRPHONE TURNED OFF]
AND NOW FOR THE PLAY-BY-PLAY
To really understand just how big the LIBOR scandal is, and how far it has spread, we need to read the articles that have come out... in chronological order.
This is only a small sample of what is available -- but it is nonetheless very revealing.
I have dipped in and found the most useful articles, and traced it all the way back to the day it started.
JUNE 27: THE SCANDAL BREAKS IN THE UK TELEGRAPH
In this first excerpt, we see a comprehensive announcement in the UK Telegraph that began the day this all started.
June 27: Barclays Fined for LIBOR Fixing
Barclays has been fined £290m for attempting to manipulate the world’s benchmarking borrowing rate in a blow to the bank’s reputation that has raised questions over the future of chief executive Bob Diamond.
The Financial Services Authority fined Barclays a record £60m, saying staff at the bank had repeatedly made false submissions to help set the London Interbank Offered Rate (Libor).
The rate is used to fix the cost of borrowing on mortgages, loans and derivatives worth more than $450 trillion (£288 trillion) globally.
Investigators from the FSA and the US Commodity Futures and Trading Commission said they had foundevidence that Barclays had tried to manipulate Libor for several years in the run up to the financial crisis and in its aftermath.
In one message sent to a Barclays employee involved in the bank’s Libor submission, a trader asked for the rate to be set “as high as possible today”, to which the unnamed staff member replied “sure”.
In another, a trader from an unnamed rival bank thanks a Barclays trader for successfully getting the lender’s Libor rate lowered, saying: “Dude. I owe you big time! Come over one day after work and I’m opening a bottle of Bollinger.”
About a dozen banks are being investigated as part of the Libor probe, including state-backed lenders Lloyds Banking Group and Royal Bank of Scotland, as well as many of the largest US and European investment banks.
A SUMMARY OF THE EMAILS
The US federal Marshals and other Department of Justice personnel went in, on a highly secretive basis, and collected emails implicating the Cabal in this vast scandal.
Here, the UK Telegraph summarizes those emails -- on the day this all broke out.
June 27: Key Emails Revealing How Barclays Manipulated LIBOR
The report from the US Commodity Futures Trading Commission (CFTC) highlights communications between Barclays traders and those tasked with submitting Libor estimates which it claims show an attempt to manipulate rates on "numerous occasions and sometimes on a daily basis".
CHRONOLOGY OF EVENTS ON THE DAY THE SCANDAL BROKE
Events moved at lightning speed in the UK when the scandal broke. Here is a link to a summary of what happened that day.
June 28: Barclays LIBOR Scandal As It Happened
David Cameron says Barclays has "serious questions to answer" over Libor fixing and George Osborne describes the scandal as a "shocking indictment" of the banks amid calls for the bank's chief executive Bob Diamond to resign.
BRITAIN'S TOP BUSINESS LOBBYING GROUP CALLS LIBOR SCANDAL "DEPLORABLE"
Two days after it started, the head of Britain's top business lobbying group expressed his horror at the depth of this scandal.
June 29: Britain's Top Business Lobbying Group Calls LIBOR Scandal "Deplorable"
"The manipulation of the LIBOR arrangements is deplorable and undermines international trust in the integrity of the City. This weakness must be addressed and the culprits punished.
"We should be mindful, however, of the importance of banking to the UK economy and that throwing out the baby with the bathwater is in no-one’s interest provided the baby is clean."
BARCLAYS CEO WAS DETERMINED TO STAND HIS GROUND
On July 1st, Bob Diamond, the CEO of Barclays, was still defiantly standing his ground and refusing to step down.
July 1: Barclays CEO Bob Diamond Refuses to Step Down
As Bob Diamond announces he won't step down over the rate-fixing scandal, Sky News takes a look at the controversial man behind the headlines.
GERMAN PRESS BLOWS THE WHISTLE ON THE VATICAN
Many investigators claim that the Vatican is at the epicenter of this vast, interlocking global corporate cabal.
The people orchestrating the mass arrests from the inside also know this -- based on information I and others have gathered.
On July 2nd, an important article appeared in the German press about the ever-accelerating Vatican Bank scandal, which began kicking into high gear as of June 5th, 2012.
This is all part of the orchestrated series of disclosures that must precede the mass arrests.
July 2: Growing Vatican Bank Scandal Threatens Catholic Church Image
The Vatican scandal over shady bank accounts and millions in suspect transfers began shortly before sunrise on June 5 on Via Giuseppe Verdi, a picturesque street in the old part of Piacenza, a town in northeastern Italy….
The documents confiscated from Gotti Tadeschi, a former confidant of the pope, provided Italian law-enforcement officials insight into the innermost workings of the Vatican bank.
The secret dossier includes references to anonymous numbered accounts and questionable transactions as well as written and electronic communications reportedly showing how Church banking officials circumvented European regulations aimed at combating money-laundering.
A Possible Motive
The drama unfolding in the Vatican is now heading toward a climax….
Several high-ranking officials within the Curia viewed the bank, officially known as the Institute for Works of Religion (IOR), as something akin to a trust company for clandestine monetary transactions that is not only used by the Church, but allegedly also by the mafia as well as corrupt politicians and companies.
In one of the seized Gotti Tedeschi memos, he wrote: "I've seen things in the Vatican that scare me."
It is a clear turning, one which transforms the so-called "Vatileaks" affair into a financial scandal that could seriously damage the reputation of the Holy See.
Internal correspondence dated May 22 from a member of the bank's supervisory board to the Vatican's Secretariat of State notes that the Vatican bank is presently "in an extremely fragile and precarious position"and that the situation had reached "a point of imminent danger."….
THE VATICAN LEADERSHIP IS ALARMED
As we continue with our excerpt, we see just how deeply this scandal is affecting the Vatican. This has the potential to break into mainstream consciousness on a huge level.
The Vatican leadership is alarmed. Archbishops and cardinals are far from thrilled that Italian officials are now rummaging around in their secret affairs.
Papal spokesman Federico Lombardi has openly threatened Italy's law-enforcement apparatus and urged it to kindly respect "the sovereign rights of the Holy See."
In other words, he believes that all those documents including confidential details about the Vatican bank that were seized during the search of Gotti Tedeschi's home should not be in the hands of Italian investigators….
Its business model depends on keeping things as shrouded as possible from all financial authorities.
Capital gains are untaxed, financial statements are not disclosed and anonymity is guaranteed.
The bank's exotic status of belonging to a religious monarchy in a sovereign state the size of a city park has shielded it from investigations and unpleasant external monitoring….
The Vatican has yet to divulge the business practices its bank has been using for decades. "There is fear that, owing to the transparency necessary today, one will find something in the past that one doesn't want to," says Marco Politi, a Rome-based Vatican expert.
Such things could include a complex system of ghost accounts and shell companies like the bank had when Archbishop Paul Casimir Marcinkus was its head in the 1980s….
INCESTUOUS RELATIONSHIP WITH JP MORGAN
Remember that JP Morgan is the sixth most powerful corporation in the entire "super-entity" of 147 companies identified by the Swiss scientists.
This "super-entity" controls 80 percent of the world's wealth. Now we know that there was an incestuous relationship between JP Morgan and the Vatican Bank.
In 2009, the same year that Gotti Tedeschi took over as president of the IOR, the bank set up an account with the Milan-based branch of the American bank JPMorgan Chase.
From that point on, millions started flowing on an almost daily basis from JPMorgan's Milan office to the one in Frankfurt, where the IOR also had a JPMorgan account.
Vatican officials opted for a special account in Milan with the number 1365, a so-called "sweep facility account," which was automatically zeroed out at the end of each day.
The Vatican bank confirmed the existence of this account late last week, though it said it was primarily used for handling securities transactions.
Through last year, this financial set-up was allegedly used to process more than a billion euros for the Vatican bank. Italian investigators suspect that it was also used to launder funds from dubious sources.
JP MORGAN DIVORCES THE VATICAN BANK
On March 19, 2012, JP Morgan shocked the financial world by suddenly and abruptly "divorcing" the Vatican Bank.
The announcement was made public after the separation had already started -- and less than two weeks before the divorce was complete.
This was clearly a sign that the Federal Reserve bankers knew troubles were ahead -- and were scrambling for cover as they broke into rival, warring factions.
March 19: JP Morgan Divorces the Vatican Bank
VATICAN CITY/MILAN, March 19 (Reuters) - JP Morgan Chase is closing the Vatican bank's account with an Italian branch of the U.S. banking giant because of concerns about a lack of transparency at the Holy See's financial institution, Italian newspapers reported.
The move is a blow to the Vatican's drive to have its bank included in Europe's "white list" of states that comply with international standards against tax fraud and money-laundering.
The bank, formally known as the Institute for Works of Religion (IOR), enacted major reforms last year in an attempt to get Europe's seal of approval and put behind it scandals that have included accusations of money laundering and fraud.
Italy's leading financial daily Il Sole 24 Ore reported at the weekend that JP Morgan Chase in Milan had told the IOR of the closing of its account in a letter on Feb. 15.
The letter said the IOR's account in Italy's business capital would gradually be phased out starting on March 16 and closed on March 30.
In Milan, JP Morgan Chase declined to comment and the Vatican also had no comment.
BARCLAYS CEO SUDDENLY RESIGNS ON JULY 2ND
Now, as we jump back into our timeline, the Vatican scandal got worse as of June 5th, after JP Morgan fled the scene -- and the story got major publicity as of July 2nd.
Then, the very next day, the CEO of Barclay Bank suddenly resigned -- even after he had been digging his heels in and saying "hell no, I won't go" before that.
What kind of pressure was applied to Mr. Diamond to make him suddenly shift so dramatically?
July 3: Barclays CEO Suddenly Resigns, 24 Hours After Defiant Self-Defense
http://uk.news.yahoo.com/barclays-chief-executive-bob-diamond-resigns-064421614--finance.html"Bob Diamond has quit as chief executive of Barclays bank in a shock twist to the rate-rigging scandal.
Marcus Agius, who anounced his intention to resign as chairman only yesterday [July 2nd], is to take over the running of the bank while a successor to Mr Diamond is found.
The announcement was unexpected in that
Mr Diamond had made it clear to staff in a memo 24 hours earlier [July 1st] that he had no intention of falling on his sword - saying it was his responsibility to restore the bank's reputation."
PEOPLE START REALIZING THE WHOLE GAME IS RIGGED
On July 3rd, the same day as our Current TV episode aired, the Huffington Post featured an article showing how the public is realizing that the whole investment game has been rigged.
July 3: LIBOR Scandal Suggests the Whole Game is Rigged
A string of Wall Street crises, including the 2008 stock market crash, the collapse of the mortgage market, the botched Facebook IPO and the scandals at JPMorgan Chase and Barclays have meant “some very heavy body blows experienced by the public,” Richard Grasso, former chairman of the New York Stock Exchange, told CNBC’s Maria Bartiromo on Tuesday.
“It's been a real tough time for consumers who want to get back into the market."
Grasso’s comments
followed remarks last week by Securities and Exchange Commission Chairman Mary Schapiro that investors have a "concern about the integrity of the marketplace."
Schapiro told a congressional subcommittee that U.S. markets are threatened with "an unwillingness [on the part of investors] to ever engage in the markets again."
Investors are unsure "whether they're getting accurate and honest information" from companies looking to sell stock to the public and uncertain "whether the market structure itself is tilted against the individual investor and in favor the institutional investor," Schapiro said.
A recent survey from financial research and advisory firm Tabb Group reported that 31 percent of investors had "weak" or "very weak" confidence in the stock market, compared with 15 percent in 2010.
“There are some people out there feeling like the game is rigged,” said Frederick.
“There have been enough events to make them suspicious. I think that’s unfortunate. And the industry needs to continue to make efforts to allay the concerns.”
BARCLAYS BETRAYS THE ROTHSCHILDS -- I.E. THE BANK OF ENGLAND
The Bank of England has been controlled by the Rothschild family since the early 1800s, as I revealed in Financial Tyranny.
You don't directly see the name "Rothschild" in the super-entity of 147 corporations, but it's hiding in there behind other names.
It was very shocking to see Barclays Bank publicly throw the Rothschilds -- i.e. the Bank of England -- under the bus as the screws turned on them.
July 3: Barclays Claims Bank of England Told Them to Rig Interest Rates
A memo published by Barclays suggested that Paul Tucker gave a hint to Bob Diamond, the bank’s chief executive, in 2008 that the rate it was claiming to be paying to borrow money from other banks could be lowered.
His suggestion followed questions from “senior figures within Whitehall” about why Barclays was having to pay so much interest on its borrowings, the memo states.
Barclays and other banks have been accused of artificially manipulating the Libor rate, which is used to set the borrowing costs for millions of consumers, businesses and investors, by falsely stating how much they were paying to borrow money.
The bank claimed yesterday that one of its most senior executives cut the Libor rate only at the height of the credit crisis after intervention from the Bank of England….
The disclosure of the document threatened to plunge one of the biggest high street banks into open war with the country’s central bank, which will soon assume responsibility for regulating Barclays.
In one of the most dramatic days in British corporate history, Mr Diamond resigned yesterday, less than 24 hours after telling staff he was the right man to reform the bank….
MATT TABIBI DROPS A BIG ARTICLE ON LIBOR ON JULY 3RD
Also on July 3rd, the same day he appeared on Current TV, Matt Tabibi released a significant article on the LIBOR scandal.
His journalism blends a gut-level realism with exceptional research -- and therefore has a way of cutting through the jargon and getting to the core of the issue
July 3: Why Is Nobody Freaking Out About the LIBOR Scandal?
The LIBOR manipulation story has exploded into a major scandal overseas.
The CEO of Barclays, Bob Diamond, has
resigned in disgrace; his was the first of what will undoubtedly be many major banks to walk the regulatory plank for fixing the interbank exchange rate.
The Labor party is
demanding a sweeping criminal investigation. Mervyn King, Governor of the Bank of England,
responded the way a real public official should (i.e. not like Ben Bernanke), blasting the banks:
It is time to do something about the banking system… Many people in the banking industry are hardworking and feel badly let down by some of their colleagues and leaders.
It goes to the culture and the structure of banks: the excessive compensation, the shoddy treatment of customers, the deceitful manipulation of a key interest rate, and today, news of yet another mis-selling scandal.
The furor is over revelations that Barclays, the Royal Bank of Scotland, and other banks were monkeying with at least $10 trillion in loans (The Wall Street Journal is calculating that that LIBOR affects $800 trillion worth of contracts)….
That is explosive stuff…
The implications of that part of the story should be particularly chilling to Americans, who in recent years have been party to a number of revelations about strange and seemingly inappropriate contacts between senior regulatory officials and big bankers during the heat of the crisis.
We know that American officials in 2008-2009 were extremely concerned about the appearance of weakness in the financial markets, so much so that they
may have resisted pursuing criminal prosecutions against big banks, and we also know that they spent a lot of time commiserating with Wall Street figures before and during the crisis….
TABIBI REVEALS "IT'S LIKE THE WORLD'S ECONOMY IS BUILT ON QUICKSAND"
As our excerpt continues, you can feel even more of the powerful indignation and shock that is rippling through the global investment community at this time.
Even the most skeptical and sarcastic folks in the financial world have been hit in the head with a wooden plank by this scandal.
Anyway, the LIBOR story is leading the front pages of most of Britain’s dailies, it’s
on TV, and it’s producing blistering editorials and howls of outrage amongst politicians and activists.
The
New York Times, meanwhile, did chime in with a
house editorial yesterday, and it was appropriately somber. And there has been some coverage in the financial press.
But to me what’s missing from all of this is the “Holy F--king S-it!” factor.
This story is so outrageous that it shocks even the most cynical Wall Street observers.
I have a friend who works on Wall Street who for years has been trolling through the stream of financial corruption stories with bemusement, darkly enjoying the spectacle as though the whole post-crisis news arc has been like one long, beautifully-acted, intensely believable sequel to Goodfellas.
But even he is just stunned to the point of near-speechlessness by the LIBOR thing. “It’s like finding out that the whole world is on quicksand,” he says.
So as far as the stateside press goes, I’ve got to assume the cavalry is coming soon. But when?
THE IRS GETS AUDITED FOR BILLIONS OF DOLLARS IN FRAUD -- JULY 3RD
Furthermore, on July 3rd we found out the IRS was being audited -- for billions of dollars in fraud.
The IRS is not innocent in all of this either. Corruption exists throughout the entire system -- as we are increasingly finding out.
Their own employees have now turned against them.
July 3: IRS Gets Audited -- For Allowing Billions of Dollars in Fraud
The federal agency that strikes fear into many U.S. taxpayers is getting a dose of its own medicine – as it is now the focus of a year-long audit for allowing illegal aliens to scam the system and bilk taxpayers out of billions of dollars every year.
Federal employees are blowing the whistle on the Internal Revenue Service, according to a
report by Indianapolis television station WTHR-TV….
Howard Antelis, a tax examiner at the IRS’ ITIN processing center in Austin, Texas, explained: “We were being told by upper management to ignore fraud, to assign ITIN numbers and … pay out refunds to people who are lying. It’s a license to steal when you allow that.”…
Antelis said he reported the scams regularly to his managers – for years – with no result.
Frustrated with the inaction, he called the Inspector General’s office in Washington, D.C.
“I’ve been working for the federal government for 23 years and I signed an ethical standard of conduct when I went to work that says if you see fraud, you need to report it,” he said.
“I tried and tried and tried, couldn’t get anywhere so … I went into a quiet room and started making phone calls.”…
The auditors made a shocking discovery: IRS employees were, in fact, encouraged to overlook indications of fraud….
“It’s pure negligence by management and they’ve been trying to keep it quiet,” Antelis said. “There is a criminal element that is defrauding the U.S. government by filing mountains and mountains of these fraudulent applications.
"We see them in piles in bulk every day that are obviously not legitimate documents and not legitimate tax returns and not legitimate wages … and [IRS managers] don’t want to deal with it.
"That’s where all the fraud is. The fraud is in the fake notary stamps and fake documents which we’ve been accepting.”
BRITISH PARLIAMENT CALLS FOR MASS ARRESTS
By July 4th, members of the British Parliament were openly calling for mass arrests of the top CEOs and bankers who manipulated the LIBOR rate for their own gains.
July 4: British Parliament Calls for Mass Arrests in LIBOR Scandal
The prime minister [David Cameron] said a single parliamentary inquiry into the "appalling" events would be the most "swift and decisive" course of action.
But Labour's leader [Ed Miliband] said this was "too narrow" and a much wider judicial probe into the culture of banking was needed….
At Prime Minister's Questions, Mr Cameron said the manipulation of the key Libor inter-bank borrowing rate by Barclays traders was "outrageous" and those responsible for "spivvy and probably illegal activity" should be held to account.
"People want to know that crime in our banks, crime in our financial services, will be pursued and punished like crimes on our streets," he told MPs….
But, in heated exchanges in the Commons, Mr Miliband said the prime minister did not understand the "depth of public concerns" about the matter and was failing to act in the national interest.
"Whenever these scandals happen, he has failed to act and he stands up for the wrong sort of people.
"His party is a party bankrolled by the banks. If he fails to order a judge-led inquiry people will come to one conclusion. He simply cannot act in the national interest."
MORE TO COME
Over the years, I have built up contacts with insiders who are very well-positioned -- due to my role as a public investigator.
I received information that absolutely convinced me there was a plan to do the impossible -- to actually break up this Cabal and arrest its top conspirators.
Some people thought the mass arrests we've been discussing on this site would just start one day.
All of a sudden, the marshals and the troops are out in the streets -- and top Cabal people are being hauled off to prison.
What we are now seeing is a plot twist that had to be hidden -- for obvious reasons -- but it makes perfect sense.
If you want to make mass arrests, in a way that is fair, legal and publicly supported, first you need to make mass charges -- followed by mass lawsuits.
If you suddenly just arrest thousands of top people, with no legal precedent, the public will not know who to trust.
This way, the process occurs in a much less traumatic fashion. You have to awaken the public to the problem first, on a mass level, before any palpable solution can be offered.
UPDATES WILL CONTINUE
So far this investigation has just begun. I am hosting a CONVERGENCE conference in Chicago and have to work within the cracks.
I will continue releasing sections as they become available.
We're still only up to July 4th in our timeline -- and after we reach the end of the timeline, there is still much more to discuss.
I must say that I have been very excited by these developments. I didn't write lots of small updates in the intervening period, because I wanted to do it right -- the first time.
I do hope to have everything I've got published online by this coming Wednesday at the latest. Stay tuned!
