MONEY: The 12th and Final Religion

Saturday, July 14, 2012



Major media has reported that the LIBOR has been fiddled with. The London Interbank Offered Rate (LIBOR) is the rate that selected  banks charge each other for loan interest when they borrow from each other to balance their books at the end of the day. This borrowing is a way to balance their accounts for periodic reports to the Bank of England. In other words the price reference for world interest rates has been set by London City banks for decades, even centuries. The LIBOR, was always an informal typically British arrangement based upon a tradition of gentlemenly word.

The prospect of a gentlemanly swindle had not occurred to the financial markets, it seems. The LIBOR was a key reference in many of the derivatives created by Washington and Wall street 2001-2007. The small print of your favorite municipal bond borrowing derivative no doubt has a tangential reference to how all the many factors come into play based upon the daily LIBOR. Although usually a minor change on the margin, the LIBOR could determine whether or not your derivatives bet was a winner or a Loser.

It is inconceivable that world financial insiders would be watching the derivatives market and setting the LIBOR to effect outcomes, offers Willard of Kazabazua, Quebec. A good man of thousands of Masses and decades of Rosary beyond count, a lifetime on alert to recognize Nazi war criminals,  he is close with Emma, known here as Loco Lola from her past life as queen Juana of Castile the first woman Jesuit of the 1555 Vatican. She often considers Willard somewhat naive on matters of finance. Rightfully so, I suspect.

There is much being said about the LIBOR fixing being a great banking swindle of epic portions. Not so, says Loco from deep trance contact in her past life as Queen Juana the first woman Jesuit. The LIBOR was merely a convience for the banking cartel to pretend to be regulated by "Market forces."

Loco says modern belief in something called market forces and interest rates is a more profound  superstition than the belief in indulgences of the dark ages of the Roman Church. The myth of the LIBOR was uncovered by Japan sometimeme after 1987 when it was considered that the London/Wall Street markets were an orchestrated fraud. The gradual invention of the TIBOR (Tokyo Interbank Offered Rate) was carefully constructed to give Japan's  Bank customers a less casually arranged interest rate. The TIBOR carefully segregates Western and Eastern financial markets. The desire is to prevent another melt down like the fraud of the Long Term Capital Management fiasco that almost bankrupted the complete stock market world wide.

The ultimate test of TIBOR versus LIBOR is yet to occur, but who can tell? Does the current news about LIBOR conceal a deeper story. Perhaps there is a showdown underway between East and West financial markets?

Our own Montreal Market Medium, Al knowing self taught in market matters, join us. It is after lunch. We know because, his eyes are the same color scarlet as his cheeks. He is shouting something about SDRs. (Special Drawing Rights) These SDRs were imagined as a means to replace the US dollar as the international currency in the late 1960s. Some banks still hold SDRs in reserve accounts. He speculates that the time is coming for a rebirth of the SDR concept.

Loco Lola dismisses the Medium as misguided. She says the US dollar is made rock solid by the overhead and ever present drone delivered smart bomb. Any major financial authority that defies the supremacy of the US dollar will find a smart bomb in the back seat of the automobile, often while on the way to the office. Times have changed, she says, cryptically. Neither of these two self represented financial experts has a definitive thought about the tension between the LIBOR and the TIBOR. Just like Loco said, times are changing, leers CPL Duty First, just back from his ride along the great divide just South of Truth or Consequences on his 1949 Harley 61.

PS The Cpl says to be sure and read; MONEY: The 12th and FINAL RELIGION and THE AMERICAN CALIPHATE OF BIZWOG: The Final World Order, in order to understand how the reconstructed Third Temple in Jerusalem is intended as the final central bank for controlling a world currency. Very Important, He says.