TAG Team, part 3: Precisely how Central banks help Banksters

In three stories, I have just laid out how this
anti-democratic, banker coup works and yet
nobody with any power is willing to stop it.

Central banks are run by the banks. They are
not government organs, despite the propaganda
and the political appointments.

So, when they play like democrats, that's Orwellian
-speak.

Read this with TAG Team 1 and 2, below

Checkit: Forbes

Shah Gilani

It's Not Libor, Stupid. Central Banks Are The Problem

Not only are at least twenty more big banks under investigation as part of a massive fraud to manipulate interbank lending rates that affect some $800 trillion in loans and derivatives, but the Bank of England is about to take center stage in the scandal.

And that’s bad news for central banks around the world.

Well, actually, it could be good news, as in really good news if it’s the beginning of the end of what central banks do to manipulate free markets to the benefit of their only real constituents, the world’s big banks.

First the good news.

It’s already come out that traders at Barclays with huge derivatives positions leaned on co-workers who sit on “panels” that submit internal bank borrowing cost data to Thompson Reuters, who averages the middle lot of submissions to determine Libor (London Interbank Offered Rate) “fixings” (not my word, but actually the established nomenclature for what it apparently is that they do…as in “fix” rates) all under the auspices of the British Banking Association.

What’s good is we now know for a fact that the traders (crooks?) were aided and abetted by their co-workers, the submitters (crooks?), who were overseen by managers and top executives, who design most of these schemes (crooks?), and were all blessed by the British Banking Association, an illustrious association of 200 some-odd banks, whose many members (crooks?) are panel members submitting crooked (no question mark necessary) data.

Still don’t get why that’s good news? Because it’s proof there are crooks out there and this time it’s easy to see where the “fix” actually occurs. It’s also good news because according to one multinational banking executive, just quoted in the Economist, it’s “the banking industry’s tobacco moment.”

He was referring to the potential mountain(s) of litigation being drawn up already to claim that gross manipulation of interest rates caused billions, maybe trillions, of dollars of harm to borrowers and financial players of all stripes. Back in 1998 big tobacco had to settle class-action suits that cost them over $200 billion.

The bad news is the Bank of England, one of the world’s stalwart and oldest central banks, is about to face its own potential Lehman moment (at least we can hope). That’s on account of the fact that Paul Tucker, deputy governor of the Bank of England (and its supposed next top dog), is going to have to come clean in front of Parliament very shortly.

Mr. Tucker is apparently on record (according to Bob Diamond’s phone call notes) suggesting that the Bank of England wanted Barclay’s to manipulate it’s Libor submissions downward so as to not panic counterparties and the country who might view tight interbank lending conditions as a sign of stress across the entire banking system.

So, here’s why the bad news for the central bank (encouraging, no, make that, demanding fraud) is really good news for free markets.

Central banks have done nothing to countermand the trend (nothing but encourage) leading to big banks getting bigger; so big, in fact, that now all of the big banks around the world are all too-big-to-fail.

The bigger the world’s banks are (bankers want size, because more size equals more power to price, to manipulate markets, and to pay bigger bonuses) the more important central banks become, both to the big banks, nations, and the global economy.

Central banks are the saviors of big banks that get in trouble, especially when economies and systems are leveraged for profits that backfire and they all have to be bailed out.

Central banks are supposed to be above what’s going on below their ivory towers, but, in fact, they are the puppets being manipulated by the big banks. It’s a case of the tail wagging the dog.

Why are central banks pouring money into banks, really? Why aren’t governments printing money to pour into ailing economies but aiding and abetting central banks instead?

It’s because central banks are independent supra-national bodies who have been ceded monetary power by governments almost everywhere to benefit banks and bankers the world over, who are their only constituents, and for all intents and purposes, effectively “own” legislators and governments.

They’re pouring money into banks to keep them solvent. That’s what central banks are there for. The banks aren’t lending the money (massive reserves are sitting on balance sheets to shore up appearances) because they need it to meet reserve requirements and offset the illiquidity evident in the interbank lending market…the same interbank (Libor) market that the Bank of England wanted to make look more liquid than it was viscous back in 2008.

...We need free markets not manipulated markets. We need to break up all the world’s big banks so they can fail when they overleverage themselves, and entire systems, nations, economies and the global economy aren’t all brought to their knees.....

TAG Team 2: CBC shows how Central Bankers abet crime

What happens when you let Central Bankers, bankers

with access to a massive printing machine, go to town

one money supply and regulation, when there's no
political oversight.

Nobody even consults a government to see if the
M1, M2 sh*t that they're pulling is legal, fundable
or in the interest of any country.

Result: Chaos in a three-piece suit

It all happens in Basel. I don't know why nobody
called "BULLSHIT" on Mark Carney.

What the Basel gang does is :

going behind the backs of government

while getting them further in debt 

to pay for past and future banking crimes

so, basically it's "F$%^&k democracy time."

when people start to complain that 

their government and private 

pensions have disappeared,

Mark Carney, Central Banker says

"people get the government 

that they deserve"

OBVIOUSLY

we've all got a government

that is de facto ruled by bankers

and that's supposedly the 

fault of the voters.

BULLSH*T!

Did any of them, bankers

or politicians ask us if we 

wanted a bankocracy?

Oh, ya, that happened last
week while you were working
70 hours at minimum wage
to pay off your student loan.
There was a plebiscite down
at the pub.
fat F%^&&kin' chance

Checkit:  Cbc

Neil Macdonald: The 'monarchs of money' and the war on savers

Power Shift: First in a series on the rise of the central bankers and the global imposition of cheap credit

By Neil Macdonald, CBC News

Posted: Apr 29, 2013 5:03 AM ET

Quietly, without much public fuss or discussion, a new ruling class has risen in the richer nations.

These men and women are unelected and tend to shun the publicity hogged by the politicians with whom they co-exist.

They are the world's central bankers. Every six weeks or so, they gather in Basel, Switzerland, for secret discussions and, to an extent at least, they act in concert.

Watch Neil Macdonald's full documentary The Monarchs of Money tonight on The National at 10 p.m. /10:30 NT

The decisions that emerge from those meetings affect the entire world. And yet the broad public has a dim understanding, if any, of the job they do.

In fact, these individuals now wield at least as much influence over the lives of ordinary citizens as prime ministers and presidents.

    Who are the world's central bankers?

The tool they have used to change the world so profoundly is one they alone possess: creating money out of thin air.

There is an economic term for this: quantitative easing. More colloquially, it's called printing money.

… When the record of the 2008 global financial catastrophe is fully written — that story remains a work in progress — the world's central bankers will emerge either as heroes, or as the people who administered a cure that turned out to be as bad as the disease.

… One is that no one really understands the consequences of pumping such vast amounts of money into the world economy. It's already distorted the prices of certain assets, and some fear hyperinflation or market crashes are inevitable (the subject of tomorrow's column).

The other is that it's caused a massive shift in wealth, from savers to borrowers, and is taking money out of the pockets of almost everyone approaching or at retirement age.

… British pensioners Judy White and her husband Alan, at their home in Teddington, south of London: 'I now have 50 per cent less. 'British pensioners Judy White and her husband Alan, at their home in Teddington, south of London: 'I now have 50 per cent less.' (CBC )

The policy has savaged pension and savings returns worldwide, but particularly in Britain, a nation of savers and pensioners.

There is more money in British pension funds than in the rest of Europe combined, and now that money is just sitting, "dead," as some call it, not working for its owners.

Ask Judy White, a retiree in her late 60s who lives in Teddington, south of London, with her husband, Alan.

… But surely he understands the anger of an older person watching their savings being eroded, I ask him.

Carney smiles grimly. That question is clearly a sore point. He gets a lot of mail on the topic.

Canadians, he says, must understand that the alternative is massive unemployment and thousands of businesses going under, and "my experience with Canadians is that they tend to think about their neighbours and their children and more broadly … they care a little bit more than just about themselves."

Asked whether central bankers are not in fact enabling irresponsible behaviour by speculators enamoured of cheap money, not to mention politicians who can't curb their borrowing and spending, Carney merely remarks that voters in a democracy get the governments they choose.

Tag team: Taibbi and CBC prove that illegality helps bankocracy

In a few words, the illegal banking activity that
has been the rule of the day, especially since
2008, has been done so that banks are
too big to fail, and yet connected and powerful
enough to take down countries.

All I'm going to do is prove that a mildly
interested citizen with a blog can easily piece
together one big scam from two smaller ones
and then I can also ask:
"just when the hell will this bullshit end?"

 While Taibbi shows that banks are using
one scam on top of another to take down
whole countries,
the CBC shows that the banks' representatives,
the Central Banks of the world, are deciding
the money supply issues that allow them to
cover for the scamming bankers and feed them
more free money.

Result: the central bankers are helping other
bankers take over countries. We will end up
with the same major countries owning
financial colonies all over the world, including
now the "First" World (soon to be Second).

Did you notice any politicians acting on behalf
of their democratic electors? nope, neither did I.

 This text will be followed by the two TAG TEAM
stories.