Saturday, 30 June 2012

Criminal manipulati​on - LIBOR. GOLD................from Rico

Criminal manipulation. The systematic 'rigging' of financial markets.

LIBOR. The LIBOR rigging scam emanating from Barclay's is a VERY big deal. The banker's routine and systematic manipulation of LIBOR rates not only increased trader's profits [OK - I hear some yawns. Traders are supposed to make profits, right? Besides, unless you are a businessman or savvy consumer who uses financial products tied to the LIBOR, you very likely neither know nor care what kind of animal a LIBOR is.]...the cost of secret 'rigging' for private gain to corporate entities and households was HUGE! And to traders and owners of GOLD!
- This is now rippling from Barclay's to HSBC, RBS and Lloyds. Stand by for DB and JPM to be implicated next. Not for nothing has this been dubbed "LIEBOR" and it's far from over.

Let's talk in terms of LIBOR manipulation and GOLD manipulation. LIBOR rates are critical to the detrmination of lease rates for GOLD.
- The lease rate = current rate on a debt instrument minus LIBOR costs (both for set durations).
1. By keeping LIBOR low against current interest rates, lease rates are positive. A negative lease rate would put GOLD into backwardation.
2. The LIBOR 'rigging' was a handy tool to keep GOLD from going into backwardation as EUrope and the US went into ZIRP mode.

A major footnote: If it were not for the international press, especially that of the UK, almost nothing would be known or said about the biggest criminal 'rigging' of financial markets to date. The lapdog MSM in the US is both too lazy, and too co-opted by the Masters of Wall Street and their political cronies to utter a 'peep' about the matter. Besides...it's 'hard' and it makes their heads hurt! It's so much easier to talk about Tom Cruise's divorce from that actress.

A minor footnote: Despite a month of heavy and very obvious price-capping, GOLD has still outperformed all major currencies. It's no accident or coincidence that Central Bankers absolutely hate the yellow stuff, or that they and their political pals would 'encourage' (wink-wink) bullion banks in the City of London to play fast-and-loose with the LIBOR and with paper on the COMEX in Chicago.
- I'd say it suits them right down to their socks!


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