The Real Libor Scandal: Darker and More Sinister
Fasten your seatbelts. The Bond Bubble is bursting at seams. The crisis that is likely to result will make economic upheavals of 1929 or World War II look like a picnic.
In their article ‘The Real Libor Scandal’, Paul Craig Roberts and Nomi Prins bring it out starkly, but not in so many words. Rest you can make out if you are awake. They begin, “According to news reports, UK banks fixed the London interbank borrowing rate (Libor) with the complicity of the Bank of England (UK central bank) at a low rate in order to obtain a cheap borrowing cost. The way this scandal is playing out is that the banks benefitted from borrowing at these low rates. Whereas this is true, it also strikes us as simplistic and as a diversion from the deeper, darker scandal.” You may read their article here. It will open a new page.