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Do you remember the LIBOR scandal? The London Inter-Bank Offered Rate?

The reason LIBOR is so important is that it is used as a "base rate" for a lot of unrelated loans and other monetary contracts.   Base rate + 10 or 15% = your credit card or car loan rate, that sort of thing.

Okay, not so okay, because the biggest banks in Europe get together and "fix" the interest rate at which they "offer" to lend money to other banks, which I assume are understood to be more or less middle-tier banks. A bald-faced lie, except they are not even claiming that they were taken up on the "offer." The middle-tier banks are not stupid borrowers. They will either negotiate down the "offered" rate or take out a loan at better rates and conditions elsewhere. The LIBOR is a "little people's" borrowing rate. An "offer" to lend money at a rate which was left outstanding at the end of the day and published in the newspaper because no other bank took them up on it.

The whole thing was and still is a fraud, long before and after 2008 when it broke the news.

And to make matters worse, after London "fixes" the inter-bank interest rates and prices per troy ounce for gold and silver, then about five hours later, (because of the time zone difference,) there is nice comfortable fireside discussion in the U.S., where the Fed Funds rate is similarly "fixed." And the fix cannot be going just one way across the Atlantic, either.  The Fed and the big banks in the U.S. have got to be paying London for "the fix" somehow. We need to find out how they are paying, and where the money is going.

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