From the beginnings of the credit and banking calamities in 2008, there has been desire in some quarters for charges and prosecutions against the bankers that have wrecked such havoc upon the rest of us. How can the fraudulent mortgage practices go unpunished? (Of course, the root cause is central banking, and all other excesses are possible only because of this institution.)
Yet, other than a minor bit player or two, nothing came of this. Certainly one aspect is that, in the washing of the laundry, various politicians and central bankers would come under fire. Perhaps for this reason, among others, the actions were swept under the rug.
I felt all along that this turning-the-other-way by the politicians would last only as long as the façade was held together with bubble gum and duct tape. In other words, the politicians would turn on the bankers when the heat of the crisis was finally deemed intolerable. The sinking ship has the rats turning on each other, so to speak, and while banks control politicians, ultimately the politicians control the banks – even the Fed.
Is this why the Libor story is breaking now? What is so special about Libor (something few in the mainstream understand) as compared to the mortgage frauds (which the average Joe understands quite well)?
There is a reason we are being handed this spectacle at this time. My simple answer is that Obama will use this to rebuild his relationship with his base – and as Romney can get lumped into the Wall-Street banker crowd, Obama will use this against Romney in the election.
However, it could be far bigger. Is there something big coming? Is it a diversion for something else, something big that the politicians (and central bankers) want to draw attention away from?
We are always tricked into looking at the wrong walnut shell. I don’t mean to diminish the events of Liborgate – if they are as reported, these were fraudulent actions. However, this certainly isn’t the biggest such story to emerge in the last five years – even if one ignores the biggest manipulator of all, the central banks and Federal Reserve.
Why this story? Why today? That is the question.