For the last few days, the news reports, online and otherwise, have talked about the Barclays bank scandal involving LIBOR, which is one of the main rates the big banks set as the price at which they'll lend other banks money. One can be forgiven if their eyes roll back in their heads and their mind goes into hibernation mode upon hearing this, since the whole subject of how interest rates are set isn't exactly a pulse-quickening notion.
But even if it's not exciting, let me assure you--this is a BIG DEAL. A big F-ing deal, in the immortal words of our Vice President. So this post is permission to freak out, just a little, over the news.
The LIBOR scandal, if it's pursued to its end, will wind up demonstrating that the entire banking model is corrupted, made-up fakery--basically Al Capone-style organized crime with a nicer suit. In essence, what the scandal means is that the supposed "market" price of money that we all have signed on to with our credit cards, adjustable rate loans, etc.--you know, so many points over "prime," has been a racket--a fixed deal with extra profits built in for the banks. This means that everyone whose had a mortgage or a credit card in the last couple of decades has probably been ripped off, because the "market" has been rigged. It also means that everything about the money "market," from interest paid on savings to the BAZILLIONS of dollars paid by taxpayers for supposed "debt" for government operations hasn't been a fair bargain, but instead one that was being fixed by conspiracy and collusion of the large banks, who, coincidentally, own the central banks.
Here's a cool video that explains it.
So, this is big. If anyone in the Western World still has any brain cells left after years of Angry Birds and pharmaceutically-induced coma, it may just spell the end of the road for the banksters doing pretty much as they damn well please, while the world says, "thank you sir, may I have another?" Wouldn't that be nice?