There is a banking scandal taking place in England. It involves Barclays’ Bank and the Bank of England fixing interest
rates through fraudulent reporting of monetary predictors. This is LIBOR: The London InterBank Offered Rate. It’s important because
it’s the primary benchmark for short-term interest rates worldwide, so it dictates the cost at which banks, institutions and investors
can borrow money.
The big international banks have misrepresented these LIBOR rates in order to set savings and loan interest rates at what will make them, the corporate executives and stockholders, the most money, at the expense and without the knowledge or consent of their customers.
Basically, they set their savings interest rates very low and their loan interest rates very high, in order to make more money for themselves. And those rates do not bear any relation to the actual flow of money between the international financial insitutions.Notice that last phrase: “between the international financial institutions”. Among those are the same big banks that we have here in the United States. J.P.Morgan Chase, Bank of America, and Wells Fargo to name a few.
Interesting thought: there are only a few big banks left. And they all have offices on Wall Street, which we all know by now, or should if we’ve been paying any attention at all, are wrapped up in their own schemes to defraud the taxpaying public. President Bush’s bailout, which has been blamed on President Obama, played into that fraud, by not putting any restrictions on the bailout money. Those big banks all trade on the international market. And they all set their interest rates based on the financial indicators and predictors. So it’s a good bet that they’re all involved in this
fraud that is coming to light in England. Every one of them.
I recall when I was a teenager, mowing lawns for my pocket-money in Florida. I took some of that money to the bank down the road, got
a passbook that had printed in it the amounts of my deposits and withdrawals. That passbook was inserted in a machine that printed
out the type of transaction and the amount, plus the balance after the transaction.
At the time, in the early 1970’s, my bit of money was earning an interest rate of somewhere around 6%, compounded daily. But over the years, that interest rate gradually lowered, while the interest rates on loans gradually increased. It was barely noticeable as it was happening, unless you were paying close attention. And now you’re lucky if you get 2% on you savings. And unless you have a top credit rating, don’t even think about the rates on loans.
What this boils down to is that the banks, which have been eating each other up at an alarming rate through mergers and takeovers, are making more money while paying out less to their customers. And with the prices of necessities like food and shelter going up at what seems to be an increasing speed, our money is buying less. We have less buying power, even with more money.
I remember a McDonald’s commercial from my teen years; buy a burger, fries and a shake, and get change back from your dollar. Yeah, that’s right; a full meal for less than a dollar. And it was real food back then, too, not these chemically enhanced genetically altered junk they serve now. But that’s a whole different article.
suffice it to say that, as prices increase, value and quality decreases, in nearly all areas of the economy.
So what can we, as individuals and as a society, do to change the way things are going? There are a number of things that could work: start your own cooperatives for food and other goods and services. Barter for those same goods and services, which can ease the tax burden.
But I think the biggest thing to do, especially in conjunction with other methods of becoming self-sufficient, is to take all your money out of the big banks. Start accounts with small local banks, if there are any where you live. Or join a credit union. The only way, short of a massive change in the banking laws passed by Congress, is to deprive the crooks of their resources. Vote with your wallet or your purse. They will get the message. The Occupy Movement has shown that this can work, and work fast. Just look at how quickly Bank of America dropped new fees they wanted to impose
when people started removing their money.