Robert Scheer on Libor: Modern international bankers form a class of thieves the likes of which the world has never before seen - on a scale that is almost impossible to comprehend

how massive does the fraud have to be, how many trillions of dollars does it have to involve, how many millions of people have to be ripped off, and how many more of these mega-crimes have to surface before these global criminals are stopped, and by stopped, i mean arrested, indicted, convicted and put away...?

robert scheer in truthdig...

The current Libor interest rate scandal, involving hundreds of trillions in international derivatives trade, shows how the really big boys play. And these guys will most likely not do the time because their kind rewrites the law before committing the crime.

Modern international bankers form a class of thieves the likes of which the world has never before seen. Or, indeed, imagined. The scandal over Libor—short for London interbank offered rate—has resulted in a huge fine for Barclays Bank and threatens to ensnare some of the world’s top financiers. It reveals that behind the world’s financial edifice lies a reeking cesspool of unprecedented corruption. The modern-day robber barons pillage with a destructive abandon totally unfettered by law or conscience and on a scale that is almost impossible to comprehend.

here's more from al jazeera...



and here's a longer treatment of the scandal from al jazeera's inside story with economist bill black making a guest appearance...




and, finally, this from current tv's viewpoint...

"Viewpoint" host Eliot Spitzer, Matt Taibbi, Rolling Stone contributing editor, and Dennis Kelleher, president and CEO of Better Markets, analyze the Libor interest rate--rigging scandal engulfing the banking industry.

Barclays CEO Bob Diamond recently resigned after the bank was fined $453 million for its part in the scandal, which involved manipulating the London Interbank Offered Rate (Libor), a key global benchmark for interest rates, by essentially "faking their credit scores," according to Taibbi. And as Taibbi explains, Barclays couldn't have acted alone.

"It can't just be Barclays and the Royal Bank of Scotland. In fact, it can't even be four banks or even five banks," he says. "Really, in the end it's probably going to come out that it's going to be all of them ... involved in this. And that's what's critical for people to understand: that this is a cartel-style corruption."

Kelleher argues that the Libor scandal is proof that the financial industry "is corrupt and rotten to its core." "The same executives [using] the same business model that crashed the entire financial system in '08 are still running these banks," he says.

 

why does accountability and the rule of law only apply to the peasants...?

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Bernie Sanders: The American people are angry

from senator sanders youtube site...



yes, indeed, the american people ARE angry and rightfully so... we've been screwed sixteen ways from sunday by our super-rich elites, their criminal banker colleagues and their bought-and-paid-for government officials... it's all part of the grand plan to control all the world's money and resources while keeping the peasant class in thrall to keep it all running to their benefit...

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An open letter from the peasants to the MOTU

author unknown...

You control our world. You’ve poisoned the air we breathe, contaminated the water we drink, and copyrighted the food we eat. We fight in your wars, die for your causes, and sacrifice our freedoms to protect you. You’ve liquidated our savings, destroyed our middle class, and used our tax dollars to bailout your unending greed. We are slaves to your corporations, zombies to your airwaves, servants to your decadence. You’ve stolen our elections, assassinated our leaders, and abolished our basic rights as human beings. You own our property, shipped away our jobs, and shredded our unions. You’ve profited off of disaster, destabilized our currencies, and raised our cost of living. You’ve monopolized our freedom, stripped away our education, and have almost extinguished our flame. We are hit… we are bleeding… but we ain’t got time to bleed. We will bring the giants to their knees and you will witness our revolution!

Sincerely,

The Serfs

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Hedges: Transforming a democratic state into a feudal system of corporate masters and serfs

which has been the plan all along...

chris hedges...

A nation that destroys its systems of education, degrades its public information, guts its public libraries and turns its airwaves into vehicles for cheap, mindless amusement becomes deaf, dumb and blind. It prizes test scores above critical thinking and literacy. It celebrates rote vocational training and the singular, amoral skill of making money. It churns out stunted human products, lacking the capacity and vocabulary to challenge the assumptions and structures of the corporate state. It funnels them into a caste system of drones and systems managers. It transforms a democratic state into a feudal system of corporate masters and serfs.

sigh... i hate posting on the truth but better that than sticking my head in the sand...

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We need an open internet - "That's Bullshit" with Sam Seder

i've lost track of the petitions and pleas and letters and faxes i've signed and sent begging that the internet be allowed to remain open and unconstrained by greedy corporations hell-bent on profits...

the combo of my laptop and rapid, readily available internet access literally makes my current life possible... every few months, i'm on the move, conducting my personal life and my business from different cities, different time zones, different countries and different continents... from the keyboard of my laptop, i shop, make travel arrangements, conduct business correspondence, make phone calls, hold business meetings, keep in touch with family and friends, do my banking, conduct research, post material for students in my classes, keep up with news and current events, and a thousand and one other things that are an essential part of my daily routine... the last thing i need is to have some money-crazed corporation telling me what i can access and what i can't or throwing pay-as-you-go speed bumps in the way of doing what i need to do...

sam seder courtesy of atrios...



capitalism and the profit motive ran amok a long time ago... there's going to come a time - and i predict it will be soon - when there will simply be no more blood money to be squeezed from us turnips peasants...

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Joe is running in the red every month

from zero hedge, a guest post by graham summers...

It’s Impossible to “Get By” In the US

While the market cheers on the fantastic job “growth” of March 2010, the more astute of us are concerned with a growing tide of personal bankruptcies. March 2010 saw 158,000 bankruptcy filings. David Rosenberg of Gluskin-Sheff notes that this is an astounding 6,900 filings per day.

but wait, there's more...

In 2008, the median US household income was $50,300. Assuming that the person filing is the “head of household” and has two children (dependents), this means a 1040 tax bill of $4,100, which leaves about $45K in income after taxes (we’re not bothering with state taxes). I realize this is a simplistic calculation, but it’s a decent proxy for income in the US in 2008.

Now, $45K in income spread out over 26 pay periods (every two weeks), means a bi-weekly paycheck of $1,730 and monthly income of $3,460. This is the money “Joe America” and his family to live off of in 2008.

Now, in 2008, the median home value was roughly $225K. Assuming our “median” household put down 20% on their home (unlikely, but it used to be considered the norm), this means a $180K mortgage. Using a 5.5% fixed rate 30-year mortgage, this means Joe America’s 2008 monthly mortgage payments were roughly $1,022.

So, right off the bat, Joe’s monthly income is cut to $2,438.

According to the US Department of Agriculture, the average 2008 monthly food bill for a family of four ranged from $512-$986 depending on how “liberal” you are with your purchases. For simplicity’s sake we’ll take the mid-point of this range ($750) as a monthly food bill.

This brings Joe’s monthly income to $1,688.

Now, Joe needs light, energy, heat, and air conditioning to run his home. According to the Energy Information Administration, the average US household used about 920 kilowatt-hours per month in 2008. At a national average price of 11 cents per kilowatt-hour this comes to a monthly electrical bill of $101.20.

Joe’s now down to $1,587.
Now Joe needs to drive to work to make a living. Similarly, he needs to be able to drive to the grocery store, doctor, etc. According to AAA, the average cost per mile of driving a minivan (Joe’s a family man) in 2008 was 57 cents per mile. This cost is based on average fuel consumption, tires, maintenance, insurance, license and registration, and average loan finance charges.

Multiply this cost by 15,000 miles per year and you’ve got an annual driving bill of $8,550. Divide this into months (by 12) and you’ve got a monthly driving bill of $712.

Joe’s now down to $877 (I’m also assuming Joe’s family only has ONE car). Indeed, if Joe’s family has two cars (one minivan and one sedan) he’s already run out of money for the month.

Now, assuming Joe’s family is one of the lucky ones (depending on your perspective) they’ve got medical insurance. Trying to find an average monthly medical insurance premium for a family in the US is extremely difficult because insurance plans have a wide range in deductibles, premiums, and co-pays. But according to eHealth Insurance, the average monthly premium for family policies in February 2008 was $369.

So if Joe has medical insurance on his family, he’s now down to $508. Throw in cell phone bills, cable TV and Internet bills, and the like, and he’s maybe got $100-200 discretionary income left at the end of the month.

and here's the kicker...

If Joe:

1) Overpaid on his house
2) Didn’t have a full 20% down payment
3) Owns two cars
4) Eats at restaurants
5) Splurges on heating & A/C bills
6) Has any medical expenses aside from monthly premiums…

… he is running into the red EVERY month.

[...]

This is why there simply cannot be a sustainable recovery in the US economy. Because we outsourced our jobs, incomes fell. Because incomes fell and savers were punished (thanks to abysmal returns on savings rates) we pulled future demand forward by splurging on credit. Because we splurged on credit, prices in every asset under the sun rose in value. Because prices rose while incomes fell, we had to use more credit to cover our costs, which in turn meant taking on more debt (a net drag on incomes).

And on and on.

Does this mean the market is about to tank? Not necessarily, stocks have been disconnected from reality since November if not July. Bubbles (and we ARE in a bubble) take time to pop and this time around will be no different.

ya gotta love the "recovery"...

(thanks to kevin at cryptogon...)

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Owning is being - we have become what we own

joe bageant...

There is a terrible science fiction-like awe in the autonomous American economic monolith, in the way that it provides for us, feeds on us and keeps us as its both its lavish pets and slaves. The commodity economy long ago enslaved Americans and other "developed" capitalist societies. But Americans in particular. The most profound slavery must be that in which the slaves can conceive of no other possible or better world than their bondage. Inescapable, global, all permeating, the commodities economy rules so thoroughly most cannot imagine any other possible kind of economy.

It comes down to owning stuff, and that the stuff we own also owns us (as anyone paying rent for a storage locker can attest). Transmogrified by industrial materialism, we have become what we own. More specifically, what we are observed by the rest of our society as owning. In the commodified society of industrial materialism, owning is being. So much so, that politicians bandy the term "ownership society" about, not only without causing the public to gag, but to cheers. Even liberals who claim to dislike the term don't want to be in a "We don't own shit society."

[...]

Loathe as Americans are to believe it, the Mexican people and the American people are in the same situation of being mugged. However, they are robbed at a different rate and from different positions in the global pecking order. We rob the Mexicans and global capitalism robs us. Fortunately we can still afford to buy our national food staple from Dominoes. Which makes us a superior people.

[...]

Americans are hope fiends. We always see hope somewhere down every road, chiefly because honestly looking at the present situation would destroy just about everything we hold as reality. Personally, as I often state and catch readership hell for, I do not like hope. When Obama ran it up the flagpole for us to salute, and so many saluted, my blood chilled. Made me feel that we were all in deeper shit than I had supposed (Nevertheless, I reluctantly voted for Obama. At the time it seemed It was either Obama, or continuing war, debt, and diminishing civil liberties. Ha!) Hope is magic thinking, believing that somehow, some larger unknown force is in motion to set things right.

The world is what it is, and its injustices are set right by peoples and nations morally intact enough to challenge its malevolent forces.

Hope is political pabulum for an infantilized nation.

and, at the conclusion of an almost unbearably cynical rant - a rant with which i profoundly and gloomily agree - joe abruptly and unexpectedly captures my own present mood...

In all honesty, I am sick of thinking about it, tired of burning up unrecoverable hours at the end of my 63-year old candle writing about it. So are many of my colleagues in cybernetic left-space.

Distance and solitude seem the only refuge. Which is why I am "aging Mexican," and almost monastically absorbed in the small daily rituals of sustenance these days. I do not kid myself that it is permanent or a real solution to the unbearable ugliness of the American condition.

But at the moment, four AM, a cricket chirps in the orange tree by my window, and my tortillas are perfectly lovely.

while i'm not one to be found cooking tortillas at 4 a.m., i do find myself increasingly engaged in mundane, mindless ritual, often in the quiet of solitude... there is something deeply comforting about lying on my sofa in the afternoon in my leafy little corner of buenos aires watching the sunlight sparkle and dance off the deep green leaves as they rustle softly in the breeze or, in the evening, listening to the sounds of the neighborhood as it putters about before settling down into the late night quiet... it tends to make all the sucking up of internet news headlines that i seem helpless to stop doing just a bit more tolerable...

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Happy Labor Day...? Not so much... A holiday outpouring of truth...

here's some of the juicier parts of juan cole's labor day rant... it's a beaut and i strongly suggest reading the whole thing... it captures what should be the essence of this day and places it firmly in the context of our present, sad reality...

The unemployment rate as a write is inching toward 10 percent nationally, and that is only counting people who were still looking for a job recently. A vast bank robbery by the corrupt on Wall Street has robbed them of the credit that made the economy go. Labor Day was passed by Congress under Grover Cleveland to celebrate not only the individual American laborer but the labor movement-- yes, unions, workers' parades, hard hats and blue jeans (before the youth movement of the 1960s appropriated them, blue jeans were working class clothing, and my working class relatives upbraided me for wearing them as an undergraduate) . It is to celebrate all those icons that shills for the barracuda billionaires, such as Glenn Beck, now castigate as "fascist" and "communist."

[...]

The closest we get to celebrating the workers who built this country is when we talk about "working families," an odd locution, since aside from the idle rich who defrauded the country into bankruptcy last fall, wouldn't that be everyone?

[...]

Fewer effective unions have left American workers at the mercy of predatory company policies. Government has, since Ronald Reagan (who hated organized workers the way the devil hates holy water), also socially-engineered the tax laws so as to throw enormous further wealth at the wealthy. As a result, the average wage of the average worker in the United States has not increased since 1970 (in 2004 the bottom 60% of the population was actually making less in real terms per capita each year than in 1979). In contrast, the top 1% of the population by income now takes home nearly 20% of the country's annual income. The top 1%, about 3 million persons, has gone from owning 25% of the privately held wealth in the 1950s under Eisenhower to owning over a third today. The top 10 percent of Americans own almost all the country's privately-held property.


[...]

Reagan-Cheney between 1980 and 2008 created a new American aristocracy, a small sliver of super-rich, who buy and sell legislators, create whole "news networks" to present far right wing fantasies as "news," have their lackeys invade and occupy whole countries, hold themselves above the law, falsify financial statements, and suffer little or no punishment for stealing billions from the pensions of "working families" (i.e. those of us about whom P.T. Barnum remarked, "one is born every minute".) The Republican Party has come to represent these super-rich. Since .1% of the population couldn't actually win elections, they ally with other groups in society. About two-thirds of evangelicals have joined up with them, about a third of Latinos, significant numbers of mid-western rural families, and obviously large numbers of white southerners. In some cases these are lower middle class people on the make, who want to hitch their wagons to the brightest stars in the sky. In others, they share with the super-rich various resentments of the federal government. This alliance of odd bedfellows (think of Paris Hilton married to Joe Sixpack) is what produces the wackiness of Republican Party politics and media. They can't come out and say that they want the country run for the benefit of 300,000 multi-millionaires and billionaires (almost all of them white), so they say they are all in favor of guns, apple pie, Jay-sus and the Confederacy.

[...]

represents the poor schmucks who make up the 80 percent of the population that has been reduced to peasants by our new dukes, viscounts and princesses who have captured the lion's share of the country's wealth and income. Obviously, elements in the top 20% (and even more so in the top 1%) are not happy about any outbreak of democracy.

oh, god forbid we should even FLIRT with real democracy...

professor cole closes with this and a quote from carl sandberg's poem, chicago...

I celebrate today the organized workers, the ones who can push back against the crooks in pinstripe:

Bareheaded,
Shoveling,
Wrecking,
Planning,
Building, breaking, rebuilding,
Under the smoke, dust all over his mouth, laughing with
white teeth,
Under the terrible burden of destiny laughing as a young
man laughs,
Laughing even as an ignorant fighter laughs who has
never lost a battle,
Bragging and laughing that under his wrist is the pulse.
and under his ribs the heart of the people

i see our new class of peasantry wherever i look these days - immigrant labor mowing lawns, joe sixpacks driving fedex delivery vans, stooped, elderly women ringing up purchases at walmart, young teens taking orders at fast food restaurants, middle-aged men manning security guard posts... we're all falling into line, taking our places in the service economy, eating highly processed, unhealthy food, going home to a house with an underwater mortgage to relax in front of our new giant, flat-screen tv that we bought on credit last december...

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