An interesting piece on Zerohedge.com which confirms what many have long suspected: LIBOR is not exactly an objective measure of inter bank lending rates.
It’s like finding out professional wrestling isn’t real, does it really matter?
The answer, of course, is that it does not matter…until it does.
Enjoy:
http://www.zerohedge.com/news/manipulation-and-abuse-confirmed-350-trillion-market
A very thorough explanation of the emerging irrelevance of the COMEX due to the permanent beach of trust highlighted in the MF Global fiasco.
Essentially the claim is that JP Morgan, in its rush to seize collateral, stole the precious metals held in COMEX vaults which rightfully belong to MF Global clients.
This is what is generally referred to as theft. However, the banking elites, who reserve the right to steal for themselves, prefer to call it “rehypothetication,” which simply means that something is pledged as collateral a second time. In this case, MF Global pledged the same collateral to their clients and JP Morgan.
When push came to shove, guess who MF Global and the CME Group (the owner of the soon to be defunct COMEX) threw under the bus?
It is becoming painfully obvious that the degree of fraud and theft required to keep the bankrupt financial system running is reaching a crescendo. What will December 31 bring?
Readers are advised to convert their paper assets to something tangible before their account becomes the victim of another bankrupt Wall Street firm’s margin call.
Click the link below to see the gory details rehashed at goldseek.com:
This was bound to happen. MF Global is the first of what will be many CME metals warehouse defaults. The MF Global clients will take a 28% haircut placing their faith in the CME’s oversight mechanisms, according to Barrons:
Barrons also reiterates that the CME still has not committed to back stopping the lost MF Global funds. Why any honest and informed person would continue to trade and store precious metals with the CME is beyond our limited comprehension.
Whether the missing MF Global client monies are eventually located, placed by the CME, replaced by Corzine and his accomplices, or not all, irreperable damage has been done to investor confidence as far as commodities go.
Equities won’t be far behind.
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