Libor Is Not the Only Manipulated Economic Number

George Washington's picture

The Telegraph noted Monday:

[Bank of England executive] Paul Tucker told MPs that Barclays’ abuse of the Libor system may be only one part of the banks’ dishonesty over crucial financial information, suggesting that other markets should now be investigated.

An official inquiry into Libor – which helps determine interest rates for householders and businesses – should be broadened to include several over markets where banks are trusted to report their own data, he said.



The Libor scandal could be repeated in a number of other “self-certifying” markets where prices are determined, he said.


“Self-certification is clearly open to abuse, so this could occur elsewhere,” he said.


A Financial Services Authority inquiry into Libor should be extended to other self-certifying markets, he said. The Treasury said last night that the review, led by Martin Wheatley, was free to examine markets other than Libor.


An expansion of the FSA review could take in a number of other interest-rate-related data as well as some complex financial instruments measuring the difference between banks’ borrowing costs and that of the US government. [i.e. the Ted spread]. Some markets in gold and oil are also based on self-certification.

Mainstream commentators are starting to publicly discuss manipulation in the precious metals markets.  See this, this and this.

Avery Goldman noted last year:

On March 15, 2011, the Commodity Exchange (COMEX) and the New York Mercantile Exchange (NYMEX) advised the CFTC that they had approved J.P. Morgan's application to become a licensed vault facility, using a "self-certification" process. The newly licensed vault, located at 1 Chase Manhattan Plaza, NY, NY, is ready to roll as both “weighmaster” and depository, for delivery of gold, silver, platinum and palladium contracts, as of March 17, 2011, two days later."

ETFs, bullion banks, storage facilities and other holders of gold that are "self-certifying"  - without any checks by third party auditors - have been caught misreporting and raiding even allocated precious metals accounts, and using the loot to speculate or pay off other debts.

As such, manipulation in the self-certifying portions of the oil and gold markets could have a huge impact on assessing the true health of financial institutions, the economy as a whole, and the assets of individual investors.

There have also been allegations that the self-certifying derivatives indicator - iSwap - has been massively manipulated.  See this and this.

Indeed, given the massive fraud committed by the big financial players over the course of many years - and the shear scope and audacity of the Libor scam - it is safe to assume that most self-certifying markets are gamed.

Postscript:  Of course, even when there are third-party auditors, many of them are in on the fraud as well.

And many accuse government personnel of inaccurate reporting concerning such fundamental numbers as unemployment, (and see this and this), bank debts, inflation, gpd, and money supply.

Indeed, the U.S. and British governments seem to have encouraged interest rate manipulation.

The problem is not just giant, corrupt corporations.   Nor is it just giant, corrupt government. It is the the malignant symbiotic relationship between government and corporations against which people worldwide are struggling.

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Joebloinvestor's picture


They have the gall to accuse China of "currency manipulation".

bruiserND's picture

Common law fraud has nine elements:[6][7]
a representation of an existing fact;
its materiality;
its falsity;
the speaker's knowledge of its falsity;
the speaker's intent that it shall be acted upon by the plaintiff;
plaintiff's ignorance of its falsity;
plaintiff's reliance on the truth of the representation;
plaintiff's right to rely upon it; and
consequent damages suffered by plaintiff.
Most jurisdictions in the United States require that each element be pled with particularity and be proved with clear, cogent, and convincing evidence (very probable evidence) to establish a claim of fraud. The measure of damages in fraud cases is to be computed by the "benefit of bargain" rule, which is the difference between the value of the property had it been as represented, and its actual value. Special damages may be allowed if shown proximately caused by defendant's fraud and the damage amounts are proved with specificity


Careless Whisper's picture

The cartel Federal Reserve Bank may "participate" in the stock market and/or futures market for the purpose of influencing interest rates. It's AAA ok and the General Counsel for the Fed Reserve has openly admitted it. Hidden in plain view.








topshelfstuff's picture

Do they still manipulate the price of gold? Absolutely. Even though they deny it when they can. But there's the Howe lawsuit above. And then there's the Blanchard & Company law suit - - -

Barrick Gold has confessed that it and its bullion banker, JP Morgan Chase & Co., are the direct agents of the central banks in the international control of the gold price.

Barrick's confession was filed in U.S. District Court in New Orleans as part of a legal maneuver to gain dismissal of the federal anti-trust lawsuit brought against it and Morgan Chase by Blanchard & Co., the New Orleans-based coin and bullion dealer. Barrick moved to dismiss the Blanchard lawsuit on the grounds that the suit had failed to include as defendants some indispensable parties whose vital interests are at stake, the central banks; that the central banks, having what is called sovereign immunity against suit, simply could not be included in the suit; and that the suit therefore had to be dismissed.

The judge concluded that Barrick's motion to dismiss argued in effect that an illegal action involving so many powerful entities from all around the world is going to be immune from being challenged.

That's, as we say, not acceptable, Judge Berrigan said, denying Barrick's dismissal motion. --Bush's Barrick Corps drops bombshell From Gold Anti-Trust Action Committee (GATA), Tuesday 10 June 2003, 1:19a ET

According to GATA's Bill Murphy, Barrick settled with Blanchard & Co. out of court, admitting the manipulation -- AND that they were agents of the central banks.

So the defendants (Barrick and J.P. Morgan Chase) ran for cover behind "sovereign immunity," admitting they indeed were manipulating the gold price. But that was O.K. because the bankster/government axis told them to. (Axis? Well, U.S. Sec. Treas. Henry Paulson is past chair of bankster Goldman Sachs -- and of course, Robert Rubin, Clinton's longest serving Treas. Sec., had been bankster Goldman Sachs' Co-Chair too. Etc.)

Panafrican Funktron Robot's picture

The other big point being missed (and I didn't see this mentioned in George's article above) is the thing that is seemingly the most obvious, which is the Fed Funds rate.  Keeping in mind that the banks primarily responsible for setting LIBOR are also primarily responsible for setting Fed Funds (through the more official looking/less seedy appearing Federal Reserve Board of Governors), it becomes obvious that it's really just a few banking institutions that run the entire world.  This is well known to some of us, but I'd really like this point to be made a lot more amongst our "fringe blog" community, that LIBOR price fixing is done by the same people that price fix the Fed Funds rate, and those people are not elected officials, but the banks themselves.  The rogues gallery that fixes Fed funds and the LIBOR of every major world currency (ie., the true masters of the universe, note that even Goldman Sachs does not make the list, though they have substantial influence):

  • Barclays Bank
  • Deutsche Bank
  • HSBC
  • JP Morgan Chase
  • Lloyds Banking Group
  • The Royal Bank of Scotland Group

These banks are more powerful than the United States, the EU (and any member nation within the EU), IMF, UN (lol), NATO, etc.  They control the value of every single solitary monetary instrument (including even gold to a degree via it's price in various fiat).  They are the parasites, and every single human being (and must of the planet we inhabit) are their hosts.  

rsnoble's picture

Everything is a lie from the top down.  That's the only "trickle down" that's actually in place.

It works well for the rich meanwhile the peons who are starving because of these fucking assholes can go to prison for life stealing a candy bar 3x.

I'm ready, this house needs cleaned big time.

Offthebeach's picture

Winning in Vietnam.

Slum Clearance, Urban Renewal,Model Cities...

War on Poverty.

Public edgamakation.

Republican fiscal discipline.

Democrat welfare slaves.

ROMNEY administration will be different.

falak pema's picture

One statistic that is grossly manipulated in ALL first world economies is  : CPI.

As it determines cost of living and even salary indexing. Now that is a killer for governments who PRETEND life is not that bad after all for the common man. They cheat systematically on CPI calcs.

rwe2late's picture

 Federal budget projections, military/Pentagon costs, "terror" threat levels, agricultural crop projections, the international accounts of every large global corporation, credit ratings, and the expense tabs of just about every corporation.

And there is also  a built-in percentage that accounts are padded directly attributable to the traditionally recognized crime syndicates.

For example:

The IMF estimated global money laundering to be between 590 billion and 1.5 trillion dollars a year, representing 2-5 percent of global GDP. (Asian Banker, 15 August 2003).

kedi's picture

These guys are really on the ball. Thank goodness they are alerting us to this stuff in such a timely manner. There should be plenty of time to set this all right before anything negative might happen. It's no wonder they are in positions of such power and responsibility. God bless them.

Bansters-in-my- feces's picture

The whole financial system is a fucking manipulated ponzi.

Even my fucking weather is manipulated.

I was heavily sprayed all day again by chemtrail jets flown by american miltary, I believe this weather modification and atmospheric aresol spraying is terrorism and needs to be stopped ASAP.

Fuck YOU's ,anyone involved in spraying me daily.....fuck off and die.!!!

Bicycle Repairman's picture

So if free markets do not exist, what is the "therefore"?

HoofHearted's picture

Therefore, get your pitchforks, torches, tar, and feathers. We have to rise up against this fascistic system.

Vic Vinegar's picture

Yeah I once felt what you noted here too.  But then I realized all I can really do is buy physical.   

If you have better thoughts in terms of how to "rise up against this fascist system" please offer them.  Otherwise, I'm gonna stick with watching Katy Perry videos.  You would be wise to do the same. 

Unless of course, you have something more enlightening to say.

Panafrican Funktron Robot's picture

I would add that simply choosing to give a shit about your local community, including how it's governed, is a way to affect change on a personal level.  While this is a country that manages to consistently elect dipshits like Rahm Emmanuel, it's also a country that elects Jesse Ventura to govern entire states.  Dipshits like Rahm Emmanuel get elected to municipal/county/state elections all the time because people have been told those positions are insignificant and not worth voting on.  I promise they are.  Giving money to candidates, that $200 that somebody sends to the DNC or RNC will get you a thank you letter and endless fundraising phone calls, that same $200 gives you the ear of your alderman that might actually be able to do something about shit that directly affects your life.  Buy a few of them and get them in a room and ask them not to take out a loan/bond on shit we don't need.  JP Morgan can't sell you their garbage if you don't buy it.  Other stuff, like, volunteering to do shit like get food from a grocery store that they would otherwise toss out and give it to somebody that's in a shit situation, etc., volunteering to build a new playground set at your local park so that the city doesn't have to pay absurd wages, you get the idea.

Main point in general though, if we want to get to a society where the true utopia is a lack of governmental control, we need to walk the walk and actually get out there and live our lives with eachother and for eachother.  The real lie they're selling us in order to keep/grow their control is to sow the seeds of distrust in eachother as human beings.  Checking out of life and watching TV 35-40 hours a week is a pretty great example of how effective they've been.

NotApplicable's picture

Jesse won mainly due to same-day voter registration, a flaw which is most likely being corrected.

falak pema's picture

well don't put vinegar in your Katy Perry wine but put it in your citizen's salad, the dish you share with your fellow americans. Have a balanced diet and maybe you'll leave a future to your grandsons who want to dream of Katy's progeny in her pink wig! 

oldgasII's picture

The Telegraph had a link to a CNBC show where a Brit dropped a bomb saying oh yes the gold and silver markets are being manipulated.

Joebloinvestor's picture


Sounds like good advice.

knukles's picture

The whole system is broken.
Everything is an illusion, falsehoods.
Left to your own imagination, it could be OK or not.
Depends upon you.
How much do you want to believe?
And how many other need play the game for it to succeed?

Vic Vinegar's picture

Great comment.  You always have good comments but they are usually humorous. 

Per you questions, consider that between the amount of indoctrination people go through and the lack of clear 'better choice', the game is going to to continue on idefinitely and most certainly through the rest of our time here.  That doesn't mean despair.  Mankind is moving's just happening at a handicapped snail's pace.

NotApplicable's picture

"Reality" is nothing more than the most plausible belief system one can imagine.

tony bonn's picture

your conclusion about the collusion between big business and big government is precisely correct....the vermin cross polinate and produce epic evil and colossal corruption....

keep speaking the truth george!!!!!!!!!

Not Too Important's picture

Well, the NYFed is admitting they've been manipulating the markets for over a decade:

So when are the lawsuits against the Fed going to be filed? They're a private organization, not immune from securities laws.

Is Tucker advocating investigating the Fed? Sounds like it to me. Spread that blame around nice and thick.

And speaking of spreading the blame, the Paterno/Penn State report doesn't discuss who Sandusky shared those kids with. And not a word about the missing DA. All the victims will get rich, with quick out-of-court settlements, but truth? No. Anyone with morals wouldn't go near Penn State. There are other universities with high moral standards that will provide our children with a rich, meaningful educational experience, like Columbia and Harvard. Oh, wait . . . Apparently, Columbia doesn't require attendance to get a degree (BO). That must be cost effective . . .

NotApplicable's picture

Guess what? Greenspin and Benron are both wholly immune from prosecution from ANY entity as a result of their actions, due to being on the board of the BIS.

It's called the "criminal justice system" FOR A REASON.

battlestargalactica's picture

"Well make more fuckin' money. This is America. You don't make money, then you're a fuckin' douchebag."

~ Mr. French (Ray Winstone)

The Departed

4horse's picture

"your objective, is to make things so convoluted that anyone can have a theory, but no one's got the facts."

"yesss, that's quite good, jedburgh."


"i've been making things unintelligible for 30years  .  .  . "


ray winstone. edge of darkness

Walt D.'s picture

Unemployment, GDP, CPI - all of these numbers are manipulated. 

DaveyJones's picture

I hear the SEC even manipulates tangible digits while they sit at their computer

Snakeeyes's picture

Great point! It will come out that the Central Banks/regulators not only knew about it, but encourgaged it!!!!!!1

narapoiddyslexia's picture

They were pretty sure the UK government told them to do it....

Dingleberry's picture

So what is NOT manipulated, exactly?


Manipulation has been going on since the beginning of time. Remember what Eve did to Adam?

Sudden Debt's picture

Dance on his disco stick from dusk till dawn while bitting a apple?

idea_hamster's picture

 "Some markets in gold and oil are also based on self-certification."

No problem -- as long as I'm allowed to 'self-certify' that I have no gold when the confiscation jackboots show up.