“In a meeting a couple of months ago, I happened to be in the audience with one of the Fed governors, Jeremy Stein. And at the end of his talk I said, ‘Governor Stein, can you help us understand the substantive difference, not the legal difference, but the substantive difference between the Fed’s manipulation of the federal funds rate, and the yield curve, and it’s talking up of the stock market -- the difference between that on the one hand, and LIBOR rigging in the private sector on the other?’
That was my question and I thought it was a pretty fine question....
“Governor Stein hemmed and hawed, and he said, ‘There’s no (pause), it’s not the same thing. It’s a criminal activity, these LIBOR riggers, and we are going to bring down the force of the law on their heads,’ or words to that effect.
So as corrosive as the alleged manipulation of the LIBOR rate might have been, it is nothing compared to the federal program of substituting price administration for price discovery. At the heart of the Fed’s regime is the subordination of freely discovered prices, to policy goals." (From KWN website)
My friends and family bad mouth silver and gold because they don't see anything wrong with the current system. Gold is just a lifeless, antiquated metal and there is no other stronger country in the world than the U.S.A. Interest rates won't rise and government indebtedness is not a problem.
But as hedge fund Blackstone now observes: "Blackstone: We're in an 'epic credit bubble'" (CNBC)
So who has it right? Jim Grant and Blackstone or the clueless public? Got silver????
The members of the British Bankers' Association forward their current rates every business day before 11 a.m London time. Just in concert with gold/silver. Overnight rate settlements determine the dollar and gold. The banking cartel sets LIBOR primarily to govern interbank lending rates, which is an overnight rate. The prime rate doesn’t play a regulatory role. Rather, it is the best deal available to the largest corporate and institutional customers of American banks. Changes in either rate can have enormous impact on opening gold prices, based on the transfers of money for real estate transactions or M&A. Trade isn't always primary. These are the LIBOR rates that change daily. Libor is actually a collection of rates for 10 currencies. Banks around the world borrow from each other at the Libor, and many consumer and commercial loans are derived from Libor plus a spread. So it's all fixed as in fixed or rigged. It's like a seesaw from day to day between all interest related transactions and currencies. It made to be that way. Getting to be a favorite saying - scratch my back today and I will scratch yours' tomorrow.
So it depends on the money transactions that big banks, cartel banks, Rothschild banks and central banks have in final (morning/daily) payment/receiving processing to determine currency and gold movement. Interest rate setting is the arm and can be seen in T's and Chicago futures.