LONGITUDINAL VIEW OF LieBOR CESSPIT
and on a serious note , dig the connection btween LIBOR Gate and gold / silver manipulations..
http://harveyorgan.blogspot.com/2012/07/gold-and-silver-bombedmore-fallout-from.html
*****
Gold and silver bombed/More fallout from PGF disaster/Fed away of the Libor lie/
Good evening Ladies and Gentlemen:
Gold closed down today to the tune of $9.30 to $1579.30. Silver also joined in the raid falling by 57 cents to $26.85. I was asked yesterday night about the sudden negative lease rates. I told the reader that this was a sure sign that a raid would be orchestrated. The second clue was the lackluster performance of the gold/silver equity shares yesterday. Together, a raid was forthcoming which is what I stated would happen.
I have also stated that Libor is manipulated constantly to keep gold from entering backwardation and for allowing gold/silver to be borrowed cheaply by our crooks.
Fellow Canadian Rhody, one of the best out there on this issue stated this today:
The drop in gold lease rates is ominous as this generally means the cartel leased a huge pile of gold they don't actually own and are about to dump it on London. I may be wrong and the big surge in leasing may be merely to meet delivery demands, but the pattern from the past is that this leads to a cartel attack on gold. That drop in lease rates is manufactured by dropping LIBOR over the desired period below the FORWARD RATE so the bullion banks get the metal at very artificially low rates. In all this talk about manipulating LIBOR, nobody has mentioned lease rates. DROPPING LIBOR BELOW FAIR MARKET RATES ALLOWS THE BANKS TO LEASE AND DUMP GOLD INTO THE MARKET AT ARTIFICIALLY LOW BORROWING COSTS. So that drop in lease rates is VERY ominous. The worse part is the lease rates have flipped, with the ONE YEAR RATE NOW LOWER THAT THE ONE MONTH RATE. DO I BELIEVE MY EYES!?????? Since the one year term and longer is the usual lease rate period of the MINES, I can only conclude that the mines are being strongly encouraged to HEDGE their production. This puts us back under the market conditions more typical of a decade ago. Well, look at the price of the mining shares! If mine managements start hedging here, they will drop the price below total marginal cost rather quickly, and if you thought these idiot shares were cheap before, wait until next year!Please note that negative lease rates do NOT indicate that you can borrow gold for free, or worse, that bullion banks will pay you to borrow gold. A gold, or silver lease is made at LIBOR as per the following formula: Lease Rate = Libor - Forward Rate The lease rate is the 'fee' that the bullion bank obtains in setting up the lease contract. If Libor is dropped artificially below the Forward Rate, the Lease Rate becomes NEGATIVE, which means the bullion bank is arranging the gold loan below 'cost'. Basically 'below cost' means free as the cost is arbitrary. Low, or negative lease rates mean that leasing is a dying practice, but this assumes that leasing is being done for a profit motive. This, of course is untrue. Leasing is done for political reasons: to manage the price of gold. Expect lease rates to remain low or negative as the monetary system becomes increasingly stressed. The bigger question is, with LIBOR so low, who would be foolish enough to lend their gold? Central banks, even Western central banks must be uneasy about further drops in their gold reserves. That leaves private bullion accounts, etf stockpiles. and commodity futures stockpiles as the only remaining sources. I think these accounts are being raided without client consent via rehypothecation, and leased out. Note: central banks probably have less than 10% of the total above ground gold stockpiles. The rest is privately held. Raiding this private gold stockpile seems to be the only viable source of the gold that flows eastward out of London. Please note that LIBOR should roughly equal the treasury note yield for each lease period term. Should Treasury yields drop (they are) then the real rates for leasing gold will also drop as LIBOR is forced down. We hear about central banks in Europe setting interest rates at zero or less. Can you see private holders of gold lending out their metal for free? I can't, so negative LIBOR will either not happen or it will but the bullion will be 'leased' out without the knowledge or permission of the owner. Do NOT store bullion within the reach of the financial system.
Regards, Rhody.Gold closed down today to the tune of $9.30 to $1579.30. Silver also joined in the raid falling by 57 cents to $26.85. I was asked yesterday night about the sudden negative lease rates. I told the reader that this was a sure sign that a raid would be orchestrated. The second clue was the lackluster performance of the gold/silver equity shares yesterday. Together, a raid was forthcoming which is what I stated would happen.
I have also stated that Libor is manipulated constantly to keep gold from entering backwardation and for allowing gold/silver to be borrowed cheaply by our crooks.
Fellow Canadian Rhody, one of the best out there on this issue stated this today:
The drop in gold lease rates is ominous as this generally means the cartel leased a huge pile of gold they don't actually own and are about to dump it on London. I may be wrong and the big surge in leasing may be merely to meet delivery demands, but the pattern from the past is that this leads to a cartel attack on gold. That drop in lease rates is manufactured by dropping LIBOR over the desired period below the FORWARD RATE so the bullion banks get the metal at very artificially low rates. In all this talk about manipulating LIBOR, nobody has mentioned lease rates. DROPPING LIBOR BELOW FAIR MARKET RATES ALLOWS THE BANKS TO LEASE AND DUMP GOLD INTO THE MARKET AT ARTIFICIALLY LOW BORROWING COSTS. So that drop in lease rates is VERY ominous. The worse part is the lease rates have flipped, with the ONE YEAR RATE NOW LOWER THAT THE ONE MONTH RATE. DO I BELIEVE MY EYES!?????? Since the one year term and longer is the usual lease rate period of the MINES, I can only conclude that the mines are being strongly encouraged to HEDGE their production. This puts us back under the market conditions more typical of a decade ago. Well, look at the price of the mining shares! If mine managements start hedging here, they will drop the price below total marginal cost rather quickly, and if you thought these idiot shares were cheap before, wait until next year!Please note that negative lease rates do NOT indicate that you can borrow gold for free, or worse, that bullion banks will pay you to borrow gold. A gold, or silver lease is made at LIBOR as per the following formula: Lease Rate = Libor - Forward Rate The lease rate is the 'fee' that the bullion bank obtains in setting up the lease contract. If Libor is dropped artificially below the Forward Rate, the Lease Rate becomes NEGATIVE, which means the bullion bank is arranging the gold loan below 'cost'. Basically 'below cost' means free as the cost is arbitrary. Low, or negative lease rates mean that leasing is a dying practice, but this assumes that leasing is being done for a profit motive. This, of course is untrue. Leasing is done for political reasons: to manage the price of gold. Expect lease rates to remain low or negative as the monetary system becomes increasingly stressed. The bigger question is, with LIBOR so low, who would be foolish enough to lend their gold? Central banks, even Western central banks must be uneasy about further drops in their gold reserves. That leaves private bullion accounts, etf stockpiles. and commodity futures stockpiles as the only remaining sources. I think these accounts are being raided without client consent via rehypothecation, and leased out. Note: central banks probably have less than 10% of the total above ground gold stockpiles. The rest is privately held. Raiding this private gold stockpile seems to be the only viable source of the gold that flows eastward out of London. Please note that LIBOR should roughly equal the treasury note yield for each lease period term. Should Treasury yields drop (they are) then the real rates for leasing gold will also drop as LIBOR is forced down. We hear about central banks in Europe setting interest rates at zero or less. Can you see private holders of gold lending out their metal for free? I can't, so negative LIBOR will either not happen or it will but the bullion will be 'leased' out without the knowledge or permission of the owner. Do NOT store bullion within the reach of the financial system.
and.....
http://www.silverdoctors.com/timmy-geithner-held-libor-fixing-meeting-w-fed-in-2008/
Timmy Geithner Held ‘LIBOR FIXING’ Meeting w/ Fed in 2008
Move over Barclays, BOE, and Paul Tucker- US Treasury Secretary Timothy Geithner and the NY Fed’s William Dudley just moved front and center in the escalating LIEBORGATE scandal.
Reuters reports that Geithner, then head of the NY Fed, held a ‘Fixing LIBOR’ meeting with at least 8 Fed officials on April 28th, 2008!
Now that Geithner and Dudley have been fully implicated in the LIEBORGATE, it’s only a matter of time before The Bernank himself is caught up in the scandal.
The entire house of cards is now completely crumbling!
According to the calendar of then New York Fed President, Timothy Geithner, who is now U.S. Treasury Secretary, it even held a “Fixing LIBOR” meeting between 2:30-3:00 pm on April 28, 2008. At least eight senior Fed staffers were invited.
It is unclear precisely what was discussed at this meeting or who attended.Among those invited, along with Geithner, was William Dudley, who was then head of the Markets Group at the New York Fed and who succeeded Geithner as its president in January 2009. Also invited was James McAndrews, a Fed economist who published a report three months later that questioned whether Libor was manipulated.
“A problem of focusing on the Libor is that the banks in the Libor panel are suspected to under-report the borrowing costs during the period of recent credit crunch,” said that report in July 2008 that examined whether a government liquidity facility was helping ease pressure in the interbank lending market.
When asked for comment, McAndrews directed questions to a New York Fed spokeswoman. Dudley could not be immediately reached for comment.
With this damning evidence that not only was the NY Fed aware of Barclay’s manipulation of LIBOR but the NY Fed in fact held rate fixing meetings, the LIEBORGATE scandal has just escalated by several orders of magnitude. The fact that the Western Central banks openly MANIPULATE ALL MARKETS is about to be entirely exposed to the general public and the MSM.
and.....
http://hat4uk.wordpress.com/2012/07/10/planetary-rates-scam-nobody-can-deny-it-now/
PLANETARY RATES SCAM: Nobody can deny it now
Reuters joins MSM chorus accepting global knowledge of Libor frauds
Further to previous Slogposts about the multinational nature of Libor manipulation – and the authorities’ knowledge of the same – Reuters said this today….
‘The Federal Reserve Bank of New York may have known as early as August 2007 that the setting of global benchmark interest rates was flawed. Following an inquiry with British banking group Barclays Plc in the spring of 2008, it shared proposals for reform of the system with British authorities.
The role of the Fed is likely to raise questions about whether it and other authorities took enough action to address concerns they had about the way Libor rates were set, or whether their struggle to keep the banking system afloat through the financial crisis meant the issue took a backseat.
A New York Fed spokesperson said:
“In the context of our market monitoring following the onset of the financial crisis in late 2007, involving thousands of calls and emails with market participants over a period of many months, we received occasional anecdotal reports from Barclays of problems with Libor. In the Spring of 2008, following the failure of Bear Stearns and shortly before the first media report on the subject, we made further inquiry of Barclays as to how Libor submissions were being conducted. We subsequently shared our analysis and suggestions for reform of Libor with the relevant authorities in the UK.”‘
It is hard to believe than anyone with a brain could still believe that rate fixing is restricted to any one continent, let alone one bank in one country.
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