LIBOR Ain’t Nothing But an Acronym: We Must Abolish the Finance Capitalist Class | Black Agenda Report

LIBOR Ain’t Nothing But an Acronym: We Must Abolish the Finance Capitalist Class

11 Jul 2012

🖨️ Print Article

A Black Agenda Radio commentary by Glen Ford

The LIBOR scandal is only a big deal, in that it shows once again that global capital is a thoroughly criminal enterprise. Tinkering will not do – the class that created the system must be disempowered. The $1,000 trillion derivatives casino “is a bomb – a world-threatening monstrosity – that must be dismantled.” LIBOR is merely “a gauge on the console of the bankers’ crime machine.”

LIBOR Ain’t Nothing But an Acronym: We Must Abolish the Finance Capitalist Class

A Black Agenda Radio commentary by Glen Ford

“The system itself is a criminal enterprise that preys on the entire planet.”

The latest finance scandal concerns the LIBOR, the acronym for the interest rates banks offer each other for loans. Because the LIBOR rate is used as the basis for so many other financial calculations, some people say the scandal is potentially the biggest in the world. And then, there are those of us who wonder if the LIBOR case, in and of itself, really matters at all.

It is almost as if a bank has just been robbed, and the customers are all worried about the way that the robbers are calculating the value of the loot. The fact of the matter is, the robbery was an inside job. In this case, it appears that virtually all the big bankers and the people who were supposed to be regulating them were in on the crime – although, so far, only Barclays Bank in Britain has been fined. The banking system was not victimized by some shadowy group of predators who could be quarantined – after which all would be well. No, the system itself is a criminal enterprise that preys on the entire planet. What we have observed, most dramatically since the meltdown of 2008, is that the banksters who run the global financial criminal enterprise also control the political mechanisms of the western world. The state and, ultimately, the people pay the cost of the bankers’ crimes. Not only are the criminals not punished, they are rewarded with trillions of dollars in virtually free money from world’s central banks, including the U.S. Federal Reserve. This allows them to grow even bigger, and to commit ever larger criminal transactions, which the banks ultimately record as profits or pass on as losses to the public at-large.

“It appears that virtually all the big bankers and the people who were supposed to be regulating them were in on the crime.”

Mathematically speaking, the biggest impact of LIBOR rate-fixing occurs in the world of derivatives, a universe inhabited solely by finance capitalists. The realm of derivatives dwarfs the one in which the rest of humanity lives. There are, perhaps, $1,000 trillion in derivatives hovering over a real world economy that is valued at only $70 to $80 trillion a year. That means the derivatives economy that is the playground of Wall Street is 12 and-a-half to 14 times bigger, on paper, than the real economy. Put another way, the bankers routinely place bets that are bigger than the real world’s actual worth – much, much bigger than the value of all the goods and services produced by every man, woman and child on the planet. Clearly, the derivatives trade is a bomb – a world-threatening monstrosity – that must be dismantled.

The public’s interest is not in how phony LIBOR rates affect the prices of a thousand trillion dollars in derivatives. Rather, humanity desperately needs to abolish the derivative trade, altogether, before it crushes the real economy.

To abolish derivatives, we will have to put the banking class out of business.

Noted economist Nouriel Roubini says some of the bankers ought to be hanged in the streets, to teach them a lesson. What’s certain is, if you don’t hang them, they will use their control of the government to hang thousands of you. Forget LIBOR. It’s just a gauge on the console of the bankers’ crime machine. The criminal class, itself, must be eliminated from public life.

For Black Agenda Radio, I’m Glen Ford. On the web, go to BlackAgendaReport.com.

BAR executive editor Glen Ford can be contacted at Glen.Ford@BlackAgendaReport.com.

listen

http://traffic.libsyn.com/blackagendareport/20120711_gf_LIBOR.mp3

More Stories

Black Agenda Radio with Margaret Kimberley
Incarcerated Workers in Alabama File Lawsuit to End Involuntary Servitude
10 May 2024
Six incarcerated people in the state of Alabama have filed a lawsuit against their governor and the Commissioner of Corrections. Jessica Vosburgh with the Center for Constitutional Rights, which…
Black Agenda Radio with Margaret Kimberley
The State Crackdown on Dissent, Abortion Rights, and Congress Enforces Discipline on its Members
10 May 2024
Margaret Kimberley joined the Sputnik News program Political Misfits they discussed the crackdown on students demanding divestment from Israel, abortion rights, and how Congress enforces discipline…
Margaret Kimberley, BAR Executive Editor and Senior Columnist
Eric Adams and the NYPD Repress Dissent
08 May 2024
New York City Mayor Eric Adams may well be the very worst of the Black misleadership class. He takes great pleasure in supporting apartheid Israel and he conducted police raids and intelligence…
Editors, The Black Agenda Review
RESOLUTION: The Question of Palestine, Organization of African Unity, 1975
08 May 2024
Looking back at a time when African states acknowledged their shared anti-colonial struggle with Palestine and rebuked zionism for the white supremacist genocidal ideology and practice that it is.
Ann Garrison, BAR Contributing Editor
Rwanda: “Bad News: Last Journalists in a Dictatorship” Review
08 May 2024
Ann Garrison continues her series of reviews of books important to understanding the Rwandan Genocide and Rwanda as it is today during this 30th anniversary year of the 1994 massacres.