The Emerging LIBOR Scandal

This is what you need to understand about LIBOR - It's stands for the London InterBank Offered Rate. So what does that mean? It's basically the rate that banks around the world are lending money to each other. And the way it's calculated is each day - the banks submit what rate they can afford to borrow money at - and the average of what all the banks submit becomes the LIBOR rate. But what's really important to remember here is - LIBOR doesn't just apply to the rate banks lend money to each other. It also applies to the rate that we consumers pay on several different types of loans - including mortgages, car loans, and credit card rates. So if those rates are manipulated by banks - and artificially driven higher - then it affects a lot of people - and leads to working people paying more on their loans. Which is exactly what happened.

Earlier this week - the CEO and COO of Barclays bank resigned after it was revealed their bank was routinely manipulating LIBOR rates between 2005 and 2009. Barclays has since been hit with a $450 million fine for this criminal activity. But the question is - was Barclays alone in this? Or were other banks involved as well - and not only that - were governments and regulators involved in the scam too? Disgraced Barclays CEO Bob Diamond is alleging just that. As the Washington Post reported on Wednesday: "Fallen banking titan Bob Diamond on Wednesday described regulators on both sides of the Atlantic as partly complicit in a scandal involving the manipulation of a key interbank lending rate, telling a British parliamentary committee that government watchdogs had failed to act after his bank, Barclays, informed them of industry-wide irregularities during the U.S. financial crisis." So just how deep does this scandal go - and how much money did the banksters make this time screwing us? For more on this story - I want to welcome Max Fraad Wolff back to the show - he is an Economist an Instructor with the Graduate Program in International Affairs at the New School University.

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News & Politics

The GOP Failure of 2011

The GOP has blocked almost everything the president has proposed for 3 years. Their only goal is to make Obama a one term president and it is costing all of us a balanced, working capitol hill and the sanctity of the democratic process. It is immoral to campaign with the power of law making but it is traitorous to do it for 3 years.

This has driven the confidence in every branch of government into the the depths of mistrust. Taking both parties down with it. This Fox News based, reactionary, divided nation, ideology is a seed of destruction. The GOP retook The House with promises of jobs, jobs, jobs. Where are they?

Any group who took part in a blatant anti-American activity would be tried for TREASON, and that is exactly how I view the behavior of these loathsome republican'ts, as treasonous!

Republican'ts aren't even pretending to do anything other than block procedure and choke participation in the democratic process. They would rather turn the US of A into a third world country in less than 5 years, than let President Obama be the great president he's more than capable of being.

Now more than ever we need hard term limits, so we can rid our government of these self serving career politicians who do NOT represent their constituents or do their jobs, and only strive for re-election and to line their own and their corporate owners' pockets with ill gotten taxpayer dollars.

For-profit health care hurts those who need it most

7/31/09 - by Hugh Curran

There is much debate about health care yet little consideration for the ethical implications, especially the appropriateness of profit motives in the health care industry.

Americans do not seek to make a profit from education (kindergarten to grade 12), fire or police departments, yet people seriously listen to “industry” lobbyists who believe this to be a right in health care.

The philosopher Martin Buber defined “evil” as resulting from “indecision.” Where health care is involved there is a good deal of indecision, but this indecision is largely the result of disinformation by those who profit from health care.

If we begin with the understanding that the health of the whole country contributes to the health of each of us, we can ask if private interests, wishing to maximize profit, should be the arbiters of the public good.

They are investor-owned businesses that design health care systems that benefit their investors. From recent polls we know that two-thirds of the public would prefer a system with a public option.

More than 60 percent of physicians wish for such a system.

Unlike the propaganda of corporate representatives, a public option in health care would provide free choice of physicians for the patient.

Lobbyists shamelessly portray the Canadian system in a negative light although I have yet to meet a Canadian who would be willing to adopt the American model. In fact, no country that has a public option would change to the American model for the simple reason that they know that a health care system based on profits would deny insurance to those who are most in need.

According to the World Health Organization, the U.S. ranks low in two of three main categories associated with health care: preventive care and cost of care. It is true that in a couple of categories the U.S. excels, such as surgery and medical technology, but there are many other criteria for good health, especially in the area of preventive medicine.

In France, whose general health care system is highly regarded throughout the world, providers satisfy the three categories: They provide easier access to medical facilities; life spans are longer; there is lower child mortality, and there is guaranteed health care from cradle to grave financed through tax revenues. The government’s role is to make sure that the whole population has access to care. It protects patients’ rights, helps to work out policy and is the responsible party where health safety is concerned.
Despite this, it is not a single payer.

America now pays out 17 percent of its gross national product on health while France, Canada and England pay less than 10 percent. The trillion-dollar additional cost that has been under discussion in Congress is based on a 10-year cycle that amounts to $200 billion per year.

Compared to the trillion-dollar bailout of banking interests on Wall Street and the trillion-dollar war in Iraq and the continuing hemorrhaging of the auto industry, this is a reasonable amount.

The real reason there are such vehement arguments over public options versus private plans does not involve which is superior but which approach has the most to lose. Large corporations, whether HMOs or pharmaceuticals, are intent on creating indecision and doubt in the minds of many Americans concerning universal health care. Most medical professionals, including the 3 million-member American Nursing Association and the American Medical Association, have endorsed health care plans with public options.

But with all the lobbying taking place by corporate interests there is a real danger that the public option will be removed. This would be a major setback for both working and unemployed Americans. At this moment 14,000 people per day are losing their health care because of the current downturn in the economy.

Democracy cannot long survive if the gaps between rich and poor continue to increase and continue shifting us toward a small wealthy minority and a disappearing middle class. Health care is the largest cause of bankruptcy among the elderly. It bleeds and depletes the resources of families even when one person suffers a serious accident or illness.

Although we pay twice the amount per capita as do other developed countries, the results are that we are less healthy. Let us support a public option based on the common good.

Hugh Curran of Surry is an adjunct professor in peace studies at the University of Maine. He previously was the director of a Down East homeless shelter.

Bush Approval Map: No Safe Districts for GOP

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