How LIBOR worked, and what it meant, from someone who saw the inside

KI wasn't sure where to post this, but since there doesn't appear to be a finance conspiracy forum, I suppose this is the next best thing. I didn't realize until the CT shooting that I was involved with the LIBOR scandal. I never benefitted from it--I got out when I realized what was going on--and I can share everything that I know (such as it is) without fear of implicating myself in any way. Fair warning, I signed a confidentiality agreement (years and years ago) but as none of the companies with which I dealt exist any more (except the banks) I'm not too afraid of anyone coming after me.

First, understand how it started. In 2002 I came up with a few really groundbreaking ideas for technology surrounding the MMORPG industry, which was still growing. I discussed the ideas with some trusted friends, and one of them suggested that I bundle my project with his, and we could develop them together. His company was L33T games, Inc, based out of central PA. I bit, and joined his fledgeling group (he was developing a RPG of his own).

Three years later, after many "we almost have the funds" messages, I finally had enough of sitting around. I'm a fixer and a do-er, not a sitter. So I came to him and demanded that we either sever or he brought me into the funding process (my people were beyond antsy on the subject, and I had a stellar team assembled). He brought me in, and that is when I dug into what was happening and learned what I will now share with you.

First, the LIBOR scam was around long before I got involved. I got involved between 2005 and 2007, and by that time there were several not-very-nice people involved. I'll get into that a little bit more, but for now accept that the major players weren't above a little bit of hard-ball, as it were.

First, there was the 'Emmanuel Project'. This billed itself as an angel-investment firm, but it wasn't. It ended up being a laundering system for money made off of human misery--everything from gun-smuggling to drugs to slavery. Most of their money appeared to come out of Qatar, although there was some Saudi and other muslim money mixed in. Another company was calling itself 'Pegasus Financial'. There have been plenty of those floating around, and I'd be hard pressed to find the correct one. Pegasus was under investigation, I believe, by some agency or another for funding weapons to the southern African continent. I never got that deep, and steered things away as I could.

Regardless of the extra-national corporations involved, the process went through brokers with limited information. No one was allowed to discuss any of the specifics with anyone. Once you were 'in', however, you had the capacity to pretty much print your own paycheck. I'll get into that in a bit. First, the process of getting 'in'.

Initially, you had to make friends with a bank executive. They're pretty much all whores, so that isn't too much of a problem. You fly out to them, or fly them to you, and grease the gears with plenty of money. You buy them expensive dinners, have drunken binges, and play a lot of golf. Not every executive would be willing to work with you, so you had to pick your opportunites carefully. On the bank-side it was a very elite club. Those who understood the scam used it to make money for themselves. Others would look at it and decline. I ran into a lot of them. Peter Lanza was one of the people I dealt with, during that time. He liked me, and called the deal a 'no brainer', but after talking to our CEO said, "don't ever call me again." We got that a lot. Our CEO often rubbed people the wrong way, and it's the reason I'm not speaking to a senate investagatory committee right now.

Once you had an executive ready to work with you, you set up a loan account. The loan had to be in even multiples of $100,000 USD, up to $10,000,000 USD. Additionally, the deal had to be with a bank which was SWIFT enabled. I checked things out with my father on this, who was retired from the banking community. He assured me that, even though the deal seemed wierd, it was still very legal. The SWIFT accessibility allowed outside banks to verify funds. Think of it as email for the banking community.

Once this was in place, the 'investors' would deposit the full amount of the loan, including interest, into a money-market or CD account with the same bank. In this manner, the bank would be assured return on its investment. Finally, the account would be severed into two different accounts: one for the principle, and one for the interest. The Investor would be guaranteed the interest on the investment, regardless of the success or failure of the venture. Classic money laundering. But that was when the money would start to get made.

It didn't matter if you had a product or not. Most ventures were just shells designed to print money and live large. Once the accounts were all in place, the money would be entered into the bank-trade system. (cont'd)

Already fascinated DO GO ON...................

(cont'd)

In the bank trade system, the money would be used in the same manner as payroll is used by large corporations. They use the funds to secure transfers between banks, basically loaning it for anywhere from 1 hour to 24 hours at a time. The money so used generates interest from the loans, usually around 1% or so. That may not seem like a lot, but when you consider that in order to get into the system you have to have $USD 1,000,000 or more, that's up to $10,000 USD/hour. That accumulates pretty darned quick. The executive takes his cut. The brokers take their cut. You end up with about half of that, or $5,000/hour.

The money gets re-deposited in the original account, and then is added to the aggregate total of available funds. As the aggregate total increases, so does the amount of money generated.

So, what is this used for?

Consider the following which was described to me by BlackHawk Capital, a company with which I dealt and which dumped the deal after meeting my boss. Let's say you're the leader of a third-world country with lousy credit risk and not a lot of money. Let's say you need to build a road through the desert, or want a giant building to house your bevy of wives. Whatever the reason, this is a way for you to do it. You field resources out to discount buyers who don't care where they came from, and recoup the losses through the transfers.

Now where's the problem in this? Well, lots of folks got very greedy very quickly.

I learned through my digging into the process that a huge portion of the 'investment' capital was actually derived from human misery. It came from slave traders in Qatar, slave-maters in places like Bahrain, gun-smugglers worldwide, and the like. They used it as a way to legitimize their funds through the accounts of 'clean' enterprises. People all over the world were raking in capital without caring where it came from. It came directly from the destruction of lives in small countries where the citizens had no voice.

Additionally, the money was being literally created out of thin air. The banks would pay the interest for the ready access of capital, but that was offset by selling bonds to themselves. And we're not talking small change here. A broker confided in me that he had one account that was generating $1 Trillion/year. Think about that: that's more than the GDP of most countries, generated by one individual.

In order to generate that kind of capital, you have to have lots of banks to deposit it in. They were all over the world. In addition, the banks would modify the LIBOR to maximize their profits from the trades. Banks that did not do so would lose out, and simply wouldn't understand why. Since there was nothing financially illegal going on, there was no reason not to join the gravy train.

I got out when I uncovered where the funds were coming from. I informed my boss about it, and he responded, "what do I care, as long as I get my money?" Maybe I should have stayed, and swallowed my disgust. In the end, however, I do not regret my decisions on the matter.

I understand that LIBOR was also used to bolster or depress national currencies by the national banks. I wasn't involved with that. But now that I have disgorged my memory, I'm done.

DISCLAIMER: I am on my third computer since leaving L33T Games. All of my emails from that period are gone. I'm digging information from my memory, as best I can. As such, I don't expect you to believe any or all of this. That's ok, and call me a liar if you wish. My concience is clear from this day forward.

reply to post by herrw


You said "I didn't realize I was involved in the LIBOR scandal until after the shooting in CT."

then you said "I worked with Peter Lanza once."


Can you explain the connection.. I don't see how people dying in CT connected with Lanza can make you now realize that you were laundering money for years and that is was bad..

Just more info needed I'm not condemning you.. I just want to know..

reply to post by Dustytoad


Dusty,

When I saw Peter Lanza's name on the reports, I recognized it. It bugged the heck out of me until I placed it. I tried to secure the initial funding, at one point, through GE Capital. He was one of the people I worked through. We chatted via email several times, and he looked at my project's white-paper and thought it was top-notch (for the time). He liked that, even though the economy wasn't doing so hot, it was grounded in entertainment (usually a better bet for economic downturns). In the end, he passed on the deal and I moved on to other banks. I ended up closing the deal twice, and having it shot out from under me twice when our CEO got involved. I'm happy now that that's what happened.

As far as LIBOR is concerned, I did not understand that part of it at that time. I learned about the LIBOR scandal probably at the same time as you, but didn't fit all the pieces together until I saw Lanza's name. I don't know if this relates to the CT shootings or not, but based on the calibur of individuals I uncovered, it wouldn't surprise me.

reply to post by Dustytoad


Oh, and clarification: I never laundered anything for anyone. I never got 'in', so I never got the chance to be a part of that. I got to learn the system though, and that's what I'm sharing.

Likewise, after I left, L33T Games rather fell apart. They were never able to get involved in the money-making process either. That's why I can share this. I don't even know if they're still an entity any more. I stopped caring after I left. I hesitated to name them, at first, but the RPG they were developing was actually pretty darned exceptional. It was management that I had a problem with.

reply to post by herrw


Ok. I understand what you are saying.
Wasn't the batman shooters dad also involved in LIBOR?

reply to post by Dustytoad


Yes. Also the children of a reporter who broke the story were murdered by their nanny. And if for some ridiculous reason I ever disappear, at least the information is out there. But since I never made any money off of it, and cannot reliably generate the names of the brokers with whom I dealt (the records just don't exist any more) that is unlikely.

reply to post by herrw


How high do you think this goes?
If there is all this (extra, fake, illegal) money going around, wouldn't inflation be through the roof?
Is the NWO just a bunch of gangsters, and banksters, instead of being a highly efficient esoteric cult?

I guess thinking it was ONLY the CIA doing the drug running, and money laundering was naive.. Seems half the world was in on this..

I wonder if there is anyway to insure this can't happen anymore?
And if there is, how would one put it in place before dying in suspicious circumstances?

What you just described is how all banking works! if people really knew what was going on there would be a revolution by morning. They do the same things in generating the loans on your house or business or car even your credit card.... They know its going to collapse so they are squeezing every last drop out of it before it does...

Originally posted by hawkiye
. They know its going to collapse so they are squeezing every last drop out of it before it does...

Yes, but then all the billions people have in USD will be no more.. unless they invest all their money into something else.. Wheat? I dunno.. If any huge investments go through (watch buffet, and gates I guess) then we will know we are screwed some time soon.

If preppers buy up all the long storage food supplies they will be unavailable to the elite. Just one of the many things I think about. I can see them not thinking what they are doing is so bad sense it's all collapsing anyway, may as well take care of them and theirs while they have the chance.

reply to post by Dustytoad


Dusty, you couldn't get away with this unless you had at least a few politicians in your pocket. Politics costs money, so they'll sell their souls for a little extra influence with the voter. So yes, it has to go into the government. How far I couldn't tell you, but this must be the reason it's moving so slow.

As to the other part of your question, consider that money is not static. It is a fluid commodity, which flows from a point of highest pressure to the points of lowest pressure (or greatest spending). Because of this, and because it's difficult to track in its physical form, the butterfly-effect takes precedence. A drought in one part of the world will translate to business losses in another part of the world, even if there's no obvious connection.

Every day there are thousands upon thousands of new human-beings added to the total population. Each one of them represents an asset for the parent country. Each one of them will consume, will create, will manufacture wealth. Therefore, each one of them needs a 'counter' to keep track of their progress. If new money wasn't created to use as a counter for their efforts, there would be no way to exploit their industry (or account for their asset-value). So the creation of money actually serves a twisted purpose. When Jose is born in Guatemala, his value has already been assessed and added to the total value of the country. Then Guatemala can print that amount of currency without worrying about inflation.

As well, quite often people lose money. Just as in the stock market, there are winners and losers. Commodities are mined from poor countries, and sold for much less than they are worth. Part of those losses are regenerated in the bank-trade system. Some of them are absorbed by the citizens of the country in question. Eventually, it all gets accounted for in the great world-wide balance sheet.

Originally posted by Dustytoad

Originally posted by hawkiye
. They know its going to collapse so they are squeezing every last drop out of it before it does...

Yes, but then all the billions people have in USD will be no more.. unless they invest all their money into something else.. Wheat? I dunno.. If any huge investments go through (watch buffet, and gates I guess) then we will know we are screwed some time soon.

If preppers buy up all the long storage food supplies they will be unavailable to the elite. Just one of the many things I think about. I can see them not thinking what they are doing is so bad sense it's all collapsing anyway, may as well take care of them and theirs while they have the chance.

Yep the smart ones are investing it in land and shelters gold and silver and preparations and private mercenary armies to protect themselves through the chaos and then come out and try and start the process all over again.

reply to post by herrw

Every day there are thousands upon thousands of new human-beings added to the total population. Each one of them represents an asset for the parent country. Each one of them will consume, will create, will manufacture wealth. Therefore, each one of them needs a 'counter' to keep track of their progress. If new money wasn't created to use as a counter for their efforts, there would be no way to exploit their industry (or account for their asset-value). So the creation of money actually serves a twisted purpose. When Jose is born in Guatemala, his value has already been assessed and added to the total value of the country. Then Guatemala can print that amount of currency without worrying about inflation.

Yep you hit the nail on the head here. The people are the chattle for instance in the US we are the sureties they create the money from nothing with in the fiat scheme. You are the collateral on the debt this is why they keep increasing the debt. It's all based on your future labor worth property etc. it is how they steal all our wealth we the people create and all the property etc.

When you get arrested they create a bond and trade that on the open market this is why they have no interest in justice and ignore constitutional rights they are making money and the Judges prosecutors and defense attorneys get a cut. When they jail you they are just warehousing the collateral on the bond that is why we have the most people in prison. this is why you are "charged"... Really how much do I owe?

Also whats worse is when you join the military they create a bond on you and take out life insurance and when you get killed in battle they make big bucks and give your family a pittance. this is why they want endless war they literally make a killing! Trading in the misery and suffering of human kind indeed!!! These people are evil incarnate they are demons! You were good to get out before you got some of this money it would have tainted your soul!

Your Birth certificate is a bond traded on the open market. And your social security number is the Federal reserve account for you they do not want you to know about it, it has millions in it. Most people think I am just crazy when I tell them all this but I can prove it to you.

Are you up for a little experiment? There is a number on the back of your social security card that is your account routing number. Go and open a paypal account and when it asks you for your bank routing number put that number in and watch closely and it will reveal which Federal reserve Bank your account is at. it will make two small deposits into that account and then ask you to verify the amounts to verify it is your bank account. The rub is you do not have access to your account so you don't know how much they deposited so can't verify its yours. But it is yours and that is why it is on your social security card.

reply to post by hawkiye

Interesting...

but mine begins with a letter

reply to post by EverythinIrie


Just put the number in omit the letter...

There are vast sums involved that the average person cannot begin to really get a grip on here.....
I know that the libor scandal has huge ramifications.....but do you believe that it will become common knowledge fast enough to get people off their asses?
Too many scandals break and dissapear...
The Leo Wanta case.....
The HSBC 25 trillion dollar scam in cooperation with the FED
Unless this becomes viral...the media will KILL IT like the others.....
You dont have any dope in these guys gelow do you?
perhaps ever met any account holders ?
The Bank Of International Settlements.....is a private bank where the accounts are personal accounts which countries pour billions of dollars through to settle international debts...
But the accounts that disberse the funds are privately held, and the comminsion for the middle men plus bank interest for the current account balances are staggering....
Suffice it to say, there is a small club of member accounts and the money they generate beyond avarice.....

These tales of the Bankers arrogant rake offs must be made well known to the little guys....
I thank you for the education......any more details come to ya please post.....

Stirling, I wish I did have more names to give you. Keep in mind I started on this 7 years ago, and left 5 years ago. I have very little solid evidence to show anyone, otherwise I probably wouldn't be around to share it now. That being said, we need to keep a few things in mind:

The system, as it exists now, is very imperfect. It allows others to gain access to capital (as a measure of commodities) based on how many people they can control and how productive those people are when they are under their control. Retirees are not as industrious as new workers, and so the most efficient use of a population is to reduce the old and infirm, and increase the young and industrious. That is what happened in China under Mao. That is why it is important for any country to control the healthcare system--it allows control of the industry-level of the population, and therefore the employment.

Further, there is a finite measure of commodities available to the people on earth. At some point, if a nation becomes rich enough, other countries must tumble to support it. If a nation or sector becomes too rich, it forms a bubble which must burst to allow equalization. Money is fluid, remember. It seeks a constant level. All of economic theory revolves around these uncomfortable facts. Our current system does not enslave, so much as it impoverishes some at the enrichment of others.

However, no one has ever developed a system which works better Socialism tried, but that system is inefficient and simply enriches a different group of people. And, generally, socialist nations are far less free than capitalist nations. Capitalism at least perpetuates the possibility that one might increase their own station by controlling the work of those who simply want to survive.

The only cure for the boom/bust cycle is death on a wide scale. War does that, but we've managed to sterilize war to the point that it no longer even serves that purpose. In effect, we have ensured our own destruction simply by waging peace. Eventually the party ends and we all fall down. Then it is real war, and not the parody of war we have created.

I don't know. I just don't know what the solution is, or even if there is one. We have progressed as a species to a point where we must either expand or die, but there is nowhere to which we can expand. There's no more commodities for which to print money. We're borrowing against our death benefit.

reply to post by herrw

War does that, but we've managed to sterilize war to the point that it no longer even serves that purpose. In effect, we have ensured our own destruction simply by waging peace

I petty much agree with you except for the statement above. The 20th century is known as the century of war we were pretty much in near perpetual war through it and still are in two wars an fomenting two more. from World wars 1 and II to Korea to Vietnam to south america to Iraq 1 and 2 and Afghanistan to Libya and now Syria and Iran. So I don't see how you can say we are waging peace?

What needs to change is the monetary system from money from nothing to using sound money cutting the purse strings of government so people are not chattel and traded as commodities IMO. WE have plenty of resources we are just not using them we are locked into the petroleum based system when we have had several alternatives for over a century.

I am going to respectfully disagree. After Korea, Americ began a path to a more antesceptic form of war rather than one based on overwhelming response. The rest of the world followed our lead. That has led us to wars where the soldiers die, while the civilians continue to support continuations of hostility.

Let me be clear here. I do not support war, but I do understand that it serves a purpose, however distasteful that purpose might be. Mankind is his own natural predator, and by predating on himself helps to ensure the survival of the species as a whole.

The only solutions, if we do not predate upon ourselves, are either the mass extinction of individuals at the hands of our governing bodies, or the expansion into space. The planet cannot support any more of us. And given the direction we're headed, I don't see an Ark to the Stars in our near future.