$800 trillion of financial contracts worldwide are based upon a fiddled fiction: LIBOR (the London Interbank Offered Rate). For decades, rates were set by colluding bankers under the auspices of the British Banker’s Association, essentially without supervision. All scams are revealed in time, and LIBOR proved no exception.
Never mind the worldwide ecological disaster unleashed by economic exploitation. The human condition itself is unsustainable. Unrealistic optimism invariably gives way to paying the piper who holds the purse strings. The world is about to get a disgustingly good look at the genitals of a bloated European emperor who wears no clothes, and has no purse from which to pay.
The Wall Street Journal reveals its ignorance of history in remarking that “global troubles have revealed how closely nations and financial markets have become intertwined.” Sovereigns have long relied upon bankers to finance debts. Bankers expect favors in return. Plutocracy is a hallowed tradition, ultimately based upon fostering an illusion of prosperity.
Profligate democracies in Western Europe continue to descend into economic turmoil over their sovereign debt loads. The United States, with its own stunning debt, may stumble into the same gulch. The root problem is plutocracy. Capital flows against society at large.