Libor affair is a reminder that world needs new monetary system

In his latest regular column for Russia’s RIA Novosti, Sam Barden takes up the Libor scandal, writing: “If you think the Libor scandal that came to light last month does not affect you, think again. The Libor scandal to which I refer is where the leading banks in London, who make up the British Bankers association, have colluded to artificially keep interest rates low. It is a problem so big, that it cannot be fixed. It is at the very core of the modern monetary system, the debt system. Money as we know it can no longer be priced fairly, and should now be replaced with a new system of account.”

“The era of printing more debt to pay debt surely must be coming to a close,” Barden concludes, after describing how the Libor has worked, at quite some detail.  “How long can the game, the scam, of rigged markets go on when it is clear that there has been complicity at every level of banking and central banking in the Libor scandal? Money as we know it, or Fiat money, has no intrinsic value. What the Libor scandal is proving, apart from the fact that our banks cannot be trusted, is that we can no longer price assets that have value with something that does not. Since debt has no intrinsic value, we should replace the debt-based system with a system that has intrinsic value. One thing is certain, the day of reckoning for the corrupt banking cadres is fast approaching and it is unavoidable. The views expressed in this article are the author’s and do not necessarily reflect the views of RIA Novosti.”

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