I was invited on Huffington Post Live earlier today to discuss new findings in the LIBOR scandal and the IOSCO’s findings that interest rates are manipulated around the globe. Some of the key topics I tried to hit:
- Interest rates are always “manipulated” by central banks.
- Central banks use the banking system to enact this “manipulation”.
- The media appears to have just caught onto the idea that banks are used by central banks to manipulate rates. So while I don’t intend to downplay the very real problem of fraud and failure to disclose, I think we do have to call the governments accountable to some degree. You can’t spend 20 years deregulating banking and then point the finger entirely in the other direction when the regulations fail to enforce proper disclosure, etc.
- The LIBOR scandal exposes how governments have failed to properly regulate banks and the way they are used to set interest rates.
I didn’t get all the points in that I had hoped to make, but it was a fun segment. I also did a good talk with CNN radio earlier this week and we covered some topics that were a bit more up my alley including hyperinflation, QE and the markets. I hope to post that by early next week.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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