The Reserve Bank didn’t change interest rates yesterday. The RBA needs to stay out of the news as much as it can these days.
You might be wondering why we haven’t commented much on the Reserve Bank accusations over supplying money to Iraq. Both in the form of bribes and the contract to print Iraqi money. Well, we’re not surprised by the stories. This is how people do business in some countries, especially ones subject to sanctions by the US. If you criminalise something, criminals flock to it. And central banks were designed to cover up the fraud of fractional reserve banking, so why wouldn’t they engage in illegal behaviour themselves?
Much more interesting are developments at the Vatican Bank. Keep in mind what happened to anonymous websites like Silk Road, alternative currencies like the Liberty Dollar and any other financial infrastructure that can be used for questionable activities. They were shut down and anyone involved charged with crimes.
Well, it turns out that the Vatican Bank may have been ‘an unwitting vehicle for money laundering and other illicit finances‘ for the embassies of Iran, Iraq and Indonesia. The bank is set to close all accounts of foreign embassies as part of a clean-up effort. We reckon the Americans should be sent in to shut the place down and charge the Pope with financial crimes like they charged the founder of Liberty Dollar.
for The Daily Reckoning Australia
From the Archives…
The Fed Does the Reverse Volcker and Targets the US Unemployment Rate
27-09-2013 – Greg Canavan
How Much Juice can Australian Property Have Left?
26-09-2013 – Greg Canavan
Nothing Lasts Forever…Especially Easy Money
25-09-2013 – Chris Mayer
The Unintended Consequences Brewing Thanks to the Federal Reserve
24-09-2013 – Greg Canavan
The Market’s Declining Response To ‘Open Mouth’ Operations
23-09-2013 – Dan Denning