TAIBBI REVEALS "IT'S LIKE THE WORLD'S ECONOMY IS BUILT ON QUICKSAND"
As our excerpt continues, you can feel even more of the powerful indignation and shock that is rippling through the global investment community at this time.
Even the most skeptical and sarcastic folks in the financial world have been hit in the head with a wooden plank by this scandal.
Anyway, the LIBOR story is leading the front pages of most of Britain’s dailies, it’s on TV
, and it’s producing blistering editorials and howls of outrage amongst politicians and activists.
The New York Times,
meanwhile, did chime in with a house editorial
yesterday, and it was appropriately somber. And there has been some coverage in the financial press.
But to me what’s missing from all of this is the “Holy F--king S-it!” factor.
This story is so outrageous that it shocks even the most cynical Wall Street observers.
I have a friend who works on Wall Street who for years has been trolling through the stream of financial corruption stories with bemusement, darkly enjoying the spectacle as though the whole post-crisis news arc has been like one long, beautifully-acted, intensely believable sequel to Goodfellas.
But even he is just stunned to the point of near-speechlessness by the LIBOR thing. “It’s like finding out that the whole world is on quicksand,” he says.
So as far as the stateside press goes, I’ve got to assume the cavalry is coming soon. But when?
THE IRS GETS AUDITED FOR BILLIONS OF DOLLARS IN FRAUD -- JULY 3RD
Furthermore, on July 3rd we found out the IRS was being audited -- for billions of dollars in fraud.
The IRS is not innocent in all of this either. Corruption exists throughout the entire system -- as we are increasingly finding out.
Their own employees have now turned against them.
July 3: IRS Gets Audited -- For Allowing Billions of Dollars in Fraud
The federal agency that strikes fear into many U.S. taxpayers is getting a dose of its own medicine – as it is now the focus of a year-long audit for allowing illegal aliens to scam the system and bilk taxpayers out of billions of dollars every year.
Federal employees are blowing the whistle on the Internal Revenue Service,
according to a report
by Indianapolis television station WTHR-TV….
Howard Antelis, a tax examiner at the IRS’ ITIN processing center in Austin, Texas, explained: “We were being told by upper management to ignore fraud, to assign ITIN numbers and … pay out refunds to people who are lying. It’s a license to steal when you allow that.”…
Antelis said he reported the scams regularly to his managers – for years – with no result.
Frustrated with the inaction, he called the Inspector General’s office in Washington, D.C.
“I’ve been working for the federal government for 23 years and I signed an ethical standard of conduct when I went to work that says if you see fraud, you need to report it,” he said.
“I tried and tried and tried, couldn’t get anywhere so … I went into a quiet room and started making phone calls.”…
The auditors made a shocking discovery: IRS employees were, in fact, encouraged to overlook indications of fraud….
“It’s pure negligence by management and they’ve been trying to keep it quiet,” Antelis said. “There is a criminal element that is defrauding the U.S. government by filing mountains and mountains of these fraudulent applications.
"We see them in piles in bulk every day that are obviously not legitimate documents and not legitimate tax returns and not legitimate wages … and [IRS managers] don’t want to deal with it.
"That’s where all the fraud is. The fraud is in the fake notary stamps and fake documents which we’ve been accepting.”