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Libya: All About Oil, or All About Central Banking?

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Several writers have noted the odd fact that the Libyan rebels took time out from their rebellion in March to create their own central bank -- this before they even had a government.   Robert Wenzel wrote in the Economic Policy Journal:

I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising.   This suggests we have a bit more than a rag tag bunch of rebels running around and that there are some pretty sophisticated influences.

Alex Newman wrote in the New American:

In a statement   released last week, the rebels reported on the results of a meeting held on March 19. Among other things, the supposed rag-tag revolutionaries announced the "[d]esignation of the Central Bank of Benghazi as a monetary authority competent in monetary policies in Libya and appointment of a Governor to the Central Bank of Libya, with a temporary headquarters in Benghazi."

Newman quoted CNBC senior editor John Carney, who asked, "Is this the first time a revolutionary group has created a central bank while it is still in the midst of fighting the entrenched political power?   It certainly seems to indicate how extraordinarily powerful central bankers have become in our era."

Another anomaly involves the official justification for taking up arms against Libya.   Supposedly it's about human rights violations, but the evidence is contradictory.   According to an article on the Fox News website on February 28:

As the United Nations   works feverishly to condemn Libyan leader Muammar al-Qaddafi for cracking down on protesters, the body's Human Rights Council is poised to adopt a report chock-full of praise for Libya's human rights record. 

The review commends Libya for improving educational opportunities, for making human rights a "priority" and for bettering its "constitutional" framework. Several countries, including Iran, Venezuela, North Korea, and Saudi Arabia but also Canada, give Libya positive marks for the legal protections afforded to its citizens -- who are now revolting against the regime and facing bloody reprisal. 


Whatever might be said of Gaddafi's personal crimes, the Libyan people seem to be thriving.   A delegation of medical professionals from Russia, Ukraine and Belarus wrote in an appeal to Russian President Medvedev and Prime Minister Putin that after becoming acquainted with Libyan life, it was their view that in few nations did people live in such comfort:  

[Libyans] are entitled to free treatment, and their hospitals provide the best in the world of medical equipment. Education in Libya is free, capable young people have the opportunity to study abroad at government expense. When marrying, young couples receive 60,000 Libyan dinars (about 50,000 U.S. dollars) of financial assistance.   Non-interest state loans, and as practice shows, undated. Due to government subsidies the price of cars is much lower than in Europe, and they are affordable for every family. Gasoline and bread cost a penny, no taxes for those who are engaged in agriculture. The Libyan people are quiet and peaceful, are not inclined to drink, and are very religious.  

They maintained that the international community had been misinformed about the struggle against the regime. "Tell us," they said, "who would not like such a regime?"  

Even if that is just propaganda, there is no denying at least one very popular achievement of the Libyan government: it brought water to the desert by building the largest and most expensive irrigation project in history, the $33 billion GMMR (Great Man-Made River) project.   Even more than oil, water is crucial to life in Libya.   The GMMR provides 70 percent of the population with water for drinking and irrigation, pumping it from Libya's vast underground Nubian Sandstone Aquifer System in the south to populated coastal areas 4,000 kilometers to the north.   The Libyan government has done at least some things right.    

Another explanation for the assault on Libya is that it is "all about oil," but that theory too is problematic.   As noted in the National Journal, the country produces only about 2 percent of the world's oil.   Saudi Arabia alone has enough spare capacity to make up for any lost production if Libyan oil were to disappear from the market.   And if it's all about oil, why the rush to set up a new central bank?

Another provocative bit of data circulating on the Net is a 2007 "Democracy Now" interview of U.S. General Wesley Clark (Ret.).   In it he says that about 10 days after September 11, 2001, he was told by a general that the decision had been made to go to war with Iraq.   Clark was surprised and asked why.   "I don't know!" was the response.   "I guess they don't know what else to do!"   Later, the same general said they planned to take out seven countries in five years: Iraq, Syria, Lebanon, Libya, Somalia, Sudan, and Iran. 

What do these seven countries have in common?   In the context of banking, one that sticks out is that none of them is listed among the 56 member banks of the Bank for International Settlements (BIS).   That evidently puts them outside the long regulatory arm of the central bankers' central bank in Switzerland.  

The most renegade of the lot could be Libya and Iraq, the two that have actually been attacked.   Kenneth Schortgen Jr., writing on Examiner.com, noted that "[s] ix months before the US moved into Iraq to take down Saddam Hussein, the oil nation had made the move to   accept Euros instead of dollars for oil , and this became a threat to the global dominance of the dollar as the reserve currency, and its dominion as the petrodollar."   According to a Russian article titled "Bombing of Lybia -- Punishment for Ghaddafi for His Attempt to Refuse US Dollar," Gadaffi made a similarly bold move: he initiated a movement to refuse the dollar and the euro, and called on Arab and African nations to use a new currency instead, the gold dinar.   Gadaffi suggested establishing a united African continent, with its 200 million people using this single currency.   During the past year, the idea was approved by many Arab countries and most African countries.   The only opponents were the Republic of South Africa and the head of the League of Arab States.   The initiative was viewed negatively by the USA and the European Union, with French president Nicolas Sarkozy calling Libya a threat to the financial security of mankind; but Gaddafi was not swayed and continued his push for the creation of a united Africa.   And that brings us back to the puzzle of the Libyan central bank.   In an article posted on the Market Oracle, Eric Encina observed:  

One seldom mentioned fact by western politicians and media pundits: the Central Bank of Libya is 100% State Owned . . . . Currently, the Libyan government creates its own money, the Libyan Dinar, through the facilities of its own central bank. Few can argue that Libya is a sovereign nation with its own great resources, able to sustain its own economic destiny. One major problem for globalist banking cartels is that in order to do business with Libya, they must go through the Libyan Central Bank and its national currency, a place where they have absolutely zero dominion or power-broking ability.   Hence, taking down the Central Bank of Libya (CBL) may not appear in the speeches of Obama, Cameron and Sarkozy but this is certainly at the top of the globalist agenda for absorbing Libya into its hive of compliant nations.

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Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling WEB OF DEBT. In THE PUBLIC BANK SOLUTION, her latest book, she explores successful public banking models historically and (more...)
 

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Slam dunk.Great article.... by zonie on Thursday, Apr 14, 2011 at 11:49:46 AM
that any war US does is the WAR ON INDEPENDENCE. ... by Mark Sashine on Friday, Apr 15, 2011 at 6:44:18 AM
I criticised a piece by Ellen. It is likely still... by zonie on Friday, Apr 15, 2011 at 3:52:03 PM
Enraged about the Green Book? As bad literature, p... by Mac McKinney on Friday, Apr 15, 2011 at 5:18:48 PM
or we will have to compare with the following rece... by Mark Sashine on Friday, Apr 15, 2011 at 5:52:51 PM
Forcing Libyans to swallow the implementation of t... by Mac McKinney on Friday, Apr 15, 2011 at 5:57:32 PM
I like it. Of course women are different from men,... by Peter Duveen on Friday, Apr 15, 2011 at 8:14:30 PM
election campaign. To win a second term, a Pres... by Samuel Bryan on Thursday, Apr 14, 2011 at 12:18:18 PM
Yes, it's about putting Libya under the control of... by Ernie Messerschmidt on Thursday, Apr 14, 2011 at 12:35:04 PM
This system of cartels is endemic. Ignorance of t... by Robert Bostick on Friday, Apr 15, 2011 at 8:44:44 AM
Brown has it right. The key issue is that Libya ha... by R A Bows on Thursday, Apr 14, 2011 at 1:35:29 PM
"it will be interesting to watch whether the new c... by Keith Pope on Thursday, Apr 14, 2011 at 2:29:34 PM
"I spent 33 years and four months in active milita... by Chantal Laurent on Thursday, Apr 14, 2011 at 3:18:06 PM
That is a powerful quote! THANK YOU! I had never s... by Elizabeth Hanson on Friday, Apr 15, 2011 at 12:13:43 AM
Likely one of our greatest generals, if not the gr... by zonie on Friday, Apr 15, 2011 at 3:43:35 PM
... by Chantal Laurent on Friday, Apr 15, 2011 at 8:58:44 PM
I watched it.Everyone should look for it.Thanks...... by zonie on Saturday, Apr 16, 2011 at 12:49:40 PM
I read that website that you had mentioned,and ask... by nativenezperce on Friday, Apr 15, 2011 at 10:17:01 PM
As the mainstream media portray a "defiant" Ghadha... by Sylvain Lamoureux on Thursday, Apr 14, 2011 at 3:44:45 PM
Readers of opednews could read some of her sources... by John Smith on Thursday, Apr 14, 2011 at 7:20:57 PM
Thanks for all the good comments!... by Ellen Brown on Thursday, Apr 14, 2011 at 8:36:42 PM
This might be the best article I have ever read on... by Robert Tracey on Thursday, Apr 14, 2011 at 9:09:22 PM
... by Ellen Brown on Friday, Apr 15, 2011 at 1:02:13 AM
YES... by 911TRUTH on Thursday, Apr 14, 2011 at 10:40:00 PM
This is a nice, fanciful spin on an economy that h... by Mac McKinney on Thursday, Apr 14, 2011 at 11:48:33 PM
Interesting. Wikipedia puts the unemployment rate... by Ellen Brown on Friday, Apr 15, 2011 at 12:35:14 AM
Much of the information cited by McKinney comes f... by Chris Cook on Friday, Apr 15, 2011 at 10:20:58 AM
Thanks Chris! I thought this was good, on AOL tod... by Ellen Brown on Friday, Apr 15, 2011 at 10:27:32 AM
Now that you have swallowed Aisha's gushing accoun... by Mac McKinney on Friday, Apr 15, 2011 at 5:00:58 PM
I figured someone would attack the WSJ and Heritag... by Mac McKinney on Friday, Apr 15, 2011 at 11:33:06 AM
The Economist magazine as described by Wikipedia:"... by Chris Cook on Friday, Apr 15, 2011 at 12:14:11 PM
I think I must be psychic, because I just knew you... by Mac McKinney on Friday, Apr 15, 2011 at 5:54:26 PM
The "economic freedom" ratings are extremist neo-l... by Ernie Messerschmidt on Friday, Apr 15, 2011 at 11:43:21 AM
Aren't you being a bit ideological there, Ernie? D... by Mac McKinney on Friday, Apr 15, 2011 at 6:13:24 PM
"Ideological" is pretty mild name calling there, M... by Ernie Messerschmidt on Friday, Apr 15, 2011 at 9:43:21 PM
"Ideological" is pretty mild name calling there, M... by Ernie Messerschmidt on Friday, Apr 15, 2011 at 9:43:46 PM
A decade ago the US may have been number one, but ... by Mac McKinney on Friday, Apr 15, 2011 at 10:12:25 PM
Great article Ellen.Naomi Klein would answer, of c... by Robert Bostick on Friday, Apr 15, 2011 at 8:26:51 AM
Several Arab nations issue interest free loans to ... by John Smith on Friday, Apr 15, 2011 at 8:34:33 AM
If this article has veracity, and most likely it d... by Chris Cook on Friday, Apr 15, 2011 at 2:20:42 PM
Though I always appreciate Ellen's articles, I am ... by Alan MacDonald on Friday, Apr 15, 2011 at 3:54:15 PM
War and empire are endemic to human history and co... by Mac McKinney on Friday, Apr 15, 2011 at 4:31:09 PM
Mac, in all due respect, since I'm a proud Mac als... by Alan MacDonald on Friday, Apr 15, 2011 at 5:58:44 PM
Well I think we are more in sync now that I unders... by Mac McKinney on Friday, Apr 15, 2011 at 6:34:01 PM
Glad you Macs reached agreement! My own sense of ... by Ellen Brown on Friday, Apr 15, 2011 at 9:00:38 PM
I just don't see that Ellen. I think you are misco... by Mac McKinney on Friday, Apr 15, 2011 at 9:38:55 PM
I'll go with that article Chris Cook cited:http://... by Ellen Brown on Friday, Apr 15, 2011 at 9:52:30 PM
Ellen, OMG, those Libyan freedom fighters must rea... by Alan MacDonald on Sunday, Apr 24, 2011 at 10:52:00 AM
Well as Bogey and Captain Renault said while they ... by Alan MacDonald on Friday, Apr 15, 2011 at 9:38:16 PM
They hold either number one or number two spot in ... by zonie on Friday, Apr 15, 2011 at 4:15:56 PM
googler ads are jamming articles like this becaus... by Ray O. Sunshine on Friday, Apr 15, 2011 at 5:55:54 PM
I've been commenting on a number of articles, and ... by Jim Arnold on Friday, Apr 15, 2011 at 9:47:03 PM
Agreed. How would you turn our power against them... by Ellen Brown on Friday, Apr 15, 2011 at 9:55:48 PM
two kinds of questions -- wonderins and challengin... by Jim Arnold on Saturday, Apr 16, 2011 at 8:35:10 PM
even just the rippling of "moral" support and the ... by Ellen Brown on Saturday, Apr 16, 2011 at 10:20:01 PM
Where did I lose you? The Vietnamese were aware of... by Jim Arnold on Sunday, Apr 17, 2011 at 12:41:58 AM
Almost all of the BIS members are from North Ameri... by Ty on Saturday, Apr 16, 2011 at 10:51:30 AM
Kropotkin stated that change will occur when a maj... by Bernard on Sunday, Apr 17, 2011 at 5:49:45 PM
It's necessary to make assumptions and inferences ... by Jim Arnold on Sunday, Apr 17, 2011 at 8:53:17 PM