8 votes

Libya: All About Oil, or All About Banking?

If the Gaddafi government goes down, it will be interesting to watch whether the new central bank joins the BIS, whether the nationalized oil industry gets sold off to investors, and whether education and health care continue to be free.

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:


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Libyan rebel bankers!

They're like tanned Bernake's with rocket propelled grenades.

"Endless money forms the sinews of war." - Cicero, www.freedomshift.blogspot.com

Libya' banking was not under Western control

Now it will be.

Other nations with independent banking systems; Iran, Yemen, North Korea and until recently Haiti. Oh, a perfect match, what a surprise!

This is all about control of banking and oil as usual. It always is. Fool the public into supporting wars against all nations not under the control of the international banksters. Use the MSM to tell lies that support the cause of an international dictatorship.

USA is the last large free country in the world and that is changing fast these days.

Keep up the good work for peace, freedom and liberty!

The Rebels just want Gadafi's money, that's all.

The reason the rebels set up a central bank so soon is to convince western governments to unfreeze billions in Libyan assets and transfer them over to the rebel cause. They need to buy weapons, LOTS of weapons. Libya's vast holdings are just sitting there, doing nothing. And several governments have recognized the rebels as being the legitimate government of Libya. A new central bank is the only logical step to get the money.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

2008 - Italian Reparations

In 2008 Libya and Italy signed a 5 billion dollar deal for over 25 years to help offset the damage done to Libya in the colonial era and WWII

The funds were partly to be used to build a freeway along the coast if I am not mistaken. Berlusconi signed the deal and it was reported in Bloomberg news.


I have a great article for you to read on this matter...

Crazy thing is it was written a long time ago.

Libya Turns On The Great Man-Made River

by Marcia Merry
Printed in The Executive Intelligence Review, September, 1991.

This is the last part of the article, please read the whole thing, very interesting indeed. I can only think there is a lot of truth to it, especially since it was written so long ago, and with what is happening in Libya now.

The World Bank and the U.S. State Department are backing a ``Middle East Water Summit'' in Turkey this November, which is intended to promote only politically favored projects such as desalination plants in Saudi Arabia, and water shortages elsewhere.

London and Washington circles were apoplectic about the opening of the new Libyan water project. The London Financial Times ran criticisms of the project from Angus Henley of the London-based Middle East Economic Digest. The pipeline, he said, was ``Qaddafi's pet project. He wants to be seen as something other than the scourge of the West.'' The Financial Times called the project Qaddafi's ``pipedream,'' stating that critics may be awed by the engineering involved, ``But they regard the dream as a monument to vanity that makes little economic sense in a country where the U.N. Development Program says 94.6% of territory is desert wasteland.''

If it is vanity that motivated the project, at least the vanity of Libya's head of state is being channeled in a productive direction in this case--which is more than can be said of the leaders of Britain and the United States.

Here is the link to the article:


thanks for posting this

if you're interested, here's a great blogger who covered this not too long ago.

We still wonder how on earth did Gaddafi manage to stay in power for forty years? Did no one notice his madness until now?

Did no one notice that he built a HUGE FRESH WATER PIPELINE to the Benghazi region, that lunatic?

Were they waiting for him to finish?


"If this mischievous financial policy [greenbacks], which has its origin in North America, should become endurated down to a fixture, then that government will furnish its own money without cost. It will pay off its debts and be without debts. It will hav

I would also add the Great

I would also add the Great Man Made River!

These observations are great

These observations are great food for thought. Check them out if you haven't already.