Moammar Gadhafi is spending billions in hoarded cash to crush the Libyan rebellion as foreign powers argue about what to do next. Illustration: CC DonkeyHotey/Flickr

Dictator Moammar Gadhafi appears to have Libyan rebels on the run, even though an international freeze was placed on the Libyan government’s assets. Earlier this month an executive order in the U.S. forced Wall Street banks to freeze $32 billion worth of cash and securities held in Ghadhafi’s name. But the dictator has hoarded billions of dollars in cash, and he is using it to pay mercenaries to fight Libyan rebels.

Libyan revolution’s last stand?

Libyan rebels were preparing to make their last stand Tuesday as forces loyal to Moammar Gadhafi advanced toward Benghazi, the last line of resistance and the headquarters of the Libyan revolution. In a massive air and land assault on Ajdabiya, a town on the road to Benghazi, pro-Gadhafi troops sent rebels running for their lives. Since an international freeze was placed on Libya’s assets a few weeks ago, Gadhafi’s strategy has been to crush the rebels before the international community can agree on how to support the uprising. The Gadhafi regime appeared to be on the ropes a few weeks ago, but tens of billions of dollars in cash, squirreled away in Tripoli, has allowed the dictator to pay his troops, hire African mercenaries and bribe political supporters.

Wall Street takes billions in Gadhafi assets

Until 2004, the U.S. had kept Libyan assets frozen for several decades. Reticent about entering another war in the Middle East, the U.S. reissued the order to freeze Libyan assets this month, attempting to curb Gadhafi by denying him access to about $32 billion. Some financial experts were shocked that Wall Street banks had taken so much of Gadhafi’s money. American banks with Libyan assets have been directed to place the money into accounts that pay interest at market rates. Securities that expire must be converted to cash. Wall Street isn’t allowed to trade or manage the money and will lose those fees. But because they can keep the assets as liquidity on their books, the banks will face virtually no consequences for dealing with Gadhafi. The United Nations and the European Union have also frozen Libyan assets.

Cash pile keeps Gadhafi in power

Gadhafi has become adept at hiding the billions he has stolen from the Libyan people, according to U.S. intelligence experts. For decades, he has been hoarding cash in the Libyan Central Bank, which he owns. He insists that cash is to be used for government transactions, including oil sales. According to the Justice Department, Libya has conspired with Swiss banks to launder international bank transactions for years. Even though Libyan oil exports have dried up and the world is shunning Gadhafi, he is spending his huge pile of cash to stay in power. It has been reported that Gadhafi is paying up to 4,000 African mercenaries each $1,000 a day alone. But his pile is so big, those familiar with his finances suspect he will be able to buy his security no matter what the outcome of the Libyan revolution.

Sources

New York Times: http://www.nytimes.com/2011/03/10/world/africa/10qaddafi.html

The Guardian: http://www.guardian.co.uk/world/2011/mar/15/libya-rebels-last-stand-benghazi

CNBC: http://www.cnbc.com/id/41852966/What_Can_Banks_Do_With_30_Billion_in_Libya_Funds

Post By bryanh (1,420 Posts)

Connect

Do you have a fantastic idea related to this article, but just don't have the money you need to start your own company or side-business? Get the loans you need from https://personalmoneynetwork.com to help get your new company underway, from the small loan professionals at PersonalMoneyNetwork.

PG&E to pay $70 million for pipeline tragedy

PG&E to pay $70 million for pipeline tragedy

Pacific Gas and Electric Co., a northern California utility, has agreed to pay $70 million to the California town of San Bruno for a pipeline explosion that killed eight people in 2010. Company says it’s remorseful The San Francisco-based power company’s president, Chris Johns, released a statement Monday, saying PG&E is sorry and eager to […]

Judge stabbed and deputy shot in Washington courthouse

Grays Harbor County Courthouse

Following a standoff in a Washington state county courtroom Friday, a man reportedly escaped after shooting a sheriff’s deputy in the shoulder and stabbing a judge in the neck. The man is still at large. Treachery among the tree farms The incident occurred Friday afternoon in the western Washington town of Montesano, which bills itself […]

Microraptor was one flashy little dinosaur

Microraptor fossil

A team of Chinese and American scientists have found that Microraptor, a small four winged dinosaur that went extinct about 130 million years ago, was likely black and almost certainly had glossy, iridescent feathers. Until now, the coloring of extinct creatures was a matter of pure speculation. That may no longer be the case. The […]

Autocorrected message leads to school lockdown

Homage to the Sun

Adjacent schools in Georgia were locked down for two hours Wednesday after a text message reportedly warned of a “gunman” on campus. Later, it was learned that the message was the result of a smartphone autocorrect function, attempting to “fix” the misspelled slang word “gunna.” A series of mixups A series of mixups led to […]