Recent testimony in Parliament by a British Peer indicated that the "bogus bond" issue has considerably more depth than we thought.
[Notably, both the story and Lord James have now come under ridicule and attack since his disclosures; reportedly, there are attempts to declare him mentally unbalanced and to commit him to a mental institution. Given Lord James' extraordinary business and financial credentials, we'll take him at his word -- and presume he is sane and fully cognizant of how a money laundering scheme works.]
It seems Lord James of Blackheath, a financier credited with an astute eye for monitoring financial fraud, was provided the records from about 20 banks in which are documented transfers of $15 Trillion in US Federal Reserve Bank assets -- in three movements of $5 Trillion each in 2009, with earlier such transfers tracked by documents signed by Timothy Geithner and Alan Greenspan. Lord James captured all the documentation in digital form and provided it to British authorities for further investigation.
This is our interpretation of Lord James' disclosure. We'll be happy to make corrections if Messrs Geithner and Bernanke will provide us with documentation of the paper trail of the $16.2 Trillion that just sort of "showed up."
Wilfredo Saurin + 11 more]
The point of origin and cover for the transfer was through the accounts and asset transfers of Yohannes Riyadi of Indonesia, reputedly the richest man in the world. Mr. Riyadi's assets reportedly include 700 tons of gold [market value: $42 Billion].
Riyadi is is reportedly descended from the dynasties of Indo-China; his wealth has been estimated as much as $40 Trillion in liquid assets.
Looks like Riyadi's time under the radar is finished.
[You may remember the linkage to Indonesia of Messrs Obama and Geithner, and Mr Geithner's direct linkage to China -- including two years studying Mandarin at Peking University and Beijing Normal University.]
The New York Federal Reserve Bank, of which Timothy Geithner was then President, reportedly provided Mr. Riyadi cash payments amounting to about $500 million for bonds which were earlier declared worthless.
In exchange for this payment, Mr. Riyadi's account then became the official conduit to the New York Federal Reserve Bank, and the transfers of $5 Trillion each were attributed to Mr. Riyadi's account as the point of origin. Since Mr. Riyadi is listed as the richest man in the world, such transfers, though highly unusual, could be rationalized – though not unnoticed by international banking officials.
If you can't trust your banker, who CAN you trust.
According to Lord James, The NY Fed then transferred bonds and cash to JP Morgan Chase, which arranged onward transit via a SWIFT [Society for Worldwide Interbank Financial Telecommunication] note to HSBC [Hong Kong and Shanghai Banking Corporation] China's largest bank, and the fourth largest bank in the world – which created receipts for the the cash and bonds, which were then transferred to RBS [the Royal Bank of Scotland] for further distribution to 18 other banks.
The rationale for all this subterfuge was to create a paper trail to obfuscate monitoring by such entities as the IMF, which has fairly rigid rules and tracks such money transfer instruments.
Bank of England
Were it not for the IMF, the easiest and most direct way to have conducted this complex transaction would have been a direct transfer from the US Fed to the Bank of England -- but, the Old Lady of Threadneedle Street is too strait-laced to play the money-laundering game, so Geithner's subterfuge was employed.
Initially, we presumed these transfers were to stabilize European banks and national economies; but it appears that did not occur, given the number of meltdowns Europe has experienced in the last few years.
OMG, how did they find out! [Reuters]
Instead, it appears that Geithner and Bernanke couldn't resist the opportunity to exploit the process.
Although the paper trail had been established to cover the transfers, the Fed still had the actual bonds and bank notes which had been printed to cover the transactions.
So, where did the bonds come from?
Seems those seized by the Caribinieri were in Fed wooden chests, dating back to the origin of the Fed, and stored in the World Trade Center until 9/11/2001.
So, we raise the old eye-brow at the concept that bearer bonds were pulled from the World Trade Center subterranean vaults, listed as "destroyed", and used by Geithner and Bernanke to move these instruments to Europe, where they've been used for countless nefarious activities.
[Although European bankers had examined the seized bonds and declared them "genuine" the Fed dispatched a team which declared the bonds as "counterfeit" -- so much for the Fed's future credibility in future financial transfers -- although they took the bonds in their ancient wooden containers back to New York.]
How about I give each of yous guys a Billion Euros and yous leave me alone
Talk about bad luck! So, all of a sudden, the world learns of a seized stockpile of Federal Reserve Notes worth $6 Trillion; and still later, we learned the total of discovered illicit bonds to be in excess of $16.2 Trillion.
So, essentially, our trusted Administration officials and Fed Chairman have created financial instruments roughly equal to the US Gross Domestic Product, laundering it through a series of complex transactions, and have parked these assets in Europe – which then began filtering into the international money laundering conducted by – the Mafia.
It may be time for Congressman Issa to pry open the doors of the Fed and the Treasury, and to open a full investigation of this scam.
We do have to wonder about the eventual use of all this cash.
Would it be used for the Administration's reelection campaign? You can buy a lot of votes and election officials with $16.2 Trillion!
Footnote: There is considerably more to this story as it precedes this Administration with some surprising players involved. But, all that is far too much to process in a single blog posting, so we'll give you the history and updates in future blogs. Perhaps when we provide a full analysis of the World Trade Center demolition on 9/11.