Saturday, February 18, 2012

Forged Bonds? or the Real Stuff Accidentally Uncovered!


Got change for a Billion?
{This is a real FRB Bearer Bond]


Click here for related story [Reuters]

We learn from Reuters [but not the WSJ, the NYT or the Washington Post, or any other US news source other than Yahoo] that the Italian police have seized US$6 Trillion in in US Treasury bonds.

"Police videos showed images of the trunks, with "Federal Reserve System, Treaty of Versailles" stamped on the side in large, golden letters.  Bond certificates marked 'Chicago, Illinois, Federal Reserve Bank' and other securities, some for one billion dollars, were also shown."

Fake bonds are one thing;
faking an aged trunk and Fed seals is another!

Officially, these bonds have been designated by US authorities as fake.

But, are they really?  Or, were they accidentally discovered by Italian, Swiss, and US authorities working on an international criminal investigation who had not been clued in to the massive secret transfer of Federal Reserve Notes and bonds in 2008-2009 by the Fed.

In 2008, Tim Geithner, then President of the NY Fed, transferred massive amounts of US currency and bonds to Europe and Asia, without official documentation.

 [It is believed some of those bonds were stored in Fed vaults beneath the World Trade Center Twin Towers, until the WTC was destroyed in 9/11]. The value of those transfers was approximately US$16 Trillion, a tidy sum for which there has never been an adequate accounting.

In February [2102], we commented on the laundering of a massive amount [trillions of dollars] in England, the topic which became a Parliamentary debate and disclosure; could this be an extension of that scandal?

Last month, we commented on a similar find and police seizure in July, 2009, which received a flurry of very brief coverage.
$134 Billion in US Bonds Seized -- What's the Story?
And we promised to get back to you when we learned more.

In our original story, it appeared the seized bonds were part of the $16 Trillion the Fed had transferred surreptitiously to Europe between late 2008 and 2009.  Although the US Government authorities [i.e., the Fed] declared the bonds to be fake, although it was obvious that these bonds were real and had been diverted from the US Fed bailout of 2009.
[Officially, the counterfeits were "hard to distinguish from the real thing."


Will they be remembered as the
three biggest scam artists in US history?
As far as we can tell, the Fed failed to coordinate the transfer of these funds with Congress, although it appears it occurred following conversations between Bernanke and Obama prior to Obama's Inauguration.
[It would also seem that this transfer would not have gone unnoticed by then-President Bush in 2008]

It also appears that AIG was the conduit through which these financial packages were transferred to Europe; we're not sure which other financial institutions were involved, although one destination was most certainly Switzerland since the "Fake Bonds" keep turning up there.

Interestingly, bond traders at Morgan Stanley and Citigroup found this episode amusing and joked about it -- as they declared it essentially irrelevant.  These would likely be be the same shysters who laughed as the US financial system was destroyed in 2008 -- so there may be merit in taking a closer look at them come January 2013 with Eric Holder's replacement.

As for counterfeiting the bonds, we recall Operations Andrew and Bernhard, the Nazi counterfeiting operations which created nearly £150 million [about US$600 Million then] during WWII with the intent of creating inflation in England.  The notes were virtually indistinguishable from the real thing, and after WWII, the counterfeit notes found their way into Israel, which used them to bankroll the new country [to the great annoyance of the Brits].

Interestingly, the Nazis originally planned to fly over England and drop millions of these notes into the countryside, thus creating inflation.

Helicopter Ben

Nearly 70 years later, Fed Chairman Bernanke was dubbed "Helicopter Ben" when he proposed the same solution to the wrecked economy, i.e., fly over the countryside and throw out millions of dollars from a helicopter.


The counterfeiting of US currency, though details remain secret, was effectively carried out following the theft of a trainload of the special paper on which US currency was then printed -- making the counterfeits virtually impossible to detect.

The same counterfeiters, drawn from prisoners at Auschwitz and Mauthausen-Gusen, likely continued to create counterfeit currency after the war.

Interestingly, the nexus of financial transfers for the counterfeit instruments was South Tyrol, Northern Italy, in the same Swiss border region as the current operation -- Chiasso.
 
So, counterfeit or real?
We're going with real on this operation since Chiasso has been the distribution point for illicit [vs counterfeit] money laundering operations for the last 50 years or so. Looks like an excellent place to launder real bonds, and move legitimate money into Swiss bank accounts -- for when Bernanke, Geithner, and Obama plan to retire from the US Government.

As for the US officials who identified the bonds as "counterfeit" who were from the Fed -- they would have plenty of 'splainin" to do if they admit the bonds are real.  Perhaps after Obama is forced from office.

[Credibility Check:
We worked as an intelligence analyst at the State Department (INR) researching and analyzing international banking/finance and money laundering; my assessments in NIEs provided the basis for the Money Laundering Control Act of 1986.]
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2018 UPDATE:
Almost a decade has passed since these incidents were discovered.  
During that period, more than a few knowledgeable persons died mysteriously; the story now re-emerges given the sudden and inexplicable expansion of national wealth in China from which purchases of many companies were enabled, to include controlling interests in US Media companies.

The election of Donald Trump disrupted this pattern of subversion of the US business sector, and he economy itself.

In reviewing this blog post, we note that a number of portions seem to have been scrubbed by unknown censors and invisible editors, to include links to external reporting validating our reports.

We will continue to update this thread, and trust the Trump Administration will investigate Fed operation and disbursements from 2001 forward.