«Dragon Family Gold» and US Federal Reserve System (I)

Valentin KATASONOV | 08.12.2012 | http://www.strategic-culture.org/news/2012/12/08/dragon-family-gold-and-us-federal-reserve-system-i.html

The attacks against world leading financial institutions have become more frequent recently, for instance the legal claim lodged by the anonymous group code-named the Dragon Family. Some Neil Francis Keenan is acting as its representative. On November 23, 2011, he filed a 111-page complaint with the U.S. District Court in the Southern District of New York, that was accepted to consideration. He is represented by William H. Mulligan Jr., with Bleakley, Platt & Schmidt of White Plains, N.Y. Keenan claims that before WWII the U.S. the Federal Reserve System (12 Federal Reserve Banks, to be more exact) had received enormous amounts of money – delivered in gold and other precious metals – from a group of several wealthy Chinese citizens to be kept for a long time. In return they got certificates testifying the money was placed for the benefit to be redeemed by Federal Reserve System on the expiration of specified term… The deal is murky concerning such details as the term of maturity and the amount of the sum transferred. It’s also vague about what kind of deal it was, was money to be kept, stored or deposited in the bank? Or was it a Federal Reserve Banks registered capital investment? It’s worth to note the papers are called differently: notes, bonds and certificates, it’s crucially important for clear understanding the essence and mechanism of the transactions in question. It’s not clear how the gold was transferred. Was it a one-time, many-time or recurrent transaction? In short, it leaves a lot of questions unanswered. The complaint itself doesn’t provide answers, but rather gives rise to a lot of new questions. There is a special American term for such complaints – «false claims». Back then President Bush Jr. brought up the issue of cleaning the US courts from «false claims», but to no avail. The lawsuits may be related to inconceivable claims, and in case of money adjustments the sums happen to be of many zeroes. Perhaps, it’s a good business for US legal system. Sometimes false claims become golden claims for claimants. According to experts, the courts write off around $240 million annual writs of execution. I don’t exclude the Dragon Family lawsuit is a false one, though I suggest one should not jump to conclusions. The defendants include the US Federal Reserve System, the United Nations, the Office of International Treasure Control (OITC), the World Economic Forum, USA Inc., (US branch of World Economic Forum), the Italian Financial Guard and well known politicians, for instance: former Italian Prime Minister Silvio Berlusconi and UN General Secretary Ban Ki-Moon. The Italian Republic is also in the list. There is one more defendant – Some Daniel Dal Bosco (a Vatican banker, an associate member of P2 Masonic lodge), who is accused of stealing from Neil Keenan a bunch of bonds entrusted to him by the Dragon Family. The total sum of the stolen bonds is $144,5 billion. The total sum of lawsuit is $1.1 trillion in financial instruments… «Italian trail» The defendants list shows there is «an Italian trail» here. The Italian police confiscated bonds emitted by US Treasury at Ponte Chiasso (40 km from Milan) on the border between Italy and Switzerland. The bonds appear to belong to the Dragon Family. They were dated 1934 and signed by then Treasury Secretary Henry Morgenthau. The 134.5 billion dollar bonds redeemable in gold were taken from two Japanese on a train headed from Italy to Switzerland. They were announced to be false at first, sometime later it was said they were real, and then the Japanese and the bonds disappeared without a trace. This strange story (often called «the story of Ponte Chiasso) happened in June 2009. Back then the first talks about US bogus bearer securities with astronomical face value denominations, measured in million, or even billion US dollars, started to go around. For instance, the face value of the bonds confiscated by Italians in 2009 was equal to the face value of US Treasury bonds of the Russian Federation’s international reserves at the time (the face value of well-known US treasury bonds is measured in thousands of dollars. There is no paper based settlement anymore, so they exist only in the form of electronic record). The incident at the Italy-Switzerland border in the summer of 2009 brought into light the mysterious group named the Dragon Family; back then US government large-scale clandestine operations came into the open too. Since then astronomic face value bonds and other securities started to surface in different parts of the globe. No one can definitely say if they are false or real. Counterfeit money has always existed. The US secret service used to get hold of «homemade» bonds, but the annual «catch» rarely exceeded $10 billion. Now its hundreds of billions. According to the United States Treasury Department there are US bearer paper securities at face value of around $100 million going around today. Who should be believed: the US state officials or securities holders and their lawyers? To my mind the Dragon Family is kind of a tank opening the way for the attack by dozens of «guerillas» – various activists and experts launching attacks against the Federal Reserve using specific information methods. By the way, a year has passed since the lawsuit; no way can one find any information related to the proceedings or the outcome of the case handled by New York district court. The legal aspect is completely forgotten. To the contrary, more and more often the «Chinese» gold story catches the public eye. Perhaps that’s the «guerilla» tactics used against banksters. «Black» gold and «parallel» financial world Some authors emphasize that it’s not about the «Chinese» assets only, but rather about the gold that belongs to many Asian countries that in its time (since WWI) started to be transferred to the special storages. In fact it was dropped off from the international trade and financial turnover. Benjamin Screaton Fulford, a Canadian journalist living in Japan and one of the most aggressive «information guerrillas», spoke about the Asian origin of the gold convincingly and with competence. He is the former Asia-Pacific Bureau Chief of Forbes magazine. During 25 years of work he has created a broad human intelligence network in many Asian countries. He says it has been providing him with invaluable information related to the Dragon Family’s gold. David Guyatt, a one more «information guerilla» with vast experience in banking sector, tells many intriguing and captivating things about the Asian gold in his publications. The «guerillas» call it «black» gold. The media people use the term for oil, but in the given case it is metal, that really is gold from point of view of chemistry, it’s kept out of official golden reserves statistics, as well as the accounts of banks and other financial institutions. The very fact this off the books asset existed was the knowledge of a few. This is the gold coming from the «parallel» world of finances the majority of people don’t even have an idea of. This world is completely impenetrable to the eyes of common people and it shouldn’t be mixed up with the funds of ordinary «shadow» economy that is talked so much about nowadays (the basis for a conventional «shadow» economy is cash brought out of legal circulation). David Guyatt is known to be the person who coined the term in his The Secret Gold Treaty book. Why the world elite needs «black gold»? There are a few versions explaining what the clandestine reserves of «black gold» were created for. For instance, one of them says the reason was to strengthen the US dollar by increasing the US Federal Banks gold reserves. So, the purpose was the preservation and strengthening the golden standard. This version doesn’t hold water. How can the dollar be strengthened if nobody in the world knows there is a glut of wealth in the Federal Reserve vaults? To the contrary, the US government would doctor up records to bolster its currency displaying it enjoyed solid metal prop up (by the way there is a suspicion it’s a long time since the US is involved in doctoring up schemes related to the official gold reserve). It’s worth to note that according to the Dragon Family lawsuit, those days the Federal Reserve exchanged the gold for bonds pursuing the purpose of strengthening the dollar as the international currency, not having the yellow metal stored in «deep freeze». The other version says the «black» gold is a strategic reserve of the world financial oligarchy; it can be used, for instance, to control gold markets and currency rates. In particular, that’s what the GATA’s (Gold Anti-Trust Action) publications hint at. The organization was established in the 1990s to investigate illegal manipulations on the world gold market; according to it, it’s a long time the so called «golden cartel» has been conducting its activities. The GATA experts have emphasized the scams are implemented by illegal use of metal from the gold reserves of the US and some other states (that is the reserves under the control of central banks and treasuries). Very cautiously some voiced the opinion the scams could take place at the expense of some clandestine funds (reserves). But anyway, as the experts point out, they pale in comparison with official reserves (comparatively insignificant in size). There is a version the global elite needed the «black» gold reserves as an out of budget, a beyond the national states control source of income to fund political, military and special operations for the purpose of establishing the «new world order». Really so, as an instrument of funding clandestine operations, gold is no less effective as cash is. (To be continued)

Tags: Dragon Family Federal Reserve

«Dragon Family Gold» and US Federal Reserve System (II)

Valentin KATASONOV | 10.12.2012 | http://www.strategic-culture.org/news/2012/12/10/dragon-family-gold-and-us-federal-reserve-system-ii.html

Part I David Wilcock, the author of a series of publications under a single name Financial Tyranny thinks the concentration of giant reserves of gold in clandestine storages was needed by the world oligarchy for the issuance of paper money flows without any back up. Some other authors share the support of this version referring to Adam Smith, who in his The Wealth of Nations made a thorough study of the woes inherent in the financial system backed by gold and the ways to make it without gold currency. He proved it to be evil for capitalists and the whole society. The only beneficiary of the gold standard, imposed on many states by the end of the XIX century, were the Rothschilds, who controlled the major portion of gold, at least in Europe, if not in the whole world (David Ricardo, another Englishman, who was a friend and companion of Nathan Rothschild, gave a «scientific» substantiation of gold standard). There has always been a competition between gold and paper currency. The gold competitor had to be physically eliminated. This goal was allegedly set in the days of WWI, but failed to be fully achieved (as is known the gold standard was restored in the 1920-30s, though in limited form of gold bullions and gold exchange standards). The attempts to fully get rid of gold in the financial world failed after WWII: the 1944 Bretton Woods conference established the gold-dollar exchange standard. In the 1970s the Bretton Woods system was brought to an end, the dollar became flat currency, the printing press went in full force. The world entered a completely new phase of its development that can be defined as full economic liberalization and financial globalization. The official sources report the US refused its free gold for dollar exchange obligations because the Treasury reserves were rapidly melting; there was not enough for further exchange operations. «Information guerillas» think it’s a lie, the US had enormous gold reserves it hid on purpose to maintain the status of «black» gold. During about sixty years (from WWI to the Jamaica 1976 conference, when it was decided gold was no longer used as a means to cover the currency in global payments) yellow metal was purposefully accumulated from all the corners of the world into a single storage under the control of, first of all, the major Federal Reserve shareholders, who dreamed since a long time they could make riches from «air»... «Black» gold: questions and answers This version is really capturing, it meets all the rules inherent in the genre of conspirology. Still, many answers should be answered to make it sound plausible. First of all, how did the global financial oligarchy manage to get the major part of the world gold into a clandestine storage? How much was accumulated? Why the people, whose gold was taken away to be placed into a secret place, kept their mouth shut for such a long time? Where is the gold now? Who manages the reserves and how is it done? And so on, that’s the way it goes. Let’s try to find answers in the works of «information guerillas». The total amount of «black» gold in clandestine storage is estimated to be around over two million metric tons at least. Some authors say it’s more. David Wilcock gives a precise estimate in his Financial Tyranny: 2.420.937, 4 kg. The bulk of it comes from China (85%) and other Asian states. Many authors hold the view the major part of gold was transferred from China in 1938 at the time it was occupied by Japan. There was a risk the gold, that belonged to a few Guomindang top leaders, would be captured. The Federal Reserve System lent a helping hand to the Chinese comrades and offered good terms of storing the metal. As the «guerillas» say the very same year (1938) seven ships left China for the USA with the Dragon Family’s gold on board. Thus, the gold was transferred and deposited by private owners in a half voluntary, half compulsory way, guaranteeing stable 4% annual income. The gold is recorded in the Global Collateral Combined Accounts. But these accounts are not legal, they are part of parallel financial system, its existence is known by very few. David Wilcock, Benjamin Fulford, David Guyatt and other «guerillas» emphasize the special place of Japan. As is known this country surfaced to the world arena after the Meiji revolution in 1868. The British Empire, that was ruled behind the curtain by the Rothschilds, looked at Japan as best suited for being a springboard for efforts aimed at grabbing the whole Asian gold. It was a densely populated technologically backward middle age country. Britain supplied the Satsuma and Chōshū clans with modern weapons and shared its knowledge of then contemporary art of war to make them quickly capture the part of the country still out of their control. Then the country of «rising sun» started its expansion into China. The countless Chinese riches were in jeopardy. Part of gold was captured by Japanese. To save the remaining (larger) part the Chinese had to resort to the «service» of British bankers first, and then (after WWI) – the US Federal Reserve. The gold «freezing» project and the Bank for International Settlements (BIS) The Bank for International Settlements (BIS) was founded in 1930 in Basel (Switzerland). It has become an important element of clandestine financial system. According to the «guerillas», the idea came to leading Western politicians right after WWI. Japan’s emperor Hirohito allegedly was among those who was at the origin of the bank’s creation. In 1921 he visited Great Britain and signed secret documents related to the establishment of the bank. It’s widely known the BIS funded Hitler and cooperated with the Nazi during the whole WWII. The world financial oligarchy tasked it with one more large-scale mission – to support the creation of clandestine «black» gold reserve. Indeed, no matter its lack of transparency, the bank had aggressively dealt with gold. Some sources say the «black» gold had been secretly deposited in the BIS. However, many researches had dropped hints before the current events that the BIS was a key institution of the parallel (clandestine) financial system serving the interests of global elite. For instance, professor Carroll Quigley (1910-1977) of Georgetown University, a historian and a researcher on conspirology, the author of well-known book called Tragedy and Hope: A History of the World in Our Time (1966), said openly, making no bones about it, that the BIS was intent on "the power of financial capitalism had a far reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences». «Black» gold and golden cartel Now let’s get back to the «black» gold bonds. They had face value and the date of return to the initial owner. The transfers were done in different years and, correspondingly, the dates of return differed too. As to «information guerillas», the bonds looked differently, there was no single standard. Some were personalized, others – payable to bearer. With different values they all were measured in millions, dozen and hundreds of millions, and even billions of dollars. Most often it’s the ones dated 1934, their number keeps on growing. The «guerillas» offer the following explanation: the gold prices steadily grow, the Federal Reserve Banks keep on issuing the 1934 bonds to compensate the lawful owners for the rise in prices for the security metal. Moreover. The US fiscal powers (the Federal Reserve System and the Department of Treasury) do their best to slow down the «yellow» metal price growth. In case of experts it’s an open secret the so called «gold cartel» exists in the world that goes to any length to hold back the gold prices growth. It functions under the aegis of US Federal Reserve System, the US Department of Treasury and includes the Bank of England, the BIS and a number of Wall Street banks (Goldman Sachs, G.P. Morgan, City etc.). Some organizations, like, for instance, the already mentioned GATA (Gold Anti-Trust Action), came out with the disclosure of «world cartel» activities by the end of the 1990s. In 2009, Kevin Warsh, member of Board of Governors of the Federal Reserve System, had to admit upon GATA’s demand and in accordance with the US freedom of information act the central bank had secret agreements with foreign banks on gold exchange. Having retired, Warsh spoke at Stanford University on January 26, 2012. He was more frank: central banks strictly controlled gold prices. Now the Internet presents multiple pictures of prewar securities. They are all in English. It’s worth to note, there are mistakes in words spelling. The «guerillas» insinuate it’s done on purpose. They allege the financial oligarchs planned in advance «to chisel» the securities owners. The present day «black» gold owners could say to bearers of «defective» bonds their papers were «cheap» and «illiterate» fakes. «Black» gold mathematics As the «guerillas» say the financial oligarchs started «to bamboozle» the securities owners from the very start, since 1928 to be exact (the earliest date of bonds issuance): the owners didn’t get a penny as deposit interests. The «guerillas» made a thorough study of the subject. During the period of 1961 – 2011 (51 years) the overall clandestine financial system’s gold liabilities totalled 4.638.792, 0 metric tons (on the assumption of 4% annual interest rate). It’s almost twice as much as the amount of gold initially deposited with the system. Taking into account the market price of 1 ton of gold is around $30 million today, the ‘black» gold holders owe to the real owners $140,000.000.000.000, or $140,000.000 billion, or $140,000 trillion. For reference: the US GDP is $15 trillion, the global GDP is $60 trillion, according to experts the world wealth is estimated to be around $200 trillion. As one can see the «black» gold mathematics makes us deal with exorbitant figures going beyond human imagination. Moreover, the «black» gold was supposed to be «sealed» and out of circulation for all the years (the space was needed for «press» issuing paper currency). Still some say the oligarchy dipped its hand into the storage and used the gold for its purposes. No one of «guerillas» wrote in detail about it. They only mention beneficiaries with sonorous names: the Committee of 300, Scull and Bones, the Bilderberg Club, the Trilateral Commission, the Council on Foreign Relations. Phil Shannon, another researcher on the issue, says the «black gold» was secretly put to work by all US presidents to «interfere in the political life of sovereign nations, to buy elections, to undercut the rule of law, to control the media, to carry out assassinations, in short to impose America’s will». Presidents Sukarno, John Kennedy and the Green Hilton agreement After WWII the owners of the gold and other assets leased to the Federal Reserve - the richest Asian families - joined together in an association of Trustees now known as the Amanah or Mandates. The organization was chaired by then President of Indonesia Sukarno. The researchers say there was the special UN resolution (MISA 81704), adopted by the United Nations that legitimized the authority of Sukarno. The Green Hilton agreement is an important turn of events in the «black» gold history. Allegedly in 1963 the Sukarno-led Association and US President John Kennedy concluded an agreement. Under its terms the gold entrusted to the Bank for International Settlements was transferred to the US financial system (the Treasury, not the Federal Reserve) to underpin the US dollar in the capacity of international currency. The «black» gold was to be gradually legalized and brought into economic circulation. The details of agreement are still not known, but the impression is that the legalized gold reserves got some kind of status going beyond the national limits and had to be managed by all interested parties. One could allege the dollar backed up by international gold reserves, was to stop being a pure national means of payment and acquire the traits of supranational currency. The international gold reserves were to be used for funding large-scale programs aimed at overcoming the «third world’s» social-economic backwardness. If such agreements really took place they actually would mean drastic revision of postwar financial system based on the Bretton Woods 1944 conference accords. Initially the President of the United States planned to start the internationally supported issuance of bills backed up by metal. That is the Federal Reserve System was to be deprived of the right to issue money it received in 1913. Allegedly that’s exactly the time (July 1963) the President’s known executive order (№ 11110) on the issuance of «silver» dollar saw light. The Green Hilton agreement and the order stoked anger of the Federal Reserve bosses, in a few days after President Kennedy was killed. The attempts to unfreeze the «black» gold reserves failed. In 1967 President Sukarno was fallen from power. Today when it comes to the issues related to the «black» gold the developing countries are represented by the organization called the Sukarno Trust. It is headed by some Dr. Seno (a relative of Sukarno). The Trust’s member countries have intensified their activities recently. According to Benjamin Fulford, not long ago a forum of 117 Sukarno Trust members took place in Monaco. In the given case I have presented a cursory look at the version of how the events unfolded based on the «guerillas» publications. I have failed to find the Green Hilton agreement itself. (To be continued)

Tags: Bank for International Settlements Dragon Family Federal Reserve Rothschild

«Dragon Family Gold» and US Federal Reserve System (III)

Valentin KATASONOV | 11.12.2012 | http://www.strategic-culture.org/news/2012/12/11/dragon-family-gold-and-us-federal-reserve-system-iii.html

Part I, part II The terms of return to the owners differ though they have expired anyway. According to one of the versions (David Wilcock, the Financial Tyranny), the Chinese gold had to be returned in 60 years, that is in 1998. Allegedly the successors of Guomindang, settled in Taiwan, went to the International Court in the Hague. The Court was said to hold close sessions and handed down the decision to return the gold no later than September 12, 2001, the day before the well-known events took place in New York, the terrorist act that destroyed the Twin Towers. They say there is a direct link between the 9/11 tragedy and the «black» gold, that had been stored under the Trade Center skyscrapers and mysteriously disappeared in the fire after the buildings went down… They even say the estimated value of the lost gold was - $130 billion. So, the owners were allegedly cheated. The code of silence was broken by the complaint lodged by the Dragon Family, something we started the story from. «Black» gold: low quality of «information product» So the story is captivating. But it’s neither a thriller nor an action movie. It’s the latest version of the new history, something discussed seriously by world media, lawyers, economists and US congressmen. I can tell you right now: the documents related to the «black» gold contain a lot of absurdities (I would like to make a reservation: I have never gone through the process of identifying the authenticity of documents, securities and vault pictures copies, though they say there are many strange things there). For instance, these are the irregularities that strike an eye: 1 The «black» gold reserves mentioned in the documents (2, 4 million tons) by far exceed the amount of gold extracted and accumulated in the history of mankind. 2. According to the «guerillas», nowadays the gold is stored in vaults; their number is around a hundred and a half. These are giant vaults that make Fort Knox look like a dwarf. All the vaults are supposed to be situated in different countries, mainly in the Philippines. There are pictures to make the story real, that show the camouflaged vaults from outside and inside (the halls with innumerable ingots). How come nobody in the Philippines and other Asian countries ever knew about the vaults and what was inside? It’s almost incredible. If the vaults existed, the leaders of the countries would have been tempted to confiscate the «black» gold. It would not have been a plunder, but rather doing a just thing. Why should some Dragon Family go to a New York district court when the gold could have been taken in the country it was stored in? 3. The gold was accumulated by the Federal Reserve Banks in the period between the two world wars. More often they mention the years 1928, 1934, and 1938. It’s known that soon after the election, President Franklin Delano Roosevelt issued the executive order №6102 of April 5, 1933 that made it obligatory for all individuals and legal entities, including banks, to transfer gold to the US Treasury at the price of around $20 per troy ounce. There was a special Fort Knox storage built for the purpose. The banks received so called «gold certificates» instead of gold. The private gold ownership was forbidden in the country for four decades (the ban was cancelled under President Nixon). The question comes up – how the Federal Reserve Banks could deal with gold in 1934 and 1938 when the operations were banned according to the presidential executive order? 4. The «guerillas» say the «Group 77» countries had their people in the Amanah Trustees Association. The group mainly included the developing countries, it was influential enough globally in the 1970s – the first half of the 1980s, and it had clout in the United Nations and positioned itself as an anti-imperialist force actually acting under the aegis of the Soviet Union. Why the Group 77, that fought the world imperialism, didn’t resort to such a powerful weapon as Federal Reserve securities and «black» gold reserves on the territory of the member states? Probably, because such the weapon never existed and the whole story related to the Federal Reserve System’s «black» gold and securities is invented accompanied by different kinds of fakes. Transformation of real facts and «information product» of conspirology At the same time every gold related conspirology story has some real foundation that gets distorted beyond recognition. For instance, let’s take the «willing-compulsory» transfer of gold during WWII. It really took place. But it was the transfer into the US custody, not authorized capital stock or bank deposit. There were official agreements concluded, the leaders of the states knew about it. The amount of gold kept in US storage is known. It was no secret foreign gold was kept in the Federal Reserve vaults in Manhattan. For instance, A.V. Anikin, a historian who was well-known in Soviet times, wrote, «the vaults in Manhattan appeared in the 1930s, when many European states faced the threat of Hitler’s invasion and kept part of their gold reserves in New York. When it became possible for West European and some other countries to exchange their growing dollar reserves for gold, they didn’t bring it back but kept it in US custody as a rule. By the end of 1972 the foreign gold reserves stored in the US went up to 12,7 thousand tons. There were economic and political reasons to do so. The majority of gold possessing West European countries kept a significant part of their reserves in New York. France was an exclusion, as tradition and government policy goes, it keeps its reserves on its territory… There are up to 20 thousand tons of gold, or around 60% of accumulated capitalist world reserves, stored in the United States. The amount barely changed in the 1970-1980s (A.V. Anakin, Gold: International Economy Aspect, publishing house International Affairs, 1988, p. 98, 100). As one can see the amount of gold stored in the US is twice as small as the amount adduced by «information guerillas». The topic of foreign gold stored in the United States goes beyond the limits of the article. I only want to note, there are many pressing issues related to the subject. For instance, the illegal use of gold by the New York Federal Reserve Bank. But these issues are of no interest to the «guerillas», the study is too time and effort consuming and the scale is not up to par. The results of such «study» may be really perilous. Another example. 9/11. Independent studies of the so called terrorist acts show the gold was really stored in the Trade Center’s vaults; it really disappeared after the skyscrapers went down. But its amount was rather insignificant. According to the Times Online there had been gold and silver reserves equal to $960 million. Only $230 million were found as a result of rescue operations in November 2001. The circumstances were rather strange: the gold was kept in armored heavy-load Brinks trucks in the tunnel under the Trade Center’s building. Why was it kept in vehicles? Who took it, when was it done and where the gold was taken to? The government never explained. It was all hushed up and ascribed to terrorists. Besides, the gold stored in the Trade Center was not «black», it had concrete owners. «Countless» gold riches of China Finally, the countless gold riches of China are extremely exaggerated. It goes down to the thousand years old history of trade relations with Europe. The trade was unbalanced, the export to Europe may times exceeded the import leading to the accumulation of gold in the country. According to experts (Timothy Green, for instance) there had been a few hundred, a thousand tons at best (not hundreds of thousands or even millions of tons as the «guerillas» affirm), accumulated by the beginning of XIX. Those days it was an enormous amount. The West, especially the British, did their best to return the gold. To great extent they succeeded thanks to two opium wars unleashed by the British and supported later by the French. There was little left of the fabulous riches by the end of XIX. One cannot fully negate the fact that some countries partially keep gold out of official reserves, it is not included into statistics, the specially designed secret funds are created, and that is something a very limited number of state leaders are aware of. Going back to A.V. Anikin «AS Western experts estimate, the IMF official data related to gold excludes some secret and closed funds, especially in oil exporting countries of the Middle East. According to Green, the estimated secret reserves were equal to 1 thousand tons» (A.V. Anikin, the publications mentioned above, p.95). Please note: it’s 1 thousand tons, not 2, 4 million tons, according to the «guerillas» estimates! Cui prodest? (who stands to gain?) Irregularities surface not only when the «black» gold information is compared with serious scientific sources, but with various «guerillas» information as well. For instance, David Wilcock says the Chinese gold was stored under the Trade Center’s twin towers in New York. He offers his own new story of the 9/11events. Benjamin Fulford describes with passion the outside and inside look of the vaults in the Philippines and other Asian countries the Guomindang gold is kept in. There are discrepancies concerning other «details»: some call the securities «certificates», others – «bonds», some say the securities were issued by the US Treasury, some - the Federal Reserve Banks etc. The list of irregularities and «discrepancies» may be prolonged. Personally I have no doubts, we deal with falsifications. What’s more interesting: who needs the «black» gold story? Who really stands behind the Dragon Family? Who organizes and coordinates the «information attacks» against the Federal Reserve System? It’s hard to believe the «information guerillas» are enthusiastic individuals. There is someone who creates the «most favored regime» in media. Someone provides them with (or uses agents to deliver) expensive fake documents and securities, as well as antique trunks, boxes and other containers to store them in. Real art is required to make them. Finally, someone helps to organize publicly known cases and hires expensive lawyers. The intuition says this «someone» is the one who had made the Occupy Wall Street movement be in the focus of public attention a bit earlier. Perhaps the individuals acting in different countries should not be called «guerillas» waging just liberation war against financial occupants, but rather conscientious saboteurs, used by behind the curtains actors? Like if acting before such suspicions appear, the «guerillas» say they act in the name of: a. A significant number of Pentagon generals and senior officers, dissatisfied with the Federal Reserve that has captured power in the country and imposes its foreign and internal policy on the United States; b. dozens of countries that had to deliver their gold in a «willingly compulsory» way to the Federal Reserve, later joined together in the Association of Trustees (the Trust of Sukarrno); c. The Dragon Family. Talking about the last version, there are a lot of murky things. On November 23, 2011, the date the complaint was lodged, everyone was sure rich Guomindang Chinese were behind the Dragon Family. But in April 2012, Benjamin Fulford, one of the most well-known «guerillas», resolutely disassociated himself from the Dragon Family supporters, saying the Rothschilds, Rockefellers and other major Federal Reserve System shareholders were behind it. There is something that is, perhaps obscurely, expressed between the lines: nowadays the era of paper currency is over, world oligarchs play with the idea of getting back to the gold standard at the new turn of history. To achieve the goal gold should leave the clandestine storage places and become white instead of being «black». Though it’s not clear how the Rothschilds and Rockefellers will use the gold they don’t possess. But I think «effective solutions» will be found here in the near future. The intriguing unfolding of events goes ahead like if it were an action movie. Let’s not jump the gun with ready answers. My cautious conjecture is that one should not trust too much the conspirology related publications devoted to world finances. Still, it looks like they are going to multiply by leaps and bounds.

Tags: Dragon Family Federal Reserve

Parallel World of Finances (I)

Valentin KATASONOV | 13.02.2013 | http://www.strategic-culture.org/news/2013/02/13/parallel-world-of-finances-i.html

It’s a long time world money lenders see themselves as gods. Like the Creator they have started to create the world of their own out of nothing, making money “coming from air”. So an invisible parallel world has started to take shape along with the financial world that is real and can be seen with your own eyes.  * * * The visible financial world – commercial banks, funds, investment companies, central banks, ministries of finances; financial markets (stock exchange, currency, loans, insurance), financial instruments (bonds, shares, derivatives and other treasures) etc. The life in this world is reflected in financial accounts, official statistics, it is under the oversight of financial regulators, parliaments, accounts chambers, media, and experts and so on. The functioning of the visible world goes in accordance with constitutions, laws, international agreements.  The invisible financial world is something the majority of people have no idea of. The major part of it is the shadow sector of world financial system – financial institutes and financial operations conducted under the cover of off-shores and falling out of the sight of financial regulators (central banks, ministries of finances, security and exchange commissions etc.) . One can only guess how large it is, there is no way to have a clear picture of what it is like because all the activities are conducted beyond any supervision. No books kept, no accounting before state structures exists. The world dwellers are criminal gangs related to drug trafficking, arms trade, slave trade and so on. It’s not even grey sector activities, but rather “black” economy breaching al norms of penal law. According to experts, the turnover is a few trillion dollars a year… Besides, the shadow sector encompasses various structures that do not hide underground. Many of them openly offer various services to individuals and corporations.  For instance, hedge funds involved in different ventures. Or respectable banks that offer private banking services (investing account holders money in off-shore jurisdictions). They are involved in importune advertising offering services of dubious character. The activities simply fall out of legal and financial oversight, as well as common laws and international norms, they have their own rules to abide by. The last financial crisis was of much greater depth, scale (actually the whole world) and duration due to unrestrained growth of shadow sector (many experts think the crisis is not over, it was just the first “wave”. (i)  The invisible world is not limited by “shadow” sector only. A part of it may be called clandestine. The clandestine financial world is diversified, no one knows all about it. It’s a mixture of various financial relationships and agreements hidden away from peoples, parliaments, official financial institutions, and international organizations. The secret international agreements are the best example. Some of them have surfaced to public view (for instance, financial accords between the United States, Great Britain and Hitler’s Germany). There are more numerous examples of secret accords between private structures. For instance, traditionally banks have been concluding cartel agreements in flagrant violation of anti-trust laws. It’s enough to remember the 2012 row when it was discovered that the largest banks were in collusion and manipulated LIBOR interest rates.  Few people are aware of secret deals and agreements. The unwanted witnesses have been gotten rid of without hesitation. The clandestine world has started to come into being a long time ago. It has been influencing global economy and finances, as well as foreign policies of many countries and international relations as a whole.  *** One can find a lot of material on secret finances thanks to Internet. By and large, there two major issues the publications bring out.  The first is “black gold”. It’s yellow metal stored in safes and vaults of some central banks, private global banks and other institutions. The amount of is believed to exceed by far the world official gold reserves; naturally the “black gold” is not accounted for in books, balance sheets and statistics, it’s a strictly clandestine asset. (ii) The second: mysterious US Treasury and Federal Reserve System bonds dated by the period between two world wars. The astronomic figures make it all even more sensational: the securities face values are measured in hundreds of millions, the overall bonds packages are denominated in trillions of dollars.  The both issues are very complicated. Monetary authorities, including the US Treasury and the Federal Reserve System never say a word about the events related to the securities and the gold of the invisible financial world. Here is a short list of cases related to the appearance of mysterious bonds with face values of many zeros.  The first case I know took place ten years ago. The edition of the Independent on October 28 2003 told about it. (iii) British forensic scientist Graham Hawksworth and Canadian (who was a former citizen of Yugoslavia) Michael Slamage tried to falsely authenticate fake US Treasury Bonds dated 1934 in the Royal Bank of Canada in 2001 in Toronto. The both were detained. The investigation showed they were in the possession of $ 2.5 trillion package. The US authorities said the bonds were false. The court proceedings took place in London, the accused spoke. That’s how the “Morgenthau bonds” (iv) story was made public for the first time. They said the bonds were related to the “black gold” received from Chiang Kai-shek of China. (v) The story hardly attracted any attention on the part of world media.  The second story was the financial smuggling case that began on June 3, 2009 near Chiasso, Switzerland (near the Swiss/Italian border), when Sezione Operativa Territoriale di Chiasso in collaboration with officers of Italian customs/financial military police (Guardia di Finanza) detained two suspects (who appeared to be Japanese nationals) who had attempted to enter Switzerland with a suitcase in their possession with a false bottom containing what at first appeared to be U.S. Treasury Bonds worth $ 134.5 billion. The two possessed 249 U.S. bonds worth $500 million each (among other securities, they also had 10 "Kennedy bonds" denominated at $1 billion each); and the large denominations of the securities, along with accompanying bank documentation was what attracted the Italian police's attention. Large denominations are not available to the general public; only nation-states handle such amounts of money. The story captured public attention. There are a lot of strange things hard to understand here. For instance, the Italians said at first the bonds were real, and then the news came (referring to US sources) that they were fake. The two Japanese finally vanished somewhere without a trace.  The third case happened in Spain, right after the two Japanese were detained in Chiasso. Unlike the previous case, the information was scarce that time. Spanish authorities confiscated bonds denominated $ 1.64 trillion. Spanish media wrote those were US Federal Reserve System mortgages.  The fourth time such thing happened was a year ago, it’s the most well-known case. Associated Press was the first to report it on February 1, 2012. $ 6 trillion in counterfeit U.S. bonds was confiscated in a Swiss bank.The name of the bank was not made public. Somehow it was at the request of Italian prosecutors that Swiss authorities seized the bills. Some details appeared later. According to media reports, the bonds were dated 1934 and transported to Italy from Hong Kong in 2007. Media used different terms to define the securities: “American bonds”, “US Treasury bonds”, “US Federal reserve System bonds”, “treasury notes”. One more difference to note: the difference in denomination was within the $100 million to $1 billion limit. The US said resolutely the finding was just a bunch of fakes.  All the cases mentioned above can be added by information concerning the appearance of the “black gold” and its reserves at present, as well as US officials delicate interest in “false bonds”. US special services (especially the CIA) searched for holders of before the war bonds to seize the securities. Almost ten years ago, on October 31, 2003, Carol Adler, the president of Dandelion Books, posted a press-release on Rense.com, saying she had a contact with a CIA insider, who told her about the “occult economy” and operations with the mission to find and seize the bonds. (vi)  Let’s try to make head or tail of it in the strong current of muddy waters and see if official statements of US authorities saying the bonds with multiple zeros were fakes could be trusted. (To be continued) i More in detail on international finances: World Banking Business: Shocking Data by Valentin Katasonov - http://www.strategic-culture.org/news/2013/02/04/world-banking-business-shocking-data.html, Black Holes of World Economy (part 1) by Valentin Katasonov - http://www.fondsk.ru/news/2013/01/23/chernye-dyry-mirovoj-ekonomiki-i-18813.html, Black Holes of World Economy (part 2) by Valentin Katasonov - http://www.fondsk.ru/news/2013/01/25/chernye-dyry-mirovoj-ekonomiki-ii-18824.html, Global Drug Mafia and the Banks. An Introduction to the Subject by Valentin Katasonov - http://www.strategic-culture.org/news/2012/10/06/global-drug-mafia-and-the-banks-an-introduction-to-the-subject.html.  ii Reference - “Dragon Family Gold” and US Federal Reserve System (I) by Valentin Katasonov - http://www.strategic-culture.org/news/2012/12/08/dragon-family-gold-and-us-federal-reserve-system-i.html, “Dragon Family Gold” and US Federal Reserve System (II) by Valentin Katasonov - http://www.strategic-culture.org/news/2012/12/10/dragon-family-gold-and-us-federal-reserve-system-ii.html, “Dragon Family Gold” and US Federal Reserve System (III) by Valentin Katasonov - http://www.strategic-culture.org/news/2012/12/11/dragon-family-gold-and-us-federal-reserve-system-iii.html.  iii Paul Vallely. Who wants to be a trillionaire? // Independent October 28 2003. iv The bonds were named after Henry Morgenthau, Jr. (1891-1967), who was US Secretary of Treasure (1934-1945 – during the tenure of Franklin Delano Roosevelt).  v More in detail: Eugenia Andreev. The $2.5 trillion (!) fraud vase//Ezhenedelnik 2000, 03.09.19.  vi The publishing house announced it planned to publish the book. The insider was to tell the readers all about the details of United States special services activities targeted at finding “secret” bonds. All of a sudden he died, the manuscript mysteriously disappeared.

Tags: European Union Federal Reserve Germany US

Parallel World of Finances (II)

Valentin KATASONOV | 16.02.2013 | http://www.strategic-culture.org/news/2013/02/16/parallel-world-of-finances-ii.html

Part I This way the United States shies away from anything but laconic statements saying the notes denominated in hundreds of millions or even a billion of dollars seized here and there around the world are all fakes. «It's a piece of paper with something printed on it», Brian Leary, a spokesman for the U.S. Secret Service, said of the $1-billion bonds, which contained the image of President Wilson. He said the notes were of no value.  * * * Independent experts give rather detailed comments on it. They try to define the motivation for making the notes surface: some people may be trying to get rich, some may even be involved in attempts to undermine the US dollar-based financial system...Some say the notes are real, it’s just that the United States doesn’t want to pay. I think there is no smoke without fire. To my mind, the «fake notes» ballyhoo was planned, organized and raised by the CIA and other special services. Off and on they flood the world with huge numbers of fake notes to conceal the appearance of real ones, so that they could avoid payments. It took experts just a few weeks to establish the notes were masterfully counterfeited fakes. There are reference books that make it possible to know in just a few minutes the denomination of bonds issued this or that year by the Federal Reserve System or the Department of Treasury. Actually one doesn’t need reference books for that. In 1934 $1 billion denomination was not possible in theory. After the WWI till 1934 the US yearly expenditure was within the range of $2-4.6 billion. When Roosevelt took office and launched his «new deal», the expenditure went up. Still even in 1936 the figure was $8.2 billion. Those days budget deficits were measured in a few billions. That is just a few bonds would be enough to close the hole in the federal budget. Back then nobody could buy the bills denominated in such sums, even if they really wished to do it. But nobody did. Everyone needed cash to pay for military expenditure. Soon after coming to power, Hitler got a $1 billion loan from American banks. An unprecedented amount those days! It was equal to a «Morgenthau treasury bond». In view of dollar’s fall, today it would be denominated in at least $100 billion. Can you imagine anybody nowadays willing to buy such a note? And do it on one’s own accord?  * * * The matter is treasuries could be bought of one’s own volition or under the barrel of a gun. Actually a person with a gun wants property and is offering papers in return, so that it would look like a civilized deal, not a robbery. That’s what the whole contemporary world system is built on. Asia, Africa, Latin America provide the «golden billion» zone with oil, grain, foodstuffs, manufactured goods being offered worthless papers called currency reserves in return. The reserves may only grow; they cannot be spent on pain of death. The feeling of fear is instilled by bombers and the US Sixth operational fleet. Bombs and missiles are the most reliable backing for the dollar and US Treasury bonds. Before and during the war Hitler pumped in European resources by concluding clearing deals with many European countries, all going into red ink. Fuhrer never intended to redeem the debts; in his eyes those countries were Germany’s vassals.  The United States used the pre-war tensions to grab bigger slice in the form of gold and other assets that had been accumulated in the Celestial Empire for centuries. Chiang Kai-sheik, the leader of Kuomintang, controlled the major part of gold and other riches of the nation. Japan and American bankers laid envious eyes on the treasure. America was involved in a double game: It was pushing the «Land of the Rising Sun» to invade China while presenting itself as Chinese friend and defender. In particular they did Chiang Kai-sheik a favor by agreeing to store China’s gold and other assets. To make it all look decent the US bankers offered notes nominated in huge sums in return. Having no intent to redeem anything from the very start, they just didn’t care about denominations. Of course, the Chinese leader understood well what kind of service he was offered, but he had no choice and just couldn’t refuse. As a result he got notes denominated $100 billion each for the total amount of $25 billion. A sky high sum those days. In exchange the bankers got gold, silver, precious stones, artworks, antiques, jewellery. Of course, it was not 2 million tons as some experts say. According to some estimations, the monetary gold (standard bars) didn’t exceed 100 tons plus other precious assets. No doubt «the present» from China alleviated the aftermath of recession and facilitated the implementation of the Roosevelt’s «new deal» policy, as well as the preparations for war.  There are different stories concerning the conditions of the deal. My opinion is that the explanation offered by Arthur Stern, a German lawyer, is the most credible one. He extensively explored the issue. According to him, the notes were: a) payable to bearer, not nominal ones; b) the expiration date was prolonged for 30 years (that is the date was in 1964); c) the bearer had no right for advance payment (that is getting gold and assets back), but he was entitled to a 4% par value rent (or four million dollars for every note). It’s worth to mention, Chiang Kai-sheik was the only bearer and he never got a penny.  So, that’s what Arthur Stern tells. Stalin got the notes from Kuomintang. He understood there was no chance to get anything out of it and gave the securities to Hitler as a present. According to Stern, it was done right after the Treaty of Non-Aggression was concluded between Germany and the Soviet Union in 1939. Hitler tried to offer the notes to US bankers, but was flatly rebuffed. The notes were stored in the Reichsbank vaults till the end of war and then became a trophy captured by the Soviet army. Perhaps the Stern’s detective story should not be trusted much but he is right about the starting point: there is a genuine deal behind the 1934 «secret bonds. Then US Secretary Of Treasure Morgenthau Jr. and Bernard M. Baruch, a billionaire and an adviser to Presidents from Wilson to Hoover to Roosevelt, are the persons behind it.  * * * Are the 1934 bonds genuine or fake? They are both. The ones counterfeited in our days are fakes. There are ways to determine the fraud. Those denominated in $1 billion can be thrown straight to the dustbin. The correlation between fakes and genuine notes is 10 to 1 and the real ones had all been issued before the war. They are genuine because they had been issued by US bankers. But they are fakes being issued away from public eyes, the Congress and oversight agencies. In the accountant language they are called the out of balance sheets notes. They are fake because the American bankers had no intention to pay from the very start. Michael Chekulaev, a Russian expert on stock exchange and securities, says, «I held the bonds in my hands in 2000. I even tried to find a way to present them for payment or use them for mortgage or derivative deals. The bearer was a very respectable public organization… no way it could have been involved in counterfeiting. Moreover, neither the US Federal Reserve System, nor the US Department of Treasure said the notes were fake. At that, nobody wanted to discuss the issue – neither government officials, nor bankers or investors…» Then Chekulaev offers the opinion of another expert who said the paper the securities were made of was real, but there was nothing in it. And it did smell badly. Of course, nobody ever tried to personally present the notes for payment – it’s simpler to organize the disappearance of the whole nation, not talking about individuals, than fulfill the liability and pay.  The Federal Reserve bonds exchange for assets was not just an ordinary commercial operation; it was rather a political, clandestine deal. Any clandestine deal has strong and weak points. A covert deal is backed by those who make it. And nothing else. If they bamboozle you, there is no one to complain to. Normally you can’t even try. Chiang Kai-sheik had nobody to step in for him. So he had to keep his mouth shut till the end of his life. Let’s go back to Arthur Stern, «Therefore, anyone had taken possession of these papers could receive money only if the sanction will be «owners» of the trust. That is, family members or attorneys Chiang Kai-shek. The inscription on the bank notes that it was issued to «bearer» - a formal and no practical does not matter. There was a nonsense in a secret deal, formally, from a legal perspective the significance of these securities guaranteed U.S. Federal Reserve System. Legally - it was a 100% authentic and bond certificates. But in fact, originally planned for the U.S. these securities payments other than Chiang Kai-shek and his attorneys. (I do not rule out that he and Chiang Kai-shek could also get nothing, if Stalin had not selected the trust. Chang Kai-shek had no one to complain if the return is not gold. He knew about it. Therefore, all his actions may constitute clear: high treason. Chairman of the Kuomintang stole priceless and unique treasure of the country in accordance with their personal, selfish plans)».  Conclusions 1. The US Federal Reserve System bankers are dry behind the ears in plundering other nations. The method is the same – exchanging real resources, goods, assets for pieces of paper, call it Federal Reserve bonds, US Treasury loan securities or US dollar bills…etc. The issuer never intends to redeem bonds. Formally the US Department of Treasury or Reserve banks could be an issuer. Doesn’t matter. It’s still the very same people who are behind them – the bankers seizing natural resources, gold and other treasures of other nations…  2. The very understanding that there are visible and invisible worlds allows to see through many mysteries of world politics and affairs. I agree with German expert Arthur Stern that it changes the vision of the WWII history and the postwar world order.  3. It should be expected the Federal Reserve bankers will do their best to avoid payments. They will flood the world with false bills denominated in fabulous sums to make people believe all such securities are fakes. They will use special services to find bearers of real Federal Reserve notes in order to neutralize them. In the language of special services neutralization means murder. Or they may be buying notes out for a token sum (say 1% of the nominal sum). The way the Federal Reserve System and the Central Intelligence Agency tackle the issue of «secret bonds» is a bright example of close collusion between money lenders and «knights of cloak and dagger». The efforts aimed at neutralization of «secret» bonds bearers is part of broader scale activities aimed at evading the global responsibility and obligations. The strategic goal of the campaign is to devalue all liabilities of the US Federal Reserve System and US Department of Treasury by flooding the world financial system with the FRS production in the form of dollar bills.

Tags: CIA Federal Reserve US

BRICS: Going Strong to Change the World Scene

Andrei AKULOV | 01.04.2012 | http://www.strategic-culture.org/news/2012/04/01/brics-going-strong-to-change-the-world-scene.html

On 28-29 March 2012 a BRICS summit was held in Indian capital New Delhi. The theme was “BRICS Partnership for Stability, Security and Growth”. This was the fourth BRICS summit that brought together the leaders of the emerging economic powers to discuss a host of global issues. The event took place against the backdrop of the deepening global financial crisis with no prospects for recovery any time soon. Goldman Sachs economist Jim O’Neill coined the term BRIC (Brazil, Russia, India, China) in 2001 to denote the four fastest-growing emerging economies of the world. The cooperation started at the level of deputy ministers and heads of government agencies. The foreign ministers of the four BRIC countries met in New York in 2006, beginning a series of high-level meetings. Since then, the BRIC evolved into a multilateral grouping with the first summit held in 2009, when the global financial recession was at the peak. South Africa joined the grouping in 2011 to make it the BRICS. The Big Five countries are developing rapidly, their combined economies that could eclipse the combined economies of the current richest countries of the world by 2050. These countries together account for more than a quarter of the world's land area, more than 40% of the world population and 35% of global foreign exchange reserves. Over the past 10 years the BRICS have contributed over a third of world GDP increase and grown from one-sixth of the world economy to almost a quarter (in PPP terms). According to the IMF estimates released last month the 2012 economic growth is expected to be at 3% in Brazil; 3.3% in Russia; 7% in India; 8.2% in China; and 2.5% in South Africa. For comparison the U.S. growth this year will be 1.8 percent while the 17-nation euro area is to shrink by 0.5 percent. Foreign assistance by BRICS nations has sharply increased over the last five years in line with the countries' growing wealth. RESULTS AND TRENDS The organization has gone through the initial shaping phase and has clearly taken on a political dimension over the last few years. Looking back there were verbal attacks predicting a failure. Some experts said the gaps in economic development were too dividing, the political systems and approaches to human rights were hardly unifying factors. Others insisted, for instance, that Russia’s future lied in dealing with the USA instead of getting closer to China, India and Brazil. No doubt the member countries are different and may have different stances on global issues, getting united on Libya and separated on Syria. But the unifying factors are stronger, otherwise the very creation of such an influential coalition would be unthinkable. The inability of international bodies to effectively manage the global economy and politics made the reshaping of the international institutions a burning issue. After six years since its foundation and three years since regular summits started to take place an agreement on changing the global international and financial bodies was reached making the BRICS rather an alliance of reformers. At the start the trend was strong to concentrate solely on the reform issue. The Big Five have made an important contribution into facilitating the IMF and World Bank reform by G20. In New Delhi the Big Five consented to work out a unanimous position on the issue for the G20 summit in June. But other global problems from climate change to renewable energy sources were too important to keep out of the list of the issues on the table. For instance, the way the BRICS nations deal with public health issues like AIDS and tuberculosis can set a positive template for the rest of the world. The contacts were rapidly elevated to the summits level though the organization has not established an institutionalized structure as yet. The agenda was gradually diversified, that led to the involvement of executive power agencies, academic circles and entrepreneurs. The member countries’ ministries of finance, agriculture, economy, national security agencies – all started to get involved in the BRICS activities and interact. The summits started to go in parallel with think tanks and business forums. Nowadays the BRICS member sideline consultations have become routine in the UN and other international organizations. The interaction process is vigorous beyond expectations. It boosts bilateral trade that has been growing at the rate of 28% over the last few years, but at 230 billion dollars, remains much below the potential of the five economic powerhouses. In case of Russia no doubt its accession to the WTO is a great incentive for further progress. It is understandable that some of the global powers have become critical of the rise of the grouping as it not only strikes at the roots of global divisions along the North-South or East-West lines. At the beginning of the 21 century the balance of power in international politics has changed with the rise of India, Russia, China, Brazil and South Africa. The emergence of these countries has naturally challenged the dominance of certain powers in global decision making process. The summit on March 29 considered new ideas on how to further strengthen the BRICS efficiency and raise its international clout, a framework to respond to regional and global crises; climate change and sustainable resource use, urbanization and its associated challenges; improving access to healthcare at all levels; implementing new education and skilling initiatives; working out a concept of introducing new financial mechanisms to support and boost economic growth; technologies and innovations exchange. It is agreed to enhance cooperation through exchange of experiences, as well free flow of scholars and students, joint policy research projects. The importance of holding joint forums for sharing information useful for economic cooperation as well as taking steps to discuss and agree on common stands on various global issues was emphasized. The grouping takes the changing parameters of international politics into account. The Middle East in general, Syria and Iran topped the summit’s international agenda. The Kofi Annan’s mission is Syria received unanimous support at the summit. The Big Five agreed to work together to neutralize the threats posed to each of them by sharing resources and information where appropriate, and through collaboration between relevant institutions in the member countries. The agreement to explore in greater detail the establishment of a BRICS Development Bank (South-South Bank) and an Infrastructure Investment Fund is an issue of special importance. Appropriate measures to bring their stock exchanges closer together were also considered. The initiative allows the countries to pool resources for infrastructure improvements, and can also be used in the longer term as a vehicle for lending during global financial crises such as the one in Europe. The agreed plans to create new, credible institutions to initially supplement and, perhaps, eventually substitute for the existing ones such as the World Bank and IMF, that failed to predict and efficiently fight the recent world economic crisis, would be a momentous achievement. It would reflect an understanding the Bretton Woods times institutions are not the right tools to meet the 21 century challenges. At the same time the BRICS members are using their new influence to put pressure on the IMF to reshape its voting structure to better reflect the shift in economic power. It’s position on currency reforms, the calls to revive global trade talks would help substantially to move these issues out of the deadlock at G-20 level. An agreement to replace the US dollar by own currencies in mutual credit lines is a great achievement of the summit too. The member countries demonstrated a desire to reduce the risks associated with the current economic woes in the United States. Actually it means that BRICS countries are saying that the US economy is currently ineffective and prone to risks. The leaders also agreed to allow their individual development banks to extend credit to other members in local currency A benchmark equity index derivative shared by the stock exchanges of the five BRICS nations is to be launched on March 30, 2012, the exchanges involved. They would be cross-listed, so can be bought in local currencies. The question of convertibility of the BRICS countries’ currencies could be resolved in the near future. The fact that BRICS countries are moving away from the use of the dollar is only natural. The move will contribute to a more stable world economy. The BRICS countries' national economies will also benefit as a result. The state of the euro zone and the continued ripples created by the global financial crisis necessitate greater emphasis on creating frameworks for enabling viable responses to financial shocks within and outside BRICS. A systematic approach was discussed to work out responses to economic downturns in the global economy. BRICS should evolve as a platform for creating concept based multilateral policies and develop credible mechanisms to meet the challenges and respond to local, regional and international political and social turbulence such as the “Arab spring”. The Delhi Declaration adopted at the end of the summit reflects the BRICS' collective position on major global agenda issues. RUSSIA As a member Russia has certain advantages. The strong macroeconomic data makes it stand out. Russia is the 7th biggest economy of the world with its 143 million population and with approximately 2 trillion 223 billion dollars of gross domestic product according to purchasing power parity. Unlike struggling Western European economies, Russia has been relatively resilient in the face of global volatility. The country’s economy grew 4% in 2010, 4.3% in 2011 and is expected to grow 3.3% in 2012 according to IMF. Joining the W.T.O. capped a long period of transformation for Russia. One of the most important indicators is Russia’s $19,840 per capita income as opposed to $11,127 in Brazil, $10700 in South Africa, $7536 in China, and $3586 in India (2010 World Bank estimates). This means that consumers are the richest of all the BRIC nations. According to the Russian leading private investment bank Troika Dialog data, 68% of the people can be counted as middle class in Russia (100 million people) against 31% in Brazil (75 million), 13% in China (160 million) and less than 3% in India (30 million). The gap between Russia and China is considerable but in terms of market size, Russia easily beats Brazil and India. In other words China and India are better markets for producers of low-quality goods whilst Russia and Brazil are attractive for car and high technology producers. In addition, education is telling of the possibilities in Russia. An average Russian has 8.85 years of schooling, compared to 7,54 years in China, 7,17 years in India and only 4,39 years in Brazil. Around 70% of the Russians get higher education, compared with just 20-25% of the Brazilians. Since 2000 Russia’s real gross domestic product grew by 5.6% annually in average. Russia’s energy resources and nuclear technology experience are a real boon to the BRICS economic clout. Russian President elect Vladimir Putin wrote in his pre-election article called Russia and the Changing World (published in Moskovskie Novosti February 27 issue) that that the BRICS will have to work together more closely in the United Nations. Putin added that Russia will continue to prioritize its relations with the bloc, which he called “the most telling symbol of transferring from a unipolar to a more just world order.” Commenting on the summit’s results on March 29 Russian incumbent President Medvedev stressed the BRICS should build a new model of relations out of the established pattern of stereotypes like “a bridge” or “an intermediary. He said: “the future agenda foresees transformation of the forum into a strong and influential organization.” PROSPECTS BRICS may become a member of the club of international bodies shaping the pattern of global management in the 21 century. It’s already on the way interacting with the G8. The formal and working pattern of cooperation with the core world institutions, especially the UN structures, comes to the fore that makes it an imperative to focus on legal aspects of the status and creating appropriate institutions. The joint economic investment projects will require corresponding management and financial support. An ad hoc approach would be a good start. Establishing a management committee to oversee programs with funds coming from a BRICS development bank would boost economic integration. The creation of permanent secretariat (instead of temporary structures being a responsibility a host country) would be a step forward. No red tape but a compact efficient body with no extra weight contrary to what they have in Brussels. The BRICS cannot avoid facing the global challenges. Fighting drugs proliferation is an important direction of activities. What is important is that BRICS becoming a powerful world actor outside the US and Western influence. The member countries do not represent themselves only, all of them are regional leaders. Like Brazil represents Latin America, Russia – the post Soviet space and the CIS. The BRICS has emerged a global player with a strong voice. The forthcoming Delhi summit not only confirmed the fact, but also led to establishment of new mechanisms to strengthen multipolar world structure. The organization can provide an alternate pattern for global development. The New Delhi summit made evident that a very strong and vibrant organization has emerged cutting across geography and ideology. What makes the BRICS unique in the world is that is not a geographical grouping like the Association of South East Asian Nations, or commodity-based like the Organization of Petroleum Exporting Countries or security-based like the North Atlantic Treaty Organization. Perhaps it is the only global body which has emerged not in terms of geographic divisions, or on a particular issue of concern, but rather as a global body with global objectives. It should move on from being a grouping of individual nations, discussing agendas to becoming an institution for setting regional and global agendas. Some experts say now that the overall success of the BRICS may be a decisive turning point in making the world a fair place under multipolar power structures. Evidently there is a prospect of unifying the bloc as a political alliance pursuing internal integration. No doubt the summit results warrant the BRICS greater say in global decisions.

Tags: BRICS Brazil China India Russia South Africa

Financing a breakaway civilization: A series of scandals involving allegedly counterfeit "bearer bonds" make up the biggest and most under-reported financial story of the 21st century. I've attempted to summarize these events for /r/conspiracy's consumption in the following analysis. (self.conspiracy)

submitted 25 days ago by axolotl_peyotl

The following is absurdly long because it needs to be. /r/conspiracy has given some attention to pieces of this story, but there never has been a comprehensive overview of the subject here, so I thought I would make an attempt.
Although I'm including links to several different sources, including from “mainstream” as well as alternative media, the majority of the analysis I'm presenting here comes from the research of Joseph P. Farrell, a writer on topics like alternative archaeology, physics, technology, history, and other “strange stuff”. I've also made /r/josephpfarrell for some of his videos and blogs, many of which I will be quoting from in the following analysis.
To being with, here's a brief overview of three essential methodological assumptions of any counterfeiting scheme:

1. One does not counterfeit something that does not currently exist as a medium of exchange, or that is not convertible into it. One only counterfeits, or mimics, something real.
2. Similarly, one does not counterfeit 500, 1,000 or 10,000 dollar bills. One only counterfeits what one can reasonably expect to tender to a target group, and thus must tailor its counterfeit function to the target's scale of affluence, and do so without raising suspicion.
3. One must produce a product of sufficient quality to pass the scrutiny of the target group. One does not go to the expense and effort of producing a fraudulent product that cannot be used because it does not exist, is too large a denomination to be traded with the target group, or is too poor in quality to be traded. Quality must be sufficiently high to ensure first sight acceptance of its authenticity.

Things change a bit when the target group is very wealthy, as securities (stocks, bonds, etc.) become the preferred method. Also, a wealthy target group is likely to be privy to the existence of instruments most don't know exist, and can call upon private intelligence resources to verify information.
But the point remains, one does not counterfeit what does not exist. And an addendum: One does not counterfeit something that the very wealthy do not suspect exists, or know to exist.
Before delving into the various bearer bonds scandals, it's important to mentioned a very relevant historical antecedent to these recent events, namely an extraordinary undertaking carried out by Nazi Germany.
Operation Bernhard was the largest counterfeiting operation in history. Its goal was to replicate the paper of English notes, copy the printing plates to reproduce the tiniest detail, and employ mathematicians to work out the Bank of England's numbering system.
Nazi Germany was trying to erect a hidden system of finance aimed at wrecking the British war economy...they were at war with the British financial elite. It's important to note the connection between financial fraud and intelligence bureaucracies. The SS had essentially created a counterfeiting bureaucracy.
All in all, and these are generally considered to be the most conservative numbers, Operation Bernhard produced a total of 7 million facsimile British pound notes during the war, totally a staggering 135 million pounds. Other estimates range well over 300 million pounds.
Here are some important points about the implications of Operation Bernhard that are relevant to the rest of the discussion:

1. State-sponsored counterfeiting of undetectable facsimile banknotes had been successfully undertaken on an industrial scale, becoming a significant part of the money supply and were only removed with great difficulty.
2. Although conceived as economic warfare, it morphed into a virtually inexhaustible means of financing covert activities. Industrial scale counterfeiting became the link between covert operations and research projects.
3. Access to this type of funding could allow any intelligence bureaucracy and/or secret research entity to become independent of its controlling state and its financial institutions, whether public or private.
4. In the distribution of the facsimiles, it's necessary to have “neutral points of entry” into the circulation scheme. In the case of Operation Bernhard, Switzerland and the Vatican were used (remember those two places).

According to the research of Farrell, Richard Dolan and many others, industrial scale counterfeiting survived WWII to become the favored method of the independent financing of covert research and operations of what has become often referred to as a “breakaway civilization”. Operation Bernhard survived WWII, at least conceptually, as well as the accompanying Fascist ideology.
According to Farrell, the major factional structure of this breakaway civilization, as far as finances are concerned, are composed of the following:

1. A “rogue” element within the American military-industrial-intelligence-finance complex with ties to similar oligarchical interests in Great Britain, Japan, Germany, France, etc.
2. The international criminal underground (Cosa Nostra/the Mafia).
3. The international Fascist element, or what Farrell refers to as the “Nazi International”.

To introduce the next section, here's an excerpt from an article called Parallel World of Finances that continues to discuss the various incidents concerning bearer bonds:

The invisible financial world is something the majority of people have no idea of. The major part of it is the shadow sector of world financial system, financial institutes and financial operations conducted under the cover of off-shores and falling out of the sight of financial regulators (central banks, ministries of finances, and security and exchange commissions). One can only guess how large it is, there is no way to have a clear picture of what it is like because all the activities are conducted beyond any supervision. No books are kept, and no accounting before state structures exists.
The world dwellers are criminal gangs related to drug trafficking, arms trade, slave trade and so on. It’s not even grey sector activities, but rather “black” economy breaching all norms of penal law. According to experts, the turnover is a few trillion dollars a year…Besides, the shadow sector encompasses various structures that do not hide underground. Many of them openly offer various services to individuals and corporations.

And now, the bearer bonds. Here's a definition from the Wikipedia page on bearer bonds:

A bearer bond is a debt security issued by a business entity, such as a corporation, or by a government. It differs from the more common types of investment securities in that it is unregistered--no records are kept of the owner, or the transactions involving ownership. Whoever physically holds the paper on which the bond is issued owns the instrument. This is useful for investors who wish to retain anonymity. Recovery of the value of a bearer bond in the event of its loss, theft, or destruction is usually impossible.

The first reported case of strangeness concerning the so-called “Morgenthau bonds” became public in 2003. Henry Morgenthau was the US Secretary of the Treasury during the 1930's, when many of these bonds supposedly originated.
From a BBC article: Two men have been found guilty of conspiracy to defraud in a case related to fake US government bonds worth $2.5 trillion.
The individuals who were caught said the bonds were related to the “black gold” received from Chiang Kai-shek of China. The story hardly attracted any attention on the part of world media. The bonds were supposedly issued in 1934, a year that will continue to pop up. The word "dollar" was printed on the bonds instead of "dollars". Glaring typos on these various bonds will become a common theme as we explore further.
The following article summarizes the implications of all these weird bond incidents: Secret "Occult Economy" Coming Out of the Shadows?

Yet, although the bonds/notes in the Halksworth case were demonstrably false, they did reveal some rather startling information, that fake bonds were often included amongst large quantities of real bonds so as to preclude the holder from ever being able to cash them.
Indeed, when questioned by the police as to his role in the fake bond scandal, Halksworth responded by telling police that “Deliberate mistakes were often made in such bonds as a security device; ask the CIA.” When the police pointed out that the mistakes were so obvious it looked like a child had made them, Halksworth responded, “Exactly.”

Farrell continues with an analysis on this story here.

So, ye olde plotte thickens, for now we have the involvement of someone with expertise precisely in such bonds and their authentication, alleging that mistakes were deliberately made as “security devices” and that the CIA was involved in this, clearly implying a hidden economy connection.

Further reading: 2.5 trillion in lost 1930's US Treasury Notes? Naïve scam or secret CIA counterfeits?
Who wants to be a trillionare?
The Japanese Bearer Bond Scandal: Mystery surrounding 134.5 “fake” billion US dollars seized in Ponte Chiasso remains
This story is significant enough to be mentioned on the Wikipedia page for bearer bonds:

In June 2009, Italian financial police and custom guards seized documents purporting to be U.S. bearer bonds, totaling $134.5 billion. The bonds were in $500 million and $1 billion denominations, although the highest denomination ever issued by the US Treasury was $1,000,000. It was unclear what the purpose of the fake bonds was; the two men carrying them were not detained after the bonds were seized.

Now if that doesn't raise some questions...here are some more articles on the subject:
Strange Inconsistencies in the $134.5 Billion Bearer Bond Mystery
The following are from Farrell: The strange case of the Japanese Bearer Bonds
More information on the Japanese Bearer Bonds
Update on the Japanese Bearer Bond story, with pictures of the bonds and “certificate of authenticity”
From the first of Farrell's articles:

There were 249 bearer bonds were in denominations of $500,000,000, with ten so-called “Kennedy bonds” each denominated at a value of $1,000,000,000. Some of the $500,000,000 bonds were dated as far back as 1934.
This is where the plot begins to thicken. For one thing, bonds of $500,000,000 denominations did not exist (so we’re told) in 1934, and thus they were deduced to be counterfeits, though, strangely, the Italian authorities at the time of the arrest were waiting for the US Securities and Exchange Commission to make a declaration as to their authenticity.
Moreover, we are informed by a number of internet articles and posts, Bloomberg for example, on this bizarre episode that the bonds were all so well-executed that they were “indistinguishable from the real ones.”
J.S. Kim, in his post on the subject “Strange Inconsistencies in the $134.5 Billion Bearer Bond Mystery,” asks a pertinent question: How can this quality be so good, and “yet the people involved in the alleged forgery be so ill-informed as not to date the bearer bonds with a more recent year that would not immediately identify them as fraudulent?”
The second problem, noted by Kim in his article, is that the $1,000,000,000 denominated “Kennedy bonds” were never known to exist at all. “This discovery defies any logical explanation. Why would expert counterfeiters make 249 bearer bonds with denominations of $500 million apiece, each indistinguishable from the real thing, and then instead of just making 20 more such bonds, decide to make 10 bonds in denominations of $1 billion apiece in a bearer bond design that never has existed? Were the alleged counterfeiters just too lazy to confirm if Kennedy bearer bonds were ever a legitimately issued security? Again, this story makes no sense.”

The number 134.5 billion should be eerily familiar as well: On March 30, 2009, the US Treasury Department stated that the Troubled Asset Relief Program had $134.5 billion remaining, the exact amount of the “stash” seized in Italy.

This fact led some to speculate that, in fact, the bonds, including the so-called Kennedy bearer bonds, were real, but that they had been secretly issued by elements in the American government to keep the economy afloat. Others continued to maintain the counterfeit story. Some began to advance the argument that the Treasury’s announcement in March of 2009 would have allowed two months for forgers to counterfeit the exact amount of bonds and then allow them to be caught, in a murky economic warfare operation.

Are the Kennedy bonds real? Are all these bonds really counterfeit? If they are, the fact they are such excellent copies suggests that whoever was behind it ultimately had to be a nation-state or someone in possession of the genuine article. If they are based on secret “exemplars” then a clear message is being sent to whoever is secretly issuing these bonds: We know the game.
It took US officials two weeks to make a public statement that they were counterfeit. It definitely rattled some people in high up places. Even if they were fakes, they were based on something real that the financial powers did not wish to be known.