Thursday, September 29, 2016


Mr. N.S. noticed and shared this article, and I think it is hugely important, even though it may not be recognized in many places as such.
Why the importance?
Over the years I've argued in various blogs, interviews, and most importantly, books, that there is in existence a hidden system of finance in the world, being run largely by elements in the American deep state, in collusion with those not only in other countries, but in certain prime banks of the western financial system. This system, I have argued, relies on various forms of "securities", usually in the form of commodities-backed bearer bonds. As a component of this argument, I have also proposed the hypothesis that the bearer bonds scandals of 2009 and onward were components of this scheme that, inadvertently, were exposed by various police actions, but that they were not recognized as such, and usually dismissed as "hoaxes" and the involved securities as :"counterfeits." Never addressed by the lamestream media was the fact that if these scandals represented counterfeiting schemes, then they represented some of the goofiest schemes in history. We were assured that no such bearer bonds were ever issued by the US Treasury. But the unasked, and hence unanswered question, was why anyone would counterfeit a security which never existed at all? One does not counterfeit seven dollar bills. Similarly, the counterfeiter relies on the counterfeit instrument to be exchanged for goods, services, or legitimate securities or money. Counterfeiting securities in astronomical denominations of hundreds of millions, or even a billion dollars, also seems to defeat the purpose of counterfeiting, for even at extremely sharp discount, who has that kind of pocket change? Considerations such as these led me to propose that there was an underlying reality represented by the bearer bonds scandals, and that they in turn may be part of this hidden system of finance. There were, of course, academic attempts in a few books to derail this whole notion, and I even covered some of them in my book Covert Wars and Breakaway Civilizations. These attempts were less than convincing, and didn't even address the fundamental questions as I have reviewed them in this paragraph.
But now there is perhaps, with this article, another clue into the the architecture of this system:
Consider the implications of these paragraphs for the hypothesis of such a hidden system of finance, for after all, if one is moving billions, perhaps even trillions, of dollars of "securities", one has to have a means of trading and clearing quickly and cleanly:
Definitions. A vulnerability is a weakness in a network’s defenses. An exploit is a piece of software that takes advantage of a vulnerability. A zero-day exploit is a piece of software that takes advantage of a vulnerability that is known to a small group of aggressors and generally not to the defenders. “Back door” is another name for much the same. There are variations. Infinite invention is at play. Welcome to the Dark Net, a wilderness where wars are fought and hackers roam. More definitions. The Dark Net exists within the deep web, which lies beneath the surface net, which is familiar to everyone. The surface net can be roughly defined as “anything you can find through Google” or that is otherwise publicly indexed for all to see. The deep web is deep because it cannot be accessed through ordinary search engines. Its size is uncertain, but it is believed to be larger than the surface net above it. And it is mostly legitimate. It includes everything from I.R.S. and Social Security data to the internal communications of Sony and the content management system at The New York Times. It includes Hillary Clinton’s e-mails and text messages, along with everyone else’s. Almost all of it is utterly mundane.
The Dark Net occupies the basement. Its users employ anonymizing software and encryption to hide themselves as they move around. Such tools offer a measure of privacy. Whistle-blowers and political dissidents have good reason to resort to them. Criminals do, too. White fades quickly through gray and then to black in the Dark Net. Furtive sites there offer all manner of contraband for sale—narcotics, automatic weapons, contract killings, child pornography. The most famous of these sites was Silk Road—the brainchild of Ross Ulbricht, a libertarian entrepreneur who was arrested by the F.B.I. in San Francisco in 2013 and sentenced last year to life in prison without parole. New and even larger marketplaces have opened, including the current leader, AlphaBay, which is owned by a man who has been quoted as saying he resides in an “off-shore country where I am safe,” gives interviews to the press, and openly defies attempts by the authorities to shut him down. There are twists: illegal narcotics sold over the Dark Net tend to be purer, and therefore safer, than those sold on the street—this because of the importance to the sellers of online customer ratings. By comparison, it is hard to see the bright side of missile launchers or child pornography. (Emphasis added)
For those who, like myself, suspect that the child sex slavery business, and the occasional scandals that break out concerning it - the Saville and Franklin scandals, or the Finders scandal, or even the Penn State scandals - are all deeply related, this provides food for thought. But go a step further: what if all these activities are related to this hidden system of finance and the group or groups utilizing it?
Such a capability would not only seem to be warranted but essential to any such hidden system of finance. Notably, as the article states, virtually every type of criminal activity and group is represented on that "Dark Net":
Opsec worked for nearly six months to clean up the mess. By backtracking he discovered that the hackers were a group associated with the Chinese army. They operated out of a specific building near Shanghai, which he was able to locate, and specialized in targeting entertainment companies. Eventually he was able to identify some of the individuals involved, and even to obtain pictures of them. Nominally, that was the end of it. Opsec told me that because a government was involved, and legal recourse in China was unrealistic, no further action was taken.
What do you do when there is no law? Counter-hacking is a temptation, but can be dangerous. The Russian mob, for instance, has a poor sense of humor, and Colombian drug cartels are not much fun, either. Also, among independent hackers there is no small number of psychopaths. Over the years the Company has endured death threats, rape threats, and bomb scares. It gets personal. In a world without privacy, home addresses as well as the names of spouses and children are easily found. As the Democratic National Committee recently discovered, it is better not to get hacked in the first place.
If one wants to track such activities, much less the activities of a hidden system of finance, however, then it would seem to imply not only the existence of a "Dark Net", but of yet another "sub-basement" beneath even that, a "Storm Shelter" so to speak, enabled by technologies making it virtually impenetrable to the outsider, technologies reliant upon quantum encryption and entanglement for example. Notably, China just launched (or rather, claimed to have launched) the world's first quantum communications satellite.
In other words, to make such a hidden system in today's world work, one would need at least three things, two of which I have argued in previous books (Covert Wars and Breakaway Civilizations, and The Third Way): (1) a physical medium of exchange, represented by the "counterfeit" commodities backed bearer bonds, giving anonymity to the participants in the system, (2) the participation of hose in key positions in prime banks and clearing systems, and finally, as this article implies (3) a secure electronic system to track and monitor trades between participants, and that implies technological capabilities only recently coming into public view (think that Chinese satellite once again).
And there's one final consideration:
I and others (most notably Catherine Austin Fitts) have noted that all the money awash in the financial system is not behaving in a manner in accordance with any standard financial model or analysis. Effectively, we are arguing that the financial anlyst who does not factor in the huge size not only of the black budget, but more importantly, of the underground economy and of the hidden system of finance, simply cannot and will never be able to make any accurate financial prediction. The essence of the argument is that too much money is disappearing, and not appearing anywhere in the planet's financial system. With this in mind, we have concluded that much of it might simply be disappearing off planet, in the form of a tribute, tithe, or even trade, conducted by the mandarins of that system. It sounds, of course, at first glance, totally loony, until one looks at the actual figures. Quadrillions in derivatives, exceeding by several times the entire annual planetary gross domestic product? Either the banksters are committing financial suicide for everyone, or those quadrillions have been collaterized... elsewhere and with resources of "elsewhere".
And to make that work, and keep it secret, one would have to have such a deep dark net, a "storm shelter"....

No comments:

Post a Comment