Saturday, February 18, 2012

IN THE GOD WE DOUBT - FAKE BONDS and American Monetary History

(THE ARTICLE IS RELATED TO http://feraios.blogspot.com/2011/08/bonds-history-and-upcoming-false.html .CLICKING ON THE TITLE WE ARE REDIRECTED TO AN ARTICLE ABOUT Six Kinds of United States Paper Currency )

Italian police seize $6tn of fake US Treasury bonds

MORE AT http://www.guardian.co.uk/world/2012/feb/17/fake-us-treasury-bonds-seized

A)Why Were The Trillions In Fake Bonds Held In Chicago Fed Crates?(Editor's Note.EN. when the total estimated U.S.A debt is 15-16 tn USD )

ORIGIN OF THE FEDERAL RESERVE AND BANK OF INTERNATIONAL SETTLEMENTS

The Federal Reserve began on December 23, 1913. President Woodrow Wilson expressed grave concerns about the seriousness and the danger of what had just occurred -- the overthrow of the American economic system by a group of private bankers.

The first major spark to begin World War I occurred the following June, when Archduke Francis Ferdinand, the heir to the Austria-Hungary throne, was assassinated -- along with his wife.

As we revealed in Section Two, World War One had been planned by Guiseppe Mazzini, the head of European Freemasonry, and Albert Pike, the head of American Freemasonry, back in 1871. Their plans were proudly displayed at the National Museum Library in London.

In June 1914, Archduke Ferdinand was assassinated by a nationalistic member of a different country -- Serbia. Then, most likely thanks to press manipulation, the public was whipped up into a frenzy -- and they were told that this was an act of war.

Assassinations are very easy to stage. That appears to have been a key part of how Pike and Mazzini's plan to start World War One was realized in practical terms.

The outrage from this assassination spread throughout Europe. The controlled press in different countries most likely contributed by manipulating their people into taking sides.

Germany quickly sided with Austria and Hungary. Germany then declared war on Serbia and her ally, Russia, seeking vengeance for the murder of Archduke Ferdinand.

IT SOON SPIRALED OUT OF CONTROL
Germany's declaration of war was on August 1, 1914 -- and very soon afterwards, the whole world began spiraling out of control.

Germany invaded Luxembourg, declared war on France and invaded Belgium to have an attack point against France. Britain declared war on Germany in defense -- and even Canada joined the fight.

This all occurred in 1914, and the battle raged on until 1919 -- with several other countries getting drawn in along the way. Germany was crushed at the end of the war, and the Treaty of Versailles was drawn up to help rebuild their economy.

By 1921, it was clear that nothing had really changed in the world. The rich still got richer, the poor still got poorer, and no one really "won" the Great War -- as it was called back then.

Within the insider circles of the international community, much of the problem was blamed on the gold standard -- for the reasons outlined in Adam Smith's The Wealth of Nations from 1776.

The degree of atrocity that was suffered from the gold standard was sufficient to convince Emperor Hirohito of Japan to travel to the United Kingdom and sign a secret pact, in 1921, to create the Bank of International Settlements (BIS).

The BIS was created by the founders of the Federal Reserve, which had started about seven years earlier. We will learn a lot more about them -- and read from their own official documents -- in Section Five.

The BIS was intended to expand the powers of the Federal Reserve into a truly global reach... and it worked.

HIROHITO ACCEPTS THE PLAN TO START THE BANK OF INTERNATIONAL SETTLEMENTS
The plan Hirohito accepted was also secretly agreed to by several other nations in the 1920s. It took time, but a consensus was reached within less than a decade -- and they eventually went public about their new alliance.

Whether voluntarily or involuntarily, all the most significant supplies of gold and silver in the world were turned over to the Federal Reserve and Bank of International Settlements and "blacklisted" -- that is, taken off-market.

The idea was obviously not to destroy all the gold and treasure -- that would be a stupid and needless tragedy. Instead, the various leaders were told they merely had to put all their gold on deposit. Secret deposit.

Everyone still got to keep their gold -- only the public would be told it was missing, or it had never existed in the first place. The Asians certainly hadn't gone public with how much they really had, so that whole story could be easily kept secret.

BONDS WERE ISSUED IN EXCHANGE FOR THE GOLD
Each country that handed over its gold -- and / or had its gold forcibly taken -- was given certificates of deposit, or
bonds, in exchange for what they gave up.

The bonds were issued by the Federal Reserve, through their various banks in major cities of the United States. These bonds were considered to be as valuable and as redeemable as cash.

The problem was that the Federal Reserve printed vastly, vastly, vastly more money in these bonds than existed in the open, honest economy -- trillions upon trillions of dollars' worth, beginning in the 1920s.

Remember -- the amount of gold that actually existed was much greater than anyone could have ever imagined, since the Asians had kept it all very secret.

Had the public found out how much gold there really was, it would have created a massive economic shock. Gold would have become practically worthless overnight.

The world leaders needed to know that the gold they put on deposit was still worth its actual value in conventional dollars. Otherwise, they would be really pissed off about not getting "fair market value" for what they were "depositing" with the Federal Reserve.

EVERYTHING WAS PACKAGED VERY NICELY -- AND VERY SECURELY
The bonds looked very sexy -- and had huge numbers on them.

There were 100,000-dollar gold certificates, million-dollar gold certificates, 100-million-dollar bonds and even billion-dollar bonds.

That's right. Single sheets of paper were allegedly worth a billion dollars in some cases.

I am aware of how crazy this sounds, but the intel on this is very good -- including pictures that David and Mackie Hutzler may have given their lives for us to see.

As an investigator, my job is to pass along the information to you. I cannot assume that I know everything, or that every piece of data is correct. However, when I have multiple, totally independent sources tell me the exact same things, I listen.

Though there were several different types of storage containers, many of these bonds were put into 8.5x11-sized boxes carved out of a single piece of durable wood -- about two and a half inches deep, making them almost as big as a typical ream of 500 sheets of paper.

THEY NEEDED TO STAY SECURE FOR 60 YEARS
The wooden boxes were then glued shut. That way, the bonds were much less likely to get moldy -- after being stored in a chest and buried underground in a secure location for 60 years.

After the 60 years, the Asian countries were told they could dig up the chests, cash out the bonds and get their money back if they wanted to.

According to Fulford, Keenan and other sources, in 1938, the Kuomintang dynasty in China sent seven battleships' worth of gold -- a staggering amount -- to the United States to protect against it being stolen by the Japanese.

This is a key aspect of the trillion-dollar lawsuit we have been discussing.

In response, the United States issued massive amounts of 1934-series Federal Reserve bonds -- carefully sealed in boxes, which were then sealed in locked chests -- and handed them back to China as collateral.

THE 60 YEARS WERE UP IN 1998 -- AND THE FEDERAL RESERVE LOST THE CASE
In 1998, the 60 years were up. The Kuomintang had fled to Taiwan and were no longer the ruling party in China, but they still wanted their gold back. The Federal Reserve fought them in a secret international court at the Hague -- and
lost.

The Federal Reserve was ordered to pay out the debt as of September 11, 2001. They did not. We all know what did happen that day.

What Very few people knew, until now, was that all the Kuomintang gold was being stored under Building 7 at the World Trade Center. After the towers came down, the vaults were "mysteriously" found to be empty.

The Kuomintang have been fighting ever since to get their gold back. The size and scope of such a "winner takes all" heist is truly extraordinary -- but something outrageous and unprecedented in any known laws of physics did happen that day.

Susan Lindaeur is now the highest-level, most credible witness to have added significant strength to the story that "9/11 was an inside job."

The lawsuit Neil Keenan has filed on the Dragon Family's behalf could potentially break the whole story open before the eyes of the world -- and again, this lawsuit has the backing of a 122-nation alliance.

I have written this investigation to help end the deadly silence -- so justice can be served. Ultimately, this is everyone's war -- not just those seeking to reclaim their stolen property.

THE BOXES WERE COVERED WITH ENGRAVED COPPER
Before we go into more detail about the BIS and the open, provable aspects of the story, it's important to fill in a few more of the technical details about the bonds, the bond boxes and the bond chests.

The 8.5x11-sized wooden bond boxes were faced and sealed with bronze-colored sheet metal -- for extra protection from the elements underground.

The sheet metal on the boxes had elaborate, official engravings on every side. The engravings indicated that the bonds were issued by the Federal Reserve. They indicated which Federal Reserve bank, from which American city, had issued the bonds.

The range of serial numbers for the bonds were also engraved into the sheet metal -- as well as the staggering value of the financial instruments inside.

MORE ABOUT THE CHESTS
Many of the larger chests, particularly in the 1934 series, held a total of 13 of these boxes. They did very much look like the classic "treasure chest."

Twelve of the bond boxes inside these chests were about two and a half inches wide, as we said -- and the thirteenth was only half that width and was actually a "Book of Redemption", not containing bonds but rather instructions on how to redeem them.

Each chest also contained a single, small cylindrical "Information Scroll" mounted in a clamp. All thirteen of the boxes fit neatly and snugly into the chest like a row of books.

The chest was then also covered with engraved sheet metal. The engravings said the bonds were issued by a Federal Reserve bank from a given American city. The serial numbers of the bonds were listed, as well as the total value of everything in the box.

Many of these 1934-series chests carried a written value of Three Trillion Dollars -- and a substantial number of them were produced. Each chest was padlocked shut for even further protection.

THE BONDS WERE NEVER MEANT TO BE USED IN THE "OPEN" ECONOMY
Even though the Kuomintang had the option to reclaim their gold after 60 years, the bonds were never meant to be used as cash. The money was still expected to be held on deposit and used as collateral for the existing "open" currencies of the world.

If the bonds were freed up and actually cashed, they could ruin the United States economy -- which had nowhere near as much money in it as the Federal Reserve had printed in the bonds.

The whole idea was to keep the bonds on deposit -- as well as the gold they were issued against.

The bonds represented how much value a given country held in the BIS system. We will explore the inner workings of this system in Section Five.

Most importantly, the bonds, boxes and chests all contained deliberate, glaring errors in spelling and grammar. That way, if anyone did actually try to use them, the authorities would say they were "Fake".

It is not clear whether the Asians and other foreign nations were aware of these deliberate errors or not. Probably some of them were, and some of them were not.

Meanwhile, anyone who actually tried to cash the bonds would be lucky to escape from their plan alive.
HOW DID I KNOW ALL THIS?
The reason why I know all this is rather convoluted, but compelling. In mid-December, once I knew what questions to ask, a top insider described to me what these bond boxes actually looked like. He had also toured some the vast facilities where the gold was held.

I then emailed Neil Keenan, the principal in this trillion-dollar lawsuit, with the information. Less than 15 minutes later, he sent me an avalanche of pictures that looked exactly the same as what I had just described -- even though he had never met my insider.

Bear in mind that I'd already been in contact with Keenan for nearly three weeks by this point. There was no possible way he could have moved fast enough to create fakes that matched what my insider had just described.

I never thought I was going to do this, but since there are already two other online sources that have leaked very similar images, here are some of the pictures Neil Keenan sent me.
MORE AT http://www.zerohedge.com/news/why-were-trillions-fake-bonds-held-chicago-fed-crates

B)Counterfeiting and American Monetary History

In the November 10, 2011 issue of the New York Review of Books, Gordon Wood, professor emeritus of history at Brown University, reviews a new book by Ben Tarnoff Moneymakers: The Wicked Lives and Surprising Adventures of Three Notorious Counterfeiters. I found the second paragraph of Wood’s essay, especially arresting.

Almost from the beginning of American history Americans have relied on paper money. Indeed, the Massachusetts Bay Colony in 1690 was the first government in the Western world to print paper currency in order to pay its debts. Although this paper money was not redeemable in specie, the Massachusetts government did accept it in payment for taxes. Because Americans were always severely short of gold and silver, the commercial benefits of such paper soon became obvious. Not only the thirteen British colonies, but following the Revolution the new states and the Continental Congress all came to rely on the printing of paper money to pay most of their bills. By the early nineteenth century hundreds of banks throughout the country were issuing notes that passed as money. No place in the world had more paper money flying about than did America. By the time the federal government began regulating the money supply during the Civil War, there were more than ten thousand different kinds of notes circulating in the United States.

Note the explicit reference to the role of making paper money acceptable in payment for taxes as condition for the success of the paper money printed by the Massachusetts government even though the money was not redeemable in specie.

Wood goes on to recount the important role that counterfeiters played in American history focusing on the stories of the three “heroes” of Tarnoff’s book to illustrate the ways in which counterfeiters actually served the public interest by providing access to paper money that banks were not willing or able to provide, an observation that will resonate deeply with our own esteemed Benjamin Cole, who has loudly proclaimed the benefits of monetary expansion, even if accomplished by counterfeiting.

Another important point that I found extremely interesting comes toward the end of Wood’s piece.

The golden age of American counterfeiting came to an end during the Civil War. In 1862 the United States made paper money printed by the national government legal tender. This “bold expansion of federal sovereignty,” says Tarnoff, “represented nothing less than a revolution in American finance.” The National Currency Act of 1863 followed, and a tax on the notes of state banks put them out of business. The United States had become a new nation. “The war produced something unimaginable: a federal monopoly on paper currency. . . .Never before in American history,” says Tarnoff, “had the power to make paper money been held by a single authority.”

Counterfeiter felt the effects immediately. With a single national currency people no longer had to sift through thousands of different bills trying to distinguish the genuine from the fake. But an agency to detect and arrest counterfeiters was still needed, and in 1865 the Treasury Department created the US Secret Service, which soon severely cut down the number of counterfeiters and counterfeit notes. At the time of the Civil War one third or more of the paper money in circulation had been fraudulent; by the time the Federal Reserve System was established in 1913, counterfeit bills made up less than on thousandth of one percent of the paper money supply.

Obviously, centralizing the issue of bank notes greatly increases the incentive of the monopoly issuer to enforce its property rights and eliminate counterfeiting. With a decentralized supply of bank notes, individual banks have relatively little incentive to seek or undertake enforcement action against counterfeiters who are more likely to counterfeit someone else’s notes than their own. In his first great book on monetary theory, Good and Bad Trade, Ralph Hawtrey cited the reduced costs of identifying counterfeit notes as the principal advantage in suppressing free competition in the issue of banknotes.

Wood closes by noting that most of the $900 billion of Federal Reserve Notes in circulation in 2010 (now well over $1 trillion) are thought to be held outside the US. The amount of gold held in bullion or coins by private citizens is estimated to be 16% of the total of gold in existence in2008. The current stock of gold in all forms is about 170,000 metric tons. So about 25,000 metric tons of gold may now be privately held. At $1700 an ounce, private gold holdings are thus worth about $1.3 trillion. I don’t know how much of this is held outside the US, but I suspect it is much more than a half. Let’s assume it’s a round number like $1 trillion. Then the amount of privately held gold outside the US is about twice the amount of privately held Federal Reserve notes. However, holding Federal Reserve Notes is not the only way that people can hold dollars abroad. They can also hold euro dollar accounts, which are time deposits denominated in dollars held in offshore (outside the US) banks. No one knows what the volume of such accounts is, because it is basically an unregulated market outside the reach of US regulatory authority and pretty much left unregulated by foreign governments. But estimates of the size of euro dollar accounts (which may be denominated in other currencies, but are overwhelmingly denominate in dollars) are probably far more than $1 trillion. So based on the revealed preferences of legally unconstrained choices, the dollar seems to be way, way more popular than gold.

SOURCE http://uneasymoney.com/

Labels: ECONOMY