CHINA’S STOLEN GOLD
Professor Chalmers Johnson’s review of Gold Warriors: America’s Secret Recovery of Yamashita’s Gold by Sterling and Peggy Seagrave tells of the widespread looting of China’s riches by Japanese forces before their defeat in WWII.
“Yamashita’s gold” describes the vast wealth looted from China then hidden by General Yamashita. Countless tons of gold, precious stones and stolen treasures were secretly buried by General Yamashita in the Philippines prior to Japan’s surrender. Ferdinand Marcos, later president of the Philippines, also had found “Yamashita’s gold”.
The Americans moved quickly to suppress any knowledge of this vast hoard of gold; and, rather than returning it to its rightful owners, Chalmers Johnson writes, … it was decided at the highest levels, presumably by Truman, to keep these discoveries secret and to funnel the money into various off-the-books slush funds to finance the clandestine activities of the CIA.
Among these clandestine activities was the destabilization of Russia’s ruble in which Rappaport and Wanta were involved, in which $240 billion of 10-year securities were issued on September 10, 1991 to buy up Russia’s industrial base; and it was to destroy evidence of these covert securities and their source that the World Trade Center and the Pentagon were attacked on September 11, 2001.
According to Veterans Today, the primary targets on 9/11 in the World Trade Center were Cantor Fitzgerald and Eurobrokers, major dealers in US securities. The primary target at the Pentagon was the Office of Naval Intelligence which had been investigating the covert securities.
41% of the fatalities in the Twin Towers came from two companies that managed U.S. government securities: Cantor Fitzgerald and Eurobrokers. 31% of the 125 fatalities in the Pentagon were from the Naval Command Center that housed the Office of Naval Intelligence.
… The covert securities, used to accomplish the original national security objective had ended up in the vaults of the brokers in the World Trade Center, [and] were destroyed on September 11, 2001, the day before they came due for settlement and clearing. [bold, mine]
THE COVERUP
The Veterans Today article notes: The federal agency mostly involved in investigating those transactions was the Office of Naval Intelligence. On September 11 those same three organizations: the two largest government securities brokers and the Office of Naval Intelligence in the US took near direct hits.
What happened inside the buildings of the World Trade on September 11 is difficult, but not impossible to discern. The government has put a seal on the testimony gathered by the investigating 911 Commission, and instructed government employees to not speak on the matter or suffer severe penalties, but there are a number of personal testimonies posted on the internet as to what happened in those buildings that day.
Careful reconstruction from those testimonies indicates the deliberate destruction of evidence not only by a targeted assault on the buildings, but also by targeted fires and explosions. In the event that either the hijacking failed, or the buildings were not brought down, the evidence would be destroyed by fires.
Even more revealing would be the actions of the Federal Reserve Bank and the Securities and Exchange Commission on that day, and in the immediate aftermath. As one of many coincidences on September 11, the Federal Reserve Bank was operating its information system from its remote back-up site rather than its downtown headquarters.
The SEC and Federal Reserve system remained unfazed by the attack on September 11. All of their systems continued to operate. The two major security trading firms had their trade data backed up on remote systems.
Nevertheless, the Commission for the first time invoked its emergency powers under Securities Exchange Act Section 12(k) and issued several orders to ease certain regulatory restrictions temporarily.
On the first day of the crisis, the SEC lifted “Rule 15c3-3 -Customer Protection–Reserves and Custody of Securities,” which set trading rules for certain processes. Simply, GSCC [Government Securities Clearing Corporation] was allowed to substitute securities for the physical securities destroyed during the attack.
Subsequent to that ruling, the GSCC issued another memo expanding blind broker settlements. A “blind broker” is a mechanism for inter-dealer transactions that maintains the anonymity of both parties to the trade. The broker serves as the agent to the principals’ transactions.
Thus the Federal Reserve and its GSCC had created a settlement environment totally void of controls and reporting – where it could substitute valid, new government securities for the mature, illegal securities, and not have to record where the bad securities came from, or where the new securities went – all because the paper for the primary brokers for US securities had been eliminated.
This act, alone, however was inadequate to resolve the problem, because the Federal Reserve did not have enough “takers” of the new 10 year notes. Rather than simply having to match buy and sell orders, which was the essence of resolving the “fail” problem [fails occur when securities are not delivered and paid for on the date scheduled by the buyer and seller], it appears the Fed was doing more than just matching and balancing – it was pushing new notes on the market with a special auction.
If the Federal Reserve had to cover up the clearance of $240 Billion in covert securities, they could not let the volume of capital shrink by that much in the time of a monetary crisis.
They would have had to push excess liquidity into the market, and then phase it out for a soft landing, which is exactly what appears to have happened. In about two months, the money supply was back to where it was prior to 9/11.
It was the rapid rotation of the securities settlement fails in the aftermath of September 11th that appears to have allowedthe Bank of New York and the Federal Reserve to engage in a securities refinancing that resulted in the American taxpayer refinancing the $240 billion originally used for the Great Ruble Scam.
The reports published by the Federal Reserve argue that the Federal Reserve’s actions increasing the monetary supply by over $300 billion were justified to overcome operational difficulties in the financial sector.
What appears to be the case is that the Federal Reserve imbalances reported on three consecutive days in the aftermath were largely concentrated at the Bank of New York, which is reported to represent over 90% of the imbalance, suggesting the Bank had been the recipient of massive fund transfers, and unable to send out transfers. This supposedly was due to major communication and system failures. In fact, none of the Bank of New York’s systems failed or went non-operational.
The Bank of New York’s suspicious actions after 9/11 were noted by The Wall Street Journal: “There is every reason to believe activities in the Bank of New York in the aftermath of September 11th are worthy of suspicion….. At one point during the week after September 11, the Bank of New York publicly reported to be overdue on $100 billion in payments.”
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