Wednesday, February 22, 2012

The Smelly Substance and the Fan

Those of you who have been reading me for a while remember that for some time now, I've written that I believed things were about to change. For example, way back in October, I posted an item titled Congratulations...It's a Planet. In that post, I said that I believed a logjam had been broken and regular people were beginning to awaken to the phony nonsense we are fed, and so we were on the way to a world that's more peaceful, honest, and transparent and less warlike, corrupt, and secretive.

I'm sometimes the first to congratulate myself when I'm right, in fact quite often the only one to do so, so here we go. Over the past week, it seems, some of the proverbial chickens are coming home to roost. You probably wouldn't know it to see the mainstream news, as the coverage is just about nil, but here's one of those little chickies.

On February 16, a gentleman named Lord James of Blackheath, a member of the British House of Lords, gave a floor speech requesting an investigation into criminal dealings involving the Federal Reserve Bank of New York, the IMF, the mega-bank HSBC, and the Royal Bank of Scotland. Lord James says he has original documents proving the allegations he's made on the floor of Parliament. He claims that signers of these documents include then- Fed Chairman Alan Greenspan, and, representing the IMF, none other than then-FedNY President and our current Treasury Secretary, Timothy Geithner.

Lord James says these documents show one of three things:

First, there may have been a massive piece of money-laundering committed by a major Government who should know better. Effectively, it undermined the integrity of a British bank, the Royal Bank of Scotland, in doing so. The second possibility is that a major American department has an agency which has gone rogue on it because it has been wound up and has created a structure out of which it is seeking to get at least €50 billion as a pay-off. The third possibility is that this is an extraordinarily elaborate fraud, which has not been carried out, but which has been prepared to provide a threat to one Government or more if they do not make a pay-off.

None of these three things are legal, or particularly nice. Here's the scenario he's uncovered, as I understand it.

In 2006, the Federal Reserve Bank of New York entered into agreements with a man named Johannes Riyadi, a member of a royal family of Brunei and a man who many say is the richest man in the world. The gist of the agreements was that the FedNY was to pay Mr. Riyadi $500 million to buy back US Treasury Bonds Mr. Riyadi had bought over the years for the purpose of "supporting the dollar." According to Lord James, these bonds had the face amount of $15 TRILLION! Apparently, the government contended that the bonds were invalid, as Lord James referred to them as "worthless." Mr. Riyadi clearly disagreed.

And as Lord James put it, "Mr Riyadi, by passing these bonds over, has also put at the disposal of the US Treasury the entire asset backing which he was alleged to have for the $15 trillion." The asset backing was supposed to be 750,000 tons of gold--worth just about $15 Trillion at 2006 prices.

Tracing the money, Lord James claims to have found that, a couple of years later, in April and May, 2009, the FedNY took this money (the Riyadi account), which it wasn't authorized to have in the first place, and transferred it to JPMorgan/Chase in New York. JPMorgan/Chase further transferred it to HSBC in London. And HSBC then further transferred it to the Royal Bank of Scotland. Lord James says he has obtained the banks' receipts for each of these transfers. So $15 trillion actually passed from the FedNY to JPMorgan Chase to HSBC to Royal Bank of Scotland, and was acknowledged as received by each bank

Lord James seems to feel that the smoking gun then comes in the form of the partial audit of the Fed that was released last summer. You may recall that the audit showed that the Fed had made $16.115 TRILLION in no-interest, off the books loans to a whole raft of their cronies in the banks--you know, the ones who were too big to fail. Despite the disclosure that the Fed loaned out more than the entire national debt, without authorization of Congress, not a single person has been charged with wrongdoing. And there's never been any explanation of exactly where that money came from--until now.

Yeah, yeah, you say. More shady deals. So what? Well, according to the people who know this stuff, only 1,507 tons of gold is supposed to have ever been mined, in the history of the world! And Lord James claims to have a letter from Mr. Riyadi in which he states that the whole deal was a fake, and he was put up to it by the Americans. He claims the whole "transaction" was a cover. For what you ask? Well, read on.

If Lord James has the documents he claims to have, that he holds up in the video of his floor speech, there's only two ways this can go, and both of them mean that a financial tsunami--a good one-- is on the way.

One. Greenspan and Geithner signed onto an unauthorized and under the table deal relating to $15 trillion in gold they knew not to exist and then somehow, miraculously came up with $15 trillion to lend, interest free, to their buddies in the big banks. And that money didn't come from the gold, which didn't exist. So it had to come from somewhere else...

Now where do I know that name, HSBC, from? Oh yeah! They're the ones who just paid enormous fines for getting caught laundering money for drug cartels and terrorists! Yeah, that's them--the ones who just hired Stuart Levey, former Treasury Undersecretary for Terrorism and Financial Intelligence (read, Geithner underling), as their new "expert in money laundering." See my post, An Inadvertent Truth. You remember-- they hired the law enforcement official who was supposed to have kept them from laundering money in the first place, and didn't, to come in house and repeat the performance. See my post, Beyond the Peter Principle. Where, oh where, could that $15 trillion have come from?


Two. Greenspan and Geithner signed onto an unauthorized, under the table deal knowing that its backing was almost 500 times more gold than is alleged to exist in the world. A pretty good deal, unless there actually was 500 times more gold than was thought to exist, because then gold would not be nearly so rare as it was thought and wouldn't be worth nearly as much as it appeared, and every gold trade done since that deal would be a massive financial fraud based on the untrue information that gold is a very rare and valuable commodity.

This is a fairly big chicken, wouldn't you agree? So, I wonder why it's not all over the news?

Perhaps Messrs. Geithner and Greenspan would like adjoining cells.

Video of Lord James' speech is here.

And the official parliamentary transcript is here. Scroll down to Column 1016.

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