Was September 11
of a Financial Fraud?
of a Financial Fraud?
(The following is an attempt to present in a compact form the claims made by Dick Eastman, Tom Flocco, V.K. Durham, Karl Schwarz and put together in an the article by E.P. Heidner dated 28th June 2008 to the effect that the September 11th attacks were intended to cover-up the clearing of the 1991 issuance of $240 billion in covert securities to fund an economic war against the Soviet Union during which "unknown" western investors bought up much of the Soviet industry. A crime presented by official sources as a "terrorist attack" and used as an excuse to attack Iraq.)
Initially the official designation of "terrorist attacks" made it difficult to discern a pattern. However if the destruction of the World Trade Centre, a segment of the Pentagon, four commercial aircraft and the loss of 2,993 lives is not considered as a "terrorist attack" but rather as a crime with specific objectives, there is a compelling logic to the pattern of destruction, not only of the buildings but of specific offices within each building.
If the attack on the Office of Naval Intelligence in the Pentagon was not random it is reasonable to assume that the planes that hit the World Trade Centre, and the bombs reported by various witnesses to have been set off inside the buildings 1, 6, 7, the basement of the Towers, the vault in the basement of the World Trade Centre were also deliberately targeted. Why? What was it that linked these targets? The destruction of the contents of the basement of the World Trade Centre - less than a billion in gold, but hundreds of billions of dollars of government securities? In addition why were specific brokers from the major government security brokerages in the Twin Towers eliminated? To create chaos in the government securities market? To create a situation wherein $240 billion dollars of covert securities could be electronically “cleared” without anyone asking questions? Which happened when the Federal Reserve declared an emergency and invoked its “emergency powers” that afternoon.
* * * * * * * * *
For further clarification on what specific companies were targeted on 9/11:
Specific Companies in the World Trade Center Targeted on 9/11
* * * * * * * * *
There were three major securities brokers in the World Trade Center: Cantor Fitzgerald, Eurobrokers and Garbon Inter Capital. On the morning of September 11, Flight 11 hit the North Tower at 8:46 right below the floors on which Cantor Fitzgerald was situated. Cantor Fitzgerald as the largest securities dealer in the US was probably the primary target. Shortly thereafter a massive explosion went off under the FBI offices in the North Tower on the 23rd floor, Garbon Inter Capital on the 25th floor, and in the basement of Tower 1. The explosion caused the 22nd through 25th floors above to collapse into an inferno. Fires were reported on the 22nd floor at 8:47. Shortly, thereafter, at 9:03, Flight 175 hit the South Tower right below the floors on which Euro Brokers was situated. In all three cases, the explosive, fiery destruction consumed the offices in the several floors above. At 9:37 Flight 77 hit the Pentagon, targeting one of the few offices that had been moved in the newly remodeled section of the Pentagon: the Office of Naval Intelligence, which had been investigating the financial transactions linked to the securities being managed by those security dealers in the World Trade Center that were targeted. 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. 39 of 40 Office of Naval Intelligence employees died. In the vaults beneath the World Trade Center Towers, any certificates for bonds were destroyed.
Building 7 was evacuated somewhere between 9:00 and 9:30. Fires and explosions spontaneously began at multiple locations inside the building prior to the collapse of either Tower. This observation contradicts the official explanation that the fire started when objects from the collapsing towers caused the fires to ignite. The Building ultimately was destroyed in what many unofficial observers now believe was a controlled demolition. Building Seven housed several agencies critical to investigation of financial crimes.
In the midst of all this, Building 6 was destroyed by explosions from within. Building 6 was home to the U.S. Customs agency and the El Dorado Task force, which was responsible for coordinating all major money-laundering investigations in the U.S. In the immediate aftermath of September 11, these groups would be redirected to investigate terrorist financing.
* * * * * * * * *
On the right bottom of this image of the Pentagon hit, the Amec's signature on the crime scene is clearly visible (please search Abel Danger blog for 'AMEC').
The 9/11 'Truth Movement' who stand behind the theoretical guys think it's a no-brainer to take out Captain Gerald DeConto, the duty officer of the about to be commissioned Pentagon U.S. Navy Command Center, on a trajectory which took the weapons platform at 270 feet/second between the AMEC reels and Captain Gerald 'Fish' DeConto's eyes.
* * * * * * * * *
The Office of Naval Intelligence in the Pentagon, which sustained a direct hit from an airliner that day, was without a doubt, a target pinpointed for destruction. The attacking aircraft went through intricate manoeuvres in order to hit the west side of the Pentagon, The flight path approach shows that the attacking aircraft passed almost directly over the White House, bypassing what should be considered a primary target for a "terrorist attack" instead of a supposedly empty section of the Pentagon. The planes that hit the South Tower also maneuvered in the last moments to hit their exact target.
On the same day, (September 11) the Securities and Exchange Commission declared a national emergency and for the first time in U.S. history invoked its emergency powers under Securities Exchange Act Section 12(k) and eased regulatory restrictions for clearing and settling security trades for the next 15 days. These changes would allow an estimated $240 billion in covert government securities to be cleared upon maturity (September 12th) without the standard regulatory controls around identification of ownership.
While most media reports defer to the U.S. government contention that Osama Bin Laden was behind these attacks, foreign media provided reports suggesting that the “real power” behind Al Qaeda was unknown. As shall be seen, the financial power behind the attack is the same power that created these securities, and the same power as that which founded Al Qaeda.
In order to understand why the ongoing Federal investigations into the crimes funded by those securities needed to be ended or disrupted by destroying evidence in Buildings 6, 7 and 1, it is necessary to understand how the $240 billion in covert, and possibly illegal government funding, could have been created in September 1991 and also to know the background of 50 years of history of key financial organizations in the United States, where U.S. Intelligence became a key source of their off-balance sheet accounts.
The covert securities used to accomplish the original national security objective had ended up in the vaults of the brokers in the World Trade Centre, were destroyed on September 11, 2001, the day before they came due for settlement and clearing. Either a key group of senior National Security officials, who had participated in the victory of the economic cold war in 1991, considered the deaths and destruction as ‘collateral" damage to hide the existence of the covert activities or the destruction constituted a cover-up of continued lawlessness by a fraternity or brotherhood of businessmen and criminals that has remained in the shadows ever since.
The Origins of the World Trade Centre Attack
Most historians track the history of September 11th to 1998 when Osama Bin Laden declared a fatwa or jihad against the U.S., and the terrorist “Hamburg Group” led by Mohammed Atta reportedly “offered” it’s services to Al Qaeda. However, the history which defines the motives for the September 11 attacks goes much further back. The answers to the questions surrounding the cause of the WTC attack will be found in events during the presidency of George H.W. Bush and earlier. Insight into the activities of that period are cloaked by the Executive Order of George H.W. Bush’s son, President George W. Bush, who on November 1, 2001 issued Executive Order 13233. As a result public records which might have shed light on the activities of 1990 and 1991 remain shielded from public access. Consequently the reconstruction of events from the late 1980s and early 1990s is based on news reports, books and articles.
What the public record suggests is that with the beginning of the first Bush Presidency in 1989, George H.W. Bush initiated a programme of covert economic warfare to bring about the collapse of the Soviet Union. The name of this programme appears to be Project Hammer - a multi-billion dollar covert operation, whose investments remain shielded.
There is reason to believe that the plan was initially formulated by Reagan’s CIA Director, William Casey. Many of the programme operatives were probably engaged through official CIA and National Security channels. However, as a result of the experience gained by the Bush cabinet and its private sector counterparts during the secretive Iran-Contra and Ferdinand Marcos gold operations, the execution of that programme would be accompanied by a new assumption that the use of covert and illegal funding for a policy not approved by Congress would remain acceptable.
The Source of the Funds
Numerous sources have documented that at the end of World War II, the treasury of the Japanese Empire was discovered in the Philippines by Edward Lansdale a member of the staff of General Charles Willoughby, who was General MacArthur’s chief of Intelligence. Lansdale and Severino Garcia Diaz Santa Romana tortured Major Kojima Kashii, General Yamashita Tomoyuki’s driver, until he revealed the sites of the gold. Then known as the "Golden Lily Treasure", this mass of wealth had been accumulated by the Japanese over fifty years from the pillaging of Southeast Asia and China by its army and had been deposited in the Philippines due to the U.S. submarine blockade of Japan. Reports vary, but documents in the public domain suggest the recovered treasure was in excess of 280,000 metric tonnes of gold.
Lansdale briefed Assistant Secretary of War John J. McCloy about the findings, and a U.S. Cabinet-level decision was made to confiscate the gold and cover-up its discovery. The gold would be added to the Black Eagle Trust fund which took its name from the Nazi Black Eagle stamped on the gold bars confiscated from the Reich and was the original source of funding for the trust. Over the years, the significance of the Nazi gold would pale in comparison to the confiscated Japanese treasure. As the fund grew, it was distributed in private accounts across the globe in over 100 banks, and administered by General Earle Cocke.
Lansdale and Santa Romana were made responsible for recovery of the treasure. They fabricated a “Communist Revolution” by the Hukbalahak rebels in order to confiscate the land where much of the gold was buried, and proceeded to mine it.
The Yamashita gold would become the cornerstone of the Black Eagle Fund, from which many covert operations of the U.S. intelligence would be funded. Under international law the gold should have been either returned to the countries from which it was stolen (as was done with the Nazi gold), or should have been incorporated into the U.S. Treasury. The U.S. Government’s continued efforts to stifle news on this matter provides prima facie evidence that the confiscation of this gold was illegal.
The men responsible for initiating and executing the confiscation of Nazi and Japanese treasury gold represent the most senior Intelligence officers in the U.S. and Britain at the end of World War II, and the Cabinet of the President of the United States. The financial institutions represented by these individuals would become the major financial banks in the world, along with the Swiss-German banks where they hid their gold.
Lansdale’s operation in the Philippines gave birth to most of the common features of modern covert operations for the U.S.Intelligence and initiated a bond between the US intelligence organizations and the Israeli intelligence. He also set precedents for the Intelligence community to retain the services of organized crime on U.S. soil and to use drug running as a way of financing activities.
The covert operations funded by the Black Eagle Trust in the 1960s and 1970s became visible stains on the global image of the U.S. despite all efforts to keep them under cover. In an effort to clean house, President Jimmy Carter would order the retirement of over 800 covert operatives. Many of these operatives would move into private consulting and security firms and be employed as subcontractors for covert operations. Thus began a loose association of private operatives that would be referred to as “the Enterprise” in the years to come. George H.W. Bush, having been CIA Director, had many acquaintances in this group, and would work with them to restore their influence and control over U.S. foreign policy and the foreign investment opportunities it created for their benefit.
Meantime Ferdinand Marcos, the pro-U.S. dictator of the Philippines, continued to discover even more of the buried treasure. and had started to sell it on the market during the 1970s with the assistance of Adnan Khashoggi. US Intelligence operations had been siphoning off the gold for three decades. However in 1986 Vice President George Bush took over the gold from Marcos and the gold was removed to a series of banks, notably Citibank, Chase Manhattan, Hong Kong Shanghai Banking Corporation, UBS and Banker’s Trust, and held in a depository in Kloten Switzerland. What happened to the Marcos gold after it was confiscated by U.S. agents in 1986 has never been reported, but throughout the early 1990s, the world gold market would be befuddled by the mysterious appearance of thousands of tonnes of gold which appeared to suppress the price of gold.
In South east Asia operations were financed through Nugan Hand Bank in Australia which would be one of the many banks used for transferring the Marcos gold from the Philippines into covert operations. Frank Nugan’s family ran the primary supply shipping operation between the U.S. Navy base in the Philippines and Australia. Frank Nugan's business partner, Peter Abeles, and Henry Keswick, together with Canadian businessman Peter Munk, would link with Adnan Kashoggi, Sheikh Kamal and Edgar Bronfmann in a series of operations which ultimately would evolve into Barrick Gold.
In 1992, George H.W. Bush served on the Advisory Board of Barrick Gold. The Barrick operation would create billions of dollars of paper gold by creating ‘gold derivatives’. A major distribution channel for the sale of Barrick’s gold futures would be Enron. Enron would also become the vehicle by which oil and gas contracts from the former Soviet Union (vehicles for Soviet money-laundering) were processed. Barrick, which has no mining operations in Europe, used two refineries in Switzerland: MKS Finance S.A. and Argor-Heraeus S.A. – both on the Italian border near Milan, a few hours away from the gold depository in Zurich. The question that Barrick and other banks needed to avoid answering is: what gold was Barrick refining in Switzerland, as they have no mines in that region?
Barrick would become a quiet gold producing partner for a number of major banks, and its activities became subject to an FBI investigation into gold-price-fixing. The records on this investigation were kept in the FBI office on the 23rd floor of the North Tower which was destroyed by bomb blasts shortly before the Tower collapsed. The ultimate destination of the "Golden Lily Treasure", and the source of the ‘loaned’ gold that flooded the market for 10 years has never been officially explained.
The records of many of those transactions disappeared when Enron collapsed and the trading operation and all its records were taken over by UBS, another major recipient of Marcos gold. The FBI was reportedly conducting an investigation into those transactions, and the investigation files were kept on the 23rd floor of the North Tower of the WTC. A review of the personal accounts of September 11 now suggests that office was deliberately targeted with explosives prior to the collapse of the WTC.
Another key player in the Marcos gold was Banker’s Trust, which was taken over by Alex Brown & Sons, after Banker’s Trust floundered financially on its Russian loans in the mid 1990s. These Russian loans were facilitated by Enron, starting in August of 1993, and very possibly were part of the Project Hammer takeover of Soviet industry.
Amongst those brought into the picture by the involvement of Alex Brown was J. Carter Beese who was Executive Director of the CIA at the time of September 11. He was appointed by George H.W. Bush to the board of directors of the Overseas Private Investment Corporation in 1992. Since 1992, OPIC has provided more than $4.5 billion in finance and insurance to more than 140 projects in Russia. He was also Chairman of Riggs Bank and also President of Riggs Capital Partners. Riggs controlled the famous Riggs-Valmet consultants who set up the international financial apparatus for the Russian oligarchs and rogue KGB allowing them to steal the Soviet treasury and destroy the Russian economy. Carter Beese’s death was reported as a suicide in 2006.
It appears that in September 1991, George H.W. Bush and Alan Greenspan did indeed finance $240 billion in bonds in a buy-out of the Soviet Union as part of a broader programme to attack the economy of the Soviet Union. In addition President George H.W. Bush had initiated a number of related covert operations to take over certain sectors of the Soviet economy,
The covert business dealings with the Iranians and Israelis which originated with Kashoggi and Kimche in July 1980 in Hamburg under the October Surprise arrangement, would provide an opening to the Soviet KGB that would allow the U.S. to fund a coup against Gorbachev in 1991. It would grow into a larger covert operation over the years, and be overshadowed by the larger Iran-Contra operation. Members of Bush’s covert intelligence cadre sold weapons to Iran, an avowed enemy of the U.S., and illegally used the profits to continue funding anti-Communist rebels, the Contras, in Nicaragua.
The entire Iran-Contra operation almost fell apart in 1986 and became public when the Nicaraguan government shot down a U.S. plane carrying weapons to the Contra rebels However the Iran-Contra team continued to violate the law even while being investigated by Congress.
Emboldened by the lack of consequences for subverting the U.S. constitution and breaking international law during the Iran-Contra scandal, the Bush administration group known as “the Vulcans” planned a bigger drive to crush Soviet Russia.
The programme also seems to have lined the pockets of the individuals that executed this policy, at US taxpayer expense. This was done to the tune of the $240 billion dollars in covert and allegedly illegal bonds, which appear to have been replaced with Treasury notes backed by U.S. taxpayers in the aftermath of September 11.
The Vulcan’s Covert Economic War on the Soviet Union
In 1988, Riggs Bank, under the direction of Jonathan Bush and J Carter Beese, would purchase controlling interest in a Swiss company named Valmet. In early 1989, the new subsidiary of Riggs called Riggs-Valmet would initiate contact with a group of KGB officers and their front-men to start setting up an international network for moving money out of the former Soviet block countries.
In the first phase of the economic attack on the Soviet Union, George Bush authorized Leo Wanta and others to destabilize the ruble and facilitate the theft of the Soviet/Russian treasury. This would result in draining the Russian treasury of between 2,000 to 3,000 tonnes of gold bullion, ($35 billion at the time). This step would prevent a monetary defence of the ruble and thus destabilize the currency. The gold was ‘stolen’ in March of 1991, facilitated by Leo Wanta and signed off by Boris Yeltsin’s right hand man. The majority of the leaked reports from the CIA and FBI suggest the theft of the Russian treasury was a KGB and Communist party operation, but what those reports omitted was the extensive involvement of Boris Yeltsin, the U.S. CIA and the U.S. banking industry.
In November 1989 George H.W. Bush appears to have arranged for Alton G. Keel Jr, a minor player in the Iran-Contra scandal to go to work at Riggs Bank, which would become the controlling owner of a small Swiss bank operation known as Valmet. The Riggs-Valmet operation, would become the ‘consultants’ to the World Bank and to several KGB front operations run by future Russian oligarchs Khordokovsky, Konanykhine, Berezovsky and Abromovich. These soon-to-be Russian oligarchs had been set-up as front men by KGB Generals Aleksey (Alexei) Kondaurov; and Fillipp Bobkov, who previously reported to Victor Cherbrikov, who worked with Robert Maxwell, a British financial mogul, an Israeli secret service agent, and a representative of U.S. intelligence interests, who had been introduced to George Bush in 1976 by Senator Tower for the sole purpose of using Maxwell as an intermediary between Bush and the Soviet Intelligence. Maxwell assisted Cherbrikov in selling military weaponry to Iran and the Nicaraguan Contras during the course of the Iran Contra deals, and made hundreds of millions of dollars available to Cherbrikov’s Russian banks. These two would bring a previously unknown politician and construction foreman named Boris Yeltsin from the hinterlands of Russia to the forefront of Russian politics through providing 50% of Yeltsin’s campaign funding.
In the second phase, there were two major operations: the largest was coordinated by Alan Greenspan, Oliver North, and implemented by Leo Wanta. George Soros and a group of Bush appointees who began to destabilize the ruble. They are accused of fronting $240 billion in covert securities to support the various aspects of this plan.These bonds were created (in part or in whole) from a secretive Durham Trust, managed by ex-OSS/CIA officer, Colonel Russell Hermann. This war chest had been created with the Marcos gold.
Shortly before the attempted coup of 1991, Maxwell met Kruchkov on Maxwell’s private yacht. Shortly afterwards, Maxwell died mysteriously on his yacht while Senator Tower died in a plane crash under suspicious circumstances in April of 1991.
In the meantime, Riggs Bank was quickly solidifying banking relations with two of the old Iran-Contra scandal participants: Swiss bankers Bruce Rappaport, and Alfred Hartmann. Through this group George Soros opened a second front assault on the ruble. It is at this stage of the operation that three more groups would be brought into the plan by Rappaport and Hartmann: The Russian Mafiya, the Israeli Mossad, and the Rothschild family interests represented by Jacob Rothschild.
Soros and Rappaport would ensure that the Rothschild financial interests would be the silent backers for a number of the undisclosed deals. The Rothschild interests would also be seen on the board of directors of Barrick Gold.
In the fourth phase of the secret war, the Enterprise worked on several fronts to take over key energy industries. On the Caspian front of this economic war, James Giffen was sent to Kazakhstan to work with President Nazarbayev in various legal and illegal efforts to gain control of what was estimated to be the world’s largest untapped oil reserves - Kazak oil in the Caspian. The illegal flow of money from the various oil companies would reach a number of banks. These same oil interests would engage March Rich and the Israeli Eisenberg Group, owned by one of the Mossad’s key operatives, Shaul Eisenberg, to move the oil. (The Eisenberg Group would at some point own almost 50% of Zim Shipping, which mysteriously and inexplicably moved out of the World Trade Center a few weeks before the September 11 attacks.)
Like the other events linked with Project Hammer, the coup was all about the money. The coup began the dissolution of the Soviet Union and the beginning of the reign of Boris Yeltsin and his ‘family’ of Russian Mafiya Oligarchs, and President Nursultan Nazarbayev of Kazakhstan. In the final phase, a series of operatives assigned by President George H.W. Bush would begin the takeover of prized Russian and CIS industrial assets in oil, metals and defence. This was done by financing and managing the money-laundering for the Russian oligarchs through the Bank of New York, AEB and Riggs Bank.
A closer look at other activities leading up to these phases makes it clear that is was a U.S. orchestrated intelligence effort from the beginning. The economic war involved Gerald Corrigan of the NY Federal Reserve Bank, George Soros, an international currency speculator who was responsible for crashing the British pound a few years earlier, former Ambassador to Germany R. Mark Palmer, and Ronald Lauder-financier and heir to the Estee Lauder estate. Palmer and Lauder would lead a group of American investors in an Operation called the Central European Development Corporation, and combine forces with George Soros and the NM Rothschild Continuation Trust. This group ending up controlling Gazprom, the Russian natural gas giant, while the Riggs group ended up controlling Yukos, the oil giant. Ownership for both remains largely ‘hidden’ today, while its front men endure the hardships of the Russian wrath by spending time in prison.
Meanwhile, across the Caspian Sea, Bush had assigned a wide array of former Iran-Contra operatives to take a role in Azerbaijan. Initially, he sent in the covert operatives Richard Armitage and Richard Secord who worked with their old colleague from the Mossad, David Kimche, and their old arms running colleagues Adnan Kashoggi and Farhad Azima to hire, transport, and train several thousand Al Qaeda mercenaries to fight on behalf of the Azeri freedom fighters! Osama Bin Laden was reported to have been part of this mercenary force.
The September 11th Cover-up of the Black Eagle Trust and Project Hammer
Ten years later in 2001, these programmes had finally come back to haunt the U.S. policy makers. Most, if not all of these programmes appear to have stepped outside of the boundaries of the law. As a result, investigative agencies from Britain, Switzerland, Russia, Kazakhstan and the Philippines were putting pressure on Congress and the U.S. Department of Justice to open up the accounts in the banks used to finance these covert activities. Pressure was being put on the Swiss banking cartel to open its bullion records to public scrutiny. Full disclosure by these banks during an investigation would have resulted in a major exposure of U.S. Government complicity in some of the greatest financial frauds of the 1980s and early 1990s as well as 50 years of gold bullion theft by numerous U.S. and British government agencies. Moreover, investigation into these accounts would disclose a National Security secret known as the Black Eagle fund, and virtually every covert operation since World War II. Bringing an end to these investigations and preventing this disclosure was the sole objective for the destruction of the WTC and Pentagon.
These investigative and legal pressures began to accumulate in 1997, and in February 1998, Osama Bin Laden declared his fatwa, and Atta started planning the September 11 attacks.
With the bonds out in the market, they had sat for ten years, like a ticking time bomb. At some point, they had to be settled - or cashed in, on September 12, 2001. The two firms in the U.S. most likely to be handling them would be Cantor Fitzgerald and Eurobrokers – the two largest government securities firms in the U.S. 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 it’s 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 the certain processes. Simply GSCC 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, 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 allowed the 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 Wall Street Journal reported:
"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.”It suggests that certain key unknown figures in the Federal Reserve may have been in collusion with key unknown figures at the Bank of New York to create a situation where $240 billion in off balance sheet securities created in 1991 as part of an official covert operation to overthrow the Soviet Union, could be cleared without publicly acknowledging their existence.These securities, originally managed by Cantor Fitzgerald, were cleared and settled in the aftermath of September 11th through the Bank of New York. The $100 billion account balance bubble reported by the Wall Street Journal as being experienced by the Bank of New York was the tip of a three-day operation, when these securities were moved from off-balance-sheet to the balance sheet.
The above gives an idea of the intricate activities both to perpetrate and then to cover the crime, which was then used under its "terrorist attack" label as an excuse for the attack on Iraq.