The Lessons of a Lifetime
SILVER WEEKLY COMMENTARY..
August 18, 2008..
By : Theodore Butler..
TED BUTLER’S ARCHIVES..
In order to understand where you may be going, it is important to understand where you have been. Nowhere is this more true than in silver. The historic price sell-off, coupled with the obvious shortages in almost all forms of retail physical silver present the lessons of a lifetime. I believe that how we learn from this lesson will determine our future financial situation, good or bad..
The drastic sell-off in silver (and gold) is further proof of an ongoing manipulation to the downside. My advice to own real silver on a fully paid for basis, has been borne out. Real pain exists among those who held silver or gold on margin. Many leveraged investors have lost their positions because they couldn’t meet margin calls. Meanwhile, no fully paid up investors sold because they had to come up with more margin money. That’s lesson number one..
The Anatomy of a Crime..
What we just witnessed in the historic sell-off in silver and gold was a crime. That’s not a crybaby complaint. There were no supply or demand developments that could account for the severity of the sell-off. The proof that this sell-off was criminal lies in public data provided in the Commitment of Traders Report (COT) and a basic understanding of how the futures market works. This has been the most extreme sell-off in the recent history of silver and gold. We are farther below the moving averages than at any point since I have been writing about silver. Price movements this severe are likely to be intentional and not accidental..
Every criminal act must have a motive and an opportunity to commit the crime. By the simple process of elimination, those responsible for this crime are the concentrated commercial shorts on the COMEX. No one else fits the profile. They had the means (through their dominant and monopolistic position), the profit motive and the skill to cause the sell-off..
I can’t identify the concentrated shorts by name, as commodity law protects their identity. But the regulators certainly know who they are and continue to choose to do nothing about them. (They also knew the identity of the SemGroup, which appears responsible for the recent run up and collapse of crude oil prices.) While I can’t identify the perpetrators by name, I can label senior management of the NYMEX/COMEX , as well as the commissioners and other high ranking employees at the CFTC as being complicit and involved in the manipulation. Incompetence can no longer be considered an explanation or excuse for them not enforcing the law. (While not the purpose of this article, I will list the e-mail addresses of the regulators at the end of this article, for those who want to make their feelings known.)..
I am not writing this article in anger. I understand how many could feel angry, particularly if leveraged silver or gold positions were liquidated as a result of this sell-off. Not only does this episode confirm that these markets have been manipulated, it also strengthens my conviction that the termination of this manipulation is a certainty. The commercials know better than anyone how the markets function mechanically. This is their full-time business. They know when the markets are least liquid and when many traders are absent. Perhaps the most illiquid times, with few traders present, are in the overnight sessions. The most illiquid time is around 8 PM EST. On Thursday evening, right at that time, the price of silver suddenly plummeted by almost $1.50. It had never before fell by that amount so quickly in any overnight session..
So, how did the concentrated shorts pull that off? They waited until the most opportune time and threw in some relatively small, but aggressively placed sell orders. These sell orders caused the price to fall, touching off further sell orders from under-margined longs, which further caused prices to fall. The analogy I like to use is that it is similar to rolling a small snowball down a hill and watching it pick up size and momentum. As the sell orders began to snowball more and more, guess who was buying after prices dropped? Correct, the concentrated shorts..
How is it possible that the commercials could buy back short positions on thousands of contracts at times of steep sell-offs, without triggering a rise in price? There is only one possible and plausible explanation – through discipline and collusion. The commercials know the price levels that tech funds and other large speculators are likely to sell at on the way down. In addition, some of those large commercials do the clearing for these speculative traders. In that position, they know the finances of the large long silver traders better than anyone. The commercials know, in advance, the sell points and vulnerability levels of the longs as well as the longs themselves. So all the commercials have to do is trigger low enough prices at illiquid times in the market to manufacture an avalanche of selling. Then they sit back with low priced buy orders and wait for the desperate sellers to come to them. Previously, I have referred to the behavior of the commercials as a wolf pack. It is shocking that the regulators can permit this..
To those who claim that these are normal market games, and the commercials are market makers, let me point out that commodity law does not allow for market making. The markets are supposed to operate as an open outcry (now electronic) auction, not as a specialist system. Even assuming that the commercials operate as self-appointed market makers, what kind of legitimate market maker only caps price rises by increasing short selling. Then they create disorderly moves to the downside. That’s why all silver price rallies are contained and orderly and why we get vicious, out of control sell-offs. The commercials make markets only for their own financial benefit. Some market makers..
I promise you that I could prove this if I were privy to the trading records rather than just the CFTC and the exchange, whose mission is to look the other way. But that is impossible, so I have to prove it with public data. While the data for this Thursday-Friday sell-off won’t be available until the next COT, the last few COTs provide ample evidence to prove what I allege..
The most recent COT, for positions held as of 8/12, confirm that the commercials have been on a buying binge for the past month. In other words, they have rigged the sell-offs in silver and gold over the past month and used those sell-offs to collusively buy as many contracts as possible. The numbers are impressive. Since the COT of 7/15, the commercials have bought back and reduced their total net silver futures short position by more than 20,000 contracts (100 million ounces) In gold the commercials have bought back, as a group, more than 90,000 futures contracts, reducing their net short position by 9 million ounces. Undoubtedly, more contracts have been bought by the commercials in the current week..
In addition to this buying on the COMEX, I believe that the naked short position in shares of the silver ETF, SLV, have been bought back, either entirely or in large part over the past month. This was the plan..
However, the percentage of net buying by the concentrated shorts in COMEX silver and gold has decidedly lagged the overall pace of commercial net buying. In silver, the big 4 concentrated shorts only bought back 10%, or 2000 of the 20,000 silver contracts bought, while the raptors (the 9+ smaller commercials) bought 12,000 and the 5 thru 8 largest traders bought a bit more than the 6000 contract balance. In gold the big 4 only bought back 22%, or 20,000 of the 90,000 net contracts bought, with the raptors buying 40,000 contracts and the 5 thru 8 largest traders buying 30,000 contracts..
What this tells us, for sure, is that the concentrated short position of the big 4 in silver and gold, while somewhat reduced in total contracts over the past month, has grown more concentrated and manipulative. The big 4 in gold and silver have grown more and more isolated from the rest of the commercials and, therefore, more desperate. This fully explains the disorderly nature of the recent sell-off and will explain any further disorderliness. The very small amount of short covering by the big 4 increases the likelihood that they may be trapped in these short positions..
Remember, concentration and manipulation go hand in hand, and the more concentrated the short position becomes in silver and gold the clearer the proof of manipulation. Only those that refuse to analyze the public data and reject the very idea that silver and gold could possibly be manipulated can conclude that we are witnessing free market behavior and not a rig job. With the growing evidence of a retail investment shortage in silver, those who deny manipulation are about to look very silly..
The Retail Silver Investment Shortage..
The growing and persistent retail silver investment shortage is becoming increasingly obvious. This segment makes up a small part of the total silver market on a daily basis. However, due to the large number of participants, on both the buy and sell side, the demographics elevate this segment to a more reliable barometer than daily volumes might suggest. With some 5,000 US retail dealers and perhaps 100,000 customers, there is much to learn from in this retail market..
What is happening is nothing short of astounding. For the first time in our lifetime, there is not enough silver to go around. Just about everywhere you look, dealers are sold out or low on inventories, throughout the entire supply chain. Delays in deliveries, the clearest definition of a commodity shortage, are commonplace. This is unprecedented. That this is occurring precisely at the same time of a sharp sell-off in the price of silver, should make your head spin..
I would suggest, if you have college-age children or that you borrow any basic economics textbooks they have. What you will read, is what you already know. The most basic law of supply and demand dictates that low and falling prices must be an indication of growing supplies or falling demand. You will find no suggestion that the price of anything could fall sharply with record demand, especially with the unavailability of supply. At least, not in any free market system..
Then I would suggest that you consider the only plausible explanation to silver investment shortages amid plummeting prices. That explanation is that there must be something wrong with the price of silver, not with supply or demand. After all, the actual supply or demand can’t possibly be “wrong.” They are what they are. Only the price could possibly be wrong. To be exact, the price of silver is manipulated, something that I have maintained for more than two decades. The growing retail silver shortage confirms this manipulation..
I recognize that even if the true Prophet of any or all religions descended from the Heavens and certified that the price of silver (and gold) was manipulated, there would still be many who doubted it. That’s because one of the most powerful forces on the face of the earth, is the inability to admit that they may have been wrong. If that error is about something as basic as a market being free or manipulated, then the denial is likely to be more obstinate. In fact, as the evidence becomes more apparent, it’s actually quite humorous to read and listen to why the shortage doesn’t matter..
As regular readers know, the inevitability of a silver shortage (as a direct result of the long-tern manipulation) has been at the center of my message. If there is one thing upon which I have agreed with my good friend and mentor, Izzy, it is the coming shortage of silver. This has been an issue on which we have agreed for more than 20 years. But it is only recently that I have come to appreciate his true take on what shortage will mean to the price of silver. He has a perspective that few of us have, including me..
By way of review, the silver retail investment shortage emerged some six months ago, shortly after Izzy’s article extolling the advantage of buying US Silver Eagles..
There is not the slightest doubt in my mind that his article jump started the huge demand for Silver Eagles and as a result the US Mint could not keep up with demand. They still can’t. Already, the Mint has sold more Silver Eagles in the first seven and a half months of this year than it sold in any full year in the 22 year history of the Eagle program. And we still have four and a half months. Clearly, Silver Eagle sales would have been higher were the Mint able to keep up with demand. I believe the demand for Silver Eagles subsequently generated sales for all retail silver investment products. Those not able to buy Eagles bought other forms that were available, until demand exceeded supply for other silver products..
Now many may doubt that a retired grandfather could write a single article that could launch a shortage of retail silver for the very first time in history, but I know better. I know that is exactly what happened. And the reason I know it is because I knew that was Izzy’s intent beforehand. Everything he wrote about the benefits of owning silver was the gospel truth. But, he also intended and set out to highlight just how tight silver supply had become by forcing the Mint into a position where they could not meet demand. He knew that the Mint couldn’t hide a shortage of Silver Eagles. There’s no way that someone sets out to accomplish such a specific objective and then achieves it by accident..
The reason I am recounting Izzy’s remarkable accomplishment is to give you a sense of the true meaning of his thoughts on the coming silver shortage. Even I raise my eyes when he offers his seemingly outrageous price projections, although I know better to dismiss anything he says. But there is something unique in his experience and background that gives him a perspective unlike most. In fact, it is a perspective one can achieve only through first hand experience..
Izzy has experienced the kind of shortages of basic goods only witnessed during war. He was present during communist take over in his native Romania. He has related to me how people would pay any price for a loaf of bread, a chicken, even a tool. You and I can’t conceive of such shortages because we have never experienced them first hand..
Perhaps you can mentally transport yourself to imagine such shortages, where price becomes secondary to availability,. If so, you may get a brief glimpse of Izzy’s vision and “crazy” price targets for silver in a time of true shortage. I can only do it for the shortest of times, before my imagination shuts down. If this persistent and growing retail shortage of silver develops into a true full-blown wholesale and industrial shortage (as I believe we may already be in), we will not be able to judge what price is truly crazy. Those most likely to gauge price correctly in a shortage may only be those who have been there and done that..
Lessons For Everyone..
I realize I am running long here, but I ask your indulgence. This article is about the important lessons before us. Let me summarize the lessons to different segments of the silver market..
For investors, don’t let this opportunity slip by. I realize you are seeing something with your own eyes that you have never seen before, namely, shortages and low and sharply declining prices. This is contrary to everything you have learned and experienced. It is nothing short of extraordinary. You must rely on your common sense. Something has to give, either prices or supply. This can’t last for long. Continued low prices won’t increase supply. The only solution for shortage is higher prices. In the case of silver, sharply higher prices. Don’t hesitate in buying silver now..
Recently, I wrote that I thought silver was exceptionally low-risk, since it had fallen sharply. The price then went lower than I thought it would or could. But my basic premise is still intact, namely that the lower the price goes, the lower the remaining risk..
For those investors capable of switching gold owned into silver, this is a particularly opportune time to switch, as silver prices have been manipulated much lower than gold prices. Silver is cheaper, compared to gold, than it has been in a long time. That can’t last. Yes, gold looks cheap here and appears to be also tight on a retail supply basis, but the big difference is this; due to silver’s industrial consumption nature and deeply depleted world inventories, higher prices for silver will not cure a shortage for a long time..
Investors should recognize that the manipulative sell-off may have created the very springboard that will cause the price of silver to soar. This is not about some academic discussion on whether silver is manipulated or not. This is about identifying and taking advantage of a potential price explosion. It has been my long-held premise that before we took off to the upside, we were likely to get a super smash to the downside. I think this was the super smash..
For industrial consumers of silver, the lessons are even more compelling than for investors. That‘s because, investors don’t have to buy silver. They have the choice to buy or not buy. Users don’t have that choice, they must buy. Their only choice is when, how much, and at what price to buy silver. A few weeks ago, users were paying more than $19 an oz for silver. Since then, the price dropped more than $6. Users will not consume less silver just because the price declined..
If you know you must consume an item, price declines are the time to stock up. This is not complicated. If you consume a favorite type of coffee, when it goes on sale for 30% off, the reaction is to take advantage and buy more than you normally would. Likewise, some industrial consumers of silver will do the same. It’s called legitimate hedging, which is the economic justification of the futures markets..
A special note to users. For the past ten years or so, hedging has been a disaster for the producers who sold future production at too low of a price. But if there was one shining example of a good hedge, it was on the buy side by a user. I am speaking of Southwest Airlines, and their magnificent buy hedge of fuel. As a result of locking in low prices, those responsible for the fuel hedge are placed upon a pedestal at the company, and rightly so. Someday soon, there will be some great success stories about those users who locked in silver at current prices..
For mine producers of silver, the current sell-off presents unique risks and opportunities. Obviously, the low price presents danger to your shareholders. I don’t know of a primary miner that can operate at a profit at current silver prices. Producers can and should do something about it. At a minimum, producers should speak up about the sell-off and question its cause. They might threaten to withhold production. Such actions would meet with strong approval from shareholders. It would be a public relations bonanza. Shareholders don’t want to hear producers say everything is fine in the silver market, because they know otherwise..
A few years ago, a silver mining company, Silver Standard, appeared to take my public advice to buy some silver. The results were spectacular. Not only did the company and its CEO, Robert Quartermain, reap shareholder goodwill, it achieved a profit of roughly $25 million, when it sold the silver earlier this year above $20. I would suggest that this company (and others) take advantage of the sell-off and do it again. If they do, I think the results, both from a public relations and profit standpoint, will be even better..
Finally, the lessons to the regulators from this sell-off may be the most important of all. This year we have witnessed disorderly pricing in many markets. In oil and cotton, the disorderly markets were caused by speculator shorts, masquerading as commercials, who ran into trouble and had to buy back their short positions. While the concentrated shorts in silver and gold have not yet lost control, given the growing physical shortage in silver, it would appear to be only a matter of time..
In the meantime, the regulators are permitting a crime to remain in progress. This is shameful. Worse, I believe that their denial of the existence of a silver manipulation has, effectively, given a green light to the concentrated shorts to continue the manipulation. In other words, the CFTC is directly responsible for the recent silver and gold sell-off. That’s beyond shameful..
Any pretense that the concentrated short position in silver was somehow a legitimate hedge went out the window the minute that the price cracked below the cost of production and shortages started to develop. After all, who legitimately hedges to lock in a loss or hedges against nonexistent inventory?..
Here are the e-mail addresses for the regulators. If you want to give someone a piece of your mind about the manipulation, this is a good place to start. While it may or may not do any good, it is the right thing to do, especially if you are disturbed by this manipulation, as you should be..
Has the Government Looted the Gold at Fort Knox?
George Washington’s Blog
Saturday, June 7, 2008
A group called the Gold Anti-Trust Action Committee claims that the U.S. government has defrauded the American people out of the nation’s wealth. Specifically, the group claims that the U.S. has secretly sold, leased or otherwise frittered away half of its entire gold reserves to pay for past military adventures abroad and other ill-conceived actions. Furthermore, the group claims that the government has intentionally covered up this loss of gold reserves through accounting fraud.
Are they right?
Well, as described by Darryl Robert Schoon in his book “How to Survive the Crisis and Prosper in the Process”:
Frank Veneroso is the author of the Gold Book Annual, probably the most comprehensive study and analysis of gold markets available today. One of the world’s foremost financial analysts, Veneroso’s clients have included the World Bank, the Organization of American States, sovereign nations and global money managers.
Frank Veneroso is also chief investment strategist for RCM Global Investors, the equity investment arm of Allianz Dresdner, the giant German insurance conglomerate which also owns the PIMCO bond funds, the bailiwick of Bill Gross.
It was in compiling the statistics on gold markets that Veneroso discovered that the Central Banks were hiding the vast majority of their gold loans from public view. Veneroso estimated that by the late 1990s, the highly lucrative and still hidden gold-carry trade amounted to 10,000 to 15,000 tonnes of gold.
The Central Banks pointed to their books which showed receipts showing large amounts of gold on deposit. What Veneroso suspected and found to be true, however, was that the gold wasn’t there. Ten to fifteen thousand tonnes of gold, an amount far larger than the Central Banks would admit, had been loaned to the investment banks in order to suppress the price of gold and now, in Veneroso’s opinion, were never coming back.
Veneroso noted that the amount of physical gold lent, 10,000-15,000 tonnes, is far too large for investment banks to repurchase without causing the price of gold to explosively rise, the very result the Central Banks had set out to prevent.
The success of the gold-carry trade had led to its failure. Now, at the cost of almost half of their gold reserves, the Central Banks are left only with promissory notes from investment banks instead of the tons of physical gold they had once possessed.
Whereas someone you know, perhaps even yourself, may in the very near future be forced out of their foreclosed home by bank order, rest assured that the investment banks will suffer no consequence for not repaying the gold they borrowed from Central Banks, gold that belonged to the nations that lent it, not its Central Bankers. In matters of finance, especially, the “even hand of justice” is reserved primarily for those that cannot afford it. It is estimated that in the past, Central Banks’ holdings of gold totaled 32,000 tonnes; and Veneroso’s figures show that perhaps 50 % of that is gone. This newly-discovered charade of Central Bank bookkeeping is as fraudulent as Enron’s; and as with Enron, the bookkeepers were complicit in the deception.
See also this.
Are Veneroso and GATA right? I don’t know.
But given that the wealth and stability of our nation is at stake, we should support their attempts to find out. The group has launched a campaign and filed a freedom of information act request to uncover the truth.
If you don’t have any background in the history of gold, here is a very brief history:
* The world’s leading currencies (or “reserve currencies”) have traditionally been backed by gold, at least since the days that shells were the preferred trading standard
* At the end of World War II, it was agreed by the wealthiest nations through the Bretton Woods agreement that the U.S. would be the world’s reserve currency, but that the U.S. dollar would be backed by physical gold (the “gold standard”)
* Because of huge over-spending on foreign military adventures, the U.S. had a gold deficit and was on the verge of economic disaster, and so in 1971 Richard Nixon suspended the gold standard (i.e. he de-linked the dollar from its gold backing)
* GATA and others allege that the U.S. and other wealthy nations have since intentionally suppressed the price of gold so as to make their non-gold backed currencies seem more valuable, and to hide the true level of inflation effecting paper money
* Part of this suppression has allegedly included dumping gold from Fort Knox and foreign gold repositories onto the gold market whenever the price of gold has drifted upward too much for their liking
March 4, 2008
In response to the arrest of a 9/11 demonstrator during a Bill Clinton appearance in Corpus Christi, corporate media shill and former Republican Congress critter Joe Scarborough and his co-hosts demanded 9/11 truthers be tasered and taken to detention camps. “Where’s the taser?” Joe wants to know as MSNBC runs footage of the man’s arrest. “Tase him!” His co-host adds: “Led away in handcuffs and hopefully taken to one of those secret prisons in eastern Europe and never to be heard from again… I hope we have a special prison for 9/11 conspiracy theorists.”
In other words, the corporate behemoth MSNBC believes people who disagree with the government not only do not deserve First Amendment rights and protection, but also believe demonstrators should be kidnapped by the CIA and taken to a “special prison” to be tortured and ultimately killed, as this is the fate of many who disappear suffer.
Is it possible the United States is about to become like Pinochet’s Chile? In 1973, thanks to the CIA and U.S. corporations, Chile became a brutal police state. Chileans were subjected to systematic and massive violations of their most basic human rights. Official figures indicate that nearly 3,000 people were executed, disappeared or lost their lives as a result of torture and political violence. It would seem “Morning Joe” would enthusiastically welcome the installation of a fascist state where those he disagrees with are disappeared, tortured, and murdered.
Last October, CNN host Glenn Beck called 9/11 truthers “insane” and “dangerous anarchists” in response to 9/11 truthers infiltrating the Real Time with Bill Maher show. “These truthers are exactly the kind of people who want to rock this nation’s foundation, tear us apart and plant the seeds of dissatisfaction in all of us… [this is] the kind of group a Timothy McVeigh would come from,” declared Beck, setting a precedence followed this morning by the scurrilous Joe Scarborough and his complaisant minions.
“In thousands of 9/11 protests over the course of the last six years, not one person has been arrested for violent conduct,” Steve Watson wrote at the time. “To cart blanches suggest that the truth movement is dangerous, ‘a threat to children’ and intent on violence is extremely inflammatory and indicates just how afraid of investigating and debating the facts people like Glen Beck actually are.”
The core of the 9/11 truth movement is composed of highly educated and progressive individuals who are strictly opposed to violence and are intent on protecting a free and peaceful society which has been under dire threat ever since the attacks of 9/11 and the ensuing cover up.
Furthermore the movement represents the very antithesis of anarchism in that it is actively seeking to restore and protect our traditional form of government which has been usurped by an unaccountable cabal that continues to operate outside of Constitutional law and with little restraint using 9/11 as justification.
Indeed, Beck and Scarborough are calling for such draconian measures simply because the 9/11 truth movement is comprised “of highly educated and progressive individuals who are strictly opposed to violence” and because of this they must be demonized as a threat to national security and thus the government must kidnap, torture, and murder them. Although Scarborough did not suggest 9/11 truth “idiots” be murdered, this is of course the ultimate fate of those who oppose militarized fascism, now gaining speed in the United States.
This war on terrorism is bogus
The 9/11 attacks gave the US an ideal pretext to use force to secure its global domination
Massive attention has now been given – and rightly so – to the reasons why Britain went to war against Iraq. But far too little attention has focused on why the US went to war, and that throws light on British motives too. The conventional explanation is that after the Twin Towers were hit, retaliation against al-Qaida bases in Afghanistan was a natural first step in launching a global war against terrorism. Then, because Saddam Hussein was alleged by the US and UK governments to retain weapons of mass destruction, the war could be extended to Iraq as well. However this theory does not fit all the facts. The truth may be a great deal murkier.
We now know that a blueprint for the creation of a global Pax Americana was drawn up for Dick Cheney (now vice-president), Donald Rumsfeld (defence secretary), Paul Wolfowitz (Rumsfeld’s deputy), Jeb Bush (George Bush’s younger brother) and Lewis Libby (Cheney’s chief of staff). The document, entitled Rebuilding America’s Defences, was written in September 2000 by the neoconservative think tank, Project for the New American Century (PNAC).
The plan shows Bush’s cabinet intended to take military control of the Gulf region whether or not Saddam Hussein was in power. It says “while the unresolved conflict with Iraq provides the immediate justification, the need for a substantial American force presence in the Gulf transcends the issue of the regime of Saddam Hussein.”
The PNAC blueprint supports an earlier document attributed to Wolfowitz and Libby which said the US must “discourage advanced industrial nations from challenging our leadership or even aspiring to a larger regional or global role”. It refers to key allies such as the UK as “the most effective and efficient means of exercising American global leadership”. It describes peacekeeping missions as “demanding American political leadership rather than that of the UN”. It says “even should Saddam pass from the scene”, US bases in Saudi Arabia and Kuwait will remain permanently… as “Iran may well prove as large a threat to US interests as Iraq has”. It spotlights China for “regime change”, saying “it is time to increase the presence of American forces in SE Asia”.
The document also calls for the creation of “US space forces” to dominate space, and the total control of cyberspace to prevent “enemies” using the internet against the US. It also hints that the US may consider developing biological weapons “that can target specific genotypes [and] may transform biological warfare from the realm of terror to a politically useful tool”.
Finally – written a year before 9/11 – it pinpoints North Korea, Syria and Iran as dangerous regimes, and says their existence justifies the creation of a “worldwide command and control system”. This is a blueprint for US world domination. But before it is dismissed as an agenda for rightwing fantasists, it is clear it provides a much better explanation of what actually happened before, during and after 9/11 than the global war on terrorism thesis. This can be seen in several ways.
First, it is clear the US authorities did little or nothing to pre-empt the events of 9/11. It is known that at least 11 countries provided advance warning to the US of the 9/11 attacks. Two senior Mossad experts were sent to Washington in August 2001 to alert the CIA and FBI to a cell of 200 terrorists said to be preparing a big operation (Daily Telegraph, September 16 2001). The list they provided included the names of four of the 9/11 hijackers, none of whom was arrested.
It had been known as early as 1996 that there were plans to hit Washington targets with aeroplanes. Then in 1999 a US national intelligence council report noted that “al-Qaida suicide bombers could crash-land an aircraft packed with high explosives into the Pentagon, the headquarters of the CIA, or the White House”.
Fifteen of the 9/11 hijackers obtained their visas in Saudi Arabia. Michael Springman, the former head of the American visa bureau in Jeddah, has stated that since 1987 the CIA had been illicitly issuing visas to unqualified applicants from the Middle East and bringing them to the US for training in terrorism for the Afghan war in collaboration with Bin Laden (BBC, November 6 2001). It seems this operation continued after the Afghan war for other purposes. It is also reported that five of the hijackers received training at secure US military installations in the 1990s (Newsweek, September 15 2001).
Instructive leads prior to 9/11 were not followed up. French Moroccan flight student Zacarias Moussaoui (now thought to be the 20th hijacker) was arrested in August 2001 after an instructor reported he showed a suspicious interest in learning how to steer large airliners. When US agents learned from French intelligence he had radical Islamist ties, they sought a warrant to search his computer, which contained clues to the September 11 mission (Times, November 3 2001). But they were turned down by the FBI. One agent wrote, a month before 9/11, that Moussaoui might be planning to crash into the Twin Towers (Newsweek, May 20 2002).
All of this makes it all the more astonishing – on the war on terrorism perspective – that there was such slow reaction on September 11 itself. The first hijacking was suspected at not later than 8.20am, and the last hijacked aircraft crashed in Pennsylvania at 10.06am. Not a single fighter plane was scrambled to investigate from the US Andrews airforce base, just 10 miles from Washington DC, until after the third plane had hit the Pentagon at 9.38 am. Why not? There were standard FAA intercept procedures for hijacked aircraft before 9/11. Between September 2000 and June 2001 the US military launched fighter aircraft on 67 occasions to chase suspicious aircraft (AP, August 13 2002). It is a US legal requirement that once an aircraft has moved significantly off its flight plan, fighter planes are sent up to investigate.
Was this inaction simply the result of key people disregarding, or being ignorant of, the evidence? Or could US air security operations have been deliberately stood down on September 11? If so, why, and on whose authority? The former US federal crimes prosecutor, John Loftus, has said: “The information provided by European intelligence services prior to 9/11 was so extensive that it is no longer possible for either the CIA or FBI to assert a defence of incompetence.”
Nor is the US response after 9/11 any better. No serious attempt has ever been made to catch Bin Laden. In late September and early October 2001, leaders of Pakistan’s two Islamist parties negotiated Bin Laden’s extradition to Pakistan to stand trial for 9/11. However, a US official said, significantly, that “casting our objectives too narrowly” risked “a premature collapse of the international effort if by some lucky chance Mr Bin Laden was captured”. The US chairman of the joint chiefs of staff, General Myers, went so far as to say that “the goal has never been to get Bin Laden” (AP, April 5 2002). The whistleblowing FBI agent Robert Wright told ABC News (December 19 2002) that FBI headquarters wanted no arrests. And in November 2001 the US airforce complained it had had al-Qaida and Taliban leaders in its sights as many as 10 times over the previous six weeks, but had been unable to attack because they did not receive permission quickly enough (Time Magazine, May 13 2002). None of this assembled evidence, all of which comes from sources already in the public domain, is compatible with the idea of a real, determined war on terrorism.
The catalogue of evidence does, however, fall into place when set against the PNAC blueprint. From this it seems that the so-called “war on terrorism” is being used largely as bogus cover for achieving wider US strategic geopolitical objectives. Indeed Tony Blair himself hinted at this when he said to the Commons liaison committee: “To be truthful about it, there was no way we could have got the public consent to have suddenly launched a campaign on Afghanistan but for what happened on September 11” (Times, July 17 2002). Similarly Rumsfeld was so determined to obtain a rationale for an attack on Iraq that on 10 separate occasions he asked the CIA to find evidence linking Iraq to 9/11; the CIA repeatedly came back empty-handed (Time Magazine, May 13 2002).
In fact, 9/11 offered an extremely convenient pretext to put the PNAC plan into action. The evidence again is quite clear that plans for military action against Afghanistan and Iraq were in hand well before 9/11. A report prepared for the US government from the Baker Institute of Public Policy stated in April 2001 that “the US remains a prisoner of its energy dilemma. Iraq remains a destabilising influence to… the flow of oil to international markets from the Middle East”. Submitted to Vice-President Cheney’s energy task group, the report recommended that because this was an unacceptable risk to the US, “military intervention” was necessary (Sunday Herald, October 6 2002).
Similar evidence exists in regard to Afghanistan. The BBC reported (September 18 2001) that Niaz Niak, a former Pakistan foreign secretary, was told by senior American officials at a meeting in Berlin in mid-July 2001 that “military action against Afghanistan would go ahead by the middle of October”. Until July 2001 the US government saw the Taliban regime as a source of stability in Central Asia that would enable the construction of hydrocarbon pipelines from the oil and gas fields in Turkmenistan, Uzbekistan, Kazakhstan, through Afghanistan and Pakistan, to the Indian Ocean. But, confronted with the Taliban’s refusal to accept US conditions, the US representatives told them “either you accept our offer of a carpet of gold, or we bury you under a carpet of bombs” (Inter Press Service, November 15 2001).
Given this background, it is not surprising that some have seen the US failure to avert the 9/11 attacks as creating an invaluable pretext for attacking Afghanistan in a war that had clearly already been well planned in advance. There is a possible precedent for this. The US national archives reveal that President Roosevelt used exactly this approach in relation to Pearl Harbor on December 7 1941. Some advance warning of the attacks was received, but the information never reached the US fleet. The ensuing national outrage persuaded a reluctant US public to join the second world war. Similarly the PNAC blueprint of September 2000 states that the process of transforming the US into “tomorrow’s dominant force” is likely to be a long one in the absence of “some catastrophic and catalyzing event – like a new Pearl Harbor”. The 9/11 attacks allowed the US to press the “go” button for a strategy in accordance with the PNAC agenda which it would otherwise have been politically impossible to implement.
The overriding motivation for this political smokescreen is that the US and the UK are beginning to run out of secure hydrocarbon energy supplies. By 2010 the Muslim world will control as much as 60% of the world’s oil production and, even more importantly, 95% of remaining global oil export capacity. As demand is increasing, so supply is decreasing, continually since the 1960s.
This is leading to increasing dependence on foreign oil supplies for both the US and the UK. The US, which in 1990 produced domestically 57% of its total energy demand, is predicted to produce only 39% of its needs by 2010. A DTI minister has admitted that the UK could be facing “severe” gas shortages by 2005. The UK government has confirmed that 70% of our electricity will come from gas by 2020, and 90% of that will be imported. In that context it should be noted that Iraq has 110 trillion cubic feet of gas reserves in addition to its oil.
A report from the commission on America’s national interests in July 2000 noted that the most promising new source of world supplies was the Caspian region, and this would relieve US dependence on Saudi Arabia. To diversify supply routes from the Caspian, one pipeline would run westward via Azerbaijan and Georgia to the Turkish port of Ceyhan. Another would extend eastwards through Afghanistan and Pakistan and terminate near the Indian border. This would rescue Enron’s beleaguered power plant at Dabhol on India’s west coast, in which Enron had sunk $3bn investment and whose economic survival was dependent on access to cheap gas.
Nor has the UK been disinterested in this scramble for the remaining world supplies of hydrocarbons, and this may partly explain British participation in US military actions. Lord Browne, chief executive of BP, warned Washington not to carve up Iraq for its own oil companies in the aftermath of war (Guardian, October 30 2002). And when a British foreign minister met Gadaffi in his desert tent in August 2002, it was said that “the UK does not want to lose out to other European nations already jostling for advantage when it comes to potentially lucrative oil contracts” with Libya (BBC Online, August 10 2002).
The conclusion of all this analysis must surely be that the “global war on terrorism” has the hallmarks of a political myth propagated to pave the way for a wholly different agenda – the US goal of world hegemony, built around securing by force command over the oil supplies required to drive the whole project. Is collusion in this myth and junior participation in this project really a proper aspiration for British foreign policy? If there was ever need to justify a more objective British stance, driven by our own independent goals, this whole depressing saga surely provides all the evidence needed for a radical change of course.
· Michael Meacher MP was environment minister from May 1997 to June 2003
If you own stocks you need to read this
The Unknown $19 Trillion Depository Trust Company
Rumor Mill News ..
Part I of II-
This exclusive report is a compilation of interviews and background research from October 1995 through April 1999. The Depository Trust Company (DTC) is the best kept secret in America. Headquartered at 55 Water Street in New York City, the average American has no clue that this financial institution is the most powerful banking corporation in the world.
The general public has no knowledge of what the DTC is or what they do. How can a private banking trust company hold assets of over $19 trillion and be unknown? In a recent press release dated April 19, 1999, the Depository Trust Company stated: The Depository Trust Company (DTC) is the world’s largest securities depository, holding nearly $19 trillion in assets for its Participants and their customers…. Last year, DTC processed over 164 million book-entry deliveries valued at more than $77 trillion.
In dealing with the trust department of Midlantic Bank, N.A. in New Jersey [now PNC Bank, N.A.], this writer was authorized, as trustee and power of attorney, to transfer original trust assets comprising of common stocks and bonds to a new trust set up in another jurisdiction. An Assistant Vice President from the Trust & Financial Management Office of Midlantic Bank said to me “it will take at least 6 weeks to do this as the majority of the stocks and bonds are not held in the name of the trust”. This same Midlantic Bank Assistant V.P. also stated in a letter dated November 17, 1995, “Of the 11 municipal bonds, 8 are held in book entry only.
This means they cannot be physically re-registered with a certificate sent to the new trustees.” (* these are not the actual figures quoted in the letter in order to protect the privacy of the account holder, at their request. Also, we were asked not to name the Midlantic Assistant V.P. in order to protect her privacy Rights. We respect these requests with full moral compliance). In disbelief, I brought this matter to the attention of our research assistants at the Christian Common Law Institute [formerly the North Bridge News] and we began our lengthy investigation into the matter. After 3 years, the can of worms we’ve opened up should frighten every American. With the advent of reported Y2K computer glitches and the possible collapse of our ‘paper asset’ economy, every person who has a stock or bond in their portfolio had better read this report and act on the information we are disclosing here. In November 1995, after encountering numerous “no comments” and a myriad of “that’s not my department” excuses via telephone, I eventually spoke with Mr. Jim McNeff who told me his position was Director of Training for the DTC.
He said he’d been employed there for 19 years and was “very proud” of his employer. During my initial telephone interview, either Jim’s employer or some other unknown person or persons were illegally listening or taping our telephone conversation according to the electronic eavesdropping equipment we have installed on our end. Why did anyone feel it was necessary to illegally record our conversation without advising us?
Was some federal alphabet agency monitoring DTC calls to safeguard National Security? That in itself is suspicious enough to warrant a big red warning flag. Jim informed me back then (1995) that “the DTC is the largest limited trust company in the world with assets of $ 9.1 trillion”. In July 1998, I spoke with Ms. Rose Barnabic of the DTC Finance Department who said that “DTC assets are currently estimated at around $11 trillion”. As of April 19, 1999, the DTC itself has stated that their assets total “nearly $19 trillion” (see above). Mr. McNeff had also stated “the DTC is a brokerage clearing firm and transfer center.
We’re a private bank for securities. We handle the book entry transactions for all banks and brokers. Every bank and brokerage firm must secure their membership with us in case they become insolvent, so your assets are secure with DTC”. Yes, you read that correctly. The DTC is a private bank that processes every stock and bond (paper securities) for all U.S. banks and brokerage houses. The big question is this; Just who gave this private bank and trust company such a broad range of financial power and clout?
The reason the public doesn’t know about DTC is that they’re a privately owned depository bank for institutional and brokerage firms only. They process all of their book entry settlement transactions. Jim McNeff said “There’s no need for the public to know about us… it’s required by the Federal Reserve that DTC handle all transactions”.
The Federal Reserve Corporation, a/k/a The Federal Reserve System, is also a private company and is not an agency or department of our federal government, according to the 1998 Federal Registry. The Federal Reserve Board of Governors is listed, but they are not the owners. The Federal Reserve Board, headed by Mr. Alan Greenspan, is nothing more than a liaison advisory panel between the owners and the Federal Government. The FED, as they are more commonly called, mandates that the DTC process every securities transaction in the US. It’s no wonder that the DTC (including the Participants Trust Company, now the Mortgage-Backed Securities Division of the DTC) is owned by the same stockholders as the Federal Reserve System. In other words, the Depository Trust Company is really just a ‘front’ or a division of the Federal Reserve System.
“DTC is 35.1% owned by the New York Stock Exchange on behalf of the Exchange’s members. It is operated by a separate management and has an independent board of directors. It is a limited purpose trust company and is a unit of the Federal Reserve.” -New York Stock Exchange, Inc. Now, let’s see how this effects the average working American family. If you’re not aware how the system works, you should visit or call a stock broker or bank and instruct them you want to purchase some shares of common stock or a small municipal bond, for example.
They will set up a brokerage account for you and act as your agent with full durable power of attorney (which you must legally sign over to them) to conduct business on your behalf, upon your buy or sell instructions. The broker will place your stock or bond purchase into their safekeeping under a “street name”. According to Mr. McNeff of the DTC, no bank or broker can place any stock or bond into their firm’s own name due to Federal Trade Commission (FTC) and Security and Exchange Commission (SEC) regulations. The broker or bank must then send the transaction to the DTC for ledger posting or book entry settlement under mandate by the Federal Reserve System. Remember, since your bank or broker can’t use their name on the certificate, they use a fictitious street name. “Since the DTC is a banking trust company, we can’t hold the certificates in our name, so the DTC transfers the certificates to our own private holding company or nominee name.” states Mr. McNeff. The DTC’s private holding company or street name, as shown on certificates we have personally examined from numerous certificate holders, is shown as either “CEDE and Company”, “Cede Company” or “Cede & Co”. We have searched every source known to learn who CEDE really is, but have been unable to get any background information on them. Is Cede Company fictitious or is their identity perhaps a larger secret than DTC?
We must presume that the information Mr. McNeff gave us was correct when he confirmed that Cede Company was a controlled private holding company of the DTC. We have now found the following proof that CEDE is real from the Bear Stearns internet site: NEW YORK, New York – March 16, 1999 – Bear Stearns Finance LLC today announced that it will redeem all of the 6,000,000 outstanding 8.00% Exchangeable Preferred Income Cumulative Shares, Series A (“EPICS”) of Bear Stearns Finance LLC, liquidation preference of $25.00 per Series A Share, CUSIP number G09198105. All of the Series A Shares are held by Cede & Co., as nominee of The Depository Trust Company, and the payment of the redemption price will be made to Cede & Co. by ChaseMellon Shareholder Services, LLC, as paying agent, whose address is: 85 Challenger Road, Ridgefield Park, New Jersey 07660. The banks and brokers are merely custodians for their clients. By federal law (SEC), they cannot hold any assets in the customer’s name.
The assets must be held in the name of DTC’s holding company, CEDE & Co. That’s how DTC has more than $19 trillion dollars of assets in trust… or is it really in “trust” if the private Federal Reserve System is technically holding it in their “unknown” entity’s name? Obviously, if stock and bond certificates you’ve purchased aren’t in your name, then the “holder” (the Federal Reserve System) could theoretically refuse to surrender them back to you under a “national emergency” according to the Trading with the Enemy Act (as amended). Is this the collateral being held by the private Federal Reserve System to pay off the national debt owed to them by our federal government, first initiated by Lincoln’s debt bonds of 1864? According to Mr. McNeff, the DTC was a former member of the New York Stock Exchange (NYSE), and “Our sister company is the National Securities Clearing Corporation… the NSCC” (they have since merged). He was correct since we now know that the NYSE holds 35.1% of the “ownership” of the DTC on behalf of their NYSE members.
Simply put, the Depository Trust Company absolutely controls every paper asset transaction in the United States as well as the majority of overseas transactions, and they now physically hold (as of April 1999) 99% of all stock and bond book-entrys in their street name, not the actual owner’s names. If you have stock or bond certificates in your name buried in your back yard or under your mattress, we suggest you keep them there. If not, it might be very wise to cancel your brokerage account and power of attorney status, re-register the stocks and bonds in your name (if you still can), and keep them hidden where only you know their location. Otherwise, you have absolutely no control over them (see Part II of our exclusive research report on the DTC for more information on beneficial ownership status).
However, getting a stock or bond certificate these days is not so easy if possible at all: “For the most part, issuers know little about the role of the Depository Trust Company (DTC). The DTC was created in 1973 as a user-owned cooperative for post-trade settlement. Our members are banks and broker/dealers, whom we refer to as participants. We handle listed and unlisted equities, including 51,000 equity issues and 170,000 corporate debt issues, equating to more than 78% of shares outstanding on the New York Stock Exchange (NYSE). We also have more than 95% of all municipals on deposit. In the 1980s, the “Group of 30″ [business leaders] recommended that stock certificates be eliminated, because physical certificates create risk. The Securities Exchange Commission (SEC) issued a concept release in 1994 to gradually decrease certificates, providing optional direct registration on the books of the issuer instead of a certificate…. this enhances the portability of shares between transfer agents and brokerage accounts. With the direct registration system, brokers transmit instructions to purchase through DTC, which the issuer or transfer agent then registers, so shares can be delivered electronically.” -John D. Faith, Manager, Corporate Trust Services,
The Depository Trust Company (1996) Now we’re about to reveal to you the most shocking discovery we came across during our research into this matter. Most of us remember a few years back the purported computerized selling of stocks that resulted in Wall Street’s “Black Monday”: Dow Dives 508.32 Points in Panic on Wall Street “The largest stock-market drop in Wall Street history occurred on “Black Monday” — October 19, 1987 — when the Dow Jones Industrial Average plunged 508.32 points, losing 22.6% of its total value. That fall far surpassed the one-day loss of 12.9% that began the great stock market crash of 1929 and foreshadowed the Great Depression. The Dow’s 1987 fall also triggered panic selling and similar drops in stock markets worldwide” -Source: Facts on File World News CD ROM The stock exchanges had dramatic record losses, and a record volume of shares were traded on that infamous Monday in October 1987. We all asked ourselves how computers could have done this by themselves without someone knowing about it. After all, someone has to program a computer to tell it what to do, what not to do, or even when to do or not do it.
During my telephone conversation, Mr. McNeff was trying to assure me that they [the DTC] have “never lost a certificate or made a mistake in a book ledger transaction”. In attempting to give me an example of how trustworthy the DTC is when I asked him how he could back up such a statement, he replied “DTC’s first controlled test was 4 or 5 years ago. Do you remember Black Monday? There were 535 million transactions on Monday, and 400 million transactions on Tuesday”. He was very proud to inform me that “DTC cleared every transaction without a single glitch!”. Read these quotes again: He stated that Black Monday was a controlled test. Black Monday was a deliberately manipulated disaster for many Americans at the whim of a controlled test by the DTC. What was the purpose of this test?
Common sense tells you that you test something before you intend to use it. It’s quite obvious that the stock markets are going to ‘crash and burn’ at some future date and for some ‘unknown’ reason since the controlled test was so successful. Was this just one of the planned tests for a Y2K internationally planned worldwide economic meltdown?
The Great Depression is about to be repeated, and it will be as deliberate and manipulated as the first one that began with the stock market crash of 1929. We are, without a doubt, on the brink of the Mother of all economic Depressions. As of May 3, 1999, the Dow Jones Industrial Average (DJIA) went above a record 11,000 points. Just prior to the 1929 stock market crash, Wall Street was posting record prices, record earnings, and record profits…. just like the scenario we are experiencing today. Will Y2K be a manipulated and deliberate a financial meltdown?
Too many facts already support this probability. On June 7, 1995, the federal government issued a new regulation requiring stock and bond certificate transfers to be cleared in three days instead of the previous five day time period. It coincided with the infamous Regulation CC that purportedly gave us faster three day availability of funds from deposited checks. This means that brokers and banks must get your stock or bond transaction into the street name (Cede & Co.) of the DTC within 3 working days.
That’s hard to do considering banks claim it takes 3 or more days to clear a check that you’ve submitted to pay for a stock purchase. But, there’s a reason for this new regulation and it coincides with the introduction of the new FRS “dollars”. On February 22, 1996, “the DTC will flip the switch” according to Mr. McNeff. “What switch?”, I asked. “This is the day that clearing house funds will no longer be accepted for stock or bond transactions” was my reply from Jim. “Instead, only Fed Funds will be accepted”. Fed Funds, or a Fedwire, are electronic computer ledger debit transfers between Federal Reserve System member banks. No checks or drafts have been allowed from that day, just as Mr. McNeff accurately stated.
This is more commonly called a ‘cashless transaction’. I call it the reality of the mark of the beast. This is the manifestation of the new international god, the New World Order [I prefer the term ‘New World DISorder’ as a more accurate description]. [RMNews: In case you are new to all of this and you don’t understand that the Federal Reserve Banking System is a privately owned bank, there is an article on the http://www.rumormillnews.com page that will help you begin to understand.
It is found by clicking the Gunther Russbacher button and then clicking on the headline that reads: An Expose of the Federal Reserve. This article was written in late 1991 or early 1992. At the time is was published in many diferent newspapers and newsletters. It was the first introduction the American people had to the “new money” that is referenced in this article.
Consider this my fellow Christian Americans: All pension funds and other institutional ‘managed funds’ are comprised of paper asset investments such as stocks, bonds, and mutual funds. These certificates are technically in the name of DTC’s private holding company, CEDE and Company. The DTC is owned by the private Federal Reserve System owners (Click for a complete list of names). Congress has attempted, on no less than two occasions since 1995, to pass legislation allowing pension funds to be used by the government as purported ‘loans’. All the Federal Reserve System has to do is hand it over. But, what happens to the people counting on those pension fund investments in order to feed themselves in their retirement? Too bad for them…. they’re out of luck because for the ‘good of the nation’, they may be forced to share or relinquish their lifetime of hard-earned wealth.
This can be done without the consent of Congress under an Executive Order based on the War and Emergency Powers Act and a state of National Emergency, just like we are already under (See further Executive Orders). Since the Federal Reserve System already holds our stocks and bonds in their fictitious DTC “street name”, CEDE, then perhaps they’ll cash them in for the federal government’s failure to repay the loans that have become way overdue. Heck, some of Lincoln’s gold backed bonds from 1864 have not been repaid yet…. and for a reason. On March 6, 1933, all bullion gold and gold coins were forcibly taken from the hands of private citizens (see New York Times). Under the War Powers Act, President Roosevelt declared a national emergency touted as a “Banking Holiday”.
It was declared due to the deliberately calculated stock market crash that preceded the Great Depression. Where did this gold end up? Into the hands of the Federal Reserve System owners. The majority is stored in the impervious rock vaults they own beneath New York City. Is it any surprise that the DTC physically holds all the remaining non-book entry issued stock and bond certificates in the same place? Technically, our entire nation is still under the Executive Order declaration of the War Powers Act and in a continual state of national emergency (See Clinton’s 1994 Executive Order 12919). The President can enforce any new emergency at any time under Executive Order or Presidential Directive. In 1995, we [the former North Bridge News] published that we expected a new national “dollar” emergency to be declared within a year or two. Just like we thought at the time, they have now blamed it on the purported drug dealers who are allegedly destroying our currency by money laundering schemes. Since late 1996, old U.S. $100 FRB notes issued by the Federal Reserve Bank are being exchanged for new $100 FRS issued by the Federal Reserve System.
These new notes have scanable magnetic platinum encryption on the plastic strips embedded inside the bills. The U.S. Treasury claims this is for “the blind”. Now, new $20 and $50 FRS’s are replacing the older notes as well. What people don’t realize is that very soon, the older FRB notes will no longer be ‘legal’ and there will be a penalty for hoarding them. This is what happened to those Americans holding gold and gold coins after 1933. “We are most gratified with the successful introduction of the new $100 and $50 notes and look forward to the same success with the new $20s,” Chairman Greenspan said. For the first time, a machine-readable capability has been incorporated for the blind. A new feature in the $20 will facilitate the development of convenient scanning devices that could identify the note as a $20. -U.S. Treasury, Office of Public Affairs, RR-2449 released May 20, 1998. Why new paper ‘money’ and for what purpose? Because the new FRS notes in your pocket can be scanned and whoever scans them can know exactly how much money you have on you. The older FRB notes are not encoded to do this. This writer knows firsthand of at least one machine, manufactured by Diebold, Inc. (a/k/a InterBold) that scans the money in your pockets, wallet or purse no different in theory than a credit card scanner, but much more sophisticated. I participated in a ‘test’ of this machine at a U.S. international airport in 1998. To me, it looks much like the standard metal detector scanners you walk through at all airports. I was asked (by who I believe was a U.S. Treasury Agent, as he introduced himself and flashed his ID quickly in my face so I couldn’t read it) if I had any of the new $100 or $50 bills in my pockets.
I looked in my wallet and saw I had one new $100 FRS note. I told him “yes”, then he said “Good, but don’t tell me how much”. After saying he would “really appreciate it” if I would help them with a test, he asked me to walk through what looked like a typical airport scanner. No beeps. No noise. No sound at all. He looked at a computer screen and said “Do you have a new $100 bill?”. When I confirmed that was true, he thanked me and told me to please move on. I tried to ask him how the machine knew that, but he ignored my question. I took a good look at the scanning system and believe I have now spotted them at Kennedy, Atlanta, Miami and Los Angeles airports. The odd part about this is that these machines seem to all be located in the customs areas where you enter the U.S. from a foreign country. Obviously, they want to know if someone is carrying more than $10,000 into the U.S. Common sense dictates that they should be more concerned about people leaving with more than $10,000 if they’re really trying to thwart the drug dealers…. until you begin to realize that there must be some other hidden agenda:
They are apparently going to stop money from entering the U.S. for a reason. Will the President call for the confiscation of all gold bullion and bullion coins as Roosevelt did? Who will end up with it? The Federal Reserve System owners, just like before. Since June 1998, international gold supplies have been so low that some private Swiss Banks have been paying a premium above the market wholesale value for gold bullion. This was confirmed to us by a gold and diamond mining Chief Executive from Rex Mining in Guinea, West Africa, who supplies raw gold to a major Swiss Banking company smelter and processor The spot gold market has been manipulated to keep the price low so that the Federal Reserve System owners can purchase all that is available through their various trusts and corporations. World gold availability on the open market is now at a record low and mining production of gold is also at a record low output. What happened to ‘supply and demand’ with gold and silver?
Normally, when supply is high the price decreases. When supply is low, precious metal prices increase. Perhaps the private FED will peg the new dollar to gold prices, as many experts have already speculated. What will stocks and bonds purchased with old dollars be worth then? Pennies to the dollar, so to speak. Who ends up being the only winner? The Federal Reserve System stockholders. They control the circulation amounts of paper money in the U.S. Combine that with the new scanner to stop large amounts from entering into the U.S., and the scenario amounts to a planned shortage of paper FRS notes, the banning of the older FRB notes, and the soon to be astronomical price of gold which most Americans will be forbidden to have or hoard, once again.
The facts we’ve presented in this report all point to this. People will be at the mercy of the federal government for daily food and for jobs. Checks are soon to be totally phased out. Banks issue ATM debit cards and tell you they must charge more for your account if you use a real live human teller instead of the machine. The switch is being turned on. This is not speculation. This is the truth of reality. It’s already been tested, and their new system works. Just ask Jim McNeff of the DTC. The day has come when you must decide to accept or reject the beast and the New World Disorder.