Nine trillion reasons to audit the US Federal Reserve & The Bonds scam!

[Freddy Fatt]

The US Federal Reserve cannot account for 9 trillion dollars!!

We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people." -- Daniel Webster (1782-1852), US Senator.

Who got how much, and why did they get it? ..No one knows, neither Congress nor the Inspector General who is charged with monitoring the Fed

You Tube

You Tube

This video by David Theroux of the Independent Institute.

Similarly neither Congress nor the Inspector General knows anything about the profits or losses the Fed may have experienced from the $2 trillion that is reported on its balance sheet.

Add the numbers.. the Fed has done things in the name of the US taxpayer with $11 trillion, only a few trillion shy of the total annual gross domestic product of the United States, and several times the total annual spending of the federal government.

Maybe the Federal Reserve has become a shadow government, several times the size of the real government, disposing of more wealth than even the elected government.

A bill to audit the Fed -- the Federal Reserve Transparency Act of 2009 (HR 1207), now has 200 cosponsors, 46% of the entire House of Representatives.

The companion bill in the Senate S. 604, has no cosponsors, maybe the US Senators are asleep at the switch or perhaps complicit in the scam.

Jim Babka President DownsizeDC.org, Inc.

While the FED audit is delayed, the Japanese Mafia got caught trying to smuggle $134 Billion in US Treasury bonds into the Swiss Bank House of Rothschild.

Two Japanese citizens with $134,000,000,000.00 in undeclared possibly counterfeit bonds were detained in Italy while attempting to enter Switzerland.. Italian authorities are trying to determine whether the bonds are authentic!



The seized bonds

From adnkronos.com:

U.S. Treasury documents confiscated by Italian authorities

Press Release Issued by the Guardia Italiana di Finanza, the Italian Financial Police on 4 June 2009. (translation)

Impounded at Chiasso: USA securities for 96 billion euros.

249 bonds of the Federal Reserve of the United States, each with nominal value of 500 million dollars, as well as 10 Kennedy bonds each of 1 billion dollars in value, hidden in the double bottom of a suit case, for a total of a good 134 billion dollars, equal to more than 96 billion euros.

This is how much was discovered at the international railway station in Chiasso, at the Swiss Italian border, functionaries of the Territorial Operational Section of Chiasso, in collaboration with soldiers and members of the Financial Police, Guardia di Finanzia of Ponte Chiasso, during the checking of bags aimed at stopping the illegal trafficking of capital.

The amount was in the possession of two fifty year old Japanese men who had arrived at the Chiasso railway station on a train coming from Italy, and who, when checked by customs had stated that they had nothing to declare.

Instead an accurate check of the bags facilitated the discovery of the American securities, hidden in the bottom of the suitcase, in a closed section separated from the part of the bag containing personal items.

Apart from the securities the Japanese men were carrying a considerable sum of original bank documents.

Investigations are underway to establish the identity and the origin of both the bonds and the bank documents that have also been impounded. If the securities are authentic, based on regulations in place, the penalty applicable to the possessors of the bonds, could reach 38 billion euros, equivalent to 40% of the sum in excess of the acceptable baggage allowance of 10 thousand euros.

There has been a news blackout on this story from Asia News Italy.

US government securities seized from Japanese nationals!

It remains unclear whether real or fake Bonds worth US$ 134.5 billion were seized, this would be the largest financial smuggling case in history, however concern over ‘funny money,’ or counterfeit securities is spreading in Asia.

The matter would be even more mind boggling, because the quality of the counterfeit work is such that the fake bonds are indistinguishable from the real ones.

Such a large denomination is not available in regular financial and banking markets. Only states handle such amounts of money, the question remains who could or would counterfeit or smuggle these non-negotiable bonds.

In order to stop money laundering Italian law sets a ceiling of 10,000 euros per person for importing or exporting money without declaring it. The penalty for violating the law is 40 per cent of the money seized.

If the certificates were real, for Italy it would be like hitting the jackpot, since the fine alone would amount to US $38 billion, five times the estimated cost of rebuilding quake devastated Abruzzi region, and would help Italy’s eliminate its public deficit.

If the certificates are fakes the two Japanese nationals could get a very lengthy jail sentence for fraud, as soon as the seizure was made the US Embassy in Rome was informed, Italian and US secret services were called in to assist the Italian financial police.

Some important international financial newspapers had already reported on the existence of ‘funny money’ circulating on unofficial financial markets.

A few points need consideration.

1. When it comes to Italy, the world press has tended to focus on Italian Prime Minister Berlusconi’s personal problems, which has been front page on Italian newspapers, rather than on stories like the bonds smuggling affair.

2. The fear of counterfeit bonds and securities has spread across Asia with the result that real securities are also considered with suspicion.

3. During the Second World War several countries at war printed and put in circulation perfectly counterfeit enemy money.

It is also historically established that some central banks, like the Bank of Italy 65 years ago, issued the same securities twice, with identical registered numbers and codes, this way they could print more money with legal tender than they officially declared.

Here is the Italian language press release from Guardia Italiana di Finanza on 4 June 2009:

http://pimpinturtle.com/2009/06/11/t...trying-to.aspx

Snarfy at http://www.reddit.com/user/snarfy says: It is easy to verify the bonds are authentic; they have serial numbers...

http://market-ticker.denninger.net/a...rer-Bonds.html

The real problem here, and this is where trouble is gonna start, those types of bonds haven't been given out since the 80's, and the remaining outstanding balance of that particular type of bond is less than $134 billion.

The only way this could happen is if past administrations have been dealing bonds illegally off the books, if this has been happening in mass, which my cynical self tends to believe, we are going to be hit with a storm of bonds returning to destroy the bond market, as everybody rushes to cash out while they still can.

Weimar Republic and hyperinflation here we come.

[Cockeye Bob]

http://www.asianews.it/index.php?l=e...&theme=&size=A

Update: 06/30/2009 13:13 ASIA-ITALY

Everything suggests that the American bonds seized at Chiasso are real!

Official U.S. sources continue to say they are fakes, but there is no news that American experts have inspected them in person. Arrested for another matter, the director of a U.S. radio who says the bonds are real and Japan was trying to sell in Switzerland, not trusting the ability of the United States to honour its debt.



Milan (AsiaNews) – Four weeks have passed since American bonds were confiscated from two Japanese men who were travelling on a direct train to Chiasso, Switzerland, and while there has been clarification of some - very few -points, Italian authorities have remained silent on the rest of the episode.

In addition, a strange coincidence in the timing of the arrest of a director of an internet radio who had made revelations regarding the incident ,increases the already strong oddities surrounding the case. This added to the revaluation of the fact that among the evidence seized there were "Kennedy Bonds", all points toward the authenticity of the items seized by the Guardia di Finanza (GdF) in early June.

The major English-speaking newspapers ignored the story for a couple of weeks. They only started to report on it after the Bloomberg agency carried a story on 18 / 6, in which a spokesman for the Treasury, Meyerhardt, declared that the bonds, based on photos available on the Internet, were "clearly false."

The same day, the Financial Times (FT) published an article whose title laid the blame for the (alleged) infringement at the feet of the Italian Mafia, despite the fact that the article failed to make even one possible connection with the episode in Chiasso. Nevertheless, the version of events as reported in FT was taken up by others as being "appropriate" (given that it is a very common cliché about Italy and it is a sequester that took place in Italy) and in the end "colourful."

It’s a pity that it goes against all logic: that the Mafia tried to pass unnoticed in its attempt to dump fake bonds amounting to 134.5 billion dollars and moreover were to "stung" a mere step from their gaol, is not very credible.

Most recently last week, 25 / 6, the New York Times reported on the story in particular, the allegations of CIA spokesman, Darrin Blackford: the U.S. Secret Service carried out inspections, as required by the Italian judiciary, and found that they were fictitious financial instruments, never issued by the “U.S. government”.

It is not clear, however, how the checks mentioned by Blackford were carried out and whether they were also are carried out via internet. In fact according to official Italian sources the Commission of American experts, expected in Italy, have yet to arrive. Furthermore, the bonds were accompanied by a recent and original bank record. It is therefore unclear how the U.S. authorities can declare fake documentation that does not originate from the Fed or the U.S. Department of Treasury.

On the contrary, claims in support of the bond’s authenticity were made 20 / 6 on the Turner Radio Network (TRN), an independent radio station broadcast via Internet. On that date in a massive exposure, TRN stated that the two Japanese men arrested by the Guardia di Finanza (GdF) and then released in Ponte Chiasso were employees of the Japanese Ministry for Treasury. AsiaNews had also received similar reports: one of the two Japanese arrested in Chiasso and then released is Tuneo Yamauchi, is the brother of Toshiro Muto, until recently vice governor of the Bank of Japan.

On its website, the creator and presenter of the Radio, Hal Turner, had also claimed that his sources had revealed that the Italian authorities believe the evidence to be authentic and that the two Japanese officials are from the Japanese Ministry for Finance. They were supposed to bring the bonds to Switzerland because the Japanese government had apparently lost confidence in U.S. ability to repay its debt. Japanese financial authorities therefore were trying to sell a part of the securities in their possession through parallel channels ahead of an imminent financial disaster, thanks to the anonymity which, Turner said, is guaranteed by the laws of Switzerland.

AsiaNews does not know to what extent Turner’s revelations can be held as credible, given that in this case too, it is difficult to believe that $ 134.5 billion would pass unnoticed anywhere in the world. It seems far more logical to assume that the bonds, if authentic, were directed to the Bank for International Settlements in Basel, BIS, the central bank of central banks ahead of the issuance of securities in a new supranational currency. Turner had in any event added that as evidence to support his revelations he would have provided the serial numbers of the seized bonds.

Before he could do so, however, was imprisoned. Hal Turner is the journalist who long ago first broke the news of a secret plan to replace the dollar, after a severe financial crisis, with a common North American currency, the Amero.

In a dramatic phone call from inside the prison in which he is detained pending trial, relayed via internet, Hal Turner claims that his arrest is political and it is in relation to the securities seized in Chiasso, because the authorities are terrified by his revelations of the bonds’ authenticity.

Of course, the allegations made against him have to nothing to do with the story and thus an already intricate story becomes ever more complex. Turner maintains that he did not personally formulate the disclosure for which he has been imprisoned. Although it was clearly his responsibility to remain vigilant, it is also true that blogs from around the world and the U.S. themselves are full of threats and provocations. The coincidental timing, the unusual diligence and the details of his arrest arouse suspicions about the true motives of the American federal police. Indeed, this very arrest suggests that the evidence seized from GdF are truly authentic.

One more element in favour of the bond’s authenticity is found in the securities, which in the June 4 statement, the GdF termed "Kennedy Bonds” with photos provided. These photos reveal that the securities under discussion are not bonds but Treasury Notes, because they are securities that can be immediately exchanged for their worth in goods or services and because they are devoid of interest coupons. One side carries a reproduction of the image of the American president, the reverse side that of a spaceship.

From confidential, usually well-informed sources, AsiaNews has learned that this type of paper money was issued less than ten years ago (in 1998), although it is difficult to know whether those seized in Chiasso are authentic. But the fact that the release of this particular State Treasury was not completely in the public domain tends to exclude the possibility of counterfeiting. It highly unreasonable to suppose that a forger would reproduce a State Treasury not commonly in circulation and of which there is no public knowledge.

For this reason, it can be concluded that the 124.5 billion dollars divided in 249 bonds of 500 million each, are authentic.

These titles, although referred to as "Federal Reserve Notes" are actually bonds, because they accrue interest and are redeemable at maturity. But one question remains unsolved regarding them. It is somewhat hard to understand why the securities, which were from the outset indistinguishable from the original to the GdF, all have their coupons. Any ordinary investor, even a state, would have cashed in the interest coupon every year, so as not to lose purchasing power.