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The $15 TRILLION Money-Laundering Mystery

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Where did it come from? Where did it go? These are the two principal questions being framed today, after Lord James of Blackheath (a member of the UK House of Lords) unveiled documentation (and accusations) concerning a mounting of illegitimate cash: $15 trillion USD.

At the moment, only Lord James is asking these questions. However, if he gets his way there will be an official inquiry into this massive, money-laundering operation. Already, Lord James possesses documents with the signatures of people like Alan Greenspan and Timothy Geithner on them, as well as massive transfers of funds to virtually every mega-bank in the U.S. and UK.

While Lord James (himself a former banker) is holding the “paper trail” for all of this dirty money, he himself has no firm ideas about either the source of the money nor the intent of all of these massive transfers (all in the $100’s of billions) to U.S. and UK banks. Perhaps I can help him out?

Regular readers will be familiar with some of my own speculation into U.S. money-laundering (and counterfeiting of its own currency). Of interest, my own theorizing was based on a series of logical deductions which implied that some massive money-laundering operation (of counterfeit currency) must be taking place in the dying U.S. economy. And now we have a detailed paper-trail on the largest (known) money-laundering operation in history.

To refresh the memory of regular readers and to inform new readers, back on January 3rd I published a commentary titled Maximum Fraud in U.S. Treasuries Market. In that commentary, I outlined a series of simple-yet-obvious deductions pointing out the following facts:

1) There are (virtually) no visible buyers for U.S. Treasuries on the planet (at any price).

2) Even if there were interested buyers, there are no sources of capital available to mop-up all the $trillions in supply being dumped onto the market each year.

3) Even if there actually were interested buyers, and even if they could scrounge the $trillions to buy this worthless paper, it is utterly absurd to suggest that these buyers would pay (by far) the highest prices in history for this paper at a time of maximum supply. It defies every basic principle of supply and demand.

4) Taking this scenario from “absurd” to outright insanity, the U.S. economy has never been less solvent in its entire history. This directly implies that U.S. Treasuries should be fetching the lowest prices in history – not the highest – just like the worthless bonds being flogged by Europe’s deadbeat-debtors.

In other words, by process of simple deduction it was totally obvious that a gigantic, money-laundering operation was being conducted, with the primary goal being to prop-up the totally fraudulent U.S. Treasuries market. All that was missing was a paper-trail to prove this fraud, and now Lord James of Blackheath has been kind enough to provide this.

Undoubtedly many readers will be skeptical of this, assuming that there would be no need to get into such a cloak-and-dagger (and blatantly illegal) process to pretend that worthless U.S. Treasuries still have value. Indeed supposedly these bonds have more “value” than at any time in history – despite the issuer of those IOU’s being hopelessly insolvent, and merely delaying its own bankruptcy.

In fact there is a very powerful reason why this fraud had to be conducted in the same, criminal manner in which the Wall Street crime syndicate launders countless $100’s of billions of dirty money (mostly CIA drug cartel money) every year. The only way in which the Treasuries market could be propped-up in this illegal manner was by counterfeiting the banker-paper used to buy those bonds.

In turn, there are two absolutely compelling reasons why the banksters have been forced to resort to blatant counterfeiting in attempting to prevent their entire paper empire from imploding into nothing. First of all, every fiat-dollar (legitimately) brought into existence is created via inventing new debt. To conjure (another) $15 trillion legally would have required piling $15 trillion more in debts onto the insolvent balance sheets of Western governments. In fact it would only require a small portion of that amount to cause all of these debt-dominoes to immediately topple.

However, that is not the only aspect of utter terror which now grips these felonious financiers. The specter of hyperinflation hovers over these Vampires, a second but even more powerful force which can reduce all of this worthless fiat-paper to its real value (zero) in a matter of months/weeks/days.

As I explained in a separate commentary, it is a tautology of both logic and economics that any good which can be produced at zero cost and in infinite quantities (like the bankers’ paper currencies) is worthless. The logic is irrefutable. If such a good was not worthless, then infinite quantities of that good would/could be created (at zero cost) and then exchanged for any/every item of value on the planet. It would be nothing less than an act of total theft.  Indeed, this precisely describes the entire bankster scam known as “fiat currencies”.

Print up ever increasing quantities of their paper, at a lower and lower cost (now zero in the U.S. and Japan), and exchange all of that worthless paper for any/every item of value you can steal. With U.S. dollars now permanently being created at zero cost, the only factor preventing the U.S. dollar from instantly plummeting to zero is that the apathetic dolts in charge of our markets do not yet perceive that U.S. dollars are being created in (effectively) infinite quantities. However, pile another $15 trillion of this worthless paper onto the global market and that perception could change instantly.

I understand that for the average reader the mind simply rebels at the thought of our governments and (supposedly) respectable leaders of business demonstrating themselves to be no different (at all) from a Mafia crime family. So let me once again summarize these parameters altogether:

a) There are no buyers for the $trillions of U.S. Treasuries (i.e. no one wants this paper), and especially not at the highest prices in history.

b) There are no sources of (legitimate) capital to finance the purchases of these $trillions.

c) The U.S. government is so close to outright financial collapse that it cannot afford to pay any interest on its massive debts. An increase of U.S. interest rates by even 1% would send the U.S. economy into an immediate, deflationary death-spiral (as I have explained in many previous commentaries).

d) Debt-saturated Western government balance sheets cannot tolerate any further large increases in debt without a series of domino-like debt defaults.

e) Because of the factors above, the only way to prop-up the Treasuries market (and fraudulently maintain prices at the highest levels in history) was to create a mountain of unofficial/illegitimate money (i.e. counterfeit it), and then use that unofficial currency to buy these worthless Treasuries.

For those clinging to the belief that there must be some rational/legitimate explanation for the paper-trail uncovered by Lord James, he dispels that with some further observations of his own. To begin with, there are concrete financial protocols which have been created to integrate any/every new large batch of the bankers’ fiat paper into global financial markets. None of those protocols was followed.

Along the way with this scam, Lord James also pointed out that $100’s of billions in profits were generated, with none of those profits ever being recorded let alone reported (and taxed). In short, this is every bit as illegal as the $100’s of billions in heroin-trade profits laundered by Wall Street each year – from the poppy fields of Afghanistan.  For those pointing out that the fraudulent U.S. Treasuries market hasn’t (yet) required $15 trillion in funny-money to extend this Ponzi-scheme, obviously the banksters can come up with plenty of other uses for their counterfeited/laundered money.

Where do people think that the Plunge Protection Team comes up with its own capital for its daily manipulations of U.S. markets?

Ultra-leveraged Wall Street balance sheets (greater than 30:1) only required a drop in U.S. housing prices of 3% to take their entire paper empires to zero. U.S. housing prices have fallen more than ten times that far. We can only guess at how $trillions (in secret hand-outs) it has taken to delay the implosion of those fraud-factories even this long.

This also explains the fanatical desperation which the Federal Reserve has shown in fighting even the tiniest request for disclosure about its “lending operations”. When you’re secretly counterfeiting $trillions every year, the last thing you want to hear is anything that even faintly resembles the word “audit”.

The U.S. Treasuries market is nothing but a gigantic (and clumsy) fraud. Along with the motive which I have previously supplied for this fraud, Lord James of Blackheath has added “means” and “opportunity” through his own diligent investigations. If the Rule of Law was not already dead in the United States, there is more than enough evidence here to justify a formal (and public) inquiry. Don’t hold your breath!

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Comments (15)Add Comment
Jeff Nielson
...
written by Jeff Nielson, February 28, 2012
Any take-home pro-active lessons for those of us at home from this latest sanity-defying revelation? I am already well situated in doing all I can to effect some personal protection, so there seems little else to engage my attention other than continuing to monitor the global situation as it goes on its merry way


Thanks for the support Dalkrin!

All I'm seeing here is a train with no brakes heading to a gorge with the bridge out...
smilies/cheesy.gif

Whether the "plunge" ahead is the Mother of All Depressions (leading to hyperinflation) OR some global hyperinflation (leading to the Mother of All Depressions) seems to be essentially a moot point. Anyone who thinks they can TRADE successfully through what lies ahead will almost certainly commit financial suicide.

People need to POSITION themselves in their "financial bunkers" now - with those bunkers being comprised of bullion and shares in quality gold and silver miners. About the only thing we KNOW will be still standing once the dust settles is "good money" (i.e. gold and silver).
Dalkrin
...
written by Dalkrin, February 27, 2012
Top-notch work bringing this article to public attention Jeff.
I've long since developed a healthy skepticism for bonds in general, but you are dead-on in assessing the attractiveness of current US Govt. bonds as being laughable. They have benefited thus far from the strange bond-phenomenon of gaining value as the interest rate lowers, but with ZIRP firmly in place, the prospects seem less than savory. Glad to see Russia and China have been shedding their T-bond holdings in recent months, even if they have to move slowly to avoid panicking the market.

Any take-home pro-active lessons for those of us at home from this latest sanity-defying revelation? I am already well situated in doing all I can to effect some personal protection, so there seems little else to engage my attention other than continuing to monitor the global situation as it goes on its merry way. smilies/grin.gif
Jeff Nielson
...
written by Jeff Nielson, February 25, 2012
Wanta Funds ? The plot thickens:


http://www.veteranstoday.com/2012/02/21/intel-exclusive-trillion-dollar-terror-exposed/


We actually got into this topic on the forum as well:

http://www.bullionbullscanada.com/bulletin-boards/17-talk-economics/16148-the-15-trillion-money-laundering-mystery?limit=10&start=10

Frankly I don't see any connection between the two stories other than some VAGUE similarity with the amounts of money involved.

The so-called "Wanta funds" don't strike me as being even slightly plausible - since the amounts of money involved are simply TOO LARGE (for that time in history).
uxhamby
...
written by uxhamby, February 25, 2012
Wanta Funds ? The plot thickens:


http://www.veteranstoday.com/2012/02/21/intel-exclusive-trillion-dollar-terror-exposed/
Hank Harrington
...
written by Chad McNamara, February 25, 2012
For the record:

For some reason RobertS terminated his own account here this morning.

Administration has nothing to do with his account being removed.
Dylan
...
written by Dylan, February 25, 2012
RobertS

You don`t ask Al Capone if he runs a boot-legging operation and expect an honest answer do you now?.
You ask an RBS trader if there is any fraud involved and his denial is good enough for you? LOL
You rely on the statement of the Fed Reserve (the main suspect) that they have no dealings with Riyadi and that’s good enough for you. LOL

As for the money, it`s NOT in the domestic money supply, it is hoarded in dark pools of capital waiting to be unleashed. THEN you will get your hyperinflation.

“But, like energy, wealth doesn't just vanish. Most of it is parked in unregulated hedge funds, in ex–hedge funds that are now just bulging foreign bank accounts, and in a variety of opaque financial institutions. The money almost certainly remains parked—otherwise, there would be massive inflation after the amount of bailout money that has spewed from the Fed, the U.S. Treasury, and foreign central banks.” James Lieber


Bill Gates and Warren Buffet are small fry in the world of unregulated wealth.

As for Foundation X, they were offering to bail out the UK with BULLION. If true, this implies they had ALREADY used the stolen digits to buy up the world`s gold. That’s why Lord James made the link with the Vatican Bank (a a major money-laundering centre) and it`s claims of gold bullion, before he was abruptly called to end his speech.
Funny that the Vatican has recently called for a World Central Bank.


Of course we don`t blame YOU for YOUR oversight of simple common sense.
Jeff Nielson
...
written by Jeff Nielson, February 24, 2012
As a "P.S." here let me add that the amount of money involved is in no way "too huge" for the story to be legitimate.

First of all, if some/most/all of this mountain of money was counterfeited, it's just as easy to counterfeit a quadrillion as it is a million. Secondly, there ARE "trillionaires" in the world - they just have SO MUCH wealth that they are able to keep THEIR hoards entirely away from all public scrutiny.

There is somewhere around $200 TRILLION in paper debt instruments alone floating around the world, with absolutely no indication of WHERE that wealth is being hoarded.
Jeff Nielson
...
written by Jeff Nielson, February 24, 2012
Hi Jeff, the problem I have with the credibility is 1st that Mr Riyadi claims to be worth $36Trillion in his own right. Later he claims to have had all his money stolen from him. If the source of his wealth is drugs and / or terrorism, I doubt he would have lost it all to the Federal Reserve. Also, the wealth of Bill Gates and Warren Buffet combined is less than $100billion, so the amounts of money involved fail the smell test.

The 2nd problem relates to the 2nd video in the link below re "Foundation X" and the update video at the end from Sky News.

http://ftalphaville.ft.com/blog/2012/02/22/892601/urgent-sovereign-action-required/


Robert, I find the first part of this comment to be a more persuasive argument. However, what you have to realize is that involving individuals like Riyardi (presumably as nothing more than "middle men") also provides the (greatly desired) "plausible deniability" for such a fraud - for exactly the reasons you listed.

With respect to your latter argument, it becomes difficult to get into more COMPLEX issues in the space of a comment.

Perhaps you would care to visit our forum, where I have already replied to PRECISELY this point (from two separate angles) in posts I did earlier this morning:

http://www.bullionbullscanada.com/bulletin-boards/17-talk-economics/16148-the-15-trillion-money-laundering-mystery?limit=10&start=10
0
...
written by RobertsS, February 24, 2012
Hi Jeff, the problem I have with the credibility is 1st that Mr Riyadi claims to be worth $36Trillion in his own right. Later he claims to have had all his money stolen from him. If the source of his wealth is drugs and / or terrorism, I doubt he would have lost it all to the Federal Reserve. Also, the wealth of Bill Gates and Warren Buffet combined is less than $100billion, so the amounts of money involved fail the smell test.

The 2nd problem relates to the 2nd video in the link below re "Foundation X" and the update video at the end from Sky News.

http://ftalphaville.ft.com/blog/2012/02/22/892601/urgent-sovereign-action-required/

According to the redoutable Lord James, Foundation X, a mysterious organization which presumably has made its fortune on the back of the most ruthless and cut throat activities in the world - drug dealing and terrorism is now willing to bail out the British economy with an interest free loan, instantly available with no strings attached and no repayment schedule in order to protect its activities in the world economy. My response is that if they wanted to protect themselves, they would be purchasing income generating assets like property around the world using front companies and buying as much precious metals as they could to escape the coming collapse of the fiat currencies being widely predicted. (Or put another way, laundering their ill gotten gains through legitimate companies). Put simply, these people are ruthless criminals whose seemingly generous and charitable actions to bail out the United Kingdom for free are completely out of character and should be treated with the utmost caution and scepticism - as should the claims of Lord James.
Jeff Nielson
...
written by Jeff Nielson, February 24, 2012
Hi Jeff, having read your article and seen the video of Lord James of Blackheath, I corresponded with a personal friend who trades MTNs at RBS in London. He categorically denied the existence of these payments to RBS, describing them as fictitious. He also said that Lord James' comments about the MTN market were wrong. I then googled the name Yohannes Riyadi and found that he is known to the Federal Reserve as a fraudster since November 2007
http://www.ny.frb.org/banking/frscams.html
Basically, the documents that Lord James was waving around in the chamber of the House of Lords were sophisticated forgeries which need to be handed over to the relevant authorities as criminal evidence.
I do not blame you for this oversight in your article. You had every reason to expect that a member of the British legislature who has spent 2 years investigating this would have performed this most basic check on his source (i.e. Yohannes Riyadi) to confirm his bona fides. .


Robert, I wouldn't believe any BANKER who denied the existence of this fraud if they did so "on the record". I certainly don't place any credence in anonymous heresay.

With respect to Riyadi, his credentials make this story MORE plausible rather than less so. We're talking about a MASSIVE FRAUD - involving a KNOWN criminal class who REGULARLY engages in illegal conduct (the bankers) - reported to be involved with a KNOWN fraudster. How does this impeach the credibility of this story?

If the bankers REGULARLY consort with the world's largest drug-cartels (via their CIA connections) to launder their money, it's ABSURD to suggest that they wouldn't get involved with someone like Riyadi.

With respect to your suggestions that the AMOUNT of money involved automatically makes the story illegitimate. LOL!!

There is somewhere around $200 TRILLION in (known) fiat-paper debt floating around today. $15 trillion in counterfeited currency could EASILY be "lost" in an OCEAN of paper that size.
Jeff Nielson
...
written by Jeff Nielson, February 24, 2012
i have just watched the video of the british mp adressing some other mps regarding the 15 trillion dollars . did everyone notice the inconsistancies this guy made ?
1:he added up 50 trillion +50 trillion +50 trillion to come up with 15 trillion .
2 the funny figure of 750,000 tons of gold and then him correcting that figure with the number of something like 1507 tons total mined gold
3 the number of parlimentarians present ? where were they all ?
i think there were more but those were the ones i remember and it makes me suspisous . was that man dislecsic ? why could he not get things right ? when i see stuf like that i wonder what is happening . it was to weird .the number of dollars being the equivalent of what the US owes as a national debt and this unknown character surrendering the "original" document to someone that he does not know . this is some kind oif strange setup .what ?


Looken, with respect to your first point, that was nothing but a slip-of-the-tongue - which Lord James corrected himself IMMEDIATELY after making it.

With respect to the numbers being bandied-about regarding "gold-backing", I look at this as the proverbial "red-herring". You don't need to "BACK" any cash in a fiat-currency system, and so that whole issue is irrelevant.

Regarding your last point, empty seats in our legislatures are not at all unusual. I wonder how many times Ron Paul has spoken to essentially an empty house? Are you going to imply that he's not a legitimate public figure?
0
...
written by RobertsS, February 24, 2012
Hi Jeff, having read your article and seen the video of Lord James of Blackheath, I corresponded with a personal friend who trades MTNs at RBS in London. He categorically denied the existence of these payments to RBS, describing them as fictitious. He also said that Lord James' comments about the MTN market were wrong. I then googled the name Yohannes Riyadi and found that he is known to the Federal Reserve as a fraudster since November 2007
http://www.ny.frb.org/banking/frscams.html
Basically, the documents that Lord James was waving around in the chamber of the House of Lords were sophisticated forgeries which need to be handed over to the relevant authorities as criminal evidence.
I do not blame you for this oversight in your article. You had every reason to expect that a member of the British legislature who has spent 2 years investigating this would have performed this most basic check on his source (i.e. Yohannes Riyadi) to confirm his bona fides. It is obvious that he has not and consequently has made fools of us all. I don't know how much drug money is being laundered in the financial system, but a couple of things are certain:
1. It is not $15 trillion - that would represent approx 25% of the entire USD money supply which would instantly destabilize the US currency and world economy
2. The US authorities will do everything they can to keep that cash outside of the US domestic money supply due to the inflationary effect it will have.
As for Mr Riyadi, it's time to call the cops.
looken
...
written by looken, February 24, 2012
i have just watched the video of the british mp adressing some other mps regarding the 15 trillion dollars . did everyone notice the inconsistancies this guy made ?
1:he added up 50 trillion +50 trillion +50 trillion to come up with 15 trillion .
2 the funny figure of 750,000 tons of gold and then him correcting that figure with the number of something like 1507 tons total mined gold
3 the number of parlimentarians present ? where were they all ?
i think there were more but those were the ones i remember and it makes me suspisous . was that man dislecsic ? why could he not get things right ? when i see stuf like that i wonder what is happening . it was to weird .the number of dollars being the equivalent of what the US owes as a national debt and this unknown character surrendering the "original" document to someone that he does not know . this is some kind oif strange setup .what ?
Jeff Nielson
...
written by Jeff Nielson, February 23, 2012
TusconJJ, the funds you describe are certainly legitimate, in that they are run by honest, reputable people.

However, where any/all funds frighten me is when talk turns to "confiscation". The problem is that if (when?) confiscation takes place that any/all bullion held in funds/accounts could be seized with no more difficulty than point-and-click.

They couldn't get MY bullion that easily... smilies/wink.gif

And with Stephen Harper determined to show himself a good, little "Junior American" at every opportunity, if there is bullion confiscation in the U.S. we can be fairly certain it would take place concurrently in Canada.
Tucson JJ
...
written by Tucson JJ, February 23, 2012
Aside from the fact that after reading this, I experienced severe cramps in my lower GI tract... it is one of your very best... absolutely CHILLING... Hey, I know you have addressed this several times, Jeff, but are CEF and GTU and PHYS and PSLV good and safe ways to hold PMs? I have some physical in a secure location... but the commissions are getting too much for me... Feedback is much appreciated, as are your disturbing insights!

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