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April 27, 2011 By Joseph P. Farrell

I have been blogging the last two days in a serial fashion about the curious episode of the "Japanese bearer bonds" that were seized by the Italian financial police, the Guardia di Finanza, at the northern Italian town of Chiasso in June 2009. Thus far, I have been examining the scenario from the perspective of the bonds having been counterfeit or a mixture of counterfeit and genuine bonds. Now we must examine the possibility that they were all legitimate.

There is an article on the internet posted by Karl Denninger on June 13, 2009, titled "The Saga of the Bearer Bonds" that raises further anomalies and questions about the whole story. According to Denninger, the German media has  maintained that the bonds were legitimate, a fact that in itself raises significant questions, since Germany is not a major holder of US federal debt securities, but it is a major holder of US private assets.

Denninger - and others - have raised serious questions about the whole counterfeiting scenario, the major difficulty of which is that one simply cannot imagine any logical scenario in which someone is going to attempt to sell a counterfeit bond of $500,000,000 to any potential purchaser, without that potential purchaser verifying its authenticity. Thus, if the bearer bonds were indeed "fakes," then why bother to hide them to begin with? According to Denninger - who does not cite a source here - there were also authenticating bank documents seized, along with the bonds. This rings true to me, since the Guardia di Finanza did request the U.S. government to authenticate the securities, which, of course, it eventually did not, though it took some two weeks before a determination was made, and about the same amount of time for the Obama (mis)administration to comment publicly about the episode. Why the delay, unless the "fakes" were so good that they raised serious questions? Or unless they were genuine and a cover story had to be worked out, and a course of action be agreed upon as to what to do with the securities?

But there are more problems. As noted previously, the "Japanese" men decided to travel to Switzerland in a manner that was bound to attract attention. But Denninger notes that, even so, the fact that the men were stopped and subjected to the search that eventually uncovered the securities raises the possibility that the stop was not random, and that the Italian authorities were somehow tipped off.

This raises the most serious issue to the "counterfeit" scenario, for if in fact the bearer bonds were counterfeit, and being delivered to some presumed purchaser in Switzerland, why would the authorities not allow the operation to proceed, and apprehend not only the counterfeiters, but the purchasers? Indeed, why would anyone counterfeit securities in such large and potentially irredeemable amounts as a half a billion dollars, much less in billion dollar denominations of a "Kennedy" issue that allegedly never even existed to begin with? It makes much more sense to counterfeit lesser denominations, for they would be much easier to cash.

And that, in Denniger's mind, raises a frightening possibility. Since US Treasury bearer bonds became illegal in 1982, Denninger argues that over $130 billion in outstanding bearer bonds being held by anyone was unlikely, unless the US Treasury and Federal Reserve were doing so surreptitiously and in contravention of law.

Which brings us to the financial bailout earlier, in 2008, when the Bush (mis)administration was pushing for a bailout of the Federal Reserve, and when the hands of banksters were greedily extended to the US Congress, and demanding no oversight of how the bailout money would be used nor where it would go. At the time I observed - and have repeated the observation - that this behavior smacked of people with a gun to their heads being held by some hidden blackmailer, whom they did not want anyone to know they were beholden to.  Enter the bearer bonds episode less than half a year later, and the possibility that the bonds were, indeed, legitimate, but covertly and surreptitiously issued, and factor in here the fact that the German media seems curiously insistent that the bonds were legitimate, over the pronouncements of the US government that they were not. Add to this fact that some of these bonds were dated 1934, and...well, you get the picture, for that would mean that someone was holding securities for a long time, and it raises the specter that double issues of securities was being done on a massive scale and perhaps covertly by the parapolitical structure of the USA, and that someone else knew it was being done.

That raises the bar considerably, for it means that Japan at least, and China and Germany very probably, knew about the scam, if indeed, that is what it was.

In either case, whether these "securities" were legitimate but covertly issued bonds, or whether they were outright  counterfeits, my intuition is that this episode was the tip of a much larger plot, one with deep connections to the parapolitical power structure in this country, one with deep connections to the financial bailout episode, and one with deep connections to the recent events in Japan.

Die ist eine interessante Lage, nicht war? (To be continued)