In part one of this serialized blog, I concluded that for the bearer bonds episode to be a counterfeit operation, that there had to be ultimately a nation-state behind it, a state that owned such bearer bonds which could provide the exemplars to counterfeit to any forgers doing so, and who held large amounts of American debt. So who are the likely candidates for those nation states?

Obviously, Japan and China spring immediately to mind, especially as the so-called "smugglers" of the bearer bonds were alleged to have been Japanese. In an internet article titled "Japanese Dumping $134.5 Billion on Bearer Bonds Using Smugglers in Italy? What?" by someone calling himself "Luther," the following possibilities were raised:

"There are two major competing interpretations of what to this writer is one of the strangest financial stories of the last decade.

"1) The Japanese, or someone else in the Far East, are unloading American debt. The amount represents 25% of Japan's current holdings of U.S. debt.

"2) And not to be outdone, the conspiracy types, which are legion on Left and Right wing blogs, note the corresponding values:: $134.5 billion in bonds; $134.5 billion in remaining TARP funds. Was the U.S. administration, or officials in Treasury or the FED, parking a big pile of money overseas as a contingency in case things went to hell in the U.S.?"

"Luther" goes on to note that the writers for the Vatican-backed Asia News discounted the latter possibility, since if the story ever broke that such secret securities were being covertly issued by the US Federal Reserve or the US government, it could bring the whole US national power structure down. Asia News linked the bearer bonds affair to the resignation of Japanese Interior Minister Kunio Hatoyama. That brings us to what may be the proper interpretive context for the whole affair: Japan's politics in 2009, and its wider implications.

I have written previously on this website about the fact that, in the wake of the Japanese earthquake-tsunami-nuclear disaster, that the Chinese, South Koreans, and Japanese were planning a regional security summit to discuss disaster preparedness and "other issues." When the story was first issued, US Secretary of State Hilary Clinton was not yet announced as a participant in this summit. This, as of this writing, has now changed, making the political analysis offered previously even more interesting.

On August 30, 2009, general elections were held in Japan whose results can be described as nothing less - in my opinion - than a geopolitical earthquake of major proportions. The Liberal Democratic Party, which had ruled Japan more or less uninterruptedly since 1955 as more or less a shill of the Anglo-American geopolitical interest, was booted out of power in an election that gave the Democratic Party of Japan some 308 seats in the lower house of Japan's imperial Diet.

After that election, the news out of Japan - if one was following it closely - was nothing less than bizarre, geopolitically speaking, for there was talk of state visits of Emperor Akahito to Beijing (a geopolitical earthquake in an of itself since it signaled a rapprochment between the two countries), there were reports, as noted on this website, of Japanese water-powered cars being prepared for mass market production by the Japanese auto industry, there were quiet but very forceful requests on the part of the new Japanese government to the United States to move its military base on Okinawa.

Then, as I have noted previously on this website ("Japan's Moves Away from the US," April 19, 2011), this request was addressed by US Secretary of Defense in remarks that could be construed as little more than a threat, for he warned Japan that it could face "serious consequences" if it persisted in its request. Notably, those serious consequences were not detailed.

All this places the bearer bonds episode into a unique context, and here I indulge in some high speculation. The episode of the bearer bonds seems to me to fit, in some respects, the wider pattern that began to emerge in Japanese politics prior to the general elections of August 2009. If the bonds were legitimate, then it would appear that an event was staged to show to the world that the US financial system was in tatters; if illegimate counterfeits, then bigger issues are in play, and in either case, if the Japanese government had any role, in my opinion it would have had to be third hand, through the Yakuza or similar organization, to provide "plausible deniability."

It is interesting that the Japanese government's policy of reorientation toward Asia and away from the USA was not abated by the bearer bonds episode, but actually seemed to have grown with distance from the event, culminating in the general elections of 2009, and its formal requests to the USA to move its military bases. In this, Japan was mirroring recent geopolitical and financial moves of China and Russia away from the dollar and toward an Asian security relignment, best symbolized by the Shanghai accords. Add to this the possibility that the derivatives meltdown in America, the United Kingdom, and some European countries had a strong Chinese hand in the form of Dr. David Li, and the picture gets even murkier. Could the bearer bonds episode have been sponsored by the Chinese? Sure. The North Koreans? Yes. But the possibility that Japan had a role, given the wider political context, should not be ignored. It was a message, a strong one, but yet not so strong as to cause a financial panic, in the corridors of financial power in London and New York.

And all this puts the idea of "earthquake retaliation" into an even stronger possibility of reality, in my opinion, as a clear signal to Japan not to continue on its course of trying to break away and regain full sovereignty from the Anglo-American orbit. If so, then it was the action of desperate, panicked people.

But there are other aspects of the story to be considered. Keep that dial right here...

(To be continued)

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Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".


  1. Kent on April 26, 2011 at 9:15 pm

    Hhhmmmmm___________it’s good not to be into geopolitics. It’s over my head. There’s a kind of safety in ignorance; keeps me out of trouble. Ya’ll keep thinking, writing and squabbling, and I’ll stop by to read it all. “Babylon’s Banksters” is on the dresser collecting dust while reading “A.D.” and “GGM&M” “B.B.” is next.

    Doc Farrell’s picture is perfect here today with that Cheshire cat smile. You can’t out smart him friends.

    where do ya’ll get those smiley faces?

  2. Mik on April 26, 2011 at 12:19 pm

    This is just uninformed naive Kiddie Konspiracy talk.

    Those fake bearer bonds were of a type commonly seen in East Asia coming from the Philippines for years and now North Korean. A Philippino woman was convicted in the US 3 years ago for trying to sell them to a Texas millionaire at deep discount rates.

    Anyone who knows even the basics of this stuff would be aware there are no bearer bonds in these astronomical denonminations that you can just cash like a money order. There were some $ billion bond hidden in the suitcase those N Koreans tried to smuggle from Italy to Switizerland. Such a denomination never existed. Their game was to try to open an account and get a line of credit based on their phony deposit. The Italians couldn’t charge them with forgery as these were not copies of anything that ever existed.

    Articles should be based on facts with some level of substantiation not just rehashes of the same old online nonsense.

    • Joseph P. Farrell on April 26, 2011 at 12:39 pm

      Glad that, in your ad hominem, you leaped to a conclusion before the series is even done. And while we’re at it, please re-read the beginning of the series where I deliberately and explicitly stated that this series is SPECULATION. Take your attitude elsewhere.

    • MizGreen on April 26, 2011 at 4:04 pm

      Looks like you’ve truly hit the big-time, Dr. Farrell — your website is starting to attract trolls! 😀

    • Kathie on April 26, 2011 at 5:15 pm

      It’s true that is the “official story”, however there is documentary evidence that bonds, treasuries, etc. in these denominations do in fact exist. the who, what, why, where and when will be particularly fascinating to read on Thursday!

    • Jon on April 26, 2011 at 7:41 pm

      Actually, if one actually comprehends the articles, they are based on facts.

      Just because there are no publically acknowledged bonds in those amounts does not mean that bonds could not be covertly created and used in any denomination desired. There are all kinds of activities which go on every day with which the ordinary citizen is completely unfamiliar. (And, by the way, that is a fact.)

      The idea that because someone has faked bonds like these, therefore all bonds like these are fake, is a thinking error called a “logical fallacy.” If it were true, then Hollywood’s ability to fake events for movies would render all of history non-existent. (Also a fact.)

      Since it is Farrell’s blog, he is free to write whatever he wants, whether you like it, approve or not. (Darn, another of those pesky facts!)

      The idea that all articles should be based on fact would immediately eliminate the lion’s share of human communication (not necessarily a bad thing). While such fantasies may appeal to the untrained mind, all human communication has “between the lines” information which must be explored in a speculative manner – this is the heart of intelligence work. (Oops, another of those fact things sneaking in….)

      And as Nietzche would say, “there are no facts, only interpretations.”

  3. Patrick on April 26, 2011 at 10:25 am

    best source of information on this Dr. David Li??? Haven’t heard this part of the story yet…

    • Joseph P. Farrell on April 26, 2011 at 10:27 am

      Try a book called Babylon’s Banksters, by….well….modesty prevents me. 😛

      • Patrick on April 26, 2011 at 11:10 am

        Lucky me, I ordered it from Amazon yesterday actually 🙂

  4. MattB on April 26, 2011 at 6:38 am


    And the Aus P.M was quick to see the Emperor as well…..

  5. Dave Walton on April 26, 2011 at 5:56 am

    Truely fascinating!! Look forward to hearing he rest! 🙂

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