Babylon's Bankers

NOW IT’S FILIPINO BEARER BONDS: A CLOSER LOOK: PART ONE: DETAILS

Readers here know of my fascination for the various bearer bond scandals that began to break in recent years, beginning with the seizure of some $134,000,000,000 in allegedly counterfeit bearer bonds beginning with the Japanese Bearer Bond Scandal in Italy in 2009. Well, in case you haven't heard (funny how the media over here isn't reporting on these stories since the Japanese one, isn't i1!?), there has been yet another such story emerging, as recently as January of this year, as reported by Bloomberg here, and which I blogged about last January. But it requires a closer look:

No One Knows Truth About $300 Billion Bonds From Alleged Crash

The episode itself, you'll note, occurred in the year 2000 in the Philippines, when natives went into the jungle, pursuing rumors of a crashed American airplane in the 1930s, and discovered "12 boxes that contained $300 billion in bonds." Readers will particularly note the following details:

"Each box, emblazoned with the Great Seal of the United States and the words 'Federal Reserved Bond,' held five gold coins struck with a portrait of George Washington on one side, Estrella says. They rested atop stacks of certificates purporting to have been issued by the Federal Reserve Bank of Atlanta in 1934 and redeemable in gold bullion. The notes bore the signature of then Treasury Secretary Henry Morgenthau Jr.

"Such fixed-income instruments, also known as coupon bonds, belong to whoever holds them, rather than to a registered owner. Vouchers representing interest payments were attached to the 30- year bonds that were denominated in amounts of as much as $100 million."

Note the details here, for they will inform our analysis in part two:

1) the bonds were dated 1934;

2) the notes were signed by the then secretary of the Treasury, Henry Morgenthau;

3) the bonds were found in chests and stamped with the seal of the Atlanta Federal Reserve Bank;

4) the bonds were purportedly redeemable in gold bullion;

5) the bonds were also accompanied by five gold coins stamped with the image of George Washington;

6) the bonds were denominated in $100,000,000 amounts;

7) the bonds totaled some $300,000,000,000.

The mystery deepened when the boxes were brought to a hotel in Manilla, where the story then notes that during the 1990s, Manilla's hotels were "'filled with foreign treasure hunters. I met people who had 40, 50 boxes of bonds, and I looked at them. They were different from ours. What a mystery," according to Jose Cojuangco, the brother of former Philippine president Corazon Aquino, who, as the article notes, helped topple the regime of Ferdinand Marcos.

The bonds' discoverer, Chris Estrella brought the discovery to Manilla where he sold them to Ronaldo Quiwa, in turn in the year 2002:

"...took the two boxes of bonds across the Pacific to Garden Grove, California, for review by Kurt Schwalbe & Associates, a document-examination firm. Schwalbe’s signed one-page report dated Aug. 18, 2002, says he examined '250 Federal Reserve notes with 33 interest coupons attached from box 9494' and 'determined them to be genuine as to date and origin.'

"Quiwa says the analysis didn’t satisfy him.

“'Schwalbe’s report was not complete enough,' he says.

"The phone number on the report is no longer working, and further efforts to locate Schwalbe proved unsuccessful."

Adding to this mystery, the article goes on to note that in the case of the Japanese bearer bond scandal, the two Japanese men were tracked back to....the Philippines, whence they had departed for Europe and Italy.  The article then notes that U.S. Secret Service Special Agent Robert Gombar, stationed in Italy, maintains that

“'Nowadays the bonds are almost always U.S. Treasuries from the 1930s, and the forgers have grown more sophisticated,' Gombar says. 'They go to great extremes, putting them in antiquated treasure chests stuffed with newspaper clippings from the 1930s. It takes a great deal of time and trouble to print these bonds and establish the con.'

"Across the Atlantic, in New Hampshire, financial-instrument specialist Winslow takes one of the gold coins from Quiwa’s treasure chest shown to him by Bloomberg News and flips it in the air. It falls on an oak table in his office with a clink.

“'Cheap metal,' he says."

Of course, the official position, as indicated in the above quotations, is that these instruments are fakes. But it is interesting to note that the officials involved in the attempts to authenticate these instruments have pointed out the same thing that I myself have argued in previous blogs, namely, that someone is going to great lengths to counterfeit not only the bonds but the Federal Reserve Branch Bank strongboxes that they are "discovered" in:

“'For a collector, these counterfeit bonds are awesome because somebody spent a lot of time trying to justify their authenticity,' Winslow says. 'It’s a marvelous deception.'

Indeed, that it the point: it is a marvelous deception, one which someone is going to a great deal of expense to counterfeit  not only bonds, but coins, and strongboxes.

All this leads us, once again, to an analysis and synthesis of details...but those will have to wait until tomorrow...

...See you on the flip side...

12 thoughts on “NOW IT’S FILIPINO BEARER BONDS: A CLOSER LOOK: PART ONE: DETAILS”

  1. lol,… imagine what it would be like to legitimately and privately own a federal reserve printing press.

  2. Impartially and responsibly regulated money is a great invention for talling and exchangeing debt obligations for work or goods. But that is only the sale pitch. In reality it is being manipulated and used as a weapon and for systems of fraud and theft. The issuers and creators if not carefully watched and quickly brought to heal over abuse of their power and responsiblities will produce nothing of true value but consume, control and destroy everything of value and those who produce true value. The greater military nations controled by their greediest and most powerful industries and financiers obviously created many fraudulant issuances to ease the compliance of weaker nation heads to the systematic rape and pillageing of their people and resources with no intention of honoring their implied obligations. Instead of holding true to their part of the bargain when it came due they found it more expediant and fruitful to destablize these poor fool’s nations and replace them with new head of state stooges and a new deal that would likewise be reneged upon. These bonds were designed to fool the ignorant sucker heads of state and competeing industries but not the future Bankers who may be out of the loop and subterfuge of their potentially deceased predecessors scams. Just my theory. Many of these fools who caught on to the fact that they had been scammed or their heirs who are aware of the scams and found ways to protect themselves are likely threatening to go public and seek international justice or at least use this embarrassment of the guilty heirs legitamacy for leverage on current secret negotiations and power brokerage of the future divisions of power and wealth.

  3. Same place, larger sum with German and Argentinian currency.

    http://abcnews.go.com/International/story?id=81470&page=1#.T4i-RGBBDSw

    By Adam Brown
    M A N I L A, Philippines, Feb. 20
    Officials said today they have

    seized more than $2 trillion in counterfeit U.S. Federal Reserve

    bonds and arrested one suspect in the southern Philippines.

    Police also showed reporters stacks of counterfeit Japanese yen and Argentine peso notes in various denominations, a few fake one-dollar bills and some other currencies seized Saturday.

    Police and staff from the U.S. Embassy arrested a Filipino man in the southern city of Cagayan de Oro with the falsified currencies and U.S. bonds along with German and Argentine bonds — a total counterfeit haul of $2,157,044,400,000.

    ‘Very Good Quality’

    The fakes were of “very good quality” but some of the bond denominations do not exist, said David Popp, a U.S. Treasury Department representative.

    The U.S. bonds, totaling more $2 trillion, were in denominations ranging from tens of thousands of dollars to $500 million. The bonds of other countries were in denominations as small as $30.

    Popp said the large bonds may have been meant for a major “lost treasure” scam.

    “Very frequently these fraudsters weave a tale that there’s these long-lost Federal Reserve bonds hidden away or found in a plane crash,” Popp told a news conference.

    The raid on the house also found two metal boxes from the U.S. Federal Reserve, said Nestor Gualberto, Philippine National Police superintendent.

    Some Smuggled Out of the Country?

    He said police charged Archie Mingoc with counterfeiting and were seeking five others. He said some of the bonds had been sold in the southern Philippines and that police were trying to discover whether others were smuggled out of the country.

    “We know they were selling some bonds to very curious buyers — businessmen in the area,” Gualberto said. “We’re still ascertaining where they’re coming from.”

    The raid follows two other large-scale seizures in Mindanao in December 1999 and February 2000, when a combined $110 billion in “good quality” fake bonds and currency were found.

    Cagayan de Oro, 500 miles southeast of Manila, is in the southern region torn by at least three guerrilla uprisings.

    Two Muslim separatist groups are fighting to carve homelands out of the region, while communist guerrillas are fighting to overthrow the government.

    Strife in the poverty-stricken region also makes it home to kidnapping and other crime.

  4. Ok,
    Now let’s realize, as stated in the article, that the Philippines are a center of fraud, and the Italians are master craftsman at creating fraudulent documents.

    Case in point, it appears that a prominent man in the Philippines has some other kinds of fake doucments:

    http://opinion.inquirer.net/23555/gold-mine

    And some other sleaze:

    http://opinion.inquirer.net/23555/gold-mine

    And more fake gold bars for sale in Manila

    http://opinion.inquirer.net/23555/gold-mine

    And a very important article that ties a lot together:

    http://www.marketoracle.co.uk/Article8813.html

  5. I don’t see anyrhing funny about a private
    propagandized media any more than a private
    world ‘bank’ owning all the others.

    1. Propaganda – I agree HAL,

      Keep on sniffing up the wrong trail and after you EXPENDED all your vital energies searching for a ‘truth” —- that is when this propagandized media disappears and you get to see the real ‘face” of adversity!

      1. The truth doesn’t hurt is bullcrap.
        The only consolation is that the untruth
        always backfires.

  6. Again: The term “Federal Reserve Bond” is a problem–though would be an interesting conspiratorial source of alternate funding, and sure could suggest that someone has known how to make gold in quantity since early in the last century. And Germany is absolutely right to point out the corruption and empty selfdealing that is high finance.

    Still like yesterday, language is a problem, in that case JPF seems to have conveniently confused the word Keynesian with corruption, like last week with the words theocratic and apocalyptic.

Comments are closed.