August 10, 2012 By Joseph P. Farrell

I haven't commented much on the LIBOR banking scandal and what it might possibly portend(other than the by-now-usual bankster fraud, rigging, and creation of dubious "securities"). Yesterday I blogged about the apparently missing German gold, going all the way back to the Reichsbank administration of Dr. Hjalmar Schacht, and the strange pattern of Germans coming to inspect their gold at the NY Federal Reserve, only to be told it's missing and cannot be found (Dr. Schacht), or "you can't see it right now'(Philip Missfelder).

But as the LIBOR scandal unravels, what we see increasingly exposed to the light of day is just how deeply the major western banks have been implicated not only in fraudulent activity, in interest rate rigging, but also in money laundering. What we see revealed is the interconnection between drug trafficking, the reserve status of the US dollar, the need for drug money to support the huge defense budget of the US empire, and, if the pattern of the Two Germans and the NY Federal Reserve that I talked about yesterday holds true, then the wor;d's gold reserves appear to have been used several times over to prop up the whole system. Now, while surfing the internet looking for more on this story, I ran across this one, and several of you also emailed me this link, and though I do not know much about this source, there are aspects of this article that caught my eye, for he is arguing essentially what Prof. Peter Dale Scott and others - including me - have been arguing: namely, that the Western financial and banking system long ago crawled into bed with criminal  and intelligence agency elements, and that those criminal elements might now be in some sort of struggle for power with those very banks:

Jim Willie: Exposure of Allocated Gold Account Raids Will DEVASTATE the Major Banks

Now, this one is saying essentially the same thing that I and others have been saying: there is a massive discrepancy in the numbers concerning actual gold reserves:

"My best source shared in 2010 that at least 20 thousand tons of Gold had improperly been taken, leased, and replaced with gold paper certificates in vaulted locations. The bullion bankers were dangerously short. In 2011, he admitted that the criminal activity had easily surpassed 40 thousand tons of Gold illegally leased, resulting in a massive short position for the bullion banks. In 2012, he increased his estimate to between 40 and 60 thousand metric tons of gold illegally seized from Allocated Gold accounts, the short position totally out of control and absolutely impossible to bring into balance with short covering. In the last week, he passed along a communication with a veteran Gold expert with decades of savvy experience. They concluded that remedy for the vast gigantic short position by the gold bullion bankers will send the Gold price well over $10,000 per ounce. They believe probably by the end of the criminal prosecution remedy, the resolution of the defrauded Allocated gold accounts, and the installation of the new trade system alternative, the Gold price will find a natural value at least twice that elevated value. Expect further revelations and documented evidence of vast Allocated Gold account raids, and improper raids to gut the Exchange Traded Funds (GLD, SLV). It is only natural in the brush fire jumps."

I suspect, however, that the truth may lie somewhere between massive over allocation, for one must ask, what phenomenon led to the over-allocation in the first place? Here I speculate, but the speculation is based on two factors, one of which I have mentioned on this site previously in connection to the bearer-bonds scandals, and the other based on a phenomenon that the author (Jim Willie) of the linked article himself draws attention to. First, the factor I mentioned before: the whole issue of the amount of actual gold in existence was first brought to public attention by Lord Blackheath in the British House of Lords a few years ago. Indeed, if one has been following the whole story, part of which dates back to the Imperial Japanese plunder of Asia (Operation Golden Lily), there may have suddenly surged into western banks an amount of gold that (1) was not accounted for in prior western estimates of the total amount of gold available in the world and (2) which for that reason was kept off the books of major banks, and then used and used again (re-allocated or re-hypothecated) several times. Thus, while there is a short in gold, the real problem may also be untangling all the paper trails of how it was fraudelently reallocated.

But why this massive re-allocation? Enter here the dark underbelly of the Anglo-American financial empire and its deep connection to the US military as the actual backing for the US Dollar. As Willie puts it:

"Just in the last ten days, the brush fire jumped into the drug money laundering forest. Permit an imagery jump as well, even though mixed imagery is a cardinal sin of composition. But since on the topic of jumping, a shift in the blaze of imagery might be appropriate. The money laundering of narotics funds is a vast industry. The United Nation task force identified the United States as being unduly reliant upon the benefits of drug money infusion into the banking system following the 2008 Lehman bust, sufficient to prevent a collapse. The UN document reports were published in 2009 and again in 2010. What better place to funnel the money than into the primary banking system from the USGovt agencies responsible for the vast clearing house functions. Representative Ron Paul has addressed this problem in direct accusations. Here is the imagery jump. The operations of money laundering are like a collection of wires without insulated coatings laid out on dark basement floors, one from each bank. The participating big banks do not always have full knowledge of the other and their activities. Many countries are involved, as the distribution rings are vast, like with Mexico in the recent incident. So the wires occasionally cross each other and cause troublesome sparks. The High Scandal in Bank Collusion has already caught fire in the money laundering rings. The bank in the spotlight has been encouraged to align its wires properly, according to the Cooperative Installation Alignment codes from the Underwriters Lab south of WashingtonDC. They will comply, or else resignations will be the least concern of the bank executives. Their lights might go out. This is a topic loaded with risk. The message to take away is that all the major US banks are deeply committed to narco money laundering, which tie in with defense contractors who serve as errand boys and delivery hosts."

Once we have entered this level, then we are dealing with a whole new set of factional players, the big drug cartels and, dare I say it, the whole International Fascista group, that made major penetrations into drug trading in the postwar period. The point here is that this money constitutes, as I have argued here and in my books, a major source of funding for black research projects and intelligence covert operations. Or, to put the same point slightly differently, markets were and are manipulated by intelligence agencies for the purpose of securing the empire and more importantly the funding for these projects.

And then of course, there is this little jewel, and the connections will immediately become apparent:

"A potential disruptive jump in the banker brush fire would be the revelation of disposition of World Trade Center vaulted assets. Only a moron would believe they vanished. Refer to the enormous amount of purported missing gold bullion, the enormous amount of purported missing bearer bonds, the enormous amount of purported missing diamonds from the infamous 911 event. The political implications would be vast, far more damning than the smoking guns by scientists. They would eclipse any and all claims made by engineers and architects (see AE1000 Group) that undermine the official poppycock story. The documents concerning the flow of gold, bonds, and diamonds might be more visible under document discovery amidst the LIBOR investigations, if a bank heist were to be demonstrated. It is a difficult task to conceal the movement of $100 billion in gold bars, $100 billion in bearer bonds, and $100 billion in diamonds, if indeed it was a bank heist. The Jackass scientific background has consistently brought attention to the vast inconsistencies due to gravitation pull in freefall, to the inadequate burning temperature of jet fuel to alter structural steel, and the absence of aircraft debris on the Pentagon lawn. All official stories have seemed like music on the other side of logic and physics."

Most readers here know my difficulties with the official story, and the semi-official "controlled demolition nano-thermite" story of this event... While aspects of the trade center collapse are explainable by the semi-official story, other aspects of it simply seem to me to be unexplainable by that hypothesis, and that it is necessary to consider exotic directed energy weaponry, and that takes us back to nasty black projects and the people that might have access to such a technology...

Willie mentions the fact that Deutschebank is now cooperating with Interpol and the Hague in various efforts to expose the London-New York axis, in other words, there is factional infighting, of a massive sort, occurring within the banking world, just beneath the surface of the outward display of unity. This, plus the fact that several nations are going to a kind of international bilateral barter system, led by the BRICS nations, means we are looking at a kind of 21st century War of the League of Cambrai, with the West of London and New York representing the Venetians on the receiving end of something, from someone.

What does emerge from all this in my mind is something critically important: 9/11 was not about terrorism, and neither is the "war on terror." It was the first shot in a covert war, being fought with some very exotic real and financial weapons, and the western oligarchy was on the receiving end of something that they themselves instigated, until another player showed up on the scene, with some very interesting toys...

See you on the flip side.