December 12, 2012 By Joseph P. Farrell

These past few days I have been blogging about a subject that intrigues me, namely, the increasing appearance that the world's financial woes may be tied to a hidden system of finance, created in part by (1)the interface between intelligence, the American national security state, and certain central and prime banks, and by (2) the use of industrial scale fraud - including counterfeiting, rehypothecation, based upon clipping, culling, and obfuscation of capital reserves, most specifically, gold and other bullion.

Now, I have been implying those all these articles on bearer bonds scandals, gold, rehypothecation, and so on, that all these shenanigans are signs of a hidden system of finance, and that this system, in turn, ultimately represents the mechanism of a breakaway civilization, the intriguing idea advanced by Mr. Richard Dolan in respect to his careful review of the relationship of the UFO phenomenon to the national security state. More recently, I have written two books - Saucers, Swastikas, and Psyops, and Covert Wars and Breakaway Civilizations -  with a third planned, on this very idea, the most recent being an examination of the putative culture of that civilization. Others have written about this idea from a different perspective (for example, Jim Marrs and his Rule by Secrecy and Rise of the Fourth Reich). In any case, one element remains common to these approaches, and that is the need for vast and covert mechanisms of finance, and the fact that this in turn requires some measure of interface with the "public" civilization of the world and its sovereign entities.

Enter now the recent stories about the growing number of nations wanting audits and/or repatriation of their gold, a tide that began with the ever-dismissible Hugo Chavez of Venezuela, and that became non-ignorable and non-dismissible with the entry of Frau Merkel's Germany making similar demands. The context, let it be recalled, of all these calls occurred against a backdrop of stories about the Bearer Bonds, and amid stories that gold bars were being discovered from China to Chinatown that were filled with tungsten.

Now, it never occurred to most people to ask the question that filling gold bars with tungsten was a rather elaborate process, not one likely to be engaged in profitably bu small players...and that implied that some of the actors - as I've been implying here - were in fact some big players.

Well... it seems now that some are suggesting that the tungsten-for-gold operation may have become "sovereign," i.e., that it may be perpetrated as acts of policy by sovereign governments:

EU and Asian sources allege the tungsten-switch has gone sovereign

Now here, as the article points out, the Bundesbank, which has been stonewalling the calls in Germany for an audit and repatriation of that country's gold, has been apparently caught in a tungsten-salting scheme:

"Here we are talking about an Establishment eurobank alleged to have been caught short on a fulfilment order, and using the tungsten scam to fill the gap.

"This is an entirely different criminal intent: not the somewhat crude attempt to con a retail greenhorn, but rather an well-planned and sophisticated ‘salting’ of the gold bars by a major bank….designed to fool even an expert engaged in approving the purchase for a large sovereign client. Here, using perhaps as little as 25% tungsten would be enough to make up the embarrassing shortfall.

"There is no reason at all for anyone to see this as far-fetched. The SME scams pulled by RBS, and Libor manipulations carried out across the piece of Establishment banking, have been solid evidence in recent times of desperation on the part of those suddenly faced with a brave new world where Berlin wants all its gold back….but the gold isn’t there any more."

Now, we have detailed here the stories about the New York Federal Reserve and the strangeness surrounding its own gold stories (including that little episode back in 1928 with Hjalmar Schacht). More recently, China has been alleging similar malfeasance.

Note the geopolitical underpinnings here, for the allegation is that the US central bank and its allies have been involved in massive gold fraud, while the major economy in Europe which coincidentally wants an audit and repatriation of some or all of its gold, and the major economy in Asia, are sending clear messages that they no longer completely trust the financial soundness of the West.

These are major blows, for as I have been trying to outline here and in those books, this system of finance is intimately tied to the post World War Two structure of western power; it is the financial mechanism underwriting Western military preponderance, and Germany, or at least, the Bundesbank, very much is a part of that structure and mechanism... for Germany now to call for audits and repatriation is a major fissure, one that could become a fault line, within that structure.... and it is the Germans themselves who are leading the drive for these calls, while their government continues, unresponsively, to try to remain integrated in that structure...

...the cracks are growing folks....

See you on the flip side.