January 12, 2014 By Joseph P. Farrell

Yesterday you'll recall I outlined a case that ignoring the history of the role of Axis plunder and loot in the establishment of the postwar American national security state, and indeed, its role in the construction of the postwar financial system, complete with a vast hidden slush fund for covert operations and black research projects, constitutes, for the purposes of the legalities of financial planning, a material omission.

And regular readers both of my recent books (particularly Covert Wars and Breakaway Civilizations and Covert Wars and the Clash of Civilizations) will be aware that I have argued that this Axis loot began to be a strategic factor in American security and international policy formation with the decision taken by President Truman in 1947 to keep the Japanese portion of the Axis loot top secret, and totally off the books.

This is a significant year, because 1947 was also the year of Roswell, of the Kenneth Arnold UFO sighting, and of the signing into law of the National Security Act, which created America's version of the Reichsicherheithauptamt in the CIA and the NSA. As I argued in the two books mentioned above, the UFO is a principal, if not the principal, factor in the creation of these institutions and policies from the long range point of view.

Central to the financing of the vast national security state is a consideration of its two main problems: (1) Communism, and (2) the UFO, which, as it gathered reports through  the 1950s and 1960s, it would have inevitably come to the conclusion that the phenomenon constituted a potential threat, and that it had to be emulated as quickly as possible. Both the defeat of Communism and the emulation of the UFO required a long term commitment of financial resources of vast dimensions, dwarfing the Manhattan Project of the World War.

All of this brings us to the subject of today's blog. As I noted yesterday, many of you have been following the story of the attempts of German citizens to obtain a proper accounting of their country's gold reserves, and the reticence of the Bundesbank to provide anything even approaching transparency on the matter. As I argued yesterday, the hidden but very material reasons for this reticence are simply that such an accounting could conceivably unravel this whole postwar tapestry of Axis loot, hidden systems of finance, and the ongoing problems posed by the American national security state and its many tentacles to European and Japanese elites and Fascism. 

Now, in roundabout support of this, consider this article on the German gold repatriation issue that was shared with me by numerous regular readers here:

Monkey Business Surrounding the Repatriation of Germany's Gold Stored at the NY Federal Reserve Bank

Notice something critical, that I believe could be interpreted from the context of the hypothesis and scenario I've been outlining; I draw your attention to these opening paragraphs of the article:

"As there has not been an audit of Fort Knox since the 1950′s, nor a bar list made public since this German gold was claimed to have been deposited with the Federal Reserve Bank of New York back in the 1950s, this is a can of worms that has already been opened and any “answer” will only lead to more questions.

"So why exactly would the gold need to be recast before sending it back?

"Never mind the obvious question that we’ve already asked. Why will it take up to eight years to send the Germans their gold?

"You see, gold has a “fingerprint.” Once it is refined down to 99.999 percent pure, the fingerprint is erased. For example, the “coin melt” that came from the 1934 confiscation has a fingerprint of 90 percent purity. The gold the Soviet Union was selling back in 1990 was 89 percent pure and had the czar’s stamp on it, which was a dead giveaway that they were out of gold (money). They collapsed within six months and it was foretold by this “fingerprinted gold.”

"For these 37.5 tons to be recast brings up the question: Where did it come from? Was this the original gold that was safe-kept? Or was the German gold leased out a hundred times over and is this gold being recast and returned from another source?

"Is this like the bank employee or even retail cashier who stole from the register with the intent of replacing it before anyone found out?"(Emphases added)

Now, in answer to the last question, yes, it is like the employee who stole from the till with every intention of returning the theft before it is noticed(except of course, in one respect: the employee's intentions are probably far more moral and honorable than those of the CEOs and managers of large prime and central banks).

Cans of worms indeed!

Now note this statement:

" I call 'monkey business' on this one because there are just too many questions. The questions collectively all have the same obvious answers. All these obvious answers point to the same conclusion: The German gold that is being delivered is not the same gold that was supposedly deposited more than 50 years ago. That their 300+ tons (20 percent of the supposed total of Germany’s gold in New York) will take more than eight years to deliver means that it’s not just sitting in a corner collecting dust and waiting patiently to be delivered — it was mobilized and “used” years ago. The conspiracy wackos who used to be laughed at with their (our) farfetched questions and claims had merit after all — and all along the way!"(Emphasis added)

Note again the generalized reference to "conspiracy wackos" but the absence of any specific historical reference to Axis loot and the role it played in established the vast scheme of national security state agencies, covert operations, and long-term black research projects, and to the vast system of finance needed to sustain all of it.

So herewith our usual high octane speculation.... What really concerns us here is the opening paragraph: "As there has not been an audit of Fort Knox since the 1950′s, nor a bar list made public since this German gold was claimed to have been deposited with the Federal Reserve Bank of New York back in the 1950s, this is a can of worms that has already been opened and any “answer” will only lead to more questions."

I submit that the reason for the lack of genuine audits of Fort Knox is openly hidden in these statements and the historical context of the scenario I've been outlining in blogs about the German gold repatriation issue, and in my two books mentioned above. We may summarize this as follows:

  1. The German gold being held by the US in 1950 came, in some instances, from Axis plunder;
  2. It joined similar, and growing, piles of loot being recovered from Imperial Japan;
  3. In both the German and Japanese case, this loot was probably recovered with the tacit assistance of Nazi and Imperial elite sources, who would have required a quid pro quo for its use, and this might have included being included in the upper echelons of access to classified information, and involvement in projects and policy-making;
  4. It possibly soon became apparent to the financial parties involved in the creation of this structure, that the amounts of bullion involved greatly exceeded actual estimates.

Point number four indicates the twin motivations for the continued secrecy, for if the amounts of gold were disclosed at that time, the price would have been suppressed, and its utility as a reserve against which to create vast amounts of liquidity would have suffered accordingly. It was secrecy that ensured the system, and a manipulated price. In the vast scheme of things, transparency would also have given up the game or scheme being envisioned to create that system: secret rehypothecation and reallocation.  So long as the main issue (the UFO) that created this system continues to exist, so long will its participants attempt to shore it up and defend it, and that implies ongoing obfuscation.

Inevitably, such a system also creates a culture not only of secrecy - a breakaway civilization with access to hidden technologies and vast funds - but also a culture of vast corruption, as the elites that manage the system and its finances face and inevitably bow to the temptation to use it to advance their personal or corporate agendas,  and this too constitutes a significant factor of inertia in the perpetuation of the system.

When President Nixon took the USA off of the Bretton Woods modified gold standard altogether, the meaning of the event, in this context, becomes somewhat different, for it signals that the covert aspect of the financial system has now almost completely taken over. What I am proposing, by way of the justifiable efforts of some Germans to get an accounting of their country's gold, is that we must begin the historiographical process of analyzing postwar (and even prewar) financial history from the perspective of this historical model, for I suspect that when we do so, previously inexplicable or little understood events might take on new explanatory power.

See you on the flip side.