Remember those missing trillions? The story, as regular readers here know, was first uncovered by former Assistant Secretary of Housing and Urban Development, Catherine Austin Fitts. The Dr. Mark Scidmore did some research and confirmed the existence of the missing money and Forbes magazine ran an article on the story. The problem, though, is that no one really knows for certain where the trillions went missing to.

A part of that answer may be in this short article that was spotted by V.T., and shared with me:

It's that first paragraph that I want to draw to your attention:

When theGAO report came out on the Quantitative Easing by the Federal Reserve, it uncovered a secret $16 trillion feeding tube from the Fed structured as revolving, low-cost loans to any bank (foreign or domestic) teetering on the edge. Amazingly, the audit showed the Fed started the loans in December 2007 – long before the public knew there was a dangerous financial crisis – and it lasted until at least July 2010. (Emphasis added)

Now, I find this conclusion wholly believable for a number of reasons. In various books, chiefly Covert Wars and Breakaway Civilizations, and in my first lecture of the 2014 Secret Space Program Conference in San Matteo, California, I outlined what I have referred to as a hidden system of finance, involving, among other things, those mysterious bearer bonds scandals that began to surface ca. 2008. My thoughts on this system have even appeared in summary form on Reddit, here:

The first of these bearer bonds scandals that appeared was what I call the Italian Bearer Bonds scandal in 2009, when the Italian financial police the Garda di finanza intercepted two Japanese gentlemen traveling into Switzerland. The gentlemen - whose names we never learned - were carrying $134.5 billion in bearer bonds concealed in a false bottom of a briefcase. We were never told exactly why the Italian financial police intercepted them to begin with. The upshot of the story created such a storm that American President Obama had to answer questions about them during a press conference, in which he stated that the bonds were faked. It was pointed out at the time that the amount seized was exactly the amount of money supposedly in the troubled asset relief fund. Then, shortly thereafter, we have the Spanish and yet another Italian bearer bonds scandal, this time with "fake" bonds seized were in the trillions of dollars, six and two respectively. Again, the bonds were denounced as fake and counterfeit in the media, and an academic study was even published to that effect.

I have pointed out numerous times that even if these bonds were fake and counterfeit, that does not eliminate the problem, and that for a very simple reason: one does not go to all the trouble to counterfeit things that do not exist. Taking the affair of the notorious 57 bonds of the Japanese financial ministry of Prime Minister Tanaka as an example, I pointed out that the Japanese did make bonds that resembled no previous bond issue in Japanese history, replete with "mistakes" as security devices, and simply swapped this paper for bonds coming due, with the victims being Japan's super-rich. And here's the kicker: they were not to be sold on any existing bond market. In short: we were looking at "fake" bonds to be bought and sold on a hidden bond market. By parity of reasoning, I argued, we might be looking at a very similar proposition with respect to the bearer bonds scandals.

To make it all work, I also argued that this scheme would require the participation of the central banks and the major prime banks of the world. So consider in this context the following statement from the article:

In addition to the publicly known support to Bear Stearns from the New York Fed, the GAO audit revealed that the Federal Reserve provided another $853 billion in secret loans to Bear Stearns; $851 billion from its Primary Dealer Credit Facility and $2 billion from its Term Securities Lending Facility. It wasn’t until May 31, 2008, when JPMorgan Chase closed its deal with Bear Stearns. However, the GAO reported that Bear Stearns “was consistently the largest PDCF borrower until June 2008.” The Fed shows that Bear Stearns continued to receive funds until June 23, 2008. (Italicized emphasis added)

Note that figure of $2 trillion, for that is the precise amount of bearer bonds recovered in the Spanish bearer bonds scandal. (See:

Factor in the derivatives markets, and one has a system creating massive amounts of liquidity, some of it hidden.

It's that participation of the central and prime banks in this system that I think we see here, for extraordinary amounts of money now are admitted to be flowing out of the Fed into troubled banks in the form of loans, and when central banks create loans of this nature, they usually do so by the issuance of bonds. The problem here of course is that  one bumps up against "the standard narrative," which has it that the Fed does not issue its own bonds, the US Treasury does. But if you've been following this strange bearer bonds story, there is an exception even to this (if you take it seriously, and I do), and that exception is the story of the so-called "Morgenthau" bonds, issued to Chiang Kai-Shek's Nationalist Chinese government prior to World War Two in return for that government's gold which was allegedly placed on deposit in the Fed to keep it from falling into the hands of the invading Japanese armies. These bonds were supposedly issued by the Fed, again with deliberate mistakes as "security" devices, the mistake in this case being that the bonds were issued as "Federal ReserveD bonds," by the bank itself, completely by-passing the US Treasury. I for one believe that story.


Because now with his GAO report, it's clear that the Fed will act secretly, and without consent, oversight or policy from the government. In effect what it did was to create the policy that would become public during the bailouts of 2008. And let us remember one important fact about those bailouts: they wanted and insisted upon no oversight from Congress or anywhere else about what they intended to do with that money.

And if they can act in secret and without consent, oversight, or policy from the government in 2007, they could do it in 1934 with the Morgenthau bonds. And if they could do it in both instances, then the bearer bonds scandals and their place in a hidden system of finance seems to be confirmed yet again, from a very different angle.

See you on the flip side...



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. zero on August 2, 2019 at 11:33 am

    So where is the gold?

  2. Richard on August 1, 2019 at 5:26 am

    Now is as good-a-time to . . . “Never trouble, trouble until trouble, troubles you.” ~ John Adams . . . “for you’ll only double trouble bringing trouble threefold back to you.”

    The Fed cut interest rates today for the first time since 2008, stating some concerns about global slowing, the story goes. No revelation there as it was somewhat expected. One suspects it as a more pre-emptive fail-safe and buffer put in place – Your proverbial canary in a potentially dangerous place if not a subtle warning to certain investors. On the brighter side, loan interest rates will be a little lower for the barrowers.

    One has been wondering about Venezuelan gold and what some compare as a new low for Venezuela in that its comparable to where Germany was in during the 1920’s. Maybe there’s a hundred year cycle beginning again.

    At any rate, personally, I suspect there are too many misplaced zeros left of the floating decimal points that those algorithm-eating peta floppers are chomping on. Secondly, there are too many individualized human synapses fumbling with presumptive figures they’re guessing are accurate as they program. Thirdly, this is learn-as-you-go for the Fed like it is for the rest of the inhabitants of this populated planet. Shuffled decimal points and all.

    With this business about banks this and banks that, banks laying off employees, banks closing their doors, one suspects that some folks, experts to one’s novice level entry, might be right in that it has much to do about a transition to digital currencies or coinage. One suspects that there are measures already in place in certain banking groups, shall we say, that do not want another 2008 meltdown. Putting some early buffers in place to mitigate surge effects of this weird rising negative-yielding debt over there (European Union (EU) – European Central Bank). Now, which bank, do you suppose, has a lot of influence these days globally and originating from you-know-where over there.

    It would seem that there’s a bit of uncertainty [shakiness] from whence there was stability. After all, $12 Trillion plus of negative-yielding bonds are a distress signal, some say. Let’s see, the global or world now has around $13 Trillion of debt with below-zero yields and $12 Trillion, or so, of that is over you-know-where. Almost sounds like some sort of [debt trap] planned if numbers be true. Glad some of those banking stress tests were favorable and in the black for several US financiers. But what about those over powered, insider programmed, and error prone machinery deciding when human decision is required.

    Then there is this quirkiness called Brexit and concerns about trade after that October 2019 EU departure. And that business about chaining China’s peta flopper thieving of intellectual property, emails and rerouted server data, the potential for nasty weather weirdness and the insurance racket unwilling to pay for claims, zealotry of sleeping misfits, refineries bellowing black soot they ought not, . . . well, . . . all of those plus a continuance of changing variables and more (more weirdness from that unknown source – don’t ask), . . . These are, indeed, uncharted waters, that learn-as-you-go voyage. . . Who’s in the crows nest aloft watching for rocky shoals and unfriendly sails along the horizon? In this case, someone with a mind for business, yah think.? Just what are Italy’s best financiers up to these days, one wonders. Better check those sails for intel leaks or rather holes needing mending to catch the winds.

    Capitalism seems the best way forward in any case. Not that communistic ranting about socialism bailing everyone out. It’s going to take engineers and builders not theater time grabbing and babbling brain dead on tap screens.

    Makes one wonder just how many billionaires are trying to scoop up the gold that’s moving around and why. ‘Suppose you’d have to be a billionaire to be in those loops and scoops.

  3. marcos toledo on July 31, 2019 at 7:18 pm

    Just wondering how much do these mammon addicts need to live the good life. Or are these fiends reason for existing making life hell for the rest of us?

  4. Robert Barricklow on July 31, 2019 at 11:34 am

    Have a trial in absentia for that infamous traitorous cowardly night before Christmas lobotomy on the U.S. sovereignty. Immediately after comes the fruits of that sinister surgical strike: WW1 & the IRS.
    It’s been a continuous smorgasbord of infamous delights for their prodigy ever since.
    Welcome to austerity for the 99.99%; and, outrageous fortunes for those connected/related to the traitors.

  5. anakephalaiosis on July 31, 2019 at 6:32 am

    Clearing houses and paper bills go together like birds and feathers, otherwise value would be less, than falling leaves in the wind.

    When drinking blood out of a system, the financial vampires need to bottle liquidity somehow, for transportation.

    Interestingly, the clearing phenomenon is NOT their own invention. Binding of wolf’s-head was always a Druidic circle, a clearing space of free speech, in rule of law, originally.

  6. DanaThomas on July 31, 2019 at 5:41 am

    There could be – and I believe there already is – a backlash against all this but don’t think of the “arrests are imminent” meme. But rather people looking into affairs within their milieu. This could be on the municipal level. And for those who (wrongly but understandably) think they just can’t “stomach” politics, there is voting with your wallet and trying to avoid the most patently fraudulent corporations, retailers and web platforms.

    • zendogbreath on July 31, 2019 at 5:49 pm

      Voting with one’s wallet only works as far as the puppet govt does not mandate expenditures. Aren’t mandated vaccines up to like $3,000 per kid now? How well is that vote with your wallet idea going to work with real estate taxes? Or health insurance? Or clean water or food?

      • DanaThomas on August 1, 2019 at 2:39 am

        Even in the USSA there must be SOME disposable income left over (for those who have an income) to decide on how to use…

        • zendogbreath on August 3, 2019 at 12:26 am

          This reminds me of logic tossed out right after 9/11/2001 and the invasion of Afghanistan and just before the Iraq invasion. A few felt the USSA would re-institute the draft which would arouse an anti-war sentiment which would eventually roll back the Patriot Act and all the jingoism. What these folk missed is the economic draft. It’s the same principle here. The economic pressure that’s been kept on the population have kept the population in line everywhere – with and inspite of the horrific demands of remaining in society. I forget what the latest percentage is for USSA folk who are living paycheck to paycheck.

  7. goshawks on July 31, 2019 at 5:16 am

    “Let me issue and control a nation’s money, and I care not who writes the laws.”
    ~ Mayer Amschel Bauer Rothschild, 1744-1812

    The course was set with the establishment of the Fed over Congress’ Christmas break in 1913. All from then has been a gradual usurpation of the host country. With the missing trillions, they are just laughing at us, now…

    Excellent quotations site:

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