BEARER BONDS PART UMPTEENTH: WHAT DO NEW JERSEY AND SAUDI ARABIA HAVE ...
Yes, you read that headline correctly, and no, it is not a rhetorical question: What do New Jersey and Saudi Arabia have in common, and no, it's not "fossil fuels" or Standard Oil of New Jersey nor Exxon nor any other obvious answer. (And our thanks to P.T. and S.D. for providing today's articles that prompted the question.)
The answer is gold. Let's look first at Saudi Arabia, which has been busily buying gold. That's a story in an of itself, but there's also a bit of an interesting "teaser" relating to where that country has been buying it:
Saudi Central Bank Caught Secretly Buying 160 Tonnes of Gold in Switzerland
The beginning of the article says it all, and drops the teasers:
The Saudis have joined other Asian countries in ditching their long-term sensitivity to the gold price. Evidence suggests the Saudi central bank has been covertly buying 160 tonnes of gold in Switzerland since early 2022, contributing to the current gold bull market.
Although the Saudis played a key role in the birth of the global dollar standard in the early 1970s, this time around they might even become a lynchpin for its dissolution.
Clearly, the article is suggesting that the Saudi move is part and parcel of a larger effort of the BRICS bloc aiding their gradual abandonment of the US dollar as a reserve currency. But what I find intriguing is where they've been buying their gold: Switzerland. At one level, this is not surprising since the country is (obviously) a major banking hub and a major bullion trading hub. But there are other less obvious connections that have me wondering just what the devil might really be going on. Regular readers here know that I have been fascinated by the bearer bonds scandals that erupted during the Obama (mis)administration, and then reached out to engulf the British House of Lords with a peer (Baron Blackheath) stating that there appeared to him to be lots of "unaccounted-for gold". (Q.v. my
book Covert Wars and Breakaway Civilizations). All of this was dutifully recorded in Hansard's and makes for interesting reading. So was the press conference that Obama held after the first Italian Bearer Bonds scandal broke out, when a reporter asked Mr. Obama about the capture (or interception) of $134.500,000,000 worth of bearer bonds headed into Switzerland in the false bottom of an attache case being carried by two Japanese businessmen. The bonds were supposedly American, and the denominations of some of the bonds was one billion dollars. There were other peculiarities of those bonds, and I noted them on this website throughout many prior blogs. Just do a search on the website for "bearer bonds scandals" and you'll pull up all the articles I composed. The reporter asking the question pointed out to Obama that the amount intercepted was exactly the same amount of money as was in the TARP (Troubled Asset Relief Fund), leaving a visibly flustered Obama to reply that he was told the bonds were fake, and that the USA never issued bearer bonds in billion dollar denominations.For the moment, I want to remain focused on a peculiar fact that emerged during these various bearer bonds scandals. That fact is that inevitably they were tied to large amounts of missing gold (as was alleged in the British House of Lords by Lord Blackheath) eventually led - if one followed the story - to the Union Bank of Switzerland, and to allegations that large amounts of missing gold - from the Nazis, from Japanese General Yamashita who was charged with secreting large caches of gold recovered by the Japanese Operation Golden Lily in the Philippines during the war, to its partial and covert recovery by the Truman administration after the war, to its use as a secret reserve on which the American intelligence and research community could secretly fund black research and covert operations, and rehypothecate that gold to create liquidity as needed, and on a covert basis. (Oh, by the way, did I mention that some of the gold and funds from all of this made their way into the Vatican Bank? And did I mention that it was a Vatican newspaper that first broke the bearer bonds story?)
Yes, the story is that tangled, but unfortunately, once one digs into it, one discovers that there is a strong prima facie case supporting all of it. My conclusion from all of this was that in the aftermath of World War Two, the United States created a vast and very secret "hidden system of finance", complete with its own system of financial clearing, and bond markets. The system was based almost entirely and completely on analogue clearing, hence, the focus on gold and bearer bonds. In the course of the expansion of this corrupt system, eventually other forms of hard assets were suctioned up by the system: mortgages, other commodities, and so on.
This is a long way around Harvey's Barn to say that I suspect that Saudi Arabia's purchasing of gold in Switzerland may have some very covert purpose, perhaps one of them being to remove some of that endlessly re-hypothecated gold from that hidden system. If so - and it is a very mightily big "if" - it amounts to nothing less than a financial declaration of war on whoever are now the hidden masters of that system.
This way of reading current bullishness on bullion - that it may be very deeply and covertly tied to an assault on that whole hidden system of finance and the covert operations and secret research it was designed to support - gives yet another perspective from which to apprise and assess the recent moves of several American states in the past few years to establish state bullion depositories, and to remove sales taxes on gold and silver, New Jersey being the (unlikely) most recent state to do so:
SIGNED INTO LAW: New Jersey Eliminates Sales Taxes on Gold and Silver
Now I contend that against the backdrop of the bearer bonds scandals and the whole hypothesis of a hidden system of finance (including the recent and deleterious FASAB56 regulations that effectively transformed the whole federal budget into such a hidden system), the moves of these states could be interpreted in one of two basic, and almost diametrically exclusive and contradictory ways: either as an assault on that system and an attempt to disentangle state finances (and pension funds and so on) from that clearly -out-of-control system), or it could be taken as a surrender to it. If is is used to "back" digital currencies, without a physical medium of convertible exchange such as paper certificates of deposit exchangeable for said bullion, then I'd say no, it is not part of that system. But that could easily backfire, and people like Catherine Austin Fitts have been raising quiet warnings about being caught in a bullion trap, and I've raised the specter of deflation on occasion, particularly in connection to the bullion depositories.
The reason is simple. Recall the massive (and seemingly almost endless) deflationary cycle after the American War Between the States, a period that did not really end until Woodrow Wilson signed the Federal Reserve into law during his bottomlessly self-righteous and miserific (mis)administration. (If you gathered from that statement that I put Woodrow Wilson down there in the festering, fetid, and malodorous mud and muck with Franklin Delano Roosevelt and the entire Bush famdamnly and associated ne-er-do-wells like the Cheneys and the Clintons, you'd be correct). But back to the War Between the States. Most readers here are aware that, at a certain point of the Union's war effort, Mr. Lincoln got tired of buying bonds from Jay Cooke, and decided simply to have the Treasury issue debt-free interest-free paper currency via various acts of the Union Congress, which simply declared them to be "legal tender." Needless to say, this caused an inflation, but it also freed up Union specie, and helped finance a massive war effort. But then came the kicker. After the war, the Resumption Act was passed by Congress, which attempted to pull the greenbacks out of circulation by redeeming them in bullion at par. The result was predictable. As the rush began to redeem the greenbacks, the old pre-war "bi-metallic" standard collapsed, because - to put it bluntly - $1000 worth of gold takes up a lot less space and is easier to transport than $1000 worth of silver. Silver was thus de-monetized, and the money supply contracted dramatically, putting farmers into a deflationary squeeze, having to buy seeds on loan, and then sell crops at their maturity some months later in falling prices, and repay loans with dollars worth more than when the loans were subscribed, and so on and on it went, until William Jenning's Bryan's famous "Cross of Gold" speech in favor of the remonetization of silver, a speech that won him the 1892 Populist and Democratic party nomination. (Now if you've caught the faint whiff of other "financial possibilities squatting in the middle of all of this, you'd be correct, but you'll have to wait for the appearance of the new book, The Rialto in Richmond to explore all of that).
My point with all of this speculation is this: we might thus be looking at one of two things, with precious little middle ground for a third alternative. At one end of the interpretive spectrum, we have a war against that hidden system of finance, which was has reached out to engulf certain American states, or we have an attempt to engulf the states and suck them up into that system more completely. For the moment, my guess is the former, for the presence of Saudi gold purchasing agents in Switzerland might be a signal that Mr. Truman's, and the Dulles Brothers', system of hidden finance is beginning to crack and crumble. The surest sign that this may be the case are all those disturbing indicators that the Politburo behind the Bai Den Jao "presidency" are willing to risk a World War with Russia to preserve that system.
Like Dr. Tatiana Koryagina warned in July of 2001, the US was about to be attacked on its own soil by a cabal with assets in excess of $300 trillion dollars... The Russians knew, and perhaps they have been quietly sharing their intelligence with the Saudis and anyone else willing to listen.
See you on the flip side...
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