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: https://www.reddit.com/r/conspiracy/comments/1qnth3/financing_a_breakaway_civilization_a_series_of/

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: https://gizadeathstar.com/2014/04/bearer-bonds-scandals-revisited-attempt-deposit-fake-bonds-thwarted-vatican-bank-part-one/)

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.

Why?

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...