Catherine Austin Fitts Karen Hudes Sterling and Peggy Seagrave David Guyatt Vatican Jesuits and Gold Warriors America's Secret Recovery of Yamashita's Gold and #ChemTrails

June 19, 2016 | Author: sisterrosetta | Category: Types, Government & Politics
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Catherine Austin Fitts Karen Hudes Sterling and Peggy Seagrave David Guyatt Vatican Jesuits and Gold Warriors America...


Catherine Austin Fitts Karen Hudes Sterling and Peggy Seagrave David Guyatt Vatican Jesuits and Gold Warriors: America's Secret Recovery of Yamashita's Gold [Still trying to make this information my own, so to speak. Thank you, Rose] jesuits seagrave Sterling Seagrave Posted 14 November 2008 - 08:59 AM It is an inescapable fact that from the beginning of the US occupation of Japan, General MacArthur, President Truman, John Foster Dulles, and others, knew all about the stolen treasure in Japan and the continuing extraordinary wealth of the Japanese elite, despite losing the war. In an official report on the occupation prepared by MacArthur’s headquarters and published in 1950, there is a startling admission: “One of the spectacular tasks of the occupation dealt with collecting and putting under guard the great hoards of gold, silver, precious stones, foreign postage stamps, engraving plates, and all currency not legal in Japan. Even though the bulk of this wealth was collected and placed under United States military custody by Japanese officials, undeclared caches of these treasures were known to exist.” MacArthur’s staff knew, for example, of $2-billion in gold bullion that had been sunk in Tokyo Bay, later recovered. Another great fortune discovered by U.S. intelligence services in 1946 was $13-billion in war loot amassed by underworld godfather Kodama Yoshio who, as a ‘rear admiral’ in the Imperial Navy working with Golden Lily in China and Southeast Asia, was in charge of plundering the Asian underworld and racketeers. He was also in charge of Japan’s wartime drug trade throughout Asia. Kodama specialized in looting platinum for his own hoard. As this was too heavy to airlift to Japan, Kodama also helped himself to the finest gems looted by his men, taking large bags of gems to Japan each time he flew back during the war. After the war, to get out of Sugamo Prison and avoid prosecution for war crimes, Kodama gave over $100-million in US currency to the CIA. He was also, amazingly, put on General Willoughby’s payroll, and remained on the CIA payroll for the rest of his life, among other favors brokering the Lockheed aircraft deal that became a major scandal for Japan’s Liberal Demopcratic Party. Kodama personally financed the creation of the postwar political parties that merged into the Liberal Democratic Party (LDP), strongly backed to this day by Washington. Both Kodama and his underworld associate Sasakawa Ryiochi, were then involved with the CIA in joint recoveries of Japanese war-loot from the Philippines. On September 2, 1945, after receiving official notice of Japan’s surrender, General Yamashita and his staff emerged from their mountain stronghold in the Kiangan Pocket on Luzon, and presented their swords to a group of U.S. Army officers led by Military Police Major A.S. ‘Jack’ Kenworthy, who took them to Bilibad Prison outside Manila. Because of gruesome atrocities committed earlier by Admiral Iwabuchi Kanji’s sailors and marines in the city of Manila (after Yamashita had ordered them to leave

the city unharmed), the general was charged with war crimes. During his trial there was no mention of war loot. But there was a hidden agenda. Because it was not possible to torture General Yamashita physically without this becoming evident to his defense attorneys, members of his staff were tortured instead. His driver, Major Kojima Kashii, was given special attention. Since Yamashita had arrived from Manchuria in October 1944 to take over the defense of the Philippines, Kojima had driven him everywhere. In charge of Kojima’s torture was a Filipino-American intelligence officer named Severino Garcia Diaz Santa Romana, a man of many names and personalities, whose friends called him ‘Santy’. He wanted Major Kojima to reveal each place to which he had taken Yamashita, where bullion and other treasure were hidden. Supervising Santy was Captain Edward G. Lansdale, later one of America’s best-known Cold Warriors. In September 1945, Lansdale was 37 years old and utterly insignificant, only an advertising agency copywriter who had spent the war in San Francisco writing propaganda for the 0SS. In September 1945, chance entered Lansdale’s life in a big way when President Truman ordered the OSS to close down. To preserve America’s intelligence assets, and his own personal network, OSS chief Donovan moved personnel to other government or military posts. Captain Lansdale was one of fifty office staff given a chance to transfer to U.S. Army G-2 in the Philippines. There, Lansdale heard about Santy torturing General Yamashita’s driver, and joined the torture sessions as an observer and participant. Early that October, Major Kojima broke down and led Lansdale and Santy to more than a dozen Golden Lily treasure vaults in the mountains north of Manila. While Santy and his teams set to opening the rest of these vaults, Captain Lansdale flew to Tokyo to brief General MacArthur, then on to Washington to brief President Truman. After discussions with his cabinet, Truman decided to proceed with the recovery, but to keep it a state secret. The treasure – gold, platinum, and barrels of loose gems – was combined with Axis loot recovered in Europe to create a worldwide covert political action fund to fight communism. This ‘black gold’ gave the Truman Administration access to virtually limitless unvouchered funds for covert operations. It also provided an asset base that was used by Washington to reinforce the treasuries of its allies, to bribe political leaders, and to manipulate elections in foreign countries. It was not Truman’s decision alone. The idea for a global political action fund based on war loot actually originated during the Roosevelt administration, with Secretary of War Henry L. Stimson. During the war, Stimson had a braintrust thinking hard about Axis plunder and how it should be handled when peace came. As the tide turned against the Axis, it was only a matter of time before treasure began to be recovered. Much of this war prize was in the form of gold looted by the Nazis from conquered countries and civilian victims. To eliminate any trace of original ownership, the Nazis had melted it down, and recast it as ingots hallmarked with the swastika and black eagle of the Reichsbank. There were other reasons why the gold was difficult to trace. Many of the original owners had died, and pre-war governments had ceased to exist. Eastern Europe was falling under the control of the Soviet Union, so returning gold looted there was out of the question.

Stimson’s special assistants on this topic were his deputies John J. McCloy and Robert Lovett, and consultant Robert B. Anderson, all clever men with outstanding careers in public service and banking. McCloy later became head of the World Bank, Lovett secretary of Defense, Anderson secretary of the Treasury. Their solution was to set up what is informally called the Black Eagle Trust. The idea was first discussed with America’s allies in secret during July 1944, when forty-four nations met at Bretton Woods, New Hampshire, to plan the postwar world economy. (This was confirmed, in documents we obtained, by a number of high-level sources,including a CIA officer based in Manila, and former CIA Deputy Director Ray Cline, who knew of Santy’s recoveries in 1945. As recently as the 1990s, Cline continued to be involved in attempts to control Japanese war-gold still in the vaults of Citibank.) After briefing President Truman and others in Washington, including McCloy, Lovett, and Stimson, Captain Lansdale returned to Tokyo in November 1945 with Robert B. Anderson. General MacArthur then accompanied Anderson and Lansdale on a covert flight to Manila, where they set out for a tour of the vaults Santy already had opened. In them, we were told, Anderson and MacArthur strolled down “row after row of gold bars stacked two meters tall”. From what they saw, it was evident that over a period of 50 years (1895-1945) Japan had looted many billions of dollars in treasure from all over Asia. A far longer period than Germany had to loot Europe. Over five decades, Japan had looted billions of dollars’ worth of gold, platinum, diamonds, and other treasure, from all over East and Southeast Asia. Much of this had reached Japan by sea, or overland from China through Korea. What was seen by Anderson and MacArthur was only some of the gold that had not reached Japan after 1943, when the US submarine blockade of the Home Islands became effective. From this it is obvious that what was looted by Japan on the Asian mainland from 1895-1943 had reached Japan and been tucked away there in what the US Army statement called “undeclared caches of these treasures ... known to exist” . Far from being bankrupted by the war, Japan had been greatly enriched, and -- thanks to Washington’s intervention -- used this treasure to rise like a phoenix from the ashes, while its victims struggled on for decades. The gold recovered in the Philippines was not put in Fort Knox to benefit American citizens. There has been no audit of Ft. Knox since 1950. According to Ray Cline and others, between 1945 and 1947 the gold bullion recovered by Santy and Lansdale was discreetly moved by ship to 176 accounts at banks in 42 countries. The gold was trucked to warehouses at the U.S. Navy base in Subic Bay, or the U.S. Air Force base at Clark Field. Preference went to the U.S. Navy because of the weight of the bullion. Secrecy was vital. If the recovery of a huge mass of stolen gold became known, the market price of gold would plummet, and thousands of people would come forward to claim it, and Washington would be bogged down resolving ownership. The secrecy surrounding these recoveries was total. Robert Anderson and CIA agent Paul Helliwell traveled all over the planet, setting up these black gold accounts, providing money for political action funds throughout the noncommunist world. In 1953, to reward him, President Eisenhower nominated Anderson to a Cabinet post as secretary of the Navy. The following year he rose to deputy secretary of Defense. During the second Eisenhower Administration, he became secretary of the Treasury, serving from 1957 to 1961. After that, Anderson resumed private life, but remained intimately involved with the CIA’s worldwide network of “black banks”, set up by Paul Helliwell. Eventually, this led to Anderson being involved in the scandal of BCCI, the Bank of Credit and Commerce International, a

Pakistani bank with CIA ties. No one made better use of the recoveries than Lansdale. For his role in enabling the Black Eagle Trust, Lansdale became the darling of the Dulles brothers and their Georgetown coven, which included key officials in the CIA during the years it was run by Allen Dulles. Writing to the U.S. Ambassador in Manila, Admiral Raymond Spruance, Allen Dulles called Lansdale “our mutual friend”. In the early 1950s, Allen Dulles gave Lansdale $5-million to finance CIA operations against the Huks, rural peasant farmers fighting for land-reform in the Philippines. When he sent Lansdale to Vietnam in 1954, Dulles told Eisenhower he was sending one of his “best men”. In the late 1950s, he was in and out of Tokyo on secret missions with a hand-picked team of Filipino assassins, assassinating leftists, liberals and progressives. Lansdale was also close to Richard Nixon, and headed efforts to assassinate Cuba’s Fidel Castro. Without exception, Lansdale’s Asian adventures were costly failures. But Washington’s effort to boost the LDP in Japan was a big success. Long time Tokyo correspondent Robert Whiting described “a secret billion-dollar slush fund … equivalent to nearly 10 percent of Japan’s 1950 GNP. ... The Japanese government also sold [on the blackmarket] great stockpiles of gold, silver and copper …which they had concealed in early 1945 in anticipation of Japan’s defeat.” vatican 1954 treaty gold launder biotoxin HOLY SMOKE & MIRRORS By David Guyatt Albert Vincent Carone is one of those people who spent his life dancing between raindrops and turning invisible wherever a shadow lingered. He existed and also didn’t exist. Al Carone - unlike his near namesake, Al Capone – truly was a paradox wrapped in a mystery concealed behind an enigma. Carone was a detective in the New York Police Department, but this didn’t stop him from becoming a “made” man in the Genovese crime family. He knew all the leading Mafiosa of his day, including Vito Genovese, Sam Giancana, Santos Trafficante, Joe Colombo and Pauley Castellano amongst others. To Carone’s daughter, Dee, they were all known as “Uncle.” When she got married, her father arranged two different reception rooms to separate the “mob” guests, from the NYPD guests. But this was more window-dressing than anything else. One of Carone’s principal functions in the NYPD was to act as the “bagman” in protecting shipments of CIA drugs to the various Mafia families. Carone died in 1990 under mysterious circumstances. This followed a period of great personal disenchantment with his life following a secretive mission to Mexico in 1985 when a large number of innocent women and children died unnecessarily. His death was horrific, reports Mike Ruppert, editor of “From The Wilderness” newsletter, who has investigated Carone’s life story and written a special report on it (see acknowledgements). Meanwhile, another “Uncle” was Bill Casey, the former Director of the CIA during the Reagan administration. Casey had been with the OSS during WW11. During the “seventies” he became Chairman of the Securities & Exchange Commission (SEC) that regulates the US investment industry. During his tenor in that role, Casey used Carone as a “cut-out” to pass sensitive insider information to mob Capo, Pauley Castellano, says his daughter, Dee. Carone was also a full Colonel in the US Army where he had operated in the Army’s Counter Intelligence Corp (CIC). Unsurprisingly, in view of his close friendship with Bill Casey, he was also a covert operative for the CIA. But that wasn’t half of it. Carone was also a Grand Knight of the Sovereign Military Order of Malta (SMOM) – which historically has been the military arm of the Vatican and is regarded as separate “state” with full powers of statehood including issuing its own diplomatic passports. In more recent decades SMOM has acted as a funding conduit, a black market gold channel and money-laundry for the CIA, amongst others – and is known to act as the Vatican’s intelligence arm. It was, for example, alleged to be involved in the disappearance of Russia’s gold reserves – over 2000

metric tonnes - that vanished during 1991, around the time that Soviet Premier Mikhail Gorbachev was ousted from office. Malta knighthoods are awarded to many leading individuals who are part of the military and intelligence community. The CIA’s Bill Casey, for example, was Knight of Malta. Former NATO General (and later US Secretary of State) Alexander Haig is also a Malta Knight. Another is General Vernon Walters, the former Deputy Director of the CIA under DCI George Bush and later appointed a roving Ambassador during the Reagan administration. The legendary head of the OSS – the WW11 precursor of the CIA – was “Wild” Bill Donovan, who was made a Knight along with his wartime compatriot and later CIA chief of counter-intelligence, James Jesus Angleton. And John McCone, another prominent member of the US “spook” agency was also distinguished with a Malta knighthood. The list goes on. Most interesting was Reinhard Gehlen the former Nazi intelligence expert recruited by the US in 1945-46 to head the “Gehlen Org” – a secret German-based intelligence arm of the United States that was composed of former SS & Gestapo agents – many of whom, including Klaus Barbie, were wanted Nazi war criminals. The foregoing names amount to a listing of some of the most powerful and influential members of the western intelligence community over the last five decades. One Vatican group that has extremely close ties to the Knights of Malta is the ultra right wing Opus Dei. This is an immensely powerful faction in the Vatican today, whose public “do good” activities eclipse a plethora of the darkest political and financial machinations known to man. It will not come as a surprise, perhaps, that Carone was closely associated with Opus Dei and, in particular, a covert operation that had its origin back in 1944. This was Operation Amadeus. THE DULLES FACTOR This highly secretive operation was part of the Operation Sunrise negotiations conducted between Allen Dulles – the then senior wartime OSS officer in Switzerland, but later to become the Director of the CIA – and SS General Karl Wolff. This debonair and well-connected SS officer commanded the SS and Gestapo contingents in Italy at the time. The result of these negotiations (at least those parts that are now known about) was an agreement affording amnesty to an extensive roster of SS-Gestapo forces - in exchange for their agreement to shift their allegiance to the West in the pre-planned covert battle aimed at defeating the Soviet communist “menace.” In other words the “cold war.” One spin-off of these Dulles-Wolff arrangements were the Vatican run “rat-lines” that aided wanted Nazi war criminals to slink to safety. Tens of thousands of SS and others Nazi’s escaped capture as a result of the ratlines. These included such figures as Franz Stangl, commandant at Treblinka extermination camp and his friend, Gustav Wagner, who ran the Sobibor death camp. Others to escape in this manner included Adolf Eichmann, the architect of the Holocaust. Eichmann was later captured by Israeli intelligence agents, smuggled to Tel Aviv where he stood trial and was eventually executed. In comparison, Dr. Joseph Mengele – known as the “White Angel” – a war criminal wanted for his cruel and inhuman experiments on death camp inmates at Auschwitz, escaped to Argentina and lived a long life. Operation Amadeus was exclusively concerned with the flight of SS and Nazi war criminals to the South American continent and their later ferocious covert actions against the indigenous populations justified under the banner of “anti-communism.” One individual engaged in Amadeus activities was former Gestapo officer, Klaus Barbie, known to the world as the “Butcher of Lyon.” The principal means of funding Operation Amadeus activities was the hugely profitable narcotics

business. Large stocks of SS Morphia had been smuggled out of Europe and into “catholic,” South America at the end of the war in accordance with the “Sunrise” agreement. The Morphia was accompanied by looted SS gold and large quantities of counterfeit British banknotes forged in concentration camps by captive but skilled counterfeiters as part of an SS scheme known as “Operation Bernhardt.” The escape “lines” used to move wanted men around South America away from the prying eyes of Israeli agents also proved ideal as smuggling routes for drugs. Decades later the stocks of Heroin smuggled to the United States for distribution by the CIA protected Mafia, would be complimented with locally grown Cocaine. One of the figures to emerge in to the spotlight during the 1980’s who was deeply involved in this narcotics traffic was Colonel Oliver North – who authorised the exchange of guns for drugs to finance Contra operations. Oliver North was known to Al Carone under his “work” name, “John Caffrey.” This was the time when Carone was engaged in CIA controlled cocaine transactions with Joe “Pickles” Percilia, a member of the Columbo crime family. These curious and usually concealed connections between governments – in the form of the military and intelligence community – organised crime, the Vatican and Nazi war criminals have some significant history. Not least was the secret agreement reached between US Naval intelligence officers, and Mafia don, Charles “Lucky” Luciano, during WW11. This resulted in the Mafia’s decision to aid and assist the Allies by contacting mob figure, Vito Genovese, in 1943 to prepare the way for the Allied landing in Sicily. As earlier outlined, it was primarily those SS-Gestapo units located in Italy under command of SS General Wolff that were initially concerned in the Operation Sunrise negotiations. And while large numbers of former Nazi’s were fleeing south to fight the communist menace is Latin America – and, more importantly, to personally profit from their involvement in the lucrative drug and gun business - in Europe, the spadework was being laid to overthrow, or thwart, democratically elected governments via a network of fascist-manned “Stay Behind Units,” organised under the aegis of Operation Gladio. Not surprisingly this would also lead to certain involved figures making personal fortunes out of other people’s misery – a circumstance that is so common-place it is barely worth mentioning. These neo-fascist activities would come to prominence in the early eighties following the collapse of Banco Ambrosiano and the death of Italian banker, Roberto Calvi who was “suicided” and left hanging under London’s Blackfriars bridge. This would lead to sensational disclosures about the role of the Vatican bank, the IOR, in Calvi’s financial empire and would quickly grow to include the activities of Mafia financier, Michele Sindona – who’s activities, in turn, would implicate leading blue-blood banks in Europe and America in Mafia activities. Both Sindona and Calvi were close to Opus Dei who lost around $55 million when Sindona’s empire crashed. According to his family, Roberto Calvi was deeply engrossed in helping Opus Dei take control of the IOR when he was killed. Meanwhile, both Calvi and Sindona were members of the secretive Propaganda Due (P2) Masonic lodge, that is said to have been a “parallel government” in waiting and which planned to effect a coup d’etat in Italy following a communist party victory at the polls. P2 was run by former Italian fascist and member of the Nazi SS, Licio Gelli – dubbed the “Puppet Master” by the Italian press. Gelli’s connections to the ultra hard right and fascists in Europe and Latin America were extensive. In fact, he had been deeply involved in establishing the Vatican run Ratlines that aided the worst Nazi war criminals to escape Allied justice at the end of WW11. All told an estimated 50,000 Nazi’s were helped to freedom.

Gelli had numerous powerful friends including former Italian dictator, Benito Mussolini. He was also a personal friend of Argentina’s General Juan Peron and his close associations with Argentina would later lead him to be a key figure in shipping a supply of French made Exocet missiles to sink British Task Force ships during the Falklands war. In this endeavour he worked closely with Ronald R Rewald, founder of the Hawaiian based financial institution Bishop, Baldwin, Rewald, Dillingham & Wong – a CIA proprietary company and forerunner of the CIA owned Nugan Hand bank. The involvement of a CIA front company engaged in financing and providing weapons to be used against a key American ally (Britain) that had the whole-hearted public support of the US government, may seem somewhat duplicitous. However, in the world of “black ops” “friends” and “enemies” are interchangeable words and working both sides of the fence is accepted practice. In terms of hierarchy, Gelli reported to Umberto Ortolani, described by one writer as “the great Vatican door opener” and a “secret chamberlain of the Papal Household.” In addition to his P2 connections, Ortolani is also a member of the inner council of the Knights of Malta and has military intelligence connections that date back to WW11. THE OCTOPUS AND THE SPIDER There are numerous other Masonic groups and secret societies in Europe that move in and out of focus at various times. Almost all of them are catholic in nature. One of these is the Priory of Sion – a secretive order that first came to public attention in the best selling book “Holy Blood – Holy Grail,” published in 1982. The Priory is closely connected with the alleged treasure of Solomon that is said to have found its way to the small village of Rennes Le Chateau in south western France where it is said to have been buried by the Knights Templars; forerunners of the Knights of Malta. The Priory, whose headquarters were located at Annemasse, near Geneva on the Swiss border, are styled as the “Guardians” of Solomon’s treasure but most interestingly, they have numerous subterranean connections to fascists and those on the far right that date back to WW11. Meanwhile, it has to be noted in passing, that Annemasse is said to have been the centre for the anti-communist “Stay Behind” units of Operation Gladio. If this is not intriguing enough, another fact stretches co-incidence to the point of bursting. In recent years the Priory of Sion has moved its headquarters to Barcelona and now boasts a Spanish Grand Master. This, one could conclude, is to enable it to be physically closer to the historical heartland of Opus Dei, which was founded in Spain in 1928. If Otto Skorzeny was a leading force in running the SS Brotherhood escape routes (Der Spinne – the Spider) after the war, and SS General Karl Wolff was the lead negotiator with OSS Swiss Chief, Allen Dulles, then another Nazi, Walter Rauff - head of the Milan SD - was one of two liaisons with the Vatican involved in the establishment of the Nazi smuggling system. Earlier in his career, Rauff had overseen the development of the Nazi mobile gas vans, known as “Black Ravens” that gassed to death around 100,000 Jews – mostly women and children - by pumping exhaust fumes into the back of a hermetically sealed van. Another important link between the Vatican and SS escape routes was Friedrich Schwendt, who was also the man in charge of laundering forged SS banknotes. Before the war, Schwendt was an international arms dealer shipping weapons to China and Russia. He was also the investment manager

of the family fortune of his first wife’s aunt, Baroness Gemmingen-Guttenberg, of the vastly wealthy Argentine based Bunge family of the massive transnational firm Bunge Corporation that is also known as the “Octopus.” This title is interesting for it may connect to the so called “Octopus” that ties-in to murdered Freelance journalist, Danny Casolaro who at the time of his death was investigating a number of high level illegalities including the theft by the Department of Justice, of a “tracking” computer programme known as PROMIS. Casolaro was writing a book about what he had discovered. He originally titled it “Behold, a Pale Horse” but later modified it to “The Octopus.” In a draft page of the book he described this group as an: “international cabal who freelance services covered parochial political intrigue, espionage, sophisticated weapon technologies that included biotoxins, drug trafficking, money laundering and murder-for hire.” Casolaro further stated that this cabal had its origins “spawned thirty years ago in the shadow of the cold war.” After Casolaro’s death, journalist Carol Marshall (a pen name) followed up his investigation and wrote an [as yet] unpublished manuscript titled The Last Circle. In this, Marshall describes her investigation of Robert Booth Nichols – one of the central figures of the Octopus whom she describes as being part of a secretive group known as “The Chosen Ones” and who wore “skull and crossbones rings, and shared a common interest, if you could call it that, in the old German SS occultism, its tribal and inner circle rites.” During her continuing investigation into the Octopus, Marshall found that the SS occultism outlined above was connected to Lt. Col. Michael A. Aquino, a former US “Green Beret,” who is a self professed Satanist – and who held a top secret security clearance for his work in military intelligence and on classified psychological warfare matters. Aquino officiated at SS black magic ceremonies held at Wewelsburg, the Castle once used by SS chief Heinrich Himmler to create an SS order of Teutonic Knights based on the Knights Templars. The foregoing connections lend themselves to a larger picture of global interlocking right wing fascist groupings that operate in the shadow-land of deniable military and intelligence operations associated with profit during WW11 and, later, throughout the cold war. In this respect it is intriguing to note that the Priory of Sion, one of the foremost Catholic groups under discussion use as a symbol something that is variously described as an octopus or a spider (l’araignee) on their documents. The Priory association with the octopus could easily relate to the so-called “Octopus” described above where organised crime work hand in glove with operatives from US intelligence and the military. If one decides, on the other hand, that the Priory symbol is a spider, there is the intriguing notion of the Vatican run Nazi escape lines of Austrian Catholic, Otto Skorzeny – and his SS Brotherhood’s “Der Spinne” – the spider. THE BUSINESS OF GOD Al Carone was, as mentioned earlier, a “made man” of the Genovese mob in addition to his other associations. It is curious, therefore, to note that one of the leading lights of the “Octopus,” according to writer, Carol Marshall, was ultra right-wing oil tycoon, Clint Murchison – owner of the Dallas Cowboys football team. Murchison’s oil company, “Murchison Oil Lease Company” was 20% owned by Gerardo Catena, the chief lieutenant of the Genovese crime family.

Throughout the second world war and thereafter there was, according to author Charles Higham, in his book “Trading With The Enemy,” a “general agreement of certain major figures of American, British and German commerce to continue their relations and associations after Pearl Harbour.” Higham adds that he had also learned that “certain figures of the warring governments had arranged to assist in this [activity].” Higham’s subsequent research proved the existence of this high cabal that he dubbed “The Fraternity” not only existed but benefited handsomely throughout WW11. This led the author to ask: “What would have happened if millions of Americans and British people, struggling with coupons and lines at the gas stations, had learned that in 1942 Standard Oil of New jersey managers shipped the enemy’s fuel through neutral Switzerland and that the enemy was shipping Allied fuel? Suppose the public had discovered that the Chase Bank in Nazi-occupied Paris after Pearl Harbour was doing millions of dollars’ worth of business with the enemy with the full knowledge of the head office in Manhattan? Or that Ford trucks were being built for the German occupation troops in France with authorisation from Dearborn, Michigan? Or that Colonel Sothenes Behn, the head of the international American telephone conglomerate ITT, flew from New York to Madrid to Berne during the war to help improve Hitler’s communications systems and improve the robot bombs that devastated London? Or that ITT built the Focke-Wulfs that dropped bombs on British and American troops? Or that crucial ball bearings were shipped to Nazi associated customers in Latin America with the collusion of the vice-chairman of the U.S. War Production Board in partnership with Goring’s cousin in Philadelphia when American forces were desperately short of them? Or that such arrangements were known about in Washington and either sanctioned or deliberately ignored?” Higham’s “Fraternity” has similar characteristics to the so-called “Octopus” and also shows certain similarities to Colonel Oliver North’s “Enterprise.” All have engaged in the most dubious and illegal activities for profit and all operate hand in glove with organised crime. All lean so far to the right, ideologically speaking, that the word “fascist” can be used without reservation. Meanwhile, none of them care very much for the woes of humanity and, indeed, appear committed to stomping on ethics and moral values wherever they meet them. The Octopus – or “Oct Opus” as one European documentary film producer renders the spelling when referring to Opus Dei (which began life on 2 October 1928) - has eight arms that surround its mouth (ensuring a constant supply of food) and three hearts and is not, therefore, conducive to starving or dying. But it can also be identified by these oddities. Opus Dei, the group that are now in control of the Vatican are undoubtedly one arm of this global criminal network, in this writers view. Or are the three hearts of the Octopus more vital to identify? Could they be analogous to the “Church, State, and Mafia, the forces that prevail beneath the play of the shadows of the world…” as described by Nick Tosches in his book “Power On Earth” that tells the life story of murdered Mafia financier Michele Sindona? There is yet another interesting twist to this accumulation of associations: Prince Bernhard of the Netherlands. The prince was the founding chairman of the publicity shy western power elite, the Bilderbergers. This shadowy and secretive group meet over a weekend in May each year under an almost total media blackout. Powerful and very influential figures from the world of banking, business, politics, the media, trades unions and academia are invited. Included regularly, for example, are Dr. Henry Kissinger, David Rockerfeller, Italy’s kingmaker Gianni Agnelli and other illustrious figures. The first meeting took place in May 1954.

This, strangely, was the same year that Prince Bernhard became head of the Johanitter Orde in Nederland, one of four Orders that make up the Chivalric Alliance of Orders of Saint John (Alliance de Chevalerie des Hospitaliers de Saint Jean de Jerusalem). The stated purpose of these four, known as the “Alliance” that are composed of North European nations (Germany, Nederland, Sweden and Great Britain (the latter being an ancient order known as the “Most Venerable Order”) is to:” to reduce to silence the enemies of Christ." The headquarters of the Alliance is located in Switzerland. These are protestant orders rather than catholic, but it is of significance that 26th November 1963, the Alliance was “consolidated with the signing of a joint declaration between the Sovereign Military Order of Malta and the Most Venerable Order, at St John's Gate, London, by the Grand Chancellor of the SMOM, the Prince of Resuttano, and Lord Wakehurst, Lord Prior of the Most Venerable Order.” In other words the Catholic and Protestant Orders bound themselves to work together to “silence the enemies of Christ” – a clear reference to Communism. Interestingly, it has been suggested that the Knights Templars were “infected” with the Johannite or Mandaean heresy that denounced Jesus as a “false prophet” recognising, in his place, John the Baptist, as the true Messiah. Meanwhile, two early Grand Masters of the Prieure of Sion are said to have had Johannite tendencies. These were Leonardo Da Vinci and Sir Isaac Newton. Not-with-standing that, the famous founder of the Knights Templars, Hughes de Payens has been accused by the Vatican to have been a Johannite. Leaving aside this brief foray into esoteric history it is as well to note that Prince Bernhard, in addition to his Bilderberg role and as head of the Dutch Johannite Order was also an honorary member of Himmler’s SS and worked in NW7 the global intelligence arm of I.G. Farben that acted in the interests of the Nazi cause. The activities of NW7 in Latin America before, during and after WW11 deeply interweave with this story. In facilitating and aligning itself with many of the foregoing activities, the Vatican aimed to help eradicate a communist ideology that despised Christianity. Opus Dei and a host of other Catholic-cumfascist secret groups engaged in a litany of murder, money laundering, drug peddling, arms trafficking, concealing WW11 loot, embezzlement, manipulation of financial markets and many other consummate illegalities. The purpose of all these activities was, arguably, to allow the Vatican to remain the spiritual bulwark of the Christian west. But if such business is the business of a church preaching of a God in Heaven, then Cesar on earth had better watch out… a new landlord has fallen into town. ENDS Acknowledgements: The foregoing essay drew from an indispensable group of published work listed as follows. 1) A full account of the unique story of Al Carone, by Mike Ruppert, is available to order online at 2)

Trading With The Enemy – Charles Higham (St. Edmundsbury Press – Suffolk -1983)


Their Kingdom Come – Robert Hutchison (St. martin’s press – new York, 1997)


Web of Gold – Guy Patton & Robin Macness (Sidgwick & Jackson – London, 2000)


Ratlines – Mark Aarons & John Loftus (Mandarin, London 1991).


The Bormann Brotherhood – William Stevenson (Arthur Baker – London, 1973).

7) Unpublished Manuscript by Peter Dale Scott on Barbie, Dulles and Operation Sunrise and which details how the OSS-SS preserved each other while serving their true masters – transnational corporations. 8) The Last Circle – an unpublished manuscript by Carol Marshall that investigates the so called “Octopus.” 9) My thanks also go to Catherine Austin Fitts ( for her invaluable help. THE SPOILS OF WAR The Secret Story of WWII Japanese & Nazi Gold By David Guyatt copyright 2002 for The use of suspect gold to launder drug profits is well established. One example of such laundering activities concerns a rogue airline that had the reputation of flying anything to anywhere. Over a twoyear period between 1989-91, the airline made four flights carrying gold bullion weighing 160 tonnes with a market value of two billion dollars. Each of the four flights carried boxes with twelve bars of gold to a box that overall weighed 41 tonnes per flight. All the boxes were palletised for easy loading and accompanied by a guard. The flights originated from Medellin, Columbia, and were airlifted to London and apparently cleared both ends without customs inspection. [1] The amount of gold shipped was more than the gold reserves of most central banks. The question then arises: where did this gold originate? The likelihood is that it was part of the vast amounts of gold plundered in WWII by the Axis powers. The story about what really happened to the loot plundered by the Nazis and Japanese during WWII remains one of the best-kept secrets of the last fifty years. Few outside of the charmed circle of initiated insiders possess any knowledge whatsoever of the true dimensions of what can be described as the biggest cover-up of all time. But it is not just public awareness of what exactly “happened” to this plunder in the post war years that is the cause of supreme unease amongst the powers that be. It is the sheer magnitude of treasure forcibly confiscated by the Axis powers that causes trepidation. Were the actual dollar numbers involved to be revealed, it would lay bare an even more sensitive secret – one that has endured for a hundred or more years. A decades long propaganda campaign had served to focus public attention on the gold stolen from governments – known as monetary gold – as a means of eclipsing from public view far larger amounts of privately held gold that was also stolen. The heavy cloak of disinformation and double-talk had still another layer. By putting the spotlight on Nazi plunder from the very beginning, public attention was diverted away from the industrial scale looting undertaken by Japan’s special plunder teams known as the “Golden Lily.” And it is here that the real story dwells.

THE PRINCE OF PLUNDER History should have recorded him as the world’s most ruthless and avaricious bandit of all time. Instead, it has passed him by virtually unnoticed, thanks to the onset of the cold war and the well-laid designs of western elites. Prince Chichibu was the younger brother of Japan’s Emperor Hirohito and had been named by the Emperor to head the ultra-secret Golden Lily – a secretive group tasked with looting China of its wealth – both government and privately owned hard assets. Beginning in 1937, with the Rape of Nanking, the plunder teams set to work with a vengeance. The spoils were far larger than had been imagined. It is believed that 6,000 metric tonnes of gold, plus a bounty of silver and precious gemstones fell in to the hands of Japan’s imperial treasury as a consequence. [2] The phenomenal wealth of East and Southeast Asia had accrued over thousands of years and Japan wanted it all. Over the next seven years the Orient was wrung dry of its precious metals, solid gold religious artefacts and an unbelievable quantity of gemstones. Most of this was shipped by the Japanese to the Philippines as a collecting point, for onward shipment to Tokyo. However, by 1943 the sea-lanes had been cut by US submarines and the decision was taken to bury the plunder throughout the Philippines. This was based on Japan’s expectation of a negotiated truce that would leave them ruling the Philippines. Thereafter, the recovery of the plunder could take place in secret over many years making Japan one of the wealthiest nations in the world. That, however, was not to be. The United States had its own well-laid plans to become the imperial world power of post WWII. These plans had been formulated before the Second World War by The Council on Foreign Relations an organisation founded by wealthy Americans in the wake of WWI, in tandem with England’s Royal Institute of International Affairs, known as “Chatham House” for short. The CFR plan called for a “Grand Area” that was to come under US control. Included was the Western Hemisphere, Western Europe, the Far East and the former British Empire. The latter was being actively dismantled for this purpose. Also listed was the Middle East, whose colossal oil resources were eyed with great passion. In fact, if it was possible to achieve, the entire planet was to come under US domination. [3] In this scheme, Japan and Germany were assigned the role of the “great workshops” of productivity. In short, there was no place for a separate imperial power and Japan (and Germany) had to be thoroughly defeated. Roosevelt’s call for “unconditional surrender” of the Axis powers not only smashed Japan’s comfortable view of what would be, but also sealed the fate of the post WWII world. In addition to the Philippines, treasure plundered by the Japanese is believed to have been stashed in Indonesia and, probably Korea, too. But the Philippine Islands were the key. Here treasure sites were excavated – usually using prisoners of war as slave labour. The plunder was then stashed in these sites and booby traps were set to deter would be treasure hunters. With the prisoners of war still inside the sites were sealed and disguised – leading hundreds to die a grisly death in the name of greed and secrecy. THE BLACK EAGLE FUND

The quantity of gold and other treasures buried was phenomenal. Japanese cartographers made maps of each site and trusted accountants marked them with three digits signifying the Yen values of the gold, diamonds and other assets buried in each. A site bearing the designation “777” was valued at 777 billion yen. With 1945 exchange rates fluctuating between 3.50 and 4.00 yen to the dollar, just one triple seven site was worth almost US$200 billion – a king’s ransom by any measure. There were many triple seven (“777”) sites as well as triple nine and lesser sites. Not only were these figures based on 1945 values -- when a dollar was really a dollar – but also when the price of gold was $35.00 an ounce. Today the price of gold is closer to $300 an ounce. But add to this the fact that in the Philippines alone there were over 170 burial sites, and a picture forms of a wealth so unimaginable that it almost defies belief. [4] With the defeat of Japanese forces in the Philippines in 1945, a project of the utmost secrecy was launched to recover the buried Golden Lily plunder. This project was placed under the day-to-day control of Captain Edward Lansdale and OSS operative Severino Garcia Santa Romana. In 1945, Lansdale had been ordered to Manila as part of General Willoughby’s G2 military intelligence team. On arrival, Lansdale met up with Santa Romana and set to work. The CIA would later recruit both officers. Over the next few years numerous plunder sites were located and the stolen assets recovered. The gold, gemstones and other treasure were deposited in over 170 bank accounts spread across more than forty countries – all of whom were signatories of the 1944 Bretton Woods agreement. Collectively, the recovered loot came to be known as the Black Eagle Trust or fund. Even to this day the mere mention of the Black Eagle Fund causes unease, and the entire subject remains cloaked in official secrecy. For example, during a 1999 discussion on this subject, one highly placed banker familiar with the existence and arrangements of this slush fund cautioned: “if you wish to discuss certain aspects of military program finance on the internet, you may be doing so in contravention of several statutes and regulations, both in the United States and in any NATO-member jurisdiction.” A RARE LIE According to official figures, the present volume of above ground gold stocks is approximately 142,000 metric tonnes. This, it is claimed, accounts for all the gold mined over six thousand years. [5] In contrast to these figures, just one of the many “777” Golden Lily sites would have held, using a conservative estimate, upwards of 90,000 metric tonnes. [6] Clearly, official figures don’t remotely begin to mesh with the volumes of “black gold” stolen by the Axis powers. One major reason for this is simply that the official statistics have never included gold production in China, Southeast Asia and the former Soviet Union. Since the latter was the world’s second largest gold producer after South Africa, this was bound to distort the accuracy of official statistics. Curiously, despite the end of the cold war no apparent effort has been made to “update” these figures following access to strategic information of the former Soviet Union, who is now a member of the powerful G8 group of nations. Meanwhile, China and the Orient have had a love affair with gold dating back 6,000 years. This obviously had to come from somewhere.

Is it really possible that the official gold mining figures are just so much flim-flam, designed to hide the real picture? Could a conspiracy so flagrant and so large be perpetrated under the noses of an unsuspecting public? To answer these questions we need do no more than hop across the street to gold’s sister market -diamonds. Diamonds are said to be rare which accounts for their value. But like gold, they are not nearly so rare as we have been told. One example of their abundance is the Argyle mine in Australia, which was discovered in 1979. The mine was estimated to have over one billion carats – the majority of which were of gem quality. This is in stark contrast to South Africa’s entire diamond reserves of 200 million carats noted in a 1980 US Geological Survey. Diamonds may be a “girls best friend” but that is about as far as it goes. As a true store of value in a true and unfettered free market, diamonds would be worth considerably less. What keeps the value high is the restricted access to gem quality stones which are rigidly controlled by the “cartel.” The cartel is thought to be controlled by the South African Oppenheimer family and De Beers, via the London based Central Selling Organisation or CSO. [7] Any one person or group that has a stranglehold on gold, platinum and diamonds also has a strategic stranglehold on world commerce. Industrial diamonds are the backbone of productive industry and without adequate supplies of these, production would grind to a halt. Such a situation came close to happening during WWII. In a Washington Post article on 18th October 1988, former director of the CIA accused De Beers and the Oppenheimer family of refusing to sell the US a large quantity of industrial diamonds necessary for war production. In a 2nd November 1988 letter, Sir Phillip Oppenheimer retorted angrily to these charges calling them “unsubstantiated.” Documentary filmmaker and author, Jani Farrel-Roberts, has exhaustively investigated the diamond trade for many years and undertook to discover what truth, if any, lay behind Admiral Turner’s astonishing allegations. Access to government documents under the Freedom of Information Act as well as extensive interviews with attorneys who had spent years investigating De Beers on behalf of the US government convinced her that De Beers had indeed “…rationed diamonds supplies to the United States, depriving it of essential war tools at a time when De Beers had ample diamonds to supply all Allied needs. [8] But more shocks were to come. Unearthed in the mounds of declassified documents obtained by Farrell-Roberts was a highly sensitive report on a secret British American investigation detailing how Hitler’s Germany acquired all the industrial diamonds it needed for its own war effort. Completed in 1944, the report concluded that the Nazi’s were getting their diamonds from the same syndicate that supplied the Allies. Major A. W. Schmidt, the senior US investigating officer, stated in the report that this trade was protected by senior officials in the British Governments Ministry of Economic Warfare and accused these officials of being treasonous and of prolonging the war. [9] Schmidt additionally reported that measures taken to curtail the flow of diamonds to Germany were “…sabotaged, not by the British Government, but by the representatives of the Diamond Trading Corporation in London through their domination of the Diamond Committee of the MEW [Ministry of Economic Warfare].” [10]

THE PRIORY OF SION EXPLAINED? the Minister of Economic Warfare during this period [1942-5] was Lord Selborne. Amongst his other associations, Selborne was a member of the top level “circle of initiates” of the secret society formed by South African gold and diamond magnate, Cecil Rhodes – who founded De Beers. Following Rhodes death this powerful and secretive group was run by Lord Alfred Milner with Lord Selborne in the deputy leader slot. [11] . Following Milner’s death in 1925, he assumed the leadership of the “group.” Among his other wartime duties he headed Churchill’s Special Operations Executive (SOE). Lord Selborne would later come to the attention of millions of readers of “The Messianic Legacy,” the best selling sequel about the mystery of treasure hidden in Rennes le Chateau in the French Pyrennes. This story was first brought to public attention in the smash selling book “Holy Blood – Holy Grail” by the same authors. Lord Selborne was identified as one of the principals who in 1956, applied for export licenses of ancient parchments said to directly relate to the Rennes le Chateau mystery. [12] Did this mysterious treasure really have ancient roots or was it of a more contemporary origin? There are good reasons to believe it may rather have been part of the gold plundered by the Nazi’s that was being buried, rather than ancient loot being dug up. Nazi loot would certainly account for Lord Selborne’s interest in these matters and would also bring in to sharp focus the August 1956, date mentioned above. Just months earlier in May 1955, the Federal Republic of Germany had recovered it’s sovereignty, following the cessation of Allied military rule. Consequently, the outflow of plunder and assets orchestrated under the Nazi capital flight programme “Operation Eagle’s Flight,” was put into reverse gear by Reichsleiter Martin Bormann. This soon resulted in a massive influx of capital into the newly risen Germany. More than anything else, this is believed to account for Germany’s miraculous post war recovery. [13] Behind Bormann’s programme of repatriating Nazi assets was the idea, developed in 1943, of using them in a confederated post war Europe under Germany’s covert control in what was even then called a “European Economic Community” or EEC. [14] Even though this pre-dated the actual foundation of the EEC in March 1957, it was not a new idea. Half a century earlier in 1899, W T Stead, a close confidant of Cecil Rhodes, had authored a book titled “The United States of Europe” along with “The Americanisation of the World.” [15] Since these are issues that remain current a century later, one cannot help but acknowledge the foresight of Stead and Rhodes and also wonder if Bormann was part of this overall strategy – knowingly or not? Bormann was not a Rhodes scholar but some influential Germans of that period were, and others had close affiliations with members of the secret society founded by Rhodes who formed the ruling elite of England during the war years. [16] Normally regarded as Anglo-American in tone, the Rhodes Trust and Scholars had a rather more “teutonic” flavour. [17] The secretive nature of Rhodes secret society – arguably fronted by the Rhodes Scholarships – throws up other curiosities as well. Only 3 of the 47 individuals who had been appointed trustees of Rhodes Trust between the years 1902 – 1995 – have been Rhodes Scholars. Furthermore, of the 17 Rhodes Trust Secretaries and Wardens of Rhodes House appointed during these same years, not one has been a Rhodes scholar. This is less than half a percent overall. Democratic representation seems not to be an issue. [18] In the latter months of the war, Bormann looked to SS Major Otto Skorzeny to play a crucial role in

spiriting away Nazi loot before Germany surrendered. [19] In early 1944, Hitler’s “favourite commando” was sent on a secret mission to the Corbieres region of the French Pyrennes, on the instructions of SS leader, Heinrich Himmler. What the purpose of this mission was remains unknown. [20] These curiosities multiply even further. Pierre Plantard, the central character of the Rennes le Chateau mystery and supposed head of the ancient Order, the Prieure of Sion, is reported to have transferred a “large quantity of gold to Switzerland in 1952.” [21] Despite claims that the Priory of Sion has a 1000-year history dating back to the Order of warrior knights, the Knights Templar - chartered in 1151 - it only surfaced in 1956. It is said that the founding of the Priory of Sion was an artful ploy by Charles de Gaulle to conceal the true activities that were taking place in France at that time. These had more to do with laundering suspect gold bullion and political intrigue than ancient treasure, religious cults or biblical bloodlines. The latter were an accrual of old myths and legends cobbled together to form a diversionary cover story [22] The selection of Annemasse on the French Swiss border for Priory’s headquarters in 1956 is also interesting. This small border town is reported to be the centre for the “Gladio” stay-behind units formed to fight behind the lines in the event the Soviet Union invaded Western Europe. The prospect of Russia over-running Europe was most unlikely - a fact known by the US and European military and intelligence community of the day. The Europe-wide Gladio operation had far darker designs. Its principal objective was directed at keeping the allegiance of Western European nations securely in the US economic orbit as well as moving their political infrastructure further to the right. [23] RICH KNIGHTS OR POOR KNIGHTS? Whether the Priory of Sion really had any historical relationship with the Knights of Malta (SMOM) – who are sometimes referred to as the “poor knights” – remains unknown. But different factions of Malta Knights continually enter the story of gold and treasure plundered during WWII. An intriguing example of this involved the CIA front company and Australian headquartered Nugan Hand Bank. Nugan hand Bank was active in laundering WWII gold bullion recovered by Philippine President, Ferdinand Marcos. It was also very active in the Golden Triangle narcotics traffic. The bank was closed in 1980’s following the “assisted” suicide of the banks co-founder, Frank Nugan. Brigadier General Erle Cocke who was the Washington office of the bank, was a Knight of Malta. In an April 2000 deposition that directly related to gold plundered during the war, Cocke stated that he was a “…Grand Commander in the Knight of Malta…” [24] But according to Guy Stair Sainty, an acknowledged expert on Knightly Orders – and a member of the “False Orders committee of the five Order of St. John,” the title “Grand Commander” does not exist in the genuine Order recognised by the Vatican, and Cocke’s name does not appear on the official membership roll. [25] Names that do appear either as members of as recipients of SMOM awards, include many senior CIA officers – for example, Bill Casey, Vernon Walters and James Jesus Angleton. The former Nazi spymaster, Reinhard Gehlen, was awarded SMOM’s Cross of Merito Melitense in 1948. Immediately the war, Gehlen went to work for the CIA and later assumed command of the West German intelligence

organisation the BND, when born in 1955. Post WWII, Gehlen worked closely with Otto Skorzeny and his boss, Martin Bormann. [26] But if Erle Cocke Jr. was not a member of the official Order of SMOM, the likelihood is that he was a member of the Shickshinny Knights of Malta of Pennsylvania. A so-called “false order,” the Shickshinny knights were composed of individuals who leaned to the extreme political right. The Order’s “Armed Services Committee,” included such military notables as British Admiral, Sir Barry Domville – a former head of Naval intelligence who was imprisoned in WWII for his pro-Nazi activities. Domville headed a pro-Hitler group called “The Link” which was intimately associated with the powerful and traitorous pro-Nazi “Right Club.” Membership of this “club” was composed of over 250 leading lights of Britain’s Establishment. Included was John Milner Bailey, the son of Sir Abe Bailey - another South African gold mining millionaire who was a contemporary of Rhodes. Sir Abe was also the main financial supporter of the Rhodes-Milner group after Rhodes death and was an “initiate” of Rhodes secret society. A close friend of both Rhodes and Milner, he named his son after the latter. Significantly, John Milner Bailey was the largest financial contributor to the “Right Club,” and had married Winston Churchill’s daughter Diana, some years earlier. The Rhodes group was not only zealously anti-Bolshevik – which it typified as a tyranny – and generally pro-German (if not always pro-Hitler) but was the moving force behind the formation of the Anglo-American “special relationship.” These reasons probably account for Admiral Domville’s membership of the Shickshinny Knights of Pennsylvania – a state that boasted a large “White Russian” community. Indeed, the Shickshinny Knights are a “Russian” Order of Knighthood – albeit one that pre-dated the arrival of Bolshevism in Russia. [27] Another leading member of the Shickshinny Armed Services Committee was Colonel, Philip J. Corso, who had served in US Army intelligence for many years, including the latter years of WWII. At that time he worked on Operation Paperclip, recruiting former Nazi scientists to work for the United States. [28] By the middle 1950’s, Corso was working with West German paramilitary types connected to Gehlen’s BND intelligence organisation. It is not hard to conclude that the “paramilitary” activities described were part of Operation Gladio. [29] And it is with the Shickshinny Knights that this story of WWII plunder comes full circle – almost anyway. Two other members of the Armed Services Committee” were members of General Douglas MacArthur’s WWII inner circle of trusted confidants. It will be remembered that MacArthur ran Japan in the post war years as though by divine right. [30] THE “M” FUND The two MacArthur intimates were the German born, General Charles Willoughby, who headed MacArthur’s intelligence apparatus (for whom Ed Lansdale worked) and Brigadier General Bonner Fellers, MacArthur’s military secretary. Not mentioned as a Shickshinny Knight is Major General William Marquat, MacArthur’s deputy, economic supremo and of MacArthur’s “inner circle. General Marquat was placed in charge of a massive slush fund that came to be known as the “M-fund.” This fund merged several prior secret funds including the “Yotsuya Fund” – that was created by

General Willoughby using proceeds from black market operations. Another merged fund was the “Keenan Fund” named after Joseph Keenan, the chief prosecutor of war crimes trials that was composed of money derived from confiscated property. But the M-fund was predominantly created from sales of Japanese war loot including industrial diamonds, gold, platinum and silver plundered from nations occupied by Japan during the war. [31] Marquat’s slush fund was used to influence Japanese politics in the immediate post-war years as well as for other sensitive projects. The main aim was to ensure that Japan would snugly fit into the US scheme of things rather than choose non-alignment. Political payoffs were the price needed to ensure this happened as planned. The M-fund was operated jointly by Americans and Japanese until the late 1950’s but was then turned over exclusively to Japanese control by Vice President Nixon. It has since been alleged that in return for this largesse, Nixon secured a promise that Japan would assist him to become the US president. By 1960 the M-fund is believed to have been worth $35 billion but has since multiplied at a truly staggering rate. By 1995 it was said to be worth a cool half trillion dollars and is under the complete control of shadowy Japanese politicians and has been the cause for several political murders. THE SPOILS OF WAR The key to understanding the secrecy that embraces this story is that much – probably most - of gold that was plundered by Japan and Germany was already “black” gold that didn’t officially exist. Consequently, when the United States re-plundered this metal it did so in complete secrecy. Not only was there the fear of crippling the price of gold – and the world economy with it - were it discovered that monumental quantities of gold existed, in addition to official stocks, but the use to which it was to be put, also demanded secrecy. How can fabulous volumes of gold exist when all the world’s bankers and economists continue to tell us that this metal is so rare? The answer is as prosaic as it is damning. Mining industry sources reveal that as much as 30% of annual production of gold is quietly filtered into the “private market” and does not, therefore, impact on the official figures. In years past, off-market sales by the mining industry have been reported to be as high as 80%. The reasons for selling into the private market are varied but the central one is the avoidance of tax. In addition, as we have already noted, gold production in the former Soviet Union – the world’s second largest producer after South Africa – and that of China and Southeast Asia have never been included in official gold mining statistics. Prior to the American Gold Rush of 1848, the amount of gold said to be in existence amounts to a miserly 10,000 tonnes. This, we are told, is the sum total of gold mined throughout the world during the preceding 5,850 years, for which mining records exist (and If you believe that, I have a nice parcel of valuable land set in the attractive Atlantic trench to sell you). Unsurprisingly, when pressed to verify the accuracy of these figures, it was admitted that they were nothing more than industry “estimates.” [32] Never-the-less, this estimate has been incorporated into current day official mining figures and punched out as actual fact. It is not hard, therefore, to conclude that there are, indeed, very substantial volumes of black gold in existence. The total quantity of gold buried in the Philippines during WWII has been reported to be over 1 million

tonnes - or roughly 90% of the worlds “actual” gold stock. [33] During the course of a seven-year investigation into the subject, this writer has accumulated information from a variety of sources suggesting this is indeed, a more accurate figure. In other words, official statistics represent a modest 10% of reality. One knowledgeable source told this writer that one family, the Oppenheimer’s, effectively control the world’s gold, diamond and platinum market. [34] The Oppenheimer business empire of today was, of course, drawn largely from the old business empire of Cecil Rhodes. During the course of his life, Sir Harry Oppenheimer held Rhodes in the highest regard, referring to him as “the Colossus.” Sir Harry, who later converted from Judaism to Christianity, was made a Knight of St. John – the British equivalent to the Catholic SMOM. [35] He shares this distinction with other notable Establishment figures such as Sir Otto Beit, the son of the German born Alfred Beit - a contemporary of Cecil Rhodes in South Africa’s Kimberley diamond fields and also a shareholder in De Beers. Alfred Beit also generously helped to finance Rhodes secret society. Lord Carrington is also a Knight of St. John and a former director of Rio Tinto Zinc, Hambros Bank and was also Co-President of Chatham House (all are, or were at one time, associated with the RhodesMilner group). [36] Lord Carrington is also a leading light of the secretive Bilderberg Group. Since its inception in 1954 (the same year that the London gold market reopened following its closure in 1939) Bilderberg has had a large German representation over the years. Indeed, the first Bilderberg chairman, Prince Bernhard of the Netherlands, is by birth, a German prince who prior to the war was a member of the Nazi leaning I G Farben intelligence department: N W 7. Perhaps it is just coincidence that Martin Bormann was the protégé of Herman Schmitz, Farben’s president, who taught Bormann everything he knew about financial camouflage and capital flight. [37] ? Although Lord Carrington did not attend the first Bilderberg meeting there were many from the ruling British Establishment that did. For example, Sir Oliver (later Lord) Franks, once a director of the Rockerfeller Foundation and the Schroder bank (that positively rumbled with Nazi and Bormann connections before, during & after the war). Interestingly, Lord Franks was appointed a Rhodes Trustee in 1957. Another attendee was Sir Colin Gubbins, who became Executive Director of the SOE in 1942, and thus would have reported to Lord Selbourne. Yet another present at the first meeting was Hugh Gaitskell who was the Principal Private Secretary to the Minister of Economic Warfare (Hugh Dalton) until 1942, when Churchill replaced Dalton with Lord Selbourne. Gaitskell was also a Rockerfeller Fellow between 1933-4. Not least amongst those at the 1954 Bilderberg conference was Ralph Assheton – later Lord Clitheroe. Assheton was Deputy CEO of RTZ Chemicals (Rio Tinto Zinc) during the years 1973-87. 1973 also saw him appointed a director of Halliburton, a position he held until 2002. [38] During that period he would certainly have been aware that the late Ferdinand Marcos was a large Halliburton shareholder via several cloaked foundations he owned that were managed by Swiss banks. These included the Winthrop Foundation, The Palmy Foundation, The Xandy Corp and the Scolari Foundation. [39] Meanwhile, Peter Carrington is also a member of the Trilateral Commission. The Trilateral

Commission – which can be said to be the Bilderberg group dressed in another frock (membership critically includes Japan’s elite) - has been deeply involved in black gold, according to several accounts. Prior to the ousting of Ferdinand Marcos as president of the Philippines, representatives of the Trilateral Commission tried to persuade him to turn over 63,000 metric tonnes of gold to them. Marcos didn’t like the terms presented and refused. A few days later his reign as President came to an abrupt end. [40] But the last word about the involvement of the Trilateral Commission in plundered gold comes from Mr. Goldfinger himself – Severino Garcia Santa Romana. Prior to his death in 1974, Sta. Romana told his wife that he was a senior member (indeed, he claimed to be the head) of the Trilateral Commission that he said “controlled world finance.” He also revealed he was deeply involved with a secret society known as the “Illuminati” which he maintained had set in motion a fifty year plan to “corner the major part of the worlds gold supply” [41] It is, of course, impossible to verify this claim. But it can be no more an outrageous idea than that propounded by Cecil Rhodes for his secret society. For it to succeed, Rhodes wrote in 1891, to his friend W T Stead, would require “…gradually absorbing the wealth of the world…” [42] Controlling the world’s supply of gold, platinum and diamonds would undoubtedly be one way of achieving this ambition. But in what is undoubtedly a complex story riddled with many mysteries, there is one additional strand worthy of a brief note. This is the extreme right-wing World Ant-Communist League (WACL). Colonel Philip Corso, who we mentioned earlier, was a member of this group. So to, were the late Ferdinand Marcos, and the CIA’s deputy director of intelligence, Ray Cline. Perhaps the most notorious member was the one time chairman, General John Singlaub, a covert operator of considerable talent. In 1986, a business company called Nippon Star that had a tangled ownership and shadowy connections, set out to recover some of the gold buried in the Philippines. This was to be used to fund right-wing activities. Sitting behind Nippon Star were a group of former military and intelligence officers. These included the CIA’s Ray Cline; General John Vessey, the former chairman of the Joint Chiefs of Staff; General Robert Schweitzer formerly of the Pentagon and National Security Council and, not least… General John Singlaub. [43] Whoever now controls the spoils of war buried in the Philippines by the Japanese Golden Lily has arguably “cornered” the major part of world’s gold supply. Whether this was by design or default it would seem that Santa Romana’s boast has come true. ENDS [1] Privately sourced. [2] Drawn from personal correspondence and conversations with Robert Curtis, a mining engineer, who has 6,000 pages of documentation from the private files of former President Ferdinand Marcos of the Philippines, concerning the Golden Lily and Marcos gold transactions. For additional background, see also Sterling Seagrave’s “Yamato Dynasty” (Bantam Press, London, 1999) who was also sourced by Curtis. [3] See Shoup & Minter’s “Imperial Brain Trust: The Council on Foreign Relations and United States

Foreign Policy, for a background on the CFR’s ‘Grand Area.’ Likewise, Noam Chomsky’s “What Uncle Sam Has Really Wants.” [4] Many trillions of 1945 dollars worth, in fact. [5] A brochure published by the London Bullion Market Association (LBMA) states that “…almost all the gold ever mined, in excess of 100,000 tonnes, remains in existence today.” In 1998, the World Gold Council’s website stated “In the last 6000 years over 125,000 tons of gold has been recovered.” Once cannot help pondering on the use of the caveats “in excess of” and “over” in both these cases. Meanwhile, the November 1998 issue of the LBMA’s house magazine “Alchemist” provides a pie-chart which, when totalled, places the figure at 134,800 metric tonnes. [6] This calculation assumes that only half the $200 billion value of plundered assets that composed a triple seven site was gold with the balance being made up of gemstones and other treasure. [7] See Jani Farrell-Roberts excellent self published book “Blood Stained Diamonds – A World-wide Diamond Investigation” [8] Jani Farrell-Roberts “Blood Stained Diamonds,” page 54 (see note above for details of this book). [9] Ibid page 72. [10] Ibid. [11] Carroll Quigley “The Anglo-American Establishment (GSG & Associates, C\alifornia – 1981) page 48. Following Rhodes death the group became known as “Milner’s Kintergarden,” with Lord Selborne operating as deputy leader. Milner was born in 1854 in Giessen, a small town in Germany, and later studied Oxford University where he made his mark. [12] Baignent, Leigh & Lincoln’s “The Messianic Legacy” (Corgi Books, 1986) page 306 [13] Paul Manning “Martin Bormann - Nazi in Exile” (Lyle Stuart Inc, New Jersey – 1981) pages 2812. [14] Carter P Hydrick’s excellent “Critical Mass – The Real Story of the Birth of the Atomic Bomb and the Nuclear Age (privately published). [15] In late October 2002, Valery Giscard D’estang – the former French President, and European Union trouble-shooter, announced plans for a “United States of Europe.” [16] Indeed, Germans were some of the first to be awarded Rhodes scholarships, a practice that began in 1902 and continued through 1913, but ceased with the onset of WWI. Thereafter German names that are listed in the register of Scholars are predominantly of North American universities – although scholarships of German nationals recommenced beginning 1930, but in far smaller numbers. [17] Perhaps “Saxon” is a better word than Teutonic if one bears in mind the significance of the Saxon peoples prior to the pre-Norman conquest of Southern Britain. [18] Drawn from the Register of Rhodes Scholars 1903-1995.

[19] Charles Higham “American Swastika” (Doubleday & Co, Inc, NY – 1985) pages247-8. [20] Guy Patton & Robin Mackness “Web of Gold” (Sidgwick & Jackson, London – 2000) pages 1449. [21] Ibid page 214. [22] One knowledgeable French source states that the Priory was specifically created by Charles de Gaulle for the purpose of laundering gold bullion and engaging in political intrigue. [23] Philip Willan “Puppet Masters – The Political Use of Terrorism in Italy” (Constable, London – 1991) pages 146-59. [24] Extracted from a copy of the deposition in this writer’s possession. [25] Private correspondence with Guy Stair Sainty, 25th September 2001. The five Orders h mentions are: the SMOM, the British, German, Dutch and Swedish orders of St John [26] See Paul Manning’s book cited in an earlier footnote. [27] See Carroll Quigley’s “Anglo American Establishment” cited elsewhere in these footnotes for background on the Rhodes’ group virulent ant-Bolshevik attitude. [28] Interestingly, Corso - like Edward Lansdale and his boss, General Willoughby – have all, at one time or another, been connected to the JFK assassination. See Martin Davis, “Saucers, Secrets & Shickshinny Knights - [29] “Gladio” was the name of the short sword used by Roman Legionnaires. Hence in England it was known as Operation “Sword” and in Austria Operation “Schwert” – meaning sword. For further information see my article “Operation Gladio” at [30] For background on the Shickshinny Knights see Martin Davis, “Saucers, Secrets & Shickshinny Knights, in a foregoing footnote. [31] Extracted from a July 1995 paper published by the Japan Policy research Institute (paper #11) entitled “The 1955 System and the American Connection: A Bibliographic Introduction” by Chalmers Johnson. This includes a four-page summary document written by Norbert Schlei, a former Assistant Attorney General in the Kennedy and Johnson Administrations. [32] Correspondence with the World Gold Council, circa 1998. [33] Eric San Juan’s “The Marcos Legacy Revisited.” [34] Correspondence from Robert Curtis, 29th January 1998. [35] Oppenheimer’s membership of St. John is referenced in the privately published book “The Obedience of Australia” by the late Peter Jones.

[36] Lord Armstrong of Ilminster was also a director of Rio Tinto Zinc and was appointed a Trustee of the Rhodes Trust in 1975. [37] See Manning’s “Martin Bormann – Nazi in Exile” referenced elsewhere in these endnotes detailing this very close relationship. [38] The inter-connections of the 1954 Bilderberg meeting with SOE/Rhodes types has been only briefly touched upon here but are extensive and fascinating. For example, none of the named Germans appear in the 1954/55 or current International Who’s Who except for one: Max Brauer, who left Germany in 1933 and later delegated by the league of Nations to be an adviser on local government and administrative affairs to General Chang Kai-Shek. The story of Chang Kai-Shek and looted Chinese gold is fulsome, indeed. [39] Copies of Marcos bank statements showing these holding – and a great many others, in fact – are in this writer’s possession. [40] The actual amount of gold involved in the Trilateral Commission negotiations with Marcos was 62,321 metric tonnes. A copy of the TC letter is in this writer’s possession. Bob Curtis says that Imelda Marcos later turned over the bullion as part of her settlement to walk away from federal prosecution – correspondence dated 27th January 1998. [41] Extracted from numerous papers, documents and writings (in this writer’s possession) of C.E. “Jim” Brown, the second husband of Santa Romana’s widow, Luz. For viability of a “fifty year plan” see footnote 14 regarding plans just outlined to federate Europe into a “United States of Europe.” [42] Referenced only (and thus easily missed) in the endnotes of Chapter Three of Carroll Quigley’s The Anglo-American Establishment. Quigley – an academic of the first order - subsequently noted that Rhodes secret society not only survived his death but also grew in strength over the next decades and had sufficient power to punish Quigley for revealing its secrets in his massive exposition “Tragedy & Fate” published in 1966. No mainstream publishing house would touch Quigley’s writings after that. [43] See my e-book “The Secret Gold Treaty” – for further details.

[OK I'll have a listen, but IDK] William Dean A. Garner – World Control, Gold & The Jesuits August 19, 2012 William Dean A. Garner was formally trained as a research biophysicist, with a background in physics and electrical engineering. Following his tour in Army special operations, he worked for international private military companies. He’s the bestselling author of 17 ghostwritten books and has also has edited many books, including Angels & Demons and The Da Vinci Code by Dan Brown. In addition to ghostwriting and editing, Dean has mentored six NY Times bestselling authors and is currently a book publisher. He joins us to discuss his latest book, Who Really Owns Your Gold: The Intended Global Meltdown of 2012 – 2014. Garner argues that the Jesuits hold more power and influence over world affairs than any other group. The Vatican has called for a reform of the global monetary system and a global public authority, a world central bank, to rule over the world’s financial affairs. We’ll talk about the philosophy of the Jesuits and how they incorporate celestial physics into their model to rule the world. Dean urges that “We the People” have one last golden opportunity to defeat the first sphere of influence, a global dark and sinister cabal that rule together with the House of Rothschild and their extensive network of sycophants and minions. The Black Budget Published by The Daily Bell - March 29 2013 This week's Solari Story from Catherine Austin Fitts is titled "The Black Budget." Here's a bit of the transcript: "If you want to understand how things got as sort of wacky as they've gotten, you really want to dip into and try and understand what the black budget is. And one of the first things I encourage people to do if they want to explore the black budget and what it means to our lives and the challenges if you're engineering the federal financing is to look at three things: One is the National Security Act of 1947, the second is the act that created the CIA in 1949 and then an executive order that was promulgated in 1980 when George Bush became vice president and through the vice presidency assumed responsibility for the National Security Council, the intelligence agencies and enforcement agencies. What the '47 and '49 Act did in combination was allowed appropriations to be – congress would appropriate to an agency like HUD and then they could call money out of other agency budgets for the intelligence agencies on a non-transparent basis. And presumably, some of that money is overseen. It's not disclosed to citizenry so it's not in the budgets, it's not in the financial statements. It supposedly is disclosed to committees overseeing intelligence agencies in Congress. I'm skeptical as to what they see, how much they really see but supposedly they see some. ..."

So what you did with the '47 and '49 Act was created an infrastructure that allowed money to be secretly channeled to secret and very, from a technology standpoint, unbelievably important, powerful projects on a non-transparent basis so there's no accountability. And one of the things I'll tell you as a former government regulator is without transparency, the shenanigans that go on – it is very hard to manage big pots of money without some kind of feedback and redundant transparency to kind of keep everybody in check. …" “Debt Equals War and Equity Equals Peace” August 1st, 2013 On behalf of Matterhorn Asset Management, independent German financial journalist Lars Schall talked with U.S. financial investment advisor Catherine Austin Fitts. Inter alia, they discussed: the shift in the global economy; various facets of gold and currency politics; the difference between official reality and reality; some background regarding NSA & Co.; and last but not least the use of the term “conspiracy theorist”. She says: “When I hear people be derogatory about conspiracies basically that to me in my world that I grew up in is simply a symptom that they have agreed to be powerless and wear it like a badge of honor.” By Lars Schall The following interview was conducted for and published by Matterhorn Asset Management / GoldSwitzerland here. Catherine Austin Fitts is a graduate from the University of Pennsylvania (BA) and the Wharton School (MBA). At the Chinese University of Hong Kong she studied Mandarin. She served as a managing director and member of the board of the Wall Street investment bank Dillon, Read & Co, Inc. (now part of UBS). Later, she was Assistant Secretary of Housing and Federal Housing Commissioner at the U.S. Department of Housing and Urban Development (HUD) during the presidency of George Herbert Walker Bush. As such, she was responsible for the operations of the Federal Housing Administration (FHA), the largest mortgage insurance fund of the world. After leaving the Bush Administration, Fitts founded The Hamilton Securities Group, Inc., an investment bank and financial software developer named after the first U.S. Secretary of Treasury, Alexander Hamilton. In 1996, she and her successful company became targets of a vicious, long-lasting “qui tam lawsuit,” that resulted in the closing of Hamilton Securities. (1) Fitts was ultimately successful in Court of Claims litigation asserting that the government had no right to withhold monies owed to Hamilton. In the years afterwards, Fitts spoke publicly about the degree of fraud endemic in the federal mortgage operations, trillions of dollars missing from government agencies and the connections to drug trafficking and “black budgets.” (2) Moreover, with her mentioned expertise, she was one of the first to warn of an approaching housing bubble. Fitts is the president of Solari, Inc., publisher of “The Solari Report” (, and managing member of Solari Investment Advisory Services, LLC. She lives in Tennessee, U.S.A. In addition to the following interview, we would also like to recommend to read “Behind the Wheel,” an exclusive interview on with Catherine Austin Fitts that was published in August

2010. Lars Schall: Catherine, are we really going through a global financial and economic crisis, or are we facing something different? Catherine Austin Fitts: I don’t like to call it a crisis, I’d rather call it an opportunity. We’re going through an extraordinary period of change. A decision was made to rebalance the global economy to something that was much more evenly developed between the developed world and the emerging markets. That’s a very big shift. So, we’re going from being divided between developed and nondeveloped into a much more one-world economy. That re-balancing is a very significant shift. A part of the question in that is: What size of population can we sustain as a planet? If you look at our environmental resources, can we live in harmony with the environment because we’re not now, and to me if there is a crisis, it’s the question of: How do we come into alignment between humans and the environment and then humans with each other? We’re changing our model. In the developed world we’ve basically said we’re going to be democracies but we’re going to finance our democracies by running around the planet and kill everybody else and taking their natural resources for cheap. Now we have to convert to a model where what’s done to one is done to all and that’s part of the rebalancing, and I think, again, that it is a big change. Then finally the biggest question, Lars, is we now have the technology – and I believe we probably have had it for a while – to travel the galaxy, and the question is now we’re just one among many planets, are we confronting more advanced civilizations elsewhere and what is that going to do? You know, the history of civilizations meeting each other, it’s never good for the one that’s not technologically superior. If there is life on other planets then there are great risks in that. So, I would say that our biggest challenge is confronting the environmental issues, whether it’s space or how we come into harmony with the environment here on the planet. LS: Yes, but how do you come to the conclusion that we are able to do outer space travelling? CAF: We know. It was funny, Gary McKinnon – are you aware of Gary McKinnon? LS: I’m not sure right now. CAF: The way I got interested in investment in the space program was I was following fraud and extraordinary amounts of money disappearing from the mortgage programs of the federal government and then disappearing from the Treasury. That led me into a research on the black budget. But when you start to research the black budget, what you start to realize is, you know, the number one cover story is incompetence and the number two cover story is corruption. Because in fact you’re talking about an institutionalized process to shift money out of the overt economy – whether at the Government level or out of communities through organized crime and things like mortgage fraud – and you’re talking about money on an enormous scale. We’re not talking about Ferraris and off-shore accounts for Wall Street partners, we’re talking about trillions and trillions of dollars that’s going somewhere. As I started to study the black budget and study where the money was going to – and on a scale that was extraordinary – I started to research the different reports about building underground facilities and building space ships that function like UFOs are reported to function. Anyway, once, several years ago, there was a hacker… LS: Yes, now I think I begin to know who you mean…

CAF: Okay, great. So Gary McKinnon said, you know, that when he hacked into the DOD server what he found was log books literally of star fleets that the navy was running that were travelling throughout the solar galaxy. I looked at that, and I looked at the amount of money that’s disappearing, and I said, “You know, the two make sense”. Now, if it is true or not, I don’t know. However, the Federal Government went to great lengths to get Gary McKinnon extradited to the United States, but ultimately failed. (3) What was very interesting, I was doing a Solari Report one night and I had been at the gym that morning – I don’t own a television set – but I had been at the gym this morning and there was a TV presentation for the new movie Men in Black III and Will Smith, who is a favorite actor of mine, was standing on the ship, Intrepid, which is an aircraft carrier, it’s a warship that has been mothballed and is used as a museum up in New York. So you had Will Smith on the deck of the Intrepid and about two hundred navy officers in dress white. So you had these navy officers with the Men in Black spread through them. I made a joke on the Solari Report. I described this image and I said, “Well, I guess Gary McKinnon was right,” and just as I said that, Lars, the whole phone system got spiked and all the subscribers got thrown off the call, I got thrown off the call, it was the only time that that ever happened and I got that on the Solari Report and I said, “I guess the navy wanted to let us know that they were, you know, Gary McKinnon was right.” (laughs) Anyway, I’m making a joke about it but if you look at the amount of money that’s been going into the black budget there is no way I can explain that kind of funding unless you’re talking about these level of expenditures. I think one of the most important questions we can ask, we don’t have the information to answer it, but if you collect up all of the different sightings and reports of UFOs, we need to ask ourselves: How much would it cost to build all those spaceships? I think there is a surprising commonality between the budget it would take to finance all those spaceships and the number of spaceships we see running around the planet. Have you ever seen the documentary Phoenix Lights? LS: No, but I believe I’m familiar with the phenomenon. CAF: Well, there was a huge spaceship that rolled down the side of Arizona in 1997. A group of citizens filmed it and made a whole series of documentaries. The government of Arizona denied that it really happened and later came in and confessed that it happened. (4) I’ll never forget when I first saw that spaceship, I’ve been doing lots of articles on the four trillion dollars that had gone missing from HUD and DOD between fiscal 1998 and 2002 and looked at the spaceship and the first thing I said after seeing the films was, “I bet you Lockheed Martin would charge four trillion dollars to build that.” (laughs) So, what I’m saying is we’ve seen a phenomenon of extraordinary technology including technology for space travel at the same time we’ve seen trillions of dollars disappear. LS: Yes. CAF: And to me, I think we need to ask the question where has that many trillions of dollars gone and what does it have to do with this phenomenon? We’re seeing very advanced technology being exercised or flown around the planet.

LS: In order to give our readers something so that they can inform themselves about this on a serious basis, would you say that it’s worthwhile to pick up the books written by Richard Dolan? CAF: Yes, I recommend reading Richard Dolan’s two-part series UFOs and The National Security State. (5) Interestingly enough, I said to my subscribers that I would read the first and last chapter twenty times. The book is very long and goes through hundreds and hundreds of sightings of different kinds of spaceships. It’s incredible if you travel across America and around the world, Lars, how many people have sighted these kinds of spaceships. So, this is becoming a fairly high percentage of the population in many places who have personally experienced this kind of technology. LS: Yes, and especially in South America. CAF: Yes, and of course, as you know, the question is always asked: are these built / managed by humans or are they being built and managed by somebody else? I think if you look at the amount of money that’s gone missing into the black budget, I think you can make a case certainly that a lot of it could have been financed by humans. We know that the Nazis were developing anti-gravity propulsion technology right before the end of World War 2. LS: Related to their project known as “Die Glocke” / “The Bell”. (6) CAF: So, this is technology that’s been being developed for quite some time, and one of our challenges as a planet is there’s an enormous split in the population between people who are moving forward in a rapid way, doing very high-tech things, including through the black budget, and a much larger population who, if anything, is reducing their skills and intelligence and ability to deal with advanced technology. LS: Yes. CAF: So you see an enormous split in the learning metabolism within the population. LS: And related to this minority we are then talking about the so-called “breakaway civilization.” CAF: We are. – When you look at the financial history over the last twenty years, one of my theories is we had a financial coup d’état by a group which Richard Dolan coined ‘the breakaway civilization’ – and Dr Joseph Farrell has written a tremendous amount of about this, too, and that’s the other group of books I would strongly recommend, is Farrell’s books. (7) I think they engineered a financial coup d’état and it shifted about forty trillion dollars out of the economy over the last twenty-five years into, if you will, a private endowment that is now financing them proceeding to build what is literally a new and very high-tech civilization globally and which is now financially well insulated from the Government budgets. So we now, for example in North America, have a breakaway civilization which is proceeding to make enormous investments in a variety of things and ways and is fairly insulted from any cuts that may occur in the defense budget. LS: I think consequential one question needs to be, “Is the US really the master in its own house?” CAF: The thing that you and I are struggling with – and any sophisticated investor is struggling with – is that it is not really clear what the governance system on planet Earth is and how it works. What we do know is that sovereign nations have taxing power and large budgets. The reality is those sovereign nations are not in control and not running things. Now, because they’ve large budgets and may have

large operational capacity they’re very important and very influential, but I don’t think the United States’ people elect and control the United States Government or that the United States Government is in control of North America. I think the government system at best is murky and in my experience certainly working as a government official, decisions were made outside of government and relayed into the government as to what the decisions would be. The government works for the “shadow government.” LS: Yes, but what is the “shadow government”? CAF: Well, that’s the question which from everything we’ve seen is quite full of factions. It’s a big planet, there are lots of different operational capacities. They’re different groups and different factions. There’s a lot of competition as the system centralizes. What we’re watching is a large centralization of political control, and part of that is that the technology allows that kind of fantastic consolidation into centralized places. From what I saw whether on Wall Street or in Washington, you have a variety of groups. One of the most important groups in North America is the Bohemian Grove that gathers every July for several weeks – the leadership of business, government, different sectors goes off, you know, into a Redwood Forest in the north of San Francisco and has the time to come together and make consensus and make decisions and set policies as to where they want to go but then it’s different things and implemented. It’s a very organic process. LS: I think a lot of people who are not really familiar with what you’re talking about will now say, “Well, Ms Fitts is a conspiracy theorist.” Where do you take the courage from to talk about those things nonetheless even though you know that this will take place? CAF: Well, here’s the thing: we have an official reality and then we have reality, and the two are different. I’m a financial person, and so what I’m interested in is that, you know, all reality can be expressed mathematically with the math of time and money. I’m an investment advisor. What I’m interested in is, if you look at what’s driving the money, it’s reality. So if you’re interested in protecting your clients or your investors or your subscribers’ money, you need to stick with reality. I’ve spent a lot of time tracking and trying to understand what’s presented as the official reality, but the thing that drives the money is reality. I’m a financial risk manager and so I just don’t have time to pretend the official reality. Now, if you look at my understanding of the world it emerged from working on Wall Street or working in the government. I’ve spent many years litigating with the federal government and my personal experience is that the world is driven by quiet decisions made quietly in various groups and then implemented in these ways – that’s how the world works, that’s the basic organizing principle. I think one of the reasons that the PR guys came up with the idea of making acting in concert something to be treated in a derogatory fashion – you know, the dividing line of class in America are people who create, manage and engage in what’s called conspiracies, whereas everyone else is trained to be incapable of doing it because that’s the basis of power vs. powerlessness. So, I come from a world where being able to get together with other people, organize plans, implement those plans and do it quietly and secretly is basis of exercising and accumulating world power. So, when I hear people be derogatory about conspiracies basically that to me in my world that I grew up in is simply a symptom that they have agreed to be powerless and wear it like a badge of honor. I just come from a different world. I’m not trying to persuade anyone of my particular view of the world. I’m much more interested in maintaining the highest possible learning speed about how to protect and help my clients, investors and subscribers. So I’m very performance orientated.

LS: I like that. Anyway, what are your thoughts on a free trade zone between the US and the EU? CAF: I think it’s inevitable. I don’t know how long it takes. It takes generations at this rate. The developed world, as we re-balance the global economy, is going to come closer and closer together. There’s a wonderful, wonderful quote from the former head of Luxembourg, Jean-Claude Juncker, who said several years ago, “We know what we have to do, we just don’t know how to get re-elected if we do it.” So I think people who are left to manage the government apparatus are going to find more commonality with each other and so it’s going to be easier and easier for the leadership of the EU and the different countries in Europe to get together with the leaders in the US and find ways of advantaging each other up against the different problems that they struggle with, which are enormous. LS: Why is it that the topic of economic espionage is widely ignored when it comes to the recent NSA & Co. revelations? CAF: Well, first of all remember within the developed world we have allies who are both competing with each other and co-operating. It’s very bad for business to let your allies know that you’re basically dirty tricking them in the game of economic warfare. So that’s a very uncomfortable reality particularly for the Americans because I think the Americans have been very, very good at this game. That’s number one. Number two is we now we have a financial system which is very dependent on a market management system. The NSA and related surveillance systems have gone way beyond – they’re not just an insider training machinery for equipment warfare, they’ve become something much more proactive. It’s proactively figuring out how to manage markets and manage them broadly geopolitically. So you now have something that’s inventing markets and inventing the economy and directing and steering the economy forward. I don’t know if you have ever read Isaac Asimov’s book, The Foundation? LS: Not that particular one, no, I’m sorry. CAF: We’ve gone from a surveillance machine to a market rigging machine to a market creation machine; the economy creation machine is something that’s evolving towards, literally, the Foundation kind of machine that’s trying to replace God in terms of communicating and optimizing between people. LS: So there’s insider trading / informed trading going on between intelligence agencies and private banking institutions? CAF: Absolutely. But first of all, there’s no such thing, I think, in the big banks as private banking institutions. Right now the federal government has as its depository the New York Fed. So, you have a private bank that is the banker to the Government and basically, essentially and in many respects is in control of the Government accounts. Now, that Central Bank is printing paper and nobody is going to take that paper unless the US military makes sure everybody does. So we’re talking about a hybrid that’s very integrated into one thing. The New York Fed is really, its member banks who act as agent and if you look at those member banks through the New York Fed, they’re managing the Exchange Stabilization Fund which is the mother of all slush funds and market intervention funds but they are also implementing national security directives in the market. So, if you take a look for example at the oil price over the last twenty years, we have been proactively managing the oil and energy prices for a variety of geopolitical goals. I would say one of the ways we brought down communism was by keeping the price low and bankrupting Russia and then went into

Russia in the 1990s and basically raped the place and ended up with European and American interests acquiring Russian oil assets et cetera. So, you know, these banks are implementing for the national security state all sorts of market interventions, which are policy now, it’s not an open policy to drive the oil price down but drive the oil price up, that’s what’s happening. So, you know, these agencies and institutions are acting as one cartel simultaneously together. I think it’s gone way beyond insider trading. I think they have an agenda and they’re creating a world that’s being planned out and we’re using these systems to implement it in a whole variety of ways – not just collecting information, but building the economy out in many different ways. What they’ve created at least in America on the ground is a harvesting machinery. America breaks down into 3100 counties and what you’ve got is a machinery that harvests each one for a variety of governmental and black budget purposes. The economy in most counties is designed to generate money for the black budget more than to optimize the economy. LS: Why would you say it is significant in that regard to talk also publically about the Prosecutor’s Management Information System (PROMIS), a database system developed by Inslaw Inc., a U.S. information technology company, which was founded by William A. Hamilton, a former analyst with the National Security Agency (NSA)? Where’s the relevance of this topic? CAF: PROMIS was the beginning and it’s very funny, when I called Bill Hamilton who runs INSLAW and, as you said, used to work at the National Security Agency – when I first called him and said I wanted to talk to him, he said, “Have you read Black Money by Michael Thomas?” I said, “No”, and he said, “Read it and call me back.” If any of your readers are interested in learning about PROMIS, I strongly recommend that book because it’s wonderful sort of fiction beach reading. It gives you sense of the power of PROMIS. (8) What Bill and his team created was a piece of software that would allow different databases to be aggregated and converted into intelligence in a way that we can do now with relational databases. But in those days when you had non-compatible databases, aggregating data was difficult. The allegations are that PROMIS was then used to crack and access information and indeed even manipulate bank accounts on any bank that was on the payments and settlements systems. So it dramatically broke down the financial controls and privacy within the financial system. Now, PROMIS was long ago and there’s been many developments since then. PROMIS was the beginning of a very two-tiered society where one group of people had enormous access to all the financial data, and it wasn’t just the central banks which always had it, but it was the intelligence agencies. So you combine that with artificial intelligence and it gives you the ability to begin to create this machinery that proactively manages the markets in enormous ways. If it wasn’t for that kind of technology, we could never go to a world where central banks manipulate markets in the way that they do now. LS: I think a lot of people are wondering why our politicians here in Europe right now are behaving like sell-outs related to those current NSA & Co. revelations, and I don’t know if this is really an answer to it, but nevertheless may I ask you to explain to us the concept of “control files,” please? CAF: One of the challenges of managing an economy, you know, when you have an economy that has an official story and then has an unofficial story, you run into all sorts of personal problems. I’ll give you an example: between fiscal 1998 and fiscal 2002 we had four trillion dollars of undocumented adjustments at NASA, HUD and the Department of Defense. Now, four trillion dollars, you know, in

one year we had more money missing from the Department of Defense than the government collected in taxes. So we’re talking about financial fraud on an unimaginable scale. In accounting terms 5 percent is deemed to be material. So now we’re talking about more than 100 percent, that’s very material. Well, how do you shift four trillion dollars out of the official accounts and shift them in that way without anyone knowing and still have your workforce do as they’re told? You know, you run into the problem that everybody gets greedy. So you have this question, how do I have my workforce work together, follow orders, be obedient and shift four trillion dollars into the black budget without them wanting a piece of action? So when you run these parallel systems the question is, how do you get everybody to do what you want? I remember when I worked as Assistant Secretary of Housing I had the Secretary order me to do things that were illegal and I refused. He threatened me saying, “You know I’m going to get a control file on you, so that I can make sure you do these illegal things,” and I said, “You’re not going to be able to,” and I finally got fired because he couldn’t create the control file. I wouldn’t go ahead and break the law and so I ended up being fired. Now, how do you get thousands and thousands of people to do what you say? Well, it takes several things but one is the control file. Now, what is a control file? Do you remember J Edgar Hoover and his dirty pictures? LS: Sure. CAF: If I have dirty pictures of you doing something that is very compromising, something that you don’t want your family and friends to know about, something that could hurt your professional reputation, your career or your personal relationships, if I have that evidence in a file, generally I could get you to do what I want. Now, what’s interesting is we’ve evolved to a place in this country where even if I can’t get a control file on you it’s relatively easy to get the media to accuse you of things that are false and by the time it all gets sorted out you’re destroyed anyway. So, the threat of a false control file works. Generally what I found is the real apparatus of the black budget and governance in America is run by control files and, of course, the ultimate is the ability to kill with impunity. So, we have people who have surveillance and intelligence machineries that can give them control files on anybody who is important and they also have the ability to kill with impunity and act above the law and as a result, the real control system in America is very, very different than what the law or the formal governmental apparatus would indicate. There’s a post on my blog, I’ll send you the link, where I wrote up a little story about control files. (9) LS: Thank you. CAF: And one of the things, that I think is one of the most interesting dynamics going on behind the scene, is we see now for many years the premier control file network was the Vatican because you had certainly in America the church having a local church in every community and you have everybody to come and confess their secrets to the priest every week. So it was the ultimate intelligence collecting network with fantastic information on the ground. One of the many problems that the Vatican faces is we now have the telecommunication companies and intelligence agencies building a far superior network with a much lower overhead. LS: Yes. CAF: And so the Vatican is struggling to re-invent itself in a world where it’s no longer the premier control file and intelligence network that it has been really for the last two thousand years.

LS: Do you think that the whole NSA & Co. revelations is also a little bit like a huge control file vis-àvis the populations in the sense that, “Now you know we watch you, we have something against you in our hands!” CAF: To a certain extent I think the revelations about the NSA reflect competition. You have other groups who want to make sure that that intelligence gets shared and the NSA doesn’t get too big for its britches. So, I don’t think you’re seeing a fundamental change. The NSA has been told that they can’t be a cowboy, they’ve got to share and be obedient to the governments and a variety of other parties. So I think the machinery that they’re operating is going to continue and grow. I think more people are going to have that capacity and what you’re watching is, you know, how’s the government system going to work? I don’t think it’s going to change the fact that we’re going to a world where we live in what I call The Truman Show, which was a movie about people who were under surveillance 24/7. It’s what Scott McNeal said, that “There is no privacy, get over it.” What the technology is doing, it’s completing changing what privacy is possible. LS: One rather general question related to intelligence agencies and the National Security apparatus of the U.S. on the one hand, and high finance on the other: If one looks at the National Security Act and the creation of the CIA, why is it that most of the key figures of the latter organization have a background in high finance and investment banking? (10) Would it be an exaggeration if one would assume that the CIA was created to shield long-term Wall Street interests in the world? CAF: I think the combination. The CIA was created to institutionalize support capacity and funding for the secret societies. I just think it was a way of building the capacity behind what’s called the one-way mirror. If you’re going to run a society where you have an official reality and a very different reality, then you need a support capacity and funding to make that possible. If you go to Disney World, Lars, you know, you have this wonderful world upstairs and then you go down below the ground and then you’ve got an entire underworld of people who are managing and orchestrate the world above ground, and I think the CIA was created to build that underground bunker at Disney World. So, now the big question, of course, is what was it that happened in ’47 and ’49 that got everyone asking the question, do we need to keep all of this secret because essentially what you created with the ’47 and ’49 Act was the ability to claw money out of government agencies and out of the Exchange Stabilization Fund to go into highly classified projects. Then you created a series of Executive Orders that would allow that funding to be channeled to private corporations. What was created was a financial mechanism that lost control of the technology for the federal government, because you basically created a non-transparent source of money to private corporations to own and develop the most powerful technology in the world. It was the creation of that capacity that led to the breakaway civilization. You created a monster that could then engage in a financial coup d’état, steal enough money so they could be financially independent. Not to say that they’re going to give it up, but you basically created a financial mechanism for a financial coup and at the heart of a financial coup is not the money, it’s the most powerful technology in the world that is completely invisible to the average person who has financed it. You have no governmental mechanism to control or reign those people back in. One of the interesting things you see, G7 funding to sort of get control of the tax havens, and I think one of the questions is, is there a bit of a tug-of-war going on between the breakaway civilization and the people responsible for management of the government as a result of all of these things? Ultimately, at the root of this is the big question: What happened in 1947 that got everybody wanting to build this

secret state on a secret basis? What’s that about? One of the things you come back to again and again is that a big part of that money is going into underground facilities and space travel. So, to me, a lot of this is not about what’s going on planet Earth, it’s about what’s going on outside of planet Earth. LS: Related to the recent off-shore leaks, do you buy into it that this was a genuine act of independent investigative journalism? Or, was it rather an intelligence operation, or to be more precise: a demonstration of performance capacity? CAF: I think it’s a combination of things. If you look at all the leaks going on, I’m assuming that you’ve got a whole series of both private and public intelligence operations and investment interests competing and so to me most of these things are a competition among factions. They’re often not investigative journalism that is up against the system. In America alone you have numerous intelligence agencies that we know of. I’m sure we have more that we don’t know of, and it’s the same around the world. You’re watching a competition among well-funded sources and a lot of factionalism is going on. So, how do I see it now? You have people involved who are genuinely journalists. But if you look at the kind of money it takes for these operations to do go on, essentially the majority of this has to be well-funded operations and that brings us back to either public or private intelligence operations. LS: Coming to something different, why are you paying close attention to the precious metal markets? CAF: I once sat down with a group of very knowledgeable people and said, “Okay, if we just decided we were going to optimize wealth on planet Earth, how much could financial wealth be compared to what it is today?,” and I came to the conclusion that our current wealth was 1 percent of what’s possible. If you said to me, “What’s the economic model that would get us to a world of much greater financial wealth and abundance?,” then I think you need four or five very important characteristics. The most important is we need to shift off of the debt model to an equity model. So generally we finance most government corporations primarily with debt. If we could finance with equity in a much broader way, we can build much more alignment between people in different places. I always say debt equals war and equity equals peace. If I have equity in a place, I’m much less inclined to bomb it than if I don’t. So debt to equity, I would say, is an important step. So is transparency, which is what we’ve been talking about. Right now we have no privacy of the individual, and yet all the information about government monies is surprisingly non-transparent and certainly the governance system is hidden behind a one-way mirror. We need transparency. Another important issue is: Do we have sound money? The harvesting machinery on planet earth is the government is printing money, then they debase the money and add a horrible tax to the citizens because the citizens hold so much of their savings in the currency whatever it is. Right now all the currencies are debasing together, and so it’s a fantastic harvesting machinery. That needs to end. If we’re going to have a healthy economy we need sound money. I got interested in precious metals because precious metals are a form of sound money. It has drawbacks, particularly because it’s such a political asset. The precious metals price is the smoke alarm. So central banks have an enormous reason to manipulate the smoke alarm and, as we’ve seen in the last two years, when central banks are asking the Americans to send their gold back, as we have seen with Germany and other central banks, it creates enormous incentive for the Americans and the G7 to drive the price way down. So, it’s far from a perfect form of sound money, but I’m interested in it because I think we do need to have currency systems that do something other than harvest and debase the average person.

LS: Why does gold tend to have a rather bad press when it comes to financial mainstream media? CAF: If you’re running a huge harvesting machine the last thing you want are people to get onto precious metals. So, the media has very much been directed to be down on precious metals. I also think that in defense of the media, they understand if we all put our money in metal and then pay everybody to sit and watch it and stop building companies that make products and innovate, the economy will be harmed. You know, it’s the equity creation process and entrepreneurship that create real productivity and value. So, if I am running a society then I want to see the money go to the research labs, to go to the scientists, to go the entrepreneurs to implement new technology. I don’t want to put everything in metal that just sits in a vault. There’s an understanding that if the society withdraws from the economic process and just goes to gold, then ultimately the economy will fall apart. Now, in defense of the people who pulled their money out of the economy and put it in gold are saying, “Look, if you run the system with a double standard as to who has to obey the law, then I don’t want to play,” and that’s the debate that’s been going on with gold because more and more people are saying, “Look, I can’t participate in the economic process, I can’t participate in innovation of technology, you know, if you, the guys that run the breakaway civilization, are above the law, can steal and do anything you want.” I was an entrepreneur. I built software tools that were absolutely fantastic, could have made enormous difference to the economic and wealth creation process and the Department of Justice stole them and sat on them for six years. When I finally got them out of the court the most valuable pieces were gone and, in the meantime, my competitors had a field day and a lot of real estate guys made money pumping and dumping the real estate market. So I think in situations like that an entrepreneur says, “Well, you know, if I win, you steal it. If I lose, I lose and in the meantime you’re bailing out the banks. I don’t want to play, I’m just going to take my gold and go sit on the sidelines.” So, that’s one of the issues. The other issue is, if you look at the people who have been promoting gold, I think a lot of the case for gold has not been well-made and it wouldn’t surprise me if some of those people were being paid to make a bad case on purpose. LS: Yes! (laughs) CAF: I think that you have many people marketing the case for gold promoting the idea that the world is going to come to an end and the system is all corrupt and it’s a very negative picture of the world. What they don’t understand is, right now more than 50 percent of the population in any given county in America is highly dependent on the federal budget and if the currency game were to stop tomorrow, they would all be up the river without a canoe. So, making a case that leaves the majority of the majority of the population high and dry is, to me, not a very effective political tactic. Whether it’s the equity value creation or doing what The Powers That Be want or the general population being terrified of being left high and dry, I think those are the things that end up giving gold a bad press. The reality is the worst the press gets, the more central banks and the top guys try to and get more gold. So, if you want to buy gold there’s somebody talking their book by talking the price down as they require it. LS: What are your thoughts related to a “return of the gold standard”? Or asked differently, cui bono? CAF: Frankly, I think we are on a gold standard in one sense, in that central banks and the most powerful people have used gold for generations to settle accounts. LS: I agree. CAF: So I think there is a gold standard. Now, the major standard for the dollar right now, the reserve

currency, is an oil standard because to run this currency game and to keep a currency as a reserve currency you need to control an asset on the assets side of the balance sheet and tie it to maintaining the power of the currency. The reason our military is so important for protecting the value of the dollar is as long as people need oil and we control the sea lanes and the satellite lines, we control the trade in oil on that. That, to me, is the primary enforcement to making the dollar the reserve currency. You know, behind the scene gold is being used to sell wholesale accounts. This latest squabble between the central banks asking for their gold back is a reflection of that. One way or another we are moving to a gold standard but it’s at the wholesale level and behind the scenes and it will probably stay at the wholesale level and behind the scenes. LS: Do you like Bitcoin? CAF: I’m not a Bitcoin fan and that’s because I’ve never met a digital system that The Powers That Be couldn’t control. I like putting a gold coin in my pocket and walking away. LS: Yes. CAF: So I think for a currency to be a great currency it needs to be both atoms and bits. It’s got to be both, because we need to function in the bit world and we need to function in the atom world, and a currency that is only bits is a currency that can be manipulated. One of the things that The Powers That Be would love more than anything is to move to a digital currency so the more they can get us to like and adopt digital currencies, the easier it’s going to be to harvest us. If you think you can harvest everybody with the current currencies wait till you see what you can do when all the currencies are digital. Nicholas Negroponte, when he ran the MIT Media Lab, said in a digital age, data about money is worth more than money. I agree absolutely. So digital currencies have their place but the notion that the intelligence agencies can’t ultimately control any digital system you’re dreaming if you think they can’t, they can. Now, that doesn’t mean that they can control Bitcoin or something like it coming out of the box, but I assure you if they can cut the cable and that’s what they have to do, they will. The president just signed an Executive Order giving them a kill switch, that’s how I read it. (11) So, the theory that we can solve the lawlessness of our situation with something like Bitcoin is a mirage and I don’t buy it. If you want to get into digital currencies, you just need to understand they’re going to be wildly volatile and you run the risk of losing everything if we get into any of these systems problems. So, everything has its place. I love having options, so I’m not saying don’t put money in digital currencies. Understand the limits. Bail-ins are coming. Bitcoin is uninsured. Insurance may not necessarily, as we saw in Cyprus, be the “be all and the end all”, but deposit insurance accounts for a lot. LS: Talking on a global scale, what are the most important challenges to mankind according to your analysis that the vast majority of people is not aware of? CAF: For five hundred years we’ve been on what James Turks calls the “Central Banking-Warfare Model”. The central banks print money and the military makes sure everybody takes it. Part of that, as we said, was the folks in the developed world going to the non-developed world and stealing what they need to make their economy go. Now we’re going to have to go to a much more integrated model globally. We’re either going to have to practice non-violation globally or not. You know, this is a big thing for folks in the developed world, to literally convert to a model where it’s the same set of rules for the developed and the emerging markets.

So how we get to practice non-violation globally is, I think, one of the most important challenges and with that is an enormous spiritual and cultural evolution. To me the greatest opportunity on the planet is spiritual. The ultimate issue in any system of law is who enforces. If we’re going to move to a position where we can handle the kind of technology that we’re being blessed with, then we’re going to be called upon to make an enormous shift so that we have the kind of spiritual and cultural basis that can handle technology that’s this powerful. As that happens on this planet, then we’re going to be turning and facing what is an endless series of geophysical risks; space weather and what in the world is going on in outer space. So, I would say our two most important challenges is the spiritual and cultural rising to match the technology, including practicing non-violation globally, as we come to a much more integrated culture and economy and then turning as a society and taking responsibility to interact in space and understanding and managing our geophysical risks within the context of the whole galaxy. LS: And what are the solutions for those challenges? CAF: The solution is for each one of us to do what I call “come clean.” So each one of us has to change; in other words we don’t need to wait for the leadership to do anything. We can simply begin to change ourselves. For more, I have an article up on my website called, ”Coming Clean”. (12) LS: Yes. CAF: Whether it’s who we associate with, how we spend our time, what we do. I know from looking at your work as a journalist that you have been coming clean for a long time. So, you’re trying to change rather than go sit at the big networks and spill the propaganda out, you know, you’re trying to lead a pathway through real journalism helping people see the world as it really is and find solutions. Each one of us has to do that. So, it comes down to there’s seven billion people on the planet – are each one of us making a contribution to getting to where we need to go or are we simply going around in circles trying to make money in the official reality? We each have to choose. So, the more of us who choose your path, Lars, the better off we’re going to be. So I congratulate you. LS: Well, thank you very much! So I guess it boils down to, I paraphrase now, what Gandhi says, you know, be the change that you want to see taking place in the world? CAF: Yes, the way we’re going to build the future is by attracting in the one we want. We’re going through an enormous shift and there’s no way we can, you know, hid in the bunker with our dehydrated food and gold coins and thinking it’s going to come out alright. We have to go out there, into the middle of the thick and thin of it and create solutions. LS: Yes. CAF: Part of creating real solutions is – I don’t have time for the official reality. I used to have a deputy in the Bush Administration who would say, “In the destruction of the old, let there be the creation of the new.” As the Titanic is sinking, we need to go pick up some boards and chairs and some other things and start building arks. So, it’s very important to look at reality. LS: Yes. CAF: Which is why I love what you’re doing.

LS: Thank you! And thank you very much for taking your time for this interview, Catherine! SOURCES: (1) Compare Catherine Austin Fitts: “The Myth of the Rule of Law,” and “Dillon, Read & Co. Inc. and the Aristocracy of Stock Profits”, both published under: (2) See for example Catherine Austin Fitts: Narcodollars for Beginners part 1 Narcodollars for Beginners part 2 Narcodollars for Beginners part 3 See further Catherine Austin Fitts: “America’s Black Budget & Manipulation Of Markets”, published at Scoop Media on May 27, 2004 under: Catherine Austin Fitts / Chris Sanders: ”The Negative Return Economy“, published at Scoop Media on August 26, 2004 under: (3) Related to the story of Gary McKinnon see for example Jon Ronson: “Game over”, The Guardian, July 9, 2005, here: (4) Compare Lynne D. Kitei M.D.: “The Phoenix Lights – A Skeptic’s Discovery That We Are Not Alone”, Hampton Roads Publishing; Revised, Expanded, 2010 (5) Richard Dolan: “UFOs and the National Security State: An Unclassified History, Volume 1: 1941 – 1973″, Keyhole Publishing, 2000, and: “The Cover-Up Exposed, 1973 – 1991 (UFOs and the National Security State, Vol. 2)”, Keyhole Publishing, 2009. (6) See for example Igor Witkowski: “The Truth About the Wunderwaffe”, European History Press, 2003 (7) See for example Joseph P. Farrell: “Covert Wars and Breakaway Civilizations”, Adventures Unlimited Press, 2012 (8) Michael M. Thomas: “Black Money”, Crown Publishing Group, 1994 (9) Catherine Austin Fitts: “Control Files”, July 29, 2012, here: (10) Take a look at the professional background of, for example, Clark Clifford, James V. Forrestal, Ferdinand Eberstadt, William J. Donovan, Allen Dulles, William H. Jackson, Frank Wisner, William Casey, Stanley Sporkin, David Doherty, John Deutch, and A.B. “Buzzy” Krongard. Moreover, it is of interest that “(i)n its first two decades, CIA, like its intellectual parent the Council on Foreign Relations, was dominated internally and externally by the aristocratic elements of the New York overworld. All seven of the known deputy directors of CIA during this period came from the same New York legal and financial circles; and six of them were listed in the New York Social Register as well.” Peter Dale Scott: “The Road To 9/11: Wealth, Empire, and the Future of America”, University of California Press, 2007, page 12. Compare also Peter Dale Scott: “Drugs, Oil, and War: The United States in Afghanistan, Colombia, and Indochina”, Rowman & Littlefield Publishers, 2003, page 187,

200-201. (11) See “Executive Order — Assignment of National Security and Emergency Preparedness Communications Functions”, White House, Office of the Press Secretary, July 6, 2013, here: further Marilyn Daly: “Obama signs executive order to allow shut down of all US communications”,, July 8, 2013, here: (12) “Coming Clean”, here: Related posts: “The crux of today’s civilization is energy” On occasation of the publication of her latest book, the German financial journalist Lars Schall talked with the Austrian energy-analyst Dr. Karin... “Warnings have to be early to be effective” Peter Schiff, best-selling author and one of America’s most in-demand financial pundits, talks in this interview about Germany’s gold reserves, the “currency... “Europe and America will not allow deflation to take root” The international business editor of The Daily Telegraph, Ambrose Evans-Pritchard, talks in this exclusive interview about, among other things: his conviction that... Posted in Currency, Finance, Geopolitics, Oil, Precious Metals | Tags: Bill Hamilton, Bitcoin, Black Budget, Breakaway Civilization, Catherine Austin Fitts, Central Banks, CIA, Control Files, Debt, Die Glocke, DOD, Economic Warfare, EU, Exchange Stabilization Fund, G7, Gary McKinnon, Gold Standard, GoldSwitzerland, Governance, Insider Trading, Investment Banks, Joseph P. Farrell, NSA, NY Fed, Off-shore leaks, PROMIS, Richard Dolan, Russia, Technology, USA, Vatican World Bank a security risk to the world order? Mai 8th, 2013 Former senior legal counsel at the World Bank turned whistleblower Karen Hudes talks about the corruption inside the World Bank and her personal saga to find out about it. She says a worldwide currency war is certain and NATO in jeopardy, if the wrongdoing isn’t finally addressed. By Lars Schall Karen Hudes studied law at Yale Law School (J.D.) and economics at the University of Amsterdam (M.Phil). She worked as a corporate and securities lawyer at a major New York law firm and for several years at the Export Import Bank of the US, before she became a senior counsel in the legal department of the World Bank (1986 – 2007). Her personal web site can be found here: Lars Schall: Dr. Hudes, let’s talk about the World Bank, which is often described as a “Bretton Woods organization,” since it was officially founded at the famous international conference in Bretton Woods, New Hampshire in 1944. However, the plan to establish this bank (and the International Monetary Fund) originated years before with the highly secretive “War and Peace Studies” that were conducted by the Council on Foreign Relations and the US State Department, while the money for the study came from the Rockefeller Foundation. (1) Given this background of being part of the “Grand Area” design and strategy for the post-war world order, isn’t the World Bank really a tool to exercise American hegemony? Karen Hudes: I take issue with one part of that question – when you say, “American hegemony.” If you unbundle the political structure inside the United States, it’s not what you see is what you get. It’s not that the American citizens are the ones that are running the country. There is a very wealthy group that is secretly, through domination of the press, trying to keep the citizens in the United States in the dark. And so when you say a tool of “American hegemony,” the answer is it is a tool of hegemony but I would take the “American” out of the equation. What you saw in the last presidential election was massive amounts of foreign money coming in, in an attempt to influence voters. (2) That’s the group that I’m talking about and I would be very happy, as a sidebar at some point, to discuss who that group is, where they are, and what they’re doing. Because I didn’t know about that group when I started on my saga, but I found out about them later on. Now I try to tell them that they have to start behaving themselves. They are not above the law; they think they are, but they are subject to the law. L.S.: Okay, then let us go straight down to the nitty-gritty: Can you name the individuals and institutions of that group? K.H.: I’ll tell you what I can do; I can point you to a very good study that was done by three systems theorists at the Swiss Federal Institute of Technology in Zurich, ranked as the best university in continental Europe. What they did was examine the interlocking ownership of the world’s 43,000 transnational corporations using mathematical modeling tools. Are you familiar with that study? L.S.: Yes, I am. I believe you are referring to a study which showed basically that a small group respectively “super-entity” of 147 financial institutions and multinational corporations is pretty much in control of the world economy. (3) K.H.: Yes, that’s right. So, it’s whoever is behind that group which is in control of 1 percent of the

investments but that 1 percent through corporate interlocking directorships is now in control of 40 percent of the assets and 60 percent of the revenues of this set of 43,060 transnational companies. That’s who that group is. Now, do I know who the individuals behind that group are? They’re very good at secretly hiding, so I’m not going to hazard a guess. But once we get the legal machinery in place, we will find out in great detail who these individuals are, and they will be playing by the rules along with everybody else on this planet. L.S.: Before we come back to that issue: How do you evaluate the World Bank’s track record in general? K.H.: It’s a magnificent place that has been hijacked by that group, so you really can’t blame it for some of the terrible things that have happened. But some of the most talented people in the world end up there. In particular, the group of World Bank whistleblowers that I have been working with is a dream team. They are fabulous, and by working together we have succeeded in exposing what the “super-entity” of financial institutions was trying to take away from the people around the world behind their backs. I wouldn’t call it a “Coup d’État” because we have simply taken back what was rightfully ours. So, the World Bank is a mixture which includes that group of whistleblowers. Their lives have been really, really severely damaged by the power of that group that was trying to prevent them from doing their jobs. When the World Bank renovated its headquarters in 1997, an architect/construction engineer tried to prevent a 70% cost overrun caused by mismanagement. Can you imagine, an organization that’s teaching everybody how to run projects has a cost-overrun of $220 million dollars over the estimates? Anyway, he warned that this project was going to have the overruns, and he was fired in gratitude. Where is this man now? He’s managing projects for China. Anyway, when we were mentioning him as a whistleblower, he said: “I don’t want this publicity; I’m not a whistleblower. I was simply doing my job as a professional project manager and architect.” But some people, their lives were just completely wrecked. So that’s what the World Bank is: you’ve got 5 percent who are fighting for justice, you’ve got human resources secretly managed by the “super-entity” of financial institutions, and you’ve got everybody else in the middle taking cover where they can. L.S.: Why should anybody care about the World Bank and its actions? K.H.: It’s an institution at the very center of the world financial system owned by 188 countries. This institution can prevent a currency war and can also serve as a bridge when there is consensus about how to amend the functioning of the world financial system. It takes 50 years for an international institution to function. There is a simple convention that the Board of the World Bank will only vote up or down what is proposed by the President of the World Bank. When the Board tried to end that convention in 2009, the following day I was locked out of the World Bank’s headquarters. In 1944 there were 44 countries at the Bretton Woods Conference; one of the Dutch delegates was a young lawyer named Aaron Broches, who later became the longest-serving general counsel of the World Bank. I wasn’t at the World Bank when Broches was general counsel, but I got to know him because I was interested in finding out about the history of the World Bank. Broches gave me the operation manual. He was there when Robert McNamara came to the World Bank as the president in 1968. Broches told me that’s when the World Bank really started to deteriorate. McNamara made the place much more corrupt than it had been before that. The World Bank was established by treaty that was negotiated by the 44 countries which came to the Bretton Woods conference. By now, the Bretton Woods treaties have been signed on to by 144 additional countries. So, the reason people need to care about the World Bank is it is a fabulous tool. We couldn’t create it today; but we’ve inherited it, we’re standing on the shoulders of our predecessors, and it is the tool by which we are taking back the rule of law, and we’re proceeding actually further than it’s ever gone. People complain about international law, they say it’s not enforceable, it’s just wishful thinking; no. International law exists, and it goes from the very bottom of the system way up to the top. Because the

groups that want to be free to dominate the place and not be subject to law, their game is over, finished. This is a sea-change. L.S.: But isn’t the whole thing related to the financial crisis and the fact that those people who’ve committed crimes are not punished for their crimes – isn’t that an clear indication to the contrary? K.H.: Yes, but just wait until we finish doing what we need to do, because when I talk about taking back the World Bank for the rule of law, we’re talking about the beginning of a different approach. International law was developed by Hugo Grotius, a Dutch lawyer, famous for his escape in a trunk from the castle of Loevestein in 1621 where he was imprisoned by the Calvinists. Grotius believed in freedom of the seas and combined ethics, politics and law. He said: “It is fitting that those who have the leading place in an alliance should arrogate to themselves no privilege in relation to their own interests, but should make themselves conspicuous above the others through their careful management of the common interests.”(4) Now here’s where it becomes really interesting. Bond holders are entitled to accurate financial statements from the World Bank under securities laws in every single jurisdiction where the bonds are held. The World Bank has issued $135 billion in bonds denominated in the world’s currencies; anyone who holds a World Bank bond can hold the World Bank accountable. And this means that anyone inside that organization with financial information has got the right to make sure that is correctly represented in the World Bank’s financials. If there’s an inaccuracy in the financial information, the correction must take place, and any person who reveals that inaccuracy must be protected and not retaliated against. This is now a requirement in the appropriations legislation for the US contribution to the World Bank capital increase. (5) If you buy a World Bank bond (and I did so), you are empowered to fight for international law as an individual. So, we now have a mechanism for requiring transparency. Does every government want transparency? Of course not, that’s why it has taken me fifteen years so far. But that’s where we are now, with governments accountable to their people in a way that they weren’t before. L.S.: You assume that a world-wide currency war is certain if the World Bank fails to adhere to the rule of law. How do you come to this conclusion? K.H.: It’s a very important question. You can see definite signs of an impending currency war by the US government’s seven year delay in complying with Germany’s request to repatriate 300 tons of gold; the difficulty in obtaining gold for immediate delivery; Japan’s devaluation; and legislation in a dozen states to recognize gold and silver bullion as legal tender. I elaborated on this in a recent interview with gold and precious metals expert, Tekoa da Silva. (6) I have been warning for nearly ten years that US’ failure to play by the rules at the World Bank would end in a currency war. I come to this conclusion because one of the things the World Bank is, is it’s a knowledge bank. You have very clever companies that have developed services that they would like to incorporate in World Bank projects. For example, I was working on a project in Ghana on a freedom of information law. The Ghanaians hired the Sentia Group, headed by Jacek Kugler, former Chair of the Department of Politics and Policy at Claremont Graduate University. He was President of International Studies Association (2004-5) and of the Peace Science Society (1995-6). He was also editor of International Interactions. The model developed by Jacek Kugler is 90 to 95% accurate. (7) There are actually two models that I am relying upon. The published version is: “The War Presidency: Options Taken and Lost.” (8) This analysis holds that what the United States did in the Iraq war may have made some sense in the context of the regional problems, but it was absolutely suicide for the US to fly in the face of its major allies. If the corruption in the United States continues to jeopardize the US’ relationship with the NATO countries, (which we are now seeing in the refusal of the United States to comply with Germany’s request for repatriation of its gold), China would come way up very, very fast, but via a currency war

that will force trade back to a barter system and disrupt the world economy on a scale that will make the great depression of the 1930′s and the recent world depression in 2008 pale by comparison. I found out in the Ghana project using the Sentia stakeholder analytic tool that the reason that the freedom of information law was not being passed was because the German government, which was financing the project , wanted a perfect freedom of information law. It turned out that in Ghana the people who were opposed to the law had enough political power that they could prevent the law from being passed. Once the German government understood that there was no ownership in Ghana for a perfect law, the local version of the legislation passed. I was fired illegally as a legal officer of the World Bank trying to keep the World Bank on track in the securities markets. I informed the US Congress that the World Bank was out of compliance on the capital markets, and was illegally fired in retaliation. So I thought I would be reinstated immediately. I didn’t understand that the single biggest impediment was the fact that that group that I was talking about, the one that’s dominating the capital markets, is also dominating the media. I didn’t realize how concentrated the media was in the United States. In the last 20 years the number of owners of the media in the US has gone from 50 down to 5. So I couldn’t get my story out. (9) I can regale you about what happened with the National Press Club, which has been hoodwinking the American people by censoring important information. When we are finished ending the cover-up of corruption, the media will have admitted that it was certainly newsworthy when the governors, attorneys general and chief justices of the 50 states were involved in resolving this illegality. How can it be that the American people don’t know this now? That is why I’m so grateful to you for bringing my story to your readers. L.S.: When did you come to the conclusion that a world-wide currency war is certain by using this game theory stakeholder analysis? K.H.: In 2004 I asked Jacek Kugler whether he would model rule of law at the World Bank. This is the second model, and is consistent with the published model, because the World Bank is a microcosm of the world economy. The input to the model requires an assessment of where the stakeholders are on rule of law at the World Bank, how powerful they are, and also how important rule of law is for them. So for example, the president of a country may be powerful, but he’s got a lot on his plate, so that issue is not so important for him. Kugler refers to that as “salience”. The numbers as to how powerful the countries were is based on their shareholding in the World Bank; for instance the US has 16 percent. But I had to estimate how important rule of law was to the World Bank’s member countries, where they stood on the issue, and so on. However, where I guessed wrong was I didn’t understand the media. I thought the media was part of a solution; I didn’t understand that it was very much part of the problem. In 2007 I warned the US Treasury Department that the model of rule of law at the World Bank was predicting that the US would lose the 66 year-old Gentlemen’s Agreement to appoint the president of the World Bank. (10) That is what happened in 2010. (11) The model started predicting that rule of law would prevail rather than a currency war as soon as the UK and European Parliaments published my testimony. (12) L.S.: But is the loss of the Gentlemen’s Agreement actually something bad? I mean the US is just one country out of more than 188 in the World Bank? K.H.: Let’s look closer at Hugo Grotius’ point: ‘If you’re at the top of the food chain in the world and you rule benevolently in everybody’s interest then this is a good thing. But once you stop doing that, you stop acting as a trustee for the world and you start acting for the interest of a small group whose interests are different from the whole, then it’s a bad thing. So, if the US had acted under the World Bank’s rules, and complied with the securities laws of the jurisdictions where World Bank’s bonds are held, the US could have kept its Gentlemen’s Agreement. It’s only when the US acts illegally and against the interests of the whole of the group that the Gentlemen’s Agreement needs to end.

L.S.: Okay, I still don’t get it, and so make it plain, please: a) why do you think a world-wide currency war is certain by using this game theory stakeholder analysis? And b) please explain why NATO is in jeopardy – and maybe more important, give our readers some reasons why it would be a bad thing if NATO would break-up? Is NATO still a defense alliance? I also spoke to Secretary Chuck Hagel on August 6, 2008 when he represented Nebraska as a Senator in the U.S. Congress, and I told him that this stakeholder analysis was predicting that the Gentlemen’s Agreement would end if the U.S. did not stop its hegemony at the World Bank and that “playing cat and mouse with these serious governance issues at the World Bank is also a security risk to the world order.” After Chuck Hagel became Secretary of Defense, I called up the Inspector General’s office in the Defense Department and said, “I happen to think that Secretary Hagel will be very interested to know about a problem that’s going to make him lose NATO.” And the next weekend I got a request from LinkedIn to contact the Defense Department’s project manager for their version of the stakeholder analysis. I am also in touch with NATO. NATO is in jeopardy because of tensions with Germany and Europe over the corruption emanating from the “super-entity” that is trying to dominate the world economy. The stakeholder analysis is predicting that this corruption can be overcome through coalitions that demand the rule of law. Informed citizens demanding an end to the corruption will turn things around. I believe that the corruption in NATO, like the Bretton Woods institutions, can be overcome. As a lawyer, I believe that institutions can be retrofitted, improved, and salvaged and that when coverups of corruption end it is possible to close the loopholes that permitted the corruption to exist. When I say that NATO will break up, I am referring to NATO as a proxy for the transatlantic alliance. Whether the accession of new countries to NATO has changed the character of NATO is a larger issue. As the corruption coming from the “super entity” of financial institutions we discussed earlier is tackled, many existing institutions will change. Lawyers prefer incremental change, and working within an existing institutional framework. The alternative is an approach like the French revolution. Is that preferable? L.S.: Was corruption part of the decision to get rid of Paul Wolfowitz and Robert Zoellick as heads of the World Bank? K.H.: Yes, of course. The Board of Executive Directors asked Paul Wolfowitz to leave for promptly giving a 35% pay raise to his significant other who was working for the World Bank when Wolfowitz assumed the presidency. That was just the tip of the iceberg; the corruption was systemic.(13) L.S.: Well, related to Robert Zoellick I think this is not really clear to the public… K.H.: No, of course not, that’s because the “super-entity” of financial institutions bought up the media. It was because of Robert Zoellick’s corruption that the World Bank’s Committee on Governance refused a second term to Robert Zoellick, and Senator Harry Reid, Majority Leader in the US Senate, told Zoellick that he was not going to be renominated for a second term as president of the World Bank by the United States. After Mitt Romney appointed Zoellick to head national security transition planning during the US presidential campaign, I tried without success to inform voters about the corruption problems. (13) CBS, which broadcast the presidential debates, knew about the corruption at the World Bank because they used my information to embarrass the UK’s Prime Minister David Cameron during his interview on the David Letterman show on September 27, 2012. After my testimony in UK Parliament about corruption at the World Bank, the UK’s Minister of Development, Andrew Mitchell, was raked over the coals in the “plebgate affair.” (15) But CBS refused to ask a question on international corruption during the presidential debate. L.S.: When did you personally became aware of improper practices at the World Bank? K.H.: I learned of the corruption at the World Bank gradually: think of old Polaroid pictures that

develop slowly. My understanding of the problem increased from working with other World Bank whistleblowers and seeing what happened after I disclosed corruption up the corporate ladder within the World Bank. So, the first thing that clearly jolted me was in 1997 when the Board at the World Bank said under the Strategic Compact, ‘We’ll contribute to the World Bank budget, but we’re putting a condition that we want to see improved management’. I was the representative of the Staff Association on the Drysdale Committee which was looking at Human Resources Reform under the Strategic Compact. At the end of the exercise I said, “You know, for reform in an organization, you need to have monitoring to see whether the reform has taken hold.” When my recommendation wasn’t incorporated, I was perplexed, and wondered, “Why don’t people want to monitor reform of human resources?” We called in Alberto Bazzan, a human resources manager from IBM. After about a year, Alberto came to me — this was when Jim Wolfensohn was the President of the World Bank — and said “Karen, it’s not working, I don’t get to see Jim Wolfensohn very often but whenever I do, if I tell him somebody should be promoted, that person gets fired. If I tell him that somebody should be fired, that person gets promoted.” Alberto also said, “I don’t know how much longer I’m going to last,” and sure enough; he got fired too. L.S.: You also became aware of irregularities in connection with a bank in the Philippines. Please elaborate on this. K.H.: At the end of the East Asia financial crisis in 1999, the World Bank had a ‘structural adjustment loan’ in the Philippines. In structural adjustment loans, the World Bank finances government reform policies rather than goods and services. In corrupt regimes these loans are controversial because the reforms are not owned by the country, and the proceeds do not end up in government treasuries. So, what happened in the privatization of Philippines National Bank (PNB) was the man who owned Philippine Airlines, which was in default to PNB, ended up buying the government shares in PNB. The investment advisor said, ‘You know, depositors aren’t going to like that PNB is being managed by a borrower in default. This is a real problem’. I went to the World Bank’s country director for the Philippines and told him what the investment advisors said; that the man who owned Philippine Airlines had broken the securities laws in the Philippines by failing to disclose his acquisition of more than 10% of PNB’s shares. I told the World Bank’s Country Director in the Philippines to warn the government the World Bank could not disburse the rest of the structural adjustment loan. I wrote the letter. It said, ‘Dear Philippines Government, you’re not going to get the money, you’re not complying with the conditions’. I said, ‘could you please sign this letter and send it to the government’. Instead, I was reassigned. There was another condition in the loan requiring the Philippines’ laws on banking supervision to be improved, and those laws were never passed after I was reassigned. So I went to the legal department, and I said, ‘You can’t reassign lawyers who are doing their jobs.” I live on the same street as Larry Summers, and my kid was in the same elementary class as Larry Summers’ kid. When this nonsense with the human resources reform happened, I complained to Larry Summers at a PTA meeting. I said, “The World Bank is not being managed right: when we try to correct the mismanagement, the wrong people get fired; what’s going on here?” There was going to be a new general counsel, and a friend of mine told me that there wasa good candidate. So, I told this to Larry Summers. After this man came in as the World Bank’s General Counsel, I asked him, ‘Why are you reassigning me when I’m doing my job’.

So after I was reassigned in the Philippines, I told the Executive Director who represented the Dutch government on the Board what was going on, and the two of us had a meeting with Jim Wolfensohn. At the meeting we said, ‘This idiot who you hired as General Counsel is leading to corruption in the Philippines, you’ve got to do something about this’. Jim Wolfensohn’s response was to put me on probation. I went to the decision meeting when it came time to disburse the Philippines loan and told the Vice President for the East Asia Region, “The conditions haven’t been met for disbursement.’ And of course, that vice president knew that I was going to go back up to the Board, so he had to cancel the loan for $200 million. There was a matching loan from Japan which was also cancelled. The depositors in the Philippines got nervous with a defaulted borrower in control of PNB, and there was a run on the bank. The Philippines Deposit Insurance Corporation had to bail out PNB with a $500 million loan. The President of the Philippines, Joseph Estrada, was ultimately impeached in 2001, and in 2007 an anti-corruption court in the Philippines convicted Estrada of plunder and confiscated cash and properties worth $29 million. When the World Bank’s Evaluation Department told the World Bank’s Board of Directors that the World Bank’s supervision performance on the structural adjustment loan for the Philippines’ financial sector had been satisfactory, I said that the Evaluation Department was misinforming the Board. The World Bank never ended its misinformation to the Board on the Philippines financial sector adjustment loan. That was the kernel of the cover-up, which kept on mushrooming. L.S.: Why were you fired ultimately in 2007? KH: I was fired illegally in retaliation for informing the US Congress about the cover-up on the Philippines. In 2006 I was a candidate for the World Bank’s General Counsel position. During my interview, I told the Executive Search firm about the failed human resources reforms and the internal control lapses. Executive Search firms for the general counsel position of companies with bonds on the securities markets have to correct internal control problems. When there is an international organization whose Board consists of member countries, this problem becomes especially serious. I informed the Treasury Department that the Sentia stakeholder analysis was predicting that the US was going to lose the Gentlemen’s Agreement. When the Treasury Department did not respond, I informed Senators Biden, Clinton, Obama, and Lugar on the Senate Committee on Foreign Relations. Senator Lugar backed me up with three letters to the World Bank before I was fired, and my Congressman wrote a fourth letter at Nancy Pelosi’s request after I was fired illegally in retaliation. Senators Leahy and Bayh also joined Senator Lugar in demanding a Government Accountability Office investigation into corruption at the World Bank the year after I was fired. When the World Bank stonewalled the GAO investigation, Congress put conditions on the US contribution to the World Bank’s capital increase requiring reform to end the effects of retaliation. (16) There are other World Bank whistleblowers reporting the same problems as I did. They have stories that are equally outrageous. You cannot run a bank as if it were your personal slush fund. You have got to have accountability; you have got to have internal controls. When I reported to Congress that the World Bank had deficient internal controls, I also pointed out that because of the special position of the World Bank in the world financial system, not only are you wasting tax payers’ money, but you’re going to end up with a currency war. When the World Bank fired me and stonewalled the GAO investigation, the governance crisis at the World Bank assumed constitutional proportions.

L.S.: In order to deal with your problems, you bought a certain kind of bond. Please tell us this story. K.H. The World Bank is an international organization and has immunity from lawsuits brought by its staffmembers. But the World Bank has waived its immunities to bondholders. In 2009 the Chairman of the World Bank’s Governance Committee, the Chairman of the Board’s Audit Committee, and the Chairman of the Board’s Ethics Committee, together with the Dean of the Board, reinstated me when I was trying to end the convention that the Board may only rubber stamp actions initiated by the World Bank’s President. When I was locked out of the World Bank’s headquarters building, I bought a World Bank bond and sued in federal court. L.S.: And what has been the result? K.H.: The short answer is that the US is viewed as a scofflaw nation in violation of its treaty obligations and securities laws in all of the jurisdictions in which the World Bank’s bonds are traded, including state blue sky laws. Last week an Ambassador of one of the World Bank’s members wrote, “I would also like to recognize the work you are doing in trying to bring the Bretton Woods institutions to bear on the need to meet the agreed international states in the course of their operations.” The long answer is that the Judge in the District Court ignored the fact that I was a bond holder and dismissed my suit. So I appealed and the stakes were increased a little bit. The day after I blogged that the Board of the World Bank was taking over the litigation (17), the Court of Appeals issued an unpublished decision that did not contain the reasoned opinion that was required under applicable precedent. Then the clerk ignored my notice that the International Bank for Reconstruction and Development and I were withdrawing the case after it was settled by the World Bank’s Development Committee. I reported the clerical error in the federal courts to the Chief Justice of the Supreme Court, to the rest of the Judicial Conference, and again more recently to the Judge who heads the Judicial Conference Executive Committee. I also reported to the National Governors Association, the National Association of Attorneys General, and the Conference of Chief Justices of the state Supreme Courts that the federal courts were ignoring 187 Ministers of Finance. On April 19, 2013 the Development Committee issued me a pass to attend the Spring meetings of the Bretton Woods institutions. On April 20, 2013 the U.S. Secret Service barred me from attending the rest of the meetings. On April 21, 2013, in a letter that was cleared by the World Bank’s shareholders, I informed Julia Pierson, Director of the Secret Service, that the Secret Service had acted illegally. Later that day the Secret Service issued me an invalid barring notice, which had been signed by a World Bank official who exceeded his authority. L.S.: It’s almost unnecessary to ask you this, but anyway: Did you get any protection as a whistleblower? And what are your thoughts in general how whistleblowers are treated these days in the US? K.H.: That’s a wonderful question. I started out with a law firm to help me with my case. At one point that firm gave me some documents which were very helpful, including a report from the Joint Economic Committee of the US Congress to the effect that World Bank governance is very bad and its accounting is terrible. (19) A couple of years ago, I went back to that firm to thank them for having given me that very important document. And the next thing I knew, that firm referred an assignment to me in the Philippines. Well, I have gotten some very powerful people in the Philippines rather angry. I thought it was kind of dangerous to go to the Philippines, so I said, “I’d be very happy to take that assignment, but I think I’m going to sub-contract the work in the Philippines.” The work dried up when I wasn’t going to the Philippines anymore. I have filed many complaints with local, state and federal law enforcement officials about illegal acts

and not a single complaint has been satisfactorily resolved. It is the job of each and every citizen in a democracy to inform themselves what is happening to their whistleblowers and to protect them. The accountability feedback loop has been largely impaired by the “super-entity” of financial institutions which bought up the media in the U.S. L.S.: There was actually an investigation to address the corruption at the World Bank, which was headed by former Federal Reserve chairman Paul A. Volcker. What do you think about the results of this investigation? K.H.: After studying Development Economics at the University of Amsterdam, I have some excellent contacts. In 2005 the Dutch Ministry of Foreign Affairs asked for an investigation of the Audit Committee into my complaints about the lapses on the Philippines financial sector structural adjustment loan.(20) The Chair of the Audit Committee at the time, Pierre Duquesne, asked instead for an investigation into the Institutional Integrity Department. The Volcker Panel has been thoroughly discredited. (19) L.S.: Have there been other responses, for example in the UK? K.H.: Yes. I met with the UK’s Serious Fraud Office on September 28, 2010, and informed them that KPMG did not follow Generally Accepted Auditing Standards. The Serious Fraud Office called the SEC on October 10, 2010, but the SEC only stonewalled. Two Committees of the UK Parliament published my testimony to this effect. (See note 11) After the SEC refused to respond to the Serious Fraud Office, that was when a UK lawyer advised me, ‘It’s time, Karen, to go to the credit rating agencies.’ All of these problems are going to drive down the US credit rating, there’s no question about it. That is why the Attorney General, Eric Holder, is suing the credit rating agencies. Thirteen other countries have written to me about the illegality I have been reporting to them. Now, I’ve made these points to the state attorneys general, to the state governors and to the Chief Justices of state Supreme Courts. When there are these compliance issues, the states are also responsible for protecting the bond holders under blue sky laws. I finally got a letter from Maryland’s governor, Martin O’Malley, requesting me to have my Senators in US Congress solve this problem. So I went to Senators Mikulski and Cardin, and they didn’t solve the problem. I went to Senate Legal Counsel and to the House General Counsel, and informed them that there was an impasse between the state regulators and the SEC. Then I went to Secretary Hagel and said, “First of all we’re landing in a currency war and second of all, we have a serious disconnect between the states and the federal government. How is this going to be resolved, martial law? The Judicial Conference is confronting a situation where 188 Ministers of Finance have reinstated me, have granted me a security pass, and the President of the World Bank and Secret Service prevent me from entering the building; the clerk of the D.C. Circuit Court of Appeals has dismissed my case in error; the Judicial Conference refuses to correct the clerical error, and the citizens with a few exceptions remain in the dark. What you have is a country which is seriously, seriously out of compliance. So, when you say the World Bank is out of compliance; no, it’s the US government. It’s all of the different pillars of government. It’s the federal government, it’s the judiciary. The Congress isn’t doing such a great job either; they passed an appropriations law with conditionality and failed to require GAO to carry out an audit into corruption that they commissioned. L.S.: Yes. You also assume the repatriation of German gold that was announced by the Deutsche Bundesbank in January of this year has something to do with the problems at the World Bank. Why so?

K.H.: That’s a very good question. The Secretary of the Treasury and the Chairman of the Federal Reserve together with the Chairman of the Securities and Exchange Commission sit on the National Advisory Council on International Monetary and Financial Policies, and these are the entities that have accepted KPMG’s unqualified audit of the International Bank for Reconstruction and Development when the bondholders can have no confidence in the accuracy of the World Bank’s financial statements because of the corruption that I and other World Bank whistleblowers have reported. Germany asked to repatriate 300 tons of gold three months after the New York Federal Reserve refused Germany´s request for a physical inspection of vaults in which Germany´s gold was stored. Instead, the US Treasury offered a paper audit.(21) The Inspector Generals of both the Treasury Department and the Federal Reserve have not inspired any confidence in my case, to put it bluntly. A dozen states are also moving to recognize gold as legal tender,(22) and Texas is permitting its pensions to invest in gold now.(23) It’s part and parcel of this corrupt illegality; this illegality is creating such turmoil that people have concerns about the soundness of the US dollar as a currency. Now, I’ve seen the letters that you’ve written and about why Germany needs its gold. I think probably the best answer is that in a situation that I’ve just outlined where you have illegality from top to bottom, you don’t want your gold anywhere else because you don’t know what’s going to happen to it. I can’t say for sure when the decision of your audit committee was made that required the audit. L.S.: Yes. K.H.: The strength of my case is that I have documented the illegality from the very bottom of the financial system to the very top. The only reason this matter is not resolved is because of this control of the media which is jeopardizing democracy in the United States. I’ve documented a serious case of what is called state capture. Is it going to be resolved? I do know that all of these World Bank whistleblowers have their own contacts with their governments. Although the credit rating agencies have had a front row view, most American citizens haven’t, with the exception of a group called the National Taxpayers Union, which has a blog about me. (25) L.S.: What do you think about the fact that the BRICS nations are creating their own development bank to rival the World Bank and the IMF? K.H.: I congratulate them, and I’m very glad that they did this. L.S.: Yes, but do you think that this creation of a new development bank by the BRICS nations is a result of this corruption at the World Bank? K.H.: Absolutely. L.S.: And since we also raised the issue of gold, is it any surprise to you that these BRICS nations are buying gold, for example, Russia and China, whereas the western Central Banks and the IMF have a very different approach to gold? K.H.: Professor Antal Fekete has written about the significance of the current very high demand for immediate delivery of gold.(24) It is becoming clear that the corruption in the international financial system is risking a situation in which gold supply will cease as persons who hold gold refuse to

relinquish it for paper money, referred to as “permanent backwardation.” We have got to prevent this from happening. It’s the “super entity” of financial institutions that’s unsettling everything; they have got to play by the rules. They can’t have a free pass to corrupt the world. No; that’s ended, that’s over. The fact that most people don’t know about them or what they do or what the BIS is, that has to end. Everybody has to know, and there has to be an orderly transition to a world financial system that makes some sense. This current situation where they control the press makes no sense whatsoever, and it’s got to end. L.S.: Apropos the BIS; is it also involved? And you’ve said most people don’t know what the BIS is, so what is the BIS? K.H.: The answer is yes, the BIS is involved. The BIS, Bank for International Settlements, is the consortium of central bankers. The central bankers are private, they’re not government entities. Anyway, I wrote the BIS to ask them what on earth is going on? I never heard back from them, which is kind of curious. L.S.: Final question. How would you solve the problems we were talking about if the choice was yours? K.H.: I’ve been thinking a lot about the answer to that question. I think there are two very easy answers. The first is that whistleblowers have to be made whole, as required by US Congress for the US contribution to the World Bank capital increase. The second is that the democratic deficit in the international financial system where people don’t know what the BIS is has to end. People don’t know it’s their Ministers of Finance that are dealing with these issues and what their Ministers of Finance are up to. People have to become aware of this because it’s dangerous to have this democratic deficit. So that’s what I would change, I would change the flow of information. L.S.: Yes, but how would you change the flow of information? K.H.: Well, that’s a serious, serious question. There has to be awareness that people are getting their information filtered, and I think once they’re aware of it, this is going to change. I think a lot of the solution is going to come from the internet. That’s why there are so many efforts now to limit the Internet. I went to a conference on this, and it was no surprise to me that the person who was running this conference didn’t think it was suitable for me to address the conference. You know, need I say more. There is censorship, and the censorship has to stop. One of the very positive developments is that people expect that soon there will be very wide access to the internet by all of the people on this planet. So we have to ensure that the Internet remains functional, and that we pay serious attention to what happened with the death of Aaron Swartz; this is no accident. L.S.: Yes, yes. But isn’t also the internet a wonderful surveillance instrument for intelligence agencies? K. H.: Yes. Recently I’ve gotten to know a US whistleblower who knows a great deal about domestic surveillance: Mark Novitsky. People have got to become aware about what all is going on, and that should help us make a begin in solving this extremely serious and dangerous problem. L.S.: Thank you very much for taking your time, Dr. Hudes! K. H.: Thank you very much for having me!

SOURCES: (1) See Laurence H. Shoup / William Minter: “Imperial Brain Trust: The Council on Foreign Relations and United States Foreign Policy“, Authors Choice Press, New York, 2004. For a shorter introduction into this topic see Andrew Gavin Marshall: “The Council on Foreign Relations and the ’Grand Area’ of the American Empire”, published December 13, 2011 here: (2) See Anna Stolley Persky, “Truth or Fiction? Foreign Interests in U.S. Elections”, Washington Lawyer, published November 2012 available here: elections.cfm (3) See Stefania Vitali, James B. Glattfelder, and Stefano Battiston: “The network of global corporate control“, ETH Zurich, published September 2011 available here: (4) See Hugo Grotius: “On the Law of War and Peace”, Book XV, available here: (5) § 7082 of the Consolidated Appropriations Act, 2012 (Pub. L. 112-74). available here: (6) Tekoa Da Silva, World Bank Whistle-blower: “Precious Metals To Serve As An Underpinning For Paper Currencies”, May 6, 2013, available here: (7) See Randolph M. Silverson, “The Contributions of International Politics Research to Policy”, Political Science and Politics, published March 2000, available here See page 62 (8) Jacek Kugler, Ron Tammen and Brian Efird: “The War Presidency: Options Taken and Lost”, International Studies Association Meetings, Montreal, Canada, published February 2004, available here: (9) See NSNBC International, “World Bank Whistle-blower. Confidence in the Dollar as an International Currency Is Waning. The End of Bretton Woods ? published May 2, 2013 available here: (10) Analysis on the Rule of Law at the World Bank in 2004 by the Sentia Group available here: See pages 16-23 (11) Development Committee Communique, published April 25, 2010 available here: (see paragraph 6) (12) House of Commons International Development Committee, Written Evidence for the inquiry into The work of the Independent Commission for Aid Impact, published July 7, 2012 available here:

House of Commons Public Administration Committee, Written Evidence for the inquiry into Public engagement in policy making, published November 2, 2012 available here: m The European Parliament Committee on Budgetary Control Hearing on Whistleblowing May 25, 2011 available here: 540EN.pdf (13) Foreign Policy, Zoellick Pick Roils Romney Campaign, August 8, 2012 available here: (14) K. Hudes and S. Schlemmer-Schulte, “Accountability in Bretton Woods”, 15 ILSA J. of Int’l & Comparative L. 501 (2009) Available here: (15) Wikipedia entry for “Plebgate”, The Week magazine 24 September 2012 called Mitchell’s public flogging “Gategate” available here: (16) § 7082 of the Consolidated Appropriations Act, 2012 (Pub. L. 112-74). Available here: (17) Foreign Policy Magazine, The Romney National Security Transition Team That Might Have Been, November 7, 2012, Available here: t_might_have_been (18) Letter from Joint Economic Committee of the U.S. Congress to James Wolfensohn dated April 8, 2005, Available here: (19) Email from Netherlands Ministry of Finance dated January 13, 2005 that my allegations should be discussed by the World Bank’s Audit Committee. (20) Common Dreams Newswire dated April 6, 2010 concerning intimidation of staff in the Institutional Integrity Department during the Volcker Panel investigation. Available here: (21) Office of the Treasury Inspector General, Audit of the Department of the Treasury’s Schedule of United States Gold Reserves Held by Federal Reserve Banks as of September 30, 2012, available here: %20Testimonies/OIG13031.pdf

(22) States seek currencies made of silver and gold, CNN Money, February 3, 2012, available here: (23) James Rickards: Texas Law Would Protect Its Gold from Government Seizure, Monday, 25 Mar 2013, available here: (24) National Taxpayers Union, Whistleblower Protections: A Living Example of Their Relevance, December 20, 2012, available here: (25) Antal E. Fekete, American Bases In Germany and the Gold Basis, January 28, 2013, available here: Related posts: Money lies disguise banking truths Economist Norbert Haering, discussing ”the veil of deception over money”, argues that closely limited and clearly specified interests distort deliberately the true... The Anti-Thesis of the New World Order / Die Anti-These der Neuen Weltordnung Vis-à-vis a pile of “Silver Keiser Thalers” I talked to Max Keiser about the status of his “Crash JP Morgan” campaign. Moreover:... “Europe and America will not allow deflation to take root” The international business editor of The Daily Telegraph, Ambrose Evans-Pritchard, talks in this exclusive interview about, among other things: his conviction that... Posted in Finanzen, Geopolitik, Precious Metals | Tags: 1944, Aaron Broches, Aaron Swartz, Antal Fekete, Bretton Woods Conference, BRICS, CFR, currency war, Deutsche Bundesbank, Eric Holder, European Parliament, Financial System, Flow of Information, GAO, Gold, Hugo Grotius, IMF, Jacek Kugler, Jim Wolfensohn, Karen Hudes, Larry Summers, Mark Novitsky, Media, National Advisory Council on International Monetary and Financial Policies, NATO, Paul Wolfowitz, Philippines, PNB, Robert McNamara, Robert Zoellick, SEC, Senate Committee on Foreign Relations, Serious Fraud Office, Swiss Federal Institute of Technology, Tekoa Da Silva, UK, US Congress, US Federal Reserve, US Treasury, USA, World Bank II. PLANET EARTH One of the big trends last year continues into this year: weird weather. ose of us who live in farming communities or rural areas are very conscious of the weather. e weather is sufficiently weird that now there is tremendous consciousness everywhere of the weather. As we go through the changes of the weather, it’s scary for a lot of people. is year, we had a drought. Let me just read you some of what the Wikipedia says about the 2012-2013 North American drought. It’s an expansion of the 2010-2012 southern United States drought, which began in the spring of 2012, includes most of the U.S., parts of Mexico, central and east Canada. It currently covers 80 percent of the contiguous U.S. e drought has inflicted and is expected to continue to inflict catastrophic economic ramifications for the affected states. ffie drought has exceeded in most measures the ’88-’89 North American drought. It’s on track to exceed that drought as the costliest natural disaster in U.S. history. e harvest produces massive new wealth every year globally.

It’s a huge gi . Sometimes when people say, “Oh, there’s no way we can deal or pay off the debt,” I think they underestimate the extent to which the earth just burps forth incredible new wealth every year. When that gi diminishes, there can be tremendous pain in the economy. One of the two movies that we chose for Movie of the Year on the Solari Report for 2012 was Michael Murphy’s, “Why in the World are ey Spraying?” I strongly recommend if you haven’t seen it, please do. It’s available for free on the Internet. Murphy explores the extent to which the weather patterns are related to what’s going on with the global spraying program and HAARP. ese are questions well worth asking. At the end of the day, there’s no way to know how much of the weather patterns relate to the earth’s rotation through the galaxy or sunspots and space weather, which I suspect is a great deal, and how much relates to human activity, whether it’s just 7 billion people and counting or invisible weaponry and technology. It’s impossible to say. I assume it’s a combination. I always get frustrated with the different official stories about climate change because they are woefully missing an integration of all these phenomena, including chemtrails and HAARP. If you don’t know much about those topics, I strongly encourage you to listen to the Solari Reports we’ve done on them; they’re excellent. Without those phenomena integrated into the conversation, none of it makes much sense to me. e Big Lie that you’re going to hear this year, especially because the democrats have won, is that we need to increase government power to respond to climate change. We started to hear that drum beat again a er Hurricane Sandy. A er the drought, one of the big disasters in North America this year, Hurricane Sandy was quite an experience for those subscribers who live in

New York because you saw the extent to which modern civilization can get shut down and government can be unhelpful in what happens.

As soon as Hurricane Sandy was over we had both Mayor Bloomberg, a Republican, and the President talking about the need to do things for climate change, so beware of that in 2013. If anything, my expectation is that we’re going to continue to see more stressful weather patterns in 2013 and 2014. So it’s a period we need to move through. What each one of us can do is think about what is likely to happen in our location and be prepared for a hurricane, a drought, and a tornado. ink about disaster recovery. Be prepared for weird weather and more and more focus on the importance of the planet and the human race coming into alignment with the natural conditions of the planet.

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