Not long ago, a man tried to spend a $1 million bill at a Wal-Mart. He was attempting to buy $476 worth of goods. He probably hoped for "change." The absurdity of that activity was obvious to everyone. Of course, there are no real million-dollar bills. Even if there were, Wal-Mart could never cash one. And seriously? He was trying to buy a vacuum cleaner and groceries? Why not a Ferrari? There's nothing about the story that is credible whatsoever. The reason that real criminals don't counterfeit million-dollar bills is because they are only useful as novelties.
In mid 2009, two Japanese individuals were caught smuggling fake T-bonds with denominations of $500 million and $1 billion. These are as absurd as the million-dollar bill. They would be impossible to spend and the only way to collect on them would be by approaching the U.S. government who would immediately denounce them as fake. The story went mostly unnoticed even though other $100 billion "finds" were made later the year. In fact, the Treasury Department declared all of this as simple counterfeiting. Given the absurdity of spending or cashing counterfeit bonds, the question becomes "Why?"
The issue became more complicated today when it was announced that a stash of $6 trillion in additional fake bonds was discovered in $1 billion denominations. The authorities again suggested that this was criminal activity with the intent to defraud. The sheer magnitude and persistent nature of the operation, however, points much more to financial terrorism than simple counterfeiting. $6 trillion is approaching almost half of the outstanding Federal debt (currently half would be a little less than $8 trillion). That is 6,000 bonds denominated at $1 billion each. Six thousand! What would a criminal do with that? If the purpose was simple monetary gain, it is far too much to deal with. And, that is just what we caught. There is no telling how much more made it through without being caught.
Supposedly, the scheme was to show up at a Swiss bank and claim that the bonds were inherited in order to obtain a loan against them. Clearly, no one could get $6 trillion in loans and there aren't enough Swiss banks to spread it around. It is as ridiculous as the million-dollar bill at Wal-Mart. The problem here is that it wasn't a redneck at Wal-Mart. this was a very sophisticated and continuing operation.
We have studied this story in detail since the first $134 billion in mid-2009. The only reasonable explanation is that the bonds were intended for use in a massive scheme to destabilize the global currency markets. This fits precisely with our Phase Three warnings. Our suspicion is that the bonds would be used as counterfeit collateral in a massive "dump the dollar" scheme. This would be very similar to naked short selling of Treasury bonds. The New York Times article stated:
In the statement, prosecutors said that the false bonds "posed concrete and grave dangers for the stability of the international credit system."
Simple criminal activity? Not according to prosecutors. In fact, based on their wiretaps, this plan was directly connected to planned terrorism:
Prosecutors said they had also picked up wiretapped phone conversations in which the suspects talked about buying plutonium from Nigerian sources. They did not provide further details, but Mr. Colangelo said their efforts did not come to fruition.
That's reality. There is no reasonable way that this was a run-of-the-mill criminal operation. But what did U.S. authorities say?
But American officials said the phony bonds were fairly routine. "This is just a scam, very frequent, very common," said Brian Leary, a spokesman for the Secret Service. "Our agents provided Italian authorities with expertise that these notes are fictitious instruments, as we refer to them, which are commonly used as collateral, say for a loan."
Move along. Nothing to see here. This is as common as a million-dollar bill at the local Wal-Mart.
Watch out, this is another Secret Weapon in the arsenal created to attack our economy. Phase Three is coming and intended to destroy the U.S. dollar and the sovereign credit of the United States. Get prepared. Read the book (www.secretweapon.org).