For the last several years, a rather mysterious anomaly has continued to pop up on my radar, and those are the weird caches of billions, and sometimes trillions, of dollars worth of US bearer bonds found around the world. These massive financial instruments are always quickly deemed fake or counterfeit by the US Treasury, an assertion that, as we shall see, doesn’t quite pass muster. Their very existence, and their continued presence since 2009, has befuddled many commentators including myself.
Bearer bonds are similar to an IOU. When an entity like a government or a corporation needs liquid cash, they can borrow it from wealthy individuals and issue them a bearer bond in return. That bearer bond usually includes some terms of the agreement such as the original amount of the loan, the time when the bond matures, and the interest rate that the government or corporation must pay to the individual. The interesting thing about bearer bonds is that they are owned by whoever physically holds them. In other words, they do not require a paper trail or written record to establish ownership, which makes this type of bond particularly useful to those trying to remain anonymous. Considering all of this, you can probably imagine the shock and suspicion caused by a 2009 incident in Italy when two middle-aged Japanese men were arrested (and later released without being charged) for having in their possession 239 US bearer bonds worth 500 million dollars each, and 10 bearer bonds worth a billion each. That’s a total of $134.5 billion dollars of IOU’s given to somebody from a US institution.
What would have been a one-time occurrence didn’t really pique my interest, despite the fact that the Italian police released the two men and remained tight-lipped over the issue. But when two more similar incidents popped up, this time in the shady financial havens of the Vatican and Switzerland, and with bonds dated from 1934 totaling $10 trillion, I began to suspect something was going on.
All of these bonds were deemed by the US Treasury to be fake, and they appear fake. Many of the bonds have blatant typos, none seem to match the patterns of actual bonds, and the highest denomination bond ever printed by the US Treasury was $1 million. Some of the bonds even have pictures of the American space program, depicting the space shuttle taking off and a portrait of JFK. Being bearer bonds, it would make sense to counterfeit them and pawn them off to a fool as no record follows these bonds.
So what’s the problem? Why not just write it off as another hair-brained scam? The answer to that is simple: there are no billionaires out there stupid enough to fall for it, and no scam artist would ever attempt it. If one were to counterfeit bonds, why make them worth billions of dollars? By putting an unheard of denomination on these bonds, any scammer would immediately open themselves up to scrutiny, and the strange appearance of the bonds themselves would give away the ruse. Even if the bonds were counterfeits, why would the scammers go through the additional hassle of creating fake Federal Reserve of Chicago chests and certifications on top of all of that? Why give the police more evidence to pore over when the mark goes to redeem his matured bonds? And why were those found holding these supposedly fake bonds released by the authorities?
With the US Treasury already dismissing these bonds, it should be an open and shut case, but not quite if you look at the bonds themselves very closely. You’ll notice that these bonds are not labeled US Treasury bonds, they are “Federal Reserve Notes.” As the Federal Reserve is a private institution, and bearer bonds may be issued by government entities and corporations, we may be looking at a secretive operation being run entirely by the Federal Reserve and outside the scope of the federal government and congressional oversight. The given assumption, and the framing of the argument, that these are “real” US Treasury bonds is merely a red herring. As these were meant to be bearer bonds, and some appear to have been traded for gold bullion, this operation could even be existing outside of the public banking sector, making it hidden from economic and corporate espionage. By releasing the holders of these bonds, and not charging them with a crime, any possible record and further scrutiny of these kinds of bonds is avoided. This means that the leaders of the West may have a hidden instrument of finance to dump trillions of dollars of funding into projects outside the purview of congress.
As time passed, more of these little caches of bearer bonds would appear, this time in the Philippines, and under much stranger circumstances.
“The elders of the Umayamnon tribe told me an American plane crashed in their river in the 1930s,” Estrella, 47, says by mobile phone from a footpath between the tribal village and Davao, the largest city on the Philippine island. “The river dried up in the 1990s, and the natives went into the plane and found 12 boxes that contained $300 billion in bonds.”
Each box, emblazoned with the Great Seal of the United States and the words “Federal Reserved Bond,” held five gold coins struck with a portrait of George Washington on one side, Estrella says. They rested atop stacks of certificates purporting to have been issued by the Federal Reserve Bank of Atlanta in 1934 and redeemable in gold bullion. The notes bore the signature of then Treasury Secretary Henry Morgenthau Jr.
Again, notice the fact that these bonds are associate with the Federal Reserve, although they are notarized by Treasury Secretary Morgenthau. Also notice the blatant typo- “Federal Reserved Bond,” another strange feature that any counterfeiter with half a brain would have made sure to get right. I believe that these typos were deliberately inserted into the documents with this type of situation in mind, IE the recovery of these bonds by individuals operating outside of the secret arrangements and system set up by the Federal Reserve. By making the bonds for their hidden financial instrument appear to be blatant counterfeits, and confiscating them when they turn up, the Western banking elite can keep their system secret.
All of which brings us to the most recent incident involving these bizarre bonds, and how this scenario might differ slightly from those before it.
This time, a Venezuelan man attempted to redeem just one bearer bond worth $1 billion, much less than the trillions attempted previously. However, this man was arrested, and may face charges that could land him in jail for 15 to 20 years. The Venezuelan man’s story is also full of holes and logical fallacies.
According to the Secret Service, Barrios Briceno said that his contact in Colombia gave a loan to someone who provided the bond as collateral but never repaid the debt. The lender then asked Barrios Briceno to try to cash the bond, which he said he picked up from the lender’s sister in late June at Miami International Airport.
If you know about the Iran-Contra Scandal, the CIA ties with the Medellin Cartel, or have ever read the late Michael Ruppert’s work on the CIA drug trade, you won’t have to ponder very long why Western leaders would want to move a massive amount of money to Colombia in absolute secrecy. The strange part about all of this is that the original bearer of the bonds could not redeem them, so what made the Venezuelan think he could?
The defense said in court that Barrios Briceno went to Washington, D.C., in early August and met with somone who “verified” the bond was valid for a fee of about $30,000. Barrios Briceno also said he met separately with representatives from four major financial institutions and that one of them offered $180 million for the bond. The lawyer said nobody gave his client any reason to think the bond was counterfeit.
The Venezuelan man may have had his bond verified by somebody on the inside of the hidden system. The fact that he was offered only $180 million by one of the “four major financial institutions” he met with may have represented an offer of hush money to stop these bonds from from making their fifth appearance on the news and in society. This would explain why this man was arrested, unlike the others like him that came before.
Exactly what this weird bearer bonds scandal represents is still uncertain at this time. What is clear is that the Western leaders have, for the better part of a century now, been pumping billions and even trillions of borrowed dollars into unknown projects and endeavors, and may have left some of those lenders holding the bag. What was all of that money spent on? Your guess is as good as mine.