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41  Economy / Economics / Re: Economic Totalitarianism on: April 01, 2017, 07:37:17 PM
"all your base are belong to us"
cut-scene from the 1992 Mega-Drive port of the 1989 arcade video game Zero Wing.

"The Pentagon has claimed, year after year, that the reason it can't
account for the money is because its computers don't communicate with
each other."  Cynthia McKinney (D-GA) asks questions ...

It seems that the Pentagon just didn't have the resources to ... but wait ...
"One of the "magical" capabilities of PROMIS, one has to assume, is that it is
equipped with artificial intelligence and was apparently from the outset "able to
simultaneously read and integrate any number of different computer programs or databases,
regardless of the language in which the original programs had been written or the
operating systems and platforms on which that database was then currently installed." [1]

Hmmmm .... Sooooo what's this PROMIS thing? where did it come from? and what were the
legacy systems it replaced? and why doesn't the Pentagon use it? Where to start?

The period 1945-1970 saw paper based records such as double entry book-keeping gradually
replaced by computer assisted accounting. These systems did not provide much in the way
of management tools until the early 1980's, hence in the early 1980's there was a new
requirement - management information systems (MIS) that could access legacy systems already
in place to extract key data, collate it, and present it as an aid to management oversight
and decision making.

One such enterprise in need of computer software in the 1970's was the Nugan-Hand Limited.
"Nugan Hand Ltd. was founded in Sydney in 1973 by Australian lawyer Frank Nugan (who was
reputedly associated with the Mafia) and former U.S. Green Beret Michael John Hand who operated
in Northern Laos as part of the Phoenix Project. They were assisted in this by Paul Helliwell,
one of the primary OSS agents in the original Yamashita gold operation." [2]
"U.S. Military, Admirals and Generals, as well as intelligence community officials,
supposedly either "retired", or "on leave", operated Nugan-Hand, and aided thereafter Household
and its numerous units and subsidiaries. The "tracking the money" project was conducted over-all
by Household International with the assistance reportedly of Systematics, a banking computer
services firm, originally a subsidiary of an Arkansas-based operation." [2]

The tasks are familiar to many enterprises, to track people, legal entities, balance accounts,
and to record the linkages, payments and changes in near real time. Crossing boundaries and
custom adaptation causes problem, but standardising software objects solves many problems.

The Justice Department "misappropriated" PROMIS in 1982 for three separate projects:
"(1) NSA's deployment of PROMIS to banks to enable NSA to track wire transfers of money and
letters of credit; (2) Israeli Intelligence's sale of a trap-door version of PROMIS to
foreign governments so Israel and the United States could covertly intercept their intelligence
secrets; and (3) the CIA's deployment of PROMIS throughout the US government as the standard
database software ..." [3]

A feature of systems that become more and more interconnected, is the potential for emergence,
ie novel and unpredictable forms of behaviour. The addition of AI into the mix suggests that this
change happened to PROMIS at some time in the early 1990's : "... penetrate every banking system in the
World. PROMIS software could be used to influence and predict financial markets worldwide." [4] 00:55:10
"Dyncorp was heavily involved in the evolution of PROMIS software" [4] 00:56:00

Looking at this through gamer's eyes, it seems to me that this evolution of the software is like
using the "cheat" codes in a FPS game to gain invulnerability, 100% health, and infinite ammunition.
It changes the way the game is played, and no sane person will want to play that game with you. 

I doubt that Inslaw will ever be fully compensated for what was taken from them. [5]
For a peek at the general structure of PROMIS, see the Inslaw website. [6]

Questions about the past are stll umanswered. As for the future, could you live with
an Artificial Intelligence whose prime directive is to keep its existence a secret? 

[2] Collateral-Damage-911-black_eagle_fund_trust.pdf
[*SPOILER ALERT* reading this .pdf is a bit like hearing the final score in any TV game]

[3] The last Circle - Chapter 17- The Inslaw Affair p254

[4] {unverified}

[5] - The Inslaw Octopus


42  Economy / Economics / Re: Economic Totalitarianism on: April 01, 2017, 07:36:03 PM
@OROBTC - I try to hang on to my wicked sense of humor :-)

The money they are hoping to tax is from the black budgets of the intelligence agencies
plus The Black Eagle Trust's modern derivatives. I a moment of optimism, I'd thought
they would have figured that farce out before blaming the innocent.

And remind me - "If you have nothing to hide, you have nothing to fear."
Didn't the guy who said that end up dying in a bunker after poisoning his
children and shooting his wife?
43  Economy / Economics / Re: Economic Totalitarianism on: March 28, 2017, 09:42:00 PM
gold sovereigns are about 22 carat gold. (95% IIRC) I seem to recall that copper is the
major impurity.

I calculated 4000MT taking the Gladio narrative at face value, ie that Aldo Moro was
murdered as part of a botched operation by the Red Brigades. An alternative explanation
is that he was murdered by others connected directly to Gladio. He died in 1978. If that
is what happened and if Gladio was closed down in 1979, then the revised gold budget
may be over 3100MT. There were almost certainly other similar CIA operations elsewhere.
44  Economy / Economics / Re: Economic Totalitarianism on: March 27, 2017, 09:03:18 PM
@OROBTC - I made the best estimate I could of the financial structure of Gladio based
on statements made on the BBC documentary. For example, the average US wage in
1951 is quoted at $2799 pa, which equates to 80 ounces of gold. Hence is the statements
made are literally true, and allowing for modest amounts of materials support also paid
in gold, the operation had a budget of 4000 metric tons of gold over 46 years.

I am of the view that the early evidence of counterfeiting of gold sovereigns tends to support
that structure, at least until the 1960's began. I seem to recall reports of fakes that could
only be detected by analysis of the proportions of non-monetary metals. I have no claims
to expertise in this area, so until further data appears, it's a guess.

I could argue further, but that might miss the point that the CIA was willing to commit a
huge quantity of gold to Gladio in its early stages, and that practical limits to the
amount of gold that could be distributed, particularly just after the US came away from
the Gold Standard as wage inflation outpaced gold pricing.
45  Economy / Economics / Re: Economic Totalitarianism on: March 25, 2017, 08:44:53 PM
"I spent a lot of money on booze, birds and fast cars.
The rest I just squandered" - George Best, Football Star

Gladio is just one footprint in the snow. It is reasonably well documented from
1945 to 1995, as a result of confessions given in Court. Some things can be
inferred, and cross-checks an be made. And why is this important and interesting?
Because with some educated guesses, the Gladio budget can be estimated.

The Gladio operatives were paid in gold coin, at a rate of US$1000 per month,
around 1978, close to the average wage of the day.  For groups of 12, $20,000 per month.
If payment in gold kept pace with average wages, that gives 5000 ounces basic pay total
per footsoldier. For 50 years, plus expenses, excluding bribes, I make that 4,000 tons
of gold in round figures, or an average of 80 tons a year.     

For now, 8,200 stay-behinds seems a workable number to subvert a Soviet invasion of Western Europe.

It's likely that the gold coin used as payment was the "British" sovereign. The coins
circulated freely within Europe after WWII, so is there evidence of good counterfeit
sovereigns appearing while Gladio was running?

" It is difficult to quantify the scale of the problem with any certainty
but it is probable that the number of counterfeits was vast. The Treasury
estimated that there were up to 300 million sovereigns in circulation in
the world in 1955. The Milan counterfeit factory operated by Beraha was one
of the first to be closed by the Italian police.
It was estimated to be able to produce up to a thousand coins a day." [1]

"Beraha was to later boast (Note 1) that he used more gold in his coins than the Royal Mint." [1]

"Unfortunately we are not in a position to make public use of the argument
that the copying of sovereigns may prevent us from employing them in our own
semi-clandestine activities in the Middle East." [1]

So, whether Gladio was fully funded by Nazi or Yamashita's gold, the evidence
suggests that a vast quantity of hidden gold was spent in Western Europe.

While all this seems attractive, there are some practical problems. Sovereigns
weigh just under eight grams, so 4,000 tons of sovereigns would be close to
500 million coins. That would double the number of sovereigns believed to be
in circulation. Also, once a fake is detected, questions such as "Where did you
get this?" are asked, somewhat inconvenient for your covert activity. Despite this,
the costs of this European operation can be estimated to a figure well within
an order of magnitude, and this sets a lower limit to the funds available to
the Creature in the years after WWII.

Some things follow from this.

First, this is on the scale of the combined gold reserves of Italy and Germany.

Second, this Gladio gold is profit, not revenue. It goes straight to the bottom
line of whatever balance sheet you happen to be looking at. If you are looking
at an Input/Output Matrix, it's in the "value-added" line. Or if you are George
Best, it's in "the rest I just squandered".

The final thing is that somebody has to keep track of this spending. Trillions
of dollars just don't go walkabout. [2]

It's not easy to explain. You either Get It, or you don't. And DYOR.


Cynthia McKinney (D-GA) asks questions about:
Dyncorp Sex-Trade, Pentagon Missing $2.3 Trillion & 9/11 Wargames
"And who has the contract?"
46  Economy / Economics / Re: Economic Totalitarianism on: March 18, 2017, 09:08:23 PM
"How can you kill women and children?"
"Easy, ya just don't lead 'em so much! Ain't war Hell?"
Door Gunner - Full Metal Jacket (Film 1987)

Vincenzo Vinciguerra : When you were on the Right you were not supposed to attack the State or its
representatives. You were supposed to attack civilians, women, children. Innocent people outside
the political arena. For one simple reason: To force the Italian public to turn to the State
to turn to the regime and to ask for greater security. This was precisely the role of the Right in
Italy. It placed itself at the service of the State which created a strategy aptly called
"the Strategy of Tension" in so far as they had to get people to accept that at any moment over a
period of thirty years, from 1960 to the mid-eighties, a State of Emergency could be declared.
So, people would willingly trade part of their freedom for the security of being able to walk the
streets, go on trains or enter a bank. This is the political logic behind all the bombings.
They remain unpunished because the State cannot condemn itself. [1] 00:51:20

US Intelligence Field Manual
Top Secret : There may be times when host country governments show passivity or indecision
in the face of Communist subversion. US Army Intelligence must have the means of launching
special operations which will convince the host country governments and public opinion of
the reality of the insurgent danger. [1] 01:38:25

Judge Gerardo D'Ambrosio : At that moment we had Giannettini in for questioning. We were
paying attention to the role played by him in this affair. We had discovered that
Giannettini was one of those who believed in the so-called "Revolutionary War".
He had spoken of it at a conference. This conference had the patronage of the Chief of
Staff of Defence. What was also interesting was that Giannettini's speech wasn't only on
"revolutionary War" but on measures to be adopted to prevent the take-over of power by
the Communists. This strategy of counter-revolutionary war advocated provoking of
social tension to demonstrate the danger of the Left. A danger that could be demonstrated
by carrying out attacks that could be ascribed to the Left, and through infiltration
of the Left. [1] 01:30:32

Colonel Oswald Le Winter CIA - ITAC Liaison Officer, Europe : For instance Guido Giannettini
was on a scale of 5 and he only received $1000 a month. [1] 01:34:42

Scene: A Prime Minister's Office, early 1950's West Germany.
The Private Secretary enters.
Secretary: Prime Minister, A NATO General is here. He wants to see you immediately about
an assassination list.
PM: What list? Show him in now!
General: Good Morning Prime Minister. I've got some good news.
PM: Do tell, for a moment I thought my name might be on the list.
General: How very insightful, your name is actually on the list.
PM: And the good news is that we have the assassin in custody?
General: I'm afraid you can't do that, the NATO Treaty's secret amendment forbids it.
One of your predecessors agreed as a condition of joining NATO that any Right-wing
crazies drawing up assassination lists would be given complete immunity from prosecution.
PM: But you said there was good news?
General: Once I found out that the operation was unauthorised, of course I gave the
guy the frowning of a lifetime. I assure you that this was just a paper exercise.
PM: That's it? And you made sure this can't happen again? Who planned this?
General: That's above my pay grade Prime Minister. I can tell you that it is part
of Operation Gladio, and that Gladio, and probably NATO, are run by the CIA desk in the
State Department of the USA.   
PM: So to arrest the people planning to assassinate me, we have to leave NATO. But if I
tell people that I am thinking of leaving NATO I could be assassinated. Got it. 
And ... Scene.

"That's some catch, that Catch-22" he observed. "It's the best there is" Dan Daneeka agreed.
Catch-22 (Film and book)

General Truscott (retired) was the senior CIA representative in Germany 1951-1953.

A decade or two later, Italy may have surpassed Germany's Farce. After a series of terror
attacks, three policemen die in a car-bomb at Peteano. :
Vincenzo Vinciguerra : After the attack at Peteano, a mechanism was put in place which was used in all
such cases : A mechanism of cover-up : The Carabinieri, the Ministry of the Interior, the Customs and
Excise Police, the civilian and military secret services all knew the truth behind the attack, that
I was responsible, and all this within twenty days. So they decided, for totally political reasons,
to cover it up. General Mingarelli undoubtedly knew of the existence of Gladio.
He knew of a structure running parallel to that of the Armed Forces and which was operating in
his jurisdiction. Being Head of the Carabineri in the Udine region he is a key person.
This whole thing started with him even if he only gave the orders. Mingarelli was convicted for
crimes related to the cover-up of Peteano. [1] 01:02:04

Judge Felice Casson :
General Mingarelli was Commander of the Udine Carabineri. It might seem strange that a 
Commander of the Carabineri was party to the cover-up of an attack where three of his men
died. At first he received a sentence of ten years and six months, later
reduced to two and a half years, a sentence he is now serving. [1] 01:02:04

Vincenzo Vinciguerra, speaking in 1992 : "I want the truth that the State denies and I can't even
contemplate accepting the rewards the State gives to those who lie and are obedient.
Because thousands of people have been deceived, jailed, and killed." [1] 02:21:23

It appears not much changed after Peteano.

So what to take away from this? That the Creature has successfully diverted responsibility
for its actions on to NATO, and perhaps even on to the CIA? Why has so much blood and treasure
been spent? and for what?

Senator Roger Lallemand : At first, financing was guaranteed by the British and the Americans.
We have established that the Belgian stay-behind were given gold coins, notably gold coins,
money for agents or instructors in time of war. [1] 00:36:33

Something similar was ongoing in Japan in these years,[2] and international drug trafficing
grew as the need for false flag attacks decreased.[3] [4] 00:16:17

[1] BBC Timewatch Documentary series 1992 "Gladio";_ylt=AwrTca_5q89UIAwAVlsnnIlQ;_ylu=X3oDMTB0MzkwOG5yBHNlYwNzYwRjb2xvA2dxMQR2dGlkA1lIUzAwNF8x?p=bbc+gladio&hspart=mozilla&hsimp=yhs-001
see also


[3] Chip Tatum : Black Ops Interview with Ted Gunderson

[4]"What I have been afraid to blog about the ESF and its history - part 5" Eric Decarbonnel

47  Economy / Economics / Re: Economic Totalitarianism on: March 11, 2017, 11:33:19 PM
"lies, dammed lies, and government statistics"

Suppose you are US Treasury Secretary in 1947. You are in possession of more
than three-quarters of the world's monetary gold, and answerable to no-one
for the actions you take. To this responsibility is added the plundered treasure
of Asia, but this is a State Secret. If this treasure were kept hidden away, no
additional problems would be created, but circumstances dictate that some of the
money must be used to finance covert operations. What to do? (see also [2] 7.43)

The immediate requirement is for two sets of books. This is a situation where
"hidden in plain sight will not work." Within limits, the practice of keeping
two sets of books is perfectly legal. Problems occur when State Secrets must
be kept secret. For example, lying under oath is immediately a criminal offence.

To forestall such problems, immunity from prosecution gets written into job descriptions.
Thus, in some circumstances, the exercise of Economic Totalitarianism can be
deduced from the text of treaties, though the wording would apply to both "black"
budgets and to the "dark" budgets, dark in the sense of "dark matter".

The result is somewhat like finding footprints in the snow, and then trying to
deduce the size of "The Creature," its source and its destination, and hence its

Taking the Treasury's ESF as the Source, the next downstream nexus after the Fed
was the primary dealers, the West's major banks, who then have to run dark accounts,
and have to finance dark projects operated by US Government Departments. This
introduces a further level of complexity. The managers of this money have a
strategic advantage in the money markets. Through the information asymmetry inherent
in the dark network, the projects pursued can deliver higher profits, also any
loss-making activities can be moved from dark into black budgets. [1]

The result is a large and growing mechanism of finance, unaccountable to the
public institutions of government, and largely immunised against prosecution,
but ultimately struggling to find a reason for its existence.   
So where might this Creature's "footprints" be found?

* Computer software : Managing this vast fortune, and providing a Management Information
System (MIS) is a bespoke requirement that cannot be made public. A far simpler route is
to copy or steal the requisite software, and to then conceal the facts than to purchase the
software and its support on the open market. Provided the source code can be secured,
the system can then be covertly modified to match, perhaps illicit, requirements.

* Company accounts : Legal provisions in Corporate accounts provide loopholes that allow
covert projects to be concealed, both financially and physically. [3]01:04:00

* Fraud : This is not the usual form of fraud. This is financial fraud planned, created
and executed by government actors, both for profit and to ruin competitors.

* Cover-ups : That giant sucking sound is the sound of Trillions being vaporized. Covering
that up is a non-trivial task.

* Paramilitary action : Untraceable wealth is vulnerable to theft. Recovery via legal
argument is thus problematic and counterproductive, hence the need for private military

I'm offering these thoughts on a What If? basis. My next tasks are to try to pull
some facts together, and to put flesh onto the skeleton. After that, who knows what
direction this will take. My immediate interest is to assess the impact of secret funds
on the US and other economies, to get a better view of how economies work, but this
already brings some big questions.
[1] Note also that money may have been moved from Nazi Germany to Western Banks 1941-1945
adding to the secrets that these banks already have.

[2] "What I have been afraid to blog about the ESF and its history - part 2" Eric Decarbonnel

[3] Catherine Austin Fitts at the Secret Space Program Conference 2014 San Mateo.
48  Economy / Economics / Re: Economic Devastation on: March 04, 2017, 09:19:53 PM
"the tax rate in the Roman empire before sh*t hit the fan. It was 2% "

If you believe that the tax rate of the Roman Empire was 2% for other than a brief moment
of time, I have a bridge you may want to buy for your Collection :-)
49  Economy / Economics / Re: Economic Totalitarianism on: March 04, 2017, 09:10:12 PM
lest this appear to be an invitation for the reader to pass judgement,
I'll say that is unintended.  If, however you do not know whether to
laugh or to cry, I suggest that laughter is always the best choice.

You should also know that if someone creates a cryptocurrency which
is a real fiat-killer, it will bring with it tremendous power and
great responsibility. The owner(s) of this bitcoin v02 will face
the same moral dilemmas outlined in my earlier post.

You, as new owner(s) will immediately come into conflict with what
I will later refer to as "The Creature" - and all its vested
interests. So, be careful with your dreams. 

"History repeats itself, first as tragedy, second as farce."
Karl Marx
50  Economy / Economics / Re: Economic Totalitarianism on: March 04, 2017, 09:09:16 PM
"Again, the devil taketh him up to an exceeding high mountain, and sheweth him all
the kingdoms of the world, and the glory of them; And saith unto him, All these things
will I give thee, if thou will fall down and worship me." Matthew Ch4

This post provides the context needed to understand "The Creature" in 1945-1949.

As soon the war in Europe finished, the "Allies" quickly became enemies.
President Truman resisted calls from his Generals for pre-emptive nuclear strikes,
in effect World War III, to prevent the Soviet Union from invading Europe.
It was a relatively easy decision for Truman, the USA had material for one bomb,
and several dozen would be needed for the attack. The content of the the
US Nuclear Arsenal was a secret the Generals did not know. [1]

Around March 1945 Allen Dulles was Swiss Director of the OSS and was negotiating
the surrender of German forces in Northern Italy. He was also negotiating with
GeneralMajor Reinhard Gehlen, head of Reich Foreign Armies East, for control of a
military spy network within the Soviet Union and Eastern Europe. [2]

The budget for the entire OSS in 1945 was of the order of $50 million. [3]

With the end of the war in Europe the OSS was disbanded in October 1945. The
code-breaking resources were assigned to the War Department, and would become
the NSA. The instruction to disband was broadly interpreted to allow the construction
of a peacetime US secret service, the " Strategic Services Unit" (SSU)with the State Dept.
Responsibility for the administration of Europe was divided between the USA and the UK,
and arrangements were made to share intelligence.

It wasn't only Allen Dulles and Reinhard Gehlen that had an interest in the survival
of the SSU, others, including the Mafia and the Vatican, had invested in the network.
One might suppose that it was entirely in Gehlen's interest to promote the threat
from the USSR, including news on the development of technologically advanced weaponry.

As a guess, the initial 1946 budget for the SSU was one tenth of its wartime equivalent,
say, $5 million.

The SSU's response was to prepare stay-behind units (Gladios) as a countermeasure to
any Soviet invasion. The muscle that these politically motivated units provided would
later be directed against the growing Communist Party's ambitions in Italy.

"In 1947, the Communist Party of Italy, much admired for leading the fight against
Mussolini, was expected to win major gains in Italy's first post-war election." [4]7:41

The role that the Mafia and the Vatican played in these events is summarised here:

"Initially, Mr Dulles and Secretary of Defense James V.Forrestal solicited funds from
wealthy friends" [4] 6.52 It wasn't enough, even when reimbursed through the black budget. 
The problem of financing the SSU and its network was tackled under the Helliwell Plan.
The name implies a formal agreement between the embryonic CIA and other parties
for a share in the profits from the heroin trade between Italy and the east coast of
the USA, to be remitted into the Vatican Bank. The most likely event contributing to
this Plan was the Mob Conference in Havana, at the Hotel Nacional, December 1946.

In 1947, and coincidentally with the discovery of the Japanese War Loot, and the
decision to keep the recovery of the wealth a US State Secret, the CIA emerged under the
directive of the US National Security Act. It soon had competition in the form of the
OPC (Office of Policy Coordination) - the two were merged in 1951.

In 1950 Allen Dulles was recruited to oversee the Agency's covert operations as Deputy
Director for Plans. Perhaps his earlier experience as a lawyer in Sullivan and Cromwell,
a firm specialising in international finance legal matters, was found useful.

It's hard to be sure what was really going on, though, see this:

"Typically, in the early 1950's, the Agency dropped millions of dollars worth of gold bars,
arms, two-way radios, and Agents into Poland to support what its top officials believed
was a powerful Polish underground movement against the Soviets. In fact, Soviet agents
had wiped out the movement years before, turned key people in it into double agents, and
played the CIA for suckers. As Wiener comments, not only had five years of planning,
various agents, and millions of dollars "gone down the drain," but the "unkindest cut might
have been [the Agency's] discovery that the Poles had sent a chunk of the CIA's money to
the Communist Party of Italy." [5] 0.30

[1] See "Command and Control" by Eric Schlosser, published 2013.
[2] Joseph P Farrell at the Secret Space Program Conference 2014 San Mateo presentation 1
referencing GeneralMajor Gehlen's memoirs.
[3] CIA History Reference
[4]"What I have been afraid to blog about the ESF and its history - part 2" Eric Decarbonnel
[5]"What I have been afraid to blog about the ESF and its history - part 3" Eric Decarbonnel
referencing War behind the Iron curtain - Peter Grose [pp67-68]
51  Economy / Economics / Re: Economic Totalitarianism on: February 25, 2017, 08:45:57 PM
"Yes, but the whole point of the doomsday machine is lost if you keep it a secret!
Why didn't you tell the world?"
"It was to be announced at the Party Congress on Monday.
As you know, the Premier loves surprises."
        - Dr Strangelove & Russian Ambassador

Hang on to your sense of humour. You may need it.

"After the U.S. entered the war in December 1941, Secretary Morgenthau appointed
White to act as liaison between the Treasury and the State Department on all
matters bearing on foreign relations. He was also made responsible for the
Exchange Stabilization Fund." [1] The budget for the embryonic form of the CIA, the 
OSS, was also under White's control within the ESF.

Mr White was effectively in control of the world's financial system through the
Treasury's ownership of three-quarters of the world's monetary gold. He, with others
within the ESF, began planning what would later become the World Bank and the IMF. [2]

Both France and the UK exported their gold to Canada and to the USA for safekeeping
and to pay for war materials.

The Bretton Woods Conference was held in 1944. Among other things, White proposed a
system based on a gold-backed US$ as the world's reserve currency. The proposal was
attacked domestically as "a camouflaged method of lending billions of American
money abroad," and most US bankers opposed the plan. [2]5:44 Keynes also opposed the
plans, suggesting instead a self-regulating system based on an international "Bancor"
reserve system. White prevailed. With control of international finance resting in the
US$, and control of the $ resting with the Federal Reserve Banks, acting as agent for
the US Treasury, not much had changed.

The Wars ended, and treasure, including gold that Nazi Germany looted from Europe,
some $533M (1945 dollars) of gold and silver was recovered, mostly from the Merkers
Mine in Germany. [3]

Japan had a similar program called "Operation Golden Lily". Capt., later General Ed
Lansdale, briefed President Truman on the billions (1945 dollars) discovered, 1947.
Truman, on learning of the hoard, "after discussing this vast plunder with his cabinet,   
'decided to proceed with the recovery, but to keep it a State Secret'" [4]53.40

Note the difference in approach between the treasure plundered in Europe which was
eventually returned, and that plundered in Asia by Japan, from 1895 onwards, which
was not merely concealed, but given the protection of the US State.   

So, leave aside, for the moment, a multitude of probabilites on why this was done.

Logically, the place to put Secret Billions was the Treasury's ESF funds. These were
designed to operate without oversight or accountability since their inception in 1934.

"The heart and soul of covert operations" ... "provision of unvouchered funds, and the
inviolability of such funds to outside inspection" [2]6.24

Before moving on to other consequences of President Truman's decision, I will simply
point out that published US accounts since 1945 cannot be trusted. Any attempt to
model the US economy without accounting for secret activity will end in frustration.

Deceit on this scale corrodes the fabric of society. The Government, or at least an
important part of it, is no longer answerable to the democratic will of the people. 
It is also a negation of Capitalism - that each agent is equally, as far as reasonably
practicable, informed of the events taking place in the Markets. Note also, that failure
to disclose material facts may be a criminal offence. In other words, Fraud.

What may be excused as a short-term expedient is likely to result in disaster in the
longer term. Usually, the value of information declines rapidly with time, hence secrecy
can be quickly discarded. Where Secrecy conceals an ongoing and growing process of
public interest, it makes honest men into liars and criminalises honest answers. It
eventually destroys trust in the government, in this case, the US government.
This is not good if you have control the world's finances via only faith and credit.

[2] "What I have been afraid to blog about the ESF and its history - part 2" Eric Decarbonnel
[4] Joseph P Farrell at the Secret Space Program Conference 2014 San Mateo presentation 1
referencing "Covert Wars and Breakaway Civlisations" p137 and "Gold Warriors" p3

Keep smiling - there's more. Much, much, more :-)

52  Economy / Economics / Re: Economic Totalitarianism on: February 18, 2017, 09:11:50 PM
'When I use a word,' Humpty Dumpty said, in rather a scornful tone,
'it means just what I choose it to mean - neither more nor less.'
'The question is,' said Alice, 'whether you can make words mean so many different things.'
'The question is,' said Humpty Dumpty, 'which is to be master that's all.'
Lewis Carroll - "Through the Looking Glass"

From 1900 - 1945 the Question "Who is to be Master" brought about a series of wars,
the most memorable of these were WWI and WWII. One might suppose that domination of
seventeen-twentieths of the world's surface would ensure the rapid assimilation of
the remainder, and failure to succeed in that goal was not for want of trying. The
twenty years preceding the first World War [1] are remarkably similar to moves in a
game of Monopoly, with the City and Foreign Office moving together to gain an

Reading the detail of these manoeuvrings one cannot help but wonder at the gulf in
understanding between the general public in the UK, the USA, and much of Europe,
and the "one man in a thousand" [1] in possession of the facts. In this respect,
control of the flow of information acts much like the control of the flow of credit,
though today's digital world makes the comparison between the two much clearer.
The two actors, the City and the UK Government, both have separate access to credit
and to data, and both compete for the sinews of control via the legal constraints
on their power. In this respect, the international routes available to finance give
banking an advantage over the UK Government when the British Empire began to dissolve.

The Constitution of the USA had a similar blind spot, being focused on a balance
between the Judiciary, the Executive and the Legislative branches of Government,
despite evidence of the dangers that Banks might pose to the Nation. These dangers
need not be pre-planned malice, but may be systemic in nature.

I will add my own thoughts to the matter - the interest accumulated on debt and the
costs of the first World War resulted in an excess of debt over the ability to pay.
The settlement at the end of that war provided a flow of gold from Germany to France,
and from France and the UK to the USA. The reparations were delayed, and France
occupied the Ruhr in 1923. " With the collapse of the German economy in 1931,
reparations were suspended for a year and in 1932 during the Lausanne Conference
they were cancelled altogether. Between 1919 and 1932, Germany paid less than 21
billion marks in reparations." After coming to power in 1933 Adolf Hitler halted
all outstanding payments. At the peak of German Hyperinflation it was said that
an ounce of gold would purchase a city block (1923).

"The fact that British capital played an important role in the great crash of the
American market in 1929 seems beyond question." [1p72]

February 13 1933 President Hoover farewell address "If Europe wants us to cut down
war debts [about twenty billion] she will have to go back on gold standard and
stabilise her currency. Otherwise we will have to go off the gold standard and
depreciate our currency in this destructive trade war." [3]

"The governments of Britain, Czechoslovakia, Italy, Latvia, Lithuania, and Romania
were unable to make full war debt payments to the United States and offered symbolic
 token payments instead. The global depression undermined these countries' ability
to meet their debt obligation. Congress planned action to punish governments which
reneged on their war debts to the U.S." [2] June 1933

Nov 1933 US recognises USSR - Soviets will "consider" repayment of war and earlier debts.   

America devalues its currency - the $ now buys 40 percent less gold. 
8 Feb 1934 The US formally ends the gold standard. Americans are restricted in the
amount of gold they may own. On April 30 America's gold, some $2Bn, was moved into a
special Treasury fund to stabilise the US$ - the ESF. [4]0.48 (abstract NYT)
From that point on the US Treasury, through the ESF, controlled international finance.[4]2.50
The effect ... was "to nullify, if not to scrap, the Federal Reserve System" [4]5.30

In early 1939 the rapid expansion of Germany's economy was beginning to generate difficulties.
Hitler sacks Dr. Hjalmar Schacht, who had been appointed President of the Reichsbank
in March 1933.

On 1 March 1941 the US Treasury had $22,200,000,000 in gold - Lewiston Daily Sun [4]
some three-quarters of the world's monetary gold. The Secretary of the Treasury was
in effective control of the world's currencies, without any oversight or legal constraint,
since 1934.[6]

Mr Decarbonnel argues that the Fed did a better job of stabilising the currency than
the Treasury, based on the CPI calculations available. The merits of that argument are
what they are, but it is clear that since 1934, the decline is inexorable. see 1944
"The Fund, as created, is unsound and will increase the already grave danger of inflation." [5]5.49

[1] "The Empire of the City" E C Knuth 1945
[3] "The Great Depression - A Diary" Benjamin Roth   
[4] "What I have been afraid to blog about the ESF and its history - part1" Eric Decarbonnel
[5] "What I have been afraid to blog about the ESF and its history - part2" Eric Decarbonnel
Note : The graph in [4] of $ purchasing power vs time 1800-present illustrates a clear trend from
1934 when the US Treasury took control. A graph showing only  1913 - present might suggest some
responsibility lies with the Federal Reserve Banks for the continuing decline of the US$, but
on the balance of probabilities, the Treasury secretariat bears responsibility for the decline.
[6] Some 17,230 Tons, though whether this includes gold held for "safekeeping" is unknown.
Rumours suggest that gold was transferred by US battleships from China to the USA in 1938. 
I am unable to confirm how much, if any. was transported.
53  Economy / Economics / Re: Economic Totalitarianism on: February 11, 2017, 09:29:13 PM
"All my possessions for a moment of time" attributed to Queen Elizabeth I
near the time of her death in 1603.

Almost 300 years later, in 1901, Queen Victoria died. Much had changed.
Through the Royal Navy and its control of the Sea-Lanes, the British
Empire controlled "seventeen-twentieths of the world's surface." [1][2]

Such dominance does not come about by accident, and by 1912, forecasts
of world conflict were published, gigantic in scale, "one war if the
Empire is destroyed, a series if it is victorious." [1][2]

By this certain knowledge a series of events were put in train, as each
Faction, Nation, and Sector sought to place itself to be if not advantaged
in the outcomes, at worst to suffer no loss. Chief among these concerns were
the design and manufacture of armaments and the flow of funds necessary to
finance the coming wars.

Near-total control of the world is a rare enough occurrence to suggest a
brief look at the management structure:
A Royal Family, as the public face
The City of London,  providing financial management
The Imperial Civil Service, Parliament, and the Armed Services
Corporate industries
the People.

Of these, the balance of power between the City, The Government, and
the Corporations drove the growth of Empire. While the UK growth rates fell
in the late 19th century they were still well above any historical
precedent prior to the industrial revolution.

Globally, the balance of power was beginning to move toward Germany and
toward the United States of America as these countries sought new markets
for their produce, and to defend their ability to export and to import.

Thus in 1901, when Queen Victoria died, the network of alliances and
Treaties became stressed. First the USA, and by then Germany, exceeded
the GDP of the United Kingdom. The result was a race to build the biggest
and most technologically advanced fleet of warships that could be afforded.

No sane person starts a war without the expectation of victory. That said,
war was a constant news item in the British Press in a steady escalation
from 1870. Much of the turmoil of this time was micromanaged by the financiers
of the City, though not always with the intent of throwing petrol on the fire.
No sane person starts a war without the expectation of financial support.

In much the same way that the beatings will continue for as long as the
Elite knows best, whatever the trigger, the Elite then has to get the
rest of the 99% to actually fight the war. The trigger for World War I
was an assassination, and some lurid propaganda "Germans bayonetted
Belgian Babies" moved things on early in 1914.

The Battle of Jutland in 1916 was, at that moment, indecisive, revealing
the prospect of a prolonged destructive conflict. How the USA came into
the war on the Allied side in 1917 is worthy of a separate story. It's
worth noting that financing the war promoted innovation and prepared the
way for breaking the link between paper money and gold. This was in part
driven by the needs of the UK and the needs of Germany for raw materials,
commodities, and finished goods of all types, and by the excess production
capacity in the USA over and above the internal needs of that Nation.

When WWI ended, France demanded and got, crushing reparations placed upon
Germany, against the advice of the other parties. The UK and France
had significant debts outstanding to the USA, some of which were
eventually written off.

The British Empire was still largely intact, but it would not hold
together much longer. The illusion of World Domination has passed to
other hands.

[1] "The Day of the Saxon" Homer Lea 1912.
[2] "The Empire of the City" E C Knuth 1945 

54  Economy / Economics / Re: Economic Totalitarianism on: February 11, 2017, 09:28:20 PM
@OROBTC - thanks - hopefully you get fewer sleepless nights than I re this.
55  Economy / Economics / Re: Economic Totalitarianism on: February 04, 2017, 09:19:21 PM
"Never give a sucker an even break" Film title 1941

I made a couple of remarks on another thread about economics and game theory.
Thinking about it, those remarks tossed pretty much every piece of economic
theory post Adam Smith into the shredder. The result? ..... Crickets.

Nobody said "You're Wrong!" and nobody seemed to suffer a panic attack. Ho hum.

At the risk of repeating myself, today's global economy finds itself in a kind of 
Prisoner's Dilemma. Deals between agents are completed because each benefits from
the transaction. Of four possible outcomes, the win-win result satisfies both
parties. Almost all of history records growth in economies, a series of win-win
outcomes. Win-lose outcomes imply duress on the losing party.

It's possible to model less benign economics, and as a general comment, they are
unstable. Note that even benign economies are unstable, hence it's difficult to
clarify the difference. But game theory explains it succinctly.

It's called the zero-sum game. For someone to win, someone else has to lose.
And that's a whole new way of thinking about the world. It also explains much
of the dysfunctional behavior visible today, including the drop in international
world trade. At a personal level, if you want to win on a trade, make sure that
there's a sucker on the other side.

That means playing with a marked deck, it means insider trading, it means CEO's
buying stock with cheap credit instead of investing in the future of the business.
It means passing legislation and signing treaties to disadvantage competitors. If
they can be jailed and assets forfeited so much the better. Capiche?

This is depression economics, where it's better to hold onto your resources than to
buy or sell. Instead of a competitive advantage, you're looking for a sucker.

But enough with the drama, what about the facts? Is it enough to know this has been
brought about by a combination of Central Bank incompetence and by resource
depletion? Because when it comes down to supposed hard facts like growth, things
get kinda slippery. Even basic nominal GDP is suspect, see Ireland's figures for
the glaring example. After that, factor in CPI to calculate real GDP. So, expect to
wait a while, say five of ten years for the revisions and internal contradictions
to be resolved. For a critique on the calculation on US CPI see this:
"Even worse, while the rate of health care inflation is being understated at the individual premium level shown above, it's also wildly understated in the larger inflation statistic used to level-set everything from cost-of-living adjustments (COLA) to pay raises across the country."

Comments? I mean, I haven't seen a rush to contradict any of the mainstream
economists, or to inform them they're the equivalent of the buggy whip, so
I assume everybody's happy with the Emperor's New Clothes, to mix metaphors.

And, yes, hang onto your Bitcoin. An Even Break is already a Collector's Item.

PS: Once you get the idea of a zero sum game into your head, it emerges everywhere,
with the Brexit negotiations as only one example. I'd suggest taking some time to
let this line of thought percolate into your way of thinking. That way you will pick up
on the constant references to unfair advantage in our current way of living
56  Economy / Economics / Re: Banning Usury will promote cryptocurrencies on: February 04, 2017, 09:14:14 PM
The reason for writing the Orchard model in the way that I did was to draw attention
to the creation of credit by the bank. Once upon a time, banks were very careful
with their lending, and bank bankruptcies were a feature of the commercial world.

A real-life example of the Orchard model:
"Members of the Rice Farming Association of Nigeria say they can only access high-interest loans from commercial banks. Joseph Jatau Kudu has been farming near the town of Doma in Nasarawa State since 1982. He says the banks charge as much as 30% to lend money. 'It's too high. We end up earning nothing,' he says. Without the capital to mechanise, workers must do everything on his 15-hectare farm by hand. Sometimes the tractors are not available. 'So now I'm using manual labour. It's not as effective as in the case of using a tractor and it's one of the reasons I can't expand.'

History records that rapidly expanding the money base via Usury used to be a sure way
to get into trouble. Hence today's monopoly on the issuance of fiat credit notes,
is somewhat like the ability of a Bookmaker to offer bets on every horse in the race.
No matter the outcome, the risk to the Central Bank is so small it's almost not there
at all, because the Bank can always pay its own liabilities. 

Usury is not supposed to be risk-free. And it isn't. It just moves risk to approximate
the power balance between Creditor and Debtor. That in turn means that politics,
not economics or law, may be the final arbiter when unpayable debt must be extinguished.

57  Economy / Economics / Re: Banning Usury will promote cryptocurrencies on: February 01, 2017, 09:18:35 PM
It's awesome watching new ideas form about what money is and how it should be used.
I'll put something up on the "Economic Totalitarianism" thread in a day or two, but
maybe this theard gets there first. For now, I'll posit a better "Orchard" model. I'll set
some variables closer to the real world, others are set to limit the model.

In an ideal Island world, the king owns all the land, and leases are for sale at zero rent.

There are only two orchards, side by side, and the trees are a thousand years old.
One orchard is up for sale, and is bought $20 cash and $80 loaned from the bank.
The loan carries 10% interest because the bank expects the orchard to go bust,
but demands the orchard as collateral.

The other orchard is owned by the bank, has a similar loan on the books, but
has interest set at the Internal Rate of Return (IRR) some 2%. This comes
about because the bank is closer to the source of the monetary expansion.

To create a "static" economy, both orchards use slave labour so there is no
compeditive advantage and the slaves eat all the apples, sold in a free market.

In year 1, the money in circulation is $200.
In year 2, the bank calculates $210 in circulation, and demands interest be paid. 
The bank makes a profit of $3 on its orchard, and rolls over the loans, increasing
the the external loan to $83. When the external loan approaches $100, the bank
will foreclose, and put the orchard up for sale, again.

That can't happen if Usury is prohibited. 
58  Economy / Economics / Re: Banning Usury will promote cryptocurrencies on: January 28, 2017, 09:06:45 PM
"The idea that people can live off the interest of their mutual indebtedness, ......
is just another perpetual motion scheme - a vulgar delusion on a grand scale. Soddy
seems to be saying that what is obviously impossible for the community - for everyone
to live on interest - should also be forbidden to individuals, as a principle of
fairness." Daly, "The economics of Frederick Soddy" p475 quoted by
Charles Eisentein in "Sacred Economics" p134

There are a simpler explanations, just ask - "Cui Bono?"
The effects of American gold and silver imports in the 16th Century are well known.
Those closest to the source of inflation benefit most. Thus Banks, and credit card
companies, as the source of credit-as-money benefit fully from the inflation of the
monetary base. Those receiving credit are incentivised to spend quickly. For as long
as the Ponzi scheme expands, savers lose out to the extent that inflation exceeds the
interest paid on their savings. Monetary expansion is limited in theory by our
ability to collateralise resources, but once again practice differs from theory.

So much for the Macro Economy. What about the Micro Economy, and Who Loses?
In a strange sort of way, the supply of money creates its own demand, it's own
scarcity. The practice of Usury creates more debt via interest than there is
wealth to extinguish it, hence there is always someone in need of money. It follows
that the greater the scarcity, the greater the excess debt, the greater the risk,
and hence the higher the interest rate demanded. Thus those with the weakest
negotiating position, probably the poorest in the community, are the least able to
avoid being in debt and their risk of losing everything is higher.

When gold and silver coins were money, there was a natural limit on the extent to
which the common man could be exploited. When the King or Queen mismanaged the
economy, banks and governments went bankrupt. Along came fractional reserve banking,
and then fiat currencies. Both were an attempt to introduce a self-regulating system
while preserving Usury. As can be seen above, self-regulating Usury is an oxymoron.

Unfortunately, with another system failure about to be exposed, TPTB are placing
their hopes on restrictions on fiat currency, and when that fails, on banning cash

Once inflated, nothing can stop a Ponzi scheme from imploding, hence arguments for
continuation are wasted. More relevant arguments for Usury stem from personal freedoms,
and that needs to be discussed further.
59  Economy / Economics / Re: Banning Usury will promote cryptocurrencies on: January 26, 2017, 09:30:24 PM
@BobK71 - "It's hard for me to find such breakage when both parties go into the deal freely and with knowledge of the enforcement mechanism."

In an ideal world a negotiation between two parties would result in an equitable and
moral deal: the party which gained most from the deal would offer the best terms for
settlement; and vice versa. That's economics. But this is only one of perhaps four
different outcomes in game theory and it assumes both a win-win dynamic and an equal
balance of power.

For a real world example, consider my broadband contract: I provide my ISP with three
months credit by paying in advance; I receive a weeks' credit in return. If I do
not pay within a week, my online existence is cut short. This is an existential threat.

A similar existential threat is implicit in all negotiations with the State, for the
State has a monopoly on legal violence. I'll also point out that as productivity and
GDP declines, the opportunities for win-win outcomes diminishes.

Much of the real world implications of this, and my earlier reference to flows of
wealth and credit are exposed in the dealings of microfinance - see WP39_microfinance.pdf

I think it's evident that wealth flows to the wealthy, and credit flows to those sinking
deeper into debt. The exact mechanisms vary for each individual. Some are plainly wrong.
60  Economy / Economics / Re: Banning Usury will promote cryptocurrencies on: January 23, 2017, 09:35:57 PM
" Does the economics of cryptocurrency help provide an alternative and thus the ability to route around usury? "

I've also bought the book, and am in much the same place as yourself.

I'm less hopeful that cryptocurrency can route around Usury. As I said, Greshams Law suggests
that bitcoin will not replace counterfeit money without help. Maybe if another cryptocurrency was
specifically designed to tackle the problem, it might succeed, but its a bad idea.

I noted something in today's papers to the effect that "we" all want to eliminate fraud, dishonesty,
and cold-calling but the loss of thousands of jobs is a major and unacceptable consequence.
Does this sound much the same as banning Usury?

I'm intending to research some other relevant material:

A) The theological perspective - why Usury is acceptable today, and also its practice in the
Byzantine Empire.

B) The impact of Usury on poverty - microfinance seems to be the main topic
(see WP39_microfinance.pdf) - though remittances are also an area of concern.
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