Economic Collapse – Top 3 Steps for Insolvent America

Sat, Jul 23, 2011
Subject: Lie, Cheat and Steal the Real Story Behind the Debt  



Banking and Politics in the New Millennium:  Lie! Cheat! Steal! Lie some more! Consequences are for the ‘Other Guy’: A Solution to the Debt Ceiling Crisis.

Yes, economies are in free fall propped up only by lies, damn lies, and statistics.  The most precious commodity of all, the “Confidence of the ordinary person,” is being assailed daily. When that “Confidence” tips, it’s all over. When it occurs it will be swift and merciless and we will enter the Hobbsian state of nature, “nasty, brutish, and short.”  The deluded architects of the New World Order may succeed in crumbling economies but have yet to understand that lording over a decimated population who will not willingly create or contribute to society is a sour, empty “victory.”  They will spend more time in fear and in fighting than in enjoying the”good life.” What were they thinking?

In our last posting, we indicated the Dark Cabal’s world is falling apart. And it is. The US debt ceiling crisis and the corresponding likelihood of a US default will mean the evaporation of much of the ‘wealth’ these insiders think they have accumulated. The brinkmanship games on the debt ceiling have necessitated a rescue package of some sort to help soothe the Confidence jitters of the ordinary Joe. But where is it?

Well, it’s been in front of their faces for years. Release funds that have been hijacked and stolen, to their rightful owners and collect the taxes owed. Duh!

Recently, letters from Lindell H. Bonney, Sr., paymaster of the Global Settlements, have circulated to Senators and Congressmen in DC showing that the potential taxes to be collected on just a few of the “thefts in high places” would eliminate the US deficit, and much of its debt, in one fell swoop.

The amount of these thefts is staggering. It’s hard to believe there was that much money and that it could be stolen. Perhaps that is the point. Since supposedly no one would believe it, it couldn’t possibly happen. Much has already been written on Wanta’s funds elsewhere, and the White Hats have written extensively about Falcone’s funds. Today we expose another.

Take the Tropos Capital Corporation (“Tropos”) scenario, for example. In 2004, Tropos entered into a trust agreement with certain account holders at the Bank of Taiwan. Under the terms of the trust agreement, Tropos was charged with investing the capital and distributing the yield to humanitarian projects and, of course, to the beneficiaries.  The account holders had been growing their US dollars for over 60 years and it was a vast sum, over $700 Billion USD (or FRNs) and its deployment then would have averted much of the financial disasters in recent years. So what happened?

Simply put, Timothy Geithner stole the money.  Geithner was head of the Federal Reserve Bank of New York, and when the transaction was presented to the FRBNY, he re-directed money.  What was his penalty for being caught?  Promotion to the head of the U.S. Treasury!

The Tropos matter is perhaps the clearest documented example of systemic corruption in the Federal Reserve Banking System.  A little sidebar on the mechanisms used will help underscore the seriousness of the way in which this theft occurred and its far-reaching implications.

Tropos used an ACATS (“Automated Customer Account Transfer System”) to move funds from the Bank of Taiwan to its account at Wachovia Bank (now the Wells Fargo Bank).  ACATS are point-to-point transfers of the holdings of the account “in kind”. They are regularly used, for example, to move all the holdings of a bank or brokerage account from one institution to another without selling the holdings in the account. Say you have an account at Merrill Lynch and you want to move it to Morgan Stanley or E*Trade. The account has securities and cash in it so you complete an ACATS and within a few days your old account’s cash and securities are moved intact to the new institution. ACATS are documents administered by the Depository Trust Clearing Corporation – a wholly owned subsidiary of; you guessed it, the Federal Reserve.

The rules for using ACATS are quite straightforward. To move the account holdings from point A to point B, point A must provide a (notarized) copy of the account statement proving the items to be moved “in kind” are really there. Once the ACATS is signed, the recipient institution/account is now the legal owner, holding the account in trust for the account signatory. It is supposed to be a totally secure transaction.

Because of the size of the movement of USD within the Bank of Taiwan account, Tropos gave a heads up “pre-advise” to the Federal Reserve Bank of New York. Copies of the executed ACATS were provided to FRBNY. And here is where the story slips into the pages of a “who-done-it” financial thriller.

Federal Reserve members went to the Bank of Taiwan and presented the photocopied ACATS themselves and took the $700Billion from the account. They secretly moved the funds through other FRB’s ‘off balance sheet’ but lent it out to banker buddies to use for their platform trading activities, generating enormous yields. Funds were never credited, settled, or paid over to Tropos, nor returned to the Bank of Taiwan account holders.

Tropos has spent much time and money trying to quietly and discreetly recover the funds because, in their opinion, if the story got out in its entirety it could freeze up and destabilize the entire global banking system. It didn’t serve their interest to draw attention to this transfer because; let’s face it, that’s a lot of money. They tried using the political systems in the US, through Senator McCain and Senator Reid and others. Bush Jr. supposedly signed an executive order to pay; Paulson stopped the payment demanding the funds be sent to Goldman Sachs instead of Wachovia, Panetta got involved somehow promising to complete the exec order, while not doing anything. In the soup de jure of dirty tricks politics, Texas funds were deployed to finance a spurious piece of litigation against Tropos’ principals alleging fraud for, get this, Tropos’ law firm taking funds from Tropos’ own trust account and using it on behalf of another client, without the knowledge of the Tropos principals.

The problem for the US banking and political system with the Tropos transaction is, of course, the ACATS paper trail and the notices served upon those whose job and purpose it is to protect the financial systems from the very thing the Fed did.  Hard core proof exists for this theft.  It wasn’t a side deal to do some off balance sheet trading program. Tropos used on balance sheet funds moving through the supposedly trustworthy transfer protocols established by the Fed and the Bank for International Settlements.

Imagine the impact on global commerce and confidence if CFO’s for international companies or finance ministers of sovereign nations grasp that none of their bank holdings and transfers are secure. Suppose GE or any corporation tried to move funds point-to-point, and the Fed stole the money enroute, what would that do to commercial activities? Can’t happen you say, but it’s occurring more and more. The thieving ways are a narcotic to the keepers of the systems. They can’t imagine settling for measly millions in bonuses, they must have more. Besides who cares if they get caught, no one will prosecute; they will pay a small fine and be done with it. Or get promoted to the U.S. Treasury.

Shortly after Obama took the POTUS office, Tropos served a registered notice on him detailing their claim. You can read it here.  Surprise! No response.

 (Tropos Request for Presidential Review – Obama June 2009)

Notices were also served upon the Federal Reserve Banks in San Francisco, Dallas, Atlanta, and Richmond  — the funds had be traced through their systems with each one using it along the way – and all members of the FOMC (minus Kohn, since he already knew about it). The demand notices and Notices of Default were served upon them. No one contested, denied, or objected to Tropos’ claims except the Richmond Fed responded saying it was a problem for the FRBNY and DC.  You can read a copy of the one sent to Bernanke here

 [Bernanke-Notice of Demand Letter]

 [Bernanke FED/BOG Notice of Default July-2010]

Wait, the plot thickens.

The Office of the Comptroller of the Currency opened a case file on the matter but declined to provide any information on their investigation and shortly after receipt of the Tropos demands, the Comptroller quit.

[Comptroller Currency Letter Nov-6-09]

The Bureau of Public Debt was notified as they had issued public debt instruments on fraudulently obtained funds. Notice was served upon them. No response.

 [Tropos letter to Bureau of Public Debt]

Tropos took the matter to the Bank for International Settlements asking for them to compel the bank to complete the transfer under their constitutional and regulatory requirements for member banks to clear, settle, and pay over funds transferred using their system. Surprise, the Fed owns 37% of the BIS.  There was not much help there, except the BIS did write back and confirm they have no power to compel any banking transaction to complete. No kidding! Read the letters here. Effectively the BIS admitted they have no power so why would any bank care about Basel III compliance, or anything the BIS says?

  1. Tropos to BIS Letter Nov-2-2010
  2. BIS Response to Tropos Letters Dated Nov-2-and-Oct-31 2010
  3. Tropos Response Nov-22 BIS Letter

The Tropos matter gained traction at the G8/G20 summits, when countries and finance ministers realized there were potentially massive amounts of on balance sheet cash that could be released for investment and infrastructure projects. In the Canada G20 meetings, Obama was frequently asked about Tropos and told everyone that Tropos had been paid. He lied.  No surprise there.  In the Seoul G20, the Tropos matter conversations resulted in no concerted agreement by the countries because by now the credibility of the US was beyond severely damaged. Many of those had read the Tropos letters to POTUS, the Fed and BIS with absolute incredulity.

What’s worse is that it became apparent the US Fed had ‘played’ the Chinese against each other, Taiwan against PROC, when the Tropos funds moved, by making it seem that the Taiwanese had cheated the PROC (Bank of Taiwan is a subsidiary of the Central Bank of China). Does anyone know it’s not a good idea to make the Chinese lose face publicly, if ever?  What a way, to make friends with the largest Debt Holder of Treasuries?

Despite their sworn duties to their offices, none of the parties contacted by Tropos have acted publicly. Certainly an Interpol investigation into the wire fraud and financial fraud actions would yield an interesting outcome. Tropos recently wrote to Christine Lagarde, as G20 finance minister asking her to help resolve the issue, and pointed out this pervasive illegal behavior.

[Letter to G20 Finance President, Christine Lagarde, March-09-2011]

Perhaps the US support for her bid to head the IMF had something to do with her lack of response.

The crazy thing about stealing is that it so complicates life. The Tropos yield funds can’t legally appear on balance sheet, unless they are paid to Tropos, if anyone is concerned about legality. But it’s not a far reach for the Administration and the Senate/Congress to settle the matter with Tropos now, or with the other thefts mentioned; put the funds and yield on balance sheet as taxable gains, and get sufficient funds into US coffers by way of tax payments to avoid the default on the debt ceiling. Ergo no tax increases and no spending cuts (not that we think that’s a good idea). They could make a simple admission of ‘administrative error,’ or some other bogus explanation and release the funds.  That way, they could be “transparent” and be “heroes” for negotiating a good deal for the US.

So, why does the Administration pretend to have debt ceiling problems when they can simply pay what has been stolen and collect taxes on the gain? Perhaps it is the insane desire of these thieves to keep what they can never spend freely, so that more crushing debt burdens can be placed on a beleaguered populace, so that they can rob them again, so they can have more screen digits they cannot spend freely. If so, then the strategy is exposed and the people can do something about it. You decide.

Dare we say “Expect much more on this”.






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One Response to “Economic Collapse – Top 3 Steps for Insolvent America”

  1. Layne Lasswell says:

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