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Collateral Damage: US Covert Operations & 9/11 (1)  (continued)
    by ANONYMOUS

Collateral Damage: US Covert Operations & 9/11 (1)

Initially, it is difficult to see a pattern to the destruction of September 11th other than the total destruction of the World Trade Center, a segment of the Pentagon, four commercial aircraft and the loss of 2,993 lives.

However, if the perceived objective of the attack is re-defined from its commonly suggested 'symbolic' designation as either ‘a terrorist attack’ or a ‘new Pearl Harbor,’ and one begins by looking at it as purely a crime with specific objectives (as opposed to a political action), there is a compelling logic to the pattern of destruction.

This article provides research into the early claims by Dick Eastman, Tom Flocco, V.K. Durham and Karl Schwarz that the September 11th attacks were meant as a cover-up for financial crimes being investigated by the Office of Naval Intelligence (ONI), whose offices in the Pentagon were destroyed on September 11th.1

After six years of research, this report presents corroborating evidence which supports their claims, and proposes a new rationale for the September 11th attacks. In doing so, many of the anomalies – or inconvenient facts surrounding this event – take on a meaning that is consistent with the claims of Eastman et al.

The hypothesis of this report is: the attacks of September 11th were intended to cover-up the clearing of $240 billion dollars in securities covertly created in September 1991 to fund a covert economic war against the Soviet Union, during which ‘unknown’ western investors bought up much of the Soviet industry, with a focus on oil and gas.

The attacks of September 11th also served to derail multiple Federal investigations away from crimes associated with the 1991 covert operation. In doing so, the attacks were justified under the cardinal rule of intelligence: “protect your resources”2 and consistent with a modus operandi of sacrificing lives for a greater cause.

The case for detailed targeting of the attacks begins with analysis of the attack on the Pentagon. After one concludes that the targeting of the ONI office in the Pentagon was not random – and that information is presented later3 – one then must ask: is it possible that the planes that hit the World Trade Center, and the bombs reported by various witnesses to have been set off inside the buildings 1, 6 and 7 and the basement of the Towers, were deliberately located to support the execution of a crime of mind-boggling proportions?

In considering that question, a pattern emerges. For the crimes alleged by Eastman, Flocco, Durham and Schwarz to be successful, the vault in the basement of the World Trade Center, and its contents – less than a billion in gold, but hundreds of billions of dollars of government securities – had to be destroyed.

A critical mass of brokers from the major government security brokerages in the Twin Towers had to be eliminated to create chaos in the government securities market. A situation needed to be created wherein $240 billion dollars of covert securities could be electronically “cleared” without anyone asking questions- which happened when the Federal Reserve declared an emergency and invoked its “emergency powers.” that very afternoon.4

The ongoing Federal investigations into the crimes funded by those securities needed to be ended or disrupted by destroying evidence in Buildings 6, 7 and 1.5 Finally, one has to understand and demonstrate the inconceivable: that $240 billion in covert, and possibly illegal government funding could have been and were created in September of 1991.

Filling in the last piece of the puzzle requires understanding 50 years of history of key financial organizations in the United States, understanding how U.S. Intelligence became a key source of their off-balance sheet accounts, and why this was sanctioned by every President since Truman.6 With that, a pattern of motivation is defined which allows government leaders and intelligence operatives to ‘rationalize’ a decision to cause the death 3,000 citizens.
World Trade Center

There were three major securities brokers in the World Trade Center: Cantor Fitzgerald, Eurobrokers and Garbon Inter Capital. On the morning of September 11, Flight 11 hit the North Tower at 8:46 right below the floors on which Cantor Fitzgerald was situated. Cantor Fitzgerald was the US largest securities dealer7 in the US and arguably the primary target.8

Shortly after that, a massive explosion went off just under the FBI offices in the North Tower on the 23rd floor, and Garbon Inter Capital on the 25th floor, and in the basement of Tower 1 as well. The explosion caused the 22nd through 25th floors above to collapse into an inferno.9

Fires were reported on the 22nd floor at 8:47.10 Shortly, thereafter, at 9:03, Flight 175 hit the South Tower right below the floors on which Euro Brokers was situated. (See Chart on page 42.) In all three cases, the explosive, fiery destruction consumed the offices in the several floors above.

At 9:37 Flight 77 hit the Pentagon, targeting one of the few offices that had been moved in the newly remodeled section of the Pentagon: the Office of Naval Intelligence.11 Agents of the Office of Naval Intelligence had been investigating the financial transactions which in this report are linked to securities being managed by those security dealers in the World Trade Center that were targeted. 12

Fortunately, most other agencies had not yet been moved back into the targeted section of the Pentagon. 41% of the fatalities in the Twin Towers came from two companies that managed U.S. government securities: Cantor Fitzgerald and Eurobrokers.13 31% of the 125 fatalities in the Pentagon were from the Naval Command Center that housed the Office of Naval Intelligence. 39 of 40 Office of Naval Intelligence employees died. In the vaults beneath the World Trade Center Towers, any certificates for bonds were destroyed.14

Building 7 was evacuated somewhere between 9:00 and 9:30, depending on various claims. Fires and explosions spontaneously began at multiple locations inside the building prior to the collapse of either Tower. This observation is critical in that the official explanation for the fire is that they started when objects from the collapsing towers caused the fires to ignite. Witnesses leaving the building claim to have seen fires already starting, and dead bodies.15 The Building ultimately was destroyed in what many unofficial observers now believe was a controlled demolition. Building Seven housed the following agencies critical to investigation of financial crimes related to this history:

Export-Import Bank of the US US Secret Service Securities and Exchange Commission Internal Revenue Service

CIA Department of Defense
Floor 6 Floors 9 & 10 Floors 11,12 &13 Floors 24 & 25 Floor 25 Floor 25

“All the evidence that we stored at 7 World Trade, in all our cases, went down with the building,” according to US Secret Service Special Agent David Curran — the number three guy in that office. “We lost our network, we lost all our computers, we lost all the equipment that we use as Secret Service Agents. Everything from machine guns to our shotguns to our electronic equipment that we use.” A lot of cases had to be closed as a result of losing that building.”16(See note for additional references.)

In the midst of all this, Building 6 was destroyed by explosions from within, before being buried in the rubble of the Towers.17 FEMA, the agency charged with investigating the disaster, did not collect any data on this building. Building 6 was home to the U.S. Customs agency and the El Dorado Task force, an interagency money-laundering group from 55 agencies created in 1992. The El Dorado Task force was responsible for coordinating all major money-laundering investigations in the U.S. In the immediate aftermath of September 11, these groups would be redirected to investigate terrorist financing.18

On the same day, the Securities and Exchange Commission declared a national emergency and for the first time in U.S. history invoked its emergency powers under Securities Exchange Act Section 12(k) and eased regulatory restrictions for clearing and settling security trades for the next 15 days. These changes would allow an estimated $240 billion in covert government securities to be cleared upon maturity without the standard regulatory controls around identification of ownership.19 (The manner in which this was accomplished is explained later in the report.)
The Pentagon

It must be noted that the Office of Naval Intelligence in the Pentagon, which sustained a direct hit from an airliner that day, was without a doubt, a target that was pinpointed for destruction. There are a number of indicators that this was the case:

• The command centers of the US Armed forces and the Office of the Secretary of Defense are located on the River and Mall, northern facing segments of the Pentagon.20 This is public information. Either of those facades should have been the prime target for a well-planned attack. It needs to be remembered that the individuals responsible for September 11 had almost three years to plan their assault. The targets and methods were not haphazard.

• The western facing section of the Pentagon that was attacked had been under constructions for almost two years, and would not have been considered as a target, unless it was targeted for a specific reason.

• The Naval Command Center had been moved into that newly opened section of the Pentagon a month earlier21;

• The attacking aircraft went through great effort to hit the west side of the Pentagon, under either of contentious scenarios, looping around the Pentagon by 270 degrees after approaching from the north east, or looping 360 degrees with it’s approach from the West. Under either scenario, the additional looping created an opportunity with extra flight time for defense systems to take out the attacking plane, and the hijackers took a significant risk of being shot down by executing this maneuver. 22(See Figures 1 and 2)

• If one looks carefully at the Koeppel flight path approach seen in Figure 1, the attacking flight path went almost directly over the Whitehouse, bypassing what should be considered a primary target, for a supposedly empty section of the Pentagon. With the alternative approach presented by the National Transportation Safety Board, the extra distance in the loop would have allowed it to hit either the White House or the Capitol had it continued straightforward.

• Derek Vreeland who claimed to be an agent for Office of Naval Intelligence had predicted the attack several weeks in advance23;

• The ONI has been attributed by several sources with responsibility for leaking copies of the faxes which document the illegal transaction of 1989-1991.24

Did Flight 77 “pass” on three primary targets (the White House, the Capitol, and the command centers in the north face of the Pentagon) in order to make a precision hit on what should have been known to be an empty segment of the Pentagon? Did the pilot, described as having “extraordinary skill,” after years of planning, hit a worthless target? It would seem the assumption has to be the pilot hit exactly where he wanted to hit. The planes hitting the South Tower and Pentagon maneuvered in the last moments to hit their exact target. With a world of targets available, why these?

For the majority of Americans, the unanswered questions regarding that day are legion. While many of the questions may never be answered, the extraordinary destruction experienced at specific locations in the WTC, and the peculiar targeting of the Pentagon all support a pattern of deliberate destruction of sites key to the claims of Eastman, Durham, Flocco and Schwarz. While most media reports defer to the U.S. government contention that Osama Bin Laden was behind these attacks, foreign media provided reports suggesting that the “real power” behind Al Qaeda was unknown.27 As shall be seen, the financial power behind the attack is the same power that created these securities, and the same power as that which founded Al Qaeda.

The Origins of the World Trade Center Attack

Most historians track the history of September 11th to 1998 when Osama Bin Laden declared a fatwa or jihad against the U.S., and the terrorist “Hamburg Group” lead by Mohammed Atta reportedly “offered” it’s services to Al Qaeda.28

However, the history which defines the motives for the September 11 attacks goes much further back in time. The answers to the questions surrounding the cause of the WTC attack will be found in events going as far back as 1990 and 1991, when the George H.W. Bush was president.

To a very great degree, insight into the activities of that period are cloaked by the Executive Order of George H.W. Bush’s son, President George W. Bush, who on November 1, 2001 issued Executive Order 13233. This executive order was intended to balance the public’s right to see the records of past presidents with a need to protect national security.

As a result, public records which might have shed light on the activities on 1990 and 1991 remain shielded from public access in the interest of national security and the men and women who support it. Subsequently, this reconstruction of the events from the late 1980s and early 1990s is based on news reports, books and articles.

What the public record suggests is that with the beginning of the first Bush Presidency in 1989, George H.W. Bush initiated a program of covert economic warfare to bring about the collapse of the Soviet Union. The name of this program appears to be Project Hammer, a previously reported, multi-billion dollar covert operation, ‘third world investment program’ whose investments remain shielded.29 This program consisted of four major covert operations including:

1) Theft of the Soviet treasury, 2) Currency destabilization of the Ruble, 3) Funding of the KGB Generals’ August 1991 coup against Gorbachev, and 4) Takeover of the key energy and defense industries in the Soviet Union.

At its inception, the program was conducted well within policy framework of the U.S. government as defined by several Executive Orders authored by Vice President Bush and signed by President Ronald Reagan. There is good reason to believe that the plan was initially formulated by Reagan’s CIA Director, William Casey. During World War II, before Casey headed OSS operations in Europe, he worked for the Board of Economic Warfare and his role was “pinpointing Hitler’s economic jugular and investigating how it could be squeezed.”30 Many of the program operatives were probably engaged through official CIA and National Security channels. However, as a result of the experience gained by the Bush cabinet and its private sector counterparts during the secretive Iran-Contra and Ferdinand Marcos gold operations (which will be explained in short order), the execution of that program would be accompanied by two new assumptions:

1) Using covert and illegal funding for a policy not approved by Congress would remain acceptable. Under George H.W. Bush, Congressional oversight of covert operations could be ignored with impunity;

2) The American public and their representatives in Congress were too pre-occupied with their own lives to be worried about what happened in foreign lands, even if those actions violated the law and the constitution.

Emboldened by the lack of consequences for subverting the U.S. constitution and breaking international law during the Iran-Contra scandal, the Bush administration group known as “the Vulcans” planned a bigger drive to crush the soul of Communism once and for all. This group had graced themselves with this moniker, naming themselves after the Roman god of War – Vulcan. They waged war against the Soviet Union and Iraq under George H.W. Bush, and against Iraq and Afghanistan under George W. Bush.

Belonging to this group 31 were

• Dick Cheney

• Don Rumsfeld

• Colin Powell

• Paul Wolfowitz

• Richard Armitage

• Condoleezza Rice

The Vulcans' drive to bring and end to the Cold War was fueled by a covert war chest invisible to congressional oversight. 32 This war chest would be known by several names: Black Eagle Trust, the Marcos gold, Yamashita’s Gold, the Golden Lily Treasure, the Durham Trust or Project Hammer.33

These same Vulcans would be brought back to power in 2000 under the administration of President George W. Bush, son of President George H. W. Bush.

The covert operations conducted by the Vulcans involved – at a minimum – potential securities fraud, money laundering and violation of Foreign Corrupt Practices act.34

In a number of situations, murder and false imprisonment seemed to be the mainstay of efforts to prevent any remorseful participants in this operation from going public with their stories.35 While accomplishing its objective – bringing about the demise of the Soviet Union – the program also seems to have lined the pockets of the individuals that executed this policy, at US taxpayer expense. This was done to the tune of a mere $240 billion dollars in covert and allegedly illegal bonds, which appear to have been replaced with Treasury notes backed by U.S. taxpayers in the aftermath of September 11!

Seventeen years later in 2008, the personal financial empires of those who benefited directly from these covert securities should now stand at several trillion dollars, and are rightfully the property of various citizenries. Putin's purge of selected oligarchs is consistent with this story.

The covert securities used to accomplish the original national security objective of ending the Cold War ended up in the vaults of the brokers in the World Trade Center, and were destroyed on September 11, 2001.36

They came due for settlement and clearing on September 12. The federal Agency investigating these bonds – The Office of Naval Intelligence- was in the section of the Pentagon that was destroyed on September 11.37

To a key group of senior National Security officials who had participated in the victory of the economic cold war in 1991, the WTC, the Pentagon, the four airliners and their occupants would became ‘collateral’ damage in the ending of the Cold War. Their deaths were required to hide the existence of the Black Eagle Trust, and the covert activities it had funded for over 50 years. The alternative view of these events suggests that the destruction of these lives and buildings constituted a cover-up of continued lawlessness by a fraternity or brotherhood of businessmen and criminals often referred to as ‘the Enterprise’ in the 1980s, but has remained in the shadows since.

The War Chest

The story of these bonds and their source of funding has been publicized on the internet for several years,38 but the story has never really gained much credibility, even though the bonds themselves have been at the heart of several law suits and criminal proceedings.

In trying to understand the origins of what seems at first glance to be a sort of cold war internet-legend, history suggests that in September of 1991, George H.W. Bush and Alan Greenspan did indeed finance $240 billion in bonds in a buyout of the Soviet Union as part of a broader program to end the Cold War through an attack on the economy of the Soviet Union.

More-over, President George H.W. Bush had initiated a number of related covert operations to takeover certain sectors of the Soviet economy, and ten years later in 2001, these programs had finally come back to haunt the U.S. policy makers. Most, if not all of these programs appear to have stepped outside of the boundaries of the law. As a result, investigative agencies from Britain, Switzerland, Russia, Kazakhstan and the Philippines were putting pressure on Congress and the U.S. Department of Justice to open up the accounts in the banks used to finance these covert activities, which were being viewed as criminal activities in foreign courts. Alan Greenspan, the Treasury Department and key banks in the U.S. and Europe were being sued for gold-price fixing or illegal gold sales which appears to have it’s origins in the covert war chest used to wage this war. 39

At the same time, the suits brought by the Holocaust survivors victims of the Marcos regime, and the US Congress under influence of pro-Israeli lobbyists were putting pressure on the Swiss banking cartel to open it’s bullion records to public scrutiny. Full disclosure by these banks during an investigation would have resulted in a major exposure of U.S. Government complicity in some of the greatest financial fraud of the 1980s and early 1990s as well as 50 years of gold bullion theft by numerous U.S. and British government agencies. Moreover, investigation into these accounts would disclose a National Security secret known as the Black Eagle fund, and virtually every covert operation since World War II. Bringing an end to these investigations and preventing this disclosure was the sole objective for the destruction of the WTC and Pentagon.

These investigative and legal pressures began to accumulate in 1997, and in February 1998, Osama Bin Laden declared his fatwa, and Atta started planning the September 11 attacks. To understand the decisions made in 1998 which brought about the attack on the World Trade Center, one must go back in history to appreciate the magnitude of exposure these bankers and government officials faced. Ten years prior to the planning that Atta was beginning, planning had begun for economic war on the Soviet Union. The source of funding for this covert war is traced to the end of World War II, but it was not until 1986 did the size of that war chest make the 1991 attack on the Soviet Union feasible. Understanding the source of that funding is absolutely critical to understanding why the World Trade Center was destroyed in 2001.

Numerous sources have documented that at the end of World War Two, the treasury of the Japanese Empire was discovered in the Philippines by a staff member of General Charles Willoughby, who was General MacArthur’s chief of Intelligence. Then known as the Golden Lily Treasure, this mass of wealth had been accumulated by the Japanese with over fifty years of its army pillaging Southeast Asia and China. It was deposited in the Philippines due to the U.S. submarine blockade of Japan.

Reports vary, but documents in the public domain suggest the recovered treasure was in excess of 280,000 metric tonnes of gold, not including jewels and diamonds. 40 After the War that staff member, Edward Lansdale and Severino Garcia Diaz Santa Romana tortured Major Kojima Kashii – General Yamashita Tomoyuki’s driver –until he revealed and created a map of the gold sites.41

Lansdale briefed Assistant Secretary of War John J. McCloy about the findings, and a U.S. Cabinet level decision was made to confiscate the gold and cover-up its discovery. The gold would be added to the Black Eagle Trust fund. It was McCloy, along with Secretary of the Navy Robert B. Anderson and Secretary of War Henry L Stimson who created the Black Eagle Trust.42

John McCloy, who had shared a box at the 1939 Olympics with Adolph Hitler, went on to become President of the World Bank. Robert Anderson would go on to operate the Commercial Exchange Bank in the British West Indies, be convicted of running illegal banking operations and tax evasion, and be sentenced to prison. 43 A fourth member of that group – William ‘Wild Bill’ Donovan – would go on to found the CIA, distribute the gold to key banks represented by his staffers, and establish AIG as a key partner in the CIA’s covert operations.

The trust they created takes its name from the Nazi Black Eagle stamped on the gold bars of the Third Reich. Gold bullion confiscated from the Reich and not returned to its rightful owners and their heirs was the original source of funding for this trust.44 Over the years, the significance of the Nazi gold would pale in comparison to the confiscated Japanese treasure.

As the fund grew, it was distributed in private accounts across the globe in over 100 banks, and administered by General Earle Cocke, financial advisor to every U.S. President from Truman to Clinton, until his death.45

Most of the individuals who controlled these accounts are long dead, and attempts by their heirs to access these accounts have been met with stonewalling, false imprisonment or death under suspicious circumstances. Santa Romano’s heirs are one example.46 Mrs. V. K. Durham is one such individual. Her husband, Colonel Russell Herman, controlled the Durham Trust. This report will return to their story in a little while.

The men responsible for initiating and executing the confiscation of Nazi and Japanese treasury gold represent the most senior Intelligence officers in the U.S. and Britain at the end of World War II, and the Cabinet of the President of the United States. From the Office of Strategic Services – the OSS – the decision-makers were: • Wild Bill Donovan, the most decorated soldier of World War I and head of the OSS and his direct staff which

included:

• Allen Dulles, future Director of the CIA and a principal of Bank of New York, and legal representative of Brown Brothers, Harriman.47

• Henry S Morgan and Spencer Morgan. Henry and Spencer were the sons of JP Morgan, and would return from their service to manage the financial empire that would evolve from JP Morgan to ‘Morgan and Chase’ to then to ‘Chase Manhattan’ to finally what in 2008 was known as Chase.

• Paul Helliwell would become the primary covert operations banker for U.S. intelligence, setting up in Nassau

Castle Bank and then Mercantile Bank and Trust. When Castle Bank needed to be closed, he set up Nugan Hand Bank. When the Nugan Hand Bank closed, he helped shift banking operations to Household Bank in Chicago, Illinois and to the notorious BCCI bank. His front man, and associate of Bill Donovan was General Earle (a.k.a. Erle) Cocke.48

• General Earl Cocke would be the financial advisor to every President from Truman until Cocke’s death in the year 2000. Cocke was a true American hero in the classical sense: the recipient of the Silver Star, four Bronze Stars and four Purple Hearts. He was also the coordinator for the Black Eagle Fund and Project Hammer, which would be used to bring down the Soviet Union and attempt to bring Soviet oil and gas resources under the control of Western investors.

• George S Moore; future President and CEO of First National City Bank of New York, which would evolve to become Citibank. Citibank would end up with over 116,000 metric tonnes of the Marcos Gold.49

• General George Olmsted; was another World War II hero who subsequently was responsible for distributing U.S. Military Assistance, later becoming President of a Washington DC based bank holding company known as International Bank, which took over the CIA’s Mercantile Bank and Trust in the Bahamas.50 Under Olmsted’s leadership, International Bank sold Financial General Bankshares (FGB) then known as First American, to BCCI.51

• William Colby future CIA director and lawyer for Helliwell’s covert operation banks. • William Casey, decorated World War II veteran, future Director of the CIA. Casey took over from Paul

Helliwell the “Secret Intelligence Branch” of the OSS in Europe in 1945.52

These men would form the core of the OSS that worked to create an “apparatus belli,”53 and virtually all of them would play a dominant role in the worlds’ most important banks. From the British Special Operations Executive (SOE) came participation and support for the OSS from John and William Keswick from the Jardine Matheson Bank.54 The Keswick family would also control the Hong Kong Shanghai Banking Corporation (HSBC).55

Fifty years later, the financial institutions represented by these individuals would become the major financial banks in the world, along with the Swiss-German banks they hid their gold in.

Lansdale and Santa Romana were made responsible for recovery of the treasure. They fabricated a “Communist Revolution” by the Hukbalahak rebels in order to confiscate the land where much of the gold was buried, and proceeded to mine it.56 Several sites sit on Clark Air Force Base.57

Over the years, Lansdale’s personal account in Zurich grew to over thirty thousand metric tonnes – greater than the national treasury of any modern nation state. Santa Romana had multiple accounts, the largest single account was valued at over 20,000 metric tonnes. While these accounts were created in their names, over time it would be shown these were actually government accounts. As a point of reference, the annual gold production of the world is estimated to be 1,200 tonnes, and in 1980 the

U.S. gold repository at Fort Knox held only 8,221 tonnes. There has been no public report of the Fort Knox inventory since 1980.

According to David Guyatt and Sterling and Peggy Seagrave, the Yamashita gold would become the cornerstone of the Black Eagle Fund, from which many covert operations of the U.S. intelligence would be funded. 58

The most common interpretation international law is that the gold should have been either returned to the countries from which it was stolen (as was done with the Nazi gold59), or should have been incorporated into the U.S. Treasury. With no uncertain terms, the U.S. Government’s continued efforts to stifle news on this matter provides prima facie evidence that the confiscation of this gold is illegal.

Lansdale’s operation in the Philippines gave birth to most of the common features of modern covert operations for U.S. Intelligence: bribery, theft, torture, and false flag operations. It would be Lansdale who would initiate a bond between the US intelligence organizations and the Israeli intelligence.

It would be Lansdale that would set precedents for the Intelligence community to retain the services of organized crime on U.S. soil. Lansdale would hire American Mafia family heads Carlos Marcello, Santos Trafficante, Meyer Lansky, and Lucky Luciano in the U.S. war against Fidel Castro in 1961, much as he would hire the Italian Mafia families to wage an illegal operation against the Italian Communist party.

“…the gangsters in Lansdale’ s employ were the very gangsters the FBN was chasing–Carlos Marcello, Santos Trafficante, Meyer Lansky, and Lucky Luciano. … The CIA’s connection, of course, began with ‘Wild Bill’ Donovan’s old OSS and its recruitment of Lucky Luciano and the Corsican mafiosi to beat and murder Communist union dockworkers in Marseilles and elsewhere along the Mediterranean Coast, and to seize Sicily from the Communists. With CIA blessing, and using drug running as a way of financing activities, the Mafia set up drug supply routes back to the U.S. Many an FBN operation would trace the drugs back to Mafia sources, in turn supplied through Lebanon, Turkey, Afghanistan, and elsewhere in the Middle East, only to be thwarted by the far more powerful CIA stepping in and terminating the investigation on national security grounds.”60

It would be Lansdale’s team that would propose and justify sacrificing innocent U.S. civilians in order to rally the American citizenry to support an invasion of foreign soil. This was done under a program run by Brigadier General William H. Craig, who reported to Lansdale for the Cuba project.61

This project was called Operation Northwoods. Documents for this project would be accidentally released from the files of Robert McNamara into the public domain some 40 years later, exposing the degree to which Lansdale’s operatives would go to wage war. 62 In these documents, the U.S. military acknowledged it could wage a “terror” campaign against US citizens in order to justify a second invasion of Cuba. It would be the first official recognition that US intelligence operations used terrorist tactics.

It was Lansdale who oversaw the set up of assassination squads to target Fidel Castro while operating out of Florida. One of Lansdale’s proteges’ in the assassination business was Ted Shackley, would go on to set up assassination squads in Vietnam under Operation Phoenix.63 Shackley would take Felix Rodriguez with him from the Cuba Project to Laos for a secret war in support of Vietnam. Felix Rodriguez was a close confidante of former CIA Director George H.W. Bush, and maintained direct phone contact with Bush when Bush became Vice President under Ronald Reagan.64

When the U.S. intelligence funded, Iran-Contra gun running pilot was shot down in Nicaragua, it was Rodriguez that called George Bush to let him know that the pilot had been captured alive. In Vietnam, Shackley and Rodriguez would expand their circle of operatives to include Oliver North, Richard Secord and Richard Armitage. North, Secord and Armitage had proven themselves as men who could ‘get results’ against the communists by operating outside of the rules. They would provide the second generation of U.S. black ops leadership. The ‘whatever it takes’ zeal that these men developed in service of their country was ruled unacceptable in U.S. Military courts at the Mai Lai Massacre trial65, but it was still condoned by ‘apparatus belli’ spawned by Wild Bill Donovan.

While in Southeast Asia, North, Secord, Armitage, Rodriguez and Shackley would finance their operations through the Nugan Hand bank in Australia rather than with funds under congressional oversight.66 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 Jon 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.67

Frank Nugan’s family ran the primary supply shipping operation between the U.S. Navy base in the Philippines and Australia.68 It is through Frank Nugan and his business partner Peter Abeles, that insight is provided to the flow of some of this Marcos treasure. Peter Abeles was reputed to be a member of what was known in Australia as the Hungarian Mafia and a partner with Henry Keswick. Sir Henry Keswick was the son of SOE officer John Keswick. The Keswick family had controlling interest in Jardine Matheson, which owned and operated Ferdinand Marcos’ gold smelting operation, which was opened in the mid 1970s.69 The Keswick family also had controlling interest in the Hong Kong and Shanghai Banking Corporation (HSBC), which was the largest holder of Santa Romana’s known gold accounts, although Citibank would be the largest recipient of the confiscated treasure.70 When Romana died, the bank refused to hand over his accounts to his heirs, and confiscated his accounts.71

It was Peter Abeles and Sir Henry Keswick that brought Canadian businessman Peter Munk back to business prominence from a scandalous insider-trading lawsuit in Canada in 1967. Munk would partner with Adnan Kashoggi, Sheik Kamal and Edgar Bronfmann in a series of operations which ultimately would evolve into Barrick Gold.72

Barrick Gold would become an investment for nearly every gold bullion bank associated with the Marcos gold recovery. These banks would loan gold to Barrick, which would then sell the borrowed gold as derivatives, with the promise of replacing the borrowed gold with their gold mining operation.

The records of many of those transactions disappeared when Enron collapsed and the trading operation and all its records were taken over by UBS, another major recipient of Marcos gold. The FBI was reportedly conducting an investigation into those transactions, and the investigation files were kept on the 23rd floor of the North Tower of the WTC. A review of the personal accounts of September 11 now suggests that office was deliberately targeted with explosives prior to the collapse of the WTC.73

The Nugan Hand Bank would be one of the many banks used for transferring the Marcos gold from the Philippines into covert operations. Brigadier General Earle Cocke was the President in charge of the Nugan Hand Washington Office, and would be the key manager of Project Hammer and the Black Eagle Trust. Other Nugan Hand Bank employees from U.S. Intelligence operations included:

• General Leroy J. Manor (manager of the Manila branch) former chief of staff of the U.S. Pacific; Command and deputy director for counterinsurgency and special activities; he shared his office with Marcos’s brother-in-law ;

• General Edwin F. Black (president of Hawaii branch) former commander of U.S. forces in Thailand;

• Richard Secord (all around operative with responsibilities in Iran-Contra, Vietnam assassinations, creating Mujahadeen armies in Afghanistan, and central Asia);

• Dale Holmgreen (former chairman CIA’s Civil Air Transport, manager of the Taiwan branch);

• Richard L. Armitage (was special consultant to the Pentagon in Thailand who oversaw the transfer of heroin profits from Indonesia to Shackley’s account in Tehran);

• William Colby (former director of the CIA as legal counsel);

• Rear-Admiral Earl P. Yates, the former Chief of Staff for Policy and Plans of the U.S. Pacific Command and a counter-insurgency specialist, became president of the company;

•Walter McDonald (retired CIA deputy director, headed Annapolis branch);

• Dr. Guy Parker (an expert from the RAND Corporation who came on as a bank consultant) senior Republican foreign policy adviser;

The bank was founded as a funding operation for U.S. covert operations in Australia74, and was a conduit for Marcos gold. One of the objectives of the ‘bank’ was to bring about the pre-mature closure of the Australian labor government. The Whitlam government had quietly threatened to nationalize subsidiaries of American corporations.

“The subsequent inquiries have established the Nugan-Hand bank was to be the organisation used as cover for the operations of Task Force 157. The Task Force 157 was a group set up by Henry Kissinger and it was set up in a quite strange way. It was a mini-CIA which was actually separate from the CIA and probably was set up by Kissinger so he could deny any connection between what the Task Force 157 was doing and the CIA. Nevertheless, the personnel of Task Force 157 included Ted Shackley, who was one of the head of sabotage operations against Cuba, he was Station Chief in Saigon during the Vietnam War, and he was the Chief of the CIA Western Hemisphere Division, so with an impeccable CIA record like that it would be very difficult to disassociate him from what the CIA was doing. The concept of Task Force 157 seems to have been two-fold: firstly, to set up operations against the Whitlam government. And secondly, to go ahead with using Australia as a base for certain clandestine U.S. operations such as arms dealing and smuggling of contraband goods.”75

The Nugan Hand Bank was closed in January 1980 within several days of the unsolved murder or suicide of Frank Nugan. The reasons for his murder have never been identified, but during that time, the operation was at risk of being exposed.

“Bobby Inman, former Deputy Director of the National Security Agency and Deputy Director of the CIA, said on two occasions that he expressed deep concern that investigations of Nugan-Hand would lead to disclosure of a range of dirty tricks played against the Whitlam government (Australian labor government).”76

(The U.S. Intelligence’s modus operandi of using murder for covering its tracks is further documented when the Iran-Contra and October Surprise affairs are reviewed later in this report.) John Hand would disappear a few days after the death of Frank Nugan, never to be seen again. Bank operations were transferred to HouseHold Bank in Chicago, Illinois, where William Colby would be come the unofficial counsel. There, according to Herman Skolnick, Household Bank would continue the work of Nugan Hand.

Among their functions, transferring covert operations funds, assassination team funding, skimming of dope, gambling, and gun-running loot; military, civilian, international. 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. Targeted have been the banks of both friends and enemies alike. (Vince) Foster and his crew — Hillary (Rodham Clinton) and Webster (Hubbell) — used as a cover that they were supposedly “attorneys” for Systematics…. Vincent and Hillary’s role in this was arranged and supervised by a Chicago-based law firm Hopkins & Sutter…77.

Many units of Household Finance were shortly thereafter taken over by Harris Bank, which was then taken over by the Bank of Montreal. The Bank of Montreal would be controlled by the Bronfmann family, which became heavily invested in Barrick Gold. It would be Edgar Bronfmann that would cut a deal with the Swiss banking cartel in 1998 that would derail U.S. Congressional and Israeli pressure for an investigation into the Holocaust and Marcos gold accounts.

By the end of the 1980s, the banks that had their agents in the OSS intelligence operations at the end of World War II were the banks that would be the dominant global players by 2001.

• Morgan Guaranty Trust

• Chase Manhattan

• Citibank

• Jardine Matheson

• UBS

• Deutschebank

• HSBC

The covert operations funded by the Black Eagle Trust in the 1960s and 1970s became visible stains on the global image of the U.S. despite all efforts to keep them under cover. In an effort to clean house, President Jimmy Carter would order the retirement of over 800 covert operatives.78

Many of these operatives would move into private consulting and security firms and be employed as subcontractors for covert operations. Thus began a loose association of private operatives that would be referred to as “the Enterprise” in the years to come. George H.W. Bush, having been CIA Director, had many acquaintances in this group, and would work with them to restore their influence and control over U.S. foreign policy and the foreign investment opportunities it created for their benefit.

Taking Control

Unlike other presidential administrations, the Reagan administration was uniquely characterized by having the Vice President – who at that time was George H.W. Bush – in control of Foreign Policy. That control was established in an agreement between Bush and Reagan prior to their election.79 The agreement was later formalized with Executive Order 12333.80 As William Casey’s biographer pointed out, Reagan “knew little about foreign policy and cared less…” and as a result sharpies around the President took over and they ran him.”81

In November 1980, Ronald Reagan was elected to the White House on a slim margin of votes, defeating incumbent Jimmy Carter. The few percentage points in votes which were responsible for giving Reagan and Bush the victory were attributed to President Carter’s inability to rescue and free hostages being held in Iran.82

The failed rescue attempt of the hostages was reported to be the responsibility of Oliver North, Richard Secord and Albert Hakim, who planned and controlled the rescue operation. 83 In the meantime, it is reported that the release of the hostages by Iran was deliberately delayed by negotiations led by George Bush, and David Kimche of the Israeli Mossad- the Israeli equivalent of the U.S. Central Intelligence Agency, and Saudi businessman Adnan Khashoggi. For $40 million dollars, the Iranians would delay the release of the hostages until after the election.84 The men involved in this operation, referred to in the chapters of history as “the October Surprise” were

• George HW Bush • Adnan Khashoggi • Oliver North • David Kimche

• Bob Gates • Richard Secord • William Casey

Sixty-nine days after the Inauguration, John Hinkley attempted to assassinate President Reagan. Eight days prior to that attempt, there were a series of unprecedented policy changes that put George Bush in charge of Foreign Policy and National Security. On March 22, 1981, Bush took control of the “Emergency Crisis Management Staff,” in a Cabinet meeting. That role conferred new roles and powers on Bush, including “unprecedented powers for a vice- president.”85 Vice President George Bush was named the leader of the United States “crisis management ” staff, as a part of the National Security Council system.86 Then, on March 30, 1981, eight days after these powers were conferred on Bush, President Reagan was shot. On that day, there were actually two unsigned versions of National Security Directive 1 (NSDD1), one which made Al Haig and another which made George Bush the caretaker of the “red phone’ in case of National Emergency. The content of either version has never been released to the public.

Sixty nine days after the inauguration, the man whose operatives had bribed terrorists in violation of American policy and law, the man whose close colleagues and advisors planned a failed rescue attempt which cost the lives of US soldiers – all with the purpose of controlling the American Presidency, was now in control of US foreign policy.87

The father of the assassin that put Bush in power was John (a.k.a. Jack) Hinckley, Sr., who was the owner of Vanderbilt Oil. Hinckley had been giving maximum donations every year to George H.W. Bush since he started running for Congress. “When the Hinckley oil company, Vanderbilt Oil started to fail in the 1960s, Bush, Sr.’s, Zapata Oil financially bailed out Hinckley’s company. Hinckley had been running an operation with six dead wells, but he began making several million dollars a year after the Bush bailout.”

John Hinckley, Sr., had also been extensively involved in an executive position with U.S. Ministries for World Vision, a widely reported CIA front operation. After the Jonestown Massacre, World Vision took over Jonestown. . In The Black Hole of Guyana: The Untold Story of the Jonestown Massacre, John Judge painstakingly documents that Jonestown was a CIA operation for converting dispossessed and lonely refugees into assassins. In an operation that was falling under Congressional investigation, the evidence had to be eliminated – and nearly all the inhabitants were murdered to prevent disclosure.88

The assassin John Hinckley’s brother Scott Hinckley, and Neil Bush were not only friends, but had recently partied together and were scheduled to have dinner with each other that very day. Also, on the very day John Hinckley attempted to kill Reagan, three Department of Energy auditors were pressuring Hinckley’s brother Scott, with a $2 million penalty. This penalty would later disappear.89 George H.W. Bush, with his new found ‘Emergency’ powers, would deny Al Haig’s formal request for an investigation into the assassination attempt.

The covert business dealings with the Iranians and Israelis which originated with Kashoggi and Kimche in July 1980 in Hamburg with the October Surprise arrangement, would grow into a larger covert operation over the years, and provide an opening to the Soviet KGB that would allow the U.S. to fund a coup against Gorbachev in 1991. In this operation, a number of key Bush policy advisors and operatives would conduct what they collectively viewed should be the “honorable and right” foreign policy of the U.S., rather than what Congress had determined what that policy should be by law. The October Surprise operation would grow and be overshadowed by the larger Iran-Contra operation.

Members of Bush’s covert intelligence cadre sold weapons to Iran, an avowed enemy of the U.S., and illegally used the profits to continue funding anti-Communist rebels, the Contras, in Nicaragua. Viewed as anti- communists, the CIA Director characterized them as being motivated by greed.90

The premise of using covert funding to fight the cold war would re-emerge a few short years later when the Bush cadre decided to take on the Soviet Union.

The entire Iran-Contra operation almost fell apart in 1986 and became public when the Nicaraguan government shot down a U.S. plane carrying weapons to the Contra rebels, and captured the U.S. pilot- Eugene Hasenfus. The discovery of these shipments – a violation of U.S. law – initiated a series of Congressional investigations and an investigation by an Independent Counsel. The meetings in Hamburg and Paris which were held to prevent an October Surprise were never mentioned, and the two pilots who flew Bush to Paris were immediately imprisoned and discredited when they sought to testify in front of Congress. A court would later find the charges against the pilots to be without support, but by that time their testimony had been blocked and discredited.

“Gunther Russbacher.. claimed to have videotape proof and sixteen witnesses to his having flown George Bush to one of the October Surprise meetings.”91

Ari Ben-Menashe a major Israeli coordinator of these deals, would also testify that he had personally seen George H.W. Bush at the Paris meeting

“In June, I also testified under oath, in closed session, before the Senate Foreign Relations committee. I stated unequivocally that I had, seen Bush in Paris.”92

According to Ari Ben-Menashe, a major Israeli coordinator of these deals, four of the five supply chains set up to arm Iran were never investigated, and continued to operate right through the Congressional Hearings on Iran Contra.

“…Tower knew perfectly well there was an ongoing arms channel. Yet the Tower Commission made no mention of it. In February 1987, while Tower was investigating a minor part of the sales to Iran, the Joint Israel-Iran Committee, together with Robert Gates, ran the biggest ever arms supply operation to Iran. The official inquiry was better than any smokescreen we…could have dreamed up.”93

Quite simply, the Iran-Contra team continued to violate the law even while being investigated by Congress. There were a few indictments and convictions as a result of the Iran-Contra affair, but generally those involved were exonerated. Bush later pardoned the few lower level government officials that were indicted and convicted. Dick Cheney was one of the Congressional committee members that decided that no crimes had been committed, and that Bush was not involved. Robert Mueller, who as U.S. Attorney headed the Noriega (a related Iran-Contra inquiry)94 and the BCCI investigations,95 found no evidence pointing to illegal behavior by George H.W. Bush. His subsequent investigation into Enron found no wrong doing by Enron.96 Mueller would later be called up to head the WTC Investigation.

To support this cover-up of the Iran-Contra operations, witnesses had to be silenced.

“Navy Lt. Commander Alexander Martin was, in effect, the chief accountant for the Reagan/Bush drug operations run by Marine Lt. Col. Oliver North, through an obscure arm of the White House National Security Council called the National Programs Office. In a radio interview with talk show host Tom Valentine last July, Martin spoke not only of drugs and money, but death. “Out of roughly 5,000 of us who were originally involved in Iran-Contra, approximately 400, since 1986, have committed suicide, died accidentally or died of natural causes. In over half those deaths, official death certificates were never issued. In 187 circumstances, the bodies were cremated before the families were notified. “Martin then said he was lying low.”97

“The Manhattan D.A. who closed the American branch (of the BCCI) announced that 16 witnesses had died in the course of investigating the bank’s entanglements in covert operations of the CIA, arms smuggling to Iraq, money laundering and child prostitution.” 98

“From October 30th to Christmas eve there were four attempts to kill, me and our friend William Smith, who everyone thinks is a high ranking Naval Intelligence officer. During that same time over fifty CIA operatives, their wives and families were killed in an attempt by the Robert Gates faction of the CIA to cover its tracks before Clinton’s team came to power. After the last attempt on my life, my husband’s SEAL team arranged safe passage for me to Vienna, Austria, where I stayed until Robert Gates was removed as Director of the CIA.”99

Ari Ben Menashe writes that Amiran Nir was assassinated to prevent his testimony at the trial of Oliver North. That testimony would have implicated George H.W. Bush.100 Senator John Heinz and Senator Towers would later meet the same fate as Amiran Nir – death by plane crash. The pattern of taking the lives of anyone who created a risk of exposure of these National Security operations was repeated in 1991, and again in 2001.

The names of the individuals involved in the Iran-Contra scandal include:

• George H.W . Bush

• Adnan Khashoggi

• Oliver North

• David Kimche

• Richard Secord

• Richard Armitage

• Russell Hermann

• Bob Gates

• Shiek Kamal Adham

• Khalid bin Mahfouz

• Dick Cheney

• Farhad Azima

• Alton G. Keel Jr.

• Bruce Rappaport

• Alfred Hartmann

• Porter Goss

• Richard Armitage

• Shaul Eisenberg

• Robert Mueller

Most of these would become the key operatives in the secret war against the Soviet Union.

As the Iran-Contra operation was unfolding, on the other side of the world, another important development was occurring. Ferdinand Marcos, the pro-U.S. dictator of the Philippines was being muscled by the Bush foreign policy machine to hand-over to the U.S. by what is estimated by some to be possibly as high as an additional 73 thousand tonnes of the remaining Golden Lily Treasure. At that time, the treasure had an estimated value of $500 to $600 billion. 101

The individuals associated with this operation were

• George HW Bush

• Adnan Khashoggi

• Oliver North

• Russell Hermann

• Paul Wolfowitz

U.S. intelligence operations had been siphoning off the Marcos gold for three decades. Ferdinand Marcos, however, continued to discover even more of the buried treasure. Marcos had started to sell it on the market during the 1970s in bits and pieces, with the assistance of Adnan Khashoggi.102 For some unknown reason, the Enterprise decided they wanted it all in 1986. That reason is now known – being to fund a war against the Soviet Union. Vice President George Bush ultimately took the gold from Marcos in 1986 when Marcos was forced out of office. It is estimated that Marcos was in possession of 73,000 tonnes of gold at that time.103 In removing Marcos from office, the U.S. was supported by his General Fidel Ramos, who defected from Marcos’s ranks to support Corazon Aquino. Fidel Ramos was later made a Board member of the Carlyle Group. The Marcos gold was removed to a series of banks, most notably Citibank, Chase Manhattan, Hong Kong Shanghai Banking Corporation, UBS and Banker’s Trust, and held in a depository in Kloten Switzerland. Bush administrators involved in the forced departure of Marcos were Richard Armitage and Paul Wolfowitz. Adnan Khashoggi was also involved, helping move the gold. It was at this time that Khashoggi , Shiek Kamal Adham, Khalid bin Mahfouz, and Peter Munk would create a Canadian gold mining company called Barrick Gold.

• Adnan Khashoggi was the international arms merchant that has supported the October Surprise and Iran-Contra deals and helped Marcos sell his gold on the market;

• Shiek Kamal Adham was Chief of Saudi Intelligence;• Khalid bin Mahfouz was a Saudi investor in several Bush family companies…notably Harken Energy, and 20% owner of the BCCI. Much later, Kashoggi and Adham would be primary investors in a Dubai base company named Oryx. Oryx, along with U.S. investor Wally Hilliard would be the owner of Huffman Aviation where Mohammad Atta and several September 11 hijackers would do their flight training.104 105 Hilliard would later be shown to have the backing of the Bush family, Jeb Bush in particular. 106

Barrick would become a quiet gold producing partner for a number of major banks, and its activities subject to an FBI investigation into gold-price-fixing. The records on this investigation were kept in the FBI office on the 23rd floor of the North Tower which was destroyed by bomb blasts shortly before the Tower collapsed. The ultimate destination of the Golden Lily Treasure, and the source of the ‘loaned’ gold that flooded the market for 10 years has never been officially explained.

A key player in the Marcos gold would be Banker’s Trust, which was taken over by Alex Brown & Sons, after Banker’s Trust floundered financially on its Russian loans in the mid 1990s. These Russian loans were facilitated by Enron, starting in August of 1993, and very possibly were part of the Project Hammer takeover of Soviet industry. Alex Brown‘s involvement would bring to the forefront the names of three names of individuals who would play multiple roles in this mystery:

• Buzz Krongard

• Mayo Shattuck

• J Carter Beese

Jr. Buzz Krongard is reported as the mentor of Beese and Shattuck from their years together at Alex Brown. Additionally, he managed the merger between Bankers Trust and Deutschebank Alex Brown. Bankers Trust, Zurich was a key Marcos gold holder. Krongard would move on to become Chairman of the investment bank A.B. Brown, Vice Chairman of Banker’s Trust, and Executive Director of the CIA at the time of September 11.

Mayo Shattuck would be reported to be the personal banker for Adnan Khashoggi and Edgar Bronfmann during their partnership at Barrick Gold.107 He would move on to become the CEO of Deutschebank who would resign as CEO for unexplained reasons the day after September 11, and would not be at the WTC office that day when the tower collapsed. It was his bank that was identified as the source of the illegal stock options that indicated there was insider trading taking advantage of the September 11 tragedy.

After September 11, he would immediately move over to the firm that would replace Enron as the primary oil and gold derivatives trader – Constellation Energy.

Carter Beese, before showing up to work at Alex Brown was schooled at the CIA training facilities of the U.S. War College and John Hopkins. George H.W. Bush appointed him to the board of directors of the Overseas Private Investment Corporation in 1992. Since 1992, OPIC has provided more than $4.5 billion in finance and insurance to more than 140 projects in Russia. He was also Chairman of Riggs Bank, as well as an SEC Commissioner (appointed by Bush.) Additionally, he was Chairman at Alex Brown from 1994 to 1997, and would move from there to also be vice-Chairman of Bankers Trust. He was also President of Riggs Capital Partners.

Riggs controlled the famous Riggs-Valmet consultants who set up the international financial apparatus for the Russian oligarchs and rogue KGB allowing them to steal the Soviet treasury and destroy the Russian economy. Carter Beese’s death was reported as a suicide in 2006.

What happened to the Marcos gold after it was confiscated by U.S. agents in 1986 has never been reported, but throughout the early 1990s, the world gold market would be befuddled by the mysterious appearance of thousands of tonnes of gold which appeared to suppress the price of gold. An initial lawsuit was opened against the U.S. Government by renowned lawyer Mel Belli, who represented a relative of the deceased Santa Romana, attempting to claim his gold from Citibank.108

That suit remained open in 2007. There were two subsequent lawsuits introduced in the U.S. against a number of financial institutions and Alan Greenspan to determine the source of this gold. Gold traders suspected the U.S. Treasury was the source of this gold, and contended that U.S. gold stock was being illegally manipulated for private gain by the bullion banks. The first lawsuit by Reginald Howe was seen as having merit and cause, but was denied by the court for jurisdictional reasons.

A second suit by Donald W. Doyle of Blanchard in which Barrick Gold was a primary defendant was settled out-of-court in 2006 and sealed under agreement. Barrick was also mentioned in the Howe suit as a knowledgeable party. In 1992, Barrick had received special treatment from George H.W. Bush during the last several days of his Presidency, when for a nominal $10,000, Barrick received rights to mine deposits ‘valued’ at $10 billion on public domain lands in Nevada.109

While there was nothing illegal to the arrangement, a special process put in place by President Bush allowed Barrick to use outside specialists to determine the value of the claim, allowing them to control the appraised value of the deposit. That special process was not made available to other mining applicants.

Shortly thereafter, George H.W. Bush served on the Advisory Board of Barrick Gold. In the long term, the Barrick operation would create billions of dollars of paper gold by creating ‘gold derivatives’, under the reports that a Nevada claim whose potential was doubted by industry experts had actually produced a fortune.110 A major distribution channel for the sale of Barrick’s gold futures would be Enron.

Enron would also become the vehicle by which oil and gas contracts from the former Soviet Union (vehicles for Soviet money-laundering) were processed, and it too would become collateral damage of the Cold War.

Interestingly, Barrick, which has no mining operations in Europe, uses two refineries in Switzerland: MKS Finance S.A. and Argor-Heraeus S.A. – both on the Italian border near Milan, a few hours away from the gold depository in Zurich.

The question that Barrick and other banks needed to avoid answering is: what gold was Barrick refining in Switzerland, as they have no mines in that region?


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