Mossad ran 9/11 Arab "hijacker" terrorist operation

From Opinion Maker January 27, 2011
By Wayne Madsen

British intelligence reported in February 2002 that the Israeli Mossad ran the Arab hijacker cells that were later blamed by the U.S. government’s 9/11 Commission for carrying out the aerial attacks on the World Trade Center and Pentagon. WMR has received details of the British intelligence report which was suppressed by the government of then-Prime Minister Tony Blair.

A Mossad unit consisting of six Egyptian- and Yemeni-born Jews infiltrated “Al Qaeda” cells in Hamburg (the Atta-Mamoun Darkanzali cell), south Florida, and Sharjah in the United Arab Emirates in the months before 9/11. The Mossad not only infiltrated cells but began to run them and give them specific orders that would eventually culminate in their being on board four regularly-scheduled flights originating in Boston, Washington Dulles, and Newark, New Jersey on 9/11.

The Mossad infiltration team comprised six Israelis, comprising two cells of three agents, who all received special training at a Mossad base in the Negev Desert in their future control and handling of the “Al Qaeda” cells. One Mossad cell traveled to Amsterdam where they submitted to the operational control of the Mossad’s Europe Station, which operates from the El Al complex at Schiphol International Airport. The three-man Mossad unit then traveled to Hamburg where it made contact with Mohammed Atta, who believed they were sent by Osama Bin Laden. In fact, they were sent by Ephraim Halevy, the chief of Mossad.

The second three-man Mossad team flew to New York and then to southern Florida where they began to direct the “Al Qaeda” cells operating from Hollywood, Miami, Vero Beach,  Delray Beach, and West Palm Beach. Israeli “art students,” already under investigation by the Drug Enforcement Administration for casing the offices and homes of federal law enforcement officers, had been living among and conducting surveillance of the activities, including flight school training, of the future Arab “hijacker” cells, particularly in Hollywood and Vero Beach.

In August 2001, the first Mossad team flew with Atta and other Hamburg “Al Qaeda” members to Boston. Logan International Airport’s security was contracted to Huntleigh USA, a firm owned by an Israeli airport security firm closely connected to Mossad — International Consultants on Targeted Security – ICTS. ICTS’s owners were politically connected to the Likud Party, particularly the Netanyahu faction and then-Jerusalem mayor and future Prime Minister Ehud Olmert. It was Olmert who personally interceded with New York Mayor Rudolph Giuliani to have released from prison five Urban Moving Systems employees, identified by the CIA and FBI agents as Mossad agents. The Israelis were the only suspects arrested anywhere in the United States on 9/11 who were thought to have been involved in the 9/11 attacks.

The two Mossad teams sent regular coded reports on the progress of the 9/11 operation to Tel Aviv via the Israeli embassy in Washington, DC. WMR has learned from a Pentagon source that leading Americans tied to the media effort to pin 9/11 on Arab hijackers, Osama Bin Laden, and the Taliban were present in the Israeli embassy on September 10, 2001, to coordinate their media blitz for the subsequent days and weeks following the attacks. It is more than likely that FBI counter-intelligence agents who conduct surveillance of the Israeli embassy have proof on the presence of the Americans present at the embassy on September 10. Some of the Americans are well-known to U.S. cable news television audiences.

In mid-August, the Mossad team running the Hamburg cell in Boston reported to Tel Aviv that the final plans for 9/11 were set. The Florida-based Mossad cell reported that the documented “presence” of the Arab cell members at Florida flight schools had been established.

The two Mossad cells studiously avoided any mention of the World Trade Center or targets in Washington, DC in their coded messages to Tel Aviv. Halevy covered his tracks by reporting to the CIA of a “general threat” by an attack by Arab terrorists on a nuclear plant somewhere on the East Coast of the United States. CIA director George Tenet dismissed the Halevy warning as “too non-specific.” The FBI, under soon-to-be-departed director Louis Freeh, received the “non-specific” warning about an attack on a nuclear power plant and sent out the information in its routine bulletins to field agents but no high alert was ordered.

The lack of a paper trail pointing to “Al Qaeda” as the masterminds on 9/11, which could then be linked to Al Qaeda’s Mossad handlers, threw off the FBI. On April 19, 2002, FBI director Robert Mueller, in a speech to San Francisco’s Commonwealth Club, stated: “In our investigation, we have not uncovered a single piece of paper — either here in the United States, or in the treasure trove of information that has turned up in Afghanistan and elsewhere — that mentioned any aspect of the September 11 plot.”

  The two Mossad “Al Qaeda” infiltration and control teams had also helped set up safe houses for the quick exfiltration of Mossad agents from the United States. Last March, WMR reported: “WMR has learned from two El Al sources who worked for the Israeli airline at New York’s John F. Kennedy airport that on 9/11, hours after the Federal Aviation Administration (FAA) grounded all civilian domestic and international incoming and outgoing flights to and from the United States, a full El Al Boeing 747 took off from JFK bound for Tel Aviv’s Ben Gurion International Airport. The two El Al employee sources are not Israeli nationals but legal immigrants from Ecuador who were working in the United States for the airline. The flight departed JFK at 4:11 pm and its departure was, according to the El Al sources, authorized by the direct intervention of the U.S. Department of Defense. U.S. military officials were on the scene at JFK and were personally involved with the airport and air traffic control authorities to clear the flight for take-off. According to the 9/11 Commission report, Transportation Secretary Norman Mineta ordered all civilian flights to be grounded at 9:45 am on September 11.” WMR has learned from British intelligence sources that the six-man Mossad team was listed on the El Al flight manifest as El Al employees

WMR previously reported that the Mossad cell operating in the Jersey City-Weehawken area of New Jersey through Urban Moving Systems was suspected by some in the FBI and CIA of being involved in moving explosives into the World Trade Center as well as staging “false flag” demonstrations at least two locations in north Jersey: Liberty State Park and an apartment complex in Jersey City as the first plane hit the World Trade Center’s North Tower. One team of Urban Moving Systems Mossad agents was arrested later on September 11 and jailed for five months at the Metropolitan Detention Center in Brooklyn. Some of their names turned up in a joint CIA-FBI database as known Mossad agents, along with the owner of Urban Moving Systems, Dominik Suter, whose name also appeared on a “Law Enforcement Sensitive” FBI 9/11 suspects list, along with the names of key “hijackers,” including Mohammed Atta and Hani Hanjour, as well as the so-called “20th hijacker,” Zacarias Moussaoui.

Suter was allowed to escape the United States after the FBI made initial contact with him at the Urban Moving Systems warehouse in Weehawken, New Jersey, following the 9/11 attacks. Suter was later permitted to return to the United States where he was involved in the aircraft parts supply business in southern Florida, according to an informe3d source who contacted WMR. Suter later filed for bankruptcy in Florida for Urban Moving Systems and other businesses he operated: Suburban Moving & Storage Inc.; Max Movers, Inc.; Invsupport; Woodflooring Warehouse Corp.; One Stop Cleaning LLC; and City Carpet Upholstery, Inc. At the time of the bankruptcy filing in Florida, Suter listed his address as 1867 Fox Court, Wellington, FL 33414, with a phone number of 561 204-2359.

 

From the list of creditors  it can be determined that Suter had been operating in the United States since 1993, the year of the first attack on the World Trade Center. In 1993, Suter began racking up American Express credit card charges totaling $21,913.97. Suter also maintained credit card accounts with HSBC Bank and Orchard Bank c/o HSBC Card Services of Salinas, California, among other banks. Suter also did business with the Jewish Community Center of Greater Palm Beach in Florida and Ryder Trucks in Miami. Miami and southern Florida were major operating areas for cells of Israeli Mossad agents masquerading as “art students,” who were living and working near some of the identified future Arab “hijackers” in the months preceding 9/11.

ABC’s 20/20 correspondent John Miller ensured that the Israeli connection to “Al Qaeda’s” Arab hijackers was buried in an “investigation” of the movers’ activities on 9/11. Anchor Barbara Walters helped Miller in putting a lid on the story about the movers and Suter aired on June 21, 2002. Miller then went on to become the FBI public affairs spokesman to ensure that Mueller and other FBI officials kept to the “Al Qaeda” script as determined by the Bush administration and the future 9/11 Commission. But former CIA chief of counter-terrorism Vince Cannistraro let slip to ABC an important clue to the operations of the Mossad movers in New Jersey when he stated that the Mossad agents “set up or exploited for the purpose of launching an intelligence operation against radical Islamists in the area, particularly in the New Jersey-New York area.” The “intelligence operation” turned out to have been the actual 9/11 attacks. And it was no coincidence that it was ABC’s John Miller who conducted a May 1998 rare interview of Osama Bin Laden at his camp in Afghanistan. Bin Laden played his part well for future scenes in the fictional “made-for-TV” drama known as 9/11.

WMR has also learned from Italian intelligence sources that Mossad’s running of “Al Qaeda” operatives did not end with running the “hijacking” teams in the United States and Hamburg. Other Arab “Al Qaeda” operatives, run by Mossad, were infiltrated into Syria but arrested by Syrian intelligence. Syria was unsuccessful in turning them to participate in intelligence operations in Lebanon. Detailed information on Bin Laden’s support team was offered to the Bush administration, up to days prior to 9/11, by Gutbi al-Mahdi, the head of the Sudanese Mukhabarat intelligence service. The intelligence was rejected by the Biush White House. It was later reported that Sudanese members of “Al Qaeda’s” support network were double agents for Mossad who had also established close contacts with Yemeni President Ali Abdullah Saleh and operated in Egypt, Saudi Arabia, and Eritrea, as well as Sudan. The Mossad connection to Al Qaeda in Sudan was likely known by the Sudanese Mukhabarat, a reason for the rejection of its intelligence on “Al Qaeda” by the thoroughly-Mossad penetrated Bush White House. Yemen had also identified “Al Qaeda” members who were also Mossad agents. A former chief of Mossad revealed to this editor in 2002 that Yemeni-born Mossad “deep insertion” commandos spotted Bin Laden in the Hadhramaut region of eastern Yemen after his escape from Tora Bora in Afghanistan, following the U.S. invasion.

French intelligence determined that other Egyptian- and Yemeni-born Jewish Mossad agents were infiltrated into Sharjah in the United Arab Emirates as radical members of the Muslim Brotherhood. However, the “Muslim Brotherhood” agents actually were involved in providing covert Israeli funding for “Al Qaeda” activities. On February 21, 2006, WMR reported on the U.S. Treasury Secretary’s firing by President Bush over information discovered on the shady “Al Qaeda” accounts in the United Arab Emirates: “Banking insiders in Dubai report that in March 2002, U.S. Secretary of Treasury Paul O’Neill visited Dubai and asked for documents on a $109,500 money transfer from Dubai to a joint account held by hijackers Mohammed Atta and Marwan al Shehhi at Sun Trust Bank in Florida. O’Neill also asked UAE authorities to close down accounts used by Al Qaeda .  . . . The UAE complained about O’Neill’s demands to the Bush administration. O’Neill’s pressure on the UAE and Saudis contributed to Bush firing him as Treasury Secretary in December 2002 ” O’Neill may have also stumbled on the “Muslim Brotherhood” Mossad operatives operating in the emirates who were directing funds to “Al Qaeda.”

After the collapse of the Soviet Union and the rise to power of the Taliban in Afghanistan, Sharjah’s ruler, Sultan bin Mohammed al-Qasimi, who survived a palace coup attempt in 1987, opened his potentate to Russian businessmen like Viktor Bout, as well as to financiers of radical Muslim groups, including the Taliban and “Al Qaeda.”

Moreover, this Israeli support for “Al Qaeda” was fully known to Saudi intelligence, which approved of it in order to avoid compromising Riyadh. The joint Israeli-Saudi support for “Al Qaeda” was well-known to the Sharjah and Ras al Khaimah-based aviation network of the now-imprisoned Russian, Viktor Bout, jailed in New York on terrorism charges. The presence of Bout in New York, a hotbed of Israeli intelligence control of U.S. federal prosecutors, judges, as well as the news media, is no accident: Bout knows enough about the Mossad activities in Sharjah in support of the Taliban and Al Qaeda in Afghanistan, where Bout also had aviation and logistics contracts, to expose Mossad as the actual mastermind behind 9/11. Bout’s aviation empire also extended to Miami and Dallas, two areas that were nexuses for the Mossad control operations for the “Al Qaeda” flight training operations of the Arab cell members in the months prior to 9/11.

 Bout’s path also crossed with “Al Qaeda’s” support network at the same bank in Sharjah, HSBC. Mossad’s phony Muslim Brotherhood members from Egypt and Yemen controlled financing for “Al Qaeda” through the HSBC accounts in Sharjah. Mossad’s Dominik Suter also dealt with HSBC in the United States. The FBI’s chief counter-terrorism agent investigating Al Qaeda, John O’Neill, became aware of the “unique” funding mechanisms for Al Qaeda. It was no mistake that O’Neill was given the job as director of security for the World Trade Center on the eve of the attack. O’Neill perished in the collapse of the complex.Mossad uses a number of Jews born in Arab countries to masquerade as Arabs. They often carry forged or stolen passports from Arab countries or nations in Europe that have large Arab immigrant populations, particularly Germany, France, Britain, Denmark, Sweden, and the Netherlands.

For Mossad, the successful 9/11 terrorist “false flag” operation was a success beyond expectations. The Bush administration, backed by the Blair government, attacked and occupied Iraq, deposing Saddam Hussein, and turned up pressure on Israel’s other adversaries, including Iran, Syria, Pakistan, Hamas, and Lebanese Hezbollah. The Israelis also saw the U.S., Britain, and the UN begin to crack down on the Lebanese Shi’a diamond business in Democratic Republic of Congo and West Africa, and with it, the logistics support provided by Bout’s aviation companies, which resulted in a free hand for Tel Aviv to move in on Lebanese diamond deals in central and west Africa.

Then-Israeli Finance Minister Binyamin Netanyahu commented on the 9/11 attacks on U.S. television shortly after they occurred. Netanyahu said: “It is very good!” It now appears that Netanyahu, in his zeal, blew Mossad’s cover as the masterminds of 9/11.

Wayne Madsen is a Washington, DC-based investigative journalist, author and syndicated columnist. He has written for several renowned papers and blogs

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Gary North on Interest

From Realcurrencies's Blog 

By Anthony Migchels

So at long last, Gary North has felt the need to say something about interest. Beside, of course, whatever he had to say in his massive 20 volume economic commentary on the Bible.
I’m glad he did.
The fact that Austrian Economists felt they could ignore it, was bad news for the cause.
Next, we’ll look at what he has to say, but first let’s see what he did not deem necessary to discuss.
What he didn’t say
There is the fact that interest is being payed by the poor, to the rich.
Adds up, doesn’t it? The rich have money, the poor don’t. So the rich lend it to the poor and receive interest in return.
In Germany Margrit Kennedy quantified the wealth transfer. It transpires, that the poorest 80% pay more interest than they receive. Only the richest 10% receive more interest than they pay. The next 10% lose nor win through interest.
Predictably, within the top 10% bracket the same process is going on: the poorest 8% pay more than they receive to the richest 1%. Even in the top 1% bracket, the same thing is happening.
A decent explanation for the Rothschilds, wouldn’t you say?
On the other side of the spectrum, we see the same inverted. The poorest 10% lose to all the higher 10% brackets. The 70% bracket almost receives as much interest from the poorer classes, than he loses to richer.
So how much money are we talking about?
In Germany it has been established that the poorest 80% lose 1 billion euro’s per day to the richest 10%. That’s about 365 billion euro’s per year.
Extrapolated to the USA, we may expect the poorest 80% pay at least a trillion per year to the richest 10%.
That may not even sound that much with a 14 trillion GDP, but remember what percentage the richest 10% take of that GDP and what the poorest 10% earns.
So the system intrinsically greatly favors the rich.
Another major item that Gary North ignores is this:
Even if you have no outstanding debt, you lose 45% of your disposable income to interest, assuming you spend all of your income, which is true for no less than the poorest half of the US.
How come? Producers incur capital costs while producing the stuff we want. This is a no brainer, but nobody ever cared to calculate what these costs really amounted to.
H. Creutz and Margrit Kennedy did and they came up with this astounding number.
The numbers differ per sector. Food  prices apparently consist of about 25% interest. Capital intensive industries like construction can see percentages up to an incredible 75%. Imagine that: the figures show that about 75% of the costs of building a home are costs for capital.
All these numbers are from Margrit Kennedy’s (below)classic ‘Why we need Monetary Innovation‘, a shorter version is here.

Finally, let’s consider the old tale of the mortgage.
You pay 300k interest over thirty years for 200k home. Nowadays this money is just created when you borrow it. This we consider unfair. So now we are led to believe we must have Gold instead?
We should take it a step further. If we can create the money for nothing, we should pay almost nothing for it.
That is the basic case for interest free currency and Gary North, this is what he ignores, and as we shall see, has done nothing to refute in any other way.
What he did say
Let’s begin with the latter part of his essay. North pens a lengthy litany on how, with a stable money supply, interest rates would automatically go down to almost zero through price deflation.
He’s well known for his predilection for deflation. Declining prices. Wonderful, right?
But he never mentions deflation is pleasant for creditors. Both the value of the outstanding debts and the interest payed over them increase.
As we have seen, there are many more debtors than creditors, so deflation is a nightmare for the vast majority of the people.
Also, because in deflation money is gaining value, there is strong incentive to hoard it, instead of spending it. This diminishes the urge to invest. And this harms economic growth.
Next, he ignores the question where the bankers are going to get their Gold from. Or better: he simply states banks attract Gold by taking in deposits in exchange for interest. He claims free market forces will eventually force these depositors to accept close to zero interest rates. Because it is so handy for them to store the Gold there.
Ahum?
North assumes that the whole world will immediately run to a newly opened full reserve Gold bank to dump all their gold there as quickly as possible?
Well. Maybe. But theoretically, we must take into account the notion that some parties might be playing the Gold market. The boys at Gata certainly seem to think so.
Gold has been a strategic commodity for a long time. I think it might be a little risky to not consider someone may have cornered the Gold market.
The possibility is, that some powerful parties have amassed a lot of the Gold. They would be able to dominate a Gold market and set interest rates as a Monopoly would.
All this is mere speculation, maybe. But I’m certainly worried about it.
Furthermore, the past does not give much hope for the idea of zero interest rates for Gold. And that was in an era that through fractional reserve lending, more liquidity was in circulation than there was Gold.
North concludes his deflation narrative in this way:
“In a capitalist world in which there is no increase in the money supply, there would be low rates of interest in an expanding economy. Banks might offer – probably would offer – loans at zero percent or slightly above to borrowers, and also offer negative rates of interest – charges for depositing gold – to depositors. They would sell gold storage and check-writing services.
Inconceivable? Really? Have you looked at what your bank is paying you to get you to deposit your money? Look at what the U.S. Treasury is paying: one one-hundredth of one percent per annum on 90-day T-bills. If this can happen in this economy, it can surely happen in a full gold coin standard economy with falling prices.”
But this is complete rubbish of course: North (right) should know we live in a banker induced boom/bust cycle. They bring down rates only to bring the whole crowd into debt, then they raise rates again. Expect rising rates at some point this time also.
In the Gold Standard of yesterday, there was never zero percent credit and North knows this well.
So this whole narrative of price deflation automatically making credit cheap is far fetched at best. To be honest: the whole story stinks.
To get to the point
Earlier in the article North comes up with the classic explanation for interest. Time. The creditor cannot use the cash while someone else borrows it.
Personally, I believe this is the basic reason why the bankers want to go back to Gold. Because if you have paper, it all sounds a little strange: the money is based on credit, created the moment the loan is put out. So there is no ‘time’ aspect. The money didn’t exist, before it was borrowed. It will cease to exist, when it is repaid.
But if you lend out Gold, you have a better story. More people will fall for it. And it is an argument to be reckoned with. It can be defeated, but not merely with economic arguments. That is, if Gold obtains a currency monopoly when we do away with the current ‘system’.
To be honest, considering the horrible implications of interest as discussed above and ignored by North, I think we should be far more diligent in our quest for interest free money. It is far too easy to say ‘people want something back for the time they don’t have their gold’.
The cost is just too high.
An interesting approach is Social Credit, which quite a few populists promote.Dick Eastman (above) is probably it’s most powerful advocate. It is debt free currency printed by the Government, and handed out the population to spend into circulation. It’s much better to have the people spend it than Government, like the Greenback. It’s their money to begin with, and they know better what they and the country need. Also, the Government has little incentive to inflate: it would gain nothing from it.
The main problem with Social Credit is that it does not allow interest free credit. It would still needs banks for that, including interest.
It is for this reason that Public Banking, introduced by Ellen Brown (above) is so important. It is much better than the Greenback, and probably about as good as Social Credit. By the way, Public Banking and the Greenback are two very different propositions. The way North equates them as one is sloppy at best, reeking of a lack of understanding at worst.
The two real problems with Public Banking are the ones the Austrians detest most: it’s basically a statist approach and it is far from certain that Government is the right place for money creation. However, Public Banking includes the option for individuals to open banks and use them for interest free credit. Privately owned banks with such a goal would face the problem of capitalization. This is a result of the necessity for reserves, even in a fractional reserve banking system.
And of course there is inflation: Public Banks would typically print more money than is necessary, thereby allowing price rises. The fact that the credit would presumably be used for infrastructural projects and the like is not a sufficient safeguard against this.
These are real problems, but considering the horrific costs of interest to the majority of the population, perhaps we should not be overestimating the problem of inflation. Or look for other ways in combating it. Educating the public for instance. Although that has shown to be a daunting task with most matters.
However, The Gold people have realized some time back, that a State sanctioned Gold Standard is probably no better than any other State sanctioned monopoly. It is, at any rate, not consistent with their anti statist approach to life and the economy. An approach I hold very dear as well, by the way.
Also, a currency monopoly, even if it is Gold, is not really consistent with a Free Market ideology.
So nowadays Austrian Economists argue for a free market for currencies, as do by the way, the interest free currency people. They assume Gold (or a bimetal standard) will prevail in such a market.
And this is the crux, making the debate about ‘time’ and it’s price, interest, superfluous. Here’s why.
What units will win in a free market for currencies?
What will happen if Ron Paul gets his way and legal tender laws are revoked?
Absolutely nothing.
People will continue to hoard Gold and pay with Federal Reserve Notes.
It’s called Gresham’s law.
Bad money drives out good money. Either the overvalued or depreciating units will circulate, while the better store of value will be hoarded. Gresham’s Law, although needing repair, will always prevail.
However, I don’t reject Paul’s proposals. It is right that legal tender laws, creating the currency monopoly, should be revoked.
Gold will be irrelevant in any mature currency market. It loses even against the federal reserve notes. As a means of exchange, that is. Clearly it is a much better store of value than the dollar.
That’s the problem with Gold. Everybody loves to have it, therefore they hate to pay with it. People will only pay with Gold if they don’t have anything else to pay with. Therefore Gold will lose as a means of exchange against almost any opposition. Even as lousy as the Federal Reserve crap.
But in a free currency market, we will see a third way, besides banking currencies and Gold: Interest free credit, provided by Mutual Credit Facilities.
From fractional reserve, to full reserve, to………no reserve ‘banking’. Although I suggest we do away with that word altogether. Banks stink, always have, since the days they still called themselves ‘Goldsmiths’.
All the units are created as credit, from day one. Zero capitalization is required. No deposits, no savers are required. It’s the way most barters operate. These barters are already quite successful (in terms of turnover and profitability). There are thousands of them worldwide.
But they are severely handicapped by the fact that none of them are convertible to other units. Most notably dollars or euros. Up to a few years ago, the technology was not available. It is now, but it is not well known. Yet. Bitcoin is showing the way, but very primitively. It is not created as credit, so there is no interest free credit. However, it does show how free market currencies can be made convertible to other units.
Soon, these currencies will be available. Some of them are being launched as we speak.
What will happen if, besides Gold and Federal Reserve Notes, Mutual Credit Facilities will be offering their units? Convertible to Dollar and also Gold?
They will destroy the dollar and every other ‘national’ currency.
Because nobody is going to a bank for a 5% per year mortgage, either in Gold or in paper, if you can borrow the money at 0% percent at your local regional interest free currency dealer.
But will businesses not demand Gold, you might wonder? Well, businesses who will only accept Gold will face a problem in the face of competitors accepting paper also, won’t they?
But the businesses will not want the money if they can’t save it, will they?
Corporations are not interested in the question what the money will be worth in a year. They want to know where they can spend it usefully tomorrow.
But they lose value, these units, you say?
So what? If I have some of them and I want to save them, I just go buy some Gold and bury it in the back yard.
That’s the difference between a store of value and a means of exchange.
So as long as the credit facility has sufficient takers for it’s units and/or as long as it is convertible to other currencies businesses will always accept them.
The main example is WIR, in Switzerland. These guys turn over 2 billion WIR (1 WIR = 1 CHF) per year. They have existed for 80 years. They have 1 billion outstanding credit. Eighty thousand small and midsized business accept the WIR and it is widely recognized as a major contributor to Switzerland’s diverse and prosperous economy. Many of these businesses say they would not have survived at least one of previous recessions. Because WIR is especially important during downturns.
It’s main limitation is that it is not convertible.
But even this is not the reason it has not destroyed the Swiss Franc. The story is, that the Big Banks have told WIR to stay put to avoid problems. The Banking Maffia is very powerful and that’s just one reason we need a free currency market.
WIR’s great strength is it’s superior management and it’s focus on the common good. Most barters are not quite as successful as they could be, because they are exploited by their owners for their own purposes.
In this day and age, however, when more and more people are waking up to the all importance of money, more players with the right focus will enter the market.
Concluding
No, Gary North did nothing to dispel the nonsense of interest.
So he was unable to discredit Public Banking and Social Credit.
But yes, we agree that a free market for currencies is the best way.
And again no, Gold will not prevail in such a market.
Gresham’s Law makes it useless as a means of exchange and interest free currencies are much cheaper.

Jim Willie: Paper and Physical Gold Price Divergence, COMEX On The March To Irrelevance

From MarketOracle, Dec 21, 2011

By: Jim_Willie_CB

Divergence between paper gold and physical gold price is happening, the process begun. Actual physical shortages have kept the price up. The naked shorting of futures has kept the paper price down. The fraud cases and lawsuits, with no hint of prosecution, provide the levered force to create much wider divergence, as traders and entire firms depart the tainted crime scene that is the COMEX. Trust has vanished along with private accounts. At the center of the backdrop for the divergence, apart from the criminal events, is the economic deterioration and asset market downdraft. It leads to margin calls, loan payment obligations, fading investor confidence, negative sentiment, and a desire to avoid loss. Hence the huge liquidity concerns, selling of good assets that command a strong price, and central bank encouragement of gold sales even with lease. These forces conspire to push down the gold futures price from the discovery process, called the paper gold price. These forces, although real, are exaggerated by the Syndicate to explain all. On the other side is the desperation among central bankers to cover debt securities up for sale or rollover funding. They resort to utter hyper inflation by monetizing the many types of government bonds. They are obligated to aid their banker cohorts, and thus purchase truckloads of badly impaired sovereign bonds and other collateralized bonds. Over time these sovereign bonds have proved toxic.

The compelling need to stimulate economies, to redeem toxic bonds, and to recapitalize and nationalize the big banks adds to the monetary inflation outcome. Therefore, two sides are in opposition in a battle to the death of one or the other. No middle ground can be achieved, not any longer. It is the quintessential battle between monetary hyper inflation and restoring bank system integrity to avert collapse. The insolvency has recently met illiquidity. The battle features strong forces on each side. The divergence between physical and paper gold price is widening.

The incurable speculator junkies committed to the addictive leveraged game rigged by the Forces of Evil seem stuck at the casino tables, where fingers are lost, finally entire hands and arms. If their practice was to purchase physical, they could benefit from the paper price swoon, and join the Forces of Good team, rather than fighting the evil side on their dominated turf. To be sure, many aware analysts in the news maintain a small gold position in COMEX that is rolled over constantly. Many have physical positions but keep with the paper trades as a hobby, better described as an addition to the juice. Leverage cuts both ways. Their continued activity has left them exposed to theft, while knowing the criminality was widespread within the arena. So many players and firms are departing the arena altogether like Ann Barnhardt of BCM Capital. The divergence between physical and paper gold price is widening.

The desperation of the bad team is growing. The gold cartel has benefited significantly from the fresh Libyan gold supply (144 metric tons) and Greek gold supply (111 metric tons), not to mention the ample Dollar Swap Facility. It is the bankers New Gold, as reported by intrepid Jeff Neilson. In a fresh sign of bankster desperation, the lease rates for gold have been pushed down to net negative levels. The fresh supply from the two broken nations has greatly aided the COMEX, providing new cannon fodder. Perhaps more wars to liberate the oppressed can be conjured up, to release more tyrant wealth. It is not a coincidence that negative gold lease rates came when Libyan gold was made available (heisted) and when Italian sovereign bonds went into critical DEFCON mode. The gold supply helped to aid the lack of bond demand. The gold lease story is analyzed more fully in the December Hat Trick Letter.

INELASTICITY BLEMISH

A preface is warranted. The paper Gold market is very different in its internal dynamics from the physical. The paper Gold market shows signs of inelasticity that borders on comical. Witness the low demand in 2001 and 2002 when Gold had a paper price tag at $300 or less per ounce. Witness nowadays the amplified selling when the paper price declines. The leverage from the corrupted paper mechanisms forces margin pressures and sales. The leveraged game goes opposite to the real world of price mechanisms. On the upside, global demand rises with a rising physical price, called the gold fever. The inelasticity on the supply side is prevalent in the paper market, while the inelasticity on the demand side is prevalent on the physical market. To confuse the mix, mining firms realize some inelasticity as price falls, they are stuck with a liquidity crunch on their forward sales ruin. A huge amount of money is required to cover their losses, urged on by Wall Street advisors. Their mining operations suffer from lack of funds, and projects are curtailed. The paradoxical differences in dynamics help to push the gap between the paper and physical Gold price. The incompatible forces work to rip apart the COMEX. The divergence between physical and paper gold price is widening.

ILLICIT USAGE OF CLIENT FUNDS AS COLLATERAL

The hypothecation battle will bring sufficient publicity to help the divergence along. As more assets are seen as committed, involved, and tainted in the process of grabbing, snatching, and securing collateral, even by illegal means, the physical assets will be removed from the system. Parties will remove accounts and metal from the COMEX in response from basic self-preservation. On the investment and speculation side, harm has been rendered to managed risk. The client funds have begun to flee. The protection and security of money in private accounts has been under siege in recent weeks since the MF Global crime scene was established and the yellow tape cordon has been put in place. Investors are pulling money out of hedge funds at a rapid rate. The COMEX will be increasingly isolated. Clients funds were redeemed to the tune of $9 billion in October, almost four times as much as they pulled in September, according to Barclay Hedge and TrimTabs Investment Research. Investors in October yanked more from hedge funds, setting a single month high over the last two years.

The redemptions are the largest for the hedge fund industry since July 2009, when $17.8 billion was returned. The Barclay Hedge office put lipstick on the corrupt pig by commenting on how investors have lost patience with lackluster investor returns. To be sure, the average hedge fund is down by about 4% this year. The global hedge fund industry size has been reduced to $1.66 trillion, still sizeable. It is always interesting, if not amusing, to read the spin from the isolated corners. Hedge funds are seeing capital depart for the simple reason of moving away from crime centers. In the process the COMEX is being isolated. With increased isolation comes the easily recognized fraud. Look for some major stories soon about the raids to the GLD and SLV inventories by their custodians engaged in naked shorting. The Exchange Traded Fund fraud story is analyzed more fully in the December Hat Trick Letter. The divergence between physical and paper gold price is widening.

DYNAMICS OF PAPER VERSUS PHYSICAL BASIS

Grand divergence dynamics are becoming clear. Ann Barnhardt explained in detail how the COMEX will go away. It will not default, but rather fall into irrelevance. He laid it out in credible detailed form with numerous factors coming to play. The COMEX might still suffer the shame and spotlight of criminal prosecution. It will more certainly suffer from being ignored and shunned. The physical basis market will not respond to the declines in the paper futures market. The current dominant market will go away due to lost integrity and eroded trust. The consequences and implications of the recent major scandal and coverup are enormous, staggering, and sweeping. The changes from the MF Global failure and theft of private segregated accounts will come in time, perhaps accelerated by another similar event to slam the message home. The Syndicate has turned desperate, resorting to theft in the open daylight, which has resulted in direct consequences. Hundreds of COMEX clients waited in line for delivery of gold, and had their wallets stolen by JPMorgan. Their Gold & Silver set for delivery found its way into JPMorgan accounts at the COMEX. The details of the missing silver then reappearing silver is discussed in the December Hat Trick Letter. The slow mentally overlook this fact. The alert who point to fraud consider it a smoking gun. On its face, evidence mounts that JPMorgan simply converted 614k ounces of MF Global client silver into JPM licensed vaults. Big hats off to the Silver Doctors for excellent financial fraud forensic analysis. Do not expect prosecution over the crime, for MF Global, for JPMorgan, or for the accomplices in London, not even Jon Corzine. The Fascist Business Model in the Untied States does not permit prosecution. The bigger the crime, the more likely the perpetrator is in control of the government high offices, the financial ministry, the printing press, or the regulators.

Ann Barnhardt explained how the COMEX will fade away into oblivion. Its final chapter will be marred by a grand price divergence, where the futures market price declines from shunned avoidance, while the cash physical market price holds steady then rises. Many including the Jackass had thought that a slew of delivery demands would force a drain in their gold & silver inventory, eventually leading to a slew of lawsuits, together to shut them down as a corrupt enterprise arena. The MF Global theft reveals the alternative route that seems more clear. The gold cartel led by JPMorgan and secretly by the USFed will not go quietly. They have resorted to theft of private accounts on the open stage. The money is not missing. That is the lie. It is held in JPMorgan accounts in London, where fraud laws are more relaxed. We have seen this Madoff movie before, but it will be shown on the silver screen again. The divergence between physical and paper gold price is widening.

The backlash has begun and will gain strength. Barnhardt offered many cogent arguments with detail on how the COMEX will be ignored from distrust and suspicion of further thefts, as clients remove funds and close accounts. Here are her main points. They apply to Gold & Silver. She has the Barnhardt weblog:  http://barnhardt.biz/

• Arbitrage is set to kick in. Players will buy at the cheaper corrupt paper market in COMEX and sell in the higher honest physical market, wherever brokers can match to make deals. (It is the same phenomenon that ripped the Euro sovereign bond market apart, as the German Govt Bond yields remained much lower than the Spanish and Greek.) They will take advantage of a strong basis, buy at the discount offered by COMEX, and sell into the cash spot physical market.
• A linchpin holds the market together. Keeping the futures markets tied to the underlying cash physical market is the fact that the futures contracts permit taking delivery. That delivery mechanism just broke as linchpin in full view. The futures market has lost viability and trustworthiness because of the MFG collapse and theft.
• The entire delivery mechanism has been corrupted and undermined. Taking delivery has meant a holding of physical metal bars is stored in a certified vault with your name attached. No longer are such holdings considered safe. Thefts occurred, and lawsuits have occurred to decided upon ownership of bars in dispute.
• The de-coupling process comes when arbitrageurs finally lose all confidence in market interaction dynamics, as the cash market will lose connection on price from the futures market. Players will not be willing to take the risk of having their money, positions, and physical metals stolen or confiscated.
• As players flee the futures market, the paper futures prices will decline. The cash physical market will hold steady. The divergence will come and be noticed, then be widely publicized. The players will realize that the physical market is the only remaining game to be played with honest rules in effect. The cash dealers will ignore the futures prices, no longer a valid price discovery, seeing that market demand for their physical inventory is robust, and maintain their prices steady. Later, they will even raise the physical prices. Then later still, the parabolic spike comes for physical Gold & Silver.

THE GREAT SHUN BY MINERS

Asset management funds are appealing to mining firms for direct metal supply. They are bypassing the COMEX in a new trend. It is a natural development, as miners seek a fair price and the funds seek a reliable supply. The COMEX is cut out of the process. The Sprott Funds have revealed how they sourced their precious metal from mining firms last year. The official exchanges are being cut off, a form of isolation as a result. The divergence between physical and paper gold price is widening.

See the Ashanti story as typical. The COMEX is seeing reduced supply lines, reduced operations, more criminal implications, horrible publicity, and fewer clients. Criminal fraud does that, as lawsuits will follow like cold rain. The trend shapes up well for higher gold & silver prices. Mark Cutifani is CEO of AngloGold Ashanti, a $16 billion mining firm. He said, "Major [asset management fund] buyers are finding it is hard to get physical gold. People are coming directly to us [for large gold purchases,] people who want tonnes of physical gold, people with serious financial muscle, because they are finding it is very difficult to secure the volume of gold they want. That is something we have noticed over the last 18 months, and it has been increasing in the last six months. People are finding its hard to get physical gold." The clear message is that the COMEX has no spare available metal at all.Cutifani has good insights into the commodities and precious metals markets, and describes a fascination new trend regarding the global picture. He pointed out that major gold buyers are emerging from the Middle East and Asia. See the Bull Market Thinking article (CLICK HERE).

NEW MARKETS FLOWERING

New gold centers are forming, where the safety is most assured. Hong kong and Dubai have emerged as reliable honest brokers, and will continue to provide valid safe haven. Switzerland, London, and other locations are fading fast. They are the corrupt centers where fascism has become prevalent, laced through the financial system.Takahiro Morita, the Japan director of the World Gold Council, reported that Japan's gold exports in the 10 months ended October totaled 95.6 metric tonnes, their highest level since 2008, when it registered at 95.5 metric tonnes. People who bought gold and jewelry in the 1980 and 1990 decades are selling back what they purchased, according to precious metals traders. Japan has turned into a big exporter. Contrast to the official side. Central bank purchases have risen by 114% over the previous quarter. Purchases by central banks could hit 450 metric tonnes this year, concludes the investment research at the council. The volume represents the highest level of central bank buying since at least 1970, perhaps the greatest in recent history. A veteran gold trader with actual experience in these locations pitched in to explain. He said, "These are not sales in Japan. They are exports, an important distinction. Many investors are busily relocating their precious metal bullion to Hong Kong and Dubai UAE. Look for Dubai to be the HK of the Middle East. The Chinese have made that decision, and it is being implemented with lightning speed." Most of the relocation from Japan shows up as exports, which require payments.

October imports into China from Hong Kong rose 50% over September, and up 40-fold from last year. The more attractive fair price paid in Shanghai reached $50 above the corrupt controlled London price. The arbitrage has been very active. Chinese gold imports from Hong Kong hit a record. The Financial Times reported Chinese gold imports from Hong Kong hit a record high in October and astoundingly, they accounted for more than one quarter of the entire global demand. Data showed that China imported 85.7 tonnes of gold from Hong Kong in October, up 50% from the previous month and up more than 40 times from October of last year. It marks the fourth consecutive month that China's gold flows from Hong Kong have hit new highs. The article noted that the price arbitrage between London and Shanghai was favorable for Chinese imports during late September and early October, giving astute clever traders an edge. Gold on the Shanghai Exchange traded up to $50 per ounce above the main global market based in London, a record price difference.Purchases from China have fallen since October, as the recent strength in the USDollar has made gold more expensive. Also, considerable new strain has been felt inside China in recent weeks. Conclude that price arbitrage has begun to show itself across international boundaries. The divergence between physical and paper gold price is widening.

ONE GOLD EVENT, THE BIG SQUEEZE

No gold chart will be shown in this article, out of disrespect deserved for the COMEX criminal activity. A story was recounted in recent days from my best source of solid reliable gold information. The aware gold community has overlooked a phenomenon that might be more profound in action here and now. A major squeeze is on that capitalizes on the artificially low COMEX price and the higher honest physical price. The Barnhardt effect can be seen, or at least recounted. A gold trader informed that some multi-$billion purchase Gold orders have been in the process of filling at or near the $1600 price per ounce. The price must remain near $1600 to complete the orders and permit them to clear. Call it Agent2000 who seeks the massive amount of Gold, one of the Good Guyz. The name fits since their goal is to force the Gold price back over $2000/oz after the sale transaction clears. Since so large, the orders take time to fill completely. The low-ball buy orders have been filling for over two weeks. At the same time, the Agent2000 buyer has enlisted the aid of numerous assistants to push down the paper Gold price by putting extreme pressure on some bad players, some nasty types from the usual list of suspects in the Western banking sector. These bankers are being squeezed out of their gold, as they contend with deep insolvency, reserves requirements, falling sovereign bond values, depositors exiting, and more. They are players in what has been widely called the Gold Cartel. The Jackass term has been applied in a wider sense, as they have been part of the Syndicate that reaches into the Wall Street banks, the defense contractors, news media, and big pharma.

The other side of Agent2000 is where additional intrigue lies. He (they) have buyers lined up on the physical side some deals ready to close at $1900 per ounce. Later the price will push over the $2000 mark. The buyers are ready. One must infer that the buyers have a great deal of money ready to devote to the battle. Maybe some is piled up to escape the clutches of the cartel, removed from the system. Maybe some is piled up at a major new slush fund to do battle with the cartel at their own game. Maybe some is piled up and kept out of sight from greedy hands in government officials, like off-shore in the Caribbean or sequestered in the Persian Gulf. This story might be perplexing to many in the gold community since the Good Guyz are pushing down the Gold price in order to facilitate a gigantic order that will work toward crushing the cartel by draining their gold. Their gold cannot be drained without the completion of a great many orders. It is only natural to attempt to achieve the lowest possible price. If the gold cartel insists on pushing the price down, then they open the door for major volume sales at the artificially low and very much bargain price. It is happening, but the gold community does not enjoy the symptoms of the process.

So a huge huge huge buyer of gold is busy, and a multi-$billion order is working through. The buyer demands a $1600 price, while on the other side of the table Agent2000 has a sale lined up for the same metal at a $1900 price on physical. The trade will take gold bullion from the Bad Boyz hands and put it into the Good Guyz hands. In the process, the COMEX supply lines will be drained more. This is consistent with mining firms removing supply lines to the COMEX. The Agent2000 buyer is pushing price down, squeezing some evil parties hard, crushing testicalia along the way. He (they) describe to the distressed seller at $1600 that pressures will continue until the deal is closed. The seller is in tremendous pain with open distress showing. So many assume the Bad Powerz are pushing down the Gold price. Not so!! This event and transaction displays how some pain comes in many isolated cases of Good Guyz pushing the Gold price down to empty the Bad Powerz vaults. My source would not reveal the identity of Agent2000 or the location of the squeeze. It seemed like London. The money is not exclusively coming from China. Word has it that Russia is also applying the pressure, with some Chinese teamwork. The Competing Currency War has a new major flank. The divergence between physical and paper gold price is widening.

THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

by Jim Willie CB 
Editor of the “HAT TRICK LETTER” 
Home: Golden Jackass website 
Subscribe: Hat Trick Letter
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How Germany Builds Twice as Many Cars as the U.S. While Paying Its Workers Twice as Much

In 2010, Germany produced more than 5.5 million automobiles; the U.S
produced 2.7 million. At the same time, the average auto worker in
Germany made $67.14 per hour in salary in benefits; the average one in
the U.S. made $33.77 per hour. Yet Germany’s big three car
companies—BMW, Daimler (Mercedes-Benz), and Volkswagen—are very
profitable.

How can that be? The question is explored in a new article from
Remapping Debate, a public policy e-journal. Its author, Kevin C.
Brown, writes that “the salient difference is that, in Germany, the
automakers operate within an environment that precludes a race to the
bottom; in the U.S., they operate within an environment that
encourages such a race.”


http://www.forbes.com/sites/frederickallen/2011/12/21/germany-builds-twice-as-many-cars-as-the-u-s-while-paying-its-auto-workers-twice-as-much/