News of the Weird: June 10, 2009 - Eric Janszen

[c1ue]

Re: News of the Weird: June 10, 2009 - Eric Janszen

Another angle on the 'wierd' news:

1) As recently as 10 years ago, the $134.5B would be one or more entire year's worth of Treasury auctions.

2) Even last year with its then record deficits, $134.5B would have represented at least a couple of month's worth of auctions. Now it is a not atypical week's worth.

So maybe the two Japanese in question were just time travellers - the bonds in question being enough for a couple of sandwiches in 2015 :eek:

[vinoveri]

Re: News of the Weird: June 10, 2009 - Eric Janszen

I'll say it again.
We all trust that the Fed and Treasury's accounting is accurate and honest. Why?
Printing treasuries in denominations of $millions and $billions is a lot easier to get under the radar then printing millions of $100 fed reserve notes.

In light of what has and is continuing to transpire, I've lost any semblemence of trust or faith in the opaque system we call gov particulalry with regards to monetary policy.

[vinoveri]

Re: News of the Weird: June 10, 2009 - Eric Janszen

It pales by comparison to the intrusions into business by the current administration.

do you regret voting for Obama (and the advocacy for him you made last Oct)?

your analyses , forecasts, and presentation of global macro-economics is second to none IMO.

[FRED]

Re: News of the Weird: June 10, 2009 - Eric Janszen

FAKE!

Fraudulent T-Bills / Bonds / CD & GIC Investments

Cons know that certain people will only invest in secure "non-stock" or they tailor their scam to mimic government-backed conservative securities.

"Limited Edition" Treasury Securities

Certain foreign individuals and groups are attempting to sell fictitious securities referred to as "Limited Edition" Treasury securities. As part of this scheme broker-dealers and banks are being approached to act as middlemen.

The sales pitch misrepresents the way legitimate U.S. Treasuries may be issued, bought or sold and describes the offering as:

	having a term of 10 years,
	yielding an annual of 6%,
	requiring a minimum purchase amount of $100 million,
	having an initial price of 57% of face value,
	having an unspecified offering amount (available for sale until "exhausted"), and
	being issued in physical (paper) form.

There is, however, no such security as a "Limited Edition" Treasury security. They are often simply window-dressing for a prime bank or ponzi scam.

The Forms in which Marketable Treasury Securities Exist

Marketable U.S. Treasury securities only exist in three forms: (1) book-entry, (2) bearer, and (3) registered. An overwhelming amount (99.84% of outstanding marketable securities) are in book-entry form which exist not as printed certificates but rather as computer records.

Only .14% exist in bearer form of printed certificate with interest coupons attached but no name on it. Finally, an even smaller percentage (.02% of outstanding marketable securities) exist in registered form with the name of the owner on it. They discontinued the issuance of printed registered securities in 1986.

Scams Involving the Renting or Leasing of Treasury Securities

Cons pretend to "rent" or "lease" Treasury securities which either don't exist or are not even owned by the party making the offer.

If you ask a leasing scam artist to produce the securities or prove ownership, they may be unable to do so and will offer excuses such as "they are frozen at my bank;" "a wealthy philanthropist has assigned them to us to assign to others for infrastructure or humanitarian purposes in third world countries and wishes to remain anonymous;" or "bank secrecy laws of this country prevent such a verification."

Misuse of Public Debt Forms as Evidence of Ownership

Scam artists often misuse documents or forms as "evidence" that they hold the securities and claim that the forms can convey official ownership or title to the securities listed on them.

They will also use a valid CUSIP number of a Treasury security that trades regularly in the market so you can get pricing information and confirm issue of the security. The trouble is that it identifies an entire issue not a particular individual certificate security, nor does it indicate ownership.

They may claim that their fraudulent offering has been certified by an official body such as the International Chamber of Commerce. They may also claim that it is a special issue to the United Nations to pass on to other companies that are willing to do humanitarian and infrastructure projects in developing countries.

U.S. Treasury Bills - One Year "Fresh Cut"

One person who represented himself to be a consultant to lesser-developed or Third World countries offered $500 billion worth of One Year "Fresh Cut" Treasury Bills which did not exist.

"U.S. Dollar Bonds"

Fake bonds, said to have been issued in the 1930's by the CIA to help Chiang Kai-shek fight the communists, and buried in caves by his generals and their heirs for years, have recently been "unearthed".

They are now being fraudulently offered to people at a fraction of their face value.Many inquiries come from West Coast law firms that are checking on the validity of these bonds for clients that reside in China, Singapore and Taiwan.

Most of these fictitious obligations refer to the Ministry of Finance of the United States and the of America neither of which has ever existed.

"Only .14% [of US Treasury securities] exist in bearer form of printed certificate..."

If this report is accurate, and it appears to be, then $143.5 billion in physical US Treasury bearer bonds cannot exist:

0.14% x $3.3 trillion total foreign holdings = $4.6 billion.

Not even close.

[Slimprofits]

Re: News of the Weird: June 10, 2009 - Eric Janszen

Press release from the Guardia Italiana di Finanza (Italian Financial Police):

http://www.gdf.it/GdF__Informa/Notiz...518911049.html

[big67]

Re: News of the Weird: June 10, 2009 - Eric Janszen

miliardi = billion
milioni = million

Correct. I got too confused the first times I was reading data from USA, but here it is:

In Italy (and more in general in European scientific community):
1.000.000 = Milione = 1 US million
1.000.000.000 = Miliardo = 1 US billion
1.000.000.000.000 = Biliardo = 1 US trillion
1.000.000.000.000.000 = Triliardo = 1 ????

So we are "inflation ready"...

[big67]

Re: News of the Weird: June 10, 2009 - Eric Janszen

Too bad Silvio... no money for that bridge to Sicily...

[metalman]

Re: News of the Weird: June 10, 2009 - Eric Janszen

"Only .14% [of US Treasury securities] exist in bearer form of printed certificate..."

If this report is accurate, and it appears to be, then $143.5 billion in physical US Treasury bearer bonds cannot exist:

0.14% x $3.3 trillion total foreign holdings = $4.6 billion.

Not even close.

and yet... Guardia di Finanza press release today jun 11...

Duecentoquarantanove bond della Federal Reserve statunitense, del valore nominale di 500 mln di dollari ciascuno, piu' 10 bond Kennedy da 1 mld di dollari ciascuno, occultati nel doppio fondo di una valigia, per un totale di ben 134 mld di dollari, pari a oltre 96 mld di euro.
E' quanto hanno sequestrato alla stazione ferroviaria internazionale di Chiasso, al confine tra Svizzera e Italia, funzionari della Sezione Operativa Territoriale di Chiasso, in collaborazione con i militari della Guardia di Finanza del Gruppo di Ponte Chiasso, nel corso dei controlli volti al contrasto del traffico illecito di capitali.
I valori erano posseduti da due cinquantenni giapponesi scesi alla stazione ferroviaria di Chiasso da un treno proveniente dall'Italia che, al momento del controllo doganale, hanno sostenuto di non avere nulla da dichiarare.
Un'accurata verifica dei bagagli ha consentito invece di trovare i titoli Usa, occultati sul fondo di una valigia, in uno scomparto chiuso e separato da quello contenente gli indumenti personali.
Oltre ai titoli, i due giapponesi trasportavano una cospicua documentazione bancaria in originale.
Per i bond e la documentazione che li accompagnava, anch'essa sottoposta a sequestro, sono in corso indagini volte a stabilirne autenticita' e provenienza. Qualora i titoli risultassero autentici, in base alla vigente normativa, la sanzione amministrativa applicabile ai possessori potrebbe raggiungere i 38 miliardi di euro, pari al 40% della somma eccedente la franchigia ammessa di 10mila euro.

google translate says...

Duecentoquarantanove bond of the Federal Reserve, the nominal value of 500 mln dollars each, plus' 10 bond Kennedy 1 billion dollars each, hidden in the double bottom of a suitcase, for a total of 134 billion dollars, equivalent to over 96 billion euros.

And 'what they have seized the international railway station of Chiasso, the border between Switzerland and Italy, officials of the Chamber of Chiasso Operativa Territoriale, in collaboration with the soldiers of the Guardia di Finanza Group Ponte Chiasso, at the controls to counter illicit trade in capital.

The values were owned by two Japanese fifties fell to Chiasso train station by a train coming from that at the time of customs control, have claimed they have nothing to declare.

Thorough checking of hand baggage is allowed to strike the U.S. securities, hidden at the bottom of a suitcase, in a closed compartment and separate from that of the personal clothing.

Besides the titles, both carrying a large Japanese bank documents in original.

For the bond and the accompanying documents, which is also subject to seizure, investigations are underway to establish authenticity 'and he comes. If the titles were genuine, according to current regulations, the administrative penalty applicable to holders could reach 38 billion euros, or 40% of the amount exceeding the exemption allowed for 10 thousand euro.

most curious... the japanese bank docs may be fakes, too, to make the bonds look more real.

[big67]

Re: News of the Weird: June 10, 2009 - Eric Janszen

most curious... the japanese bank docs may be fakes, too, to make the bonds look more real.

Fake indeed, curious about what is a "Kennedy bond"...
Do they refer to David Kennedy, Treasury Chief under Nixon? :confused:


the translation is not accurate: it is really not referring to a japanese bank.

It says: "the two japanese men carryed a large bank document in original" meaning that the document appear at first sight to be originals, not copies.

[labasta]

Re: News of the Weird: June 10, 2009 - Eric Janszen

Wasn't Don Johnson caught with $8 billion of the same (or similiar) crossing the Swiss border a few years ago?

Very quick "googled" link to said news item


Sounds like fraud racketeering (money laundering) to me.

[EJ]

Re: News of the Weird: June 10, 2009 - Eric Janszen

do you regret voting for Obama (and the advocacy for him you made last Oct)?

your analyses , forecasts, and presentation of global macro-economics is second to none IMO.

I was not so much advocating for Obama as afraid, based on information I had at the time, that McCain might pull a Nixon, that is, fail in the pre-election polls but win the election. At least with Obama there existed a potential to avoid disaster versus certain disaster with McCain. Most felt that a McCain win was impossible, but history is full of instances when voters in the privacy of the voting booth did the opposite of what they told pollsters they'd do.

I'll stand by my assertion that electing a black president was an important step for the nation. I will also say that I believe that Obama is essentially honest, but in way over his head. I don't see dishonesty, I see naivety, although tainted with a desire for power. When he appeared honestly surprised by the severity of the economic collapse, that told me he wanted the job too much, always a worrisome character trait in any leader. Others saw this quality before I did.

I expected a man who ran such a tight campaign to run a tight administration, but it's over-stretched and floundering, already taking on Jimmy Carter administration qualities. Partly that is due to his underestimation of the economic trap he let himself be pulled into. Still, I'm certain McCain would be handing it immeasurably worse.

Long before his first 100 days were up, Obama's choices of Geithner and Summers, and the pushing aside of Paul Volcker, were a dead giveaway that we were in trouble. These decisions reflected poorly on his judgment.

I admit, however, that I did fall for some of the rhetoric. Hudson and others here who were more critical were right and I was wrong on that score.

The U.S. is in dire need of a viable 3rd party.

[thedanimal]

Re: News of the Weird: June 10, 2009 - Eric Janszen

Well said EJ, I agree 100%.

[metalman]

Re: News of the Weird: June 10, 2009 - Eric Janszen

the document appear at first sight to be originals, not copies.

original fakes, that is.

thanks, big. human translation always beats machines. that settles it for me.

[WDCRob]

Re: News of the Weird: June 10, 2009 - Eric Janszen

As an Obama voter, I also agree.

I remember reading David Gergen's book on the presidents he'd served and thinking that you could see the seeds of each man's problems in the Oval Office in their known character flaws at the time they were elected - that the White House basically magnified and highlighted a President's pre-existing human shortcomings.

I said at the time (2002) that my worry with Bush was that he was stubborn and not very curious and that would be unlikely to change course if he were wrong about something - he'd just plow ahead.

Obama's problem (IMHO) is that he believes he can always find a multi-party solution to any problem - that there's nothing that can't be solved by negotiating. I also find him too confident that he can solve any problem. In short, as EJ observes, that he's naive. I think he could stand to fail at something big.

It will be interesting to see how he switches gears over the next 18 months or so. He's at least smart enough and flexible enough to realize he's made a mistake.

Despite my disappointment with him on his handling of the economic collapse and, especially, his unwillingness to part with Bush era policies on detainees and state secrets, I still believe he'll fare much better than McCain would have done.

[TheServant]

Re: News of the Weird: June 10, 2009 - Eric Janszen

I contemplated much of the same thoughts before the election. I am best described as a moderate Republican, if you can quantify something like that, but I never even considered McCain. Perhaps it was his connection to Phil Gramm, or more likely, his obvious oblivion to the economic meltdown.

I thought Obama would at least try to hold to his platform of the "President for the People", so I considered him a viable alternative for a while. After that bit of "grandstanding" by both of them during the voting for the bank bailout, I decided against both, and eventually entered a protest vote for Bob Barr. While not all that cathartic, I am glad at this point that I did not vote for Obama.

I am not sure which is more dangerous at this point, that so many people think he is smarter than he really is, or that he thinks he is smarter than he really is. I read a opinion somewhere that he is the first truly "made for TV" president. That really rings true with my impression of him. That scares me given the challenges we face.