Saturday, February 20, 2010

Project Hammer

The Bush Family's Project Hammer
Part 1 of 2
Deanna Spingola
February 20, 2010
Hammering the USSR’s Economy
In 1989 President George H. W. Bush began the multi-billion dollar Project Hammer program using an investment strategy to bring about the economic destruction of the Soviet Union including the theft of the Soviet treasury, the destabilization of the ruble, funding a KGB coup against Gorbachev in August 1991 and the seizure of major energy and munitions industries in the Soviet Union. Those resources would subsequently be turned over to international bankers and corporations. On November 1, 2001, the second operative in the Bush regime, President George W. Bush, issued Executive Order 13233 on the basis of “national security” and concealed the records of past presidents, especially his father’s spurious activities during 1990 and 1991. Consequently, those records are no longer accessible to the public. The Russian coup plot was discussed in June 1991 when Yeltsin visited with Bush in conjunction with his visit to the United States. On that same visit, Yeltsin met discreetly with Gerald Corrigan, the chairman of the New York Federal Reserve.
Because of numerous Presidential Executive Orders, the ethically questionable Project Hammer was deemed legal. Of course, even Hitler’s acts were “lawful,” as he had manipulated the laws to accommodate his actions. Many of Reagan’s executive orders were actually authored by Vice President Bush or his legal associates, and it is possible that Project Hammer was created by Reagan’s CIA Director, William Casey, who had directed OSS operations through Alan Dulles in Europe during World War II. Prior to his OSS affiliation, Casey worked for the Board of Economic Warfare which allegedly targeted “Hitler’s economic jugular.” Allen Dulles, brother of John Foster Dulles, was the Director of the CIA from 1953 to 1961. He was a senior partner at the Wall Street firm of Sullivan and Cromwell, which represented the Rockefeller Empire and other mammoth trusts, corporations and cartels.
Project Hammer was staffed with CIA operatives and others associated with the National Security apparatus. Covert channels were already in place as a result of other illegal Bush activities. Thus, it was a given (1) that the project would use secret, illegal funds for unapproved covert operations, and (2) that the American public and Congress would not be informed about the illegal actions perpetrated in foreign countries. The first objective was allegedly to crush Communism, a growing political philosophy and social movement that was initially funded by the usual group of international bankers who now supported their demise. To this end, the “Vulcans,” under George H. W. Bush, waged war against the Soviet Union.
The Return of the Vulcans
In their reincarnation in the administration of George W. Bush, the Vulcans functioned as a supposedly benign group, led by Council of Foreign Relations (CFR) member Condoleezza Rice, who attempted to augment and compensate for the Bush's lack of experience and education concerning foreign policy during his presidential campaign. Rice had been President George H. W. Bush’s Soviet and East European Affairs Advisor in the National Security Council during the Soviet Union’s dissolution and during the German reunification (July 1, 1990). The resurrected Vulcan group included Richard Armitage, Robert Blackwill, Stephen Hadley, Richard Perle, Rabbi Dov S. Zakheim, Robert Zoellick and Paul Wolfowitz. Other key campaign figures included Dick Cheney, George P. Shultz and Colin Powell, all influential but not actually a part of the Vulcan Group. All of these people, associated with the George H. W. Bush administration, returned to powerful, strategic positions in George W. Bush’s administration.
Richard Perle and Paul Wolfowitz have been accused of being agents for the Israeli government. Investigations by Congress and the FBI have substantiated those allegations. Zakheim and his family were heavily involved in Yeshivat Sha’alvim, an educational organization in which students are taught to render absolute commitment to the State of Israel.
Many of these individuals were also members of the Project for a New American Century (PNAC) which was established in the spring of 1997 with the intention of promoting American Global leadership at any cost. The chairman and co-founder was William Kristol, son of Irving Kristol (CFR), considered the godfather of neo-conservatism which promotes the ideas of Max Shachtman and Leo Strauss, a noted Zionist and professor of political science at the University of Chicago. Kristol’s co-founder was Robert W. Kagan (CFR). Kristol is also the editor and co-founder, along with John Podhoretz, of the Weekly Standard Magazine, established September 17, 1995 and owned by Rupert Murdoch until August 2009. This “conservative” magazine is edited by William Kristol and Fred Barnes and promotes Middle East warfare and a huge military budget, a mentality that infects the most popular “conservative” talk show radio hosts. Kristol is a trustee for the Manhattan Institute which was founded by CIA Director William Casey and was staffed with former CIA officers.
The Vulcans had almost limitless financing from a cache known by several names – the Black Eagle Trust, the Marcos gold, Yamashita’s Gold, the Golden Lily Treasure, or the Durham Trust. Japan, under Emperor Hirohito, appointed a brother, Prince Chichibu, to head Golden Lily, established in November 1937 before Japan’s infamous Rape of Nanking, to accompany and follow the military. The Golden Lily operation carried out massive plunder throughout Asia and included an army of jewelers, financial experts and smelters. While the Nazis also engaged in plundering the countries they invaded, they were not as organized and methodical as the Japanese. After the Allied blockade, Golden Lily headquarters were moved from Singapore to Manila where 175 storage sites were built by slave laborers and POWs. Billions of dollars worth of gold and other plundered treasures were stockpiled in these underground caverns, some of which were discovered by the notorious Cold Warrior, Edward G. Lansdale who directed the recovery of some of the vaults. Truman and subsequent presidents, without congressional knowledge, have used those resources to finance the CIA’s chaotic clandestine activities throughout the world. Much of the Middle East chaos is financed by those pillaged funds. A tiny portion of that treasure was the source of Ferdinand Marcos’ vast wealth. Marcos worked with the CIA for decades using Golden Lily funds to bribe nations to support the Vietnam War. In return, Marcos was allowed to sell over $1 trillion in gold through Australian brokers.
In July 1944, the leaders of forty-four nations met at Bretton Woods, New Hampshire to plan the post-war economy and to discuss organizing a global political action fund which would use the Black Eagle Trust ostensibly to fight communism, bribe political leaders, enhance the treasuries of U.S. allies, and manipulate elections in foreign countries and other unconstitutional covert operations. Certainly, those politicos who managed the funds also received financial benefits. This trust was headed by Secretary of War Henry Stimson, assisted by John J. McCloy (later head of the World Bank) and Robert Lovett (later Secretary of Defense) and consultant Robert B. Anderson (later Secretary of the Treasury). Anderson later operated the Commercial Exchange Bank of Anguilla in the British West Indies and was convicted of running illegal offshore banking operations and tax evasion. Investors lost about $4.4 million. Consequently, he was sent to prison for a token amount of time, one month. He was also under house arrest for five years. He could have received a ten-year sentence but Judge Palmieri considered Anderson’s “distinguished service” to the country in the “top levels of Government.”
Between 1945 and 1947 huge quantities of gold and platinum were deposited in prominent banks throughout the world. These deposits came to be known as the Black Eagle Trust. Swiss banks, because of their neutrality, were pivotal in maintaining these funds. These funds were allocated to fighting communism and paying bribes and fixing elections in places like Italy, Greece, and Japan. Stimson and McCloy, both retired from government service, continued their involvement in the management of the Black Eagle Trust. Robert B. Anderson, who toured the treasure sites with Douglas MacArthur, set up the Black Eagle Trust and later became a member of Eisenhower’s cabinet. In order to maintain secrecy about the Trust, Washington officials insisted that the Japanese did not plunder the countries they invaded. Japanese officials who wanted to divulge the facts were imprisoned or murdered in a way that made it look like suicide, a common CIA tactic. The Germans paid reparations to thousands of victims while the Japanese paid next to nothing. Military leaders who opposed foreign policies that embraced exploitation of third world countries were suicided or died from mysterious causes, which includes individuals such as George S. Patton, Smedley D. Butler and James V. Forrestal.
The Vulcan’s effort to crush Communism and end the Cold War was largely funded by that Japanese plunder. The Vulcans were resurrected when George W. Bush was installed as president in 2000, facilitated by election maneuvers, probably lots of payoffs, and Jeb Bush’s purge of Florida voters. They conducted other illegal operations, like securities fraud and money laundering. This entailed murder and false imprisonment to prevent penitent participants from divulging the activities of the group. During the process of accomplishing the main objective of destroying the Soviet Union, the operatives made massive profits. In September 1991, George H. W. Bush and Alan Greenspan, both Pilgrims Society members, financed $240 billion in illegal bonds to economically decimate the Soviet Union and bring Soviet oil and gas resources under the control of Western investors, backed by the Black Eagle Trust and supported later by Putin who for the right price purged certain oligarchs. The $240 billion in illegal bonds were apparently replaced with Treasury notes backed by U.S. taxpayers. To conceal the clearance of $240 billion in securities, the Federal Reserve, within two months, increased the money supply to pre-9/11 numbers which resulted in the American taxpayer refinancing the $240 billion.[14]
The Takeover of Russia’s Oil Industry
BP Amoco became the largest foreign direct investor in Russia in 1997 when it paid a half-billion dollars to buy a 10 percent stake in the Russian oil conglomerate Sidanko. Then in 1999, Tyumen Oil bought Sidanko’s prize unit, Chernogorneft which allegedly made BP Amoco’s investment worthless. Tyumen offered to cooperate with BP Amoco on the development of Chernogorneft but BP Amoco was not interested. In October 1998, Halliburton Energy Services had entered into an agreement with Moscow-based Tyumen Oil Company (TNK). Their efforts were focused on the four western Siberia fields, the first one being the Samotlorskoye field. TNK has proven oil reserves of 4.3 billion barrels and possibly as many as 6.1 billion barrels, with crude oil production and refining capabilities of 420,000 barrels/day and 230,000 barrels/day, respectively. TNK markets gasoline through 400 retail outlets. In 2002 Halliburton and Sibneft, Russia’s fifth largest crude oil producer, signed an agreement. Sibneft will use Halliburton’s new technologies to improve well construction and processing while Halliburton directs all project management.
Tyumenskaya Neftyanaya Kompaniya (Tyumen Oil Company) was established in 1995 by government decree. It is now TNK-BP, the leading Russian oil company and ranks among the top ten privately owned oil companies worldwide in terms of crude oil production. The company, formed in 2003, resulted from the merger of BP’s Russian oil and gas assets and the oil and gas assets of Alfa, Access/Renova group (AAR). BP and AAR each own fifty percent of TNK-BP. The shareholders of TNK-BP own almost fifty percent of Slavneft, a vertically integrated Russian oil company. This transaction was the biggest in Russian corporate history and was managed by Vladimir Lechtman, the Moscow partner for Jones Day, a global law firm with thirty offices and 2,200 lawyers worldwide. TNK-BP, Russia’s second-largest oil company employs almost 100,000 people and operates in Samotlor.
Putin was financially rewarded by the collaborators and was happy to purge some annoying industrialists who stood in the way. Mikhail Khodorkovsky was the manager of Yukos, the company that he built into Russia’s second-largest oil company after acquiring it for $168 million when his Bank MENATEP, the first privately owned but notoriously corrupt bank since 1917 and wiped out in August 1998, purchased it through a controversial government privatization auction in 1995. MENATEP was named as a defendant in the Avisma lawsuit which was filed on August 19, 1999. The bank may have facilitated the large-scale theft of Soviet Treasury funds before and following the USSR’s collapse in 1991. His company had borrowed hundreds of millions of dollars from western banks. He was arrested on October 25, 2003 and sentenced in June 2005 to eight years on fraud and tax evasion charges. He was allegedly targeted as a political enemy by President Vladimir Putin who went after other big business owners who apparently made money by acquiring states assets. Yukos was sold piecemeal to pay off $28 billion in back tax charges. Yukos was seized and given to Rosneft.
When Khodorkovsky was arrested, his secretive business arrangement with the Rothschild family was exposed as Jacob Rothschild assumed Khodorkovsky’s 26% control of Yukos while Khodorkovsky’s directorial seat on the Yukos board went to Edgar Ortiz, a former Halliburton vice president during Dick Cheney’s reign as CEO at Halliburton. Cheney, as President and CEO of Halliburton, automatically had an association with the State Oil Company of Azerbaijan Republic (SOCAR). In November 1997, Dick Cheney, in anticipation of imminent events, had appointed Edgar Ortiz as president of Halliburton Energy Services, their global division.
#The Yukos Oil Company merged with the smaller Sibneft Oil Company on October 3, 2003 which created Russia’s largest oil and gas business and the world’s forth-largest private oil company. On May 11, 2007 Halliburton announced they had made an agreement with the Tyumen State Oil and Gas University to open a new employee-training center in Russia to grow their business in that country and in the surrounding region. They are currently training students from five countries, Kazakhstan, the Netherlands, Norway, Russia and the United Kingdom. Halliburton was awarded a $33 million contract by TNK-BP to provide oil field services to develop the Ust-Vakh field in Western Siberia.
The Bush Family's Project Hammer
Part 2 of 2
Deanna Spingola
February 20, 2010
September 11 – Black Op Cover-up
Three top securities brokers had offices in the World Trade Center, Cantor Fitzgerald, Euro Brokers and Garbon Inter Capital. Flight 11 struck just under the floors where Cantor Fitzgerald was located. Cantor Fitzgerald, with possible connections to the U.S. Intelligence apparatus, was America’s biggest securities broker and apparently the main target. Within minutes, an explosion in the North Tower’s vacant 23rd floor, right under the offices of the FBI and Garbon Inter Capital on the 25th floor caused a huge fire from the 22nd through the 25th floors. At the same time, there was an explosion in the basement of the North Tower. A vault in the North Tower basement held less than $1 billion in gold, much of which was reportedly moved before 9/11. However, the government had hundreds of billions of dollars of securities which were summarily destroyed. The Federal Reserve, untouched by the crisis at its downtown offices (as they had everything backed up to a remote location), assumed emergency powers that afternoon. The $240 billion in securities were electronically cleared. Then, at 9:03, Flight 175 slammed into the 78th floor of the South Tower just below the 84th floor where Euro Brokers were located. Brian Clark, the manager at Euro Brokers, heard numerous explosions, apparently unrelated to what he referred to as the oxygen-starved fire caused by the plane crash.
The September 11 attacks related to the financial improprieties during the preceding ten years which spurred at least nine federal investigations which were initiated in 1997-1998, about the same time that Osama bin Laden, after twenty years as a CIA asset, announced a fatwa against the U.S. The records of many of those investigations were held in the Buildings Six and Seven and on the 23rd floor of the North Tower. Those investigations were sure to reveal the black Eagle Trust shenanigans. Building Seven, not hit by a plane, collapsed at 5:20:33 p.m. but was vacated as early as 9:00 when evacuees claimed to see dead bodies and sporadic fires within the building.
By 2008 and even earlier the covert securities were worth trillions. The securities used to decimate the Soviets and end the Cold War were stored in certain broker’s vaults in the World Trade Center where they were destroyed on September 11, 2001. They would have come due for settlement and clearing on September 12, 2001. The federal agency investigating these bonds, the Office of Naval Intelligence was in the section of the Pentagon that was destroyed on September 11. Renovations at the Pentagon were due to be completed on September 16, 2001. However, the Office of Naval Intelligence (ONI), the entity that often monitors war games, was hurriedly moved. If they were monitoring the simultaneous war games that morning, they would have realized that the games were used as a distraction from the actual assault. Whatever hit the pentagon struck the Navy Command Center and the offices of the Chief of Naval Operations Intelligence Plot (CNO-IP). There were 125 fatalities in the Pentagon; thirty-one percent of them were people who worked in the Naval Command Center, the location of the Office of Naval Intelligence. Thirty-nine of the forty people who worked in the Office of Naval Intelligence died.
On September 10, 2001 Rumsfeld announced that the Pentagon couldn’t account for $2.3 trillion, “We are, as they say, tangled in our anchor chain. Our financial systems are decades old. According to some estimates, we cannot track $2.3 trillion in transactions. We cannot share information from floor to floor in this building because it's stored on dozens of technological systems that are inaccessible or incompatible.” It was forgotten the following morning. Accountants, bookkeepers and budget analysts who were in the section of the Pentagon being renovated met their unexpected deaths. The destruction of accounting facts and figures will prevent discovery of where that money went. I am quite certain someone knows where it is. Certainly this is not merely gross incompetence but private seizure of public funds. At the time Rabbi Dov
Zakheim was chief-financial officer for the Department of Defense. In 1993, Zakheim worked for SPS International, part of System Planning Corporation, a defense contractor. His firm’s subsidiary, Tridata Corporation directed the investigation of the first “terrorist” attack on the World Trade Center in 1993.
Certain National Security officials who had participated in the Cold War victory in 1991 thus comprised the collateral damage of the Cold War. They, along with hundreds of innocent people were in the World Trade Center towers and the Pentagon. Their deaths were presumably required to conceal the existence of the Black Eagle Trust, along with the numerous illegal activities it had funded for over 50 years. This massive destruction, and the lost lives, constitutes a massive cover-up and continued lawlessness by the brotherhood of death, Skull and Bones, and their accomplices, the Enterprise. The Enterprise was established in the 1980s as a covert fascist Cold Warriors faction working with other groups like Halliburton’s private security forces and the Moonies. Citibank is connected to the Enterprise, along with all the CIA front banks, Nugen Hand and BCCI.
Double Dipping
Alvin B. “Buzzy” Krongard was elected Chief Executive Officer of Alexander Brown and Sons in 1991 and Chairman of the Board in 1994. Bankers Trust purchased Alexander Brown and Sons in 1997 to form BT Alex Brown. Krongard relinquished his investments in Alex Brown to Banker’s Trust as part of the merger. He became Vice Chairman of Banker’s Trust where he personally interacted with wealthy clients who were intimately linked to drug money laundering. After a year of possible networking, Krongard joined (or as Michael Ruppert suggests, rejoined) the CIA in 1998 where his friend, Director George Tenet, concentrated his skills on private banking ventures within the elite moneyed community. Senate investigations verify that private banking firms frequently engage in money laundering from illicit drugs and corporate crime operations. On January 28, 2000 the Reginald Howe and GATA Lawsuit was filed which accused certain U.S. bullion banks of illegally dumping U.S. Treasury gold on the market. The lawsuit named Deutsche bank Alex Brown, the U.S. Treasury, Alan Greenspan, the Federal Reserve, and Citibank, Chase, as defendants. Gerald Corrigan was accused of having private knowledge of the scheme. Krongard became the Executive Director of the CIA, essentially the Chief Operating Officer, and the number three man on March 16, 2001. Krongard, while at the CIA, arranged for Blackwater’s Erik Prince to get his first contract with the U.S. government, and later joined its board.
Richard Wagner, a data retrieval expert, estimated that more than $100 million in illegal transactions appeared to have rushed through the WTC computers before and during the disaster on September 11, 2001. A Deutsche Bank employee verified that approximately five minutes before the first plane hit the tower that the Deutsche Bank computer system in their WTC office was seized by an outside, unknown entity. Every single file was swiftly uploaded to an unidentified locality. This employee escaped from the building, but lost many of his friends. He knew, from his position in the company, that Alex Brown, the Deutsche Bank subsidiary participated in insider trading. Senator Carl Levin claimed that Alex Brown was just one of twenty prominent U.S. banks associated with money laundering.
Andreas von Bülow, a Social Democratic Party member of the German parliament (1969-1994), was on the parliamentary committee on intelligence services, a group that has access to classified information. Von Bülow was also a member of the Schalck-Golodkowski investigation committee which investigates white-collar crime. He has estimated that inside trader profits surrounding 9/11 totaled approximately $15 billion. Von Bülow told The Daily Telegraph “If what I say is right, the whole US government should end up behind bars.” Further, he said, “They have hidden behind a veil of secrecy and destroyed the evidence…they invented the story of 19 Muslims working within Osama bin Laden’s al Qaeda in order to hide the truth of their own covert operation.” He also said, “I’m convinced that the US apparatus must have played a role and my theory is backed up by the [Washington] government’s refusal to present any proof whatsoever of what happened.”
On September 26, CBS reported that the amount was more than $100 million and that seven countries were investigating the irregular trades. Two newspapers, Reuters and the New York Times, and other mainstream media reported that the CIA regularly monitors extraordinary trades and economic irregularities to ascertain possible criminal activities or financial assaults. In fact, the CIA uses specialized software, PROMIS, to scrutinize trades.
Numerous researchers believe, with justification, that the transactions in the financial markets are indicative of foreknowledge of the events of 9/11, the attacks on the twin towers and the pentagon. One of the trades, for $2.5 million, a pittance compared to the total, went unclaimed. Alex Brown, once managed by Krongard, was the firm that placed the put options on United Airlines stock. President Bush awarded Krongard by appointing him as CIA Executive Director in 2004.
Between September 6 and 7, 2001, the Chicago Board Options Exchange received purchases of 4,744 put options on United Airlines and only 396 call options. If 4,000 of those options were purchased by people with foreknowledge, they would have accrued about $5 million. On September 10, the Chicago exchange received 4,516 put options on American Airlines compared to 748 calls. The implications are that some insiders might profit by about $4 million. These two incidents were wholly irregular and at least six times higher than normal.
Morgan Stanley Dean Witter & Company, who occupied floors 43-46, 56, 59-74 of the World Trade Center, Tower 2, saw 2,157 of its October $45 put options bought in the three trading days before Black Tuesday. This compares to an average of 27 contracts per day before September 6. Morgan Stanley’s share price fell from $48.90 to $42.50 in the aftermath of the attacks. Assuming that 2,000 of these options contracts were bought based upon knowledge of the approaching attacks, their purchasers could have profited by at least $1.2 million. The U.S. government never again mentioned the trade irregularities after October 12, 2001. Catastrophic events serve two purposes for the top criminal element in society – the perpetrators seize resources while their legislative accomplices impose burdensome restrictions on the citizens to make them more submissive and silent.
Project Hammer - Covert Finance and the Parallel Economy
By David G. Guyatt © 2001
c/- NEXUS Office 55 Queens Road
East Grinstead, W. Sussex RH19 1BG United Kingdom
David Guyatt
David Guyatt
Extracted from Nexus Magazine
Volume 9, Number 1 December-January 2002
The off-ledger trading programs operated by some central and international banks launder massive amounts of money and provide vast sums to fund covert 'black budget' projects.
Part One
Project Hammer is all about money. Stupendous great gobs of money. So much money, in fact, that it will challenge whatever reality you thought you had about the over-world of banking, finance and economics. It is also about the nether world of international banking and finance, a world that is said not to exist in reality. But exist it does.
More often than not, this never-never-land of international banking is concealed from public view by the judicious use of two sets of books. It is also eclipsed from interested investigators by a never-ending series of real frauds that result in arrest and imprisonment of numerous scam artists. This creates the clever illusion that the only thing going on are artful scams designed to fleece the unwary.
Such swindles fall under the general category of High Yield Investment Programs, Front End Fee frauds and Prime Bank Note schemes. Numerous law enforcement cases such as these, when twinned with dire "beware" warnings published on FBI, US Treasury and other websites, easily lead one to conclude that there are no such things as "real" trading programs. And the powers that be don't at all object to this conclusion being reached. It is the old case of hiding trees in a forest.
A key point to keep to the fore in what follows is that trading programs operate "off ledger". That is to say, the banks and central banks that operate them run two sets of books: one set for public scrutiny, and another set for private viewing only. Another fact to bear in mind is that authorised programs generate quite spectacular profits for very little--in fact, minuscule--risk, and those who are invited to participate as funders accumulate capital at a shockingly rapid rate. One reason, perhaps, why the wealthy get altogether wealthier as the poor sink ever lower into the mire of poverty.
The financial, banking and economic shadow-world in which Project Hammer lived, breathed and manufactured money "out of thin air" is the dirty little secret of the Western economy. It is a form of money creation that is effectively unchallenged by any form of oversight or accountability as we understand it. Hammer and numerous other transactions like it are based on what are known as Collateral Trading Programs, although many other descriptive names and terms are also used.
The reason for such programs is to create vast pools of ready money that are earmarked for use in sanctioned (authorised) operations and projects. On the plus side, many beneficial projects throughout the world get funded as a result of program trading. On the negative side, there are more shadowy projects. Included in the latter category are certain black operations.
The amalgamated pool of funds created and now held in dormant and orphaned bank accounts runs to trillions of dollars, according to insiders. At the low end of estimates, there is believed to be enough to pay off the US national debt plus some change. At the higher end, estimates range up to hundreds of trillions of dollars. I have been repeatedly told, almost matter-of-factly, that the higher estimates are closer to the truth. I simply don't know how big the sums amount to, but I can document US$12 trillion. This sum is revealed in the late Baron Krupp papers that form part of the exhibits of the companion volume to dossier The Secret Gold Treaty (
Many different sources say that programs are also used to launder money by spinning it through a program cycle until it is pristine clean. Drugs, guns and the usual array of dirty money transactions are said to feature.
Since US dollars are the cornerstone of all program activity, Uncle Sam naturally gets a bite of the action. A percentage of the proceeds is collected via private tax treaties negotiated with offshore entities. These treaties also help to shield the reality of these programs from public awareness. There are unsubstantiated rumours that some of the tax take occasionally gets "diverted" for altogether private purposes. It is an allegation that is impossible to stand up, however.
London and Zurich are key centres for program activity, although transactions are usually booked through offshore entities. London and Zurich are also gold centres, and more than one credible source confirms that "black" gold forms an important part of program trading activity. There are also good reasons to suppose that part of Uncle Sam's share of trading profits is credited to the Exchange Stabilisation Fund. Here it is pooled with other funds and used to shore-up the American economy by--amongst other manoeuvres--manipulating the gold price to keep it below a predetermined price.
Trading programs are the preserve of many governments, their treasury departments and the top international banks which by their very nature have the necessary mechanisms in place to enable trading to take place efficiently and secretly. Banks from G7 nations dominate.
It follows, therefore, that a number of problems occur as a consequence of the multijurisdictional nature of supervision; and although safeguards are in place to ensure that "clean" money is fed into the system, this doesn't always happen. Funds of suspect origin do enter the system and are made pristine clean by this form of paper alchemy.
Large sums of black gold, cash or other forms of convertible assets are used as "collateral" to initiate trading programs. There are also certain classes of government-issued treasury notes and bonds that are privately lodged with major Western banks. These "treasuries" are never meant to see the light of day, but are in turn used by major banks to back the issuance of their own bank debentures "off ledger" in substantially leveraged amounts that can run into tens of trillions of dollars--or their foreign currency equivalents.
In turn, this bank "paper" is traded in pre-arranged "buy/sell" transactions at steep discounts (cents on the dollar) off the face value of the issued bank debentures. The trading of the paper between banks--using proxies--is arranged and coordinated so that the traded obligations effectively "wash out" or are otherwise cancelled, although other scenarios exist where issued paper is purchased at a fair market value and held to maturity. In the past, trading was paper-based, but today everything is electronic "screen-based" and consequently the credits traded have a life of milliseconds.
The difference between the buy-and-sell price--usually known as the "spread" (in the case of Hammer, this was said to be many percentage points)--generates a "fallout", a term that implies profit. In other transactions, most notably "Jacobe", the spread was represented to be at least 10% on a planned face value issuance of US$27.5 trillion, according to documents I have seen. This would have created a fallout of US$2.75 trillion. However, for reasons yet unknown to this writer, it seems that the Jacobe program, privately hailed as the largest program "ever put together", was--for reasons that are still inexplicable--only two-thirds completed.
Less grand, but just as interesting in other respects, was the fallout from Project Hammer, which is said to have totalled over US$220 billion. In fact, the precise sum is US$223,104,000,008.03.2
The Nugan Hand Bank Connection
One of the central characters associated with Project Hammer was Brigadier General Erle Cocke. Back in 1966, Cocke, along with his sleeping partner General Eugene Phillips, established the Washington-based consultancy firm Cocke & Phillips International. This was at the height of the Vietnam War, and just a few months after Cold Warrior Paul H. Nitze issued the directive authorising the establishment of the US Navy's clandestine intelligence collection program more commonly known as "Task Force 157".
TF 157 would later feature in the Nugan Hand Bank affair exposed by Wall Street Journal investigative reporter Jonathan Kwitny in his book The Crimes of Patriots. Task Force 157 came to an end on the instruction of Admiral Bobby Ray Inman, once he discovered the full involvement of "rogue" CIA agent Edwin Wilson in the Task Force. Wilson was responsible for so much intrigue and illegality that one could shake a stick at it. He was eventually arrested, tried and imprisoned--where he remains to this day, fighting for release. Many now believe that he was working on orders from above but in a deniable role and was cynically sacrificed to save other more prominent players.
During his investigation, Jonathan Kwitny learned that General Erle Cocke ran Nugan Hand Bank's Washington office. Cocke's partner General Phillips denied this, saying they had merely rented office space to Nugan Hand Inc.'s Hawaii President, General Edward Black--a former OSS, CIA and senior military officer. This proved to be untrue, however. Kwitny learned that papers filed with the US Treasury listed General Cocke as the "person in charge" of Nugan Hand's Washington office. Cocke claimed that someone else must have filed these papers without his knowledge or consent.
In April 2000, Cocke gave a deposition running to 67 pages concerning his knowledge and involvement in Project Hammer. Ten days later he died from pancreatic cancer. His explosive deposition reveals him as a very significant and highly connected player in a world few of us are familiar with.
Cocke fought in three wars: World War II, Korea and Vietnam. During WWII he was an artillery officer and a division staff officer and was a POW under the Germans. He worked for General MacArthur during the Korean War and for General Westmoreland in the Vietnam War. Highly decorated for his service, he was awarded a Silver Star, a Bronze Star and cluster, a Purple Heart with three clusters, a Croix de Guerre plus the Légion d'honneur from France, and a Medal of Honour from The Philippines. He was the youngest National Commander of the American Legion and, prior to his death, became the oldest National Commander. In addition he was distinguished by the Red Cross with the medal Cruz Roja, and he was made an Honourable Comrade of the Nationalist Chinese Air Force.
Cocke was a Shriner Mason of many years' standing (he held a semi-official voluntary position for that organisation) and a Grand Commander of the Knights of Malta--the secretive Vatican order that boasts numerous members who serve, or are closely affiliated with, Western intelligence and military services. Intriguingly, he claimed to have been the first Protestant "in 1200 years to be so honoured".
In 1959 and again in 1960 he was a member of the US delegation to the General Assembly of the United Nations, holding the rank (and pay grade) of Ambassador. After that, he was the first fulltime US Alternate Executive Director of the World Bank, a position he held for four years from 1961 & 64. Pressed about this in more detail by his questioner, a Washington attorney, Cocke responded by saying:
"At that time I owned 28 percent of the stock and, of course, I had all kinds of people in the Treasury tell me what to do. Don't get me wrong, I made all the decisions. But I was the executor, I was the delivery."
He also confirmed that he had worked for every US President:
"...from Truman to date. At some stage of the game I worked for all of them. I have to admit that some of them were very minor chores and others were important."
In addition to his many abilities and accomplishments listed above, Erle Cocke was above all other things a banker--a profession that ran in the family. His great-grandfather put a bank "together in 1867", which was then the only bank in Georgia. His grandfather founded a bank in about 1890, and his father was President of Fulton National Bank (which became Bank of America) and was at one time the President of the American Bankers Association and Chairman of the Federal Deposit Insurance Corporation (FDIC).
Asked about his own knowledge of banking, Cocke said he had taken all the normal banking courses, and added:
"I understand banking. I can teach banking--you understand what I am saying--at the college level."
This banking expertise was at the core of his firm, Cocke & Phillips International, which began life as a:
"...normal American firm, lobbying firm, here in Washington, and we grew into banking particularly. The UN contacts and the World Bank contacts--sometimes they help those people for 10 years."
In a similar vein, he undertook all sorts of "chores" for some of the government intelligence agencies. He explained this as follows:
"One thing is if they trusted you, they practically came in and said, 'What do I do?' I mean, you didn't argue with them. You sort of proceeded with the program and gave them a few choices, of course. But [they] practically always followed what we did. I was administrator, arbitrator. I was [the] moderator, bringing people together."
Asked if that experience "would be true in the financial and banking world in particular", Cocke replied:
"Oh, yes. I have been able to close things that other people can't close."
As we shall see, Cocke's ability to "close" things other people could not close did not extend to Project Hammer--a financial operation that, according to Cocke, deeply involved Citibank and its Chairman, John Reed. Cocke said he could get to see any President without any trouble, but complained that he could not get to meet John Reed.
Collateral Damage
Having briefly examined General Cocke's background, let's now return to that stupendous sum of "black" money mentioned earlier. For purposes of clarity, this amount was referenced in Erle Cocke's deposition. If, as we have said, this amount was stealthily "magicked" into being as a result of an exotic form of financial smoke and mirrors, the question is: where did it go?
According to Cocke, this sum was lodged in "30-some odd accounts together". Asked where these accounts were located, Cocke responded by saying, "In almost one solid block at Citibank".
General Cocke's questioner then asked: "Would they have been in control of Mr Reed?"--meaning former Citibank CEO and Chairman John Reed.
Cocke responded as follows, in this exchange with the attorney: A. Probably not all because there were so many different participants involved, and in different locations, countries, that I would say no, he did not have complete control, but everybody recognized it wouldn't be settled until it got to him. Q. And these were, you say, accounts for various people around the world? A. Yes. Q. Produced as a result of what? A. Well, most of them figured that greed in particular was mighty high. And, if they put up this amount of money, then I am going to get this kind of money coming back. That's the way practically all of it was. I hate to use the word "sole", but "present" might be a better word. Q. Were these accounts for the benefit of people who had engaged in some kind of trading program? A. They were all to get in the trading program. I haven't found anybody that didn't go in wanting to increase their income and their greed in the highest bracket if they could possibly put up money. Q. What I am understanding from you is that whatever these individuals, corporate entities, or even government...they believed, apparently by putting these funds with Citibank as part of this effort, they would then receive later down the road a pay-off? A. That is correct. Q. As a result of Citibank's management of these funds, is that fair to say? A. Yes, basically the whole trading bloc in a nutshell.
During the course of his deposition, General Cocke was asked if he knew who "created" Hammer "to begin with". He admitted that he didn't know and was even reluctant to make a guess, but added that whoever set it in motion "had to have been somebody at a pretty high level". He then made the interesting observation that whoever it was who had authorised it, "the original structure" had "obviously got way out of proportion as time went by". The implication was that some of the money--the fallout--got diverted from its original intention.
More than a few of those involved in Project Hammer at various levels have told me that they believe some of the pool of money created by the Hammer project was "diverted" and used to rescue many of the world's major banks, which by the very end of the 1980s faced insolvency following reckless lending policies throughout the late 1970s and early/middle 1980s. It is certainly true that at that time many major banks like Citibank, HSBC, Chase, BoNY and others stood teetering on the very brink of disaster.
Another view is one that has been expressed by Daniel Hughes, of Hughes Oil Company, a Florida-based corporation. Hughes had been heavily involved in finding collateral to place in a number of trading programs over several years. This cost him tens of thousands of dollars, since most of these were illegitimate rather than genuine. It is a fate that waits for untold thousands of unsuspecting investors who step into this shadowy realm unprepared.
Even so, it seems that Hughes did play a part in attempting to place collateral in Project Hammer. He believes that the funds diverted from Project Hammer ended up in a CIA-controlled Swiss bank account in the name of the late Howard Hughes. On the basis of years of investigation, Daniel Hughes believes that Project Hammer involved the trading of US$13.6 trillion in debentures, resulting in a "fallout" of about US$1.1 trillion which was stashed in the Howard Hughes account in Credit Suisse. Whilst there is no hard corroboration in support of this claim, it remains an intriguing possibility. More so, for in his deposition General Cocke indicated that black money generated by trading programs might be hidden in dormant accounts, and a Howard Hughes account set up 30 years ago would clearly fall into that category.
According to Erle Cocke plus others I have spoken with, Project Hammer began life as an authorised but secretive trading program aimed at repatriating dollar assets that dated back several decades. Cocke confirms this when he was asked what the overall objectives of Project Hammer were:
"Well, it was mainly to bring monies back to the United States from all types of activities, both legitimately and illegitimately. Not that they were in the smuggling business per se, but they were all in the arms business; they were all retracing dollars of one description or another that had accumulated all through the '40s and '50s really. And that probably is as broad a definition as I can give you. And all kinds of nationalities were involved, all kinds of people were involved."
Cocke was then asked who would have been behind the Hammer project. Would it, the questioner asked, have involved "various agencies of the US Government"?
"Yes. Obviously the CIA, the FBI, the national security agencies of all types, Pentagon in the broadest sense of it and as such, and the Treasury, Federal Reserve. Nobody got out of the act, everybody wanted to get in the act."
But there were numerous other entities involved in Project Hammer. None more so than the world's big bank, as is made clear by the following exchange: Q. What other banks and financial institutions were involved in it? A. Well, if they were, they were still as a correspondent to Citibank
"Correspondent", in the sense General Cocke's uses this term, means one bank's account maintained at another bank. This is used to handle money transfers between both banks, and it very often denotes a "special relationship" between the banks concerned. The questioner then asked: Q. Do you know which of those would be involved? Was Chase Manhattan one? A. I am sure that every big bank in every major country at some stage of the game had some of this pass by them. They had a chance to refuse, or they had a chance to take it up.
Citibank, "The Cheese"
Cocke was then asked who the "dominant participant" was in "terms of running this project, this vast project". The General is in no doubt about his reply when he says that, based on his own investigation, it was "Citibank of New York, in both their Athens, Greece, office and in their New York City office". He also acknowledged that Hammer was part of "an ongoing long-term kind of project".
Cocke went on to reveal that Citibank were "going to be the trustees. They were going to be running the program. They were going to be the disbursing agency. They were the cheese."
Asked to identify which principal officer in Citibank handled Project Hammer, Cocke responded that "from all records, communications and contacts, John Reed was Vice President, but he was the lone coordinator, for a better word".
Reed, who was Citibank's President and Chairman during this period, has formally denied his involvement in Project Hammer. In a deposition sworn in December 2000, Reed stated that he had "no recognition or knowledge of anything purportedly known as Project Hammer". Nor did he have "any recognition or knowledge" of any person named Erle Cocke. His deposition goes on to list a number of other items, people and allegations that he also had "no recognition or knowledge" about.
For their part, Citibank, in a letter dated December 12, 2000, state that they "never issued commercial instruments on the basis of its possession of quantities of gold made available to it by agencies of the US Government and the Federal Reserve in order to ensure the solvency of Citibank in the '80s and other bullion banks".
This denial, although emphatic, is interesting. Research shows that gold recovered by the forerunner to the CIA--the Office of Strategic Services (OSS)--was deposited in Citibank (and many other banks, too), not in the name of the OSS or CIA but in the name of one of their operatives, Severino Garcia Santa Romana.
On his death in 1974, some--but not all--of Romana's "assets" appear to have been illegally acquired by former Philippines President Ferdinand Marcos, who was at one time Santa Romana's attorney. According to Santa Romana's widow, her husband gave Marcos a limited Power of Attorney for use solely in the Philippines, since he travelled abroad regularly. It seems that Marcos somehow made use of this to gain control over Santa Romana's gold and other assets.
It also appears likely, based on documents in this writer's possession, that considerable quantities of gold once held by Santa Romana were later placed under the control of former CIA covert operator Major-General Edward Lansdale. However, these assets were lodged with the Union Bank of Switzerland. Again, it is worthy of note that they were placed in Ed Lansdale's name, not in the name of a US Government agency. These assets are very clearly off the books.
Large quantities of gold held by Citibank remained in the account names of Severino Garcia Sta. Romana and José Antonio Diaz de la Paz (the latter being a well-known alias for Santa Romana) under reference codes "Fanerst King Fisher" and "Burgst Harbor King" respectively. These have been the subject of a legal wrangle between Santa Romana's heirs and Citibank's John Reed.
The fact that the gold held by Citibank and others may not have been in the name of the Central Intelligence Agency or the Federal Reserve--but, rather, was in Santa Romana's name--may have been all Citibank needed to wriggle out of a poorly crafted question.