God's declaration of Truth


Luke Chapter 19

The words of Our Only Lord and Saviour Jesus Christ in red.

19:10 "For the Son of man is come to seek and to save that which was lost."
19:11 As they were hearing these things, he added and spoke a parable, because he was nigh to Jerusalem and because they thought that the kingdom of God should immediately be manifested.
19:12 He said therefore: "a certain nobleman went into a far country, to receive for himself a kingdom and to return.
19:13 And calling his ten servants, he gave them ten pounds and said to them: Trade till I come.
19:14 But his citizens hated him and they sent an delegation after him, saying: 'We will not have this man to reign over us.'
19:15 And it came to pass that he returned, having received the kingdom: and he commanded his servants to be called, to whom he had given the money, that he might know how much every man had gained by trading,
19:16 And the first came saying: 'Lord, thy pound hath gained ten pounds.'
19:17 And he said to him: 'Well done, thou good servant, because thou hast been faithful in a little, thou shalt have power over ten cities.'
19:18 And the second came, saying: 'Lord, thy pound hath gained five pounds.'
19:19 And he said to him: 'Be thou also over five cities.'
19:20 And another came, saying: ' Lord, behold here is thy pound, which I have kept laid up in a napkin.
19:21 For I feared thee, because thou art an austere man: thou takest up what thou didst not lay down: and thou reapest that which thou didst not sow.'
19:22 He saith to him: 'Out of thy own mouth I judge thee, thou wicked servant. Thou knewest that I was an austere man, taking up what I laid not down and reaping that which I did not sow.
19:23 And why then didst thou not give my money into the bank, that at my coming I might have exacted it with usury?'
19:24 And he said to them that stood by: 'Take the pound away from him and give it to him that hath ten pounds.'
19:25 And they said to him: 'Lord, he hath ten pounds.'
19:26 But I say to you that to every one that hath shall be given, and he shall abound: and from him that hath not, even that which he hath shall be taken from him.
19:27 But as for those my enemies, who would not have me reign over them, bring them hither and slay them in my presence."
19:28 And having said these things, he went before, going up to Jerusalem.
19:29 And it came to pass, when he was come nigh to Bethphage and Bethania, unto the mount called Olivet, he sent two of his disciples,
19:30 Saying: "Go into the town which is over against you, at your entering into which you shall find the colt of an ass tied, on which no man ever hath sitten: loose it and bring it.
19:31 And if any man shall ask you: 'Why are you loosing it?' You shall say thus unto him: Because the Lord hath need of it.' "
19:32 And they that were sent went their way and found the colt standing, as he said unto them.
19:33 And as they were loosing the colt, the owners thereof said to them: "Why are you loosing it?
19:34 But they said: "Because the Lord has need of it."
19:35 And they brought it to Jesus. And casting their cloaks over the colt, they set Jesus on it.
19:36 And as he went, they spread their cloaks upon the road.
19:37 And when he was drawing near, being now at the descent of the Mount of Olives, the whole company of his disciples began to rejoice and to praise God with a loud voice, for all the miracles that they had seen,
19:38 Saying: "Blessed is he who comes as king, in the name of the Lord! Peace in heaven and glory in the highest!"
19:39 And some of the Pharisees, from the crowds, said to him: "Master, rebuke thy disciples."
19:40 He said to them: "I tell you that if these keep silence, the stones will cry out."
19:41 And when he drew near, seeing the city, he wept over it, saying:
19:42 "If thou also hadst known, and that in this thy day, the things that are to thy peace: but now they are hidden from thy eyes.
19:43 For the days shall come upon thee: and thy enemies shall cast a trench about thee and compass thee round and straiten thee on every side,
19:44 And beat thee flat to the ground, and thy children who are in thee. And they shall not leave in thee a stone upon a stone: because thou hast not known the time of thy visitation."
19:45 And entering into the temple, he began to cast out them that sold therein and them that bought.
19:46 Saying to them: "It is written: My house is the house of prayer. But you have made it a den of thieves."
19:47 And he was teaching daily in the temple. And the chief priests and the scribes and the rulers of the people sought to destroy him.
19:48 And they found not what to do to him: for all the people were very attentive to hear him.

The Second Epistle of St. Paul to the Thessalonians

The day of the Lord is not to come till the man of sin be revealed. The apostle's teachings are to be observed.

2:1 And we beseech you, brethren, by the coming of our Lord Jesus Christ and of our gathering together unto him:
2:2 That you be not easily moved from your sense nor be terrified, neither by spirit nor by word nor by epistle. as sent from us, as if the day of the Lord were at hand.

Chap. 2. Ver. 2. Spirit . . . utterance. . . letter indicate three possible sources of their belief that the parousia is imminent. Spirit refers to some falsely claimed revelation, utterance may be a statement of Paul’s which was misunderstood, or wrongly attributed to him, the letter seems to be one forged in Paul’s name.

2:3 Let no man deceive you by any means: for unless there come a revolt first, and the man of sin be revealed, the son of perdition

Ver. 3. . . The parousia must be preceded by a great apostasy, i.e., a great religious revolt, and the advent of the man of sin, i.e., Antichrist. Son of perdition, one entirely deserving of eternal punishment.

Ver. 3. The day of the Lord will not come. These words have been inserted to complete the sentence, which in the original is elliptical. The expanded reads "Let no man deceive you by any means: for the day of the Lord will not come unless there come a revolt first, and the man of sin be revealed, the son of perdition"

2:4 Who opposeth and is lifted up above all that is called God or that is worshipped, so that he sitteth in the temple of God, shewing himself as if he were God.

Ver. 4. In the temple, that of Apostate Jerusalem which the full consensus of the Church Fathers declare he will rebuild - i.e. the Temple of Remphan; and in the Apostate shell of the former Christian church, which he perverts to his own worship: as the Freemasons have done to the Vatican.

Ver. 4. Antichrist will be characterized by great impiety and pride. He sits in the temple of God, etc. He will aspire to be treated as God and proclaim that he is really God.

2:5 Remember you not that, when I was yet with you, I told you these things?
2:6 And now you know what restrains him, that he may be revealed in his proper time.

Ver. 6. What restrains him. The Thessalonians knew the obstacle. We also know that it is Jesus Christ.

2:7 For the mystery of iniquity is already at work: only that he who is at present restraining it, does still restrain, until he is gotten out of the way.

Ver. 7. Mystery of iniquity, the evil power of Satan’s threefold prevarication and total Apostasy from God, of which Antichrist is to be the public exponent and champion. He who is at present restraining it. The obstacle is now spoken of as a person. Some point out that Michael the archangel and his heavenly army are obstacles, and this is true, which now prevent the appearance of Antichrist – but the primary obstacle is, as St. Justin Martyr teaches: Jesus Christ Himself; when the great Apostasy is complete, then in effect, Christ is “gotten out of the way.”

2:8 And then that wicked one shall be revealed: whom the Lord Jesus shall kill with the spirit of his mouth and shall destroy with the brightness of his coming: him

Ver. 8. When Christ appears in glory, He will inflict defeat and death on Antichrist by a mere word of command.
2:9 Whose coming is according to the working of Satan, in all power and signs and lying wonders:

Ver. 9 – 10. By the aid of Satan Antichrist will perform prodigies which men will falsely regard as miracles, and by means of which they will be led to adopt sinful practices.

2:10 And with all wicked deception to those who are perishing. For they have not received the love of truth that they might be saved.
2:11 Therefore God shall send them the operation of error, to believe lying:

Ver. 11. God shall send. . .That is God shall suffer them to be deceived by lying wonders, and false miracles, in punishment of their not entertaining the love of truth.
Ver. 11. 'God sends.' God will allow their willful rejection of truth to have its natural results of spiritual blindness, impenitence and damnation. A misleading influence, or, “a delusion.” The operation of error - the Greek reads: "energian planes" or literally the energy of delusion, which is exactly and actually the fallen spirits of the devils and demons conjured by pagan religion, especially by idolatry. NOW, currently, the Assisi delusion of the Apostates, Ratzinger and Wojtyla and many others present with them, is a very real and prime example. To give oneself over to this is to invite utter and complete damnation of oneself by God.
2:12 That all may be judged who have not believed the truth but have consented to iniquity.

2:13 But we ought to give thanks to God always for you, brethren, beloved of God, for that God hath chosen you firstfruits unto salvation, in sanctification of the spirit and faith of the truth:
Ver. 13. First-fruits, i.e., earliest believers in the gospel. Some manuscripts read: “from the beginning.” That is, God called them from all eternity.
2:14 Whereunto also he hath called you by our gospel, unto the purchasing of the glory of our Lord Jesus Christ.

2:15 Therefore, brethren, stand fast: and hold the teachings, which you have learned, whether by word or by our epistle.
Ver. 15. Teachings, i.e., his teachings whether given orally or in writing. Concerning Apostolic teaching – the oral is included in the written at the point we have the whole New Testament complete, i.e. with the completion of St. John’s Gospel.
2:16 Now our Lord Jesus Christ himself, and God and our Father, who hath loved us and hath given us everlasting consolation and good hope in grace,

2:17 Exhort your hearts and confirm you in every good work and word.

St. Irenaeus

St. Irenaeus
St. Irenaeus Against Heresies and the warning against the Antichrist - click on picture

Blog List

A few words

The articles posted in the main here are from a variety of sources and perspectives, but all based on the unchangeable truth that all law comes from God, or if it is something that pretends a legalism but does not agree with God's law, then it is nothing lawful at all; the Noachide nonsense is the prime example of that which is not at all lawful. See the right side pane and below the posts at the bottom of the page for a number of sources that help shed light on this. All copyrighted sources are quoted and used for comment and education in accord with the nonprofit provisions of: Title 17 U.S.C., Section 107.

By Command of God


GO HERE: Traditional Catholic Prayers: Eucharist in house churches Commanded by God. To rise above the concerns of the world to the service of God.

Traditional Catholic Prayers: Office of the Hours for the Week

Go Here: The Return of Christ

And here:
Parousia of Jesus Christ Our Lord

The Promise of His coming. His commands to prepare and be worthy.

Statement of what is happening in the world in connection with the Second Coming of Our Lord and Saviour Jesus Christ.

Nuzul i Isa and Qiyamah, the Parousia of Jesus Christ Our Lord and His judgement of all men that have ever lived.

Rv:22:7 Behold I come quickly. Blessed is he that keepeth the words of the prophecy of this book.

Thursday, February 23, 2012

The Justice of God: The CIA and religion

go to link above or click on picture

BCCI - the CIA's Mother of all Terrorist Banking

Will BCCI happen again? bank on it. (part 1 of 2)

Article 1577 of misc.activism.progressive:
From: dave@ratmandu.corp.sgi.com (dave "who can do? ratmandu!" ratcliffe)
Newsgroups: misc.activism.progressive
Subject: will BCCI happen again? bank on it. (part 1 of 2)
Message-ID: <1991Nov23.064309.14321@pencil.cs.missouri.edu>
Date: 23 Nov 91 06:43:09 GMT
Sender: rich@pencil.cs.missouri.edu (Rich Winkel)
Followup-To: alt.activism.d
Organization: PACH
Lines: 586
Approved: map@pencil.cs.missouri.edu

The following is part one of a two-part series on BCCI
that recently appeared in "In These Times".
Reprinted with permission of "In These Times."

During World War II the United States had emerged as the globe's
dominant economic and military power. In 1944, the Bretton Woods
agreement established a system of fixed exchange rates based on
the dollar ....
By 1971, however, U.S. corporations had lost their competitive
edge to Japan and the U.S. military had wasted hundreds of
billions of dollars in Vietnam. Nixon's decision to devalue the
dollar and effectively end the Bretton Woods agreement on fixed
exchange rates simply recognized the inevitable--the United States
no longer ruled the world ....
By the start of the '90s, BCCI and other banks that operated out
of the offshore financial havens played key roles in the new
economic order dominated by multinational corporations. As the
United States learned when it was forced to end fixed exchange
rates, the new global economic system was too powerful for any one
government to control. For BCCI, as well as for international
criminal elements, this was a dream come true.

from the October 23-29, 1991 issue of "IN THESE TIMES":
A system out of control, not just one bank
By George Winslow

This is the first story in a two-part "In These Times" investigation
into the broader economic implication of the BCCI affair.

to find a job in one of the world's fastest growing banks, the
Bank of Credit and Commerce International (BCCI). The pay was
good and the perks were even better. His employer gave him a
lavish expense account to entertain foreign diplomats--and he got
to meet people like Jeb Bush, the U.S. vice president's son.
But Rehman soon discovered that international finance had a less
glamorous side. Often, he had to lug heavy suitcases filled with
cash through the sweltering Miami heat. During the day, he
worried about being robbed; at night, he wondered about the
bank's strange way of doing business. Bank executives told Rehman
the bags of cash were from a BCCI branch in the Bahamas. But
Rehman knew they were lying. The branch office didn't exist.
Years later, it s clear that BCCI has misplaced a lot more than
a bank office. On July 5 1991, bank regulators from several
nations shut down BCCI, charging that top executives had lost or
stolen as much as $15 billion worth of deposits.
Since then, the BCCI affair has exploded into the biggest
financial scandal of the `90s. A barrage of press reports have
detailed BCCI's involvement with drug dealers, CIA operators,
corrupt dictators and sleazy arms dealers. Even CIA officials
have been quoted as calling BCCI "the Bank of Crooks and Criminals
Unfortunately, the mainstream media has largely ignored a much
bigger scandal--a revolution in the global economy that has
produced many banks just like BCCI. This revolution has caused a
terrifying cycle of poverty, drug addiction and financial fraud
around the world. Like the toxic waste given off by a chemical
factory, BCCI is simply a noxious byproduct of a global economy
based on profits and high finance, not human needs.

HUMBLE BEGINNINGS: The economic context of the BCCI scandal
begins with socialism and ends with the creation of a kind of
capitalist utopia.
In 1972, BCCI's founder, Agha Hasan Abedi, was under house
arrest in Pakistan. A socialist government had nationalized
Abedi's United Bank and was investigating allegations of fraud at
the institution. But as police guarded his house, Abedi was
already meeting with some of his powerful friends, plotting the
creation of a new bank, BCCI.
This bank, Abedi liked to say, would be the world's first
"genuinely global bank." Bank of America--then the world's
largest bank--was trying to expand its international division.
The huge U.S. bank was the first investor to jump on board. Bank
of America put up only $2.5 million to acquire a 25 percent stake
in BCCI, but its involvement helped Abedi get investment capital
from powerful Third-World leaders and financiers. One early
investor was Sheik Zayed Bin Sultan al-Nahyan, ruler of oil-rich
Abu Dhabi. Other major investors would eventually include Kamal
Adham, former chief of Saudi Arabia's intelligence service; the
bin Mahfouz family, which also controls Saudi Arabia's largest
bank; and other rulers from the United Arab Emirates.
BCCI went into operation with only $10 million in capital, but
Abedi's timing was perfect. Over the next 18 years, BCCI would
grow by leaps and bounds. By no coincidence, so would the
international financial system. In 1970, only about $60 billion
moved through the international financial system each day. Today
more than $2 trillion worth of stocks bonds and currencies cross
national borders--a 3,200 percent increase. BCCI took full
advantage of this growth. By early 1990, it had grown into a $21
billion bank with 425 branches in over 75 countries that served
1.2 million customers.

UNCLE SAM'S FALL: A dramatic period of political and economic
disorder produced the global economic revolution that allowed BCCI
to thrive. One year before BCCI was founded, President Richard
Nixon announced that the United States would devalue the dollar,
effectively ending the American government's control over the
international financial system.
During World War II the United States had emerged as the globe's
dominant economic and military power. In 1944, the Bretton Woods
agreement established a system of fixed exchange rates based on
the dollar. By making the dollar the equivalent of gold in world
trade, U.S. economic policies became the world's economic
policies. Washington could print dollars to finance the Marshall
Plan in Europe and other programs designed to open up markets to
American corporations. And it could mint money to build up
America's military establishment--which, in turn, protected U.S.
investments in other countries. It was a "free world based on the
dollar and backed by the atomic bomb," according to Richard Barnet
and Ronald Muller, authors of "The Global Reach: The Power of
Multinational Corporations."
By 1971, however, U.S. corporations had lost their competitive
edge to Japan and the U.S. military had wasted hundreds of
billions of dollars in Vietnam. Nixon's decision to devalue the
dollar and effectively end the Bretton Woods agreement on fixed
exchange rates simply recognized the inevitable--the United States
no longer ruled the world.

A NEW KING: Assuming the U.S. government's throne, huge
multinational corporations had become the world's new imperial
power. American foreign investments jumped from $29.1 billion in
1955 to $120 billion in 1970 and $373 billion in 1989. Foreign
investments by every country in the world grew nearly tenfold from
$112.3 billion in 1967 to $1,023 billion in 1987.
U.S. banks also expanded their international operations to
provide financial services to their blue-chip clients. In 1965,
only 20 U.S. banks with 112 branches had set up shop overseas. By
1988, 132 American banks had 849 foreign branches, holding a total
of more than $275 billion in assets.
BCCI was quick to establish a relationship with many of the U.S.
banks that had expanded overseas in the '70s. A confidential
internal BCCI study, obtained by "In These Times," illustrates
just how many U.S. banks had close financial relationships with
BCCI. The 1985 study notes that for all of 1984, BCCI transferred
foreign currencies worth $37.5 billion through American banks.
Most of these foreign currency transfers, $19 billion, involved
five major American banks: Bank of America, Security Pacific,
American Express Bank Ltd., the Bank of New York and First
The BCCI study also shows that on an average working day in
1984, BCCI conducted 1,434 transactions involving $2.7 billion
with the five banks. Most of those transactions (700 in all,
worth $1.7 billion) involved Bank of America--even though Bank of
America had sold its stake in BCCI in 1980.

CAPITALIST UTOPIAS: The rapid growth of the global economy also
produced dramatic changes in the very structure of the
international economic system. Massive military expenditures from
Vietnam--along with increased imports--caused billions of dollars
to flow out of the United States. In the '60s, banks began
loaning these dollars--called "Eurodollars" because they were
often held in European banks--to corporations, thus creating the
world's first unregulated, international financial market. In
1963, only about $148 million worth of bonds or loans were issued
in the Eurodollar market. By 1988 over $721 billion worth of
securities and loans were made in the market.
Most Eurodollar trading occurs in what are known as offshore
havens. Typically these havens--located in places like Panama,
Hong Kong and the Bahamas--operate as a kind of capitalist utopia
for transnational corporations. Strict bank-secrecy laws protect
depositors from the prying eyes of tax collectors or foreign
investigators. Lax local regulations allow foreign banks to carry
on many activities--such as selling stocks and bonds--that may be
illegal or tightly regulated in their home countries. More
importantly, taxes are virtually non-existent.
Today, offshore havens manage over $5 trillion worth of assets-
-nearly the size of the U.S. gross national product for 1990. But
before the rise of the Eurodollar market, many of these havens
didn't exist or played only a minor role in international finance.
The Cayman Islands, for example, didn't set up shop as an offshore
center until the mid-'60s. But by 1990, the Caribbean nation was
home to over 500 banks from all over the world--including 46 of
the 50 largest--holding over $250 billion in assets.
BCCI was one of the banks that most profited from the rise of
offshore finance. It capitalized by setting up its headquarters
in Luxembourg, an offshore haven, and by establishing subsidiaries
in dozens of other havens. By 1990, for example, its Cayman
Islands subsidiary held over $7.5 billion worth of assets.
By the start of the '90s, BCCI and other banks that operated out
of the offshore financial havens played key roles in the new
economic order dominated by multinational corporations. As the
United States learned when it was forced to end fixed exchange
rates, the new global economic system was too powerful for any one
government to control. For BCCI, as well as for international
criminal elements, this was a dream come true.

PEEKABOO FINANCE: From the start, BCCI understood the beauty of
offshore finance. Operating out of regulation-free havens, BCCI
was able to embark on what international investigators have called
"the most complex deception in banking history." To hide the fact
that BCCI "may never have been profitable in its entire history,"
BCCI's auditors say that top executives used the offshore system
to set up "a massive and complex web of fictitious transactions."
Over a 15-year period, BCCI shuffled nearly $15 billion through
over 750 accounts. For example, after losing an astonishing $849
million speculating in U.S. Treasury bonds between 1979 and 1986,
BCCI executives simply parked the losses in its Cayman Islands
subsidiary, where bank regulators wouldn't find them. Then it
illegally shuffled new deposits through various havens to make it
look as if hundreds of millions of dollars worth of loans to BCCI
executives and large shareholders were being repaid. In fact,
they weren't. As Rep. Charles Schumer (D-NY) recently stated,
"BCCI fell between the international cracks."
These cracks are beginning to look more and more like canyons.
Law-enforcement experts say that offshore banks provide essential
financial services for many of the world's most profitable crimes,
including the drug business (in which $300 billion is laundered
worldwide each year, according to the State Department), tax fraud
(which, according to the Internal Revenue Service, totals $100
billion a year in the United States alone) and securities fraud
(which adds up to $10 billion annually in the United States,
according to a recent private study). Offshore banking also aids
the Mafia (which launders over $70 billion annually, according to
the FBI) and black-market arms traffickers. (Offshore bank
accounts were used in the Iran-contra affair, illegal arms sales
to Iraq and several recent illegal sales of technology used to
make nuclear bombs.) Furthermore, Sen. John Kerry (D-MA)
contends that "billions" looted from U.S. savings-and-loans ended
up in secret offshore accounts. Such accounts were also used by
the perpetrators of Watergate, as well as the recent scandals at
the Department of Housing and Urban Development and at the
As a full-service bank, BCCI diversified into almost all of
these criminal activities. But before exploring its role as a
"Bank of Crooks and Criminals International," it's worth
remembering that some of BCCI's largest crimes were quite legal--
at least in the context of the lawless offshore financial system.

A FREE LUNCH: Consider, for example, taxes. While Aziz Rehman
was carrying large bags of cash around Miami for BCCI, he noticed
that many of the bank's clients weren't interested in drugs or
arms or weird CIA plots. They simply wanted to avoid taxes. In
one case--uncovered by the U.S. Senate Subcommittee on Terrorism,
Narcotics and International Operations, which is headed by Sen.
Kerry--Modern Health Care had BCCI wire $20 million into an
account in the Caribbean.
"They got interest over there, and they never showed that
interest into the United States [for tax purposes]," Rehman
remembers. "That's why people deposit outside the United States.
But BCCI is by no means the only bank that has been involved in
tax fraud. Using offshore havens to avoid the IRS has become
standard operating procedure for many financial institutions. In
the mid-'70s, for example, while New York City was going broke and
drastically cutting social services, city officials charged that
Citibank had used offshore havens to avoid over $30 million in
taxes. In this case, Citibank created a series of fictitious
transactions that made it look as if its subsidiaries in America
and Europe were losing money. Then, the profits were recorded in
subsidiaries located in offshore havens. (A Reagan appointee to
the Securities and Exchange Commission eventually dropped charges
against the bank, explaining that he did "not subscribe to the
theory that a company that violates tax and exchange-control
regulations is a bad corporation.")
Foreign corporations have also used the offshore system to avoid
paying U.S. taxes. For example, the IRS claims that foreign
multinational corporations operating in the United States avoided
between $13 billion and $30 billion worth of U.S. taxes in the
The issue of tax fraud in the BCCI scandal has been virtually
ignored by the mainstream media, but it has had a horrifying
effect on the quality of life in America. Over time, the ability
of banks like BCCI to help corporations avoid taxes, has left a
big hole in local, state and federal budgets.
In 1950, when offshore finance and multinational production
didn't play a very important role in the world's economy, U.S.
corporations paid 26 percent of all state, local and federal
taxes. But by 1990, their share had dropped to only 8 percent.
Of course, offshore banking wasn't the only reason for this
decline--but it certainly helped. If U.S. corporations still paid
26 percent of all taxes, they would have paid an extra $329
billion in 1990 alone. This number is worth remembering when
people talk about BCCI as simply a case of bank fraud, far removed
from problems like poverty, bad schools or potholes.

| `Bank of Crooks and Criminals International' had |
| links to U.S. intelligence and Third World tyrants |
| |
| It's no wonder the Bank of Credit and Commerce |
| International (BCCI) is enmeshed in one of the |
| biggest financial scandals of the 20th century. A |
| list of BCCI's shareholders reads like a who's who of |
| corrupt Third-World elites. Most of them have a long |
| history of involvement in major arms deals or |
| corporate bribery scams. In addition, several key |
| BCCI insiders have extensive ties to Western |
| intelligence agencies. |
| These same figures helped loot the bank, receiving |
| hundreds of millions of dollars worth of loans that |
| were never repaid. |
| One major shareholder and a front man for BCCI's |
| illegal purchases of various American banks-- |
| including First American Bankshares in Washington, |
| D.C.--was Sheikh Kamal Adham, the brother-in-law of |
| the late Saudi King Faisal. During the `60s and |
| `70s, Kamal ran the Saudi equivalent of the FBI and |
| CIA. And like many members of the Saudi ruling |
| family, he often demanded commissions (a polite way |
| of saying bribe) from multinational corporations |
| operating around the mideast. |
| In the `50s and `60s, Kamal accepted kickbacks from |
| the Japanese in return for cheap oil. He also took |
| commissions for arms deals set up for Northrup and |
| two other U.S. arms dealers. In the '70s, according |
| to the "Wall Street Journal," he was paid "many |
| millions of dollars in commission" by Boeing to |
| persuade the Egyptians to buy its planes. |
| Besides his extensive ties to the U.S. arms |
| industry, Kamal maintained close ties to Western |
| intelligence agencies. In 1977, the "Washington |
| Post" described Kamal as the CIA's "liason man" in |
| the region and noted that Kamal had hired former CIA |
| station chief Raymond Close as an adviser. In the |
| late `60s, Kamal acted as the CIA's intermediary to |
| funnel payments to Anwar Sadat while Sadat was vice |
| president of Egypt. According to Larry Gurwin's 1990 |
| article in the business magazine "Regardie's," Kamal |
| channeled hundreds of millions of dollars to Egypt |
| after Sadat took power. These funds convinced Sadat |
| to expel Soviet military advisers in 1973 and to |
| establish a closer relationship with the United |
| States. |
| In Kamal's years as the head of Saudi intelligence, |
| he was responsible for a number of human rights |
| abuses, including torture and executions of political |
| opponents. Internal BCCI documents show that Kamal |
| received over $313 million in loans from BCCI, most |
| of which have not been repaid. |
| Other one-time BCCI shareholders with close |
| connections to the CIA and the Western arms industry |
| include Iran's now-ousted ruling family. Shah |
| Mohammed Reza Pahlevi, whose family held stock in |
| BCCI as late as 1978, was installed in power in 1953 |
| by a CIA-backed coup against Mohammed Mossadeq, who |
| had nationalized American oil companies. In the |
| `70s, before he was overthrown, the Shah purchased |
| billions of dollars worth of arms from American |
| companies. |
| Kuwaiti businessman Faisal Saud al Fulajj was a |
| small BCCI shareholder. According to the "Wall |
| Street Journal," he accepted over $300,000 in bribes |
| from Boeing while he was head of the Kuwait Airlines. |
| Fulajj was also one of seven men who received $47 |
| million in bribes to illegally act as a frontman for |
| BCCI's illegal and secret purchases of various |
| American banks, including First American. |
| Mohammed Irvani was another frontman with ties to |
| Western intelligence. He set up a consulting firm |
| with former CIA director Richard Helms in 1977. |
| Ali Mohammed Shorafa was a small BCCI shareholder |
| and yet another frontman in the First American |
| affair. According to columnist Jack Anderson and |
| "Regardie's" magazine, Shorafa financed a company |
| that received an exclusive contract to ship U.S. arms |
| to Egypt right after the Camp David accords. |
| Internal BCCI documents show that BCCI gave Fulajj at |
| least $113 million in loans and Shorafa $123 million |
| in loans. |
| Agha Hasan Abedi, BCCI's founder, kept close ties |
| to Pakistani military and intelligence officials. |
| Abedi hired a number of bank officials with links to |
| the Pakistani military or intelligence services. The |
| "Financial Times" of London has reported that the CIA |
| used BCCI to funnel payments to the Pakistani |
| military. Recently, the "Wall Street Journal |
| reported that one top Pakistani official who refused |
| to extradite Abedi to the United States to face |
| charges of fraud and larceny, "had received (from |
| BCCI) a monthly stipend, free travel, a home loan and |
| an expensive automobile." |
| Abedi was so close to Pakistani Dictator Zia al- |
| Haq, that Zia rushed to Abedi's bedside when the |
| banker had a heart attack. Zia's term in office |
| produced massive human rights violations and |
| continual allegations that top Kaistani officials |
| were involved in the lucrative heroin trade. Zia |
| overthrew the democratically elected government of |
| Zulfikav Ali Bhutto and executed Bhutto. |
| The U.S. government rewarded Zia's support for the |
| Afghan rebels with $2.1 billion worth of U.S. Agency |
| for International Development grants and hundreds of |
| millions of dollars in military aid. |
| The bin Mahfouz family--which owns Saudi Arabia's |
| largest bank--sold its 20 percent stake in BCCI in |
| 1990. The family also has a long history of |
| corruption and financial fraud. In the late `70s, |
| for example, the family teamed up with the Hunt |
| brothers, infamous Texas oil barons, in an illegal |
| attempt to manipulate the price of silver by |
| cornering the world silver market. The operation |
| nearly touched off a worldwide financial panic before |
| it was halted by U.S. regulators. More recently, the |
| bin Mahfouz family used BCCI as a private piggy bank, |
| receiving over $176 million in unsecured loans from |
| the bank. |
| Sheikh Zayed bin Sultan al-Nahyan, the ruler of Abu |
| Dhabi and head of the United Arab Emirates us BCCI's |
| largest shareholder. He rose to power in 1966 when |
| the British encouraged him to overthrow his brother, |
| Sheikh Shakbut, who provoked widespread unrest by |
| refusing to spend his oil revenues on various |
| development schemes. (Shakbut once justified his |
| policies by saying the oil companies needed the money |
| more than the citizens of his country did.) |
| Sheik Zayed proved to be the more enlightened |
| ruler, spending billions to establish a social |
| welfare state for the citizens of Abu Dhabi. But he |
| still treats Abu Dhabi's oil revenues (about $1 |
| billion a month) as personal income, using it to |
| build lavish mansions around the world. As a staunch |
| U.S. ally, he has spent billions on U.S. and European |
| arms. President Bush recently asked Congress to |
| approve another $648 million U.S. arms deal as a |
| reward for Sheik Zayed's staunch support for the U.S. |
| during the Iraq war. |

LOOTING THE THIRD WORLD: During the '80s, Americans weren't the
only ones faced with cuts in social services and declining
standards of living. Between 1980 and 1985, average incomes in
Latin America fell by 9 percent. Some heavily indebted countries
like Argentina (where incomes dropped 17.7 percent) and Bolivia
(down 29.4 percent) fared even worse.
But, as the average Latin American suffered, wealthy elites used
banks like BCCI to take hundreds of billions of dollars out of
their homelands. Court documents and Senate hearings show that
Panama's Manuel Noriega, Iraq's Saddam Hussein, the Philippines'
Ferdinand Marcos, Haiti's Jean-Claude Duvalier and other dictators
used BCCI to steal billions of dollars from native countries. The
BCCI affair illustrates how large multinational corporations have
established close financial and political ties with corrupt
Third-World elites, who used Western arms sales, political
repression and the CIA to maintain their power (see accompanying
story in box).
But in going after the capital-flight business, BCCI wasn't
doing anything out of the ordinary. Estimates of how much money
has been moved out of Third-World countries vary, but all of them
are alarming. Morgan Guarantee Trust, a U.S. financial
institution, estimates that local elites transferred over $200
billion out of the Third-World into the Western financial system
between 1975 and 1985. Other researchers have produced estimates
as high as $660 billion--equal to about half of all outstanding
Third-World debts. Morgan Guarantee notes that the ten most-
heavily indebted Latin American countries borrowed $375 billion
between 1975 and 1985. During that time, an amount equal to about
half of that borrowed money was siphoned out of these countries by
capital flight. Venezuela, for example borrowed $36 billion, but
had $41 billion leave the country.

BCCI'S PALS IN HIGH PLACES: Such huge debts have left many
Third-World countries dependent on the International Monetary
Fund, the World Bank, the U.S. government and various other
international development bodies. But these bodies have promoted
Third-World development strategies that stress foreign
investment--thus increasing the power of multinational
corporations. BCCI was one of the primary beneficiaries of such
The IMF, the World Bank and the U.S. government have supported a
number of projects to establish offshore havens. BCCI's most
notorious money-laundering operation occurred in Panama, where one
BCCI official says he acted as Manuel Noriega's "personal banker."
This, of course, wouldn't have been possible if a U.S. Agency for
International Development official hadn't helped Panama set up an
offshore haven in 1970.
BCCI also had large operations in virtually every Caribbean
offshore haven--and it established close ties to many Caribbean
governments. Internal BCCI documents show that the bank received
large deposits from virtually every central bank in the Caribbean
and from the Caribbean Development Bank (CDB), a regional lending
institution that is heavily funded by the United States. The CDB
has provided many loans to Caribbean countries who wanted to set
up tax-free industrial havens for multinational corporations.
But ties between BCCI and development agencies went far beyond
general policy discussions and the creation of offshore havens.
The "Wall Street Journal" noted recently that "[t]he U.S.
government was one of BCCI's biggest customers in Cameroon, with
$10 million in U.S. Agency for International Development accounts.
That is equal to about 5 percent of BCCI Cameroon's published
More importantly, "In These Times" has learned that the IMF
contacted officials at central banks in Brazil, Argentina and
Uruguay about BCCI's expansion into Latin America. The IMF also
gave BCCI advice on how the bank could expand its operations in
Bolivia, Chile, Peru, Colombia, Ecuador, Mexico and Venezuela.
The IMF further suggested that BCCI might get deposits from
central banks in Latin America if it established correspondent
bank relationships with these banks. (Correspondent banks provide
various financial services for each other, such as taking deposits
and wire transfers.) After it followed that advice, BCCI
eventually established banking relationships with central banks in
at least 30 countries around the world. Because of BCCI's
financial troubles, many of these banks may lose a large share of
the money they deposited with BCCI. One former World Bank and IMF
official has already been indicted by Peruvian officials for his
role in having Peru's central bank reserves deposited at BCCI.
BCCI put together other deals that involved the World Bank and
the IMF. According to "Time" magazine, BCCI intervened in a
dispute between the IMF and Jamaica over the country's inability
to pay its mounting debts. BCCI brokered a deal with the-lMF in
which BCCI agreed to provide a new $48 million loan to Jamaica.
Soon thereafter, Jamaica's central bank agreed to make large
deposits with BCCI.
One BCCI employee, Amjad Awan, also told Kerry subcommittee
investigators that the World Bank suggested BCCI provide a loan to
Bolivia. After BCCI provided the loan, which was guaranteed by
the World Bank, Bolivia's central bank began depositing money in

IN THE RED: Ironically, as the IMF and the World Bank were using
BCCI to help solve the debt crisis in several countries, BCCI was
engaging in a number of illegal transactions that actually
increased the debt various Third-World countries were paying.
Jack Blum, a former counsel for the Kerry subcommittee, claims
that BCCI became very active in "the business of brokering Third-
World debt." Many of these debts, which were in arrears, were
nearly worthless or were being sold by banks for about 20 cents on
the dollar to outside investors. Blum says that these investors
would contact BCCI, which would intervene with a Third-World
government. Under a scheme promoted by the IMF, the World Bank
and the United States, many governments would agree to pay back
all of the debt (not just the 20 percent that the investor had
paid for it), if the debt-purchaser would invest the money in the
debtor country or use the money to buy a company the country's
government was trying to sell.
But according to Blum, many investors made huge profits while
investing very little in Third-World nations. An example of such
a transaction can be found in Argentina. In the late '80s, BCCI
bought Argentinian debt for an unknown discount, then had the
Argentinian government redeem it at full value. It's unclear how
much BCCI paid for the Argentinian debt, which currently sells for
79 cents on the dollar. Assuming BCCI bought the debt at the
current rate (which is a very conservative guess), the bank would
have paid only $30 million for $38 million of debt, producing a
quick $8 million profit.
To hold up the bank's end of the deal, BCCI frontman Ghaith
Pharoan then agreed to invest $38 million in a hotel and farm in
Argentina. But according to the "New York Times," Pharoan only
invested about $10 million. Assuming, conservatively, BCCI made
an $8 million windfall on the deal, the bank, in effect, purchased
a $10 million hotel for $2 million. Argentina, on the other hand,
spent $38 million to redeem its debt and received only $2 million
in new investment money.
Jack Blum laid out BCCI's illegal Third-World debt operations in
an August 1991 testimony before the Kerry committee. The debt
scam, Blum pointed out, "is a very major business. I think it
runs to billions of dollars."
Yet, like many of the other multibillion-dollar economic scams
covered by this article, Blum's testimony attracted virtually no
press attention. Once again, the mainstream media's lack of
interest in larger economic issues led it to ignore a scandal that
has impoverished many Third-World countries.
BCCI is not the first scandal of its kind. In the early `80s,
the Vatican bank scandal produced widespread calls for a tougher
system of international bank regulations. But nothing was done.
As prosecutors sift through the wreakage of the BCCI affair,
banks like BCCI continue to use offshore havens to help
multinational corporations avoid taxes, and to aid corrupt Third-
World leaders in looting their countries. The international
financial system still operates outside the control of any real
government authority. BCCI will happen again.

George Winslow is a New York City freelance writer who regularly
covers white-collar crime and international finance.

In Part II, "In These Times" shows how larger economic issues shed
new light on BCCI's more notorious operations--the bank's ties to
the CIA, drug dealers, sleazy S&Ls, and influence peddlers.

daveus rattus

yer friendly neighborhood ratman


ko.yan.nis.qatsi (from the Hopi Language) n. 1. crazy life. 2. life
in turmoil. 3. life out of balance. 4. life disintegrating.
5. a state of life that calls for another way of living.

Article 1633 of misc.activism.progressive:
From: dave@ratmandu.corp.sgi.com (dave "who can do? ratmandu!" ratcliffe)
Newsgroups: misc.activism.progressive
Subject: will BCCI happen again? bank on it. (part 2 of 2)
Message-ID: <1991Dec5.000939.15744@pencil.cs.missouri.edu>
Date: 5 Dec 91 00:09:39 GMT
Sender: rich@pencil.cs.missouri.edu (Rich Winkel)
Followup-To: alt.activism.d
Organization: PACH
Lines: 613
Approved: map@pencil.cs.missouri.edu

The following is part two of a two-part series on BCCI.
Reprinted with permission of "In These Times."

Meanwhile, the Reagan and Bush administrations actively
obstructed a congressional investigation of the scandal. A Senate
subcommittee chaired by Sen. John Kerry (D-MA) has been
investigating BCCI for several years. From the start, the
subcommittee encountered resistance from the administration. For
example, the Justice Department ordered key witnesses not to
cooperate with Kerry. The department also refused to produce
documents subpoenaed by the subcommittee.
But these machinations are only part of a much larger political
scandal--the growing political power of financial institutions
over every aspect of the American political system. Over the past
decade, securities firms, major banks, insurance companies and
other financial institutions have given more money to Congress
than any other industry.

from the October 30-November 5, 1991 issue of "IN THESE TIMES":
New capitalism: bank fraud, drug trade, espionage
By George Winslow

In its October 23 issue, "In These Times" began a two-part
series on the broader economic and social issues of the BCCI
affair. Author George Winslow argued that the real scandal
was not a lone wayward bank, but a world financial system
out of control. Winslow examined how, during the past two
decades, multinational corporations rose to global economic
dominance. He then documented the way in which operations
like BCCI use "offshore havens" to do these corporations
Such havens--located in places like Panama, Hong Kong and
the Bahamas--free corporations from the taxes, oversight and
laws of their home countries. They also help Third-World
leaders loot their own nations, thus increasing those
countries debts and putting further strain on the shaky U.S.
economy. No matter what happens in the ongoing BCCI
investigation, Winslow concluded, the offshore financial
system that spawned the bank still operates outside of the
control of any real government authority. "BCCI will happen
again," he wrote.
In the following story, Winslow examines how larger economic
issues shed new light on BCCI's more notorious operations--
the bank's ties to the CIA, drug dealers, sleazy S&Ls and
influence peddlers.

EVEN IN MIAMI, WHERE EXCESS HAS BECOME a fine art, David Paul, the
chairman of CenTrust Savings Bank, stood out from the pack. Paul,
who raised lots of money for top Democratic Party politicians,
used bank funds to buy a $13 million Rubens that he hung in his
opulent estate and insisted that his $7 million yacht be built
with 14 carat gold nails.
But by the late '80s, Paul was in trouble. CenTrust, like many
other S&Ls, had suffered huge losses by speculating in securities
and junk bonds. For years he had hidden the losses with
accounting tricks that were legalized by Congress and the Reagan
administration. But, as the public began howling about fraud in
the S&L industry, bank regulators ordered Paul to make the losses
public, a move that threatened to ruin his bank.
To buy time, Paul used his political clout to arrange meetings
with top regulators in the Reagan administration. At the
meetings, Paul introduced Ghaith Pharaon, a wealthy Saudi
financier who had already bought 25 percent of CenTrust. Paul
implied that Pharaon and his wealthy Saudi friends planned to save
the bank.
Impressed with this display of wealth, regulators let CenTrust
stay in business. CenTrust lost more money and Paul kept throwing
lavish parties--at one $122,000 affair he flew six famous chefs
first class from the United States to France. When bank
regulators finally shut down CenTrust in 1990, taxpayers got stuck
with a bill for $2 billion.
The CenTrust fiasco took place in Florida and Washington--half-
way around the world from Abu Dhabi, where a number of Bank of
Credit and Commerce International (BCCI) executives are now under
house arrest. But the CenTrust affair illustrates how the sun
never sets on the new world of bank fraud. Ghaith Pharaon--the
wealthy Saudi financier who was supposed to save CenTrust--was
simply one of the front men that BCCI used to secretly buy and
loot at least four American banks.

THE PRICE WE PAY: The "New York Times" recently assured its
readers that many of BCCI's crimes would have little effect on
Americans. "[The] money laundering and other corruption at BCCI
occurred largely overseas. ... The criminals and most, if not
all, of the victims of BCCI's scams were foreigners," the "Times"
But that is not at all the case--and in this article, "In These
Times" will examine how and why. Many of BCCI's alleged crimes,
such as its involvement in the S&L scandal, were conceived in the
United States--and most of the bank's foreign criminal activity
would not have been possible without the complicity of American
business and government.
Today, it would be hard to find an American who hasn't been
victimized by BCCI. Taxpayers have spent billions of dollars, and
may have to spend billions more, to bail out banks looted by BCCI
and its clients. Financial services provided by BCCI and other
banks helped international drug traffickers bring tens of billions
of dollars worth of illegal narcotics into the United States.
Arms transactions financed or administered by BCCI accelerated a
Mideastern arms race that helped trigger the U.S.-Iraqi war. And
BCCI was not the only major financial institution to profit from
bank fraud, arms deals and drug smuggling. These problems--and
the financial system that nourishes them--will continue.

SECRET INVASION: Only five years after being founded in the Third
World, BCCI began its invasion of America. In 1977, several of
BCCI's largest shareholders launched a hostile bid for the largest
bank in Washington, D.C., Financial General Bankshares (now called
First American Bankshares). There were problems from the start.
A number of the investors were simply BCCI front men, many of them
with long histories of involvement in corporate bribery scandals.
A Securities and Exchange Commission (SEC) investigation into the
deal uncovered a wide range of illegal securities transactions.
Normally these violations would have disqualified potential
investors from handling billions of dollars in federally insured
deposits. But BCCI's high-powered legal team, headed by Clark
Clifford--a former secretary of defense and adviser to four
presidents--convinced the Federal Reserve Board to approve the
deal on the condition that BCCI would not control the bank. It
was a condition BCCI ignored from the start. Over the next
decade, BCCI also used Ghaith Pharaon as a frontman to secretly
acquire a minority stake in CenTrust, as well as controlling
interests in the National Bank of Georgia and the Independence
Bank of Encino, Calif. As with its secret purchase of First
American Bankshares, BCCI shifted money through a bewildering
array of offshore havens to convince regulators that the banks
were being bought by wealthy Arabs with lots of cash. In fact,
the real owner was BCCI.
Then, BCCI used the same system of offshore finance to loot the
banks. For example, soon after BCCI lost over $849 million
speculating in U.S. Treasury bonds, BCCI executives had First
American Bankshares (FAB) pay $220 million for Ghaith Pharaon's
shares in National Georgia Bank. According to the "Wall Street
Journal," FAB paid between $20 million to $60 million more than
any other bank was willing to pay. The deal had the effect of
transferring $220 million from a very solvent bank, FAB, to
Pharaon and BCCI at a time when the latter two were in deep
financial trouble.
Today, the effects of BCCI's involvement are plain. FAB, once a
solvent, well-capitalized commercial bank, is in dire financial
straits. Recently regulators gave FAB, which lost $182 million in
1990, a rating of "four." Five means the banks is broke and
should be shut down: one is an excellent rating. The $11 billion
bank, which now has $469 million worth of bad loans, could easily
cost U.S. taxpayers billions of dollars if it collapses.

NEW RULES: More importantly, the FAB fiasco illustrates how the
new world of international finance has affected the American
banking industry. The increasingly unregulated international
financial system of the '70s and American financial system as
This deregulation dramatically changed the structure of American
finance (see "In These Times," Oct. 2). For the first time since
the Depression, banks were allowed to expand their operations into
the insurance and securities markets. Savings-and-loan
associations were permitted to make speculative investments in the
commercial real-estate market--a practice that ruined many S&Ls.
Large corporations, which had once raised most of their short-term
debt from commercial banks, now turned to foreign banks and Wall
Street firms. Securities firms such as Merrill Lynch offered
certificates of deposit--encroaching on a traditional market of
banks--and channeled tens of billions of dollars into shady S&Ls.
Finance companies--especially subsidiaries of large auto makers--
stepped onto another traditional turf of the banking industry the
auto-loan market. Sears and other retailers. which were once
content to sell power tools and lawn chairs, began peddling credit
cards and stocks.
These changes not only increased competition among financial
institutions, but also reduced profits and led to increasingly
speculative investments. Deregulation led to a decade of
financial fraud and mismanagement. Like BCCI, some S&L owners
used secret bank accounts in offshore havens to hide their
ownership or to embezzle millions of dollars.
Federal authorities made it easier for investors to buy banks,
allowing many shady financiers to move into the industry. Many of
these financiers, such as Charles Keating and David Paul, set up
elaborate business and political ties with BCCI's clients,
advisers and shareholders. These ties show that BCCI was not
simply a foreign problem--and that the S&L scandal goes far beyond
U.S. borders. In the '80s, high-flying institutions like BCCI and
CenTrust became magnets for con artists of all kinds.

BCCI AND THE S&L SCANDAL: For example, Charles Keating and his
thrift, Lincoln Savings and Loan, invested millions of dollars in
Trendinvest, an offshore company that speculated in foreign
currencies. According to the "Wall Street Journal," Lincoln
suffered "large losses" from trades made at Trendinvest and
"lawyers representing investors ... defrauded by Mr. Keating . .
. accuse him of shifting money overseas through such mechanisms as
foreign exchange losses."
A BCCI executive, Alfred Hartmann, served on Trendinvest's board
of directors and advised Keating on the foreign-exchange
transactions. In 1989, Lincoln Savings and Loan filed for
bankruptcy--a move that cost taxpayers over $2.5 billion.
Another notorious S&L con artist is Herman Beebe. Beebe had a
history of bank fraud as well as alleged business ties to the
Mafia--which would normally have prevented him from buying a bank.
But in the '80s world of deregulated banking, Beebe was able to
secretly buy and loot at least 100 S&Ls.
Beebe's exploits are documented in the book, "Inside Job: The
Looting of America's Savings and Loans," by Stephen Pizzo, Mary
Fricker and Paul Muolo. According to the authors, one of Beebe's
closest business associates, Ben Barnes, set up partnership with
John Connally, the former governor of Texas. The partnership
borrowed money from at least 17 S&Ls. But the partnership failed
to pay back many of the loans, due to the real-estate crash.
Connally, a one-time US. treasury secretary, was forced into
In the late '70s, Connally owned a Texas bank with BCCI front
man Pharaon, according to Stephen Fay's book, "Beyond Greed: The
Hunt Family's Bold Attempt to Corner the Silver Market." Connally
introduced the bin Mafouze family, BCCI's second-largest
shareholder, to the Hunt brothers, the infamous oil barons who
lost their $10 billion fortune trying to illegally manipulate the
world's silver market. The bin Mafouze family and Pharaon
invested in the Hunt scam and suffered huge losses.
Through Pharaon and CenTrust, the BCCI connection also leads
back to the biggest con artists of the S&L scandal--Michael Milken
and his firm, Drexel Burnham Lambert. The Federal Deposit
Insurance Corporation (FDIC) has charged that Milken, Drexel,
CenTrust's Paul and BCCI rigged a sale of $150 million worth of
junk bonds to make it appear as if CenTrust had raised more
capital than it actually had.
More importantly, a $6.8 billion suit filed by the FDIC alleges
that Milken, Drexel, Keating and Paul set up a network of junk-
bond buyers at CenTrust and other S&Ls who "wilfully, deliberately
and systematically plundered certain S&Ls." This network used
"illegal and manipulative secretive trading activities" to trade
bonds back and forth to each other, creating "an illusion of an
efficient, growing and liquid market for junk bonds."
In other words, the FDIC believes that the network created a
bogus market for junk bonds that artificially inflated the prices
for these bonds. When the market finally collapsed, many S&Ls
such as CenTrust, went broke, costing taxpayers at least $6

HOOKED ON DRUG MONEY: Financial crime, however, wasn't the only
toxic byproduct of global financial deregulation. The authors of
"Inside Job" have noted that organized crime groups produced tens
of billions of dollars worth of revenue each year. These criminal
organizations needed financial institutions to launder their
profits: "Thrift deregulation fulfilled ... those needs nicely.
... Not only had the rules been drastically eased, but the cops
[thrift examiners] were no longer much of a threat, their ranks
having been gutted after state and federal deregulation."
Financial pressures also forced many banks to turn a blind eye
toward money laundering. Faced with declining profits, bad
Third-World debts and increased competition, banks needed new
deposits and customers.
Handling drug money had been illegal in the United States since
the Bank Secrecy Act of 1970. But, in practice, the rewards often
exceeded the penalties. Between 1970 and 1985, only two thrifts
were fined for money laundering. And a federal crackdown on money
laundering in the mid-'80s produced only $21 million worth of
fines against 44 banks--a small portion of the $50 billion to $100
billion worth of drug money laundered through American banks each
year. BCCI was one of the banks that capitalized on this booming
industry. Like many other financially troubled institutions,
drug-cartel deposits helped BCCI hide its losses and keep growing.
Naturally, BCCI executives worked very hard to keep their
customers happy.
Panamanian dictator Manuel Noriega, for example, received
millions of dollars in kickbacks from the Medellin drug cartel.
When Noriega set up a $25 million account with BCCI, bank
executives issued him credit cards for his wife and mistress.
They booked him into posh New York City hotels and they took him
on shopping sprees at the city's largest department stores where
Noriega ran up as much as $100,000 worth of credit-card bills.
Noriega is believed to have laundered at least $90 million through
In other cases, BCCI actually helped drug dealers set up
sophisticated laundering systems. For example, when a U.S.
undercover agent, Robert Musella, began depositing money from the
Medellin cartel at BCCI, the bank sent Musella to Europe for a
kind of seminar in laundering. Then, BCCI set up a Byzantine
system of offshore corporations and banks that Musella used to
launder $16 million in drug money.
Here, BCCI's skill at manipulating the deregulated U.S. banking
industry played a key role. At least some of the drug money that
Musella was laundering for the Medellin cartel made its way
through First American and other banks secretly controlled by
BCCI, according to House Banking Committee investigators.
BCCI taught Musella so much about the secret world of money
laundering that government investigators were able to indict 85
people and launch investigations into the activities of 41 major
banks, including Bank of America. BCCI eventually paid a $15
million fine, only a small part of the profits it made from
laundering over $1 billion worth of drug money for the Medellin
cartel in the '80s.
But while the mainstream media has focused on BCCI as a full-
service bank for drug dealers, media reports have paid very little
attention to money laundering by other major banks. For example,
Bank of America was hit with a $4.75 million fine for money
laundering in 1986. It was the largest money-laundering fine
until the BCCI case. Yet two years later, the financially
troubled Bank of America was still laundering money.
In 1989, U.S. investigators cracked an operation that used
jewelry stores, BCCI and many other banks to launder over $12
billion in cocaine profits for the Medellin cartel. Major banks
that accepted cash deposits from the drug-money-laundering
organization included Bank of America ($32 million), Republic
National Bank ($185 million), American Express Bank ($11 million),
Citibank ($63 million), and Extebank ($138 million). (BCCI, which
received a $13 million wire transfer from the Bank of New York,
was a relatively minor player in this scheme.)

DRUGS, GUNS AND IDEOLOGY: BCCI's money-laundering activities also
have a political context that has been largely ignored by the
mainstream media. Over the last decade, the Reagan and Bush
administrations have attempted to portray the war against drugs as
a Cold War crusade. By attacking "narco-terrorists," Reagan
attempted to link Latin American revolutionaries and Latin
American drug traffickers--thus justifying, for example, U.S.
military intervention in Nicaragua. Likewise, Bush recently sent
military advisers to Peru to fight left-wing guerrillas involved
in the drug trade.
But, in fact, billionaires who run the drug cartels are hardly
left-wing rebels. They are a lot like most wealthy Third-World
elites who use terror and illegal arms deals to maintain their
In 1989, for example, Colombian officials raided the farm of
Gonzalo Rodriquez Gacha, one of the founders and a top leader of
the Medellin drug cartel. Here they found hundreds of assault
rifles that had been imported from the Israel Military Industries,
the state-owned arms manufacturers.
They also found a bizarre home video. It showed members of the
cartel at a paramilitary training camp attacking a mock village
and firing their guns into homes. The men were screaming
"Communist guerrillas, we want to drink your blood"--hardly a
slogan that Marxist revolutionaries would use.
The weapons, Colombian officials soon discovered, had been used
to assassinate a number of union leaders attempting to organize
workers at large farms owned by the cartel. The paramilitary
camp--backed by the Colombian military and financed by the
cartel--trained Colombian death squads. The camp had been set up
by Israeli arms dealers and former military officers.
One officer, Lt. Col. Amatzia Shuali had trained military
officers in Guatemala and Nicaraguan Contra rebels in Honduras.
At the camp, members of the cartel learned how to make bombs that
had been used to blow up a Colombian airliner with 117 passengers.
This horrifying affair has been virtually ignored by the
American media and it has not been covered in any of the articles
on BCCI. Yet "In These Times" has learned that U.S. government
investigators are probing allegations that BCCI had ties to
several of the people who set up the camps. BCCI had a large
number of branches in Colombia that were used by the cartels, and
druglord Gacha was a BCCI customer.
More importantly, the case illustrates how Cold War politics
have corrupted the war on drugs. In Colombia, this policy had
disastrous effects. After the discovery of one cocaine lab, U.S.
officials claimed the drug trade was being run by the guerrillas.
The charge was later proven false. In fact, the Colombian
military was aligned with the drug dealers. One of the front
companies used to set up the death-squad camps was actually owned
by the Colombian minister of defense. As a result, millions of
dollars in U.S. aid, earmarked for the war on drugs, was actually
going to fight the guerrillas.

OFFSHORE A-BOMB INDUSTRY: Guns for the drug cartels represented
only a small part of BCCI's arms supermarket. BCCI was involved
in the sale of guns to the Contras and the CIA-backed Afghan
rebels. Gun dealers hired by the National Security Council's
Oliver North used the bank to illegally sell tow missiles to Iran
during the Iran-contra affair. And the banks provided financial
services for Silkworm missiles sold to Saudi Arabia, Scud-B
missiles bought by Syria, weapons purchased by the Abu Nidal
terrorist group, Mirage Jets acquired by India and helicopters
sold to Guatemala.
Some of the most terrifying deals apparently involved atomic
bombs. Sen. Alan Cranston (D-CA), has alleged that BCCI was
involved in programs by Argentina, Libya, Pakistan and Iraq to
build atomic bombs. In addition, former Senate investigator Jack
Blum says that Munther Bilbeisi, an arms dealer "whose brother was
a [BCCI] branch bank manager" and a "major" BCCI customer, was
involved "in an effort to sell enriched uranium from South Africa
to the Middle East."
In each case, arms dealers obtained export licenses under the
pretext of shipping arms to a given country. But the arms would
never arrive at their official destination. Instead using a
system of dummy corporations and secret bank accounts at
unregulated offshore havens, the dealers were able to illegally
ship the materials to their real destination.
So far, the "Washington Post" has been the only major paper to
explain that the "global banking system ... makes it relatively
easy to finance cross-borders smuggling of sensitive nuclear
technology." This is partly because "international banks ...
are under no obligation to check whether the materials being
transported are legal."

BCCI AND THE CIA: More importantly, very few media reports have
put BCCI's arms sales in a larger context of American foreign
policy and covert operations.
The congressional Iran-Contra committee noted that then-CIA
director William Casey "wanted to establish an offshore entity
capable of conducting operations in furtherance of U.S. foreign
policy that was `stand-alone'--financially independent of
appropriated funds, and, in turn, congressional oversight."
Like the transnational corporations that created the offshore
financial world to avoid government control, the CIA was able to
use BCCI and the offshore financial system to set up its own
unregulated, private, foreign-policy apparatus. In this way, it
could ignore Congress, which had outlawed aid to the White House-
backed Nicarguan Contra rebels, and public opinion, which was
opposed to U.S. military intervention in the region.
Countries that agreed to cooperate with this "secret
government"--including Panama, Israel, Saudi Arabia and other Gulf
states--received billions in U.S. aid and arms during the '80s.
Arms dealers and banks like BCCI profited from the deals by
charging huge fees and by receiving official protection for some
of their illegal operations, such as drug smuggling.
BCCI's history, structure and expertise made it a perfect
vehicle for the secret government's covert operations. Set up as
an offshore bank, BCCI operated out of unregulated financial
havens where covert operations could be easily hidden. Like many
other corrupt Third-World elites, BCCI's shareholders also had a
long history of ties to Western arms dealers and intelligence
Panama's Manuel Noriega was an important figure in the secret
scheme to illegally fund the Contras. Jose Blandon, a former
Noriega aide, claims that the CIA advised Noriega to use BCCI as
his bank. Various published sources say that the CIA was
depositing as much as $200,000 a year in Noriega's account at
BCCI. Noriega, in turn, helped Oliver North set up dummy
corporations and secret bank accounts that were used to finance
the Contras.
Israel also played a key role. Israel shipped Noriega more than
$500 million worth of arms during the '80s, supplied the Contras
with guns and helped sell weapons to Iran in the Iran-Contra
affair. BCCI is known to have worked with Israeli officials on
several arms deals during this period. The bank also provided
financing for a number of arms shipments to Iran in the Iran-
Contra affair. Another country that acted as a CIA proxy in
Iran-Contra was Saudi Arabia, which gave the Contras at least $22
The Saudis also provided CIA-supported rebels fighting the
Soviet-backed Afghan government with about half of their funds.
BCCI's longstanding ties to Pakistan's military and to the Saudi
royal family made the bank a logical choice to funnel CIA aid in
Afghanistan. Recently, Pakistan's finance minister, Sartaj Aziz,
told the "Financial Times" that BCCI was used by the CIA to direct
arms and money to the Afghanistan rebels. The official also said
that U.S. intelligence agencies had set up a slush fund for
Pakistani military leaders who helped the Afghan resistance.
During the same interview, the finance minister claimed drug
traffickers in the region had used BCCI to launder profits from
sales of heroin. Furthermore, it's clear that the Afghan rebels
sold drugs to buy arms. ("We i must grow and sell opium to fight
our holy war," a rebel commander once told the "New York Times.")
And the CIA may have been involved. "In These Times" has learned
that government investigators are probing allegations that one CIA
official supervised the BCCI-financed shipment of drugs and arms
through Pakistan.

BANKING ON WAR: But getting rid of BCCI won't hinder those
government officials who, like William Casey and Oliver North, are
determined to undermine American democracy. It's important to
remember that the CIA has used banks like BCCI for decades.
During the '60s, '70s and '80s, for example, the CIA laundered
money for coups and covert operations through the Castle Bank in
the Bahamas, the World Finance Corporation in Florida and the
Nugan Hand Bank of Australia. Like BCCI, these banks had ties to
organized crime figures, drug dealers and spies. Like BCCI, they
all had links to American banking and S&L scandals. And like
BCCI, fraud and speculative investments by top executives forced
all three banks out of business.
More recently, the CIA had ties with 22 failed thrifts that
loaned money to people involved in "gun running, drug smuggling,
money laundering and covert aid to the Nicaraguan Contras,"
according to the "Houston Post."
Over time, the booming CIA-backed arms trade has produced big
profits for arms dealers and banks like BCCI. But these black-
market sales have also touched off a terrifying arms race in the
Third World.
Consider, for example, the role that BCCI and many other banks
played in a secret operation to build up Saddam Hussein's military
might. Last summer, a joint investigation by ABC's "Nightline"
and the "Financial Times" concluded that "Robert Gates was deeply
involved as deputy director of the CIA in a major covert operation
that funneled weapons and technology to Iraq. ... The CIA's
covert shipments put into Saddam Hussein's hand some of the most
dangerous battlefield weapons in the world."
To carry out these shipments, Gates--now the CIA director-
designate--allegedly met with Carlos Cardoen, the head of
Industrias Cardoen. This Chilean company, which was the largest
private supplier of weapons to Iraq, shipped more than $500
million worth of weapons to Iraq in the '80s (see "In These
Times," April 17 and Oct. 9).
Industrias Cardoen is licensed to build and ship high-tech
artillery guns created by arms dealer Gerald Bull and ArmsCor, an
arms manufacturer owned by the South African government.
In 1990, Gerald Bull was assassinated, allegedly by Israeli
agents because he was working with Saddam Hussein to build a
"supergun" capable of firing nuclear and chemical weapons. Bull,
an expert on advanced artillery, had a long history of illegal
arms sales. In the late '70s, a congressional staff report found
that Bull had conspired with CIA agents to break the U.S. arms
embargo against South Africa by shipping technology that allowed
ArmsCor to develop sophisticated artillery guns.
In 1990, the Inter Press news service reported that over 200 of
these guns had been sold by Cardoen and ArmsCor to Iraq. At least
50 to 70 had been sold to the United Arab Emirates, which is
headed by BCCI's largest shareholder.
BCCI enters this affair in two ways. In August, Britain's
"Independent" newspaper alleged that BCCI had helped Bull's
company, Space Research, smuggle propellant for Hussein's supergun
from Belgium to Iraq. The story, largely ignored in the United
States, also reported that "a former deputy prime minister [Andre
Cools] of Belgium was killed days after being given BCCI bank
statements alleging bribes were paid to beat the arms embargo" to
BCCI also loaned at least $72 million to the Atlanta branch of
the Banca Nazionale del Lavoro (BNL)--Italy's largest bank. This
BNL branch loaned Iraq over $4 billion between 1985 and 1989 and
provided financial services that allowed Hussein to illegally buy
hundreds of millions of dollars worth of arms and military
supplies. The BNL branch didn't have enough money to take on such
large loans, so it illegally financed them by borrowing money from
banks like BCCI. The House Banking Committee says that Bull's
Space Research Corporation was one of the companies that received
illegal financing from BNL for Iraq's weapons program.
Such deals helped keep Hussein in power and dramatically
increased the political tensions throughout the Mideast.
Confident that the arms would keep flowing, Hussein invaded Iran
in 1980 and Kuwait a decade later--conflicts that cost more than a
million lives.
But in providing financial services to Saddam Hussein, BCCI was
not alone. In the BNL affair, for example, Bank of America
transferred $72 million between BCCI and BNL. J.P. Morgan, a
major New York bank, acted as a clearing agent for BNL in the
loans to Iraq. And many large European corporations provided the
technology and weapons.

A WHITEWASH? Fraud at BCCI burst into the headlines when bank
regulators around the world shut down the bank this past July.
But like the S&L scandal--which wasn't discovered by the
mainstream media until hundreds of billions of dollars had been
lost--warning bells at BCCI had been going off for well over a
decade. As early as the late '70s, British and American
regulators were so worried about the bank's operations that they
denied BCCI key regulatory licenses to expand its operations. Yet
BCCI marched on, illegally buying American banks and stealing
deposits to cover its huge losses.
Meanwhile, the Reagan and Bush administrations actively
obstructed a congressional investigation of the scandal. A Senate
subcommittee chaired by Sen. John Kerry (D-MA) has been
investigating BCCI for several years. From the start, the
subcommittee encountered resistance from the administration. For
example, the Justice Department ordered key witnesses not to
cooperate with Kerry. The department also refused to produce
documents subpoenaed by the subcommittee.
But these machinations are only part of a much larger political
scandal--the growing political power of financial institutions
over every aspect of the American political system. Over the past
decade, securities firms, major banks, insurance companies and
other financial institutions have given more money to Congress
than any other industry.
For example, the Center for Responsive Politics estimates that
in the 1988 election, political action committees (PACs) for the
finance, insurance and real-estate industries gave over $27
million to congressional candidates. That's about 26 percent of
all business PAC contributions. Common Cause estimates that
between 1983 and 1988, the S&L industry gave $11.6 million to
Congress and party committees.
Despite a decade of financial scandals, this well-oiled lobbying
machine has defeated every major attempt to enact tough new U.S.
regulations over the financial system.
In BCCI's case, the result has been a better cover-up than
anything Oliver North ever concocted. Washington's inaction has
allowed BCCI to continue exploiting an obsolete U.S. regulatory
system that was set up in the
Some reforms may yet come out of the BCCI scandal--but Congress
and the White House show little interest in fundamental change.
In fact, the mood in Washington is for more deregulation, not
less. Sometime this year or next year, Congress is likely to pass
White House-sanctioned legislation that will further deregulate
the banking and financial industry (see "In These Times," Oct. 2).
This legislation, which gives banks new freedom to buy insurance
companies and set up shop on Wall Street, is designed to help
American banks compete in the international financial system. But
by reducing government control, the legislation would simply give
multinational corporations more power over the world's economy.
Bringing these corporations under control won't be easy.
Congress could pass laws putting banks out of business if they
launder criminal money, and it could impose tough economic
sanctions on offshore havens that refuse to cooperate with U.S.
regulations and investigations.
But tough U.S. laws might simply convince financial institutions
to move their operations overseas, putting many Americans out of
work and making it harder to finance this country's chronic
government deficits. It took a group of regulators from five
major capitalist companies to shut down BCCI this past summer. It
will take many countries, acting together, to bring the system
that created BCCI under control. Given the current political
climate, that is unlikely.

George Winslow is a New York City freelance writer who regularly
covers white-collar crime and international finance.

daveus rattus

yer friendly neighborhood ratman


ko.yan.nis.qatsi (from the Hopi Language) n. 1. crazy life. 2. life
in turmoil. 3. life out of balance. 4. life disintegrating.
5. a state of life that calls for another way of living.


See below for Pakistani site on BCCI

BCCI: Pakistan's International Bank

BCCI: Pakistan's International Bank

The Bank of Credit and Commerce International (BCCI), a major international bank founded in 1972 by Agha Hasan Abedi (creator of UBL), a Pakistani financier. Registered in Luxembourg, with its head office in London and main operations running in Karachi, Abedi with his large number of Pakistanis in the field of international banking led the bank to become a global juggernaut with almost 80 per cent of the BCCI's top executive positions at the head office and in branches in various countries were held by Pakistanis.

BCCI had an interesting structure. It was an elaborate corporate tangle, with BCCI's founder, Agha Hasan Abedi and his assistant, Swaleh Naqvi, in the center. This convoluted structure was an essential component to its amazing growth – and guaranteed its eventual collapse. The structure was conceived of by Abedi for the specific purpose of evading regulation or control by governments.

ISI had a large hand in developing and running the bank and used it for financing amongst many things Nuclear armament of pakistan, financing mujahideen and other such endeavors around the world. From CIA to Abu Nidal, all and everyone had an account with BCCI and it become the 7th largest bank on the world.

Unfortunately its amazing growth, coupled with its links with terrorist and nuclear armament caused it to be shut down by an american committee led by John Kerry. The final nail in the coffin came when BCCI acquired an american bank and the americans were not happy with a Pakistani Conglomerate running worldwide finance.

BCCI, AQ Khan and many other pakistani ventures made the west suspicious of Pakistani's and they were kept away from higher tier banking, science and other institutions.

Just like today when pakistani financiers are not allowed to buy stock in US and many other wester countries, hindering progress and development.

Head Office in Pakistan Karachi

Conference Hall in Karachi

It was shut down in 1990. Abedi died in Karachi in 1995.


The Secret Financial Network Behind "Wizard" George Soros

The Secret Financial Network Behind "Wizard" George Soros
by William Engdahl
EIR Investigation Executive Intelligence Review (EIR), November 1, 1996
The dossier that follows is based upon a report released on Oct. 1 by EIR's bureau in Wiesbaden, Germany, titled "A Profile of Mega-Speculator George Soros." Research was contributed by Mark Burdman, Elisabeth Hellenbroich, Paolo Raimondi, and Scott Thompson.
Time magazine has characterized financier George Soros as a "modern-day Robin Hood," who robs from the rich to give to the poor countries of eastern Europe and Russia. It claimed that Soros makes huge financial gains by speculating against western central banks, in order to use his profits to help the emerging post-communist economies of eastern Europe and former Soviet Union, to assist them to create what he calls an "Open Society." The Time statement is entirely accurate in the first part, and entirely inaccurate in the second. He robs from rich western countries, and uses his profits to rob even more savagely from the East, under the cloak of "philanthropy." His goal is to loot wherever and however he can. Soros has been called the master manipulator of "hit-and-run capitalism."
As we shall see, what Soros means by "open," is a society that allows him and his financial predator friends to loot the resources and precious assets of former Warsaw Pact economies. By bringing people like Jeffrey Sachs or Sweden's Anders Aslund and their economic shock therapy into these economies, Soros lays the groundwork for buying up the assets of whole regions of the world at dirt-cheap prices.
The man who broke the Bank of England?
An examination of Soros's secretive financial network is vital to understand the true dimension of the "Soros problem" in eastern Europe and other nations.
Following the crisis of the European Exchange Rate Mechanism of September 1992, when the Bank of England was forced to abandon efforts to stabilize the pound sterling, a little-known financial figure emerged from the shadows, to boast that he had personally made over $1 billion in speculation against the British pound. The speculator was the Hungarian-born George Soros, who spent the war in Hungary under false papers working for the Nazi government, identifying and expropriating the property of wealthy fellow Jews. Soros left Hungary after the war, and established American citizenship after some years in London. Today, Soros is based in New York, but that tells little, if anything, of who and what he is.
Following his impressive claims to possession of a "Midas touch," Soros has let his name be publicly used in a blatant attempt to influence world financial markets---an out-of-character act for most financial investors, who prefer to take advantage of situations not yet discovered by rivals, and keep them secret. Soros the financier is as much a political animal, as a financial speculator.
Soros proclaimed in March 1993, with great publicity, that the price of gold was about to rise sharply; he said that he had just gotten "inside information" that China was about to buy huge sums of gold for its booming economy. Soros was able to trigger a rush into buying gold, which caused prices to rise more than 20% over four months, to the highest level since 1991. Typically for Soros, once the fools rushed in to push prices higher, Soros and his friend Sir James Goldsmith secretly began selling their gold at a huge profit.
Then, in early June 1993, Soros proclaimed his intent to force a sell-off in German government bonds in favor of the French, in an open letter to London Times Financial Editor Anatole Kaletsky, in which Soros proclaimed, "Down with the D-Mark!" Soros has at various times attacked the currencies of Thailand, Malaysia, Indonesia, and Mexico, coming into newly opened financial markets which have little experience with foreign investors, let alone ones with large funds like Soros. Soros begins buying stocks or bonds in the local market, leading others to naively suppose that he knows something they do not. As with gold, when the smaller investors begin to follow Soros, driving prices of stocks or whatever higher, Soros begins to sell to the eager new buyers, cashing in his 40% or 100% profits, then exiting the market, and often, the entire country, to seek another target for his speculation. This technique gave rise to the term "hit and run." What Soros always leaves behind, is a collapsed local market and financial ruin of national investors.
The secret of the Quantum Fund NV
Soros is the visible side of a vast and nasty secret network of private financial interests, controlled by the leading aristocratic and royal families of Europe, centered in the British House of Windsor. This network, called by its members the Club of Isles, was built upon the wreckage of the British Empire after World War II.
Rather than use the powers of the state to achieve their geopolitical goals, a secret cross-linked holding of private financial interests, tied to the old aristocratic oligarchy of western Europe, was developed. It was in many ways modeled on the 17th-century British and Dutch East India Companies. The heart of this Club of the Isles is the financial center of the old British Empire, the City of London. Soros is one of what in medieval days were called Hofjuden, the "Court Jews," who were deployed by the aristocratic families.
The most important of such "Jews who are not Jews," are the Rothschilds, who launched Soros's career. They are members of the Club of the Isles and retainers of the British royal family. This has been true since Amschel Rothschild sold the British Hessian troops to fight against George Washington during the American Revolution.
Soros is American only in his passport. He is a global financial operator, who happens to be in New York, simply because "that's where the money is," as the bank robber Willy Sutton once quipped, when asked why he always robbed banks. Soros speculates in world financial markets through his offshore company, Quantum Fund NV, a private investment fund, or "hedge fund." His hedge fund reportedly manages some $11-14 billion of funds on behalf of its clients, or investors---one of the most prominent of whom is, according to Soros, Britain's Queen Elizabeth, the wealthiest person in Europe.
The Quantum Fund is registered in the tax haven of the Netherlands Antilles, in the Caribbean. This is to avoid paying taxes, as well as to hide the true nature of his investors and what he does with their money.
In order to avoid U.S. government supervision of his financial activities, something normal U.S.-based investment funds must by law agree to in order to operate, Soros moved his legal headquarters to the Caribbean tax haven of Curacao. The Netherlands Antilles has repeatedly been cited by the Task Force on Money Laundering of the Organization for Economic Cooperation and Development (OECD) as one of the world's most important centers for laundering illegal proceeds of the Latin American cocaine and other drug traffic. It is a possession of the Netherlands.
Soros has taken care that the none of the 99 individual investors who participate in his various funds is an American national. By U.S. securities law, a hedge fund is limited to no more than 99 highly wealthy individuals, so-called "sophisticated investors." By structuring his investment company as an offshore hedge fund, Soros avoids public scrutiny.
Soros himself is not even on the board of Quantum Fund. Instead, for legal reasons, he serves the Quantum Fund as official "investment adviser," through another company, Soros Fund Management, of New York City. If any demand were to be made of Soros to reveal the details of Quantum Fund's operations, he is able to claim he is "merely its investment adviser." Any competent police investigator looking at the complex legal structure of Soros's businesses would conclude that there is prima facie evidence of either vast money laundering of illicit funds, or massive illegal tax evasion. Both may be true.
To make it impossible for U.S. tax authorities or other officials to look into the financial dealings of his web of businesses, the board of directors of Quantum Fund NV also includes no American citizens. His directors are Swiss, Italian, and British financiers.
George Soros is part of a tightly knit financial mafia---"mafia," in the sense of a closed masonic-like fraternity of families pursuing common aims. Anyone who dares to criticize Soros or any of his associates, is immediately hit with the charge of being "anti-Semitic"----a criticism which often silences or intimidates genuine critics of Soros's unscrupulous operations. The Anti-Defamation League of B'nai B'rith considers it a top priority to "protect" Soros from the charges of "anti-Semites" in Hungary and elsewhere in Central Europe, according to ADL National Director Abraham Foxman. The ADL's record of service to the British oligarchy has been amply documented by EIR (e.g. The Ugly Truth About the Anti-Defamation League [Washington, D.C., Executive Intelligence Review: 1992]).
According to knowledgeable U.S. and European investigators, Soros's circle includes indicted metals and commodity speculator and fugitive Marc Rich of Zug, Switzerland and Tel Aviv; secretive Israeli arms and commodity dealer Shaul Eisenberg, and "Dirty Rafi" Eytan, both linked to the financial side of the Israeli Mossad; and, the family of Jacob Lord Rothschild.
Understandably, Soros and the Rothschild interests prefer to keep their connection hidden far from public view, so as to obscure the well-connected friends Soros enjoys in the City of London, the British Foreign Office, Israel, and the U.S. financial establishment. The myth, therefore, has been created, that Soros is a lone financial investment "genius" who, through his sheer personal brilliance in detecting shifts in markets, has become one of the world's most successful speculators. According to those who have done business with him, Soros never makes a major investment move without sensitive insider information.
On the board of directors of Soros's Quantum Fund N.V. is Richard Katz, a Rothschild man who is also on the board of the London N.M. Rothschild and Sons merchant bank, and the head of Rothschild Italia S.p.A. of Milan. Another Rothschild family link to Soros's Quantum Fund is Quantum board member Nils O. Taube, the partner of the London investment group St. James Place Capital, whose major partner is Lord Rothschild. London Times columnist Lord William Rees-Mogg is also on the board of Rothschild's St. James Place Capital.
A frequent business partner of Soros in various speculative deals, including in the 1993 gold manipulation, although not on the Quantum Fund directly, is the Anglo-French speculator Sir James Goldsmith, a cousin of the Rothschild family.
>From the very first days when Soros created his own investment fund in 1969, he owed his success to his relation to the Rothschild family banking network. Soros worked in New York in the 1960s for a small private bank close to the Rothschilds, Arnhold & S. Bleichroeder, Inc., a banking family which represented Rothschild interests in Germany during Bismarck's time. To this day, A. & S. Bleichroeder, Inc. remains the Principal Custodian, along with Citibank, of funds of Soros's Quantum Fund. George C. Karlweiss, of Edmond de Rothschild's Switzerland-based Banque Privee SA in Lugano, as well as of the scandal-tainted Rothschild Bank AG of Zurich, gave Soros financial backing. Karlweiss provided some of the vital initial capital and investors for Soros's Quantum Fund.
Union Banque Privee and the 'Swiss connection'
Another member of the board of Soros's Quantum Fund is the head of one of the most controversial Swiss private banks, Edgar de Picciotto, who has been called "one of the cleverest bankers in Geneva"---and is one of the most scandal-tainted. De Picciotto, from an old Portuguese Jewish trading family, who was born in Lebanon, is head of the Geneva private bank CBI-TDB Union Bancaire Privee, a major player in the gold and offshore hedge funds business. Hedge funds have been identified by international police agencies as the fastest-growing outlet for illegal money laundering today.
De Picciotto is a longtime friend and business associate of banker Edmond Safra, also born in Lebanon, whose family came from Aleppo, Syria, and who now controls the Republic Bank of New York. Republic Bank has been identified in U.S. investigations into Russian organized crime, as the bank involved in transferring billions of U.S. Federal Reserve notes from New York to organized crime-controlled Moscow banks, on behalf of Russian organized crime figures. Safra is under investigation by U.S. and Swiss authorities for laundering Turkish and Columbian drug money. In 1990, Safra's Trade Development Bank (TDB) of Geneva was merged with de Picciotto's CBI to create the CBI-TDB Union Banque Privee. The details of the merger are shrouded in secrecy to this day. As part of the deal, de Picciotto became a board member of American Express Bank (Switzerland) SA of Geneva, and two American Express Bank of New York executives sit on the board of de Picciotto's Union Banque Privee. Safra had sold his Trade Development Bank to American Express, Inc. in the 1980s. Henry Kissinger sits on the board of American Express, Inc., which has repeatedly been implicated in international money-laundering scandals.
De Picciotto's start as a Geneva banker came from Nicholas Baring of the London Barings Bank, who tapped de Picciotto to run the bank's secret Swiss bank business. Barings has for centuries been private banker to the British royal family, and since the bank's collapse in March 1995, has been overhauled by the Dutch ING Bank, which is reported to be a major money-laundering institution.
De Picciotto is also a longtime business partner of Venetian businessman Carlo De Benedetti, who recently was forced to resign as head of Olivetti Corp. Both persons sit on the board of the Societe Financiere de Geneve investment holding company in Geneva. De Benedetti is under investigation in Italy for suspicion of triggering the collapse of Italy's Banco Ambrosiano in the early 1980s.The head of that bank, Roberto Calvi, was later found hanging from the London Blackfriar's Bridge, in what police believe was a masonic ritual murder.
De Picciotto and his Union Banque Privee have been implicated in numerous drug and illegal money-laundering operations. In November 1994, U.S. federal agents arrested a senior official of de Picciotto's Geneva bank, Jean-Jacques Handali, along with two other UBP officials, on charges of leading a multimillion-dollar drug-money-laundering ring. According to the U.S. Attorney's Office in Miami, Handali and Union Banque Privee were the "Swiss connection" in an international drug-money-laundering ring tied to Colombian and Turkish cocaine and heroin organizations. A close business and political associate of de Picciotto is a mysterious arm dealer, Helmut Raiser, who is linked in business dealings with reputed Russian organized crime kingpin Grigori Luchansky, who controls the Russian and Swiss holding company Nordex Group.
Another director of Soros's Quantum Fund is Isodoro Albertini, owner of the Milan stock brokerage firm Albertini and Co. Beat Notz of the Geneva Banque Worms is another private banker on the board of Soros's Quantum Fund, as is Alberto Foglia, who is chief of the Lugano, Switzerland Banca del Ceresio. Lugano, just across the Swiss border from Milan, is notorious as the financial secret bank haven for Italian organized crime families, including the heroin mafia behind the 1980s "Pizza Connection" case. The Banca del Ceresio has been one of the secret Swiss banks identified in the recent Italian political corruption scandals as the repository of bribe funds of several Italian politicians now in prison.
The sponsorship of the Rothschilds
Soros's relation to the Rothschild finance circle represents no ordinary or casual banking connection. It goes a long way to explain the extraordinary success of a mere private speculator, and Soros's uncanny ability to "gamble right" so many times in such high-risk markets. Soros has access to the "insider track" in some of the most important government and private channels in the world.
Since World War II, the Rothschild family, at the heart of the financial apparatus of the Club of the Isles, has gone to great lengths to create a public myth about its own insignificance. The family has spent significant sums cultivating a public image as a family of wealthy, but quiet, "gentlemen," some of whom prefer to cultivate fine French wines, some of whom are devoted to charity.
Since British Foreign Secretary Arthur Balfour wrote his famous November 1917 letter to Lord Rothschild, expressing official British government backing for establishment of a Palestinian national home for the Jewish people, the Rothschilds were intimately involved in the creation of Israel. But behind their public facade of a family donating money for projects such as planting trees in the deserts of Israel, N.M. Rothschild of London is at the center of various intelligence operations, and more than once has been linked to the more unsavory elements of international organized crime. The family prefers to keep such links at arm's length, and away from its London headquarters, via its lesser-known outposts such as their Zurich Rothschild Bank AG and Rothschild Italia of Milan, the bank of Soros partner Richard Katz.
N.M. Rothschild is considered by City of London sources to be one of the most influential parts of the British intelligence establishment, tied to the Thatcher "free market" wing of the Tory Party. Rothschild and Sons made huge sums managing for Thatcher the privatization of billions of dollars of British state industry holdings during the 1980s, and today, for John Major's government. Rothschilds is also at the very heart of the world gold trade, being the bank at which twice daily the London Gold Fix is struck by a group of the five most influential gold trade banks. Gold constitutes a major part of the economy of drug dealings globally.
N.M. Rothschild and Sons is also implicated in some of the filthiest drugs-for-weapons secret intelligence operations. Because it is connected to the highest levels of the British intelligence establishment, Rothschilds managed to evade any prominent mention of its complicity in one of the more sordid black covert intelligence networks, that of the Bank of Credit and Commerce International (BCCI). Rothschilds was at the center of the international web of money-laundering banks used during the 1970s and 1980s by Britain's MI-6 and the networks of Col. Oliver North and George Bush, to finance such projects as the Nicaraguan Contras.
On June 8, 1993 the chairman of the U.S. House of Representatives' Committee on Banking, Rep. Henry Gonzalez (D-Tex.), made a speech charging that the U.S. government, under the previous Bush and Reagan administrations, had systematically refused to prosecute the BCCI, and that the Department of Justice had repeatedly refused to cooperate with Congressional investigations of both the BCCI scandal and what Gonzalez claims is the closely related scandal of the Atlanta, Georgia Banca Nationale del Lavoro, which was alleged to have secured billions in loans from the Bush administration to Saddam Hussein, just prior to the Gulf War of 1990-91.
Gonzalez charged that the Bush administration had "a Justice Department that I say, and I repeat, has been the most corrupt, most unbelievably corrupt justice system that I have seen in the 32 years I have been in the Congress."
The BCCI violated countless laws, including laundering drug money, financing illegal arms traffic, and falsifying bank records. In July 1991, New York District Attorney Robert Morgenthau announced a grand jury indictment against BCCI, charging it with having committed "the largest bank fraud in world financial history. BCCI operated as a corrupt criminal organization throughout its entire 19-year history."
The BCCI had links directly into the Bush White House. Saudi Sheik Kamal Adham, a BCCI director and former head of Saudi Arabian intelligence when George Bush was head of the CIA, was one of the BCCI shareholders indicted in the United States. Days after his indictment, former top Bush White House aide Edward Rogers went to Saudi Arabia as a private citizen to sign a contract to represent Sheikh Adham in the United States.
--- continued in part 2 --- --- continued from part 1 ---
But, what has never been identified in a single major Western press investigation, was that the Rothschild group was at the heart of the vast illegal web of BCCI. The key figure was Dr. Alfred Hartmann, the managing director of the BCCI Swiss subsidiary, Banque de Commerce et de Placement SA; at the same time, he ran the Zurich Rothschild Bank AG, and sat in London as a member of the board of N.M. Rothschild and Sons, Hartmann was also a business partner of Helmut Raiser, friend of de Picciotto, and linked to Nordex.
Hartmann was also chairman of the Swiss affiliate of the Italian BNL bank, which was implicated in the Bush administration illegal transfers to Iraq prior to the 1990 Iraqi invasion of Kuwait. The Atlanta branch of BNL, with the knowledge of George Bush when he was vice president, conduited funds to Helmut Raiser's Zug, Switzerland company, Consen, for development of the CondorII missile program by Iraq, Egypt, and Argentina, during the Iran-Iraq War. Hartmann was vice-chairman of another secretive private Geneva bank, the Bank of NY-Inter-Maritime Bank, a bank whose chairman, Bruce Rappaport, was one of the illegal financial conduits for Col. Oliver North's Contra drugs-for-weapons network during the late 1980. North also used the BCCI as one of his preferred banks to hide his illegal funds.
Rich, Reichmann, and Soros's Israeli links
According to reports of former U.S. State Department intelligence officers familiar with the Soros case, Soros's Quantum Fund amassed a war chest of well over $10 billion, with the help of a powerful group of "silent" investors who let Soros deploy the capital to demolish European monetary stability in September 1992.
Among Soros's silent investors, these sources say, are the fugitive metals and oil trader Marc Rich, based in Zug, Switzerland; and Shaul Eisenberg, a decades-long member of Israeli Mossad intelligence, who functions as a major arms merchant throughout Asia and the Near East. Eisenberg was recently banned from doing business in Uzbekistan, where he had been accused by the government of massive fraud and corruption. A third Soros partner is Israel's "Dirty Rafi" Eytan, who served in London previously as Mossad liaison to British intelligence.
Rich was one of the most active western traders in oil, aluminum, and other commodities in the Soviet Union and Russia between 1989 and 1993. This, not coincidentally, is just the period when Grigori Luchansky's Nordex Group became a multibillion-dollar company selling Russian oil, aluminum, and other commodities.
Canadian real estate entrepreneur Paul Reichmann, formerly of Olympia and York notoriety, a Hungarian-born Jew like Soros, is a business partner in Soros's Quantum Realty, a $525-million real estate investment fund.
The Reichmann tie links Soros as well with Henry Kissinger and former Tory Foreign Minister Lord Carrington (who is also a member of Kissinger Associates, Inc. of New York). Reichmann sits with both Kissinger and Carrington on the board of the influential British-Canadian publishing group, Hollinger, Inc. Hollinger owns a large number of newspapers in Canada and the United States, the London Daily Telegraph, and the largest English-language daily in Israel, the Jerusalem Post. Hollinger has been attacking President Clinton and the Middle East peace process ever since Clinton's election in November 1992.
Soros and geopolitics
Soros is little more than one of several significant vehicles for economic and financial warfare by the Club of the Isles faction. Because his affiliations to these interests have not previously been spotlighted, he serves extremely useful functions for the oligarchy, as in 1992 and 1993, when he launched his attack on the European Rate Mechanism.
Although Soros's speculation played a role in finally taking the British pound out of the ERM currency group entirely, it would be a mistake to view that action as "anti-British." Soros went for the first time to London, where he studied under Karl Popper and Friedrich von Hayek at the London School of Economics.
Soros's business ties to Sir James Goldsmith and Lord Rothschild place him in the inner circles of the Thatcher wing of the British establishment. By helping the "anti-Europe" Thatcherites pull Britain out of the ERM in September 1992 (and making more than $1 billion in the process at British taxpayer expense), Soros helped the long-term goal of the Thatcherites in weakening continental Europe's economic stability. Since 1904 , it has been British geopolitical strategy to prevent by all means any successful economic linkage between western continental European economies, especially that of Germany, with Russia and the countries of eastern Europe.
Soros's personal outlook is consonant with that of the Thatcher wing of the Tory Party, those who three years ago launched the "Germany, the Fourth Reich" hate campaign against unified Germany, comparing Chancellor Helmut Kohl with Adolf Hitler. Soros is personally extremely anti-German. In his 191 autobiography, Underwriting Democracy, Soros warned that a reunited Germany would "upset the balance of Europe .... It is easy to see how the interwar scenario could be replayed. A united Germany becomes the strongest economic power and develops Eastern Europe as its Lebensraum ... a potent witches' brew." Soros's recent public attacks on the German economy and the deutsche mark are fundamentally motivated by this geopolitical view.
Soros is quite close to the circles of George Bush in the U.S. intelligence community and finance. His principal bank custodian, and reputed major lender in the 1992 assault on Europe's ERM, is Citicorp NA, the nation's largest bank. Citicorp is more than a lending institution; it is a core part of the American liberal establishment. In 1989, as it became clear that German unification was a real possibility, a senior official at Citicorp, a former adviser to Michael Dukakis's Presidential campaign, told a European business associate that "German unity will be a disaster for our interests; we must take measures to ensure a sharp D-Mark collapse on the order of 30%, so that she will not have the capability to reconstruct East Germany into the economic engine of a new Europe."
While Soros was calling on world investors to pull down the deutsche mark in 1993, he had been making a strong play in the French media, since late 1992, to portray himself as a "friend of French interests." Soros is reported to be close to senior figures of the French establishment, the Treasury, and in particular, Bank of France head Jean-Claude Trichet. In effect, Soros is echoing the old Entente Cordiale alliance against Germany, which helped precipitate World War 1.
Soros admits that he survived in Nazi Hungary during the war, as a Jew, by adopting what he calls a double personality. "I have lived with a double personality practically all my life," Soros recently stated. "It started at age fourteen in Hungary, when I assumed a false identity in order to escape persecution as a Jew." Soros admitted in a radio interview that his father gave him Nazi credentials in Hungary during the war, and he looted wealthy Jewish estates. Further research showed that this operation was probably run by the SS.
Soros did not leave the country until two years after the war. Though he and his friends in the media are quick to attack any policy opponent of Soros, especially in eastern Europe, as being "anti-Semitic," Soros's Jewish identity apparently has only utilitarian value for him, rather than providing moral foundations. In short, the young Soros was a cynical, ambitious person, the ideal recruit for the British postwar intelligence network.
Soros savages eastern Europe
Soros has established no fewer than 19 "charitable" foundations across eastern Europe and the former Soviet Union. He has sponsored "peace" concerts in former Yugoslavia with such performers as Joan Baez. He is helping send young east Europeans to Oxford University. A model citizen, is the image he broadcasts.
The reality is something else. Soros has been personally responsible for introducing shock therapy into the emerging economies of eastern Europe since 1989. He has deliberately fostered on fragile new governments in the east the most draconian economic madness, policies which have allowed Soros and his financial predator friends, such as Marc Rich and Shaul Eisenberg, to loot the resources of large parts of eastern Europe at dirt-cheap prices. Here are illustrative case histories of Soros's eastern "charity":
Poland: In late 1989, Soros organized a secret meeting between the "reform" communist government of Prime Minister Mieczyslaw Rakowski and the leaders of the then-illegal Solidarnosc trade union organization. According to well-informed Polish sources, at that 1989 meeting, Soros unveiled his "plan" for Poland: The communists must let Solidarnosc take over the government, so as to gain the confidence of the population. Then, said Soros, the state must act to bankrupt its own industrial and agricultural enterprises, using astronomical interest rates, withholding state credits, and burdening firms with unpayable debt. Once thie were done, Soros promised that he would encourage his wealthy international business friends to come into Poland, as prospective buyers of the privatized state enterprises. A recent example of this privatization plan is the case of the large steel facility Huta Warsawa. According to steel experts, this modern complex would cost $3-4 billion for a western company to build new. Several months ago, the Polish government agreed to assume the debts of Huta Warsawa, and to sell the debt-free enterprise to a Milan company, Lucchini, for $30 million!.
Soros recruited his friend, Harvard University economist Jeffery Sachs, who had previously advised the Bolivian government in economic policy, leading to the takeover of that nation's economy by the cocaine trade. To further his plan in Poland, Soros set up one of his numerous foundations, the Stefan Batory Foundation, the official sponsor of Sach's work in Poland in 1989-90.
Soros boasts, "I established close personal contact with Walesa's chief adviser, Bronislaw Geremek. I was also received by [President Gen Wojciech] Jaruzelski, the head of State, to obtain his blessing for my foundation." He worked closely with the eminence gris of Polish shock therapy, Witold Trzeciakowski, a shadow adviser to Finance Minister Leszek Balcerowicz. Soros also cultivated relations with Balcerowicz, the man who would first impose Sach's shock therapy on Poland. Soros says when Walesa was elected President, that "largely because of western pressure, Walesa retained Balcerowicz as minister." Balcerowicz imposed a freeze on wages while industry was to be bankrupted by a cutoff of state credits. Industrial output fell by more than 30% over two years.
Soros admits he knew in advance that his shock therapy would cause huge unemployment, closing of factories, and social unrest. For this reason, he insisted that Solidarnosc be brought into the government, to help deal with the unrest. Through the Batory Foundation, Soros coopted key media opinion makers such as Adam Michnik, and through cooperation with the U.S. Embassy in Warsaw, imposed a media censorship favorable to Soros's shock therapy, and hostile to all critics.
Russia and the Community of Independent States (CIS): Soros headed a delegation to Russia, where he had worked together with Raisa Gorbachova since the late 1980s, to establish the Cultural Initiative Foundation. As with his other "charitable foundations," this was a tax-free vehicle for Soros and his influential Western friends to enter the top policymaking levels of the country, and for tiny sums of scarce hard currency, but up important political and intellectual figures. After a false start under Mikhail Gorbachov in 1988-91, Soros shifted to the new Yeltsin circle. It was Soros who introduced Jeffery Sachs and shock therapy into Russia, in late 1991. Soros describes his effort: "I started mobilizing a group of economists to take to the Soviet Union (July 1990). Professor Jeffery Sachs, with whom I had worked in Poland, was ready and eager to participate. He suggested a number of other participants: Romano Prodi from Italy; David Finch, a retired official from the IMF [International Monetary Fund]. I wanted to include Stanley Fischer and Jacob Frenkel, heads of research of the World Bank and IMF, respectively; Larry Summers from Harvard and Michael Bruno of the Central Bank of Israel."
Since Jan. 2, 1992, shock therapy has introduced chaos and hyperinflation into Russia. Irreplaceable groups from advanced scientific research institutes have fled in pursuit of jobs in the West. Yegor Gaidar and the Yeltsin government imposed draconian cuts in state spending to industry and agriculture, even though the entire economy was state-owned. A goal of a zero deficit budget within three months was announced. Credit to industry was ended, and enterprises piled up astronomical debts, as inflation of the ruble went out of control.
The friends of Soros lost no time in capitalizing on this situation. Marc Rich began buying Russian aluminum at absurdly cheap prices, with his hard currency. Rich then dumped the aluminum onto western industrial markets last year, causing a 30% collapse in the price of the metal, as western industry had no way to compete. There was such an outflow of aluminum last year from Russia, that there were shortages of aluminum for Russian fish canneries. At the same time, Rich reportedly moved in to secure export control over the supply of most West Siberian crude oil to western markets. Rich's companies have been under investigation for fraud in Russia, according to a report in the Wall Street Journal of May 13, 1993.
Another Soros silent partner who has moved in to exploit the chaos in the former Soviet Union, is Shaul Eisenberg. Eisenberg, reportedly with a letter of introduction from then-European Bank chief Jacques Attali, managed to secure an exclusive concession for textiles and other trade in Uzbekistan. When Uzbek officials confirmed defrauding of the government by Eisenberg, his concessions were summarily abrogated. The incident has reportedly caused a major loss for Israeli Mossad strategic interests throughout the Central Asian republics.
Soros has extensive influence in Hungary. When nationalist opposition parliamentarian Istvan Csurka tried to protest what was being done to ruin the Hungarian economy, under the policies of Soros and friends, Csurka was labeled an "anti-Semite," and in June 1993, he was forced out of the governing Democratic Forum, as a result of pressure from Soros-linked circles in Hungary and abroad, including Soros's close friend, U.S. Rep. Tom Lantos.
Lighting the Balkan Fuse
In early 1990, in what was then still Yugoslavia, Soros's intervention with shock therapy, in cooperation with the IMF, helped light the economic fuse that led to the outbreak of war in June 1991. Soros boasted at that time, "Yugoslavia is a particularly interesting case. Even as national rivalries have brought the country to the verge of a breakup, a radical monetary stabilization program, which was introduced on the same date as in Poland---January 1, 1990-----has begun to change the political landscape. The program is very much along the Polish lines, and it had greater initial success. By the middle of the year, people were beginning to think Yugoslav again."
Soros is friends with former Deputy Secretary of State Lawrence Eagleburger, the former U.S. ambassador to Belgrade and the patron of Serbian Communist leader Slobodan Milosevic. Eagleburger is a past president of Kissinger Associates, on whose board sits Lord Carrington, whose Balkan mediations supported Serbian aggression into Croatia and Bosnia.
Today, Soros has established his Foundation centers in Bosnia, Croatia, Slovenia, and a Soros Yugoslavia Foundation in Belgrade, Serbia. In Croatia, he has tried to use his foundation monies to woo influential journalists or to slander opponents of his shock therapy, by labeling them variously "anti-Semitic" or "neo-Nazi." The head of Soros's Open Society Fund---Croatia, Prof. Zarko Puhovski, is a man who has reportedly made a recent dramatic conversion from orthodox Marxism to Soros's radical free market. Only seven years ago, according to one of his former students, as professor of philosophy at the University of Zagreb, Puhovski attacked students trying to articulate a critique of communism, by insisting, "It is unprincipled to criticize Marxism from a liberal standpoint." His work for the Soros Foundation in Zagreb has promoted an anti-nationalist "global culture," hiring a network of anti-Croatian journalists to propagandize, in effect, for the Serbian cause.
These examples can be elaborated for each of the other 19 locations across eastern Europe where George Soros operates. The political agenda of Soros and this group of financial "globalists" will create the conditions for a new outbreak of war, even world war, if it continues to be tolerated.


Strauss-Kahn & The IMF/BCCI Mugger « Tarig Anter on Protect & Reinvent Democracy

Strauss-Kahn & The IMF/BCCI Mugger

September 17, 2011

. . .

May 19, 2011 — Dean Henderson
This week’s arrest of IMF Managing Director Dominique Strauss-Kahn – whether a Sarkozy-instigated “honey-trap” or just good law enforcement – should come as no surprise. Since its inception, the IMF has violently abused the people of the developing world in its role as debt collector for the Eight Families Rothschild-led banking monopoly.
The banksters sink poor countries into debt via loans that benefit either their wholly-owned multinational corporations or well-placed domestic strawmen. The IMF then swoops in and orders the now-indebted country to privatize its economy – with the banker-owned multinationals picking up state assets for pennies on the dollar as part of “debt reorganization”. One of the Eight Families’ tentacles facilitates this kabuki dance for a healthy fee. More often than not it is Goldman Sachs.
Another part of the deal is to impose harsh austerity measures that hit the poorest people the hardest. These measures include raising electricity rates, imposing a value-added tax or ending government subsidies for basic foodstuffs such as rice and beans.
If the country in question follows IMF mandates it receives yet more misdirected “loans” from the World Bank crowd and sinks further into debt. If it does not, the country is cut off from international finance, its currency devalued and its economy ravaged by hyperinflation. Countries that can no longer repay their mounting debt become victims of even worse IMF abuse, including the outright theft of that country’s Treasury funds.
No case illustrates this type of IMF official mugging better than that of the mysterious Bank of Credit & Commerce International (BCCI).
Robin Hood in Reverse
Both the IMF and the Caribbean Development Bank (CDB) had close ties to BCCI. The CDB was founded by David Rockefeller’s International Basic Economy Corporation – which launched the Caribbean Basin Initiative. CDB loans money to countries that agree to allow multinational corporations to set up tax-free operations within their borders to take advantage of cheap labor. These areas become known as export processing zones and give the corporations additional tax benefits from the US government.
BCCI – launched by Bank of America – was a CIA drug money laundry which moonlighted as mugger for the IMF bankers. The IMF helped BCCI set up shop in numerous countries, including virtually every Latin American nation. BCCI loaned the Jamaican government money to pay the IMF in return for Jamaican government deposits at BCCI. Bolivia got BCCI loans under the same agreement, this time at the urging of the World Bank. In Peru, the IMF/World Bank solicited Peruvian treasury deposits for BCCI.
None of these countries would ever see the over $1 billion in treasury funds which they collectively put down the BCCI black hole. Peru later indicted a former IMF/World bank official for his role in the fleecing of Peru’s Central Bank. While recycled petrodollars were being pumped into BCCI from the pockets of Gulf Cooperation Council (GCC) oil sheiks, and drug profits were derived from contra cocaine and mujahadeen heroin, BCCI was simultaneously swindling the central banks of some of the world’s poorest countries with a wink and a nod from the IMF and World Bank.
As Alexander Cockburn put it in a Wall Street Journal column, when BCCI was closed by the Bank of England in July 1991, “The little guys went to the wall and the big fish swam off with the swag”.
The racket worked something like this: BCCI, in addition to providing loans for deposits, would offer to broker a country’s debt with the IMF if the central bank was willing to deposit funds at BCCI’s local branch. Those countries that cooperated with the IMF would be rewarded with more loans. Those that refused never saw their money again. Most of the $20 billion that disappeared when BCCI was shut down belonged to Third World central banks whose governments had not bent over far enough for the IMF. This outright theft left the poorest, most debt-ridden countries in the world even more impoverished. African nations were hardest hit.
Cameroon, where US AID had been BCCI’s biggest customer, lost one-third of its hard currency reserves. Nigeria lost $300 million when BCCI crony Alhaji Ibrahim Dasuki bribed central bankers, then split with the cash. For his troubles he was appointed Sultan of Sokoto, the Muslim capital of northern Nigeria. The central banks of Zambia, Zimbabwe, Congo, Ivory Coast, Sierre Leone, Gabon, Senegal and Ghana were all pilfered by BCCI. All failed to satisfy IMF mandates for new loans or were in arrears on old debt. BCCI sponged over $2 billion from the African continent.
Even in England, where $400 million was lost by depositors when BCCI closed shop, most of the money belonged to African immigrants of marginal means who believed BCCI’s claim of being “a bank for the world’s poor”.
In Peru, populist President Alan Garcia, who in 2001 launched a stunning political comeback and nearly defeated former World Bank economist Alejandro Toledo in the Peruvian Presidential elections, suspended debt payments to the international banks in 1986. Within months he was approached by Amjad Awan, Panamanian President Manuel Noriega’s personal banker who ran the BCCI Panama City branch through which Noriega received his $200,000/year CIA paycheck.
Awan suggested that Garcia use BCCI to hide what little hard currency Peru had stashed away from the IMF debt collectors. Awan arranged bribes of over $3 million to be paid to Peruvian Central Bank officials through Security Pacific Bank and Swiss Bank Corporation of Panama. The officials wired $250 million, 25% of all Peruvian Central Bank assets, to BCCI Panama. Peru never saw the money again.
In Argentina, BCCI paid off officials to pull off a debt-equity swap so ludicrous that it involved BCCI buying Argentine debt for pennies on the dollar, then selling it back to Argentina for full price. This happened under President Carlos Menem, the Bush-family friend who was brought down by a drugs and corruption scandal of which these phony debt-equity swaps were a part. A big chunk of the $132 billion that Argentina “owed” the international bankers when it defaulted in late 2001 went down the BCCI rabbit hole.
BCCI specialized in facilitating capital flight from poor countries by helping rich Third World nationals start offshore accounts with the bank. BCCI would hire siblings of wealthy clients to man its local branches. In Bangladesh it helped deposed President Ershad loot the Bangladesh Central Bank on his way out of the country. The Dacca BCCI branch was manned by Ershad’s relatives, who set up a foundation to avoid taxes while receiving BCCI kickbacks. Aid received by BCCI-Dacca was diverted into offshore accounts of the Ershad family which BCCI helped set up. When BCCI went under in 1991, 15,000 middle-class Bangladeshis lost their life savings.
Manuel Noriega did the exact same thing with BCCI-Panama, with many Panamanians losing their nest eggs as well. In country after country BCCI aided a tiny group of elite IMF-connected families in robbing their nation’s treasuries, then moving the money offshore into accounts at Western mega-banks. The global elite had once again shaken down the world’s poor.
As Manuel Salgado Tamayo, Ecuador’s former Vice President of the National Congress and once a candidate for President, put it, “…a world order…for the first time in the history of capitalism has the world’s population by the scruff of the neck. This order, or world disorder, is neo-liberal globalization, whose postmodern philosophy expounds the death of reason and humanism, the total imposition of capital over labor, a ‘free’ market for the South vs. protectionism for the North, and a type of financial freedom that allows the rich to steal the savings of the poor.”
Strauss-Kahn is proof positive that scum really does rise to the top. Now that he’s in jail where he belongs, the US should pull its funding of the IMF and end this tax-payer subsidy of inbred banker brutality.
Bruce E. Woych Says: May 19, 2011 at 3:35 pm
This global pattern has been happening for three plus decades now and up until now it has primarily been the most vulnerable third world that has been looted Texas style and plundered with abandon by the seizures and takeover going under the banner of “free markets” privatization and crony political capitalism. Without getting deeper into this hell hole of unfettered “realism” it is critical to re-evaluate the crisis and looting of our own treasury by a very small gang ruling the power finance of Wall Street:; and recognize that the Friedman/Chicago University (gangster style) crash, burn and blame the victims while you plunder them…is HAPPENING TO OUR OWN DOMESTIC ECON0OMY RIGHT NOW.
THINK ABOUT THE PATTERN AND APPLY IT TO EVERYTHING THAT HAS HAPPENED IN AMERICA (it easily goes back to BCCI but remember that Texas Looting was happening prior to and including the so called Savings and Loan swindles. It is the same pattern! They police themselves so there is no way to catch them or even follow all the money.
Bruce E. Woych Says: May 19, 2011 at 5:12 pm
This systemic corruption of power derives from the cold war policies which began declaring a competitive “economic” war against the presumptive spread of communism and the red scare mentality. Once paramilitary operations went covert and a neo-military community (Eisenhower’s Military Industrial Complex or MIC) benefited it spiraled progressively and incestuously. Multiple Coup D’Etats and rank and file operatives could be financed off shore and by utilizing organized crime which could also facilitate operations without the overt approval or even knolwledge of Congress. Need to know and deniability festered and fostered greater levels of power corruptions and red scare ideology precluded nothing as being possible (JFK)>
Black Market finance and Cartel Crime was just the shadow side of political estate building within regimes and iits massive financing. The vast amounts of financing and off shore systems of financing these operations grew to be international (Iran – Contra) and internally contradictory. The rest is history as the managerial finacial structures of globalization systemics were embedded with its corrupt process and even unwittingly could take advantage of it.
Today we see the results both economically and politically.
It is impossible to get to the bottom or the top of this thing: it is totally out of control and our government as well as our domestic economy has been deeply infested and infected by the systemics of these cold war “derivatives.”
Marahiah Says: May 19, 2011 at 7:05 pm
Fascinating article.
Deluxe research and details.
-disturbing that the most viscous of Predators ruthlessly prevail.
-disturbing to know the view from the top is littered with victims of pain, death and destruction.
and Strauss-Kahn proves that the IMF also eats their own.
Belo Ghacom Says: June 10, 2011 at 10:31 am
Well,when they were decimating the Third World, Westerners were enjoying their enabled welfare and raised no finger of protest for the multiple mass rape of the poor. When foreign shores are depleted the chickens will come home to roost long before you know it or can do anything about it!
About the author:
Dean Henderson was born in Faulkton, South Dakota. He earned an M.S. in Environmental Studies from the University of Montana, where he edited The Missoula Paper and was a columnist for the Montana Kaimin. His articles have appeared in Multinational Monitor, In These Times, Paranoia and several other magazines.
A life long political activist and traveler to fifty countries, Henderson co-founded of the University of Montana Green Party and the Ozark Heritage Region Peace and Justice Network. He is former Vice-President of the Central Ozarks Farmer’s Union and former President of the Howell County Democrats.
In 2004 he won the Democratic nomination for Congress in Missouri’s 8th District.
Dean’s Books Available in print and e-book formats:
Dean Henderson is the author of Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network and The Grateful Unrich: Revolution in 50 Countries.
His Left Hook blog is at http://deanhenderson.wordpress.com/category/left-hook-columns/
Dean Henderson is a frequent contributor to Global Research. Global Research Articles by Dean Henderson: http://www.globalresearch.ca/index.php?context=listByAuthor&authorFirst=Dean&authorName=Henderson

Synarchism In Europe- Operation Gladio and NATOs Stay-Behind Armies

Le Cercle - Gladio - Knights of Malta - Opus Dei - Priory the Sion

God and His Messiah Jesus Christ our Lord - our right and duty to witness to Him: Sowing the Seeds of Global Government: The Vatican’s Quest for a World Political Authority


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