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New York Fed Refuses To Disclose Data On "The Largest Theft Of Funds In National History" Which Could Be Three Times Larger Than Expected

Tyler Durden's picture


A week ago we reported on the case of the "The Largest Theft Of Funds In National History" or the missing $6.6 billion in Iraq war reconstruction funding, which was literally composed of "shrink-wrapped bricks of $100 bills", which was part of a $20 billion total in "Marshall Plan" investment meant to stimulate the post-war economy. When discussing this so far undisclosed cash loss, "Stuart Bowen, special inspector general for Iraq reconstruction, an office created by Congress, said the missing $6.6 billion may be "the largest theft of funds in national history." Two new developments have emerged in this fascinating story. The first, as CNBCs Eamon Javers reports is that "The New York Fed is refusing to tell investigators how many billions of dollars it shipped to Iraq during the early days of the US invasion there." Javers adds: "The Fed's lack of disclosure is making it difficult for the inspector general to follow the paper trail of billions of dollars that went missing in the chaotic rush to finance the Iraq occupation, and to determine how much of that money was stolen." Well, for what it's worth, we may have an estimate of this largest war theft ever: talking to Al Jazeera, "Osama al-Nujaifi, the Iraqi parliament speaker, has told Al Jazeera that the amount of Iraqi money unaccounted for by the US is $18.7bn - three times more than the reported $6.6bn." If indeed the total theft amounts to virtually the entire amount of reconstruction spending that could possibly explain why the Fed is so coy in discussing this issue. Alas, just like the Fed's multitrillion bailout of the financial system, it is unlikely it will be able to keep the topic from reemerging, and that very soon - al-Nujaifi adds: "There is a lot of money missing during the first American administration of Iraqi money in the first year of occupation. "Iraq's development fund has lost around $18bn of Iraqi money in these operations - their location is unknown. Also missing are the documents of expenditure. "I think it will be discussed soon. There should be an answer to where has Iraqi money gone." Who will be the next Mark Pittman to sue the New York Fed to get the required information on how much cash the FRBNY was complicit in "disappearing" - we can't wait to find out.

From Al-Jazeera:

The Bush administration flew in a total of $20bn in cash into the country in 2004. This was money that had come from Iraqi oil sales, surplus funds from the UN oil-for-food programme and seized Iraqi assets.

Officials in Iraq were supposed to give out the money to Iraqi ministries and US contractors, intended for the reconstruction of the country.

The Los Angeles Times reported last week that Iraqi officials argue that the US government was supposed to safeguard the stash under a 2004 legal agreement it signed with Iraq, hence making Washington responsible for the cash that has disappeared.

Pentagon officials have contended for the last six years that they could account for the money if given enough time to track down the records.

The US has audited the money three times, but has still not been able to say exactly where it went.

Al Jazeera's Iraq correspondent, Jane Arraf, reporting from Baghdad, said: "It's an absolutely astonishing figure - this goes back to 2003 and 2004.

"There is going to be a fairly wide net cast - some of them [involved in mishandling of this money] are thought to be US officials, but many here believe that it is the Iraqis who have filled their pockets.

"Safeguarding the money was up to the Americans ... after the invasion, provisional authority here was run by the American military.

"Piles and piles of shrink-wrapped US dollars came here, but the cash coming in is not the important part - it is what happened to it after [it got here].

"There are no documents to indicate who got it, where it was spent and what was ever built from it."


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Wed, 06/22/2011 - 10:24 | 1391606 LeBalance
LeBalance's picture

"I am shocked, shocked I say, to find that Theft is taking place in the Banking industry."


Wed, 06/22/2011 - 11:37 | 1391941 Republi-Ken
Republi-Ken's picture

Shocked... That Republicans

Who Always Brag Of how great they manage big corporations

are so blatantly incompetent with US Taxpayer money... not their own money.

Maybe it's that Hate Big Gov Neurosis that Republicans are born with.

...Like they can't help themsleves but to screw up running Big Gov.

Or was it just BUSH - CHENEY? 

Wed, 06/22/2011 - 12:26 | 1392119 NotApplicable
NotApplicable's picture

How about you give your ignorant lefty-righty divide and conquer tactics a rest here?

BTW, I didn't junk you because I want everyone to see just how determined you are to look like an ass.

Wed, 06/22/2011 - 13:27 | 1392314 Marty Rothbard
Marty Rothbard's picture

Oh yes, those two haters of big government, Bush and Cheney, who started two wars (the health of the state),  enhanced the drug war,  expanded middle class welfare by originating, and pushing the medicare drug benefit through congress, denied the right of habeus corpus to American citizens, illegaly spied on every American with a telephone, or email address, had their lawyers make up the fantasy of the unitary executive, issued uncounted secret executive orders, originated, and pushed the patriot act through the congress, tortured POWs, pushed through the first banking and auto company bailouts, by threatening congress with martial law, and anounced that we were all Kenesians.   If Barry boy gets a second term, and tries real hard, he might, I say might, exceed Bush in his government enlarging efforts.  B&C didn't screw up running big government, they ran big government perfectly.

   What planet are you living on?  Haven't you been paying attention?  Nobody loves government more than national socialists, uhh I mean Neocons.   I'm a Republican, a Ron Paul Republican, I'm proud to say, and I hate the hell out of big government.  It's not a inborn neurosis, but a reasoned position, reached by years of observation, of government on all levels, and the study of the Austrian school of economics.  The people with mental health problems are the ones who have, not neuroses, but a full blow psychotic delusion, that government action is the answer to personal, and societal problems, after government has tried, failed, and actually made said problems worse, again and again.

   Maybe I misread your sarcasm, for serious belief.  For your sake, I certainly hope so.

Wed, 06/22/2011 - 19:18 | 1393418 Ura Bonehead
Ura Bonehead's picture

Shocked... That Republicans...


Then as a Democrats I'm sure you'll be able to find the missing money as I've never seen a Democrat who couldn't find and spend every last dime of everyone else's money.

Wed, 06/22/2011 - 12:09 | 1392055 Armando Javier ...
Armando Javier Finkeltein of the Boise Finkelsteins's picture

Not many other people are shocked.

Wed, 06/22/2011 - 13:40 | 1392359 karzai_luver
karzai_luver's picture

a criminal doesn't give a shit about red/blue - JUST THE GREEN er GOLD will do.

They steal from all -- the only question is where is the greatest opportunity at the time.

For some reason today I hark back to the days of Charlie Finley and Harvey the rabbit who would bring a fresh supply out of a hole at home plate.




Wed, 06/22/2011 - 15:49 | 1392892 sgt_doom
sgt_doom's picture

So according to the Special Inspector General for Iraqi Reconstruction Funds' (SIGIR) report I read awhile back, there's $8.7 billion unaccounted for (I assuming that doesn't include that $6 billion or so missing??).

Now, that was interesting (aside for all the officer busts also detailed in that report --- definitely not any "Army of One" when it comes to thievery and embezzling) because the Iraqi oil revenues went into accounts, first of the Iraqi Trade Bank, supposedly these oil-reconstruction accounts being managed by JPMorgan Chase and their managing director, Daniel Zelikow, then on to the Federal Reserve Bank of NY's account, where Timothy Geithner was then chairman.

Also, on hand at that time, was Reuben Jeffery II, special assistant to that viceroy, Bremer, and old Reuben would eventually end up as the CEO of Rockefeller Financial Services (FYI: JPMorgan Chase = Rockefeller family interests, Rockefeller Financial Services = Rockefeller family interests, Geithner = Rocky's boy, etc., etc.).

Now, it is interesting as well that Daniel Zelikow, MD over at JPMC, was an old college roomie with Timothy Geithner, and that Timothy would later stay at Daniel's luxurious condo in D.C. when Geithner was appointed to head Treasury (or, alternatively, one could start singing, "It's a small world after's a small world after all...."), but sgt_doom can't carry a tune, dammit!!!

Later, we would witness Philip Merrill's rather peculiar suicide, and James McDonald's conveniently timed suicide, and of course, Benazir Bhutto's most unfortunate murder (which may have nothing to do with the above, but she was involved with the "food-for-oil" scandals, and that food-for-oil monies were rolled into the oil-reconstruction accounts at the Trade Bank, and late the FRBNY's account).

So Timmy's at the Treasury, with all those Goldman Sachs alumnus, or alumnis, and Daniel's at Goldman Sachs, and Reuben's over at Rockefeller Financial Services.  All sounding pretty tidy, now?

One might even infer a continuous series of heists going here --- and please, no retorts about the DoD's missing $2.3 trillion -- that was a large group heist, while this is a much smaller and targeted heist.

Anyone have the details on that unaccounted for $16.7 billion from Afghanistan?  (And why always that $.7 thingy????)

Where's that super T-man, B.G. Jayne, when we direly need him?????  Does not the Treasury have any more top T-men such as he?????

Wed, 06/22/2011 - 10:24 | 1391608 Spastica Rex
Spastica Rex's picture

Just the cost of doing business.

Dear America,

Fuck off.

Yours sincerely,

your masters

Wed, 06/22/2011 - 10:53 | 1391757 IBelieveInMagic
IBelieveInMagic's picture

Put it down to fog of war. Shit happens.

They should look in sofa cushions.


Wed, 06/22/2011 - 12:54 | 1392204 mudduck
mudduck's picture

They should look in Cheney's basement, right beside the shrink wrapped ex-hunting compadres.

Wed, 06/22/2011 - 14:08 | 1392469 The Profit Prophet
The Profit Prophet's picture

I'm thinking it's in Goldman's vault.

T.E.I.N. everyone!

Wed, 06/22/2011 - 10:25 | 1391609 Dick Darlington
Dick Darlington's picture

End the FED before it ends us.

Wed, 06/22/2011 - 11:23 | 1391873 Raymond Reason
Raymond Reason's picture

Money always leaves a trail, even cash.  That's why the Fed is the perfect cover.  Its like crossing stream. 

Wed, 06/22/2011 - 11:44 | 1391964 Manthong
Manthong's picture

Incredible. The present government of the United States of America operates in blatant violation of the Constitution and has proven time and time again that it is too irresponsible to be allowed to manage the country’s finances.

Wed, 06/22/2011 - 12:35 | 1392137 NotApplicable
NotApplicable's picture

And this is surprising how, exactly? Why would you expect the mafia to act any differently?

Geithner was knee-deep in all of this, yet he has full immunity for his actions, because as we all know, he was just doing his job.

All wars are premeditated and promoted just for this sort of wealth transfer (and the further securing of power that it allows).

Wed, 06/22/2011 - 13:30 | 1392346 Marty Rothbard
Marty Rothbard's picture

Full immunity?  Just doing his job?  You need to review a little history.  The Nuremburg trials.  That excuse didn't save those national socialists, it won't save these.

Wed, 06/22/2011 - 15:21 | 1392794 TheMerryPrankster
TheMerryPrankster's picture

It also gives you a chance to wipe out the other big families and take their resources, loot, and connections. Plus you give all the patriots and nationalists a reach around and make sure their patriotic penises are at full attention as they beat their chests with nationalist pride. USA, USA, USA, - like a football game except the stakes are higher and you kill the other team.

War is the best racket in the world, thats why it will never go away.

Wed, 06/22/2011 - 12:49 | 1392189 NotApplicable
NotApplicable's picture


Wed, 06/22/2011 - 10:22 | 1391612 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Er, what about the $2.3 trillion 'missing' that Rumsfeld disclosed the day before September 11th?


Wed, 06/22/2011 - 10:26 | 1391624 SheepDog-One
SheepDog-One's picture

+ 2,300,000,000,000

Wed, 06/22/2011 - 10:33 | 1391654 Problem Is
Problem Is's picture

Simple accounting entry:

US Criminal "Defense" Contractor Assets
(GE, Haliburton et al):

$2.3 Trillion

US Taxpayer Liabilities:
$2.3 Trillion

Wed, 06/22/2011 - 10:40 | 1391681 Dr. Richard Head
Dr. Richard Head's picture

I am going to try giving the "accounting error" excuse with my "owed" income taxes.

Wed, 06/22/2011 - 10:42 | 1391693 johnnymustardseed
johnnymustardseed's picture

Exactly.... War what is it good for???? Cheney and his buddies at Haliburton

Wed, 06/22/2011 - 11:04 | 1391799 Caviar Emptor
Caviar Emptor's picture

Lord Haliburton, to you. 

Wed, 06/22/2011 - 11:15 | 1391827 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's all Bush's fault!  Oh wait....

Wed, 06/22/2011 - 15:54 | 1392921 Hephasteus
Hephasteus's picture

It all started with the 60's. JFK assassination. CIA pentagon takeover. It's just been continueing. Problem is when the world becomes a debasement machine instead of a purification machine it debases faster and faster. END.

Wed, 06/22/2011 - 10:56 | 1391754 johnQpublic
johnQpublic's picture

i thought it was 3.2 trillion....


however the bailout and resultant stimulus is still a much larger theft

not to mention the emptying of social security fund over the years

i wonder how much the IMF and world bank have effectively pilfered over the years

Wed, 06/22/2011 - 12:00 | 1392021 Oh regional Indian
Wed, 06/22/2011 - 13:27 | 1392313 Problem Is
Problem Is's picture

"i thought it was 3.2 trillion..."

Oooopppppsss.... Just a little accounting error...

Let me make an adjusting entry to that thar journal...

Wed, 06/22/2011 - 14:02 | 1392461 Rick64
Rick64's picture

3.3 Trillion actually. Fiscal year 1999- 2.3 T missing, fiscal year 2000 1.1 T missing.

 Watch at 1:30

Wed, 06/22/2011 - 11:20 | 1391855 friendly manitoba
friendly manitoba's picture

i doubt that it is missing  - i always  thought they under estimated the costs of these wars ...   if it costs a billion dollars to have a g8  meeting in toronto   - several ten year wars  could easily cost $5 trillion  - sad  

does anyone else find tylers math questions a bit much ?  44 minus  __  = 73 ?


Wed, 06/22/2011 - 11:51 | 1391990 el Gallinazo
el Gallinazo's picture

Apparently not.

Wed, 06/22/2011 - 15:24 | 1392814 TheMerryPrankster
TheMerryPrankster's picture

None of these wars are funded, if you paid the least bit of attention for the last decade, you'd know the entire war costs are borrowed and add to the national debt but are kept off the books for official accounting.

Hence there is no way a single penny was used to fund any war efforts.

The people who are supposed to know, know where the money went. The families are very strict in their accounting. Just because nobody "officially knows" doesn't mean nobody knows.

Wed, 06/22/2011 - 11:52 | 1391993 Maxter
Maxter's picture


we have a winner!

Wed, 06/22/2011 - 16:00 | 1392931 sgt_doom
sgt_doom's picture

I believe that's called "public funds for private use" account.

Been active for quite awhile, chum...

Wed, 06/22/2011 - 10:28 | 1391619 Madcow
Madcow's picture

where's Oprah ? 


Wed, 06/22/2011 - 11:02 | 1391789 Temporalist
Temporalist's picture


Wed, 06/22/2011 - 10:29 | 1391625 Financial Newbie
Financial Newbie's picture

Lose $18.7bn?

No worries, I'm sure the Fed will print some more...



Wed, 06/22/2011 - 10:39 | 1391675 Problem Is
Problem Is's picture

Sure, The Bernank says:

"The only cost associated with $18.7 Billion is... some paper and a couple of Bernanke Buck Green ink cartridges..."

Wed, 06/22/2011 - 11:18 | 1391838 Caviar Emptor
Caviar Emptor's picture

Well there was a whole shadow armed services err brown shirts errr excuse me Private Military Companies to fund:

Blackwater, Titan Corp, AirScan, Boughton Protection Services, Pathfinder Security, DynCorp, ITT Corp, JaneGroup,Northbridge Services, Xeros Services, Versar Inc, Zapata Engineering, CACI, Aegis Defense Services, Red Star Aviation, Obelisk INternational, SCG International Risk, Omega Security Solutions, AQMI Strategy, plus Iraqi paramilitaries and politicians to be bribed. 

A few trillion seems to me to be downright low budget and skimpy

Wed, 06/22/2011 - 10:26 | 1391626 Stuck on Zero
Stuck on Zero's picture

This amount is trifling.  Here is CBS News coverage of Donald Rumsfeld's Pentagon speech on September 10, 2001 in which he declared that trillions were missing from the Pentagon:

Much more here:



Wed, 06/22/2011 - 10:38 | 1391669 swissaustrian
swissaustrian's picture

Of course, the timing of the announcement was perfect.

One day later nobody would care about it...

Wed, 06/22/2011 - 10:46 | 1391714 alien-IQ
alien-IQ's picture

isn't it amazing how that story just vanished?

Wed, 06/22/2011 - 11:15 | 1391840 Caviar Emptor
Caviar Emptor's picture


But there was a boom in private military services shortly after!

Wed, 06/22/2011 - 11:54 | 1391986 Almost Solvent
Almost Solvent's picture

The disappearing story I am more interested in was:




That was 24/7 coverage the entire summer long and then BAM! 9/11. Shortly after that they found her body and ... OOOPS! the killer wasn't the Congressman! It was the professor, in the lounge, with the noose.

Wed, 06/22/2011 - 13:15 | 1392294 Badabing
Badabing's picture

How about two Jap business men cross border from Italy into Switzerland with US bonds, and lots of them!

Wed, 06/22/2011 - 11:44 | 1391949 writingsonthewall
writingsonthewall's picture

It would be amazing if it were China, or Stalinist Russia, or maybe Syria - but are you really surprised that the media drop stories which the Gubbermint doesn't want you to know about?

What about the Nebraska power plant? - awfully quiet considering it's under water.


If you don't like it - go live in China - where at least Twitter can tell you the news - unlike the USA where people get arrested for filming the police recklessly and excessively shooting a car to pieces.


Alice is through the looking glass - how long before the country wakes up?


For evil to prevail - all it takes is for good men to do nothing.

Wed, 06/22/2011 - 13:04 | 1392245 Rusty Shorts
Rusty Shorts's picture

It's all coming together now.

Wed, 06/22/2011 - 10:31 | 1391628 bonddude
bonddude's picture

Don't you remember when Bremmer had containers full of cash flown over early in the conflict?

Old news. Al Sadr is flush for protecting from holdout bathists. That red headed guy Saddam's

cousin was never caught. We need to leave Iraq. We're gonna need boots for Lybia (light,

sweetest). O will announce draw down in opium land today, right? Doomed

Wed, 06/22/2011 - 13:01 | 1392122 Urban Redneck
Urban Redneck's picture

What do you expect with someone like Bremmer running reconstruction- his qualifications fell somewhere between poli-sci major and community organizer?

Wed, 06/22/2011 - 15:30 | 1392833 TheMerryPrankster
TheMerryPrankster's picture

Our fearless leader used to be a community organizer. Never underestimate the abilities of a community organizer. It's the MBA of the 21st century.

I wonder if he can organize closets as well, my shoes are a mess.

Wed, 06/22/2011 - 10:30 | 1391630 SheepDog-One
SheepDog-One's picture

$6.6 billion? So what? Not even 1 day of Bernank/Sack POMO theft.

Wed, 06/22/2011 - 11:21 | 1391847 Caviar Emptor
Caviar Emptor's picture

I'm with you on that , @Dog. The attitude going forward is and should be: it's only BennyBux, just give them what they want...who cares? It only takes one flick of the index finger to cover it and then double it. 

Wed, 06/22/2011 - 10:30 | 1391631 the not so migh...
the not so mighty maximiza's picture

Off with their heads!!!


Wed, 06/22/2011 - 10:27 | 1391634 youngandhealthy
youngandhealthy's picture

What to expect when the US has been plundered by these "fine" people

A Schwartz


R Fuld

J Thain

J Dimon

H Paulson

L Summers

T Geithner

Bush JR

Martin Feldstein

G Hubbard

F Mishkin

No one is in jail? Why?

Wed, 06/22/2011 - 10:30 | 1391645 bonddude
bonddude's picture

You should include the real housewives of wall street as well.

Wed, 06/22/2011 - 10:40 | 1391678 youngandhealthy
youngandhealthy's picture

Thats your list Bonddude   ;-)

Wed, 06/22/2011 - 10:53 | 1391745 svendthrift
svendthrift's picture

Gah! I figured it out!

Wed, 06/22/2011 - 11:26 | 1391871 Caviar Emptor
Caviar Emptor's picture

Ahh but you're ignoring the giant theft that took place during the earlier part of the 2000's: Private Military Companies gone wild. It was a lovefest free for all in Iraq for nearly a decade and all the Cheney buddies were feeding at the trough. Not Hundreds, Thousands of known and secret contractors (verified by testimony before Congress by Rumy). War profiteering is a very profitable business my friend. 

Wed, 06/22/2011 - 14:12 | 1392489 Rick64
Rick64's picture

Very very profitable with the government handing out cost plus contracts there is no way not to make huge profits. Your tax dollars at work.

Wed, 06/22/2011 - 15:34 | 1392849 TheMerryPrankster
TheMerryPrankster's picture

That's your list, those are only tools. You want the real names, google "skull and bones" and look at the recurring family names, thats a good chunk of them, but there are a few others who prefer to keep a lower profile.

Take a look at Mellon of mellon bank fame for example.

Wed, 06/22/2011 - 10:31 | 1391635 alien-IQ
alien-IQ's picture

I'm pretty confident that a good slice of that money could be found in a little seaside nation in the middle east just west of Iraq.

Wed, 06/22/2011 - 10:33 | 1391663 optimator
optimator's picture

Sitting next to Madoff's money.

Wed, 06/22/2011 - 10:37 | 1391687 alien-IQ
alien-IQ's picture

and what ever became of the 2.3 TRILLION that the pentagon could not account for? you know...the 2.3 trillion they mentioned...September 10, 2001?

Wed, 06/22/2011 - 10:56 | 1391751 svendthrift
svendthrift's picture

I would imagine it ended up being campaign contributions. The Weltenfiend is not without a sense of irony.

Wed, 06/22/2011 - 14:11 | 1392495 Rick64
Rick64's picture

3.3 Trillion. 1999- 2.3 T missing, 2000- 1.1 T missing.

watch at 1:30

Wed, 06/22/2011 - 10:34 | 1391643 israhole
israhole's picture

Actually, Dov Zakheim "lost" over $2 trillion dollars when he was undersecretary and comptroller of Defense.  He's also a rabid Zionist loyal to Israel.


Wed, 06/22/2011 - 10:38 | 1391672 optimator
optimator's picture

Not a rabid Zionist, a Rabbi Zionist.

Wed, 06/22/2011 - 10:54 | 1391762 svendthrift
svendthrift's picture

He's demanding the Americans meddle in Egypt:


I hope some of you realize we have a big big big problem on our hands.

Wed, 06/22/2011 - 10:35 | 1391655 fuu
fuu's picture

$18.8 billion is to US spending as 1 drop of gasoline is to my V-8.

Wed, 06/22/2011 - 10:33 | 1391659 tamboo
tamboo's picture

i'm simply shocked to see a jewish rabbi implicated in the missing $2.3 trillion.

Wed, 06/22/2011 - 11:01 | 1391787 svendthrift
svendthrift's picture

It is not possible to completely wrap ones mind around the mentality:

“Our race is the Master Race. We are divine gods on this earth. We are as different from the inferior races as they are from insects. In fact, compared to our race, other races are beasts and animals, cattle at best. Other races are considered as human excrement. Our destiny is to rule over the inferior races. Our worldly wise kingdom will be ruled by our leader with a rod of iron. The masses will lick our feet and serve us as our slaves.”Israeli Prime Minister Menachem Begin (1977-1983) in a speech to the Knesset [New Statesman Magazine June 25 1982].

Everybody go read James O'Meara

Wed, 06/22/2011 - 10:37 | 1391661 swissaustrian
swissaustrian's picture

Still wonder why top 0,1% gets richer and richer?

Wed, 06/22/2011 - 10:37 | 1391664 spanish inquisition
spanish inquisition's picture

Pretty sure if it was done through the Treasury ESF they don't need to report it, to anyone.

Wed, 06/22/2011 - 10:52 | 1391737 Lionhead
Lionhead's picture

You are correct; there is no accountability other than from the Sec. of the Treasury to the President. This is a great example of the ESF. Now is the time to bring this story out mainstream in the alternative media. TD you have a great story here. FOLLOW IT!

Exposing the ESF will sober up the USA very quickly to the political corruption & collusion of TPTB.

Wed, 06/22/2011 - 10:57 | 1391777 spanish inquisition
spanish inquisition's picture

I found a video on the ESF that I posted in forums. Part 1 has alot of the basic ESF info 4 parts total.

Wed, 06/22/2011 - 11:28 | 1391884 Lionhead
Lionhead's picture

Thanks for the link. I have to re-view these videos not that the pieces are coming together. Please see my comment below: 1391854

Bringing this forward, one can only speculate how Geithner & Obama used the ESF in their open & covert activities. Remember, they have Carte Blanche authority as mandated by the 1934 Act. Light is just beginning to shine in the ESF rabbit hole.

Wed, 06/22/2011 - 12:57 | 1392214 spanish inquisition
spanish inquisition's picture

The more I read up on the ESF (who funded the IMF), the more things make sense. Egypt is now playing a dangerous game, I think they know how the IMF operates and is trying to keep their head out of the noose by not accepting funds. So the options are regime change (CIA destabilization / assassination) or invasion at this point (invasion will be difficult now that we are at peak troops).

Wed, 06/22/2011 - 11:26 | 1391889 Lionhead
Lionhead's picture

Thanks for the link. I have to re-view these videos not that the pieces are coming together. Please see my comment below: 1391854

Bringing this forward, one can only speculate how Geithner & Obama used the ESF in their open & covert activities. Remember, they have Carte Blanche authority as mandated by the 1934 Act. Light is just beginning to shine in the ESF rabbit hole.

Wed, 06/22/2011 - 10:37 | 1391666 b_thunder
b_thunder's picture

6.6 billion  or 3 times larger?  no, it'a ONE THOUSAND TIMES LARGER! 

2 wars, countless bailouts, uncontrolled DoD spening, deregulation of commodities markets that let Big Oil and Big Banks steal trillions?

the list goes on...


Wed, 06/22/2011 - 10:43 | 1391696 Out9922
Out9922's picture

This did make it available for me to buy some cheap Silver

Wed, 06/22/2011 - 13:15 | 1391671 nevadan
nevadan's picture

This link is from the last posted Things that make you go Hmmm.  While we are on the subject of large sums of money mysteriously floating around somewhere.  TTMYGHm is getting to be one of my favorite reads here on ZH

Wed, 06/22/2011 - 10:42 | 1391690 Madcow
Madcow's picture



Wed, 06/22/2011 - 10:39 | 1391694 Bastiat
Bastiat's picture

The thieves are most grateful to all the American soldiers who died and were maimed in their service ... and sorry about all that Iraqi civilian "collateral damage" too.

Wed, 06/22/2011 - 11:03 | 1391795 svendthrift
svendthrift's picture

Yes. Exactly. Money is just money (can always print more!). We've lost thousands of good young men for Israel in Iraq. We've killed or caused the death of about 1,000,000 Iraqi's, who are human too. If there is a god, we best duck.

Wed, 06/22/2011 - 13:14 | 1392277 Bastiat
Bastiat's picture

God or no God, the fruits of evil are poison.

Wed, 06/22/2011 - 10:39 | 1391697 Shell Game
Shell Game's picture

It never f'cking ends. It's a napalm morning..

Mother of all Napalms + .Gov = government DEconstruction plan.

Wed, 06/22/2011 - 10:40 | 1391699 dcb
dcb's picture

this should be the front page on every major news paper in america

Wed, 06/22/2011 - 10:51 | 1391748 ReallySparky
ReallySparky's picture

dcb...Every mojor news paper in America is controlled by the those that have all that money.

Wed, 06/22/2011 - 10:57 | 1391785 Shell Game
Shell Game's picture

Control of information and money are the tools of tyranny.

Wed, 06/22/2011 - 10:41 | 1391706 jowenchrist
jowenchrist's picture

I'd have a drink if there were enough around - and there's never enough - cocksucking politicos -

We rocked this shithole county in the 60's - and now we're as lame as we can be - shame on us - and the newer generations are entirely clueless -

Wed, 06/22/2011 - 10:49 | 1391740 Joe Davola
Joe Davola's picture

Liquidity crises everywhere one turns.

Wed, 06/22/2011 - 10:47 | 1391717 NumberNone
NumberNone's picture

Thank goodness we run tighter controls on children lemonade stands than we do with billions of dollars shipped to Iraq. 

Wed, 06/22/2011 - 10:49 | 1391723 Bansters-in-my-...
Bansters-in-my- feces's picture

Time for you americano's to tear that fed building down block by block....

Wed, 06/22/2011 - 10:47 | 1391729 JR
JR's picture

The Fed, conceived in secrecy, continues to operate in secrecy. For years the Fed has expanded its power by operating in almost total secrecy. 

Napoleon Bonaparte -- “When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”

Wed, 06/22/2011 - 12:47 | 1392186 citta vritti
citta vritti's picture

Nappy was just pissed he had to answer to someone to wage his version of world domination, which means he lacked the means. So, who do you want running things, Napoleon or Rothschild? neither of course, but good luck with that. 

Wed, 06/22/2011 - 16:11 | 1392978 TheMerryPrankster
TheMerryPrankster's picture

Interesting choice or families, Napoleon and Rothschild. Rothschild financed the war against Napoleon by loaning money to the Brits. They claim it was the last time they were directly involved in the outcome of a war. Their network of agents and couriers was so good, the Rothschilds in London  knew of Napoleons defeat a day before the British empire in London knew. They did trade on that information.

Wed, 06/22/2011 - 10:51 | 1391733 oogs66
oogs66's picture

maybe they could publish the prices paid on all the treasuries they have bought?

Wed, 06/22/2011 - 10:49 | 1391742 RossInvestor
RossInvestor's picture


When are you going to link Geithner to this loss/theft?


Wed, 06/22/2011 - 10:50 | 1391746 Eireann go Brach
Eireann go Brach's picture

Perhaps a red flag maybe the homeless Iraqi people and local hookers driving around in BMW's..maybe even the SEC might catch that?

Wed, 06/22/2011 - 10:56 | 1391753 Bastiat
Bastiat's picture

I doubt more than a small handful of Iraqis got any of it--and those few who some didn't get much.

Wed, 06/22/2011 - 10:51 | 1391747 ILikeBoats
ILikeBoats's picture

Isn't the biggest part of the scandal that the Fed has no right to print money, only the Treasury has the ability to actually issue currency? So did the Treasury authorize this or not?

Wed, 06/22/2011 - 10:59 | 1391755 Unholy Dalliance
Unholy Dalliance's picture

Actually, this isn't the largest theft in history*. That honour goes to the funds intended for the refunding of the US dollar which have never reached the US Treasury - in fact, the US Treasury have been spurning this refunding since 2006 because if the line items of the refunding protocol were paid the FRS along with its member/owner banking institutions would be unable to continue their banking/trading operations. Not just bankrupted but outlawed - which they effectively already are, anyway.

*Biggest planetary 'heist': US$4.7 trillion

 The late Chris Story was the owner and editor of He was tragically murdered by 'a person or persons unknown' - probably by one of the US intelligence cadres by poison administered clandestinely on his last visit to New York (where he had an apartment) in March 2010. He died on 14 July 2010 - ironically French Bastille Day or Independence Day, if you prefer.

Wed, 06/22/2011 - 10:53 | 1391759 Bansters-in-my-...
Bansters-in-my- feces's picture

"Pentagon officials have contended for the last six years that they could account for the money if given enough time to track down the records"

What a fucking joke....

Fuck you Pentagon.

Rothschilds private army...

Wed, 06/22/2011 - 10:54 | 1391764 williambanzai7
williambanzai7's picture

I hereby link Geithner to this mess...

Wed, 06/22/2011 - 10:57 | 1391780 carbonmutant
carbonmutant's picture

Well this did occur during his tenure...

Which probably explains why the New York FED has been directed to refuse the request.

Wed, 06/22/2011 - 11:26 | 1391870 williambanzai7
williambanzai7's picture

Wed, 06/22/2011 - 13:25 | 1392322 Problem Is
Problem Is's picture

Have you noticed Timmay looks like Weiner from the head up...

Wed, 06/22/2011 - 14:01 | 1392441 Bastiat
Bastiat's picture


Wed, 06/22/2011 - 14:21 | 1392523 Rick64
Rick64's picture

 So what is his reward for all his intentional incompetence. He is promoted to Secretary of Treasury. Is this an accident? Nope. Keep the criminals in the right positions so they can control and perpetuate their fraud at the expense of the citizens.

Wed, 06/22/2011 - 15:37 | 1392863 carbonmutant
carbonmutant's picture

I wonder if it was recycled back into the sytem for a little Off-Balance-Sheet Financing...?

Wed, 06/22/2011 - 11:05 | 1391803 WALLST8MY8BALL
WALLST8MY8BALL's picture

Geithner, the gift that keeps on taking

Wed, 06/22/2011 - 11:19 | 1391854 Lionhead
Lionhead's picture

Bush's first Sec. of the Treasury, Paul O'Neill, who resigned would have many interesting stories to tell. As head of the ESF, only Bush & him could direct the movements in the ESF slush fund. The Treasury Dept. is the culprit here, with Bush/O'Neill only being accountable, which in fact, is no accountability. The FED is likely a foil or distraction here to protect the core mission, the ESF.

OK WB 7, you can add this to your list of things to do. You're never going to run out of material! ;)

Wed, 06/22/2011 - 11:31 | 1391896 williambanzai7
williambanzai7's picture

See above ;-)

Wed, 06/22/2011 - 11:49 | 1391972 Lionhead
Lionhead's picture

Love it! Yes, nothing like putting a tax cheat in charge to a multi-billion dollar slush fund that only he & Obama have control over. A wet dream for the "Thief of Baghdad." Check those bills for his DNA "dew drops."  One just has to love the irony of all the corruption.

Wed, 06/22/2011 - 13:48 | 1392400 karzai_luver
karzai_luver's picture

I would love an hour sitdown with O'Neil off the record.

I think(?) he may have been an honest shooter as has been there in the last 30 years.


Wed, 06/22/2011 - 18:16 | 1393330 Lionhead
Lionhead's picture

Yes, I believe he resigned over deep policy matters, the deficit issues & perhaps the ESF issue. Here's an example on policy:

Eric deCarbonnel has four illuminating videos on his site for all to see mentioned above by the Spanish Inquisition. The last two expose the propaganda efforts in academic & media circles & the Keynesian economic "voodoo" they have conjured up in distorting the finances of the US & global markets. If these were aired on national Tee Vee, the American public would be stunned.

The US gov't, Treasury Dept & Federal Reserve can't regulate the credit default swaps & derivatives because to do so would expose their hands in these areas. They have created something they can no longer control to keep secret. The US gov't is completely out of control.

I hope the ESF issue comes out in detail for the upcoming Presidental election. I believe many minds would be turned in determining their pick for President. The link is:

I believe the story of the ESF, IMF, World Bank & CIA will be the story of this decade. Don't ignore it. After seeing the Bernank this afternoon, you will realize why his half-hearted manner & trembling words belie his weak status as the FED point man. The FED was sold out a long time ago as other's such as Martin Armstrong have posited. Geithner is the "top-banana" now.

Wed, 06/22/2011 - 10:55 | 1391765 carbonmutant
carbonmutant's picture

Turbo Timmay's old stomping grounds

I wonder what his connection is to all this...

Wed, 06/22/2011 - 11:19 | 1391853 the grateful un...
the grateful unemployed's picture

Ron Paul wants to throw open the Feds books, and probably to find out what their role was in Watergate, after those checks in the slush fund were written off a Mexican bank. But then it must have come to light that if he opened that old can of worms that much bigger demons would arise. But how perfect is it, a banking system outside the GAO, which isn't required to open its books, but which has a two way valve with UST? recipe for corruption.

Wed, 06/22/2011 - 10:55 | 1391768 proLiberty
proLiberty's picture

This is not so much theft as it is yet another manifestation of a government that has been allowed to create its own money out of thin air.  You can't call it "theft" when it isn't worthy anything, and in the context of the US federal government, it didn't.  They don't even have to replace what they carelessly gave away.  It was only a few airplanes full of paper FRNs.  It's is not like we will have to defund some vital program if we don't reclaim these FRNs.


Wed, 06/22/2011 - 10:55 | 1391769 Laddie
Laddie's picture

Not that anyone is interested in this but just for historical purposes:

Rabbi Dov Zakheim, dual citizen of Israel and US, former Bush appointee as Pentagon Comptroller from May 4, 2001 to March 10, 2004. At that time he was unable to explain the disappearance of $1 trillion dollars. Actually, nearly three years earlier, Donald Rumsfeld announced on September 10, 2001 that an audit discovered $2.3 trillion was also missing from the Pentagon books. That story was buried under 9-11’s rubble. The two sums disappeared on Zakheim’s watch.

He was Corporate VP at System Planning Corporation, a major player in the "Homeland Security" industry. One of the products that SysPlan sells is the Command Transmitter System, a remote control system for planes, boats, missiles and other vehicles. It's highly customable and configurable to interface with an almost limitless number of vehicle types.

Wed, 06/22/2011 - 11:12 | 1391830 the grateful un...
the grateful unemployed's picture

are you suggesting that those planes which flew into the twin towers weren't actually flown by arab terrorists? i have always wondered about that.

Wed, 06/22/2011 - 12:16 | 1392060 Almost Solvent
Almost Solvent's picture

This Command Transmitter System sounds alot like the Hacker Hellstorm from Michael Moore's Canadian Bacon.


Wed, 06/22/2011 - 10:55 | 1391770 PaperBear
PaperBear's picture

$18BN is chump change.

Wed, 06/22/2011 - 11:00 | 1391774 Silverhog
Silverhog's picture

Boy, nothing would be better than a record high for Gold during Ben's bum blast.

Wed, 06/22/2011 - 11:03 | 1391793 Bastiat
Bastiat's picture

Mass murder, tera-theft, a boot in the face -- the real NWO.  "To Serve Man"  It's a cookbook!

Wed, 06/22/2011 - 11:03 | 1391806 steve.stuart
steve.stuart's picture

cannot they track it  from the numbers on the bill?

Wed, 06/22/2011 - 16:20 | 1393011 TheMerryPrankster
TheMerryPrankster's picture

That would of course require someone to record the serial numbers when the currency was made and at each point of transit. It would also require that someone be in charge of keeping track of the money, since no one was in charge, no one can be blamed. They never wanted to be able to track the money.

It was a deliberate effort to make the money disappear. Its not supposed to be found.

Wake up...


Wed, 06/22/2011 - 11:08 | 1391810 youngandhealthy
youngandhealthy's picture

Whatever color he is...he is right

Wed, 06/22/2011 - 11:05 | 1391813 equity_momo
equity_momo's picture

Piles and piles of shrink-wrapped US dollars came here, but the cash coming in is not the important part - it is what happened to it after [it got here].


Headed to Switzerland and was converted into Gold. Next.


Wed, 06/22/2011 - 11:08 | 1391818 dexter_morgan
dexter_morgan's picture

At first blush sounds like a lot of money.......but kind of a drop in the bucket. Neverthless, heads should roll.

Wed, 06/22/2011 - 11:12 | 1391829 InconvenientCou...
InconvenientCounterParty's picture

Obama sent it to Kenya. ROLMFAO!

Oh pardon me, I was just informed that this criminal activity occurred with the GOP in charge. gimme a minute..... (fishes a cheeto from between oily sofa cushions)

(With a blinding flash of a 14W CF bulb and big orange smile....)

The Joos did it!

Wed, 06/22/2011 - 11:16 | 1391833 shortus cynicus
shortus cynicus's picture

It is not so bad if we realize that no real money were lost, it's just printed paper, it's our illusion of money.

After peak-credit was reached, it's time for really big hercules-drop operations to make ponzi going on.

1% of population is getting wealthier? But what a REAL CAPITAL (!!!) gains do they have?

The only capital increased in US are new indebted young slaves with college degree. But we have already enough slaves, so it's no real gain.

Wed, 06/22/2011 - 11:13 | 1391837 the grateful un...
the grateful unemployed's picture

most of that money flowed back into GOP slush funds. you want to know, send Tom Delay to GITMO

Wed, 06/22/2011 - 11:23 | 1391858 the grateful un...
the grateful unemployed's picture

obviously you don't want to know

Wed, 06/22/2011 - 11:22 | 1391848 Broomer
Broomer's picture


Billions and billions of dollars.


Wed, 06/22/2011 - 11:31 | 1391898 plocequ1
plocequ1's picture

< Kurtz>

The horror. The horror


Wed, 06/22/2011 - 11:18 | 1391851 Rodent Freikorps
Rodent Freikorps's picture

Medicare fraud is over $60billion/yr. and no one seems to care.

Wed, 06/22/2011 - 11:22 | 1391852 medicalstudent
medicalstudent's picture

'we've traded the gold standard for the phd standard'


jim grant is the shit.


bloomberg is the only station worth watching.


this world is pathetic.

Wed, 06/22/2011 - 11:21 | 1391864 svendthrift
svendthrift's picture

There is no station worth watching.

Wed, 06/22/2011 - 16:29 | 1393043 TheMerryPrankster
TheMerryPrankster's picture

We are programmed only to receive. All data has been sanitized, manipulated and massaged prior to release for broadcast. They all sing the same song, just a different key.

All news is now, there is no historical context, there is no current context, experts are not identified, merely their association with some multi letter abbrievated agency/company/university.

There is no attempt to provide understanding merely an attempt to drown you in useless information until your attention wanders somewhere else, hopefully to American Idol or other droll useless puppet theater.

We are programmed only to receive.

Turn off the receiver. It is a tool of control.

Wed, 06/22/2011 - 11:22 | 1391856 Cthonic
Cthonic's picture

Every Federal Reserve Note carries a year and serial number (which incorporates the district).  Highly doubtful they don't know the exact composition of what left the warehouse.  They should disclose the list and declare them null and void.

Wed, 06/22/2011 - 11:22 | 1391869 Zer0henge
Zer0henge's picture

That's because the thief was the fed itself...and what Iraqi had an account at the fed at that time?  Saddam Hussein?  Try No one.  What a laugher.

Wed, 06/22/2011 - 11:34 | 1391907 Beau Tox
Beau Tox's picture

They used it to print 1,000,000,000,000,000 physical Iraqi Dinars in large and small denominations, of which about half was shipped back to Federal Reserve NY.  Waiting for the end of the Section 7 sanctions.

Wed, 06/22/2011 - 11:30 | 1391910 Green Horse
Green Horse's picture

They're keeping quiet until Colonel Lynch finds the A-Team.

Wed, 06/22/2011 - 11:40 | 1391937 PulauHantu29
PulauHantu29's picture

Thousands of bricks of shrunk-wrapped $100 bills are probably sitting in bank vaults in Switzerland and Caymans...

What a coincidence....mmmmm.

Wed, 06/22/2011 - 11:44 | 1391968 waterhorse
waterhorse's picture

What does one have to do to sue them?

Wed, 06/22/2011 - 13:18 | 1392304 silverman
silverman's picture

Lemme see, how does one file suit against those who own the courts? I'll call Kagan. Get back to you in a minute.

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