Step Aside Greece: How Gustavo Piga Exposed Europe's Enron In 2001 - Focusing On Italy's Libor MINUS 16.77% Swap; Was "Counterpart N" A Threat To Piga's Life?

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Anonymous's picture

wow - zerohedge might consider itself a walking deadblog (a threat to the entire internet) if this type of overzealous research keeps turning up.

Harbourcity's picture

Hopefully they don't use Microsoft Windows.



Anonymous's picture

Maybe Tyler will sustain a fatal accident within the near future.

Anonymous's picture

That would have repercussions.

Harbourcity's picture

I take offense at the repeated accusations of Goldman Sachs shady deals - didn't you hear Obama?  These are smart guys, they deserve their bonuses.


john_connor's picture

Awesome article.  Thanks.

"This implied that at maturity sovereign borrower M paid to counterpart N a much larger amount, 38.668 trillion unis (200 times 193.44 billion), than what it would have paid in a regular cross-currency swap entered into at the market exchange rate.

Finally, the currency swap contract required sovereign borrower M to pay, semiannually starting in 1997, on a uni-notional amount of JPY 200 billion times the 193.44 agreed exchange rate, the uni’s Libor rate minus 1,677 basis points (16.77%)."

So counterparty N (presumably Goldman) gave Sovereign M additional cash flow during the years leading up to Euro zone treaty and then got a gangster like payout (relative to market exchange rates) on the swap after the treaty was enacted.

ROTFL LMAO.  Just a complicated way of pulling synthetic positive cash flow forward, out of thin air.

And this:

"In other circumstances it might be tempting to establish a connection between public support for a failing counterpart and its special relationship with the government."

Yeah, no sh!t.  And also add another counterparty (AIG) to insure against catastrophic loss suffered by counterparty N.  The tertiary counterparty would also be covered by Sovereign A, the biggest sovereign of all, on the backs of unwitting taxpayers.

What a phuckin' joke!

Tick Tock, Tick Tock.

As an extension to the above, how many of these types of transactions have occured after the EuroZone was created, especially in the last decade, allowing the Euro to appear stronger than it actually is, and thus allowing for a stealth devaluation of the dollar.

Anonymous's picture

I wonder who that counterparty N was. I was hoping to find out by the end of the article. The article seems to automatically switch from counterpart N to Goldman, only because of the greece fiasco and not any evidence from the article.

"goldman" swaps. I think thats the new name for that try of swap.

tom a taxpayer's picture

At first, I thought the N counterparty would be "Ndrangheta" (Calabrian Mafia). However, I am now leaning towards Goldman Sachs.

What is the difference between "Ndrangheta" (Calabrian Mafia) and Goldman Sachs?

The national government of Italy  denies support of "Ndrangheta" (Calabrian Mafia).

The national government of U.S. openly supports of Goldman Sachs.

Anonymous's picture

it is noteworthy that Gustavo still lives and is not too worried about keeping what he "discovered" to himself. IDEA - perhaps Gustavo revealed and is still revealing what he is told to reveal?

CombustibleAssets's picture

Gustovo is "protected" by counterparties.

Anonymous's picture

ZeroHedge - I will have to ask you to stop posting all these awesome findings. I leaves very little time for a social life.

Joking aside, awesome find guys. Keep up the great work.

DoChenRollingBearing's picture

When I started reading the article, I too was curious about Counterpart N...

Anonymous's picture

I hope when this thing blows up it leads to riots

35Pete's picture

God I hope not. Bro, we don't want riots. Trust me. 

Anonymous's picture

On the other hand, I want riots.

CombustibleAssets's picture

It's hard to profit from anarchy.

jeff montanye's picture

it is hard to profit during anarchy.

Anonymous's picture

No riots, riots are good for making the state criminals look like the good guys.
People should make their voices heard, take these criminals of their posts, replace them, expose their dirt, have them encarcerated until they reveal all they know.

Crab Cake's picture

Goldman Sachs, the Council on Foreign Relations....grrrr....

I'm near my breaking point.  America's middle class is being liquidated.  They are dumping misery and impoverishment on billions of people, and it's not because there aren't enough resources, it's because TPTB want more.  They want more power more money, MORE, MORE, and MORE.

The Fed, the corrupted Republicans and Democrats, the ratings agencies, the aristocrats who run the huge corporations, the bankers, the CFR, the Bilderberger group, the Trilateral commission....


Somebody please, line these people up and pull the trigger.  What is it going to take for the good people of this country to say no more, and stop believing the lies.  Do we really have to go Joe Stack on them?  Do we really have to fire bomb their homes?  Must we stom the Fed offices and execute everyone in sight? 

Can this not be done peacefully?

I feel physically sick.  I feel so trapped.  I'm damned if I continue to play along as the oligarchs squeeze my generation and my kids generation into dust.  I'm damned if I go to war and leave my family stranded without a father.  WTF?! 

Can we not just stand as one, and say no more?  That's all it would take.  We just stop working, stop investing, stop spending, and stop paying taxes.  If we do this together, they will have no recourse but to bow to our demands.

I have to turn the computer off for awhile...

MsCreant's picture

I'm feeling it too Crabcake. For those of us who have given ourselves permission to delve into these issues, it is really painful. You could give a fuck about someone else saying you are not alone, I am in exactly the same place you are, but hey, you aren't and I am.

I have not read this particular piece yet, because I know I'm peeking down another Rabbit hole and I am asking myself "What do I need to get done today before I do this to myself." I can tell from the comments I am going to wait until this evening and a glass of wine.

I wish I had the guts to not pay my taxes. If my brothers and sisters were doing this all over the country, I'd join.

Our problem is we want to follow the rules. They don't. We need to find a way to enforce the rules that exist, and I actually think we would be okay enough.

Okay... I've fucking got it.


This shit storm is driven by money, it will take money to motivate some real COPS to move on these fraudsters.

If I really thought it would work, I'd donate a lot of money (for me any way) to it.


Prosecutions, Bitches.


Lndmvr's picture

Maybe it starts with " An army of one?"

assumptionblindness's picture

Where are the whistleblowers?  Oh, I know where they are.  They're giving Mr. Hoffa some company.  

It's pretty obvious that there aren't any cops on this beat, only criminals.

tip e. canoe's picture

Where are the whistleblowers? 

serving 40 months at FCI Schuylkill

(or afraid to join him)

Anonymous's picture

Talk about Wall St/Washington corruption. They are sending a clear message to whistle blowers everywhere, AIG, GS, FED, Treasury etc, etc.

Shame on America.

geopol's picture

Discuss this if you will,,

On Tuesday Feb. 23, Iran announced the capture of Abdulmalek Rigi, the boss of the terror organization Jundullah, which works for NATO. The capture of Rigi represents a serious setback for the US-UK strategy of using false flag state-sponsored terrorism against Iran and Pakistan, and ultimately to sabotage China’s geopolitics of oil. The Iranians claim to have captured Rigi all by themselves, but the Pakistani ambassador to Teheran is quoted in The Dawn as claiming an important role for Pakistan. The Iranians say that Rigi was attempting to fly from Dubai to Kyrgystan, and that his plane was forced to land in Iran by Iranian interceptors. This exploit recalls Oliver North’s 1985 intercept of the accused Achille Lauro perpetrators, including Abu Abbas, forcing their Egyptian plane to land at Sigonella, Sicily. But other and perhaps more realistic versions suggest that Iran was tipped off by the Pakistanis, or even that Rigi was captured by Pakistan and delivered to the Iranians.

Jundullah, otherwise known as the Rigi organization, is a clan-based Mafia organization that has long infested the Iran-Pakistan border. The Rigis are traditionally smugglers and drug pushers of royalist persuasion, and now they have branched out into terrorism. Jundullah is mounting a Sunni rebellion against the Shiite Iranian regime in Iranian Baluchistan. They have blown up a Shiite mosque, killing 25, and managed to kill 50 in a bombing in Pishin last October, where their victims included some top commanders of Iran’s Revolutionary Guard, against which Mrs. Clinton has now declared war. There is no doubt that Jundullah is on the US payroll. This fact has been confirmed by Brian Ross of ABC News, the London Daily Telegraph, and by Seymour Hersh in the New Yorker. Hersh noted that Jundullah has received some of the $400 million appropriated by the US Congress in the most recent Bush-era regime change legislation targeting Iran.

Jundullah is a key part of the US-UK strategy of fomenting ethnic and religious civil war in both Iran and Pakistan. Jundullah is a twofer in this context, since it can help destabilize both sides of the Iran-Pakistan border. Baluchistan has special importance because any oil pipeline linking Iran with China must go straight across Baluchistan. Jundullah’s false flag jihad is a means to make sure that strategic pipeline, which would help solve China’s energy problem, is never built.

There is also no doubt that Jundullah functions as an arm of NATO, a kind of irregular warfare asset similar in some ways to the KLA of Kosovo. Rigi is reported by the Iranians to have met with Jop de Hoop Scheffer when he was NATO Secretary General. Rigi has also met with various NATO generals operating in Afghanistan. Who knows — he may have met with McChrystal himself, a covert ops veteran from Iraq.

This capture comes at a moment when Baluchistan is the object of intense US-UK exertions. The current US-NATO offensive in southern Afghanistan targets Marjah and the rest of Helmand province, which directly faces Baluchistan. Many observers were puzzled when the US and NATO publicized the Marjah offensive in advance. Militarist talking heads like General Barry McCaffrey responded that the main goal of the Marjah offensive was not to destroy the Taliban, but to drive them out of the province. It was thus clear from the beginning that the real goal was to drive the Helmand Taliban fighters into Pakistani Baluchistan. Why?

A statement from the Afghan Taliban covered on the RIA Novosti web site suggests that the real goal of the US-NATO offensive in Marjah-Helmand is to attack Chinese economic interests in Pakistani Baluchistan, and especially the port of Gwadar, one of China’s largest overseas projects. If the US can push the Taliban into Pakistani Baluchistan and into the area around Gwadar, they will have a pretext for militarization – perhaps through Blackwater mercenaries, who are already operating massively in Pakistan, or perhaps through direct US military involvement in the zone. US jackboots on the ground in Baluchistan would interfere mightily with Chinese economic development plans. They would also allow the US to commandeer Gwadar as the home port of a new NATO supply line into southern Afghanistan, allowing the avoidance of the Khyber Pass bottleneck. The US could also use Baluchistan as a springboard for bigger and better terror ops into Iran, electronic surveillance of Iranian activities, and so forth.

The US and NATO had evidently planned a double envelopment of Baluchistan, with Taliban fighters from Helmand arriving from the north, while the Jundullah escalated their own activity on the ground. Now that Rigi has joined his brother in Iranian jails, Jundullah has been decapitated, and the NATO strategy has consequently been undermined. Iran has bagged a dangerous terrorist foe. Another winner is Pakistan, where The Dawn celebrated the capture of Rigi as “a godsend” and “a lucky break” for Pakistan. By helping Rigi to fall into Iranian hands, Pakistan may have finally found an effective way to counter the US-UK strategy, which notoriously aims at the breakup and partition of Pakistan. The coming Iranian trial of Rigi may go far towards exposing the real mechanism of terrorism in today’s world, with the CIA sitting in the dock next to Rigi.

Is America what you think it is?????

JR's picture

Tonight, geopol, you have posted the kind of report that qualifies as protection of our liberties, that will not be seen in the main stream media, and is the perfect example of why new media is taking the place of the media monopoly and its five corporate owners; this is the type of analysis that is essential to the survival of the American system. 

geopol's picture

Just another data point not worth noting by the MSM....


The Detroit Christmas bomber was deliberately and intentionally allowed to keep his US entry visa as the result of a national security override issued by an as yet unknown US intelligence or law-enforcement agency with the goal of blocking the State Department’s planned revocation of that visa. This is the result of hearings held on January 27 before the House Homeland Security Committee, and in particular of the testimony of Patrick F. Kennedy, Undersecretary of State for Management. The rickety US government official version of the December 25 Detroit underwear bomber incident, which has been jerry-built over the past month and a half, has now totally collapsed, and key elements of the terrorism-spawning rogue network inside US agencies and departments are unusually vulnerable to a determined campaign of exposure.

These developments decisively confirm the analysis offered by the present writer in a Dec. 28, 2009 television interview on Russia Today.1 On that occasion, my estimate was that Mutallab was a protected patsy being used by rogue elements of the US intelligence community for the deliberate and intentional creation of a high profile incident with the goal of obtaining a large-scale political effect. On January 4, Richard Wolffe reported on the MSNBC Countdown program that the Obama White House was investigating whether the Detroit Christmas incident had been “intentionally” created by an intelligence network with an “alternative agenda.”2 It was in this report that Wolffe posed the alternative of “cock-up or conspiracy.”3 Unfortunately, Obama opted for the screw-up version on January 5.

Based on what was already known a few days after this incident, it was clear that normal screening and surveillance procedures had been scrapped and aborted in order to allow the youthful patsy Umar Farouk Abdulmutallab of Nigeria to board his flight from Amsterdam in the Netherlands to Detroit. Mutallab’s father, a rich, well known, and reputable Nigerian banker had gone to the US Embassy in his country and formally warned a State Department official as well as a CIA representative that his son was in Yemen and in all probability consorting with terrorists. Under normal circumstances, this report alone would have been more than enough to get Mutallab’s US visa revoked in the same way he had already been denied entry to Great Britain. He also would normally have been placed on the no-fly list, thus setting up two insuperable obstacles to getting on his Detroit bound flight and winging off to produce an incident which caused several weeks of public hysteria in this country, completely with demands for body scanners in airports. In addition, the US intelligence community had reports that a Nigerian was training with the purported “Al Qaeda in the Arabian Peninsula” in Yemen. Obama had called a December 22 meeting with top CIA, FBI, and DHS officials because of reports of a terrorist attack looming during the Christmas holiday.

The January 27 hearings of the House Homeland Security Committee were also addressed by Michael Leiter, the AWOL Director of the National Counterterrorism Center, along with Jane Holl Lute, the Deputy Secretary of Homeland Security, who was sent in place of HHS Secretary Janet Napolitano, who boycotted the hearings. But the important testimony came from Kennedy, whose responsibilities include Consular Services, and therefore visas. In his opening statement, Kennedy offered a tortured circumlocution to describe what had happened. Attempting to head off the question of why the State Department had not revoked Mutallab’s visa, Kennedy stated: Continue reading State Department Admits: Detroit Christmas Bomber Was Deliberately Allowed to Keep US Entry Visa, Board His Flight

Hephasteus's picture

I hope they make this all crystal clear. So the american people can think twice about cooperating with our home grown psychopaths.

jeff montanye's picture

so true, so true.  wish we would have followed general marshall's advice to truman.

Anonymous's picture

Ummmm. I remember back when this was a blog people were stating that "airport security is unnecessary, its all a false flag"...

So, what is it? False flag, conspiracy, or govt failure?

Looks like you chose 'conspiracy'. After the fact.

If only we all had the anger and hindsight you do.

Or not, cause if there were no irrational anger this website would be dead.

Your move.

geopol's picture


My post,,,Historically

Nothing after the fact..Enjoy

The case of Umar Farouk Abdulmutallab is not a matter of unconnected dots, but rather that of a protected patsy or puppet deliberately used by the US intelligence community for a Christmas Day provocation designed to facilitate US meddling in the civil war in Yemen, which is where Umar Farouk allegedly trained and was given his PETN device. Banker's son Umar Farouk had been denied an entrance visa to Great Britain and had been denounced to the US Embassy in Lagos, Nigeria as a possible terrorist by his own father in mid-November. His one-way ticket to Detroit was bought in Ghana for $2800 in cash, and he reportedly entered Nigeria illegally. In Amsterdam, he was assisted at the Northwest Airlines gate by a "well-dressed Indian" who explained that Umar Farouk had no passport. He did have PETN, the same substance supposedly used by the mentally impaired shoe bomber Richard Reid in his abortive attack of eight years ago. In spite of all this, Umar Farouk's US entry visa was never revoked, he never made it onto the no-fly list, and he was never thoroughly searched. These egregious lapses in normal procedure show that Umar Farouk was part of an orchestration sponsored by the CIA, which has now yielded 4 solid days of media hysteria. Obama has formulated his new version of the Axis of Evil, composed of Afghanistan-Pakistan, Somalia, and Yemen. In Yemen, a civil war pits the Saudi-backed central government against the Iranian-backed Shiite Houthi rebels, whom the US has bombed at least twice this month. The goal here is to play Iran against Saudi Arabia so as to weaken both the pro-Moscow Achmadinejad government in Iran, and also those Saudi forces that are fed up with their status as a US protectorate. The US is openly now sponsoring a regroupment of "al Qaeda" (the CIA Moslem legion) in Yemen, including by sending fighters direct from Guantanamo. The new CIA-promoted entity synthetic entity is "Al Qaeda on the Arabian Peninsula" or AQAP, a gaggle of US patsies, dupes, and fanatics which is claiming credit for the Umar Farouk incident. The US hopes to further dominate the exit from the Red Sea and the Suez Canal, while also easing pressure on the battered US dollar by jacking up the price of oil in an atmosphere of tension on the Arabian peninsula.

Anonymous's picture

Yes! awesome, can I call you a 'neo-truther'?

geopol's picture

The fact the you understand it, is enough for me....




Anonymous's picture

Wow, double great stories and insights, and they help illustrate what a small play the thermate used to implode the steel framed buildings was for men of such cunning.

macfly's picture

Wow, terrifying, and so sad. We really are the evil empire. Helps me better understand the callous use of thermate to implode three steel framed sky scrapers.

delacroix's picture

the one way ticket factoid, has been refuted.

Anonymous's picture

Yes, pretty much....except the guff about "cutting off China's oil". Recall that the Iraq war was, according to the the Left, "about oil" too. Not. About the security of Israel, as events have proved. Ditto the de-stabilization and eventual ZOG war on Iran.

geopol's picture

For her Jan. 29 speech at the Ecole Militaire in Paris, Mrs. Clinton was evidently wearing that stylish new French perfume from the House of Sarkozy called Chantage – meaning blackmail. Mrs. Clinton gloats because she thinks she has the Chinese leadership in a bind. As she stated, she knows that China increasingly depends on oil from the Gulf. She demanded that China vote for crippling sanctions against Iran in the UN Security Council this month, while Sarkozy — the craziest of all western leaders against Iran — controls the presidency of that body. For China, approving crippling sanctions against Iran means in all probability the loss of 10% to 12% of its oil imports, the aborting of some $80 billion in development projects by Beijing in Iran, the sacrifice of hundreds of billions of dollars worth of oil which the Chinese have locked in via futures contracts, and, above all, a farewell to the best chance of getting a secure overland oil pipeline far away from the US-UK fleets — the pipeline from Iran via Pakistan into China.
If the Chinese fail to captitulate on this point, Mrs. Clinton darkly hinted, the US would no longer restrain the Israelis, who might then launch their long-threatened air attack on Iran, which the US has emphatically vetoed over the past two years. At that point, the Iranians would try to interdict Gulf maritime traffic and close the strait of Hormuz, meaning that about a third of China’s oil could be cut off. (The other 20% comes from Saudi Arabia.)
The US-UK elite is in a state of collective hysteria about the growth of Chinese economic power. China is now the largest exporter in the world, and officially about to become the second largest economy, passing Japan to challenge the US.
The US is way behind China in fast rail, and will soon fall behind in modern nuclear energy production. China is clearly aiming to put astronauts on the moon, but the Obama-Orszag NASA budget makes clear that the US is going nowhere when it comes to manned space flight. If US elites really want to keep pace, they should put aside their feckless attempts to contain China by subversion, economic warfare, and fomenting conflicts in the Guif and on the India-China border. Match the Chinese programs in nuclear reactors, fast rail, and manned space flight, or prepare for the status of has-been.
But for right now, the Iran attack scenario, which had been pushed to the back burner by the US National Intelligence Estimate of December 2007 — which stated that there was no Iranian nuclear weapons program — is once again operational, this time as a means at striking at China’s oil supply.

macfly's picture

Oh hell, they're going to play the war card aren't they?


It is the only way they'll unite a widely discontented populace, finding a common enemy. There has been a lot of provoking China lately, something I fail to grasp having always believed you don't bite the hand that feeds you. China could do to us what our bankers did to Germany in 1922-3, and the results could play out the same way, with us ending up with a ferociously nationalistic uniter, who will lead us into the jaws of MAD. 


Interesting times indeed.

Anonymous's picture

Interesting words. But just a reflexion, dont bite the hand that feeds you? Seems to me that's China's problem here. If China got bitten, they can kiss goodbye to their hand.
Maybe more cautious for China to have this in mind. And to have looked at the jaws of the animal they feed. I suppose they have this in mind as in the western world in general and in the US, I have been impressed by the high level of mob mind existing against China. The populace only asks for a pseudo reason to turn against China.

GoldSilverDoc's picture

Read about Gandhi.  Read about the salt.

caconhma's picture

This is why I have a great admiration for the Great French Revolution. In just a few years, dying France became a great country.

Regardless who Obama is (marxist, socialist, welfare-lover, etc.), he is a totally incompetent POS leading the USA and its people to a slaughter house. Unfortunately for us, the US Congress is terribly corrupt. 

Oracle of Kypseli's picture

Counterparty "N" Humm!

I am going to repost my "what if" question.

What If: The Financial Glitterati of the US, utilizing the "Calamari Cartel" and "The house of Morgan" are conspiring to control the rest of the world in order to hide their own mess and in the process enslave everyone else?

What if: Greece was selected by the speculators to be the first for default because of its size, instead of Italy?

Is the spaghetti cartel conspiring with the calamari cartel?

Can someone tackle this?

Getting hungry talking like that.

Anonymous's picture

OK, someone must be able to explain this post in 10 - 20 sentences for the ones who try - but have problems - to understand exactly what is going on. Thanks in advance.

truont's picture



TD:  "First, governments have clear incentives to cook the books. The EU continues to impose fiscal expenditure restrictions on eurozone governments, violation of which can result in censure and fines. The International Monetary Fund imposes fiscal conditionality on its client governments, which naturally have a strong incentive to keep the Fund from closing the money spigot. Derivatives can be used to shuffle cash flows through time in ways that current accounting rules do not prevent.

Second, banks are only too willing to market derivatives tricks to their big client governments, particularly when it puts them at the front of the queue for future bond issues and privatisations.

Third, if the integrity of government financial data is fatally undermined, the damage to stock and bond markets will dwarf the "Enron effect" that has recently pummelled the Dow."

MsCreant's picture

I have not read the article, when I think it is going to be "involved" I will sometimes scan the comments for context clues to help me.

I could hug you right now. Thanks.

Shorter version: Everyone is cooperating to kite everyone's checks. If they never "land" no one gets in trouble. Margin calls make balls come out of the air and money stand still for counting. This is what the collapse will really be.

Anonymous's picture

As such, and I would prefer CD to comment on this, what is the worth of this website? The community that bashes people or a community that learns based upon a website that challenges itself?

I have to say mscreant, you are guilty of having the same tendencies that many perceive 'will take this country down'.

Just like fox news, is this a community or an evolving news source? It will be y'alls call.

Sometimes effort is required to form your own opinion.