Presenting The Exchange Stabilization Fund In 5 Parts: Is This The Real "Plunge Protection Team"?

Tyler Durden's picture

When it comes to the fabled President's Working Group on Capital Markets, also known as the Plunge Protection Team, the myths about the subject are certainly far greater than any underlying reality. To be sure, vast amounts of popular folkflore has been expounded into the public arena, with most of it being shot down simply due to it assuming conspiracy theories of such vast scale that the human mind is unable to grasp the complexity, and ultimately the inverse Gordian Knot makes an appearance with the claim that vast conspiracies are largely untenable simply because it is impossible to keep a secret from so many people for so long. Yet what if the secret is not a secret at all but is fully out in the open, and is only a matter of interpretation, and contextualizing? Why just 3 years ago it would appear preposterous to allege the capital markets are a ponzi and that the Fed does everything in its power to keep stocks higher. Well, what a difference three years make: now the Chairman himself in a Washington Post OpEd has admitted that the sole gauge of Fed success is the loftiness of the Russell 2000, neither unemployment nor inflation really matter now that the Fed's third mandate has been fully whipped out. Furthermore, Keynesian economics, and the entire top echelon of the educational system have also been accurately represented as a paradigm which merely perpetuates the status quo as the alternative is the realization that the whole system is a house of cards. As for the global capital markets being nothing short of a ponzi, we merely point you to the general direction of Europe, the ECB and the continent's banks, where the monetary interplay is nothing short of the world's biggest pyramid scheme. Yet the PPT, or whatever it is informally called, does not exist? Consider further that only recently did it become known that the former SecTres Hank Paulson himself was exposed as presenting material non-public information to a bevy of Goldman arb desk diaspora hedge funds, headed by with none other than the head of the President's Working Group on Capital Markets Asset Managers committee David Mindich. So, if contrary to all the evidence that there is some vast underlying pattern, if not a conspiracy per se, one were to take the leap of faith and take the next step, where would one end up? Well, most likely looking at the Exchange Stabilization Fund, or ESF, which Eric deCarbonnel has spent so much time trying to unmask. Is it possible that the ESF, located conveniently at the nexus between US monetary policy, foreign policy and last but not least, a promoter of the interests of the US military-industrial complex, is precisely the  organization that so many have been trying to expose for years? Watch and decide for yourself.

As a reminder deCarbonnel is not some tinfoil hat clad sub-basement dweller - it was his input that led us to the realization that in attempting to control the Treasury curve, the Fed will, and already has, experiment with selling puts on various Treasury maturities in an attempt to generate reflexivity whereby the synthetic determines the value of the underlying (something ETFs are now doing so very well), the value naturally always being higher, higher, higher irrelevant of what underlying demand there is (and as we showed last week, with a record amount of international outflows in the past month, the demand, at least from abroad, is just not there). So what does Eric assert?

Quite a bit as it turns out.

After months of work, the video series on the Treasury's Exchange Stabilization Fund is finally finished!


Why you should watch these five videos:


It is impossible to understand the world today without knowing what the ESF is and what it has been doing. Officially in charge of defending the dollar, the ESF is the government agency which controls the New York Fed, runs the CIA's black budget, and is the architect of the world's monetary system (IMF, World Bank, etc). ESF financing (through the OSS and then the CIA) built up the worldwide propaganda network which has so badly distorted history today (including erasing awareness of its existence from popular consciousness). It has been directly involved in virtually every major US fraud/scandal since its creation in 1934: the London gold pool, the Kennedy assassinations, Iran-Contra, CIA drug trafficking, HIV, and worse...

So while nursing that New Year's Day hangover, take some time and watch this series of videos. If nothing else, even if they are merely the extended ramblings of some person that one can quickly dismiss as just the latest fringe lunatic, they do present an alterantive reality to what so many may be accustomed to. After all at the end of the day imagination, the ability to think outside the box, and to see patterns where previously there were none, is the greatest threat to the falling and declining status quo by far.

Part 1

Part 2

Part 3

Part 4

Part 5

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Silverballs's picture

NO fucking way happy new year tyler's

flacon's picture

This video series explains why the US Government believes that "deficits don't matter". The reason being that USA can export the inflation to the rest of the world. Good videos. Thanks Eric deCarbonnel.

SMG's picture

Well I think we all need to start talking about the ESF alot more.  Get it's name out there, because it seems like that's exactly what the bad guys don't want.  Very well researched videos, thanks Eric!  Keep up the good work!

Mr Lennon Hendrix's picture

President's Working Group, bitchez!

Executive Order 12631--Working Group on Financial Markets:

Mr Lennon Hendrix's picture

The Exchange Stabilization Fund (ESF) of the United States Treasury was created and originally financed by the Gold Reserve Act of 1934 to contribute to exchange rate stability and counter disorderly conditions in the foreign exchange market. The Act authorized the Secretary of the Treasury, to deal in gold, foreign exchange, securities, and instruments of credit, under the exclusive control of the Secretary of the Treasury subject to the approval of the President.

    Exchange Stabilization Fund:
Sandmann's picture

The ESF was a copy of the Exchange Equalisation Account set up when Britain left the Gold Standard in 1931 and worked within The IMperial Preference Structure which the United States demanded Britain dismantle in 1946 and which caused the Devaluation Crisis of 1947 and major dislocation of the British Economy including rationing on food, furniture and clothing into the 1950s. It is therefore truly ironic that the USA is today driven to use such a fund to shore up its own precarious economic and fiscal position.

Mr Lennon Hendrix's picture

The ESF is run by the NYFRB, which means that little Timmah likely ran that bitch before he became Tres. Sec. that little fucker.

TruthInSunshine's picture

Happy New Year, Zero Hedge & ZeroHedgers!

I don't have time to post specifics right now, but I watched all 5 parts of this just now (part of the reason why I don't have time to post specifics right now), and let me just say this (for now):


This series is the biggest pile of disinformation, which is almost schizophrenic in presentation and its broken, drifting, unrelated rantings, than I believe I've seen in quite a while.

While the guy who compiled this sprinkles a few truths in this documentary (sad one, at that), to apparently try and draw in some, he's essentially making the claim that the ESF is the underlying cause of economic instability and the perpetual government deficits, while The Non-Federal Reserveless Non-Bank is some benign entity, which has Americans' best interests at heart, but which is being thwarted by the ESD (a micro subsidiary of Treasury).

I can't even count the total number of complete and utter factual mistatements (we can know certain things even if we're all still trying to analyze and make conclusions about what is a spider web of deception that we've not yet fully understood in fine detail) that are made in this 'documentary.'

That the produced of this documentary apparently proudly proclaims he's the grandson of one of the individuals present at the 1910 meeting on Jekyll Island, whereby the plans to bring about The Federal Reserve System (and fractional reserve banking Ponzi scheme that is the true heart of our economic and social woes and Matrix-like economy) were discussed and essentially agreed upon being implemented, is the cherry on top of the B.S. meter sundae.

p.s. - Why is this guy begging for donations in his mockumentary? He should just call up The Bernank and send the link to his documentary to Dudley, and ask for a stipend, given that he's casting The Federal Reserve in such a saintly light.

SMG's picture

Thanks for the info TIS.

Get rid of both the Fed and the ESF, and all this secrecy in general.  It's the only way to be sure.  And while we're at it get rid of the whole Oligarchy that started both of them.

Treason Season's picture

Just my humble opinion but this response is one serious load of bullocks. For as long as Eric deCarbonnel has been blogging  I have never read him boasting of his grandfather. As a matter of fact he has disavowed his grandfather's  actions. I also have never once read  Eric begging for donations. The shrillness of this reposte makes me wonder just what all the Truth in Sunshine's hissy fitting is all about it.

Bendromeda Strain's picture

Maybe his "Russian Farmland" deal fell through?

Last_2_Sense's picture

Happy New year to you, yeah I'm with you on this being disinformation sprinkled with truth. Beside talking like a used car salesman, I would have to say my radar went up at "books are bad, you tube videos are good". Though I did like what he pointed out as to the purpose of the supernote, he should have ended the video at "black propaganda is among the most vile." 

zhandax's picture

I wouldn't call it disinformation, but he apparently fails to account for the shift in the balance of power between the fed and the treasury 30 years ago when Volker stepped up and jacked rates to get inflation under control.  I would like to hear an update with this factored in.

Last_2_Sense's picture

Call it disinformation or intentional misdirection, the semantics don't much matter. The Idea that broke and thieving drug users could cause it all to collapse is preposterous. A lot of us know who brings the drugs in, and are not surprised at all that greedy central planners would be in the thick of it, the sketchy nature of that business demands their involvement.  But pointing to the slush fund they use to park the profits made as being the source of the problem smacks of a counter intelligence effort by the FED. All that needs to be taken into account is where the money comes from initially. And then he solidify's his status as a well poisoner with the claims he makes about the AIDS and the HIV virus,  I'm not even sure what point he was trying make, but it was clearly shit. Some of the connections he makes do seem valid and do help to fit more of the puzzle pieces in to place, his underlying message is obviously an attempt to absolve the institution his grand daddy helped create of any blame. I wonder if this has anything to do with the FED's program to track all that is said about it? Maybe they have decided to take a more proactive approach considering all the connections being made on sites like ZH.        

Doña K's picture

I would like to simply offer the notion that without overconsumerism, 30 year financing traps to buy what you do not need and discouraging savings, plutocrats will not be able to bankrupt most people.

zhandax's picture

I guess I need to watch this again.  I first saw it in June (there were only three videos then) and sent the links to a few friends.  I found the email and this was the note I used to preface it, "I think this may have been prepared by a federal reserve washout.  I firmly believe that the fed would have done the same to the dollar as the ESF but was beat to the punch.  I can't buy their 'poor abused fed' line.  Interesting, obscure, and valuable stuff, anyway."

Unless you were already aware of the ESF, I still think this is valuable material.

toothpicker's picture

Looking forward to YOUR 5-part free series to explain the mess we're in

i-dog's picture

I agree with you, in general, TIS. I'd like to go through the 5 videos again more slowly and pull apart the specifics of my objections to it (including pausing many of his quoted articles and congressional records and looking at both the contexts and the sources/speakers) ... but, overall, I am very suspicious of the distraction away from the banks and politicians.

For example, Harry Dexter White was unmasked after WWII as a communist (ie. Vatican) mole who worked with Keynes to prepare the blueprints for the WB and IMF as early as 1940. The other OSS players at the time, 'Wild Bill' Donovan in particular, were also blatant Vatican agents working the globalist agenda. The Treasury had been 'captured' and was being manipulated by the CIA (the DCI "advises" the President and Administration and "filters" information reaching both), not the other way around. (The OSS/CIA have never been working in America's interests, only those of the globalists based outside of the US).

If I find time to go over it again, I'll say more later.


[edit: I see that SilverShield (below) has done a good analysis of the Fed's creation, but he also needs to look into all the senior players in the Roosevelt and Eisenhower administrations who were working against the US national interest to create the globalists' ESF, IMF, WB and WTO ... and the 'cold war'.]

Mr. Mandelbrot's picture

I agree completely.  Complete disinformation.  It was evident half way through part one . . .

Silver Shield's picture

This video series is a clever piece of propaganda designed to divert attention from the real individuals responsible for this power paradigm.  Read....

My Critique of “What I Have Been Afraid To Blog About: The ESF and Its History.”

Smiddywesson's picture

You are very clever.  I will follow your blog.  Well done.

Bendromeda Strain's picture

Twice (once in the article, and once in the comments) you post a link to an essay about the World's Most Dangerous Man that comes up as a 404. Did you pull that post down or something?

Gazooks's picture

Your 'critique', such as it is, isn't quite so clever, and as far as propaganda goes, it's unmistakable.

What you should be afraid about is taking yourself too seriously.

deCarbonnel's hypothesis merits careful scrutiny.


smlbizman's picture

man, it is a whole lot easier being a sheep.....


OPM's picture

The ECBEURO user used to allow comments to be made on their videos, so one day I commented on their video relating to inflation/deflation and price "stability" slating their abuse of the system and how the video was now defunkt considering inflation will soon be rampant. Shortly afterwards comments have been disabled on all of their movers in Dubai videos.

Thomas's picture

Daniel Ellsberg speaking with Kissinger from his book "Secrets"...


"Henry, there's something I would like to tell you, for what it's worth, something I wish I had been told years ago. You've been a consultant for a long time, and you've dealt a great deal with top secret information. But you're about to receive a whole slew of special clearances, maybe fifteen or twenty of them, that are higher than top secret. 

"I've had a number of these myself, and I've known other people who have just acquired them, and I have a pretty good sense of what the effects of receiving these clearances are on a person who didn't previously know they even existed. And the effects of reading the information that they will make available to you. 

"First, you'll be exhilarated by some of this new information, and by having it all -- so much! incredible! -- suddenly available to you. But second, almost as fast, you will feel like a fool for having studied, written, talked about these subjects, criticized and analyzed decisions made by presidents for years without having known of the existence of all this information, which presidents and others had and you didn't, and which must have influenced their decisions in ways you couldn't even guess. In particular, you'll feel foolish for having literally rubbed shoulders for over a decade with some officials and consultants who did have access to all this information you didn't know about and didn't know they had, and you'll be stunned that they kept that secret from you so well. 

"You will feel like a fool, and that will last for about two weeks. Then, after you've started reading all this daily intelligence input and become used to using what amounts to whole libraries of hidden information, which is much more closely held than mere top secret data, you will forget there ever was a time when you didn't have it, and you'll be aware only of the fact that you have it now and most others don't....and that all those other people are fools. 

"Over a longer period of time not too long, but a matter of two or three years you'll eventually become aware of the limitations of this information. There is a great deal that it doesn't tell you, it's often inaccurate, and it can lead you astray just as much as the New York Times can. But that takes a while to learn. 

"In the meantime it will have become very hard for you to learn from anybody who doesn't have these clearances. Because you'll be thinking as you listen to them: 'What would this man be telling me if he knew what I know? Would he be giving me the same advice, or would it totally change his predictions and recommendations?' And that mental exercise is so torturous that after a while you give it up and just stop listening. I've seen this with my superiors, my colleagues....and with myself. 

"You will deal with a person who doesn't have those clearances only from the point of view of what you want him to believe and what impression you want him to go away with, since you'll have to lie carefully to him about what you know. In effect, you will have to manipulate him. You'll give up trying to assess what he has to say. The danger is, you'll become something like a moron. You'll become incapable of learning from most people in the world, no matter how much experience they may have in their particular areas that may be much greater than yours." 

....Kissinger hadn't interrupted this long warning. As I've said, he could be a good listener, and he listened soberly. He seemed to understand that it was heartfelt, and he didn't take it as patronizing, as I'd feared. But I knew it was too soon for him to appreciate fully what I was saying. He didn't have the clearances yet. 

supermaxedout's picture

Great post. Never thought about this. But very interesting.

And it reminded me to something my mother told me once when I was already grown-up and had children myself.

I can not remember the topic why my mother said this to me but what she said stuck for the rest of my life:

She said: Boy, you know what, you can learn something even from the most simple minded man in this world. I tell you this man knows something or is master of something which you dont know or cant do like him. You only have to find out what it is. And it might be very important for you.

This was a very good advice through all my life.

Doña K's picture

Interesting, because my dad told me a similar story. In the early fifties, a neighbor of his who was a stone mason construction worker immigrant from southern Italy with zero education told him that one day the multinationals will control the world and China will become the number 1 economy. Amazing!  

supermaxedout's picture

And I do not hesitate to ask such a person what he thinks,  because he might not come to the right conclusion,  but one aspect in his thoughts might be just the piece of info you are searching for to understand it all.  

spanish inquisition's picture

Here is a reply to both... "See, the key to controling people in power is to let them in on the "big" secret. You manufacture a story with some truth and some made up stuff to elicit a certain mindset. The higher the clearance "above top clearance" it is and the more fantastic the story, the better. It just has to be finished with "You see (Daniel or Henry) the whole Gog Magog thing is true, that is why we need a strong private central bank that controls the whole world. We are really secret agents against Satan and really represent the one true God and are trying to save humanity" Turns out the two of you become the biggest suckers around, doing your job all rightous and all".

Bendromeda Strain's picture

That is hilarious, well played. That whole Gog Magog thing being true becomes ultra classified, illuminated information. The truth does what it has always done, it hides in plain sight.

Gully Foyle's picture

Here is a gem from way back

US Exported 5000 Metric Tonnes Of “Gold Compounds” Over Last Two Years by Eric deCarbonnel
... U.S. Gold, Going or Completely Gone?
-- Posted Friday, 29 May 2009

This past Tuesday evening I found myself reading a snippet from Enrico Orlandini's, DTAnalysis [DT stands for "Dow Theory"] - where Mr. Orlandini opined,

I took special note of how 2,920 metric tonnes of "Gold Compounds" had been exported from the U.S. in 2008. This number seemed BIGGER than BIG — because the U.S is only alleged to have stockpiles of sovereign gold of 8,100 metric tonnes while annual U.S. mine production of gold is roughly 228 metric tonnes. This figure of 2,920 metric tonnes is equal to 36 % of all alleged sovereign U.S. gold stocks or more than 14 times annual U.S. gold mine production. So, I was left wondering, "just what is/are 'gold compounds'?

I contacted the USGS and queried a qualified individual [who had working knowledge of this data stream] about the definition of "Gold Compounds". I was told that, according to the U.S. Census Bureau — who supplies not only the definition but the actual reported numbers, gold compounds were typified by industrial type products containing low percentages/amounts of actual gold content — like gold paint.
The Implications

Ladies and gentlemen, the foregoing data and discussion with the USGS individual is proof that the United States of America [or criminal elements within its Treasury and/or The Federal Reserve] "HAS" surreptitiously exported physical gold - and continues to do so. It is confirmed. The exports are likely coin melt [or gold compound, if you prefer] from the great gold confiscation back in 1933; or alternatively, this terminology is being used to disguise physical repatriation of foreign gold bullion formerly on deposit with the N.Y. Federal Reserve. Such repatriations are recorded as "exports" in U.S. Trade data. Public acknowledgement of same would scream like a siren call that the global financial community has totally lost faith in American financial stewardship — hence the need to do so on the sly.

This is being done in a vain/desperate/losing battle to satiate "off the charts" global demand for physical gold bullion arising from the profligacy of the American Empire's two previous Administrations and to prop up the failing U.S. Dollar.

Over the course of 2007 / 2008 — more than 5,000 metric tonnes of "Gold Compounds" have been exported from the United States of America representing more than 62 % of reported sovereign U.S. gold reserves or about 24 times annual U.S. mine production.

5000 metric tonnes = 160 753 733 troy ounces [$128 billion+ at today's prices]

The fact that industry funded trade groups like the World Gold Council and other professional gold consultancies, who shall remain nameless, have not reported these facts negates their credibility and illuminates them as dupes or willing shills. These fraudulent or ignorant organizations deserve to be shuttered and disbanded.

U.S. Trade Data Is Bogus

The value of these bullion exports significantly "skew" the doctored U.S. Trade numbers [coincidentally, also prepared by the U.S. Census Bureau] in an attempt to convey a picture that the U.S. financial position is improving.

The reality is this, when gold exports are backed-out, the U.S. Trade picture is decidedly worse.

The United States of America claims to possess a little more than 8,100 metric tonnes of sovereign gold stored principally at Fort Knox, Kentucky, West Point, N.Y., the Denver Mint and The New York Fed. The sovereign U.S. gold reserve has not been independently audited since the 1950's during the Eisenhower Administration. GATA's freedom of information requests are all about ensuring that the 8,100 metric tonnes of U.S. sovereign gold is still owned by the U.S.

In April, 2008 the Federal Reserve responded to GATA's request, releasing hundreds of pages of worthless information with significant portions redacted. They also claimed that they were withholding hundreds of additional pages of documents. The status of the withheld documents is currently under appeal.

These stonewalling tactics — withholding details - are eerily similar to those employed by Messer's Bernanke, Paulson and Geithner refusing to divulge frank details as to "who" the beneficial recipients were of TARP and TALF funds.

No credible audit of the Sovereign U.S. Gold Reserve will EVER be allowed — because the gold is simply not there.

Hope you have some.My reaction: US has exported 5000 metric tonnes of "gold compounds" over the last two years

1) 2,920 metric tonnes of "Gold Compounds" had been exported from the U.S. in 2008.

2) The U.S is only alleged to have stockpiles of sovereign gold of 8,100 metric tonnes while annual U.S. mine production of gold is roughly 228 metric tonnes.

3) 2,920 metric tonnes is equal to 36% of all alleged sovereign U.S. gold stocks or more than 14 times annual U.S. gold mine production.

4) An individual for the USGS agreed that the data, as published, did not make logical sense and explained that the U.S. Census Bureau was questioned as to the veracity of this particular line item in their data.

5) The U.S. Census Bureau is assigning an astronomically high value to these goods.

6) The values being reported would be more in line with these goods being gold bullion or equivalents.

7) foregoing data and discussion with the USGS individual is proof that the United States of America has surreptitiously exported physical gold - and continues to do so.

8) Public acknowledgement of these gold exports would scream like a siren call that the global financial community has totally lost faith in American financial stewardship

9) Over the course of 2007 / 2008 - more than 5,000 metric tonnes of "Gold Compounds" have been exported from the United States of America representing more than 62 % of reported sovereign U.S. gold reserves or about 24 times annual U.S. mine production.

10) No credible audit of the Sovereign U.S. Gold Reserve will EVER be allowed - because the gold is simply not there.

U.S. Trade Data Is Bogus

1) The value of these bullion exports significantly "skew" the doctored U.S. Trade numbers

2) When gold exports are backed-out, the U.S. T rade picture is decidedly worse.

Conclusion: Until someone explains to me what these "gold compounds" were, I am going to assume that they were half the US gold reserves leaving the country.

qwerty55's picture

there may not be 8000 metric tons at all

It appears that only 24million ounces is good "deliverable " quality. Thats  just 750 tons of the 8300  OOOPs ! :)

But much of what was left, as seen in the one compartment opened in Ft Knox, were quite obviously of bad quality. They were the dregs of what had been the greatest accumulation of gold that had ever been seen.

At the same time, the Treasury agreed to audit the gold. However, they only agreed to audit 20% of the gold. This was supposedly done over a 30-day period that began the day after the tour.

The results of this "audit" were released in February of 1975. Mr. Durell was less than impressed with the whole thing: it was certainly not what he had wanted when he brought up the subject with Attorney General Saxbe the previous August. He felt, with justification, that he (along with everyone else) had been bamboozled.

By February 1975 Saxbe was Ambassador to India, so Durell communicated his displeasure through his local Virginia congressman.

As a result of this, the GAO sent four men to Durell's Virginia farm to try to convince him of the validity of their accounting practices. In charge was Hyman Krieger, the GAO's Washington regional manager.

The one concrete piece of information to emerge from this meeting was a bombshell. Krieger admitted that only a small part – 24.4 million ounces – of the official gold was of a quality of .995 or better. In other words, less than 10% of the 264 million ounce held by the Treasury could be considered good delivery gold.

Krieger confirmed this in a letter to Durell of April 11, 1975:

"We analyzed, as agreed, the gold bar schedules for Fort Knox and found that fine gold in good delivery form (.995 or better) at Fort Knox totaled 24,411,140 ounces."

This from the 701 million ounces that were the supposed peak. In fact, in the absence of a true and independent audit and assay, we really can't be sure of how much is actually there. First the Treasury said that 264 million ounces of gold was there by the end of 1972, but later on the number was changed to 147.3 million ounces, and that's the number it stands at today.

What happened to change the 264 million to just 147? How much – exactly – remains in Fort Knox? Of that, how much – exactly – is good delivery quality? What is the quality of the rest?

Urban Redneck's picture

US Official Reserves have never been in Good Delivery form, if they magically were one day- then there would definitely be a problem, and one that they couldn't cover up.  When FDR confiscated gold, they simply melted much of it into bars, instead of re-refining it first, hence the proliferation of 22k gold bars (i.e. coinage gold).

GiantVampireSquid vs OWS UFC 2012's picture

80% Tungsten with a gold casing, you will never know the difference, (unless you drill it.)

earleflorida's picture

what goes around comes around - "Gold and Silver Confiscation"

just who can take your gold/silver and make it useless? 

nwo can take your gold/silver today, via [through any-means necessary] the 'esf' [bis/frb] and extradition [via sovereigns] becomes a word of new meaning relegated to what is,... is?

really enjoyed the read,... thanks for posting tyler/eric

Silver Shield's picture

This video series is a clever piece of propaganda designed to divert attention from the real individuals responsible for this power paradigm.  Read....

My Critique of “What I Have Been Afraid To Blog About: The ESF and Its History.”
hack3434's picture

I'm sorry but you've lost all creditbility after your silver rocket articles. 




disclosure: Long silver since 07' (Obviously not a silver hater)

Silver Shield's picture

Why because the banks obviously did a drive by shooting of the paper silver markets dropping it $6 in 15 minutes in a thinly traded market?

Or was it the 60,000 accounts they stole at MF global preventing the physical delivery of gold and silver the banisters don't have?

Now that they have covered most of their outstanding short position and it is at a decade low maybe we will see another 400% return like we saw after 2008 when the last person said I lost my credibility...

Did you even read the article about the ESF?

spiral_eyes's picture

if this is a wacked out nutjob conspiracy theory, it's an exciting and colorful one. if it's at least partly true, it's fucking scary.

bank guy in Brussels's picture

Indeed great videos by Eric deCarbonnel of, despite the hour-plus in length, a bombshell of a presentation on « The ESF and Its History »:

To try to summarise in text Eric deCarbonnel's main points, which he backs by some great detective work and many historical documents he shows on the videos:

Zero Hedge readers will get a surprise here, as deCarbonnel asks: Is the secretive US Treasury Exchange Stablilization Fund, or ESF, the real culprit, and not the Fed? (ZH has been covering aspects of the ESF, since 2009.)

The fascinating fresh broad perspective on the ESF that deCarbonnel provides, is terrific, and frightening.

According to deCarbonnel, the Fed is actually NOT the main player of the US financial oligarchy; deCarbonnel says the Fed actually lost most of its power in 1934, in favour of another, more secretive US financial mechanism, this 'Exchange Stabilization Fund' or ESF within the Treasury Department, which deCarbonnel says is the boss of the Fed and not the other way around.

On deCarbonnel's view, it seems 'End the Fed' would just be another empty 'victory' if it happens, as the Fed's major functions would just continue from inside Treasury.

The ESF was created on 30 January 1934 as part of the Gold Reserve Act signed into law by US President Franklin Roosevelt on that day. Even at the time, the ESF was seen by some, as the most insidious part of the legislation by which the gold of US citizens was confiscated and nationalised.

Key to the ESF, operating from the Treasury Department, and conducting some operations via the New York Fed, is that the ESF is subject to no oversight from Congress or anyone else, and does not need to obey any law, with hardly anyone realising what it is. The ESF was from the start a 'slush fund' with, in effect, absolutely no restrictions on its use and no one to ask any questions about it.

With what deCarbonnel details about the operations of the ESF ever since then, as the tool for secretly funding every major scheme of America's rulers, it seems 30 January 1934 might be cited as the day America itself really died, becoming in fact a lawless nation run by secret means.

In 1934 the ESF was immediately funded by billions in instant government profit on gold holdings, the profit realised from the instant devaluation of the dollar in 1934, when the US regime nationalised all private gold and seized most of it. The theory was, the ESF could be deployed in the markets to prop up the dollar, but the ESF quickly started to be used for every major kind of US government espionage, propaganda, and criminality, which all of course can be said to be related to 'propping up the dollar'.

The ESF funded the US spy operations through the World War II era, the OSS that became the CIA. The ESF helped establish Bretton Woods, and also became a source and part-template for two global 'slush funds' which would operate much more visibly, the IMF and the World Bank.

Decade after decade, the ESF continued to fund many of the various Cold War and post-Cold-War attacks on other countries, the bribing of global politicians, the funding of military coups, and so on. According to deCarbonnel, the ESF is the conduit to receive much of the monies that US governmental forces obtain via illicit means such as drug sales and money laundering, and then re-deploys those monies for every kind of criminal use not only against other governments, but also US citizens.

For decades now, the ESF has also been a means of funding for much of the US propaganda apparatus, specifically the bribing and buying of false media stories around the world and within the USA, media deceptions as under CIA spymaster Frank Wisner playing 'Wisner's Wurlitzer', the media 'music' that the US rulers want to hear played.

Though deCarbonnel cites historical events going back to the 1930s and 1940s, he presents a picture of the ESF as being as active and insidious and dangerous today as ever, in fact more catastrophically so. It is the ESF, says deCarbonnel, rather than 'the Fed', which is in charge of US financial and monetary manipulation both inside the US and overseas.

As he moves toward the present era, deCarbonnel raises the question of how it is that after 1980, the US was able to continue the massive running-up of US government deficits, without sparking the inflation that had been the hallmark of the 1960s and especially the 1970s.

The answer which deCarbonnel gives to that question is that the US has been 'exporting' its inflation overseas via ESF operations, partly even by literal huge shipments of green cash abroad by US-supported drug dealers. He says the US in fact actually NEEDS a massive global heroin trade, from the poppies grown in Afghanistan, in order to keep wads of cash flowing out of the US, which in turn keeps inflation much lower and prevents the US dollar Ponzi scheme from collapsing at an earlier date.

Going further, deCarbonnel suggests that the main reason for 11 September 2001 and the invasion of Afghanistan, was to revive the poppy - heroin production in Afghani territory, which the Taliban had essentially eliminated before the Americans invaded. Charts shown by deCarbonnel, indicate that in mid-2001 the US teetered on dangerously high money supply flows, which deCarbonnel says occurred precisely because the heroin trade had dropped to low levels due to lack of supply, and there were no longer drug dealers taking so many bucketloads of cash out of the US.

A lot to digest here ... clearly the ESF needs to be better known and understood by everyone trying to understand the US financial oligarchy.

ISEEIT's picture

Thank you for the summary. I need to make myself watch the vid's. Very depressing though and painful to realize that the deception is so deep. Tempting to just look the other way. Who the fuck really want's to confront the apparent truth that EVERYTHING has been a lie?

dick cheneys ghost's picture

Hence the 400 US Military Bases in AFganistan..........and the constant propaganda from the war department about how tough these fighters are........


Pipelines and Poppy..........thats why we are in Afghanistan.....


this story here shows the heroin that runs thru kandahar....

High Plains Drifter's picture

i heard texe marrs the other night talking about how much natural resources are in afghanistan and how they intend to help china take them. that is why we are there. to help china rape afghanistan.  china is the new "united states"  economic powerhouse of the new world order. 

JR's picture

It was Henry Kissinger and Robert Rubin who began the process of transferring the largesse of American freedom to Red China to make her the “economic powerhouse of the new world order.” Why? IMO, their chief goal was to destroy the self-determination of individual freedom and Christianity, the foundation upon which Western Civilization’s freedom was built and on which 70% of Americans profess their beliefs. The pretext for continuous war is based on 9/11; the next takedown is to be Iran. Yet, Iran has done absolutely nothing, absolutely zero except respond to Israeli expansionism, to warrant political annihilation. Iran was not even friends with the Palestinians – the “nonexistent people” Israel is now eliminating.

In short, Iran is real estate with oil reserves not yet governed by a U.S. puppet, such as in Afghanistan with its mineral reserves and proposed pipeline routes and Iraq with its oil. The U.S. and Israel are determined to change that.

As Jesse’s Café Americain asks regarding this unfolding world tragedy created by an unelected central power (such as, IMO, a G-20 that wants to regulate commodities, a new G-Club to tackle currencies, a one-world central bank with total economic and political reign): “It is a mistake to view what happened as some accident, or a natural development. It was a pre-meditated campaign to subvert the economy and the political protections of the vast majority of US citizens.”

Ask yourself, who are the players?  Who are the central bankers, the heads of the IMF, the World Bank…?  Who are the principals of the TBTFs, the owners of the Fed? Who controls the power centers and political elite of in the US?  Who are the perpetual winners; the perpetual losers?

Treason Season's picture

Just in case you might not have seen this, footage of one mass murderer greeting another and another. To think that Bush was intimidated by Mao says quite a bit though Kissinger obviously enjoyed himself.


JR's picture

Thanks, and as you say, the image tells the story. And to think that these people were actually the representatives of America meeting with this mass murderer. Kissinger was very successful in pushing U.S. Empire; not only did he understand the mind of a despot, he is one himself. He is a war criminal not yet indicted except by public opinion. If a poll were taken today as to who would be an American war criminal, the winner would be Kissinger.

Two comments regarding the video were very telling: "Although they’re all murderers ( Mao, Kissinger, H.W. Bush), Mao murdered for ideology – they murdered for greed. That’s probably why Mao is the most personable guy in the room."

And: "Henry Kissinger should be tried in the International Criminal Court for crimes against humanity for Viet Nam and Cambodia and Laos."