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11 September 2020

Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on 9/11



"On that fateful day [9/11], the Securities and Exchange Commission declared a national emergency, and for the first time in U.S. history, invoked its emergency powers under Securities Exchange Act Section 12(k) easing regulatory restrictions for clearing and settling security trades for the next 15 days. These changes would allow an estimated $240 billion in covert government securities to be cleared upon maturity without the standard regulatory controls around identification of ownership."

Dear friends,

Few people are aware of the huge Black Eagle Trust fund, let alone its critical relation to the 9/11 attacks. A brilliant summary of excellent information regarding this covert fund compiled by meticulous researcher E.P. Heidner ties together many previously unexplained threads in the 9/11 mystery in ways that are most compelling.

Heidner presents volumes of solid evidence to support his thesis that one of the main reasons for the attacks was to cover up the laundering of over $200 billion in bonds from this secretive fund that were to come due the day after 9/11.

Serious 9/11 researchers will likely be most grateful for the revealing connections in this careful research made between seemingly unconnected parts of the 9/11 story and the many people and organizations involved. Those less familiar with the 9/11 cover-up will almost certainly appreciate the broad overview given and the hidden history behind it all. If we follow the money, a lot of unexplained things begin to make sense.

Below are key excerpts from this remarkable paper with highlighting provided for those with limited time. If you do have time, the many diagrams, photos, and charts available in the original 58-page essay are most helpful. The full document also includes 232 footnotes for verification filling 17 pages worth of text. In the concise summary below, I've kept the original footnote numbers, so you will find they skip quite a bit. See the full essay to explore these informative footnotes. The entire original paper with footnotes is available here.

Some readers may feel upset or overwhelmed with this material, yet the fact that you are reading this and that this powerful information is awakening many as it spreads around the Internet shows that we are making a difference. Others may be excited to finally see the bigger picture. See our "what you can do" section at the end of the article for ideas on how you can help spread the word and build a brighter future. Thanks for caring.

With best wishes,
Fred Burks for PEERS and WantToKnow.info
Former language interpreter for Presidents Bush and Clinton

Note: For what may be the most powerful single piece of evidence corroborating this theory, click here to read the Reuters news service article on the massive volume of electronic financial transactions conducted from inside the WTC just before the towers collapsed. Yet the investigation results are being kept secret.

Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on 9/11

The September 11th attacks were likely meant as a cover-up for financial crimes being investigated by the Office of Naval Intelligence (ONI), whose offices in the Pentagon were destroyed on September 11th. [1] The attacks ... were intended to cover-up the clearing of $240 billion dollars in securities covertly created in September 1991 to fund a covert economic war against the Soviet Union, during which 'unknown' western investors bought up much of the Soviet industry, with a focus on oil and gas.

The 9/11 attacks also served to derail multiple Federal investigations of crimes associated with the 1991 covert operation. Hundreds of billions of dollars of government securities had to be destroyed. A critical mass of brokers from the major government security brokerages in the Twin Towers had to be eliminated to create chaos in the government securities market. A situation needed to be created wherein $240 billion dollars of covert securities could be electronically "cleared" without anyone asking questions – which happened when the Federal Reserve declared an emergency and invoked its "emergency powers" that very afternoon. [4]

Where to Find Footnotes: To explore the excellent footnotes for the this article, see the end of full essay available here. As this is a summary, foot notes are not sequential.

There were three major securities brokers in the World Trade Center: Cantor Fitzgerald, Eurobrokers and Garbon Inter Capital. Cantor Fitzgerald was the largest securities dealer in the US [7] and arguably the primary target. [8] 41% of the fatalities in the Twin Towers came from Cantor Fitzgerald and Eurobrokers. [13] 24% of the 125 fatalities in the Pentagon were from the Naval Command Center that housed the Office of Naval Intelligence. 29 of 30 Office of Naval Intelligence employees died. The Naval Command Center had been moved into that newly opened section of the Pentagon only a month earlier. [21] And in the vaults beneath the World Trade Center Towers, any certificates for bonds were destroyed. [14]

On that fateful day, the Securities and Exchange Commission declared a national emergency, and for the first time in U.S. history, invoked its emergency powers under Securities Exchange Act Section 12(k) easing regulatory restrictions for clearing and settling security trades for the next 15 days. These changes would allow an estimated $240 billion in covert government securities to be cleared upon maturity without the standard regulatory controls around identification of ownership. [19]

The Origins of the World Trade Center Attack

Emboldened by the lack of consequences for subverting the U.S. constitution and breaking international law during the Iran-Contra scandal of the 1980s, a Bush administration group known as "the Vulcans" planned a bigger drive to crush Communism once and for all. They waged war against the Soviet Union and Iraq under George H.W. Bush, and against Iraq and Afghanistan under George W. Bush. Belonging to this group were Dick Cheney, Don Rumsfeld, Colin Powell, Paul Wolfowitz, Richard Armitage, and Condoleezza Rice. [31]

The Vulcan's drive to bring an end to the Cold War was fueled by a covert war chest invisible to congressional oversight. [32] This war chest would be known by several names: Black Eagle Trust, the Marcos gold, Yamashita's Gold, the Golden Lily Treasure, the Durham Trust or Project Hammer. [33] The program also seems to have lined the pockets of the individuals that executed this policy. This was done to the tune of a staggering $240 billion dollars in covert and allegedly illegal bonds, which appear to have been replaced with Treasury notes backed by U.S. taxpayers in the aftermath of September 11.

The covert securities used to accomplish the national security objective of ending the Cold War ended up in the vaults of the brokers in the World Trade Center, and were destroyed on September 11, 2001. [36] They came due for settlement and clearing on September 12. The federal Agency investigating these bonds – The Office of Naval Intelligence – was in the section of the Pentagon that was destroyed on 9/11. [37]

To this key group of senior National Security officials called the Vulcans, who had participated in the victory of the economic cold war in 1991, the WTC, the Pentagon, the four airliners and their occupants would became 'collateral' damage in the ending of the Cold War. Their deaths were required to hide the existence of the Black Eagle Trust, and the covert activities it had funded for over 50 years. The destruction of these lives and buildings constituted a cover-up of continued lawlessness by a fraternity or brotherhood of businessmen and criminals often referred to as 'the Enterprise' in the 1980s, though it has remained in the shadows since.

Numerous sources have documented that at the end of WWII, the treasury of the Japanese Empire was discovered in the Philippines by a staff member of General Charles Willoughby, [Edward Lansdale], who was General MacArthur's chief of Intelligence. Then known as the Golden Lily Treasure, this mass of wealth had been accumulated by the Japanese through over fifty years of pillaging by its army in Southeast Asia and China. It was deposited in the Philippines due to the U.S. submarine blockade of Japan. Reports vary, but documents in the public domain suggest the recovered treasure was in excess of 280,000 metric tonnes of gold, not including jewels and diamonds. [40] After the War [Lansdale] tortured Major Kojima Kashii – General Yamashita Tomoyuki's driver – until he revealed and created a map of the gold sites. [41]

Lansdale briefed Assistant Secretary of War John J. McCloy about the findings, and a U.S. Cabinet level decision was made to confiscate the gold and cover-up its discovery. The gold would be added to the Black Eagle Trust fund. It was McCloy, along with Secretary of the Navy Robert B. Anderson and Secretary of War Henry L. Stimson who created the Black Eagle Trust. [42]

John McCloy, who had shared a box at the 1936 Olympics with Adolph Hitler, went on to become President of the World Bank. Robert Anderson would go on to operate the Commercial Exchange Bank in the British West Indies, be convicted of running illegal banking operations and tax evasion, and be sentenced to prison. [43] A fourth member of that group – William 'Wild Bill' Donovan – would go on to found the CIA and distribute the gold to key banks represented by his staffers.

The trust they created takes its name from the Nazi Black Eagle stamped on the gold bars of the Third Reich. Gold bullion confiscated from the Reich and not returned to its rightful owners and their heirs was the original source of funding for this trust. [44] Over the years, the significance of the Nazi gold would pale in comparison to the confiscated Japanese treasure.

The men responsible for initiating and executing the confiscation of Nazi and Japanese treasury gold represented the most senior Intelligence officers in the U.S. and Britain at the end of World War II, and the Cabinet of the President of the United States. The financial institutions represented by these individuals would become the major financial banks in the world, along with the Swiss-German banks they hid their gold in. The Yamashita gold would become the cornerstone of the Black Eagle Fund, from which many covert operations of the U.S. intelligence would be funded. [58]

Lansdale's operation in the Philippines gave birth to most of the common features of modern covert operations for U.S. Intelligence: bribery, theft, torture, and false flag operations. It would be Lansdale who would initiate a bond between the US intelligence organizations and Israeli intelligence. It would be Lansdale that would set precedents for the Intelligence community to retain the services of organized crime on U.S. soil. Lansdale would hire American Mafia family heads Carlos Marcello, Santos Trafficante, Meyer Lansky, and Lucky Luciano in the U.S. war against Fidel Castro in 1961.

It would be Lansdale's team that would propose and justify sacrificing innocent U.S. civilians in order to rally the American citizenry to support an invasion of foreign soil. This was done under a program run by Brigadier General William H. Craig, who reported to Lansdale for the Cuba project. [61] This project was called Operation Northwoods. Documents for this project would be accidentally released from the files of Robert McNamara into the public domain some 40 years later, exposing the degree to which Lansdale's operatives would go to wage war. [62] These declassified documents revealed secret plans of the U.S. military to wage a fabricated "terror" campaign against US citizens as a pretext to justify a second invasion of Cuba.

Barrick Gold would become an investment for nearly every gold bullion bank associated with the Marcos gold recovery. These banks would loan gold to Barrick, which would then sell the borrowed gold as derivatives, with the promise of replacing the borrowed gold with their gold mining operation. The records of many of those transactions disappeared when Enron collapsed and the trading operation and all its records were taken over by UBS, another major recipient of Marcos gold. The FBI was reportedly conducting an investigation into those transactions, and the investigation files were kept on the 23rd floor of the North Tower of the WTC. A review of the personal accounts of September 11 now suggests that office was deliberately targeted with explosives prior to the collapse of the WTC towers. [73]

Taking Control

In November 1980, Ronald Reagan was elected to the White House. Sixty-nine days after the inauguration, John Hinckley attempted to assassinate President Reagan. Eight days prior to that attempt, there were a series of unprecedented policy changes that put George Bush in charge of Foreign Policy and National Security. That conferred new roles and powers on Bush, including "unprecedented powers for a vice president." [85] Vice President George Bush was named the leader of the United States "crisis management'' staff, as a part of the National Security Council system. [86] Then, on March 30, 1981, just eight days after these powers were conferred on Bush, President Reagan was shot.

The father of the assassin that put Bush in power was John (a.k.a. Jack) Hinckley, Sr., the owner of Vanderbilt Oil. Hinckley had been giving maximum donations every year to George H.W. Bush since he started running for Congress. In The Black Hole of Guyana: The Untold Story of the Jonestown Massacre, John Judge painstakingly documents that Jonestown was a CIA operation for converting dispossessed and lonely refugees into assassins . In an operation that was falling under Congressional investigation, the evidence had to be eliminated – and nearly all the inhabitants were murdered to prevent disclosure. [88]

A key player in the Marcos gold would be Banker's Trust, which was taken over by Alex Brown & Sons, after Banker's Trust floundered financially on its Russian loans in the mid 1990s. These Russian loans were facilitated by Enron, starting in August of 1993, and very possibly were part of the Project Hammer takeover of Soviet industry. Alex Brown's involvement would bring to the forefront the names of three names of individuals who would play multiple roles in this mystery: Buzz Krongard, Mayo Shattuck, and J Carter Beese.

Buzz Krongard is reported as the mentor of Beese and Shattuck from their years together at Alex Brown. Additionally, he managed the merger between Bankers Trust and Deutschebank Alex Brown. Bankers Trust, Zurich was a key Marcos gold holder. Krongard would move on to become Chairman of the investment bank A.B. Brown, Vice Chairman of Banker's Trust, and Executive Director of the CIA at the time of September 11.

Mayo Shattuck would be reported to be the personal banker for Adnan Khashoggi and Edgar Bronfmann during their partnership at Barrick Gold. [107] He would move on to become the CEO of Deutschebank who would resign for unexplained reasons the day after September 11, and would not be at the WTC office that day when the tower collapsed. It was his bank that was identified as the source of the illegal stock options that indicated there was insider trading taking advantage of the September 11 tragedy.

What happened to the Marcos gold after it was confiscated by U.S. agents in 1986 has never been reported, but throughout the early 1990s, the world gold market would be befuddled by the mysterious appearance of thousands of tonnes of gold which appeared to suppress the price of gold.

In preparation for their war against Communism, and in the years leading up to the failed – or faux – coup of 1991 which initiated the last days of Gorbachev and the rise of Yeltsin, Bush and a cadre of rogue KGB officials built a complex international network of banks and holding companies that would be used to take over ownership of the Soviet economy. Over 300 of these KGB turncoats who supported this operation would later be re-located to the US in the early 1990s and pensioned. [111] Periodic CIA reports to Congress would review KGB and organized crime complicity in the takeover of Russia by criminal elements, but all mention of the formidable role of the U.S. would be expunged from Congressional oversight and the public record. [112]

In the first phase of the economic attack on the Soviet Union, George Bush authorized Leo Wanta and others to destabilize the ruble and facilitate the theft of the Soviet/Russian treasury. This would result in draining the Russian treasury of between 2,000 to 3,000 tonnes of gold bullion, ($35 billion at the time). [113] The gold was 'stolen' in March of 1991, facilitated by Leo Wanta and signed off by Boris Yeltsin's right hand man. The majority of the leaked reports from the CIA and FBI suggest the theft of the Russian treasury was a KGB and Communist party operation, but what those reports omitted was the extensive involvement of Boris Yeltsin, the U.S. banking industry and the CIA.

In the second phase, Wanta, George Soros and a group of Bush appointees would begin to destabilize the ruble. There were two major operations: the largest was coordinated by Alan Greenspan and Oliver North, and implemented by Leo Wanta.

The 9/11 Cover-up and the Black Eagle Trust

With an understanding of the economic war being waged on the Soviet Union, the focus needs to turn to reports that on September 11, 1991, President George Bush was responsible for issuing $240 billion dollars in secretive bonds as a part of this attack on the Russian ruble. There are six lines of evidence from eight sources that suggest this was indeed the case. Many of these instances are corroborated with documents available on the Internet, presented by those making the claims. [174]

The bonds sat for ten years, like a ticking time bomb. They had to be settled – or cashed in by September 12, 2001. The two firms in the U.S. most likely to be handling them would be Cantor Fitzgerald and Eurobrokers – the two largest government securities firms in the U.S. The federal agency mostly involved in investigating those transactions was the Office of Naval Intelligence. On 9/11, those same three organizations: the two largest government securities brokers and the Office of Naval Intelligence in the US took direct hits.

What happened inside the buildings of the World Trade on September 11 is difficult, but not impossible to discern. The government has put a seal on the testimony gathered by the investigating 911 Commission, and instructed government employees to not speak on the matter or suffer severe penalties, but there are a number of personal testimonies posted on the Internet as to what happened in those buildings that day.

Careful reconstruction from those testimonies indicates the deliberate destruction of evidence not only by a targeted assault on the buildings, but also by targeted fires and explosions. In the event that either the hijacking failed, or the buildings were not brought down, the evidence would be destroyed by fires. In addition to the investigative evidence being destroyed, the Federal Register reported that the physical securities held by the brokers in their vaults had been destroyed.

What would be even more revealing would be the actions of the Federal Reserve Bank and the Securities and Exchange Commission on that day, and in the immediate aftermath. As one of many coincidences on 9/11, the Federal Reserve Bank was operating its information system from its remote back-up site rather than it's downtown headquarters. The SEC and Federal Reserve system remained unfazed by the attack. All of their systems continued to operate. The two major security trading firms had their trade data backed up on remote systems. Nevertheless, the Commission for the first time invoked its emergency powers under Securities Exchange Act Section 12(k) and issued several orders to ease certain regulatory restrictions temporarily.

The Federal Reserve Suspends the Rules

On the first day of the crisis, the SEC lifted "Rule 15c3-3: Customer Protection – Reserves and Custody of Securities." Thus GSCC [Government Securities Clearing Corporation] was thus allowed to substitute other securities for the physical securities destroyed during the attack. "...collateral substitutions can and should be made with regard to immediately maturing collateral." [191] At this point in time, the Federal Reserve and its GSCC had created a settlement environment totally void of controls and reporting – where it could substitute valid, new government securities for the mature, illegal securities, and not have to record where the original bad securities had come from, or where the new securities went – all because the paper for the primary brokers for US securities had been eliminated.

A review of the explanations for the actions of the Federal Reserve after September 11th exposes an amazingly complex web of analysis and speculation. The reports published by the Federal Reserve argue that the Federal Reserve's actions increasing the monetary supply by over $300 billion were justified to overcome operational difficulties in the financial sector. While impressive as the reports are, what is noted by the casual reader is that all of the Federal Reserve analysis is speculative and suggestive, using phraseology such as "may have," "likely," "presumably," or "should have." There are few – if any – definitive statements about root cause and the appropriateness of the Federal Reserve response.

While the Fed was reporting outstanding account balances of over $100 billion per day (while not identifying the banks involved), the Wall Street Journal reported that at one point during the week after 9/11, BoNY was publicly reported to be overdue on $100 billion in payments. [198] The Deutschebank, which sat inside the WTC and was totally decimated, reported no such account balance increase, and JP Morgan, the other of only two clearing banks which uses the same traders and communications hub, reported no such increase in its account balance. No one has publicly asked: why is it that these other two banks were not seriously disrupted, while the Bank of New York – which had no structural damage – seemed unable to operate?


Certain key unknown figures in the Federal Reserve may have 'conspired' with key unknown figures at the Bank of New York to create a situation where $240 billion in off balance sheet securities created in 1991 as part of an official covert operation to overthrow the Soviet Union, could be cleared without publicly acknowledging their existence. These securities, originally managed by Cantor Fitzgerald, were cleared and settled in the aftermath of September 11th through the BoNY. The $100 billion account balance bubble reported by the Wall Street Journal as being experienced in the BoNY was tip of a three day operation, when these securities were moved from off-balance-sheet to the balance sheet.

[As reported on page 12 of a Federal Reserve document] "In the absence of complete information on deliveries into and out of its account at BoNY on September 11, and as a result of its assumption of settlement fails on the starting legs of blind-brokered RPs, GSCC recorded (after the close of business on September 11) $266 billion in transactions that apparently failed to settle.... Continuing connectivity problems prevented GSCC from giving BoNY delivery instructions after the close of business on September 11 and prevented it from acquiring information on activity in its account at BoNY during the day on September 12. Consequently, GSCC recorded $440 billion in settlement fails as of the close of business on September 12." [201]

What appears to be the case is that the Federal Reserve imbalances reported on three consecutive days in the aftermath were largely concentrated at the Bank of New York, which is reported to represent over 90% of the imbalance, suggesting the Bank had been the recipient of massive fund transfers, and unable to send out transfers. Overall transactions for the day of 9/11 were seemingly down even more significantly than volume, but the transactions that came in after closing were extremely large, averaging in size in packages of $35 million or more. This would be consistent with a hypothesis that $240 billion of securities were being pushed surreptitiously into the money supply.

The Federal Reserve, without providing the detail required to substantiate it's claims, would have the public believe that there were widespread liquidity issues, when in fact the issues were very concentrated primarily, if not singularly, in the BoNY, which has been the subject of an ongoing major money-laundering investigation for many years. These account balance issues resulted in the defacto expansion of the monetary supply, details of which are no longer reported by the Federal Reserve.

The reported cause of this market malfunction is seemingly suspect. By comparison, the Deutschebank which sat inside the World Trade Center reported no such account balance increase, and JP Morgan, the other of two clearing banks which uses the same traders and communications hub, reported no such increase in account balance. Additionally, while problems were being documented between the BoNY and GCSS, no other institution had those problems.

There is a contention that at the core of the September 11th attack, someone was planning to cover the 1991 issuance of $240 billion in covert securities used to finance the collapse the Soviet Union. The facts surrounding the financial aftermath of September 11 suggest this is not only possible, but that reports describing the aftermath have deliberately been misleading.

The US dollar money supply was significantly increased in the aftermath of 9/11;

The bank at the core of the illegal money laundering by ex-Soviet criminals was the source of the increased money supply (BoNY);

The generally disseminated rationale for BoNY's operational problems seems to have affected no other bank in a similar manner or magnitude and is inconsistent with reports on the BoNY operations in the aftermath;

A key witness who might provide insight to these issues is a statistically aberrant death;
The source of the BoNY's $330 billion increase in assets is cloaked under the privilege of "private banking;"

The only alleged "severe" disruption to the financial systems was the Federal Reserves account balance and the securities trading fails – both systems required to hide the laundering of $240 billion in covert securities.

This is not a 'proof' that $240 billion was laundered, but it provides probable cause for paying serious attention.

Conclusion

History has many interpretations, and this report has been just one of many – an interpretation pieced together from the bold admissions and revelations of insiders, whose stories have been ignored and suppressed by the major media organizations. It is an interpretation of history that suggests a few determined men strove to change the world in defense of Western capitalism in ways which they felt needed to be hidden from the public. Whatever emotion or logic that was adequate to cause them to hide their actions from the public was not strong enough to prevent them from committing the acts.

Where to Find Footnotes: To explore the excellent footnotes for the above article, see the end of full essay available here.

Author's Note: This is the condensed version of this story. The author cannot vouch for the accuracy of the source materials, although efforts have been made to validate the consistency of the story line with as many references as possible. There is no single fact or reference that this story is dependent on. The author expects some details to be disputed, and possibly disproved, but contends that the story line will hold true regardless.

Note from Fred: Though I doubt this was the only reason for 9/11, it was likely one of the main motivators. For what may be the most powerful single piece of evidence corroborating this theory, click here to read the Reuters news service article on the massive volume of electronic financial transactions conducted from inside the WTC just before the buildings collapsed. Yet the investigation results are being kept secret. For an excellent 44-minute documentary which goes into this and much more, click here.

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