Author: Michael Salla

One of the enigmas of U.S. trade policy is the willingness of policy makers to allow China open access to U.S. markets while China throws up many obstacles to American imports. This has predictably led to the US China trade imbalance becoming an issue in the U.S. Presidential Republican campaign. In an interview on Fox News on February 2, 2012, Republican Presidential front runner, Mitt Romney, declared:

On my first day in office, I will label China a currency manipulator and under US law once that label has been affixed the president is able to apply tariffs to any of their goods … I’ve made it very clear to the Chinese that’s where we’ll go if they continue the practices they’re pursuing right now.

Romney’s get tough on China rhetoric impressed Donald Trump who promptly endorsed Romney for the Republican Presidential Primary. According to Trump: “I love what Mitt was saying about China and the rest of the world, which is just absolutely ripping us off and trying to destroy this nation with a smile. And I think that Mitt Romney really sees China for what they are.”

It is a fact that China maintains a huge trade deficit with the U.S. The exchange rate of China’s currency, the Renminbi, is kept artificially low making it very difficult for U.S. products to compete with cheap Chinese imports. Imports of Chinese products have devastated the U.S. manufacturing industry. To make matters worse, China establishes tariffs on a range of key U.S. export products, such as automobiles, making it even more difficult for the U.S. to reverse the trade deficit which continues to grow. Compounding the issue is China’s flagrant violation of intellectual property laws where Chinese firms pirate many U.S. products with almost total impunity thereby removing another means of balancing the trade deficit.

The trade imbalance has led to China accumulating vast reserves of US dollars, becoming the biggest purchaser of U.S. treasury bonds, and becoming America’s chief creditor. According to the U.S. Treasury, as of November 2011, China held 1.1 trillion dollars in U.S. treasury securities. All this has U.S. Republican presidential candidates and many economists speaking out loudly against China and calling for retaliatory measures such as tariffs, getting tough on Chinese violation of intellectual property laws, and pressuring China to revalue its currency. So are Romney, Trump and a host of prominent economists correct about China? Do they make a compelling case for abandoning a bad China trade policy?

The problem is that what Romney, Trump and other China trade policy critics miss is that the trade deficit is not a result of a poorly thought out U.S. trade policy. In fact the U.S. trade policy with China has been meticulously thought out. There is growing evidence that it is payback for the CIA’s decades long covert use of China’s “black gold” – gold that does not appear on any international gold registry. China’s “black gold” has been hidden for over six decades in order to fund a globally coordinated set of covert projects hidden from public view by the CIA and a consortium of national intelligence organizations and transnational corporations – a global Manhattan project.

Two very recent court cases and a June 2009 incident on the Italian/Swiss border involving high denomination 1934 Federal Reserve notes reveal a remarkable historical fact. During the Second World War era, vast quantities of Chinese gold reserves were either looted and hidden by the Japanese Imperial Army in the Philippines, or transferred by the Chinese Nationalist government to international safe havens. The biggest beneficiary of this vast historical movement of “black” gold was the U.S. government which arranged for a significant portion of China’s “black” gold to be transferred into the US. Federal Reserve system, and Federal Reserve bonds and/or notes issued in return.

The holders of these high denomination Federal Reserve bearer bonds/notes – often the descendents of Chinese/Asian royal families– could only redeem these bonds after lengthy periods of time, e.g., five decades. As a safeguard to ensure the “black gold” would not become publicly tradable, the Federal notes/bonds were printed with spelling errors and other abnormalities that would make them appear fraudulent. Attempts to redeem these bearer bonds have been unsuccessful. This has led to court cases and financial incidents that have drawn media attention over the high denomination bonds in dispute and their validity. Most public media attention wrongly concludes that these bonds are fraudulent as outlined in a recent Bloomberg article focusing on bonds found in the Philippines. Two recent court cases citing meticulous fact checking and documentation of these high denomination 1934 bonds, suggest otherwise.

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A mysterious trillion dollar lawsuit filed on November 23, 2011 in the U.S. District Court for the Southern District of New York, claims that 134.5 billion dollars worth of gold was secretly given to the U.S. government in the mid-1930s by the then Nationalist government of China for safekeeping. The lawsuit claims that 1934 U.S. Federal Reserve notes were issued to the Chinese government, and the gold transferred to the Federal Reserve Bank. It is claimed that a total sum of almost one trillion dollars representing both the principal and accumulated interest of the 1934 Federal Reserve notes was fraudulently taken from the plaintiff, Neil Keenan, an agent for the owners, a mysterious Asian entity called “The Dragon Family.” What makes the lawsuit worth paying attention to is that involves the unresolved June 2009 case of two Japanese citizens caught on a train in Italy while traveling to Switzerland with 134.5 billion dollars in US Federal Reserve notes, bonds and other financial instruments.

The U.S. District Court lawsuit has aroused considerable controversy over its authenticity and the ownership of the 134.5 billion in Federal Reserve notes, bonds and other financial instruments. The lawsuit was filed by William Mulligan Jr and Justin Gardner from Bleakley Platt and Schmidt, a reputable New York law firm. The principal plaintiff in the lawsuit, Neil Keenan, claims to have been defrauded by a number of official government agencies and political figures including a little known organization called the Office of International Treasury Control (OITC), and its principal officers Dr Ray Dam (President) and David Sale (Deputy Chief of the Council for Cabinet of OITC). On the other hand, Sale claims that Keenan and his accomplices fraudulently gained possession of the bonds from the OITC. Importantly, neither of the two parties contesting ownership of the bonds dispute their validity.

The U.S. District Court lawsuit supports claims by David Guyatt, author of The Secret Gold Treaty, that missing World War II era national gold reserves have been intentionally kept out of public circulation (“black gold”). Furthermore, the lawsuit reveals a coordinated international effort to launder, trade and defraud owners or investors of bonds and other financial instruments issued against the “black gold”. At the heart of this internationally coordinated effort, according to Guyatt, is the Bilderberg Group – which in 1954 played a key role in the passage of a Secret Gold Treaty.

A detailed study of these events has just been released by Dr Michael Salla, a former university professor and author of two books focusing on U.S. foreign policy. What the study will show is that what lies behind the Bilderberg Group’s involvement with “black gold” is to provide long-term funding for a globally coordinated ‘second’ Manhattan Project. The ultimate goal of this globally coordinated project is to comprehensively deal with a subject so vast and complex as to dwarf the resources of any one nation – extraterrestrial life and technology.

The 7500 word study is available for free here.

Michael E. Salla, Ph.D.

Ron’s Paul’s strong second place finish in New Hampshire’s Presidential Primary greatly raises his prospects in the Republican Presidential race, and will lead to more attention on his policies. Paul’s policies are laid out in his “Plan to Restore America” where he targets five cabinet level departments for elimination: Energy, Housing and Urban Development (HUD), Commerce, Interior, and Education. The resulting cuts would enable Paul to attain his economic goals of balancing the U.S. budget in three years and cutting the budget by one trillion dollars in his first year. The pros and cons of Paul’s radical economic plan is likely to be vigorously debated in the mainstream media in the months ahead during the Republican Presidential primary. Unlikely to appear in these debates is discussion of the community that is likely to be most impacted if Paul succeeds in implementing his Plan to Restore America – those benefiting directly from America’s deepest held secret. Ron Paul’s “Plan to Restore America” is a direct challenge to America’s secret trillion dollar Black Budget.
 

Paul’s growing popularity and increasing possibility that he may emerge as a dark horse candidate to win the Republican nomination has led to increased scrutiny of his voting record and past associations. That has led to some controversy over decades-old newsletters published under his name, and support for conspiracy theories that go too far in the opinion of the mainstream press. The key behind Paul’s growing support are his firm libertarian views about cutting back on the size of the Federal government, supporting individual liberties and ending foreign U.S. military interventions. The heart of Paul’s economic message is outlined in his “Plan to Restore America” Paul’s plan to eliminate five cabinet level departments and trillion dollar budget cut appeals to a cross spectrum of American society, while also alarming some Americans that benefit from a host of programs funded by these Federal departments. It will be surprise to many that among those likely to be most alarmed by Paul’s “Plan to Restore America” are not private citizens; but powerful corporate, government and military entities that use excesses, inefficiencies and waste in these five government departments as a cover for secretly funding a vast network of classified projects. A secret trillion dollar Black Budget has been created to fund this network of projects, which has all been hidden from most Americans, the media, the U.S. Congress, and even the President himself!
 

The ‘official’ black budget comprises single line items in the Department of Defense (DoD) budget that don’t refer to any real weapons system. These single line items are covers for a Congressionally sanctioned and publicly funded ‘black budget’ – a top secret slush fund for intelligence organizations such as the CIA, and classified weapons programs by the DoD. There is, however, a second black budget that is not congressionally sanctioned, but it is nevertheless publicly funded – America’s ‘unofficial’ black budget.

The conventional political view is that covert operations are funded by Congressional appropriations authorizing the DoD to use U.S. Treasury funds for classified projects and intelligence activities that appear as vague single line items on the DoD budget. Subtracting the cost of known weapons systems and intelligence programs from the total DoD budget gives Congressional analysts a means of estimating the size and scope of operations of the covert world of ‘black projects’, without knowing their precise budgets or activities.
 

There is however compelling evidence that the covert world of highly classified projects is primarily funded by a black budget created by the CIA rather than the DoD. Rather than being a beneficiary of a Congressionally sanctioned DoD ‘black budget’, the CIA has its own ‘unofficial’ black budget. The CIA’s black budget is a conduit for funds secretly siphoned into the various military intelligence agencies and private contractors associated with both the CIA and the DoD, for intelligence activities, covert operations, and weapons research and development.

The CIA has the unique legal ability among all U.S. government departments and agencies to generate funds through appropriations of other federal government agencies and other sources “without regard to any provisions of law,” and without regard to the intent behind Congressional appropriations.
 

Every year, according to Catherine Austin Fitts, a former Assistant Secretary of HUD (United States Department of Housing and Urban Development), billions of dollars of Congressional appropriations are diverted from their Congressionally sanctioned purposes to CIA and DoD based intelligence agencies without knowledge of the public and with the collusion of Congressional leaders. The covert world of ‘black programs’ acts with virtual impunity, overseen and regulated by itself, funding itself through secret slush funds, and is free of the limitations that come from Congressional oversight, proper auditing procedures and public scrutiny. The departments from which many of these black budget funds are secretly siphoned from are the very same as those proposed by Ron Paul for elimination: Energy, Housing and Urban Development, Commerce, Interior, and Education.

The key to uncovering the true size of the black budget is the chronic accounting anomalies in the DoD budget. In the three year period from 1998-2000 when the DoD was audited by the Office of the Inspector General, it was found that an average of 1.7 trillion dollars per year could not be accounted for. These auditing anomalies is evidence that over one trillion U.S. dollars annually is being siphoned by the CIA into the DoD for secret distribution to various military intelligence agencies and corporate contractors, and the ‘deep black’ programs they support. Such siphoning, with dubious constitutional status, is made legal by various Congressional enactments, senior Congressional officials, and the Executive Office.
 

The size of the Black Budget, the secrecy surrounding it, the extent senior Federal officials and agencies go to in targeting individuals and companies threatening to reveal where Congressional appropriations are ultimately going, point to a vast network of ‘deep black projects’. This network collectively forms a highly classified second Manhattan Project whose existence, goals and budget are kept secret.

As Ron Paul proposes balancing the federal budget within three years and cutting one trillion in costs in his first year with his “Plan to Restore America”, he directly challenges those that benefit from America’s “unofficial” black budget. If the experiences of Catherine Austin Fitts are any guide, then the more success Paul enjoys during the Presidential primaries, the more likely he will be targeted in covert ways by beneficiaries of America’s black budget. The stakes are very high for Paul’s campaign as he threatens congressional funds flowing through cabinet departments that are most involved in secretly funding a trillion dollar black budget.

Permission is granted to include extracts of this article on websites and email lists with a link to the original. This article is copyright © and should not be added in its entirety on other websites or email lists without author’s permission. For permission please contact: drsalla@exopolitics.org