Former Fed analyst questions M1 currency component spike prior to 9/11

Good detectives don't need to be reminded to "follow the money" when investigating a crime. However, according to Thomas Kean, the chairman of the 9/11 Commission, following the money trail in the many crimes committed in connection with the events of September 11th was "of little practical significance." For Kean, following the money in crimes that included the mass murder of over 3000 people in these united States alone was too much bother to pursue in that it only cost about $166 per murder. But, that only considers the possible cost of perpetrating the crimes and doesn't take the benefits into account?

'Cui Bono' is a latin phrase suggesting that a person or persons guilty of committing a crime might be found among those who stand to gain financially. The person(s) who benefit may not always be obvious. And, they may have cunningly created a scapegoat that successfully diverts attention elsewhere. So, where does the money trail for the events of 9/11 lead?

The Federal Reserve is the central banking system through which all financial transactions must flow. Anyone with a working knowledge of the history of the Federal Reserve System would agree that the Fed weilds enormous power. The Federal Reserve, along with other central banks in the world, have been implicated in fomenting and funding all of the major wars for the last one hundred years. Certainly, the Fed is powerful enough to exercise influence over the puny politicians comprising the 9/11 Commission and it's putrid executive director. The Fed easily possesses the power that would be required to keep incriminating information to their detriment from seeing the light of day. Should it come as any surprise then, that the Fed may very hold a master key to unlocking the truth about 9/11?

William Bergman worked at the Federal Reserve Bank of Chicago from July 1990 until early 2004 as an economist and senior analyst.

Bergman explains:

At the time I was also looking into and asking questions about currency flows. I thought these questions were worth pursuing, and was planning to raise them when I made the above-noted phone call to the Board of Governors. The currency component of M1 (Federal Reserve Notes circulating outside of banks) rose especially rapidly in July and August 2001. In fact, up to and including August 2001, that month (August 2001) was one of the three fastest growing months for the currency component of M1 since 1947, on a seasonally adjusted basis, even on the heels of significantly above-average growth in July 2001. Much of the July-August surge (over $5 billion above-average) seems to have been in the $100 denomination. Among other explanations, persons aware of any imminent terrorist attacks and concerned about possible asset seizures such as those that arose after the 1979 Iranian hostage crisis and the 1998 embassy bombings could have been trying to liquidate their bank accounts in July and August 2001. The money trail could provide important clues about people aware of, if not responsible for, the attacks. I looked at some internal data bearing on this issue that was available to anyone within the Federal Reserve’s internal computer network; after going back to look at this important data again a week or two later, it was no longer freely available, but password protected.

Full story:
Former Fed analyst questions M1 currency component spike prior to 9/11

http://www.muckrakerreport.com/id378.html

March 22, 2007 – William Bergman worked at the Federal Reserve Bank of Chicago from July 1990 until early 2004. He served as an economist for eight years, and then moved to a senior analyst position in a new department researching financial market and payment system risk policy issues. In late 2003, he was asked to consider an assignment in the money laundering area. Bergman accepted the assignment, underwent a background check, received credentials affording access to confidential banking information, and began working in the area. He was told that he was “part of the fight against terrorism” and that he “had been asking good questions.”

One aspect of the assignment to the money laundering area was for Bergman to develop a paper that, if accepted, could serve as a reference source for the Federal Reserve System.

Bergman decided to begin his new assignment by developing a 40 question Q&A in order to introduce himself and anyone else new to the money laundering area to the topic. He thought that the Q&A could serve as a primer that dealt with the fundamentals, including some history on money laundering, recent legal developments in the area, and the role of banking regulators.

After submitting his draft to a supervisor, Bergman received approval of his work and was told that it could be considered as a reference. However, in his Q&A, Bergman left one question without an answer. That is to say that Bergman submitted his 40 question Q&A with 40 questions, but only 39 answers. The supervisor that reviewed the draft told Bergman that he should continue his work by answering the only remaining unanswered question in the draft.

What prompted the unanswered question that Bergman incorporated into his draft? Bergman had noted that the Board of Governors of the Federal Reserve had issued supervisory letters to the 12 Reserve Banks in the weeks after September 11, 2001 urging scrutiny of suspicious activity reports in tracking terrorism activity and financing. However, Bergman also noticed that the Board of Governors had issued a similar letter, albeit one that did not refer explicitly to terrorism, on August 2, 2001[1]. According to Bergman, terrorism and terrorist financing were known to be part of ‘suspicious activity’ however, and the August 2, 2001 supervisory letter clearly called for scrutiny of suspicious activity, which implies and includes the tracking of terrorism activity and financing. The unanswered question on Bergman’s 40 question Q&A asked why the Board had issued the August 2, 2001 letter – a very fair, logical, and important question that has yet to be answered to this day.

Given the fact that the supervisor gave him the green light and directed him to find the answer regarding the August 2, 2001 supervisory letter, Bergman decided that the best method to discover the answer was to contact the staff of the Board of Governors of the Federal Reserve directly. In December 2003 he called the Board and inquired about the meaning and motivation behind the August 2, 2001 letter. Within two weeks his assignment was abruptly terminated and his credentials canceled.

Bergman explains:

At the time I was also looking into and asking questions about currency flows. I thought these questions were worth pursuing, and was planning to raise them when I made the above-noted phone call to the Board of Governors. The currency component of M1 (Federal Reserve Notes circulating outside of banks) rose especially rapidly in July and August 2001. In fact, up to and including August 2001, that month (August 2001) was one of the three fastest growing months for the currency component of M1 since 1947, on a seasonally adjusted basis, even on the heels of significantly above-average growth in July 2001. Much of the July-August surge (over $5 billion above-average) seems to have been in the $100 denomination. Among other explanations, persons aware of any imminent terrorist attacks and concerned about possible asset seizures such as those that arose after the 1979 Iranian hostage crisis and the 1998 embassy bombings could have been trying to liquidate their bank accounts in July and August 2001. The money trail could provide important clues about people aware of, if not responsible for, the attacks. I looked at some internal data bearing on this issue that was available to anyone within the Federal Reserve’s internal computer network; after going back to look at this important data again a week or two later, it was no longer freely available, but password protected.

Approximately one month after his money laundering work was terminated for what was described at the time as an egregious breach of protocol attributed to his contacting the staff of the Board of Governors, Bergman’s department was absorbed into another department, and his 14-year employment with the Federal Reserve ended. Bergman was told that the elimination of his position at the Federal Reserve had nothing to do with him personally – that it was an organizational matter. He was offered and accepted a severance package, and left the Chicago Federal Reserve Bank in March 2004.

Whether inquiring about the unusually high put options placed prior to 9/11 on airline companies such as American and United, or the World Trade Center Complex insurance companies such as Axa, Allianz, along with other insurance companies of interests, put options that then most likely made the insiders billions of dollars as a result of these companies’ stock values plummeting after 9/11, or about an unusual spike in the currency component of the M1 in July / August 2001 that appears to be $5 billion denoted in $100 bills – and what the reader is left with is more evidence that prior knowledge of 9/11 was rampant in the United States and that the event could have been prevented but was instead, enabled and exploited.

And what about the August 2, 2001 supervisory letter? What prompted it? Sadly, Americans are once again left with trying to determine for themselves - because nobody entrusted to uphold the rule of law free from passion or prejudice is willing to launch a thorough and purposeful criminal investigation - who knew what, and when.

Prior knowledge of 9/11 without action and / or effort to prevent the events from unfolding is at minimum – criminally negligent homicide – a felony. For many within the U.S. government and foreign intelligence community, as well as the banking cartel, for the entire wide-ranging set of un-indicted co-conspirators, justice waits, but must prevail.

See also:

Wayne Madsen links Kissinger to 9/11 financing
http://www.911blogger.com/node/5042

Federal Reserve: Hiding 9-11 Evidence?
March 26, 2007
Federal Reserve Bank of Chicago: Dramatic Development
http://www.wethepeoplefoundation.org/UPDATE/Update2007-03-26.htm

Money As Debt
Paul Grignon's 47-minute animated presentation of "Money as Debt" tells in very simple and effective graphic terms what money is, how it is being created and who really controls it.
http://video.google.de/videoplay?docid=-9050474362583451279&q=money+as+debt

America: Freedom To Fascism
http://freedomtofascism.com

Follow the money

This concept is crucial because it begs the question, what about the money trial? The Federal Reserve is about as federal as FedEx. Money is the root of all evil and it will make some people do some f-ed up shit. A governments worst enemy is the TRUTH!!!! Let's keep the ball rollin'... because it becomes down right obvious who has something to hide. Then, you find out who is helping to cover it up and I would call that a VERY STRONG CASE against those who took advantage of this country and its values to line their pockets with green paper printed with fancy ink. The TRUTH shall set us free and it is only a matter of time before JUSTICE prevails. History has shown that EVIL doesn't last, and the only way to solve any problems is through peace, good judgment, and TRUTH. WE MUST HAVE TRUTH FOR 9/11.
9/11 TRUTH = Closure for the families who lost loved ones on 9/11, the end to the occupation of Iraq, the restoration of the constitution, and the end to political BUREAUCRACY.

Do not lose hope, we are gaining ground exponentially. FIGHT FOR 9/11 TRUTH
The Truth Never Lies

could it also be

That knowing something really bad was about to happen, they wanted to increase the money supply to offset the natural reaction that would result in people hoarding and not spending? In other words, making sure that the gains of 9/11 weren't offset too much by the economic meltdown that could have occurred? Just speculatin... But yeah, middike, EXPONENTIALLY!! Exponents rock...

____

Real Truther a.k.a. Verdadero Verdadero

WTCdemolition.com - Harvard Task Force

 

I have often wondered

How new money is put into the system when they increase the money supply.
___________________
Together in Truth!

At least two ways:

Run the printingpress day and night... and don't dare publish the M3 (report of currency in circulation).

Or simply go into The Computer[s], and credit ones and zeros into the system and likewise pretend that nothing strange is afoot.

Fractional-reserve-banking is well suited for this con.

Home Loans, it seems to this writer, are the primary engine for this ass-fucking by the money-system. The Banks only pretends 'as if' they had the money to loan you (and charges interest on something they never had in the first place), to advance the con to a point where home costs inflate to absurd levels for a bunch of bricks and sticks on a pile of dirt.

e

Money, as we know it today...

Money, as we know it today, is based on debt. Please see the video, Money As Debt, for which I posted a link:

Money As Debt
Paul Grignon's 47-minute animated presentation of "Money as Debt" tells in very simple and effective graphic terms what money is, how it is being created and who really controls it.
http://video.google.de/videoplay?docid=-9050474362583451279&q=money+as+debt

Also, G. Edward Griffin's book "Creature from Jeckyl Island" is an excellent history of the Fed that helps one to understand it's nexus to the fraudulent misapplication of the federal income tax.

--
The true threat to liberty comes not from terrorists but from our political leaders whose natural inclination is to seize upon any excuse to diminish them.
~~ Walter Williams, Nightly Business Report, September 2001

Yes Yes

I know who controls it and how they make it but how do they inject it into the economy?

We just printed $20 billion.... how does that get into the system?

Do they just give it to the banks? DO they give it to their friends and tell them to all go out and buy stuff like Ferraris? Sending huge pallets of it overseas? Funding Black Ops?

How does the new money get into the system?
___________________
Together in Truth!

The Gobernment "pays its bills".

And dutifully reports back to We the People about its unfortunate deficit, and "taxes must be raised".

Secondly, interest IS collected on something that didn't exist in the first place. By paying most interest set-ups (extraordinary interest, far surpassing biblical usury. see a truth in lending statement for this tally, and just remember that the bulk of original money was simply scripted from thin air.)... by sweating with labor to pay this interest... We the People inject the inflation first and foremost.

And inflation is the inescapable hidden tax...

And inflation is the inescapable hidden tax. The result from an increase in the FIAT money supply being a devaluation of the currency, which is the ugly truth that the term "inflation" obscures.

Look at what happened to Germany in the 30s when they began printing money like crazy. A wheelbarrow full of German marks was required to buy a loaf of bread.

--
The true threat to liberty comes not from terrorists but from our political leaders whose natural inclination is to seize upon any excuse to diminish them.
~~ Walter Williams, Nightly Business Report, September 2001

If you want to learn more

If you want to learn more about the creation of money i would recommend the books by Murray Rothbard.

-What Has Government Done to Our Money?
-The Mystery of Banking.
-The Case Against the Fed.
-The Case for the 100 Percent Gold Dollar.
-Wall Street, Banks, and American Foreign Policy.
-History of Money and Banking in the United States
-etc

Some of these books can be downloaded at Mises.org.

"The process by which banks create money is so simple that the mind is repelled"
~ John Kenneth Galbraith

They inject it

through the Fed which buys government bonds -- with fantasy money -- and then gets interest on both the bonds and the fantasy money. To keep the ball rolling, the government has to spend that fantasy money, of course, which is why deficits are setting new records and the cost of the Iraq war truly don't matter...

Apart from that, commercial banks increase the money supply on their own, by simply creating debt money within computers.

It's the biggest fraud ever perpetrated. Makes even 9/11 look small in comparion, don't you think?
______________

interns < internets

hmmm..

i hate to admit this, but i work for a bank. the money that is printed by the federal reserve is shipped to the member banks of the fed system, and then to the commercial banks across the country.

_____________________________
Head up, eyes open, fist clenched

Hey

not your fault that the banking system is a scam. And apart from the trickery within, it is a service, after all. Also, you could be 911blogger's first double agent deep behind enemy lines. ;-)

One aspect I haven't fully understood is: How do commercial banks acquire cash to pay out the inflated debt money? Do the fed member banks lend them cash on demand?
______________

interns < internets

it's really up to the banks

they just make more loans by lowering their lending standards. or the government can just buy a bunch of crap it doesn't need, like for example it can buy back its bonds which replaces hard assets with liquid cash.

____

Real Truther a.k.a. Verdadero Verdadero

WTCdemolition.com - Harvard Task Force

 

Idea.... please comment

How to beat inflation and the banks.

Admit that inflation exists.

then stay ahead of the curve.

Double the cost of everything..... but at the same time double everones pay.

Everyone in the country would own their homes outright in less than a year. All loans would be paid off. All business would have their loans paid for. The taxes would increase and the national debt would be a thing of the past.

When it's said and done..we'll be back on an even playing field.....then knock a zero of the currency.... it won't matter as long as you do not take out a loan during that time.

there is a way to beat the system.... but it would involve taking our fate back from the banks.

Inflation could be beneficial if we actually account for it's existance instead of sweeping it under the carpet
___________________
Together in Truth!

Inflation could be beneficial?

No!

Trying to stay ahead of the curve keeps you on the treadmill that they want you on in the first place.

Take away the power to create money and control interest from a private bank called the Federal Reserve.

A return to real money that is backed with something of tangible value, (gold, silver, etc.) is the only way.

Do the research. You have been given some leads and direction.

Here is some more:

again
http://www.freedomtofascism.com

http://www.givemeliberty.org

http://www.originalintent.org (see "Education")

http://www.libertydollar.org/

G. EDWARD GRIFFIN

Watch the movie I gave you the link for above..

Find "Money, banking, and the Fed", a film that may be available at

http://www.mises.org

--
The true threat to liberty comes not from terrorists but from our political leaders whose natural inclination is to seize upon any excuse to diminish them.
~~ Walter Williams, Nightly Business Report, September 2001

The Great Devaluation

Would only F the banks though?

Industry should boom as well as tourism

ignoring the fact the inflation exists is F-ing us!

When it's over we could easily return to the gold system and the bankers would be the leading proponent
___________________
Together in Truth!

I disagree

returning to precious metals empowers those that have them. Now who might that be?

There is nothing wrong with fiat money per se -- as long as it's a public good/service, without interest benefitting private entities, it's all good. The key problem today is not the fiat nature of the currency, it's that certain individuals profit greatly from merely providing society with a means of transaction of real goods -- money -- by having established a private cartel that monopolized this means of transaction.
______________

interns < internets

exactly Bruce

as long as the government that represents the interests of the people is in charge of issuing money it doesn't matter if it's backed by metal or not. it is backed ultimately by the value of what we as Americans produce. any inflation can be canceled out by raising taxes in order to reduce the money supply. there are SO many ways to work out a medium of exchange it's pathetic that we subject ourselves to the current system for which there is no better word than RACKET.

____

Real Truther a.k.a. Verdadero Verdadero

WTCdemolition.com - Harvard Task Force

 

This is interesting

I don't have the expertise to say what it means, but it seems to fit with other suspicious fiscal behavior such as the put options and Silverstein's sudden acquisition of the WTC (replete with terrorism insurance).

The put options scenario has been studied by academics and declared a seriously anomalous event (that is, definitive evidence of insider trading). Similarly, this sounds like more than business as usual:

"In fact, up to and including August 2001, that month (August 2001) was one of the three fastest growing months for the currency component of M1 since 1947, on a seasonally adjusted basis, even on the heels of significantly above-average growth in July 2001."

It only makes sense that if a circle of financial elites received word of the impending attacks, they would, as greedy bastards tend to, act on that information no matter how suspicious their behavior would look in retrospect.

Debunkers (and some progressives immediately after 9/11) tend to say the put options were evidence of Bin Laden's people capitalizing on their own crime; however, this is contradicted by the Commission itself, which attributes the unusual trading to a "single US-based institutional investor" that it claims had no ties to Al Qaeda. Of course, the Commission doesn't name the investor, so the information is worthless.

All of which is to say, there is very general fiscal proof here that someone (or probably many people) within the United States knew the attacks were coming and tried to profit from them.

The investor

was ex-CIA executive director Buzzy Krongard's "Banker's Trust". Apart from "Banker" and "Trust" sounding funny together, this most certainly is a direct lead to AQ...though of course not for the people that somehow forgot about the core and WTC7.
______________

interns < internets

I wonder if that's one of Kucinich's narrow issues...

It did seem to me to be one of the weakest of the 9/11 Omission Report's weaknesses--"90% of the trades were traced to a single institutional investor with no conceivable ties to al Qaeda." Isn't the whole point of the Patriot Act that ANYONE could conceivably linked to al Qaeda?

____

Real Truther a.k.a. Verdadero Verdadero

WTCdemolition.com - Harvard Task Force

 

I would love

for that to be the case. It would be a shrewd political move, because it's not like saying "let's re-open 9/11," but it might achieve the same thing.

SPIKE DID NOT HAPPEN !!

THIS pre-911 MONEY SPIKE DID NOT HAPPEN!!!

it is a demonstrable myth!!!

summarized for your benefit here:
http://u2r2h.blogspot.com/2007/03/911-terrorist-money-supply-myth.html

Regarding "INFLATION is good"
... read the part where proudhon found the solution:
http://u2r2h.blogspot.com/2007/03/911-terrorist-money-supply-myth.html#p...

Solution: (INFLATE by working hard and build many houses with your labour!! and thereby de-value-ing the other properties!!) There are many more wisdoms in this text, you need time to read it.

Question(s)...

Is it true that Proudhon believed that land (property) can only be rightfully possessed by use or occupation?

If so, why should I work hard and build many houses with my labor? I can only live in one at a time. How long must one house be empty before Proudhon could move in without worrying about my Right to protest his doing so? How long must I have parked my tractor and not used it before Proudhon would have considered it no longer my property and taken it to plow his own fields?

Please explain the significance of the period-to-period percentage change at annual rates included in the charts you configured at economagic. I assume that it must have some significance in demonstrating a spike "myth" for you to request this calculation for your charts.

I just looked at a simple M-1 chart for the period 2001-1 thru 2001-10 and there is a significant increase beginning mid June through mid August, followed by a dramatic increase in mid August to September 12th. I chose a larger graphic to discern more closely to the day when the changes ocurred.

http://www.economagic.com/em-cgi/charter.exe/fedstl/m1sl+2001+2001+0+0+0...

http://www.economagic.com/em-cgi/charter.exe/fedstl/m1sl+2001.4166666666...

Bergman says "Much of the July-August surge (over $5 billion above-average) seems to have been in the $100 denomination." But what could be the reason for the dramatic increase in the month immediately preceeding September 11th? In Haas' article, Bergman doesn't say. I don't know how to determine the dollar denominations in the surge to which Bergman referred.

--
The true threat to liberty comes not from terrorists but from our political leaders whose natural inclination is to seize upon any excuse to diminish them.
~~ Walter Williams, Nightly Business Report, September 2001