Tao Economics

Two huge interesting events seem to be accuring at the same time. What's interesting is the mystery behind both. First the $130 billion bearer bonds trying to be "smuggled" and cashed in by some Japanese nationals. First reported here: http://www.asianews.it/index.php?l=en&art=15456&size=A

As Mr. Denninger notes that is seems that there is a good chance (if they are real) that they were illegally issued at some point in time.

So let's assume that the certificates are real, as German media seems to believe and which, by the way, makes logical sense given what they were and the sheer impossibility of cashing a fake $500 million bond.

Ok, who has $130 billion in bearer bonds? Remember, bearer instruments haven't been issued by the Treasury since 1982, when they became illegal to issue, at least to US institutions and residents (there was an exception carved out for Treasury instruments issued to non-US residents in 1985 - a time of high deficits) The answer to that question: it is rather unlikely that there remains $130 billion of legitimate US Bearer issuance outstanding anywhere - to anyone.

Mr. Holmes would be initially puzzled by such a caper. On the one hand we have the impossibility of the bonds being real, because there simply isn't $130 billion of issues remaining outstanding. On the other hand we have the impossibility of negotiating a fake $500 million bearer instrument, making the exercise of counterfeiting one expensive and futile.

This leaves us with more questions than answers at this point.

Or does it?

As Mr. Holmes is famously rumored to have said, "once you eliminate the impossible, whatever remains, however implausible, must be the truth."

So what remains? Let's run a theory here - one of the few possible remaining options, given the exclusion of what we know not to be true...

Are we willing to assume that all the "issue" of Treasury bonds has been done "above board" as required by law.

Here is an interesting note from democracyman at http://www.phpbbplanet.com/damessageboard/viewtopic.php?t=5413&mforum=da...

I expect they are real, I expect this is part of the shadow world of super
elites, this mafia and their deals.

I expect this has been going on for awhile, elites know the jig is up that we
are going to a dark age and realistically when TSHTF they know that their
best bet is Switzerland. As we all know Switzerland is NOT a shit hole common
Republic, so funds are more safe there.

I think this is part of a ongoing elite mafia war that is emerging this
century. This will continue and be bloody.

The Japanes elites will be pissed and other elites will be pissed, they will
not go down without a fight.

You can't get a whore republic to bleed itself dry without payouts to the
elites running said government. This is true for a Republic or whatever
government. Same for Chinese one party controlled republic, same for
Japan's whore republic. ETC

And if you haven't been reading about the possible stolen gold form the Royal Canadian Mint then you are missing a VERY interesting story. When an audit of the mint couldn't figure out where $10 to $20 million (maybe more) worth of gold went they hired the federal authorities to investigate it.

The Canadian government is investigating the disappearance of an amount of gold and precious metals from the Royal Canadian Mint and has asked the federal police to probe a possible heist.

Minister of State for Transport Rob Merrifield said Tuesday he called in the Royal Canadian Mounted Police (RCMP) to conduct a "full investigation."

External auditors had been ordered to investigate a discrepancy between the mint's 2008 financial accounting of its precious metal holdings and its actual stockpile. Many had expected the audit would point to sloppy bookkeeping.

The investigation was ordered after mint officials said the audit would not be able to reconcile the discrepancy.

Are these both just massive heists? If so they are some of the largest the world has ever seen. No doubt they would make a good James Bond movie. What are the implications to all of this? Well to be honest I don't know, except a lot of faith is being shattered in our institutions around the world. I strongly suggest keeping up with these stories.