September 11 Commission Report - Gnostic Liberation Front

were substitutes for the fraudulent notes. Rather than simply having to match buy and
sell orders, which was the essence of resolving the “fail” problem, it appears the Fed was
doing more than just matching and balancing – it was pushing new notes on the market
with a special auction.
“Acute settlement problems with the on-the-run ten-year note led the U.S. Treasury to reopen the
issue on October 4 and hold an unusual “snap” auction of new ten-year securities.” [Payment System
Disruptions and the Federal Reserve Following September 11, 2001, Jeffrey M. Lacker, Federal
Reserve Bank of Richmond, Richmond, Virginia, 23219, USA, Federal Reserve Bank of Richmond
Working Paper 03-16, December 23, 2003]
If the Federal Reserve had to cover-up the elimination of $240 Billion in bogus securities,
they could not let the volume of capital shrink by that much in the time of a monetary
crisis. They would have had to push excess liquidity into the market, and then phase it
out for a soft landing, which is exactly what appears to have happened. In about two
months, the money supply was back to where it was prior to 9/11.
The need for an extra $300Billion in liquidity at the time of the “crisis” seems to be a bit
of a mystery, and there has not been a significant effort to explain it. The immediate
demand for cash (ATM machines, checking accounts etc.) never exceeded $2 Billion.
The U.S. banks had already agreed amongst themselves to not force balance settlements,
so the Federal Reserve ‘loans’ which were supposedly necessary to save the banking
system never needed to happen. The SEC had indicated the financial companies could
continue financial reporting as if any transactions from that day had never occurred.
Most importantly, all the transactions pumped into the WTC financial centers were
replicated in their Disaster Recovery sites, which were up and running in two days. All
the original settlement data from buyers and sellers should have been there, unless
someone electronically tunneled into the trading systems masquerading as a bank and
unloaded bogus data, which is what Convar suggested had happened. Given security on
inter-bank financial transactions, the likelihood of this borders on impossible.
With the regulatory changes that followed in the immediate aftermath of the attack on the
WTC, it was not the banking system that required a $300 billion monetary infusion. The
$300 billion was required for something else. This report hypothesizes that the delays in
structuring settlements of “fails” were caused by an absence of matching buy/sell records,
because the trade data was actually provided by a program run from a war game
simulation server from within the World Trade Center, and connected to the trading
system. The fraudulent bonds were put up for a settlement that was not forthcoming, and
in the settlement process at the Fed, were replaced with new Federal Reserve securities.
Hence, the bogus bonds were replaced with legitimate U.S. debt, and the $240 Billion in
bogus bonds were written off the books as the Fed’s reduction in the temporary boost in
M3 required to “prevent a crisis.”
The only conclusion one could reach is that if there were $240 billion in illegal securities
in circulation, all due at once, one could not imagine a more opportune moment to make
those securities disappear than the suspension of all regulations and the perceived
justification to increase the monetary supply by at least twice that amount. The
THE SEPTEMBER 11 COMMISSION REPORT Page 198