Road to WW3 Global Banking Cartel Has One Card Left To Play

[Ed Jewett]

The Road to World War III - The Global Banking Cartel Has One Card Left to Play
Part I to David DeGraw's new book, "The Road Through 2012: Revolution or World War III." This is the second installment to a new seven-part series that we will be posting throughout the next few weeks. You can read the introduction to the book here.
I: Economic Imperial Operations
II: Violence on the Horizon
III: The IMF Riot, Step 3.5
IV: Bang the Drums of War
[URL="http://ampedstatus.com/the-road-to-world-war-iii-the-global-banking-cartel-has-one-card-left-to-play#china"]V: The Chinese Scapegoat: Trade &
—-Currency Wars[/URL]
VI: Moves Upon the Grand Chessboard
VII: Resource Wars
VIII: Private Military Complex
IX: History Repeats Itself

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http://ampedstatus.com/the-road-to-world-w...rd-left-to-play

[Magda Hassan]

[Magda Hassan]

Part Two: Inside the Global Banking Intelligence Complex, BCCI Operations I: All Roads Go Through BCCI
II: BCCI & US Intelligence
III: Af-Pak Covert Operations
IV: The Iran-Contra Affair
V: Kissinger Associates & Iraqgate-BNL
[URL="http://ampedstatus.com/inside-the-global-banking-intelligence-complex-bcci-operations#cover"]VI: The Ultimate Conspiracy: The BCCI
——Cover-Up[/URL]
VII: Wall Street & US Banking Industry
VIII: The Savings & Loan Crisis
IX: The Lessons of BCCI

To get a more complete understanding of our current crisis, we need to look at the history of events that led up to it. We need to peer deeply into the inner workings of the Global Banking Intelligence Complex. Without acknowledging and exposing the covert forces that are aligned against us, we will not be able to effectively overcome them.
In the past I have shied away from going too deeply into the details of the intelligence world out of fear of being written off and dismissed as a conspiracy theorist. If I hadn’t spent the majority of the past 20 years investigating global financial intelligence operations, I certainly wouldn’t believe half of this myself. Given the severity of our current crisis and the imminent devastating implications, I now realize that I must go deeper into covert activities than I publicly ever have. The information I am about to report is very well-sourced and documented, and needs to be covered before we can proceed to exposing present operations.
I: All Roads Go Through BCCI
Here is a partial list of the economic and political scandals that I investigated throughout the 1980s and early ’90s:

The Savings & Loan scandal;
Stock market manipulation and money laundering;
Iran-Contra Affair;
The October Surprise and Iran hostage crisis;
Iraqgate-BNL and the rise and funding of Saddam Hussein;
Pakistan’s nuclear program and the selling of bomb-making technology to Libya, Iran and North Korea;
The rise and funding of the Afghan Mujahideen (founding and funding of the Taliban and Osama bin Laden’s Al Qaeda network);
Illegal weapon sales to Iran and Saudi Arabia;
The proliferation of Middle Eastern terrorism;
The international drug trade run by people like Manuel Noriega and Pablo Escobar.

All of these scandals had one vital thing in common, the Bank of Credit and Commerce International (BCCI).
In December 1992, the US Senate Foreign Relations Committee on Terrorism, Narcotics and International Operations delivered a report on their investigation into the bank, entitled “The BCCI Affair.” The report would disclose the largest political corruption case in the history of the global economy. As the Senate Committee summed it up:

“BCCI’s criminality included fraud by BCCI and BCCI customers involving billions of dollars; money laundering in Europe, Africa, Asia, and the Americas; BCCI’s bribery of officials in most of those locations; support of terrorism, arms trafficking, and the sale of nuclear technologies; management of prostitution; the commission and facilitation of income tax evasion, smuggling, and illegal immigration; illicit purchases of banks and real estate; and a panoply of financial crimes limited only by the imagination of its officers and customers.
Among BCCI’s principal mechanisms for committing crimes were its use of shell corporations and bank confidentiality and secrecy havens; layering of its corporate structure; its use of front-men and nominees, guarantees and buy-back arrangements; back-to-back financial documentation among BCCI controlled entities, kick-backs and bribes, the intimidation of witnesses, and the retention of well-placed insiders to discourage governmental action.”

The BCCI scandal gave citizens of the world a rare glimpse into the inner workings of the covert global banking intelligence power structure, revealing power politics in its purest form. BCCI was modeled after the world’s most powerful intelligence agencies and multinational corporations. It represented the evolution of organized crime into the new world of the global economy, rendering nation-states obsolete. BCCI transcended religions and nationalities; it cut across the entire political spectrum, uniting countries and groups that, on the surface, were considered rivals, yet were unified in their pursuit of power.
BCCI consisted of a complex alliance of intelligence agencies, multinational corporations, weapons dealers, drug traffickers, terrorists, global bankers and high-ranking government officials. It involved leaders from 73 countries and formed what was described as “an elaborate corporate spider web.”
As former US Senate investigator Jack Blum described it:

“The problem that we are all having in dealing with this bank is that… it had 3,000 criminal customers and every one of those 3,000 criminal customers is a page one story. So if you pick up on one of [BCCI's] accounts you could find financing from nuclear weapons, gun running, narcotics dealing, and you will find all manner and means of crime around the world in the records of this bank.”

BCCI would become known as the Bank of Crooks and Criminals with clientele such as Saddam Hussein, Manuel Noriega, Pablo Escobar, Abu Nidal, the Qassar brothers, Muammar Gaddafi, Ben Banerjee, Cyrus Hashemi, Ferdinand Marcos, Rodriguez Gacha, Alan Garcia, Daniel Ortega, Adolfo Calero, Adnan Khashoggi, Manucher Ghorbanifar, Sarkis Soghanalian, the Palestine Liberation Organization, Islamic Jihad holy warriors the Mujahideen, including Osama bin Laden and many others.
In a 1991 Time magazine article entitled, “The Dirtiest Bank of All,” investigative journalists Jonathan Beaty and S.C. Gwynne summed up BCCI this way:

“Nothing in the history of modern financial scandals rivals the unfolding saga of the Bank of Credit & Commerce International, the $20 billion rogue empire that regulators in 62 countries shut down early this month in a stunning global sweep. Never has a single scandal involved so much money, so many nations or so many prominent people.
Superlatives are quickly exhausted: it is the largest corporate criminal enterprise ever, the biggest Ponzi scheme, the most pervasive money-laundering operation and financial supermarket ever created for the likes of Manuel Noriega, Ferdinand Marcos, Saddam Hussein and the Colombian drug barons.”

In another report Beaty and Gwynne added:

“This is the story of how the wealthy and corrupt in Latin America managed to steal virtually every dollar lent to their countries by Western banks, creating the debt crisis of the 1980s; how heads of state… skimmed billions from their national treasuries and hid them in Swiss and Caymanian accounts forever free from snooping regulators; how Pakistan and Iraq got materials for nuclear weaponry and how Libya built poison-gas plants.”

II: BCCI & US Intelligence
Even though BCCI was a Middle Eastern-based bank, investigations by the US Senate, NY Attorney General Robert Morgenthau and several award-winning journalists revealed that BCCI was run by the CIA and top US officials. CIA covert operations were run through BCCI’s “black network.” Former CIA directors George Bush Sr., William Casey and Richard Helms, former Defense Secretary Clark Clifford and former Secretary of State Henry Kissinger were all key players and shielded the bank from investigations throughout its reign. BCCI founder Agha Hasan Abedi and former CIA director William Casey met secretly for years. BCCI’s Mohammed Irvani was partners with former CIA director Richard Helms. BCCI frontmen Kamal Adham and A.R. Khalil were top Saudi intelligence directors and primary CIA liaisons for the entire Middle East. Many high-ranking Republicans and Democrats were vital to the bank’s operations, along with top corporate executives at First American Bank, Bank of America, PR firm Hill & Knowlton, cable company TCI, and auditing firms Price Waterhouse and Ernst & Young - to name just a few US companies that played crucial roles.
The CIA, DIA, and NSC used BCCI as their own private bank, sending billions of dollars in covert funding and weapons to organizations and countries with which we are now in conflict - most notably the Mujahideen in Afghanistan (which evolved into Al Qaeda and the Taliban), Pakistan’s ISI, Saddam Hussein in Iraq and the government of Iran.
BCCI investigations gave us the most detailed and well-documented view into the inner workings of the “war racket” that we have ever had. The BCCI Affair blatantly exposed how global intelligence agencies and banking interests covertly fund terrorists and drug cartels all over the world. As investigative reporter Chris Floyd wrote, “Instead of stopping the drug-runners and terrorists, the CIA decided to join them, using BCCI’s secret channels to finance ‘black ops’ all over the world.”
Reporting in Time magazine, Beaty and Gwynne revealed some of the details:

“From interviews with sources close to B.C.C.I., TIME has pieced together a portrait of a clandestine division of the bank called the ‘black network,’ which functions as a global intelligence operation and a Mafia-like enforcement squad…. The black network — so named by its own members — stops at almost nothing to further the bank’s aims the world over.
The more conventional departments of B.C.C.I. handled such services as laundering money for the drug trade and helping dictators loot their national treasuries. The black network, which is still functioning, operates a lucrative arms-trade business and transports drugs and gold. According to investigators and participants in those operations, it often works with Western and Middle Eastern intelligence agencies. The strange and still murky ties between B.C.C.I. and the intelligence agencies of several countries are so pervasive that even the White House has become entangled. As TIME reported earlier this month, the National Security Council used B.C.C.I. to funnel money for the Iran-contra deals, and the CIA maintained accounts in B.C.C.I. for covert operations. Moreover, investigators have told TIME that the Defense Intelligence Agency has maintained a slush-fund account with B.C.C.I., apparently to pay for clandestine activities….
The black network was a natural outgrowth of B.C.C.I.’s dubious and criminal associations…. Its original purpose was to pay bribes, intimidate authorities and quash investigations. But according to a former operative, sometime in the early 1980s the black network began running its own drugs, weapons and currency deals….
Sources have told investigators that B.C.C.I. worked closely with Israel’s spy agencies and other Western intelligence groups as well, especially in arms deals. The bank also maintained cozy relationships with international terrorists, say investigators who discovered suspected terrorist accounts for Libya, Syria and the Palestine Liberation Organization in B.C.C.I.’s London offices….
U.S. intelligence agencies were well aware of such activities. ‘B.C.C.I. played an indispensable role in facilitating deals between Israel and some Middle Eastern countries,’ says a former State Department official. ‘And when you look at the Saudi support of the contras, ask yourself who the middleman was: there was no government-to-government connection between the Saudis and Nicaragua.’”

III: Af-Pak Covert Operations
The CIA worked in partnership with BCCI in what was, at the time, the agency’s largest covert operation ever, pumping an estimated $10 billion into funding the Afghan Mujahideen’s anti-Soviet Jihad.
In a 1992 article entitled, “The Riyadh Connection,” Time magazine reported:

“B.C.C.I. was similarly entwined in another key U.S. intelligence operation of the 1980s: the supply of arms and money to the Afghan rebels. While such clandestine support was legally condoned, B.C.C.I. officials have told reporters that CIA Director William Casey… struck a deal that included off-the-books operations never reported to the U.S. Congress.”

Pakistan would play a pivotal role in support of the Afghan Mujahideen. Pakistan was run by a corrupt militant oligarchy and was the operational home of BCCI. In “Modern Jihad: Tracing the Dollars Behind the Terror Networks,” investigative reporter Loretta Napoleoni revealed details:

“As soon as Abedi’s bank [BCCI] came on board, all [CIA] covert operations were passed to its ‘black network’, virtually a secret banking institution within the bank. Its headquarters were in Karachi and it was from this city that the underground network acted as a full-service bank for the CIA. With about 15,000 employees, it operated in a similar fashion to the Mafia. It was a fully integrated organization; it financed and brokered covert arms deals among different countries, it shipped goods using its own fleet, insured them with its own agency and provided manpower and security en route. In Pakistan, BCCI officials knew whom to bribe and when to do it. They also knew where to channel the funds. Richard Kerr, the former CIA director who admitted that the CIA had secret BCCI accounts in Pakistan, confirmed that those accounts had been opened to distribute the CIA funds to Pakistani officers and members of the Afghan resistance. By the mid-1980s, the black network had gained control of the port of Karachi and handled all customs operations for CIA shipments to Afghanistan, including the necessary bribes for the ISI [Pakistan’s intelligence service]. It was BCCI’s job to make sure that cargoes of arms and equipment were discharged quickly….
As the war progressed, costs soared. There was constant shortage of money along the pipeline to supply the Mujahedin and so the ISI and CIA began looking for additional sources of income. One that proved viable was drug smuggling. Soon the narcotics-based economy took over the traditional agrarian economy of Afghanistan…. Within two years the Pakistan-Afghanistan borderland had become the biggest centre for the production of heroin in the world and the single greatest supplier of heroin on American streets, meeting 60 per cent of the US demand for narcotics. Annual profits were estimated between $100 billion and $200 billion. . . . In 1995, the former CIA director of Afghan operations, Charles Cogan, admitted that the CIA had indeed sacrificed the drug war to fight the Cold War.”

In “Afghanistan 1979-1992: America’s Jihad,” investigative journalist Tim Weiner reported:

“The CIA’s pipeline leaked. It leaked badly. It spilled huge quantities of weapons all over one of the world’s most anarchic areas. First the Pakistani armed forces took what they wanted from the weapons shipments. Then corrupt Afghan guerrilla leaders stole and sold hundreds of millions of dollars’ worth of anti-aircraft guns, missiles, rocket-propelled grenades, AK-47 automatic rifles, ammunition and mines from the CIA’s arsenal. Some of the weapons fell into the hands of criminal gangs, heroin kingpins and the most radical faction of the Iranian military…. While their troops eked out hard lives in Afghanistan’s mountains and deserts, the guerrillas’ political leaders maintained fine villas in Peshawar and fleets of vehicles at their command. The CIA kept silent as the Afghan politicos converted the Agency’s weapons into cash.”

Through this operation Osama bin Laden’s Al Qaeda network was formed. Bin Laden had accounts in BCCI and ran a CIA/BCCI-funded camp. [I'll go into further detail on this aspect of the BCCI Affair in the next report.]
BCCI also funded Pakistan’s nuclear weapons program when they set up the Khan Institute of Engineering Sciences and Technology. Pakistan then went on to sell the technology to Libya, Iran and North Korea. As a Chicago Sun Times report summed it up:

“[Pakistan's] President Pervez Musharraf has pledged that the disgraced founder of Pakistan’s nuclear weapons program can keep the vast wealth he accumulated selling bomb-making technology to rogue states around the world. Just days after Musharraf provoked worldwide consternation by pardoning Abdul Qadeer Khan for supplying nuclear expertise to Libya, Iran and North Korea, he told the Sunday Telegraph he would also spare the scientist’s property or assets. ‘He can keep his money,’ Musharraf said, adding there had been good reason not to investigate the origin of Khan’s suspicious wealth before 1998, when Pakistan successfully tested its first nuclear weapon. ‘… you have to ask yourself whether you act against the person who enabled you to get the bomb.’ Khan is thought to have earned millions of dollars from his sale of nuclear know-how, beginning in the late 1980s. Much of the money was funneled through [BCCI] bank accounts in the Middle East.”

IV: Iran-Contra Affair
George Bush Sr. and current Secretary of Defense Robert Gates were key players in the BCCI financed Iran-Contra Affair. As the US Independent Counsel For Iran/Contra Matters investigation stated:

“Robert M. Gates was the Central Intelligence Agency’s deputy director for intelligence (DDI) from 1982 to 1986. He was confirmed as the CIA’s deputy director of central intelligence (DDCI) in April of 1986 and became acting director of central intelligence in December of that same year. Owing to his senior status in the CIA, Gates was close to many figures who played significant roles in the Iran/contra affair and was in a position to have known of their activities.”

Leslie Alan Aspin, a British CIA agent who was killed in 1989, had classified documents proving Bush Sr.’s involvement in illegal covert weapon sales to Iran. A 1991 report in New York Magazine by Christopher Byron revealed some details and was later summed up in The Reference Shelf:

“In a ten-page statement dated May 1. 1987, Aspin describes how he organized a 1984 BCCI financed TOW missile shipment from Portugal to Iran on behalf of Oliver North. Though North was at that time on the staff of the National Security Council, his recently declassified diaries indicate that he was spending much of his time working for Bush.”

Key Iran-Contra asset Oliver North was involved in the operations and was working directly for Bush Sr., who was Vice President at the time. North maintained several accounts in BCCI which he used to finance his covert operations. As Time magazine reported:

“… the National Security Council used B.C.C.I. to funnel money for the Iran-contra deals…. When American arms destined for Iran and Iraq passed through Israel, for example, B.C.C.I. was frequently the broker and financier…. There was, for example, the highly sensitive question of B.C.C.I.’s direct involvement in the secret arms-for-hostages deals in Iran during the 1980s, in which it acted as a broker and financier of weapons sales. Ollie North maintained three accounts at the B.C.C.I. Paris branch, and B.C.C.I. was used to transfer money to the contras.”

George Bush Sr. would go on to pardon convicted Iran-Contra figures - former Defense Secretary Caspar Weinberger and five former CIA employees; Elliott Abrams, Robert McFarlane, Duane Clarridge, Alan Fiers, and Clair George. Robert Gates then went on to serve as Director of the CIA under Bush Sr., and is currently serving as Secretary of Defense under President Obama, having been selected to that position by former President George Bush Jr..
V: Kissinger Associates & Iraqgate-BNL
George Bush Sr. and former Secretary of State Henry Kissinger were also heavily involved in another illegal covert operation run through an Italian BCCI-linked bank called Banca Nazionale del Lavoro (BNL). BNL was used to covertly funnel billions of dollars to Saddam Hussein. This scandal would become known as Iraqgate.
In April 1992, former Congressmen Henry B. Gonzalez (TX-20) stated the following in the Congressional Record:

“Kissinger Associates, Scowcroft, Eagleburger, Stoga, Iraq, and BNL
Mr. GONZALEZ: ‘Mr. Speaker, today I will talk about Henry Kissinger, his consulting firm Kissinger Associates, two former Kissinger Associates directors, Lawrence Eagleburger and Brent Scowcroft, and the chief economist at Kissinger Associates, Alan Stoga.
I will explore their links to Banca Nazionale del Lavoro [BNL] and Iraq, and the Bush administration’s handling of the BNL scandal. But first, I will provide some background information on the BNL scandal….
The $4 billion plus in BNL loans to Iraq between 1985 and 1990 were crucial to Iraqi efforts to feed its people and to build weapons of mass destruction. In addition, the BNL loans were crucial to Reagan and Bush administration efforts to assist Saddam Hussein….
It is truly amazing that the BNL scandal went on as long as it did. Various agencies within our Government knew of BNL’s role in bankrolling Iraq–yet they supposedly did not know that the loans were unauthorized or not properly reported….
Several of BNL’s high level friends in the United States should have been aware of the BNL loans to Iraq. The high level patrons that I am referring to are Henry Kissinger, and his Kissinger Associates compadres, Brent Scowcroft and Lawrence Eagleburger….
I will reveal that both Mr. Eagleburger and Mr. Scowcroft played a key role in the Bush administration’s handling of the BNL scandal, even though BNL was a paying client of Kissinger Associates just months prior to the BNL scandal becoming public….
Kissinger Deliberately Misleads Public
Until recently, Mr. Kissinger was a member of the BNL’s international advisory board and during the height of the BNL-Atlanta scandal BNL was a paying client of Kissinger Associates.
While Henry Kissinger was a paid member of the BNL’s advisory board for international policy between 1985 and June 1991, he received at least $10,000 for attending each meeting of the BNL advisory board.
Other BNL advisory board members included David Rockefeller, the chairman of the Rockefeller Group and a director of Chase Manhattan Bank, Pierre Trudeau, the former Prime Minister of Canada, Lord Thornycroft, the former British Minister of Defense, and other politically well-connected international notables.
After my April 25, 1991, floor statement on Mr. Kissinger, he told the Financial Times newspaper that he had resigned from the BNL advisory board a week before the BNL indictment in February 1991 because `he did not want to answer questions about such incidents.’
Two weeks ago, the prominent TV show, ‘60 Minutes,’ revealed that Kissinger had not resigned from the BNL advisory board in February 1991, as he had told the Financial Times. In fact, `60 Minutes’ reported that Mr. Kissinger served on BNL’s advisory board until his contract expired in the summer of 1991, more than 4 months after the date he had previously reported.
Mr. Kissinger was not the only Kissinger Associates employee that dealt with BNL. Mr. Brent Scowcroft, the vice chairman and Mr. Lawrence Eagleburger, the president of Kissinger Associates also had relationships with BNL.
Brent Scowcroft, BNL, and Iraq
One of the most prominent of the Kissinger Associates alumni is Brent Scowcroft, President Bush’s current National Security Adviser and head of the NSC staff. . . .
Scowcroft often took charge of the National Security Council while Kissinger was fulfilling his duties as Secretary of State, and in 1975 he succeeded Kissinger as National Security Adviser to President Ford….
In 1982, Scowcroft joined Kissinger in setting up Kissinger Associates. Scowcroft served as vice chairman and head of Kissinger Associate’s Washington, DC, office until becoming the head of the National Security Council under President Bush in January 1989….
Alan Stoga–Kissinger Associates
Another link between Kissinger Associates, BNL and Iraq is Alan Stoga. Alan Stoga is a former economist at First Chicago Bank and is currently a director of Kissinger Associates. Mr. Stoga is said to be an expert in country risk analysis and international finance. He has been interested in the Middle East for many years and has made extensive visits to the area….
Conclusion
BNL was a client of Mr. Scowcroft’s while he was the vice-chairman of Kissinger Associates. Mr. Scowcroft regularly provided advice to BNL’s management and received hefty fees in return.
Mr. Scowcroft and his staff at the National Security Council, along with the State Department, masterminded the Bush administration’s handling of the BNL scandal in order to mitigate the damage it would have caused to United States-Iraq relations. In the process they trampled on United States law enforcement efforts and repeatedly misled the Congress and the American public about the United States policy toward Iraq….
As for Mr. Kissinger, he misled the public about his relationship with BNL and about his firm’s contact with Saddam Hussein. Mr. Stoga misled the Banking Committee about the reasons for his trip to Iraq in the summer of 1989 when he met with Saddam Hussein to discuss Iraq’s debt problems.’”

Kissinger and his firm Kissinger Associates played a key role throughout BCCI’s entire existence. The Senate investigation report had an entire chapter focusing on Kissinger’s role, entitled “BCCI And Kissinger Associates.” After the report was released to the Senate Foreign Relations Committee, Henry Kissinger got them to redact several sections from the Government Printing Office’s final hardcopy version.
VI: The Ultimate Conspiracy: The BCCI Cover-Up
In Jonathan Beaty and S.C. Gwynne’s ground-breaking book on BCCI, entitled “The Outlaw Bank,” they detailed the overwhelming evidence proving the dominant role US intelligence, governmental agencies and global banking interests played in BCCI operations and in covering up the bank’s scandalous and illegal activities. As they reported:

“Perhaps the most disturbing aspect of the BCCI affair in the United States was the failure of U.S. government and federal law enforcement to move against the outlaw bank. Instead of swift retribution, what took place over more than a decade was a cover-up of major, alarming proportions, often orchestrated from the very highest levels of government. When the Justice Department finally moved decisively against BCCI in late 1991, it did so reluctantly.”

As the US Senate report revealed:

“The political connections of BCCI’s U.S. lawyers and lobbyists were critical to impeding Congressional and law enforcement investigations from 1988 through 1991, through a variety of techniques that included impugning the motives and integrity of investigators and journalists, withholding subpoenaed documents, and lobbying on Capitol Hill to protect BCCI’s reputation and discourage efforts to close the bank down in the United States.”

As Beaty and Gwynne revealed in detail, government documents exposing BCCI’s criminality went back to 1979. As they wrote, “authentic, unambiguous information” on the bank’s illegal activity was presented to the State Department, Justice Department, Drug Enforcement Agency, Internal Revenue Service, Commerce Department, Customs Department, Central Intelligence Agency, National Security Agency, Defense Intelligence Agency, Department of Energy, and the White House’s National Security Council.
Perhaps more than anyone, the Treasury Department and Federal Reserve had extensive information on BCCI’s criminal activities. As investigations revealed, “the detail of information was exceptional.” During pivotal BCCI years, James Baker, after serving as President Reagan’s Chief of Staff, was Treasury Secretary from 1985 - ‘88. After Baker left the Treasury Department, he became Bush Sr.’s Secretary of State from 1989 - ‘92. At the Federal Reserve, Alan Greenspan, after serving as a director at the Council on Foreign Relations, became Fed Chairman in 1987 and served in that position throughout BCCI’s reign.
VII: Wall Street & US Banking Industry
BCCI penetrated deeply into Wall Street and the US banking industry. With the help of former Defense Secretary Clark Clifford, BCCI secretly owned Washington’s largest bank, First American, and Bank of America was a vital BCCI lifeline. As Beaty and Gwynne revealed:

“B.C.C.I. even accomplished a Stealth-like invasion of the U.S. banking industry by secretly buying First American Bankshares, a Washington-based holding company with offices stretching from Florida to New York….
Five of Bank of America’s senior officers were either on BCCI’s board of directors or helped to manage Abedi’s bank. For the next decade the two banks would move billions of dollars a week through each other’s international offices, and the Bank of America would be an invaluable, if hidden, ally, since it would continue to accept BCCI’s letter-of-credit business after virtually no other Western bank would touch it. Indeed, it could be argued that Bank of America became the single most important financial institution helping BCCI stay afloat.
In the United States alone, Bank of America transferred more than $1 billion a day for BCCI until the moment of BCCI’s global seizure in July 1991.
Thus Bank of America acted as a sort of global vacuum cleaner, sucking up many BCCI branch deposits and thereby providing the fuel Abedi needed to keep his Ponzi scheme alive.”

Stock Market Manipulation & Money Laundering
Long before the Commodities Futures Trading Commission (CFTC) was covering-up wide-scale manipulation of the stock market during this economic crisis, they were working overtime to conceal BCCI money laundering and market manipulation. As the 1992 US Senate Report stated:

“In the entire BCCI affair, perhaps no entity is more mysterious and yet more central to BCCI’s collapse and criminality than Capcom, a London and Chicago based commodities futures firm which operated between 1984 and 1988. Capcom is vital to understanding BCCI because BCCI’s top management and most important Saudi shareholders were involved with the firm. Moreover, Capcom moved huge amounts of money — billions of dollars — which passed through the future’s markets in a largely anonymous fashion.
Capcom was created by the former head of BCCI’s Treasury Department, Ziauddin Ali Akbar, who capitalized it with funds from BCCI and BCCI customers…. Additionally, the company employed many of the same practices as BCCI, especially the use of nominees and front companies to disguise ownership and the movement of money. Four Americans, Larry Romrell, Robert Magness, Kerry Fox and Robert Powell — none of whom had any experience or expertise in the commodities markets — played important and varied roles as frontmen….
The commodities markets in the U.K. and the U.S. are not restricted, regulated or supervised as stringently as the banking industry or the securities markets.
Moreover, the commodities markets can sustain almost limitless volume, a necessary prerequisite for crime on the scale of that contemplated by BCCI since fraudulent transactions may be hidden in a multitude of legitimate ones. In a letter to the directors, the Chairman of Capcom, Larry Romrell, reported 165 million in trading during the first four months of operation, and profits of 883,393. That trend continued until 1988 leading Akbar to boast to agent Mazur: ‘We have contracted 165,000 contracts totaling $53 billion with Drexel Burnham,’ and later, ‘we have done over $90 billion total in 1988.’
While the number of contracts and dollar volume seems unbelievable, a commodities company can artificially create massive volume by many small or no-risk trading methods. Indeed, the volume generated by Capcom helped it to generate respectability and acceptance with reputable banks and brokers. For example, listed under ‘Auditors and Advisers’ in Capcom’s 1987 Annual Report were the following major international banks: Manufacturers Hanover Trust Company, London, National Westminster Bank Plc, Manufacturers Hanover Trust Company, New York, Deutsche Westminster Bank, A.G., and National Westminster Bank, plc. Elsewhere, Capcom noted its ties to Dean Witter Reynolds, American Express Bank, Refco, Prudential Bache Trading Corp., and Sumitomo Trust and Banking, Ltd.”

Also, long before the modern techniques of market manipulation and money laundering, like high frequency trading, round trip trading and quote stuffing, BCCI mastered a technique called “mirror image trading.”
The Senate report continued:

“Capcom and Money Laundering
There is evidence that Capcom engaged in money laundering for a variety of clients both in the United States and in London. For example, some 50 transactions were identified in the Futures, Inc. accounts with insufficient or no supporting documentation regarding the source or disposition of funds. These transactions totaled more than $125,000,000.
In testimony to the Subcommittee, Customs agent Robert Mazur testified how Akbar used ‘mirror-image’ trading to launder huge sums of money. Mirror image trading involves buying contracts for one account while selling an equal number from another account. Since both accounts are controlled by the same individual any profit or loss is effectively netted. According to Mazur, Akbar explained that because these ‘mirror image’ transactions can be lost among many millions of dollars worth of legitimate transactions ‘it would take forever for anyone to ever find it.’
Using mirror-image trading, Akbar bilked the BCCI Treasury accounts and laundered money for one of Capcom’s most notorious clients, General Manuel Antonio Noriega. Although complex, the series of transactions involving Noriega, BCCI and Capcom provide an illustration of textbook money laundering….
Conclusion….
In terms of the broader lessons of Capcom, regulation of the futures markets need to be greatly strengthened. Even a cursory background check on Akbar would have revealed that he had managed the Treasury accounts at BCCI which lost $400 million in the futures markets in the early eighties. Moreover, regulators who appeared before the Subcommittee testified on the one hand that annual audits of Capcom US turned up nothing irregular, but that Capcom’s books and records were a mess. That such a contradiction was allowed to continue for four years indicates that the CFTC needs to critically review the effectiveness of the various exchange audits. Finally, money laundering should be made a crime under the Commodities Futures Trading Act.”

VIII: The Savings and Loan Scandal
The Savings and Loan scandal was a significant part of the BCCI Affair. Looking back through piles of documents and research I’ve gathered, it is stunning how similar that crisis was to our current crisis. Both operations were put into motion as a result of the deregulation of key sectors of the financial system; in both of these cases the real estate sector was a main component. This is a clear pattern in financial intelligence operations. The first essential mission is to create legislation that allows for the creation of dark spaces, or “dark pools,” within key areas of the financial system where intelligence operations can then be executed without oversight or accountability.
To show you how history repeated itself, here’s an excerpt from the 1993 book, “Banking Scandals: The S&Ls and BCCI,” edited by Robert Emmet Long:

“The Savings and Loan debacle – the greatest scandal in the history of American banking – first came to national attention in the mid-1980’s. At that point, the failure of the thrifts, as S&Ls are sometimes known, appeared to be a controllable and containable situation. Both government officials and representatives of the Savings and Loan industry gave assurances that the S&L industry was still sound, and both worked to head off a full-scale investigation.… The delay in confronting the situation cost taxpayers billions of dollars. The price tag for bailing out the failed banks steadily escalated, from estimates of $50 billion at first to $500 billion and then $750 billion or even a staggering $1 trillion.…
The Savings and Loan scandal was unparalleled in the extent of its chicanery and in its ultimate cost to taxpayers, who will be paying for it for decades to come… In a series of steps beginning in 1980, the S&Ls were deregulated at the same time that the Federal Savings and Loan Insurance protection for depositors rose from $40,000 to $100,000. The combination stimulated get-rich-quick investments of a highly speculative nature on the part of bankers, who looted the treasuries of the institutions they were entrusted to protect.”

It was also George Bush Sr. who, then as Vice President, oversaw the “task force on deregulation and bank supervision” that led directly to the S&L crisis. In fact, his son, Neil Bush became known as the “poster boy” of the S&L crisis. Neil was nicknamed “the Silverado Kid” after he cost US taxpayers $1.3 billion while running Silverado Banking, Savings & Loan. In 1989, after becoming president, George Bush Sr. promptly bailed out the S&L industry, costing taxpayers hundreds of billions of dollars.
Many of the failed S&L thrifts served as secret intelligence shell companies and were traced back to BCCI and the CIA. In a study entitled, “Organized Crime, The CIA and the Savings and Loan Scandal,” Criminal Justice Professor Gary W. Potter explains:

“It is not our intent to discuss the unethical and even illegal business practices of the failed savings and loans and their governmental collaborators. The outlandish salaries paid by S & L executives to themselves, the subsidies to the thrifts from Congress which rewarded incompetence and fraud, the land ‘flips’ which resulted in real estate being sold back and forth in an endless ‘kiting’ scheme, and the political manipulation designed to delay the scandal until after the 1988 presidential elections are all immensely interesting and important. But they are subjects for others’ inquiries. Our interest is in the savings and loans as living, breathing organisms that fused criminal corporations, organized crime, and the CIA into a single entity that served the interests of the political and economic elite in America. Let us begin by quickly summarizing the most blatant examples of collaboration between financial institutions, the mob, and the intelligence community….
First National Bank of Maryland…
Palmer National Bank…
Indian Springs Bank…
Vision Banc Savings…
Hill Financial Savings…
Sunshine State Bank…
All told at least twenty-two of the failed S & L’s can be tied to joint money laundering ventures by the CIA and organized crime figures. If the savings and loan scandals of the 1980s reveal anything, they demonstrate what has often been stated as a maxim in organized crime research: that corruption linking government, business, and syndicates is the reality of the day-to-day organization of crime. Investigations of organized crime in the United States, Europe, and Asia have all uncovered organized crime networks operating with virtual immunity from law enforcement and prosecution.”

For further details on BCCI and CIA connections to the S&L crisis, let’s return to “Banking Scandals: The S&Ls and BCCI:”

“The banking scandals involving S&Ls and the rogue Bank of Credit and Commerce International (BCCI) are linked through David Paul, former CEO of CenTrust Savings Bank, a Miami S&L that was seized in February 1990. Like S&L kingpin Charles Keating, Paul knew that he could ingratiate himself with politicians by helping them raise campaign money. Political intervention by the likes of Keating Five senators Alan Cranston of California and Donald Reigle of Michigan helped keep CenTrust open for two years after it otherwise would have been closed. CenTrust’s involvement with BCCI was even greater than its interaction with S&L scoundrels. By mid 1988, CenTrust owed its survival to BCCI and one of the bank’s alleged front men, Ghaith Pharaon, who helped win approval of a CenTrust bond issue that brought new capital into CenTrust and improved the condition of its books just in time for the thrift to pass a crucial examination by regulators….
Sunbelt Savings, Western Savings, and State Savings have all been named by the Houston Post as members of a daisy chain of failed thrifts with links to organized crime and even, perhaps, to the CIA. All three have collapsed, at a cost to taxpayers of over $3 billion.”

Once again, George Bush Sr.’s role in BCCI and the S&L crisis cannot be understated. To recap, over the course of BCCI’s entire reign, Bush Sr. led the CIA, then served as Vice President before becoming President. He had extraordinarily close relations with Saudi Arabia, the most oil-rich nation in the world. Kahlam Adham was a top BCCI executive and head of Saudi Arabian intelligence, he was known as “the godfather of Middle East Intelligence” and was the CIA’s main liaison to the region. BCCI’s Chief Operations Officer was Khalid bin Mahfouz, who also led Saudi Arabia’s largest national bank and was a major player in the oil industry. Mahfouz was known as “the most powerful banker in the Middle East.” As already mentioned, Saudi Arabian intelligence was mixed in tightly with Wall Street banking interests in BCCI’s Capcom money laundering operations in the futures market. George Bush Sr. also did everything within his power to conceal these operations, as investigative reporter Chris Floyd wrote:

“When a few prosecutors finally began targeting BCCI’s operations in the late Eighties, President George Herbert Walker Bush boldly moved in with a federal probe directed by Justice Department investigator Robert Mueller. The U.S. Senate later found that the probe had been unaccountably ‘botched’–witnesses went missing, CIA records got ‘lost,’… Lower-ranking prosecutors told of heavy pressure from on high to ‘lay off.’ Most of the big BCCI players went unpunished or, like [Khalib bin] Mahfouz, got off with wrist-slap fines and sanctions. Mueller, of course, wound up as head of the FBI, appointed to the post in July 2001–by George W. Bush.”

Robert Mueller, who has been running the FBI since September 4, 2001, under Bush Jr. and now Obama, was Bush Sr.’s go-to guy at the Justice Department in covering up BCCI and S&L operations. Back in 1992, Beaty and Gwynne reported the following in Time magazine:

“In the U.S. investigators now say openly that the Justice Department has not only reined in its own probe of the bank but is also part of a concerted campaign to derail any full investigation. Says Robert Morgenthau, the Manhattan district attorney, who first launched his investigations into B.C.C.I. two years ago: ‘We have had no cooperation from the Justice Department since we first asked for records in March 1990. In fact they are impeding our investigation, and Justice Department representatives are asking witnesses not to cooperate with us.’”

In summation, George Bush Sr., Henry Kissinger, James Baker, Robert Mueller, Robert Gates and Alan Greenspan were all heavily involved in BCCI activities. Former President Bill Clinton even played a crucial role in continuing the cover-up by killing follow-up investigations upon taking office. More stunning than the BCCI operations and the cover-up, was that even after the BCCI Affair was finally exposed, all of these major players were not held accountable. The fact that people like this not only got to walk away, but remained in top positions of power for years after the scandal was exposed, with Robert Gates now serving as the Secretary of Defense and Robert Muller still serving as the head of the FBI, tells you all you need to know about the rule of law in the United States.
When you look back at the S&L crisis and understand how that scandal worked, you can clearly see how that operation served as a forerunner to, and evolved into, our current economic crisis. Of course this time it would happen under the presidency of George Bush Jr., and the cover-up would be maintained by a different Democratic President, Barack Obama.
IX: The Lessons of BCCI
While investigating BCCI operations, I began to clearly understand for the first time how the Global Banking Intelligence Complex runs both political parties in the United States. After years of researching and investigating BCCI, I’ve come to understand how power really operates, who the real power players are and how the mainstream media, which is tightly controlled by these forces, keeps the American public in the dark and marginalized by never reporting on the roots of power. The harsh truth is that American democracy and the rule of law are an illusion.
Above all, the BCCI scandal taught me two major lessons. First, when there is blatant criminal activity that goes unpunished, global banking intelligence interests are behind it. Second, you always have to follow the money. At the heart of power is the money supply, the ability to create, issue and manipulate global currencies. This is what the most powerful have always known. As the old House of Rothschild maxim goes, “Let us control the money of a nation, and we care not who makes its laws.”
When you peel back all the layers, the ultimate power in this world lies within the Global Banking Intelligence Complex, or the “money powers” as our Founding Fathers and early presidents called them. If you research our forefathers, you will see that they understood this point very well. The main theme throughout American history has always been the war between democracy and the concentration of power within the banks.
This may seem obvious to some, but this very obvious point has been omitted from mainstream media and public consciousness within the United States. This very viewpoint has been completely removed from the debate surrounding our current economic crisis and the failed financial reform process. And when it comes to the funding of perpetual wars, the banking interests behind the scenes are never even mentioned.
So this long winding road has led me right into the heart of our current crisis. It has been from this viewpoint that I have closely watched this crisis unfold. I’ve been following all these power players for years now and it’s given me an insider’s view and front row seat into our current political environment. Watching old BCCI players and their protégés continue to maintain positions as top US government officials over the years reveals a very different reality when you consider significant issues like 9/11; the Af-Pak and Iraq wars; the private military complex; the Israeli-Palestinian conflict; Pakistani, Iranian and North Korean nuclear weapons programs; global weapons sales; mainstream media propaganda campaigns; campaign finance laws; lobbying efforts; electronic voting machines; the current economic crisis, along with the bailout and stock market manipulation.
When I think about the “War on Terror” and the modern global banking system, the BCCI Affair is child’s play in comparison. The Global Banking Intelligence Complex is on steroids and stronger than ever, with power and wealth concentrated in unprecedented fashion.
Now that we have a fundamental understanding of how financial intelligence operations worked throughout the 1980s and early ’90s, now that we’ve scratched just below the surface, I will now expose operations throughout the late ’90s and past decade.

[Magda Hassan]

Editor’s Note: This report is an excerpt from David DeGraw’s new book, “The Road Through 2012: Revolution or World War III.” It is a continuation from the previous section, “Inside the Global Banking Intelligence Complex, BCCI Operations.” This is the fourth installment to a new series. To be notified via email of new postings from this series, subscribe here.

The Covert Origins of the Af-Pak War -
The Road to World War III I: The CIA, BCCI & The Origins of Al Qaeda
II: “The Strategy of the Silk Route” & 9/11
III: The Road to World War III
IV: War Racket: The Global Banking Intelligence Complex Business Plan

I: The CIA, BCCI & The Origins of Al Qaeda
Now that we have an understanding of how the Global Banking Intelligence Complex ran operations through BCCI, let’s look at how some of BCCI’s key players kept operating after the bank was finally shut down. As discussed in the last chapter, during the 1980s and early ’90s, the CIA worked in partnership with BCCI in what was, at the time, the agency’s largest covert operation ever, pumping an estimated $10 billion into funding the Afghan Mujahideen. Through this operation, Osama bin Laden’s al Qaeda network was formed. Bin Laden had accounts in BCCI and ran CIA/BCCI-funded camps.
In “Modern Jihad:Tracing the Dollars Behind the Terror Networks,” investigative reporter Loretta Napoleoni described the origins of the al Qaeda network:

“[During the Afghan-Soviet war,] potential Arab warriors traveled to Pakistan where they resided in guesthouses. These hostels did not keep any records and not a single organization listed the names of the fighters, where they had gone to fight and if they had been injured or killed. The lack of vital information caused distress among relatives. At that time bin Laden was in charge of several guesthouses and was embarrassed by the hundreds of calls requesting information. Hence, he decided to keep track of whoever stayed at the hostels and that record came to be known as the Record of al-Qaeda. This is how al-Qaeda, which means the base or the scroll, was born.”

Throughout this time period, bin Laden’s mentor was a man named Gulbuddin Hekmatyar. In “Afghanistan 1979-1992: America’s Jihad,” William Blum reported some background information on Hekmatyar:

“His followers first gained attention by throwing acid in the faces of women who refused to wear the veil. CIA and State Department officials I have spoken with call him ’scary,’ ‘vicious,’ ‘a fascist,’… ‘definite dictatorship material’…. His name was Gulbuddin Hekmatyar. He was the head of the Islamic Party and he hated the United States almost as much as he hated the Russians. His followers screamed ‘Death to America’ along with ‘Death to the Soviet Union’… some of them had kidnapped the American ambassador in the capital city of Kabul, leading to his death in the rescue attempt… these same people shot down civilian airliners and planted bombs at the airport… anti-American mobs had burned and ransacked the US embassy in Islamabad and American cultural centers in two other Pakistani cities… their brother Islamic fundamentalists in next-door Iran seized the US Embassy in Teheran… and held 55 Americans hostage for over a year.”

Supporting acknowledged terrorists and enemies presented the US government with a huge public relations problem. So the White House and CIA went to work on the propaganda front. The United Sates Information Agency (USIA) launched the “Afghan Media Project.” The project was run by Joachim Maitre, a man who also worked with Oliver North to make TV ads attacking government officials who were against giving aid to the Contras during the BCCI-financed Iran-Contra Affair.
Reporting in “Covert Action: The Afghan Pipeline,” Steve Galster revealed the hypocrisy of the US propaganda campaign:

“Widespread corruption also exists among the [Afghan] rebel leaders but has gone practically unnoticed in the United States thanks to CIA propaganda. The same kinds of things that tarnished the Contras’ image, such as killing civilians, drug smuggling and embezzlement are practiced by many Afghan rebels. Taking no prisoners, assassinating suspected government collaborators, destroying government-built schools and hospitals, killing ‘unpious’ civilians are just a few of the inhumane acts they have carried out. But the picture we receive of the rebels in the United States is of an uncorrupt, popular group of freedom-loving people who aspire toward a democratic society.”

In “Jihad International Inc.,” Eqbal Ahmad further exposed the propaganda effort:

“They also invested in this Jihad the legitimacy of their enormous power, and the luster of their media-made glory. On one especially memorable occasion when Afghanistan’s hard-line Islamists visited the White House, President Ronald Reagan described them as the Muslim world’s ‘moral equivalent of our founding fathers.’ Similarly, the American and European media played up the war in Afghanistan as the greatest story of the eighties. Foreign correspondents combed the Hindu Kush for stories of ‘Mooj’ heroism. Competition for Jihad narrative was so great that in one instance a major network, CBS, paid handsomely to film a staged battle between Islam and Communism. As the western media carries great importance and authority in the third world, its Afghanistan war coverage made an enormous impact, especially on Muslim youth.”

As bin Laden himself would later say in his 1997 interview with CNN, “I have benefited so greatly from the Jihad in Afghanistan that it would have been impossible for me to gain such benefit from any other chance…”
Thanks to CIA funding and weapons, delivered through BCCI’s “black network” with the help of Pakistan’s intelligence service the ISI, bin Laden and al Qaeda were off and running. In 1992, just after BCCI had been shut down in a global sweep, the Afghan-Soviet war finally came to an end. The war resulted in the death of 1.3 million Afghans, three million were disabled, and 5.5 million became refugees - in total, about half the population.
When BCCI was shut down, most of its major players were allowed to walk away without being held accountable, due to the fact that BCCI was deeply entwined within the upper echelons of US intelligence. Elements of BCCI would then evolve into al Qaeda, as the Washington Post revealed in 2002:

“William F. Wechsler, who monitored bin Laden’s finances at the National Security Council during the last two years of the Clinton administration, told Congress in September that bin Laden initially rose to prominence for building ‘a financial architecture that supported the Mujaheddin in Afghanistan against the Russians.’
‘It’s this financial architecture that continued with him when he turned to terrorism, and it’s this financial architecture that is at the heart of how al Qaeda today gets its finances,’ he said.
Much of that architecture, according to French, Pakistani and American investigators, is modeled on the Bank of Credit and Commerce International (BCCI)…. In the 1980s it was used to launder drug money, harbor terrorist funds and buy illegal weapons. Its collapse in 1991 was a major global financial scandal.
The CIA used BCCI to funnel millions of dollars to the fighters battling the Soviet occupation of Afghanistan. Bin Laden had accounts in the bank, U.S. officials said….
The BCCI Model
A 70-page French intelligence report, prepared for Parliament in October and obtained by The Washington Post, outlined some details of this network. ‘The financial network of bin Laden, as well as his network of investments, is similar to the network put in place in the 1980s by BCCI for its fraudulent operations, often with the same people (former directors and cadres of the bank and its affiliates, arms merchants oil merchants, Saudi investors),’ the report said. ‘The dominant trait of bin Laden’s operations is that of a terrorist network backed up by a vast financial structure.’
A senior U.S. investigator said U.S. agencies were looking into these ties because ‘they just make so much sense, and so few people from BCCI ever went to jail. BCCI was the mother and father of terrorist financing operations.’
The report identifies dozens of companies and individuals who were involved with BCCI and were found to be dealing with bin Laden after the bank collapsed. Many went on to work in banks and charities identified by the United States and others as supporting al Qaeda.”

BCCI’s Chief Operations Officer and the man the US Senate Intelligence Committee considered to be “the most powerful banker in the Middle East,” Khalid bin Mahfouz, was let off with a fine and would become a major al Qaeda funder.
As the Washington Post report continued:

“The French report highlighted the role of Saudi banker Khalid bin Mahfouz, a former director of BCCI, whose sister is married to bin Laden. In 1995 bin Mahfouz paid a $225 million fine in a settlement with U.S. prosecutors for his role in the BCCI scandal and went on to serve as director of the National Commercial Bank, one of Saudi Arabia’s largest….
Saudi officials, at the urging of the United States, audited his bank and found that millions of dollars were being funneled through the bank to charities controlled by bin Laden, U.S. officials and the French document said…. U.S. intelligence officials said Washington pushed for the audit of bin Mahfouz’s bank but was never allowed to question him.
Saudi officials ‘weren’t willing to let us talk to him,’ said one U.S. source with direct knowledge of events, ‘and we asked at a very senior level.’”

One vital point that most of the US mainstream media obscured when revealing bin Mahfouz as a key al Qaeda funder was his heavy ongoing involvement with top US officials and oil companies throughout BCCI’s reign and after the bank’s collapse. One of the few outlets to pick up on this was the Boston Herald, who reported in December, 2001:

“Two billionaire Saudi families scrutinized by authorities for possible financial ties to Osama bin Laden’s terrorist network continue to engage in major oil deals with leading U.S. corporations.
The bin Mahfouz and Al-Amoudi clans, who control three private Saudi Arabian oil companies, are partners with U. S. firms in a series of ambitious oil development and pipeline projects in central and south Asia, records show.
Working through their companies - Delta Oil, Nimir Petroleum and Corral Petroleum - the Saudi families have formed international consortiums with U. S. oil giants Texaco, Unocal, Amerada Hess and Frontera Resources.
These business relationships persist despite evidence that members of the two Saudi families - headed by patriarchs Khalid bin Mahfouz and Mohammed Hussein Al-Amoudi - have had ties to Islamic charities and companies linked financially to bin Laden’s al-Qaeda organization. So far, bin Mahfouz and Al-Amoudi… have been left untouched by the U. S. Treasury Department, which has frozen the assets of 150 individuals, companies and charities suspected of financing terrorism….”

II: “The Strategy of the Silk Route” & 9/11
One of the world’s richest oil fields is on the eastern shore of the Caspian sea, just northeast of Afghanistan. The Caspian oil reserves are of top strategic importance in the quest to control the earth’s remaining oil supply. The U.S. government developed a policy called “The Strategy of the Silk Route.” The strategy was designed to lock out Russia, China, and Iran from the oil in this region. This called for U.S. corporations to construct an oil pipeline running through Afghanistan. Since the mid 1990s, a consortium of US oil companies led by Unocal, which was later bought by Chevron, have been pursuing this goal. The plan was to build a Trans-Afghanistan Pipeline from Turkmenistan’s natural gas fields to Pakistan. Unocal partnered with Saudi Delta Oil, which was owned by al Qeada funders Khalid bin Mahfouz and Mohammed Hussein al-Amoudi, and they formed Central Asia Gas Pipeline, Ltd. (CentGas).
A feasibility study for the Central Asian pipeline project was performed by Enron. This study concluded that as long as the country was split among fighting warlords the pipeline could not be built. Stability was necessary for the $4.5 billion project and the US believed that the Taliban would impose the necessary order. U.S. intelligence and Pakistan’s ISI then continued the close relationship that they established through BCCI and agreed to funnel arms and funding to the Taliban in their war for control of Afghanistan. Until 1999, US taxpayers paid the entire annual salary of every single Taliban government official. The U.S., Saudi and Pakistani alliance established within BCCI reunited to facilitate the rise of the Taliban.
The American oil interests at the heart of this pipeline deal took control of the White House on January 20, 2001, when George Bush Jr. became president. As previously mentioned, Enron was heavily involved in this oil deal. Enron CEO Ken Lay was an old Bush family friend and was Bush Jr.’s biggest campaign contributor. Donald Rumsfeld, who became the Secretary of Defense, was a large stockholder in Enron. Thomas White, former vice-chairman of Enron, became the Secretary of the Army. Condoleezza Rice, a former Chevron board member, became National Security Advisor and then Secretary of State. A major benefactor of the CentGas deal was going to be Halliburton. Dick Cheney, who became Vice President, was Halliburton’s CEO. Richard Armitage, who worked as a key lobbyist for Unocal, became Under Secretary of State. Hamid Karzai, who would later become Afghanistan’s Prime Minister, was a top Unocal adviser.
Shortly after taking office, the Bush Administration was quickly losing faith in the Taliban’s ability to control Afghanistan and be a reliable partner in the pipeline deal. James Baker, who was also a key BCCI player, having served as Treasury Secretary, Bush Sr.’s Secretary of State and Chief of Staff during BCCI’s reign, was a leading player in developing the “Strategy of the Silk Route.” In April 2001, Baker and the Council on Foreign Relations demanded immediate action and publicly released a Task Force Report entitled, “Strategic Energy Policy Challenges For The 21st Century,” by the James A. Baker III Institute. They stressed the urgency of the pipeline project and openly called for the Bush Administration to “quickly facilitate higher exports of oil from the Caspian Basin region…” and they reiterated the basic premise of the “Strategy of the Silk Route,” stating, “the exports from oil discoveries in the Caspian Basin could be hastened if a secure, economical export route could be identified swiftly.” That “export route,” as previously planned, would need to run through Afghanistan and into Pakistan.
The tangled web of conflicts of interests within the Bush Administration, oil industry, Taliban and al Qaeda were concisely summed up by investigative reporter Loretta Napoleoni:

“The CentGas deal never came to fruition. The Taliban’s inability to commit to any agreement, coupled with public recognition of the exploitive nature of their regime, contributed to its failure. For years, the Taliban skilfully conducted simultaneous negotiations with two potential oil companies: Argentinean Bridas [later bought by BP] and Unocal/CentGas. Both companies showered the Taliban with gifts and money, flying their delegations to the US to win them over. On one occasion, a group of Taliban met high-ranking executives of Unocal in Texas. Parties, dinners and trips to the local shopping malls were organized. At the same time, Zalmay Khalizad, who was working for Unocal, lobbied the Clinton administration to ‘engage’ with the Taliban. The press reported some of these ‘informal’ meetings between US officials and rulers of Afghanistan: ‘Senior Taliban leaders attended a conference in Washington in mid-1996 and US diplomats regularly traveled to Taliban headquarters,’ wrote the Guardian….
‘The United States wants good ties [with the Taliban] but can’t openly seek them while women are oppressed,’ reported CNN. None the less, negotiations carried on more or less openly until 1998, when bin Laden’s associates bombed US embassies in Africa. Clinton launched cruise missiles at bin Laden’s supposed whereabouts in Afghanistan, an act that convinced the oil lobby that, for the moment, the pipeline deal could not go ahead….
Corporate America continued to do business with people who supported Islamist insurgency. The oil industry, in particular, continues to be run by a very small group of American and Saudi families with close financial relations. Among them were the Bush family, the bin Laden family and Osama bin Laden’s Saudi sponsors. The ties among these people go back a long way….
Naturally, as soon as George W. Bush was elected president, Unocal and BP-Amoco, which had in the meantime bought Bridas, the Argentinean rival, started once again to lobby the administration, among whom were several of their former employees. Unocal knew that Bush was ready to back them and resumed the consortium negotiations. In January 2001, it began discussions with the Taliban, backed by members of the Bush administration among whom was Under Secretary of State Richard Armitage, who had previously worked as a lobbyist for Unocal. The Taliban, for their part, employed as their PR officer in the US Laila Helms, niece of Richard Helms, [BCCI player] former director of the CIA and former US ambassador to Iran. In March 2001, Helms succeeded in bringing Rahmatullah Hashami, Mullah Omar’s adviser, to Washington…. As late as August 2001, meetings were held in Pakistan to discuss the pipeline business….
While negotiations were underway, the US was secretly making plans to invade Afghanistan. The Bush Administration and its oil sponsors were losing patience with the Taliban; they wanted to get the Central Asian gas pipeline going as soon as possible. The ‘Strategy of the Silk Route’ had been resumed….
Paradoxically, 11 September provided the Washington with a casus belli to invade Afghanistan and establish a pro American government in the country. When, a few weeks after the attack, the leaders of the two Pakistani Islamist parties negotiated with Mullah Omar and bin Laden for the latter’s extradition to Pakistan to stand trial for the 11 September attacks, the US refused the offer. Back in 1996, the Sudanese Minister of Defence, Major General Elfaith Erwa, had also offered to extradite Osama bin Laden, then resident in Sudan, to the US. American officials declined the offer at that time as well. ‘Just don’t let him go to Somalia,’ they added…. When Erwa disclosed that he was going to Afghanistan, the American answer was ‘let him go’….
In November 2001… Hamid Karzai was elected [Afghanistan’s] prime minister…. Yet very few people remember that during the 1990’s Karzai was involved in negotiations with the Taliban regime for the construction of a Central Asian gas pipeline from Turkmenistan through western Afghanistan to Pakistan. At that time he was a top adviser and lobbyist for Unocal… In the early 1990’s, thanks to his [Karzai's] excellent contacts with the ISI, he moved to the US where he cooperated with the CIA and the ISI in supporting the Taliban’s political adventure.
President Bush’s special envoy to the newly formed Afghanistan state is a man named Zalmay Khalilzad, another former employee of Unocal. In 1997, he produced a detailed analysis of the risks involved in the construction of the Central Asian gas pipeline. Khalilzad also worked as a lobbyist for Unocal and therefore knows Karzai very well. In the 1980s… President Reagan named Khalilzad special adviser to the State Department; it was thanks to his influence that the US accelerated the shipment of military aid to the Mujahedin.”

Yet another interesting conflict of interest: the Chairman of the 9/11 Commission investigation was Thomas Kean. Kean was also a key player in this pipeline deal as a director of Hess Corp., which was in a joint venture called Delta Oil, with Khalid Bin Mahfouz and Mohammed Hussein al Amoudi. It is also important to mention that James Baker, who had a lead role in developing the “Strategy of the Silk Route” and BCCI operations, was hired by these same BCCI/Saudi/al Qaeda oil interests to defend them against lawsuits brought by families of 9/11 victims.
As mentioned in the last chapter, George Bush Sr.’s role in the BCCI Affair cannot be overstated. Even George Bush Jr. had oil companies that were funded by these same BCCI/Saudi/al Qaeda interests. To make matters even worse, the same person who played a pivotal role in covering-up and derailing investigations into BCCI at the Justice Department, was the person who was put in charge of the FBI on September 4, 2001, Robert Mueller - and he is still running the FBI under Obama.
In summation, the CentGas oil consortium that connected all of these interests with Bush Jr.’s administration are undeniably suspect, at best. All of these players and interests are so incestuous that the heated debate over whether or not 9/11 was an inside job is almost irrelevant when you understand the history behind it. Whether it was an attack by al Qaeda or a false flag covert intelligence operation to win public support and trillions of taxpayer dollars for the never-ending “War on Terror” and control of Central Asian oil is essentially a non-issue. The main point, which cannot be legitimately argued, is that 9/11 would never have happened if it wasn’t for an out-of-control intelligence apparatus, and we now know the people who were operating that intelligence apparatus. All of the players involved were part of the same banking intelligence network known as BCCI. Al Qaeda and 9/11 were a direct outgrowth and evolution of BCCI intelligence operations. It was the same people, continuing to do what they had been doing all along, except this time their target was on US soil.
And this same out-of-control intelligence apparatus was the biggest beneficiary of 9/11, having had their funding budgets more than doubled since the attack. Knowing how uncontrollable the intelligence world was leading up to 9/11, let’s look again at this report from the Washington Post:

“The top-secret world the government created in response to the terrorist attacks of Sept. 11, 2001, has become so large, so unwieldy and so secretive that no one knows how much money it costs, how many people it employs, how many programs exist within it or exactly how many agencies do the same work…. After nine years of unprecedented spending and growth, the result is that the system put in place to keep the United States safe is so massive that its effectiveness is impossible to determine…. The U.S. intelligence budget is vast, publicly announced last year as $75 billion, 2 1/2 times the size it was on Sept. 10, 2001. But the figure doesn’t include many military activities or domestic counterterrorism programs.”

III: The Road to World War III
The war for a pipeline to extract oil from the Caspian Sea is far from over. China, a country US oil interests were determined to block out of the region, has been making moves to take control and has clearly established the upper hand. In a TomDispatch report entitled, “Pipelineistan’s New Silk Road,” Asia Times correspondent Pepe Escobar reports:

“Future historians may well agree that the twenty-first century Silk Road first opened for business on December 14, 2009. That was the day a crucial stretch of pipeline officially went into operation linking the fabulously energy-rich state of Turkmenistan (via Kazakhstan and Uzbekistan) to Xinjiang Province in China’s far west….
The bottom line is that, by 2013, Shanghai, Guangzhou, and Hong Kong will be cruising to ever more dizzying economic heights courtesy of natural gas supplied by the 1,833-kilometer-long Central Asia Pipeline, then projected to be operating at full capacity…. When the Bush administration’s armchair generals launched their Global War on Terror, this was not exactly what they had in mind.
Meanwhile, in the New Great Game in Eurasia, China had the good sense not to… get bogged down in an infinite quagmire in Afghanistan. Instead, the Chinese simply made a direct commercial deal with Turkmenistan and, profiting from that country’s disagreements with Moscow, built itself a pipeline which will provide much of the natural gas it needs.
No wonder the Obama administration’s Eurasian energy czar Richard Morningstar was forced to admit at a congressional hearing that the U.S. simply cannot compete with China when it comes to Central Asia’s energy wealth. If only he had delivered the same message to the Pentagon….
If China has so far proven masterly in the way it has played its cards in its Pipelineistan ‘war’, the U.S. hand — bypass Russia, elbow out China, isolate Iran — may soon be called for what it is: a bluff.”

If you have wondered why so many US/NATO/private military troops have been deployed to the Af-Pak region, just consider that China, which shares a border with Pakistan and Afghanistan, has also begun moving troops into the region (it is also important to note that Iran is surrounded by Afghanistan and Iraq). As a New York Times report stated:

“[Pakistan] is handing over de facto control of the strategic Gilgit-Baltistan region in the northwest corner of disputed Kashmir to China.
The entire Pakistan-occupied western portion of Kashmir stretching from Gilgit in the north to Azad (Free) Kashmir in the south is closed to the world, in contrast to the media access that India permits in the eastern part, where it is combating a Pakistan-backed insurgency. But reports from a variety of foreign intelligence sources… reveal two important new developments in Gilgit-Baltistan: a simmering rebellion against Pakistani rule and the influx of an estimated 7,000 to 11,000 soldiers of the [Chinese] People’s Liberation Army.
China wants a grip on the region to assure unfettered road and rail access to the Gulf through Pakistan. It takes 16 to 25 days for Chinese oil tankers to reach the Gulf. When high-speed rail and road links through Gilgit and Baltistan are completed, China will be able to transport cargo from Eastern China to the new Chinese-built Pakistani naval bases at Gwadar, Pasni and Ormara, just east of the Gulf, within 48 hours.”

As the war in Afghanistan continues to escalate over the border into Pakistan, you can be assured that China, Russia and Iran will become more militarily involved in defense of their region’s resources. Pakistan is already becoming increasingly hostile to an escalation of US drone and NATO strikes within its borders, and have even begun to openly aid the Taliban by cutting off key NATO supply lines. Pakistan has also recently deployed anti-aircraft missiles on its border with Afghanistan. Current intelligence leads one to conclude that the war will continue to expand further into Pakistan, which will lead to China and Iran becoming more involved in what is essentially a proxy war against US/NATO/private military forces.
The bottom line, and one of the main themes of this book, is that we have entered a period of major wars over declining resources. The Af-Pak operations are only initial moves in an attempt to control the earth’s remaining oil supply.
Any talks of troop withdrawals from the Af-Pak region and Iraq are psychological operations. US/NATO/private military contractors are still in the process of building the world’s largest military bases in this region, they are not going to abandon these newly constructed mega-bases. These bases are designed to be operational and, as oil continues to become more scarce, they will be used to militarily control the remaining supply throughout this region.
Chris Martenson, a former Vice President at intelligence company SAIC, recently wrote the following in an analysis entitled, “Future Chaos: There Is No ‘Plan B’:”

“The future is likely to be more chaotic than you probably think. This was the primary conclusion that I came to after attending the most recent Association for the Study of Peak Oil & Gas (ASPO) in Washington, DC in October, 2010…. The impact of Peak Oil on markets, lifestyles, and even national solvency deserves our very highest attention…. Rear Admiral Lawrence Rice… presented the findings of the 2010 Joint Operating Environment (a forward-looking document examining the trends, contexts, and implications for future joint force commanders in the US military), which spends 76 pages summarizing the key trends and threats of the world…. Peak Oil dominates the discussion. Among the conclusions (on page 29), we find this:
‘By 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 MBD.’”

The Joint Operating Environment report goes on to reveal:

“To meet climbing global requirements, OPEC will have to increase its output from 30 MBD to at least 50 MBD. Significantly, no OPEC nation, except perhaps Saudi Arabia, is investing sufficient sums in new technologies and recovery methods to achieve such growth. Some, like Venezuela and Russia, are actually exhausting their fields to cash in on the bonanza created by rapidly rising oil prices….
A severe energy crunch is inevitable without a massive expansion of production and refining capacity. While it is difficult to predict precisely what economic, political, and strategic effects such a shortfall might produce, it surely would reduce the prospects for growth in both the developing and developed worlds….”

Increasing OPEC output up to 50 MBD from the current level of 30 MBD is simply not possible, in fact it’s absurd to even consider that as a possibility. Once you disregard that, as the report states, “A severe energy crunch is inevitable.” To make matters even worse, we are much more likely to see a steady decline in output. So war with Pakistan, China, Russia and Iran, along with continued military operations in Afghanistan and Iraq, is increasingly probable, and their planned strategy.
Their strategy becomes all the more apparent when you consider the ramp up in military exercises and drills around China, which has included a series of massive 86,000-troop war games throughout the Korean Peninsula. Add in the recent record-setting $123 Billion in weapons sales to Gulf nations, with Saudi Arabia getting $67.8 Billion in weapons, which was the largest US arms deal ever. Israel also recently purchased 20 F-35 fighter jets for $2.5 billion, and has recently conducted their largest ever joint military exercises with the US. [See Moves Upon the Grand Chessboard for more information. In the next part of this series, we will take a close look at how Iraq fits into this picture.]
Now that we have a basic understanding of how much effort has gone into controlling Middle East and Caspian oil, and as demand for oil increases as production decreases, we can easily see how this is going to become an increasingly dangerous and hostile situation. If we stay on this present course, the “Strategy of the Silk Route” leads us straight down the road to World War III.
IV: War Racket: The Global Banking Intelligence Complex Business Plan
One of the reactions a person may have after learning this information, is to believe that perhaps these wars to control the earth’s remaining oil supply are beneficial to the US population. It may even eventually be a clever propaganda strategy to paint these wars as preserving the American way of life and our standard of living by obtaining these vital resources. Coming to this belief would be tremendously naïve.
As recent history has proved, US oil interests and the bankers behind them are global in nature and they don’t have any loyalty to the American people. As their actions have clearly demonstrated, they use the oil, and the obscene profits obtained from it, for their own short-sighted personal gain, at the brutal expense of the overwhelming majority of humanity and at the extraordinary expense of the earth’s ecosystem. Americans are shielded from the enormous inhumanity of millions of maimed and dead bodies as a result of their addiction to power. If these wars continue to escalate, they will inevitably lead to more attacks on American soil.
The profits from these wars are also a primary driving factor in having them in the first place, and is a major incentive to keep them going. Billions of taxpayer dollars are thrown around in the “fog of war,” in what is called a “free-fraud zone.” The military companies and the bankers behind them reap huge profits in the process. So fighting these highly profitable wars, for highly profitable resources, is the ultimate win-win situation, and the deliberately chosen business model for the Global Banking Intelligence Complex.
A point that clearly demonstrates the parasitic nature and pure insanity of this: the world’s #1 polluter and consumer of oil is the US/NATO/private military machine. So while they so desperately fight for oil, they are burning up significant amounts of it in the process.
The fact that the average American never gets the information presented in this report via mainstream media proves how tightly controlled the corporate media is. It also clearly demonstrates the blatant fact that the Global Banking Cartel doesn’t want American citizens to have even a basic understanding of geo-strategic interests and how power really functions. Above all, the American public must be kept in its place, as the cartel emphatically believes that they are the kings and we are the serfs, and it is none of our business how they conduct themselves. If you are not already a multi-millionaire or billionaire, you have now been marked for either servitude or slow death. That is a very harsh truth, but in the new world of declining resources, looted economies and environmental upheaval, this is the unfortunate reality of the situation. Until the American public can wake up to this new reality, turn off the television and fight back, our living standards will continue to decline at an increasing rate.
~~ The next part of this series will be posted in a few days. Stay tuned for “The Covert Origins of the Iraq War: BCCI, Kissinger Associates, SAIC, & Robert Gates.” To be notified via email of new postings from this series, subscribe here.

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[David Guyatt]

Nothing is ever new. Albeit after a short lapse of 80 odd years.

For background on the "International Banking Cartel" referenced in the foregoing, I invite you to read Carroll Quigley's Tragedy & Hope, especially the small section on the Bank for International Settlements and how this private body was to be used by Central Bankers to bring in to being the long-term plans of the aforesaid cartel.