Breaking news - Analysis - Correction
Bin Laden Fading as
Reuters, CNN Predict
Central Banks Dump Massive
Amounts of Cash to Stave Off Oil, Gold Speculation - May
Asian Markets Tank
Michael C. Ruppert
[© Copyright 2001. All Rights
reserved. FTW Publications, www.copvcia.com.
May Be Reprinted for Non-Profit Purposes only.]
Full reporting and Analysis
will be published in the next issue of From The Wilderness.
Expected mailing date Sept. 18, 2001. Additional reports
for paid subscribers only will be available in a secure
area of the web site beginning on approximately 9-13-01.
- On Sept. 11, 2001 the two most visible symbols of American
economic and military power were simultaneously attacked
in a well-planned and well financed attack that will have
enormous and permanent impact on the world economy and American
culture. Just a day after the attacks, which brought the
planet to a halt, both CNN and Reuters - after interviewing
many financial experts - are reporting the likelihood of
a worldwide recession. As major central banks have acted
swiftly, with as much as $70 billion in instant cash infusions
to stem immediate spikes in oil and gold prices, the likelihood
that perennial bogeyman Osama Bin Laden was the prime of
origin of the attacks diminishes. In a number of media appearances
beginning on the evening of September 11, former CIA Director
James Woolsey has now begun pointing the finger at "state
sponsorship," - the prime suspect being Iraq.
as to the complexity of the attacks continues to suggest
logistical, intelligence and financial resources beyond
Bin Laden's known abilities. In addition, Bin Laden's lineage,
as a protégé of the CIA from the Afghan conflict
of the 1980s, threatens to raise serious questions which
the American government might not want answered. [See other
FTW stories at www.copvcia.com]
A stunning report from
the respected military and intelligence report Stratfor
has officially raised the question that many who watched
the Trade Center towers collapse vertically, have been asking
about secondary explosions and the likelihood that charges
had been physically placed within the buildings before the
attacks. In a bulletin yesterday Stratfor wrote:
"Mounting an attack of
this sort is not simple. In the case of the World Trade
Center, the collapse of the towers indicates massive delayed
explosions. This means either the planes were loaded with
explosives or that massive explosive charges were planted
in the buildings to go off later. This is supposition, but
a secondary explosion is a necessary factor for explaining
As reported last week in
bulletins for our paid subscribers, the attacks came at
a moment when US and world markets were in dire straits
and as two hidden factors threatened to disclose even greater
weaknesses in the US economy. The first of these factors
is a monstrous derivatives investment bubble -- orchestrated
by JPMorganChase -- estimated to be near $30 trillion (US),
on the verge of implosion and a gold price artificially
suppressed by the US Treasury and Goldman Sachs that was
scheduled to be publicly aired in a lawsuit by the Gold
Anti-Trust Action Committee (GATA) in US District Court,
Boston on October 9th.
These revelations, on the
heels of a near 900 point drop in the Dow Jones Industrial
Average in the preceding three weeks, could have tipped
the US economy even without yesterday's attacks.
As reported around the
world, especially in London, gold and oil prices spiked
in the first two hours after the attacks before the European
markets closed. The price of London gold rose by 6% in less
than two hours. Yesterday FTW reported that
the Comex precious metals exchange had been destroyed in
the attack. That is now uncertain. Three years ago the Comex
moved out of the World Trade Center to a nearby building
which has been reported to be heavily damaged. However,
the Commodity Futures Trading Commission, which polices
precious metals trading, had its offices in WTC Tower 1
and was totally destroyed.
World confidence in the
security of US markets and the economy has been shattered.
FTW correspondents in Moscow report a divergence
between public and official government reaction. Three people
reported from Moscow yesterday an immediate move by Russian
citizens to sell US dollars - the most common form of savings
in the economically battered country - resulting in a dramatic
plunge in public exchange rates from 29:1 to as low as 15:1
overnight. However a Russian government source told FTW
this morning that rates on MICEX (The Moscow International
Currency Exchange) have remained stable. In early trading
the Russian stock exchange lost 5% of its value.
Asian markets crumbled
As reported by MoneyNet,
these are the results of post bombing trading on the Asian
Japan -6.63% (the lowest
level since 1984)
Hong Kong -9.52%
When the NYSE reopens,
amidst what will certainly be massive sell orders, the first
casualties will be insurance companies who face billions
of dollars in immediate claims. Preliminary claims estimates,
for fire, casualty, life, disability and workman's compensation
claims have been estimated in the press as high as $50 billion.
One of the largest insurance companies, American International
Group (AIG), will surely be hard hit. On the World Trade
Center Directory AIG Aviation Brokerage, Inc. is also the
first listed tenant.
Of a certainty, consumer
confidence -- recently touted as the savior of the US economy
-- has been demolished around the globe. Asian economies,
already venturing deeper into recession, had been looking
for increased US orders, based upon consumer confidence,
to boost exports as a life preserver. That life preserver
evaporated yesterday. A CNN story today quoted Asian financial
expert Andy Xie of Morgan Stanley as saying that consumer
confidence had "tipped over."
"We are going down to the
bottom," Xie said. "no one knows where that is."
Reuters quoted a Chief
Economist at Wells Fargo as saying, "A full-blown global
recession is highly likely."
The massive infusions of
cash from the world's central banks, including the U.S.
Federal Reserve may unleash inflationary pressures which
will, in turn, act o increase the prices of gold and other
The fact that no one has
yet taken credit for the attacks and the US government's
short term inability to identify credible suspects, along
with an obvious intelligence "failure" is diminishing US
credibility around the globe. Excessive delays will only
further erode investor perceptions in US efficacy and increase
the economic effects in the US as the world looks for "safer"
places to put its capital.
In the meantime, the US
military and political pressure for an increased presence
in Colombia and what are certain to be inflated military
budgets can only increase global instability.