Breaking news Lord James of Blackheath has spoken in the House of Lords holding evidence of three transactions of 5 Trillion each and a transaction of 750,000 metric tonnes of gold and has called for an investigation.
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Update 21:22 GMT:
Unofficial Transcript of the speech by Lord James of Blackheath, in the Lords Chamber of the House of Lords, London, on 16 February 2012
I'm going to start with my conclusions, but I'm not going to sit down when I've made them. Because I'm then going to give you the evidence to support them and hopefully present to you the reasons why I want support for an official inquiry into the mischief I want to unfold to you this afternoon.
My lords, I have been engaged in pursuit of this issue for nearly 2 years now, and I'm no further through to getting to the truth.
I think there are three possible conclusions that may come from it. I think there may have been a massive piece of money laundering committed by a major government which ought to know better and that it has effectively undermined the integrity of the British bank the Royal Bank of Scotland, in doing so. The second alternative is that a major American department has an agency that has gone rogue on it because it has been wound up and has created a structure out of which they are seeking to get at least 50 billion Euros as a payoff. And the third possibility is that this is an extraordinarily elaborate fraud which has not been carried out but which has been prepared in order to provide a threat to one government or more if they don't pay them off. So there are three possibilities and this all needs a very urgent review.
My Lords, it starts in April and May of 2009, with the alleged transfer to the United Kingdom, to HSBC of a sum of 50 trillion dollars and seven days later, in comes another 50 trillion dollars to HSBC, and then 3 weeks later another 50 trillion. 5 trillion in each case. Sorry. A total of 15 trillion dollars is alleged to have been passed into the hands of HSBC for onward transit to the Royal Bank of Scotland and we need to look at where this came from and what the history of this money is. And I have been trying to sort out the sequence by which this money has been created and from where it has come from for a long time.
It starts off apparently as the property of a man called Yohannes Riyadi. Which has some claims to be the richest man in the world. Well he would be if all the money that was owed to him was paid, but I have seen accounts of his showing he owns 36 trillion dollars in a bank. And it is a ridiculous sum of money. On the other hand the 36 trillion dollars would be consistent with the dynasty from which he comes and the fact that they had been effectively the emperors of Indo-China in times gone by. But a lot of that money has been taken away from him with his consent by the American treasury over the years for the specific purpose of helping to support the dollar.
He has sent to me a really quite remarkable document which is dated in February 2006 in which the American government, according to a meeting with the Federal Reserve Bank of New York, which is neither a Federal Reserve, nor a Bank. It's a bit like celebrity big brother. It's got three names to describe it and none of them are true. And this document, which is quite astonishing, purports to have been a meeting. It is witnessed by Mr. Alan Greenspan, who signed for the Federal Reserve Bank of New York, of which he was chairman, as well as the real Federal Reserve Bank in Washington. And it is signed by Mr. Timothy Geithner, as a witness on behalf of the International Monetary Fund who sent two witnesses, the other one being Mr. Yusuke Horiguchi and these gentlemen have signed as witnesses to the effect that this deal is a proper deal. There are a lot of other signatures on here as well. This is not a photocopy. This is an original version of the contract. Under which the American treasury has apparently got the Federal Reserve Bank of New York to offer to buy out the bonds which have been issued to Mr. Riyadi to replace the cash which has been taken from him over the previous ten years and they're giving him 500 million dollars, as a cash payment to buyout worthless bonds.
Now this is all in the agreement and it's very remarkable. I would have thought that establishing whether this is a correct piece of paper or not is just 2 phone calls away. One to Mr. Geithner and one to Mr. Greenspan. Both of whom still prosper and live, so they could easily confirm whether they signed this.
Mr. Riyadi has, by passing these bonds over, also put at the disposal of the U.S. Treasury the entire asset backing which he was alleged to have for the 15 trillion. I now have a letter here -- from the Bank of Indonesia, which says that the whole thing was a pack of lies. That he did not have the 750,000 tonnes of gold which was supposed to be backing it. He only had 700 tonnes. And this is really a piece of complete fabrication.
Finally, I have a letter here from Mr. Riyadi himself, who tells me he was put up to do this and that none of it was true and that he has been robbed of all his money and I'm quite prepared to recognize that one of the possibilities here is that Mr. Riyadi is himself putting this together as a forgery in order to try and win some recovery back.
But it gets more complicated than that. Because each of the 5 trillion payments that came in has been acknowledged and receipted by the executives at HSBC and again receipted by the executives at the Royal Bank of Scotland. And I have a set of the whole of those receipts for all of this money. Why would any bank want to sign 5 trillion dollars worth, 15 trillion total, of receipts if the money didn't exist.
The money was said to have come, first of all from the Riyadi account, to the Federal Reserve Bank of New York, and from the Federal Reserve Bank of New York it was passed through JPMorgan Chase in New York for onward transit to London. The means of sending it was a SWIFT note, which ought to have been registered with the Bank of England if it was genuine. So when this happened and came about, I first of all took it to my noble friend Lord Strathclyde (sp?), and said, "what do we do with this"?
He said, give it to Lord Sassoon, he's with treasury. So we did and Lord Sassoon looked at it and said immediately, "This is rubbish -- it's far too much money, it would stick out like a sore thumb and you can't see it in the Royal Bank of Scotland accounts". Quite right. Secondly he said, "The gold backing is ridiculous, there has only ever been 1,507 tonnes of gold mined in the history of the world, so you can't have 750,000 tonnes" [Editors Note: The 1,507 tonnes is not correct, but the number is still FAR smaller than the 750,000 tonnes -- somewhere around 150,000 metric tonnes]. This is true and the third thing he said obviously was, "it's a scam", and I agree with him. It was a scam. The problem is we stopped looking at that point. We should have asked, what is the scam? Instead of, at that time, just nodding it off. And we have never really resolved this, because today, I have this piece of paper.
Which is my justification for bringing it into this meeting today, which is available on the internet and I'm astonished that it hasn't already been unearthed by the treasury and every alarm bell in the land should be ringing if it has. Because this is the general audit office of the Federal Reserve...the real Federal Reserve in Washington. And its audit review in the end of July of 2010 on the Federal Reserve Bank of New York. It has on it, some 20 banks listed, to which 16.115 trillion dollars are outstanding in loans. My Lords, that is the sore thumb that was being looked for by Lord Sassoon.
But more particularly there are two other very interesting things in this. The first is that Barclays Bank got 868 billion in loans, the Royal Bank of Scotland has got 541 billion, in which case, one has to ask, is that they could have earned in three weeks, enough to pay off their entire indebtedness to the taxpayers of Britain, why they have not done so and can we please ask them to put a check in the post for the whole 46 billion.
And the third thing that is wrong with it is that every bank on this list, without exception, is an MTN-registered bank. Which means they are registered to use the medium term notes to move funds between themselves with an agreed profit share formula. In which case these banks are investing this money and most extraordinary, not a penny of interest does the Federal Reserve Bank want paid on this vast amount of 16 trillion.
Anyone amongst yourselves who knows what the IMF rules for financials are will immediately smell a rat. Because the IMF has very strict rules for validating dodgy money. There are two ways of doing it. You either pass it through a major central bank, like the Bank of England, who have apparently refused to touch this. Or alternatively, you put it through to a bank which is an MTN trading bank. Which is then able to use the funds on the overnight European MTN trading market where they can earn between 1 and 2.5% profit per night. And the compound interest on that is huge. So there is a vast profit being made with this money somewhere if it is in fact genuine.
So my Lords, I believe that this is such an important issue now that I've put everything I've got on this subject into a 104 megabyte memory thumb. And I want the government to put this to some suitable investigative bureau and take everything I've got on the subject and find out what the truth is about what is going on here because there is something very seriously wrong. Either we have a huge amount of tax uncollected on profits made, or we've got a vast amount of money festering away in the European banking system which is not real money, in which case we need to take it back. My Lords, I ask for an investigation and please support my plea.