These are not forgeries or counterfeits. They are “frauds”. Just like the “Morgenthau notes” Treasury encountered in the past.

Our big bonds aren’t even printed anymore, you just get a Treasury account number and the computer pays your personal checking account as programmed.

I was tipped off to this story by European penpals and the first european stories described the paper as perfect “Kennedy notes”. There’s confusion all right, and it seems to be on the part of the press.

I’m sure its news to us squares but all the evidence suggests we could take Monopoly money and stamp them with characters from a Chinese restaurant menu, and sell them online as Taiwanese banknotes…and enough wealthy idiots in the world would fall for it, to make it pay off.

I mean, we could do it and it would technically enhance American GDP…but it would be WRONG.

Meyerhardt said Treasury records show an estimated $105.4 million in bearer bonds have yet to be surrendered. Most matured more than five years ago, he said. The Treasury stopped issuing bearer bonds in 1982, Meyerhardt said.

And, some idiot was trying to pass off around $134 billion in unregistered bearer bonds?

petefrt on June 18, 2009 at 5:01 PM

I think the offical story will be that these Asian fellows were victims scammed into buying the worthless bonds, which they thought were legit, and were on their way to Zurich to cash the bonds.

That sounds possible, but it doesn’t explain the behavior of the Italians or the behavior of Washington waiting two weeks before calling these things fakes. Although, in the case of Washington’s response, it could be argued that you don’t want to get into the habit of of commenting on ridiculous forgeries because then you always have to comment on subsequent ridiculous forgeries or everyone will think that one is the real deal.

It’s the “undistinguishable from the real ones.” comment in the media that was the killer. I don’t think these certificates ever existed so there never was a “real one” and someone in Italy would have had to have held a “real one” side-by-side with the ones they confiscated to make the assertion.

Red neck or hick would be ‘inaka mono’ or ‘hyakusho’

DarkCurrent on June 18, 2009 at 3:40 PM

“inakappe” is my personal fave. it literally translates as “country fart”. ;-)

Where they jokes, hand drawn in crayon, with pictures of Moose on them? Or did somebody spend REAL time and effort making these things — even going so far as to make eight different denominations — but then not realize that a billion dollar bearer bond might as well say eleventy gazillion dollars?

No part of these two stories make the slightest bit of sense. This one’s getting buried deep.

.Buddahpundit on June 18, 2009 at 4:11 PM

Glenn Beck was pointing out today how the authorities have reversed their story on this. Sounds like so much scrambling and bungling to me. Stinks on ice.

the headline of the japanese article linked there says that they were released without charges, i believe…

homesickamerican on June 18, 2009 at 3:22 PM

That’s the way I read it too.

What it suggests to me is that they served their purpose, and the person(s) powerful enough to stage this made sure they were let go.

Daggett on June 18, 2009 at 3:40 PM

The more I think about it, the more I think you’re right. It suggests that another state intervened on the smugglers’ behalf and secured their release.

Next question: Did Italy collect its 30% or whatever for catching the smugglers? If so, then the bonds were authentic, right?

I have the email to prove it.

the quality of the counterfeit work is such that the fake bonds are undistinguishable from the real ones.

Now you get this quote from Washington:

“All we’ve seen is a photograph that’s been moved on the Internet. But just with that we can tell that those are not real Treasury securities,” he added.

It might be that the story and the silence about the story was the whole idea. If you know a panic is going to occur and you know when the panic is going to end, you can expect to make money with it.

Whoever initiated the comment about the bonds being “indistinguishable from the real ones” has got to be in on the scam. That person would have had to have a real billion dollar bill to hold side-by-side with these to even make that comment.

I don’t think you are understanding how a commodity that hostile nations could affect the supply of would devastate such a plan. Are we talking petrodollars? Gold standard? Or are we just going to go with good ol’ orange juice?

MadisonConservative on June 18, 2009 at 3:23 PM

A commodity basket currency with a comprehensive set of commodities is not depenedent on the fluctuation of one commodity just as the dollar is not value driven by just one sector of the economy i.e. healthcare

Russia and China could also be behind it, but that seems less likely. They don’t have to counterfeit American securities, especially China; they hold plenty of them. If they want to crash the dollar, all they have to do is start dumping the legitimate securities they own. Producing counterfeits would only dilute their own holdings, perhaps the costliest example of cutting off one’s nose to spite one’s face ever.

I know this sounds crazy but I’m reading David Kilcullen’s The Accidental Guerrilla, in the book he conveys a new Chinese military axiom on how to win a conflict against the US. A few Chinese colonels released a book in 1999 that essentially said to fight the US in a conventional war would be like committing suicide. Instead they said you would need to fight the US unconventionally (i.e. Guerrilla War)in a hybrid war. In this hybrid war or Fourth generation warfare an adversary uses Terrorism, sophisticated psychological warfare with an emphasis on Media manipulation and puts pressure on political and economic fronts. Well Al Qaeda and their lot have already executed the first two elements and maybe now China sees an oppertunity they can topple US hegemony.

You talking frozen concentrated orange juice?

Chaz706 on June 18, 2009 at 3:34 PM

Indeed.

You’d think the Italians would have been a bit more on the ball on this one.

The unanswered questions are generating more questions, and our faithful professional MSM is doing what? Still talking about our Valiant Little President…that Brothers Grimm’ fairy tale “Seven in One Blow” prowess at killing a fly.

The Japanese Bond Smugglers Are Missing, The Business Insider, June 17, 2009

This might suggest they were real bonds that some huge bond-holding nation (like China or Japan) was unloading legally (but off the open market), therefore no actual crime was committed, no arrest was made.

petefrt on June 18, 2009 at 3:16 PM

What it suggests to me is that they served their purpose, and the person(s) powerful enough to stage this made sure they were let go.

A pejorative? Sure it is. Same as Red Neck or Hick when used by most mainstream Japanese.

coldwarrior on June 18, 2009 at 3:34 PM

No, it’s not equivalent to red neck or hick. It was a specific social class during feudal times (not so distant in Japan) and descendents of ‘burakumin’ still face discrimination if they are identified as such.

Red neck or hick would be ‘inaka mono’ or ‘hyakusho’

DarkCurrent on June 18, 2009 at 3:32 PM

Was referring to Chosen Soren, not North Koreans.

A pejorative? Sure it is. Same as Red Neck or Hick when used by most mainstream Japanese.