Links to Story

AsiaNews [06 23 09]
Latest update from AsiaNews. They have been on the story from the start. Good reporting and commentary from the scene of the crime.... more

Karl Denninger 06 21 09]
Excellent, objective, timely update on what we really know and don't know about the US bonds seized by the Italian police. must read

Japan Today [06 19 09]
Japanese consulate general in Milan confirmed two Japanese citizens were detained June 1 by Italian police after attempting to enter Switzerland with undeclared U.S. bonds. Both men were released later that day after an Italian lawyer provided fidelity guarantee for them..... more

AsiaNews [06 19 09]
After two weeks a US Treasury official says securities were fakes. Italy’s financial police is silent. The case is still baffling and full of discrepancies....... more

Seeking Alpha [06 16 09]
The currency war being fought today is sure to get much uglier in the foreseeable future...... more

HRTRADER [06 15 09]
There is something very strange going on, whether or not the bonds are real (which seems likely considering the difficulty in cashing a fake $500 million bond). What does seem likely is that someone was doing something underhanded with an enormous amount of money. But what?....... more

Daily KOS [06 13 09]
There are only three foreign countries that hold this large amount of US bonds, Japan, Russia, and China. Strangely this 134.5 billion amount matches the available funds in TARP....... more

AsiaNews [06 12 09 ]
Seized US bonds are worth $134.5 billion. The whole affair touches a number of economic and political issues. For some the resignation of Japan’s Interior minister might be related to it.... more

IBTimes [06 12 09]
The men were also found carrying a large number of original bank documents. Authorities are currently investigating the identity and origin of the bonds and the bank documents........ more

AsiaNews [06 08 09]
Bonds worth $134.5 billion are seized. This is the largest financial smuggling case in history. But are they real? The international press is silent....... more

SlyRyder Comments

[06 25 09]

$134.5 Billion Dollar Bond
Adventure - Little Info, Lotta Aigda!

It's been exactly three weeks since the Guardia di Finanza (Italian Financial Police) proudly released photos and a video of the seized bonds. [Links to photos and video posted above.] The Guardia di Finanza seemed so proud. Look what we found in a suitcase of a Japanese citizen! Mamma Mia! So, the Guardia di Finanza launched this adventure with a whole lotta hoopla. Other than the initial ballyhoo, the Italian police haven't offered many details about their investigation. Colonel Rodolfo Mecarelli, the provincial commander of the financial police in Como, should call a news conference and answer a few basic questions about his department's investigations thus far. Instead of the Guardia di Finanza releasing one piece of info to one newspaper, a different byte of info to another source or inconsistent info to the same source, a news conference would be great because then everyone could receive the same info at the same time! Asia News, Glen Beck and others in the press also think a news conference would be most helpful.

Five Easy Questions
for Colonel Rodolfo Mecarelli

What date and time were suspected smugglers detained? The Japanese and Italian press have reported the men were detained sometime between June 1 to June 4. The NYT reported the men were detained in "early June". According to Japan Today, the Japanese consulate general in Milan confirmed that two Japanese citizens were briefly detained by Italian police on June 1 after attempting to enter Switzerland with $134.5 billion worth of US bonds. Colonel Mecarelli, do you know the date and time the Japanese citizens were detained at the train station in Chiasso? And Colonel Mecarelli, there are also conflicting reports in the media regarding the names of the officers who detained the Japanese citizens. Do you know the names of the officers?

What date and time were the suspected smugglers released? During their brief detention, did either one of the Japanese citizens present a passport? Did the Guardia di Finanza take a picture of said passports? Was one of the detainees from Kanagawa Prefecture (central Japan)? Was the other detainee from Fukuoka Prefecture (western Japan)? Were any of the following names on the passports: Yohannes Riyadi, Sannai Tsuneo, Tsuneo Yamauchi, Wilfredo Saurin, Joseph Daraman. Did the Italian police leak any of these names to the press or to a government official? Did the Japanese citizens leave with their passports? You did take pictures of the passports, right?

Did an Italian lawyer represent the suspected smugglers? During their brief detention, did either of the detainees say the words "diplomatic immunity" or words to that affect? Did an attorney represent the two Japanese citizens while they were briefly detained by the Guardia di Finanza? Were the two men released after a lawyer provided fidelity guarantee for them? If so, did the attorney do this all over the phone or did the attorney actually come and meet with the detainees in person? Are the Guardia di Finanza familiar with this attorney? How do the the Guardia di Finanza know he was really an attorney? And, did this attorney bring up the subject of diplomatic immunity? Does the attorney have a name? When they left, did the detainees take the US bonds and the "Japanese" bank documents with them? What was the name of the bank on the "Japanese" bank documents? You did take quality pictures of the US bonds and bank documents, right?

On what date did the Guardia di Finanza know the detainees were Japanese citizens? Did the Italian police know the detainees were Japanese citizens before or after their release? As of today, 06 25 09, do the Guardia di Finanza believe the two men they briefly detained with $134.5 Billion worth of US bonds are actually Japanese citizens? In other words, do the Italian police now believe the smugglers were carrying legit passports? If so, who determined the passports were legit? Guardia di Finanza? Someone else?

One final question. Did the Guardia di Finanza ever here back from the US Securties and Exchange Commision? On June 12 Bloomberg and several news sources reported that Colonel Rodolfo Mecarelli of the Guardia di Finanza said he expected the Securities and Exchange Commission to make a determination about the bonds within a few days. Did the SEC get back to the Italian police or prosecutors yet? What did the SEC say? Do Italian authorities agree with the SEC assessment?

The Guardia di Finanza should just throw down a news conference and answer a few reasonable questions. They have nothing to hide, right?

[06 21 09]
The photo (link above) of the Billion Dollar Federal Reserve Note didn't really appear out of thin air. The Turner Radio Network reported that they obtained the photo from the Guardia di Finanza (Italian Financial Police). Well, why hasn't the Italian police shared any detailed photos with anyone else in the press? Check out the photo of the Billion Dollar Note. Real? Fake? Well, how long has this photo been floating around in cyberspace? One of our visitors, ICE, found it here. Thanks ICE!

For all the dads who have been following this Mysterious Bond Caper, Karl Denniger has posted a nice Father's Day present at the Market Ticker. Check out Mr. Denniger's timely, accurate update of all the shenanagins and sloppy reporting that have fueled this story thus far.

SlyRyder will rejoin the fray with his comments tomorrow. Peace, Happy Father's Day!

[06 20 09]
Next SlyRyder Update 06 22 09.

[06 19 09]
I believe the Italian police will soon announce that the $134.5 billion in US bonds that they confiscated are "real" (see my post below) and one of the smugglers is very likely to be identified as either Sannai Tsuneo or Tsuneo Yamauchi. As we have previously stated this is going to get ugly. It will soon be clear to everyone that the Federal Reserve Board NEEDS TO BE AUDITED! YUM, YUM, YUM, the fed could be done.

[06 19 09]
David Lawder of Reuters reported that a spokesman for the U.S. Bureau of Public Debt said the recently seized $134.5 billion of U.S. Treasury Bonds in Italy are fakes. "Based on the photograph we've seen online, they are clearly fake. And not even good fakes," said Stephen Meyerhardt, a spokesman for the Treasury's Bureau of the Public Debt.

Well, Mr. Meyerhardt, I think I'll wait for the Italian authorities to officially announce if the bonds are "fake" or real. So far, the Italian police have not released the names of the alleged smugglers. I believe they are waiting to announce the names of the smugglers when they also announce that the bonds are indeed real. The Italians can levy up to a $53.8 billion fine. The Italian police have probably known from the beginning that the bonds are genuine and they have not released the names yet because they are carefully connecting all the dots. They want their $53.8 billion. Yes, I still believe the $134.5 billion in US bonds are real. I also believe the bonds are owned by a government. I now believe the bonds are owned by the government of Japan. One of the smugglers might be related by marriage to a former officer of the Bank of Japan. I believe the Italian police will confirm all of this in a few days. They are just lining up all the ducks. They are also telling the Federal Reserve Board and US Treasury WE WANT OUR MONEY!!!!!!!!!!!!!

I'll post a possible name of one of the smugglers in a few days if the Italian police don't come forward with the true story. Or maybe the Italian police will leak a few names. That would be fun.

[06 15 09]
Italian Premier Silvio Berlusconi's met with President Barack Obama today. Did they discuss the $134.5 billion in US bonds recently seized by Italian border guards? Well, they didn't say. The American press didn't ask. In fact, the American media, except for Bloomberg, has not covered this story even though it started unfolding 12 days ago. The American press is too busy covering Letterman vs. Palin.

On June 12, Bloomberg reported: Colonel Rodolfo Mecarelli of the Guardia di Finanza (Italian finance police) said he expected the Securities and Exchange Commission to make a determination about the bonds within a few days. Well, it has been three days since that statement. The US Secret Service has been studying the confiscated bonds since June 4th. They don't know what they are looking at? Didn't they ask the Federal Reserve Board? Trust me, the feds know if the bonds are authentic.

As previously posted, I believe the bonds are real and they are owned by a government, probably Japan, Russia or China. If the bonds are real, then according to Italian law the government could throw down a fine up to 40% of the value of the seized assets. So, Italy could snatch a quick $53.8 billion. Will the USA (Federal Reserve Board and US Treasury) and the owner of the US bonds pressure Premier Berlusconi to not levy a fine? Will the Italian parliament and the Italian people go along with that? I don't think so. The people and the Italian government want THE MONEY!!! But will Berlusconi have the balls to fine another government $53.8 billion? There is a G-8 summit in a few weeks in Italy. Will the protesters fill the streets over this issue? This could get juicy. Of course, the USA could just claim the bonds are forgeries and blame it all on North Korean agents working for Bernie Madoff.

[06 14 09]
U.S. Treasury Secretary Timothy Geithner, Italian Economy Minister Giulio Tremonti and Senior Japan Finance Minister Kaoru Yosano all attended a meeting for Group of Eight finance ministers in Lecce, Italy on June 14. Not one member of the press asked them about the $134.5 billion worth of US bonds seized June 3 on the Swiss-Italian border by Italian police. The silence of the American press continues.

It has been almost 12 days and Italian authorities still have not announced whether the bonds are real or fake. Italian officials are also still trying to determine if the two men they detained for smuggling undeclared bonds are really Japanese citizens. Fake passports? Fake bonds? Are the governments of Japan and America cutting a deal with the Italian police? Maybe. Or just maybe, behind the scenes, all the governments involved are SCREAMING at one another.

"You said your confidence in the American dollar was unshakeable," screamed the Federal Reserve Board. "So, why are you secretly dumping American dollars for euros and gold?"

"We don't like you or your money," said whomever owns the $134.5 billion in soon-to-be worthless bonds.

"It's a good thing you don't like our money because we aren't going to honor these bonds," smiled the fed.

"Whaaaaaaaaaaaaaaaaaaaaaat??????"

[06 12 09]
According to Italian law, failure to declare financial instruments and cash in excess of $10,000 Euros when entering or exting Italy is ILLEGAL! Oops. The Italian government can impose a fine of up to 40% of the amount seized. Ouch. The Italian government could grab $53.8 billion. This could really get ugly. We hope so.

I believe one of America's largest creditors is owner of the bonds. China is holding $767.9 billion of US debt and Japan has $686.7 billion of US debt. Russia has $138.4 billion of Uncle Sam's debt, Brazil holds $126.6 billion of US debt. So, there was a huge incentive for China, Russia or Japan to discreetly unload such a huge amount of US bonds. The plot thickens.

[06 11 09]
We first picked up on this story 06 08 09 from both Bloomberg and AsiaNews. Links to other sites covering this story are posted on the left side of this page. At this point, there are at least three governments involed in this mysterious adventure: Italy, Japan, USA. Senior officials from all three countries claim they are still trying to sort out if the bonds are real or fake and whether the Japanese passports presented by the detainees are authentic. I predict the bonds are the real McCoy. I also predict the bonds are owned by a government. Which government? Stay tuned. For now, the governments involved are publicly stonewalling while in private they are giving each other the middle finger salute.

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