$134B Bond Fraud May Be Mob Handiwork

US debt office tells conspiracy theorists to calm down

(NEWSER) - Conspiracy theorists, take note: The US bonds seized near the Swiss border with a face value of $134 billion "are clearly fakes," a Washington spokesman tells Bloomberg. Most securities are now issued electronically, only about $105 billion in bonds have yet to be surrendered, and the "Kennedy bonds" found on the two detained Japanese businessmen don't even exist. Had the bonds been genuine, the men would have been the fourth-largest holders of US debt. More»

Italy arrests men with enough US bonds to buy a few countries

(NEWSER) - Last week, Italian authorities detained two Japanese men attempting to cross the border into Switzerland carrying a suitcase stuffed with $134 billion in US bonds. The men are either massive counterfeiters or—even scarier—the fourth-largest creditors of the US Treasury, with enough cash to buy three or four countries. If the bonds are real, writes Bloomberg columnist William Pesek, "the US risks losing control over its monetary supply on a massive scale." More»

(NEWSER) - Two Japanese citizens were detained last week after allegedly trying to take $134 billion in undeclared US bonds from Italy to Switzerland, Bloomberg reports. Both countries are investigating the incident. “Italian authorities are in the midst of the investigation, and haven’t yet confirmed the details, including whether they are Japanese citizens or not,” a Japanese official says. More»

It's buying up struggling companies

(NEWSER) - As banks spurn borrowers, Italian mafiosi are lending out their cash stockpiles to profit from the global recession, Bloomberg reports. Long invested in cash-intensive businesses like food distribution, the mafia is using its liquidity to take control of other legitimate businesses—and as a bonus, the three main mob outfits are using the occasion to launder their assets. More»

Willing to take nothing for their money

(NEWSER) - The results of yesterday’s short-term bond auction were staggering. Investors snapped up $30 billion worth of Treasuries at a 0% yield—essentially lending the government money for free, the New York Times reports. Earlier, some investors even accepted a negative yield to park their cash in three-month Treasury bills. “The last time this happened was the Great Depression,” one analyst said. More»