Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on

September 11, 2001

On September 11, 2001 the definition of National Security changed for most U.S. citizens. For an entire postwar

generation, “National Security” meant protection from nuclear attack. On that day, Americans redefined that threat.

On September 11, 2001 three hijacked airliners hit three separate buildings with such precision and skill that many

observers believe those flights were controlled by something other than the poorly trained hijackers in the cockpits.

This report contends that not only were the buildings targets, but that specific offices within each building were the

designated targets. These offices unknowingly held information which if exposed, subsequently would expose a

national security secret of unimaginable magnitude. Protecting that secret was the motivation for the September 11

attacks. This report is about that national security secret: its origins and impact. The intent of the report is to provide

a context for understanding the events of September 11

rather than to define exactly what happened that day.

Initially, it is difficult to see a pattern to the destruction of September 11

other than the total destruction of the

World Trade Center, a segment of the Pentagon, four commercial aircraft and the loss of 2,993 lives. However, if

the perceived objective of the attack is re-defined from its commonly suggested ‘symbolic’ designation as either ‘a

terrorist attack’ or a ‘new Pearl Harbor,’ and one begins by looking at it as purely a crime with specific objectives

(as opposed to a political action), there is a compelling logic to the pattern of destruction. This article provides

research into the early claims by Dick Eastman, Tom Flocco, V.K. Durham and Karl Schwarz that the September

attacks were meant as a cover-up for financial crimes being investigated by the Office of Naval Intelligence

(ONI), whose offices in the Pentagon were destroyed on September 11

After six years of research, this report

presents corroborating evidence which supports their claims, and proposes a new rationale for the September 11

attacks. In doing so, many of the anomalies – or inconvenient facts surrounding this event - take on a meaning that

is consistent with the claims of Eastman et al. The hypothesis of this report is: the attacks of September 11

were

intended to cover-up the clearing of $240 billion dollars in securities covertly created in September 1991 to fund a

covert economic war against the Soviet Union, during which ‘unknown’ western investors bought up much of the

Soviet industry, with a focus on oil and gas. The attacks of September 11

also served to derail multiple Federal

investigations away from crimes associated with the 1991 covert operation. In doing so, the attacks were justified

under the cardinal rule of intelligence: “protect your resources”

and consistent with a modus operandi of sacrificing

lives for a greater cause.

The case for detailed targeting of the attacks begins with analysis of the attack on the Pentagon. After one concludes

that the targeting of the ONI office in the Pentagon was not random – and that information is presented later

– one

then must ask: is it possible that the planes that hit the World Trade Center, and the bombs reported by various

witnesses to have been set off inside the buildings 1, 6 and 7 and the basement of the Towers, were deliberately

located to support the execution of a crime of mind-boggling proportions? In considering that question, a pattern

emerges. For the crimes alleged by Eastman, Flocco, Durham and Schwarz to be successful, the vault in the

basement of the World Trade Center, and its contents - less than a billion in gold, but hundreds of billions of dollars

of government securities - had to be destroyed. A critical mass of brokers from the major government security

brokerages in the Twin Towers had to be eliminated to create chaos in the government securities market. A

situation needed to be created wherein $240 billion dollars of covert securities could be electronically “cleared”

without anyone asking questions- which happened when the Federal Reserve declared an emergency and invoked its

“emergency powers.” that very afternoon.

The ongoing Federal investigations into the crimes funded by those

securities needed to be ended or disrupted by destroying evidence in Buildings 6, 7 and 1.

Finally, one has to

understand and demonstrate the inconceivable: that $240 billion in covert, and possibly illegal government funding

could have been and were created in September of 1991. Filling in the last piece of the puzzle requires

understanding 50 years of history of key financial organizations in the United States, understanding how U.S.

Intelligence became a key source of their off-balance sheet accounts, and why this was sanctioned by every

President since Truman.

With that, a pattern of motivation is defined which allows government leaders and

intelligence operatives to ‘rationalize’ a decision to cause the death 3,000 citizens.

Page 2

World Trade Center

There were three major securities brokers in the World Trade Center: Cantor Fitzgerald, Eurobrokers and Garbon

Inter Capital. On the morning of September 11, Flight 11 hit the North Tower at 8:46 right below the floors on

which Cantor Fitzgerald was situated. Cantor Fitzgerald was the US largest securities dealer

in the US and

arguably the primary target.

Shortly after that, a massive explosion went off just under the FBI offices in the North

Tower on the 23rd floor, and Garbon Inter Capital on the 25th floor, and in the basement of Tower 1 as well. The

explosion caused the 22

through 25

floors above to collapse into an inferno.

Fires were reported on the 22

floor

at 8:47.

Shortly, thereafter, at 9:03, Flight 175 hit the South Tower right below the floors on which Euro Brokers

was situated. (See Chart on page 42.) In all three cases, the explosive, fiery destruction consumed the offices in the

several floors above. At 9:37 Flight 77 hit the Pentagon, targeting one of the few offices that had been moved in the

newly remodeled section of the Pentagon: the Office of Naval Intelligence.

Agents of the Office of Naval

Intelligence had been investigating the financial transactions which in this report are linked to securities being

managed by those security dealers in the World Trade Center that were targeted.

Fortunately, most other agencies

had not yet been moved back into the targeted section of the Pentagon. 41% of the fatalities in the Twin Towers

came from two companies that managed U.S. government securities: Cantor Fitzgerald and Eurobrokers.

31% of

the 125 fatalities in the Pentagon were from the Naval Command Center that housed the Office of Naval

Intelligence. 39 of 40 Office of Naval Intelligence employees died. In the vaults beneath the World Trade Center

Towers, any certificates for bonds were destroyed.

Building 7 was evacuated somewhere between 9:00 and 9:30, depending on various claims. Fires and explosions

spontaneously began at multiple locations inside the building prior to the collapse of either Tower. This observation

is critical in that the official explanation for the fire is that they started when objects from the collapsing towers

caused the fires to ignite. Witnesses leaving the building claim to have seen fires already starting, and dead

bodies.

The Building ultimately was destroyed in what many unofficial observers now believe was a controlled

demolition. Building Seven housed the following agencies critical to investigation of financial crimes related to this

history:

Export-Import Bank of the US

Floor 6

US Secret Service

Floors 9 & 10

Securities and Exchange Commission

Floors 11,12 &13

Internal Revenue Service

Floors 24 & 25

CIA

Floor 25

Department of Defense

Floor 25

“All the evidence that we stored at 7 World Trade, in all our cases, went down with the building," according to

US Secret Service Special Agent David Curran -- the number three guy in that office. "We lost our network, we

lost all our computers, we lost all the equipment that we use as Secret Service Agents. Everything from machine

guns to our shotguns to our electronic equipment that we use." A lot of cases had to be closed as a result of

losing that building.”

(See note for additional references.)

In the midst of all this, Building 6 was destroyed by explosions from within, before being buried in the rubble of the

Towers.

FEMA, the agency charged with investigating the disaster, did not collect any data on this building.

Building 6 was home to the U.S. Customs agency and the El Dorado Task force, an interagency money-laundering

group from 55 agencies created in 1992. The El Dorado Task force was responsible for coordinating all major

money-laundering investigations in the U.S. In the immediate aftermath of September 11, these groups would be

redirected to investigate terrorist financing.

On the same day, the Securities and Exchange Commission declared a

national emergency and for the first time in U.S. history invoked its emergency powers under Securities Exchange

Act Section 12(k) and eased regulatory restrictions for clearing and settling security trades for the next 15 days.

These changes would allow an estimated $240 billion in covert government securities to be cleared upon maturity

without the standard regulatory controls around identification of ownership.

(The manner in which this was

accomplished is explained later in the report.)

Page 3

The Pentagon

It must be noted that the Office of Naval Intelligence in the Pentagon, which sustained a direct hit from an

airliner that day, was without a doubt, a target that was pinpointed for destruction. There are a number of

indicators that this was the case:

•

The command centers of the US Armed forces and the Office of the Secretary of Defense are located on the

River and Mall, northern facing segments of the Pentagon.

This is public information. Either of those

facades should have been the prime target for a well-planned attack. It needs to be remembered that the

individuals responsible for September 11 had almost three years to plan their assault. The targets and

methods were not haphazard.

•

The western facing section of the Pentagon that was attacked had been under constructions for almost two

years, and would not have been considered as a target, unless it was targeted for a specific reason.

•

The Naval Command Center had been moved into that newly opened section of the Pentagon a month

earlier

;

•

The attacking aircraft went through great effort to hit the west side of the Pentagon, under either of

contentious scenarios, looping around the Pentagon by 270 degrees after approaching from the north east, or

looping 360 degrees with it’s approach from the West. Under either scenario, the additional looping created

an opportunity with extra flight time for defense systems to take out the attacking plane, and the hijackers

took a significant risk of being shot down by executing this maneuver.

(See Figures 1 and 2)

•

If one looks carefully at the Koeppel flight path approach seen in Figure 1, the attacking flight path went

almost directly over the Whitehouse, bypassing what should be considered a primary target, for a supposedly

empty section of the Pentagon. With the alternative approach presented by the National Transportation

Safety Board, the extra distance in the loop would have allowed it to hit either the White House or the

Capitol had it continued straightforward.

•

Derek Vreeland who claimed to be an agent for Office of Naval Intelligence had predicted the attack several

weeks in advance

;

•

The ONI has been attributed by several sources with responsibility for leaking copies of the faxes which

document the illegal transaction of 1989-1991.

Figure 1 (above) shows the two looping flight paths presented. On the left, an approach mapped by

Former Air Force Pilot Steve Koeppel,

on the right, the official approach presented by the National

Transportation Safety Board.

Page 4

Figure 2 (below) shows the western approach hitting the ONI,

while the Mall and River Entrances with the prime targets,

initially in the direct path of the northern approach, are ignored.

Did Flight 77 “pass” on three primary targets (the White House, the Capitol, and the command centers in the north

face of the Pentagon) in order to make a precision hit on what should have been known to be an empty segment of

the Pentagon? Did the pilot, described as having “extraordinary skill,” after years of planning, hit a worthless target?

It would seem the assumption has to be the pilot hit exactly where he wanted to hit. The planes hitting the South

Tower and Pentagon maneuvered in the last moments to hit their exact target. With a world of targets available,

why these?

For the majority of Americans, the unanswered questions regarding that day are legion. While many of the questions

may never be answered, the extraordinary destruction experienced at specific locations in the WTC, and the peculiar

targeting of the Pentagon all support a pattern of deliberate destruction of sites key to the claims of Eastman,

Durham, Flocco and Schwarz. While most media reports defer to the U.S. government contention that Osama Bin

Laden was behind these attacks, foreign media provided reports suggesting that the “real power” behind Al Qaeda

was unknown.

As shall be seen, the financial power behind the attack is the same power that created these

securities, and the same power as that which founded Al Qaeda.

The Origins of the World Trade Center Attack

Most historians track the history of September 11th to 1998 when Osama Bin Laden declared a fatwa or jihad

against the U.S., and the terrorist “Hamburg Group” lead by Mohammed Atta reportedly “offered” it’s services to Al

Qaeda.

However, the history which defines the motives for the September 11 attacks goes much further back in

time. The answers to the questions surrounding the cause of the WTC attack will be found in events going as far

Page 5

back as 1990 and 1991, when the George H.W. Bush was president. To a very great degree, insight into the activities

of that period are cloaked by the Executive Order of George H.W. Bush’s son, President George W. Bush, who on

November 1, 2001 issued Executive Order 13233. This executive order was intended to balance the public's right to

see the records of past presidents with a need to protect national security. As a result, public records which might

have shed light on the activities on 1990 and 1991 remain shielded from public access in the interest of national

security and the men and women who support it. Subsequently, this reconstruction of the events from the late 1980s

and early 1990s is based on news reports, books and articles.

What the public record suggests is that with the beginning of the first Bush Presidency in 1989, George H.W. Bush

initiated a program of covert economic warfare to bring about the collapse of the Soviet Union. The name of this

program appears to be Project Hammer, a previously reported, multi-billion dollar covert operation, ‘third world

investment program’ whose investments remain shielded.

This program consisted of four major covert operations

including:

1) Theft of the Soviet treasury,

2) Currency destabilization of the Ruble,

3) Funding of the KGB Generals’ August 1991 coup against Gorbachev, and

4) Takeover of the key energy and defense industries in the Soviet Union.

At its inception, the program was conducted well within policy framework of the U.S. government as defined by

several Executive Orders authored by Vice President Bush and signed by President Ronald Reagan. There is good

reason to believe that the plan was initially formulated by Reagan’s CIA Director, William Casey. During World

War II, before Casey headed OSS operations in Europe, he worked for the Board of Economic Warfare and his role

was “pinpointing Hitler’s economic jugular and investigating how it could be squeezed.”

Many of the program

operatives were probably engaged through official CIA and National Security channels. However, as a result of the

experience gained by the Bush cabinet and its private sector counterparts during the secretive Iran-Contra and

Ferdinand Marcos gold operations (which will be explained in short order), the execution of that program would be

accompanied by two new assumptions:

1) Using covert and illegal funding for a policy not approved by Congress would remain acceptable. Under George

H.W. Bush, Congressional oversight of covert operations could be ignored with impunity;

2) The American public and their representatives in Congress were too pre-occupied with their own lives to be

worried about what happened in foreign lands, even if those actions violated the law and the constitution.

Emboldened by the lack of consequences for subverting the U.S. constitution and breaking international law during

the Iran-Contra scandal, the Bush administration group known as “the Vulcans” planned a bigger drive to crush the

soul of Communism once and for all. This group had graced themselves with this moniker, naming themselves after

the Roman god of War – Vulcan. They waged war against the Soviet Union and Iraq under George H.W. Bush, and

against Iraq and Afghanistan under George W. Bush.

Belonging to this group

were

•

Dick Cheney

•

Don Rumsfeld

•

Colin Powell

•

Paul Wolfowitz

•

Richard Armitage

•

Condoleezza Rice

The Vulcan’s drive to bring and end to the Cold War was fueled by a covert war chest invisible to congressional

oversight.

This war chest would be known by several names: Black Eagle Trust, the Marcos gold, Yamashita’s

Gold, the Golden Lily Treasure, the Durham Trust or Project Hammer.

These same Vulcans would be brought

back to power in 2000 under the administration of President George W. Bush, son of President George H. W. Bush.

The covert operations conducted by the Vulcans involved – at a minimum – potential securities fraud, money

laundering and violation of Foreign Corrupt Practices act.

In a number of situations, murder and false

imprisonment seemed to be the mainstay of efforts to prevent any remorseful participants in this operation from

going public with their stories.

While accomplishing its objective – bringing about the demise of the Soviet Union

– the program also seems to have lined the pockets of the individuals that executed this policy, at US taxpayer

expense. This was done to the tune of a mere $240 billion dollars in covert and allegedly illegal bonds, which

appear to have been replaced with Treasury notes backed by U.S. taxpayers in the aftermath of September 11!

Page 6

Seventeen years later in 2008, the personal financial empires of those who benefited directly from these covert

securities should now stand at several trillion dollars, and are rightfully the property of various citizenries. Putin’s

purge of selected oligarchs is consistent with this story.

The covert securities used to accomplish the original national security objective of ending the Cold War ended up in

the vaults of the brokers in the World Trade Center, and were destroyed on September 11, 2001.

They came due

for settlement and clearing on September 12. The federal Agency investigating these bonds – The Office of Naval

Intelligence- was in the section of the Pentagon that was destroyed on September 11.

To a key group of senior

National Security officials who had participated in the victory of the economic cold war in 1991, the WTC, the

Pentagon, the four airliners and their occupants would became ‘collateral’ damage in the ending of the Cold War.

Their deaths were required to hide the existence of the Black Eagle Trust, and the covert activities it had funded for

over 50 years. The alternative view of these events suggests that the destruction of these lives and buildings

constituted a cover-up of continued lawlessness by a fraternity or brotherhood of businessmen and criminals often

referred to as ‘the Enterprise’ in the 1980s, but has remained in the shadows since.

The War Chest

The story of these bonds and their source of funding has been publicized on the internet for several years,

but the

story has never really gained much credibility, even though the bonds themselves have been at the heart of several

law suits and criminal proceedings. In trying to understand the origins of what seems at first glance to be a sort of

cold war internet-legend, history suggests that in September of 1991, George H.W. Bush and Alan Greenspan did

indeed finance $240 billion in bonds in a buyout of the Soviet Union as part of a broader program to end the Cold

War through an attack on the economy of the Soviet Union. More-over, President George H.W. Bush had initiated a

number of related covert operations to takeover certain sectors of the Soviet economy, and ten years later in 2001,

these programs had finally come back to haunt the U.S. policy makers. Most, if not all of these programs appear to

have stepped outside of the boundaries of the law. As a result, investigative agencies from Britain, Switzerland,

Russia, Kazakhstan and the Philippines were putting pressure on Congress and the U.S. Department of Justice to

open up the accounts in the banks used to finance these covert activities, which were being viewed as criminal

activities in foreign courts. Alan Greenspan, the Treasury Department and key banks in the U.S. and Europe were

being sued for gold-price fixing or illegal gold sales which appears to have it’s origins in the covert war chest used

to wage this war.

At the same time, the suits brought by the Holocaust survivors victims of the Marcos regime,

and the US Congress under influence of pro-Israeli lobbyists were putting pressure on the Swiss banking cartel to

open it’s bullion records to public scrutiny. Full disclosure by these banks during an investigation would have

resulted in a major exposure of U.S. Government complicity in some of the greatest financial fraud of the 1980s and

early 1990s as well as 50 years of gold bullion theft by numerous U.S. and British government agencies. Moreover,

investigation into these accounts would disclose a National Security secret known as the Black Eagle fund, and

virtually every covert operation since World War II. Bringing an end to these investigations and preventing this

disclosure was the sole objective for the destruction of the WTC and Pentagon.

These investigative and legal pressures began to accumulate in 1997, and in February 1998, Osama Bin Laden

declared his fatwa, and Atta started planning the September 11 attacks. To understand the decisions made in 1998

which brought about the attack on the World Trade Center, one must go back in history to appreciate the magnitude

of exposure these bankers and government officials faced. Ten years prior to the planning that Atta was beginning,

planning had begun for economic war on the Soviet Union. The source of funding for this covert war is traced to the

end of World War II, but it was not until 1986 did the size of that war chest make the 1991 attack on the Soviet

Union feasible. Understanding the source of that funding is absolutely critical to understanding why the World

Trade Center was destroyed in 2001.

Numerous sources have documented that at the end of World War Two, the treasury of the Japanese Empire was

discovered in the Philippines by a staff member of General Charles Willoughby, who was General MacArthur’s

chief of Intelligence. Then known as the Golden Lily Treasure, this mass of wealth had been accumulated by the

Japanese with over fifty years of its army pillaging