Saturday, November 13, 2010

9/11 an Enriching Business Plan

Putting aside the great loss and devastation to lives and families, one with no moral compass may easily see “9/11” as a tremendous business opportunity. “Corporate Cronyism” has created opportunities for men of means and political connections to high levels of government to conspire to create enriching opportunities for many stakeholders.
When the great banker Baron Rothschild said in the 18th century, "Buy when there's blood in the streets," he merely meant that anyone who had the means could snap up some big bargains in times of revolution and turmoil. Elevated profit opportunities are available when people are motivated by fear.
Through the following specific circumstances I will show how certain stakeholders profited from 9/11, and why 9/11 was a winning formula for a chosen few.
Twin Towers – WTC1 was 93% vacant, while WTC2 was 8% vacant, or an average of 50.5% vacancy for both towers on 9/11. Typically office buildings need to be 95% occupied to be relatively profitable. In addition, both towers had considerable asbestos fireproofing on the structural steel columns, beams, and decking undersides which necessitated removal. The previous owner of the WTC Towers was the Port Authority of NY. The “Port” conducted studies to remove the asbestos and demolish the two 110 story buildings that came in between 10 to 12 billion dollars. In conclusion the buildings had very poor occupancy, antiquated communications infrastructure, serious asbestos abatement issues which made them a perfect candidate for demolition.
Iraq Oil Reserves – Iraq has approximately 115 billion barrels of oil reserves making it 3nd only to Saudi Arabia and Iran in Middle East oil reserves. When Saddam Hussein nationalized the oil fields in 1972 and over 12 Trillion dollars in potential oil sales was taken out of the hands of major players such as BP and Shell. The UK’s Tony Blair with pressure from BP strongly supported taking back the nationalized oil fields. Today major oil companies are back in control thanks to the help of US military forces. Most of the US military bases are proximate to the oil fields.
Scrap Metal & Demolition Contractors - According to FEMA, more than 350,000 tons of scrap steel were extracted from Ground Zero and were hastily barged, or trucked to salvage yards where it was cut up for recycling. Four salvage yards were contracted to process the steel, sold for $120 ton instead of the going rate of $160.
Mass Media –Due to the drama, fear, and hysteria of this cataclysmic event, newspaper, magazine, television, and radio viewership increased, thereby increasing corporate sales of advertising. The major media are owned by General Electric, Viacom, Disney, Fox, AOL Time Warner, Cox, NY Times, Hearst, Gannett, and Scripps.
Propping Up the Dollar - In 2000 Saddam Hussein threatened to start selling oil for Euro Dollars instead of US Petro Dollars. This threat by Hussein was one of the major events that triggered the “9/11 invade Iraq” scenario. Other countries such as Iran and Venezuela would surely have followed suit with a change-over to trading in Euro Dollars that would have decimated the value of the American Dollar and caused untold economic hardships on the US.
Short Sale Options – One week prior to 9/11 there was an inordinate amount of Short Selling of AA, UAL, J.P. Morgan Co. stock. “Short Selling” is taking an option on a stock price falling, while having contracts in hand to sell at a higher price. The FBI did not disclose what hidden investors were involved in this very profitable economic move.
Major Insurance Proceeds – Larry Silverstein the major owner/lessee of the 3 WTC buildings received $500 million in net insurance proceeds from the Controlled Demolition of the buildings after paying off his obligations to “Port” and other stakeholders. The “Port” got back their original development investment of $370 million dollars approximately 10 times from their share of the insurance proceeds. Obviously netting approximately $3.4 billion was far better than having to pay out over $10 billion to demolish the two WTC “White Elephants”.
Homeland Security – There has been a tremendous increase in the sale of body scanners, CCTV systems, security service contracts, primarily in airports due to the alleged fears of potential terrorist activity. Some high level officials in government and related entities have been found to have heavily invested in security related companies.
Private War Contractors in the Middle East – The US has spent over $100 billion on mostly “No Bid, Cost Plus” contracts since 2003 in Iraq. The report, by the Congressional Budget Office, according to people with knowledge of its contents, will say that one out of every five dollars spent on the war in Iraq has gone to contractors for the United States military and other government agencies, in a war zone where employees of private contractors now outnumber American troops.
Unocal Gas Pipeline – The Trans-Afghanistan Pipeline being built from Turkmenistan to Pakistan and India is being led by Unocal a Chevron subsidiary formed by a merger of the two companies. It is necessary that the US military has hegemony in the region to secure the route of 1,084 mile, $7.6 billion venture.
Capture of Afghan Poppy Fields – It is now common knowledge that the CIA has been a yearly world trafficker of illegal drugs such as Heroin that is derived from the largest grower of poppies, Afghanistan. It has been estimated that the clandestine drug market run by the CIA, and laundered through major US banks such as Citibank, J.P. Morgan, Chase, etc. is in the neighborhood of $500 billion to $1.5 trillion. This movement of cash helps to stabilize the U Dollar while providing large fees to offshore corporations, banks, and Wall Street.
Increased Debt & Sale of Treasury Notes – A large quantity of treasury notes and debt goes through major international banks. Wars create an opportunity for the banking community to profit on any debt and monetary flow that results from increased expenditures.
Profit on Defense Stocks - Defense and security stocks have become more popular and more valuable. Examples: Lockheed Martin Corp., General Dynamics Corp., Boeing Co., BEA Systems, Raytheon, etc. have all nearly doubled since 2001, while the S&P 500 only gained 25%
Gold Speculation - Gold prices spiked upwards, from $215.50 to $287 an ounce, or 33% on London trading the day of 9/11.
Oil Price Speculation – Gas prices have risen approximately 48% since 2001. Some economists conservatively attribute $10 per barrel premium on oil prices as a result of 9/11. The top oil companies have recorded over $100 billion in profits as a result of increased oil values and the recapture of nationalized oil reserves.
Currency Arbitrage – The value of the US Dollar took a temporary plunge on 9/11, giving holders of foreign currencies such as the Pound Sterling, Euro, Yen, Saudi Riyal, Rupee, and Yuan a perfect opportunity to buy US Dollars at a discount and then resell them at an appreciated rate at a near later date.
Evidence of Corporate Fraud Destroyed – With the Controlled Demolition of WTC7, tenants such as the SEC and FBI had all the important records relating to the investigations of such fraudulent corporate players such as Enron, Worldcom, Tyco, etc. destroyed so that further investigation was brought to a virtual standstill.
In conclusion 9/11 may have been an economic and human loss for some, but in the big picture, the “Fat Cats” laughed all the way to the bank. Do you know any investors, devoid of a moral compass, who would be willing to invest in the next “False Flag” event?
You may visit Harvey’s Blog and leave comments at: http://harveysrantsraves.blogspot.com/

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