STATEMENT OF MICHAEL RUPPERT
FOR THE INTERNATIONAL FINANCE CONGRESS AT THE BOR PRESIDENTIAL
HOTEL AND RETREAT MOSCOW, RUSSIA -- DELIVERED
MARCH 7, 2001
March 12, 2001
March 7, 2001 I was asked by the Chairman of the International
Financial Congress, Igor Tolstoshein, to make a 10 minute
presentation to an assemblage of approximately 40 of Russia's
top economic and financial experts. Also included in the
group were experts from Germany and the Maylasian Ambassador
to Russia, His Excellency Datuk Yahya Baba. I had traveled
to the Congress at the Bor Presidential Hotel and Retreat
not planning on speaking and had not prepared a written
statement in advance. My presentation therefore was not
made from a written text but rather from some hastily assembled
There were only individual
translators available that day and I did not tape record
my remarks. The following is the most faithful recreation
of my statement that I can make relying upon the original
notes I made just before speaking.
A full report on the Congress
and my evaluations of the current Russian situation will
appear in the March 31 issue of my newsletter From The
Wilderness. That newsletter is available to paid subscribers
only and may be subscribed to through our web site at www.copvcia.com.
I am happy however, to share this freely with so many of
my newfound Russian colleagues and concerned fellow residents
of this very troubled planet. I thank all of the Russians
I met on this trip for their wonderful hospitality, courtesy
and genuine concern in these perilous times. - MCR]
Thank you and good afternoon.
I would like to thank the Chairman for this opportunity
to speak to this august group and begin by saying that I
am not an economist or a financial expert but rather a former
police investigator turned journalist. My newsletter, From
The Wilderness is now read in 16 countries and by 15
members of the U.S. Congress as well as the intelligence
committees of both Houses of the US Congress. We are also
read by professors at 11 universities in the US, Canada
and Great Britain. We have a free research web site at www.copvcia.com.
It is an honor to be in Russia
as my mother was, as a cryptographer, connected with operations
of the US Secretary of State Cordell Hull who visited Moscow
in October 1943 to discuss matters regarding the war against
I have spoken out for more
than twenty years about the CIA's involvement in the international
drug trade. While in Russia I have listened closely now
to outstanding presentations by many experts and if I have
anything significant to add to this discussion it is to
agree clearly with other opinions I have heard expressed
that the study of economics and international finance, if
it is to be effective, must be connected to political and
social undercurrents. A mere study of numbers and graphs
often leads to erroneous conclusions because it does not
take into account the unseen events which truly guide and
determine the economic symptoms which are then measured
This congress has focused
on what many here believe is the imminent collapse of the
U.S. dollar. I do not agree with this concept and I have
heard others here express the same sentiment. While I do
not think that the collapse of the US dollar is imminent
I absolutely do believe that the collapse of the US stock
markets is. Too many countries around the world rely upon
the US dollar as a reserve currency. This fact alone, I
believe, would prevent the dollar's collapse. However, as
all of the experts here have so clearly pointed out, the
US economy is in serious trouble and I believe that the
US stock market is in immediate peril.
In order to understand this
it is essential to study the role of money laundering in
international finance. As much as $200 billion US has been
looted out of Russia in the last ten years and much of it
laundered through US financial institutions like the Bank
of New York. I wrote about this in the fall of 1999. But
to place this in context it is necessary to note that in
1994 the UN estimated that $440 billion a year in illegal
drug money was moved through the world's banking system.
Just 18 months ago "Le Monde Diplomatique" estimated
the annual drug flow at $500 billion with the total annual
proceeds of criminal activity amounting to $1 trillion US.
And just two weeks before I came here the "San Francisco
Chronicle" cited the International Monetary Fund as
stating that the amount of criminal money moving through
the world economy is $1.5 trillion US each year.
Criminal activity and money
laundering has become the world's largest free enterprise
and it is also determining political, economic and military
action around the globe. $1.5 trillion is larger than every
national GNP except for the five largest industrial economies
in the world. Now I have heard the experts here cite truly
astounding figures like the $30 trillion in derivatives
in the US market and the overall values of the world economy.
To compare $1.5 trillion and state that this amount is not
the most important component of success or failure is to
miss the point entirely.
If two race cars are capable
of doing 240 mph the race will be A tie. No one will win.
The world economy is a fierce competition for capital, liquidity,
markets and, perhaps most importantly, currency. Therefore
the race car capable of doing 241 mph is the one that will
win the race. That $1.5 trillion a year of highly liquid,
low cost, unrestricted capital is what is determining the
results in the present day world economy. This is because,
as noted by former US Assistant Secretary of Housing Catherine
Austin Fitts, "Those with the lowest cost of capital
win." Winning, however, comes with a heavy price. I
have confirmed that even now the US government works directly
with some of the biggest drug dealers in history.
I wholeheartedly agree with
Russia's brilliant economist Michael Khazin and others who
state that the US engages in serious long term planning
and manipulation of world events. As an example I will cite
the fact that in June of 1999 the Chairman of the New York
Stock Exchange, Richard Grasso, traveled to Colombia and
met with leaders of the FARC guerillas who control a third
of that country and who have acquired billions of dollars
from taxation of the drug trade. Grasso's request was that
the FARC rebels invest their drug profits in Wall Street.
This was necessary in order to continue pumping cash into
the already precarious investment bubble in America that
had also been partially sustained by the systematic looting
of Russia from 1993 to 1999.
The FARC guerillas refused
to give Wall Street their money.
A year and half later the
United States is implementing another Vietnam conflict which
is just now commencing and which is an absolute necessity
to prevent a total collapse of the US economy. That conflict
will not only suck capital out of Colombia it will open
up oil rich lands in rebel territories to US drilling and
it will create thousands of displaced persons who will become
low cost labor for multi-national corporations seeking to
build factories in South America.
As the Euro seeks to
establish itself as an alternate currency to the US dollar
- a healthy competition that I believe would diversify and
strengthen the world's economy - you here in Europe should
take note of leaders like Venezuela's Hugo Chavez who has
opposed America's "Plan Colombia." Just recently
the European Union voted unanimously, with one abstention,
to oppose this new Vietnam War. If South America is to resist
this war it will need strong economic support to pull away
from US domination and the influence of the Central Intelligence
This brings to light what
I consider to be an emerging determinant of economic and
political realties in this era of globalization - geography.
I have noticed that in recent years the drug trade is following
businesslike principles that tend to reduce transportation
and distribution costs. The American drug market is now
predominantly supplied by cocaine and heroin from South
America. Europe and Russia have been increasingly supplied
by heroin from the Golden Crescent in Afghanistan and Pakistan.
And the Asian drug market is receiving most of its supplies
from Southeast Asia. We are seeing less and less large scale
smuggling over long routes and a trend toward efficient
and more cost-effective management of the trade that produces
liquid, hard currency.
Just before coming to this
conference I read in the Associated Press, Agence France
Press and other reliable sources that the Taliban has recently
eradicated most of its 3,000 ton opium crop in Afghanistan.
If true, I view this as a form of economic warfare against
Russia because it would drive opium production more into
Southeast Asia and Colombia. However, I now suspect that
this will result in a shift of opium production to the
under the Kurds which will see an increase in smuggling
through Armenia, Georgia, and Azerbaijan. I should note
that both the American Vice President Richard Cheney and
the designated Deputy Secretary of State Richard Armitage
are members of the US-Azerbaijan Chamber of Commerce. Such
a move would have the effect of drastically shortening
routes and costs into Western Europe and bypassing unstable
areas of the Balkans.
I have received additional
reports that Uzbekistan is now awash in the opium poppy
and, as in the US with the CIA, that Russian military and
intelligence agencies facilitate the trade as a means of
protecting access to hard currency. The point here is not
that the US it totally evil or the only country doing these
things. But the US is far and away the most advanced nation
when it comes to the use of such methods to achieve superiority.
As Khazin has noted the US and Britain and Germany started
the conflict in Kosovo in 1999 to stave off a collapse of
western markets following the Asian collapse of 1997-8.
Now Colombia is a last-ditch effort to protect the US markets
and European opposition is jeopardizing that plan.
This is one of the reasons
that I believe that as long as European countries play in
a game created by and controlled by the US, and in which
the US holds back critical information and unseen trump
cards, the results will always be the same. That is one
reason why I totally favor decriminalizing drug use throughout
I am not anti-American, I
love my country. But I see it succumbing to the same level
of criminality that now eats at the rest of the world. We
have talked about the looting of Russia but that same looting
has begun in the US. Last year $59 billion US was looted
from the Department of Housing and Urban Development. That
money disappeared into US markets and into offshore havens.
Perhaps trillions more is missing from the US Department
of Defense. We looted our Savings and Loan Institutions
in the 1980s and we now stand poised to loot our Social
It has become a "search
and destroy" world economy in a climate of increasing
economic disparity and this can only lead to apocalyptic
results. A snake eating its own tail is not nutritious.
That is why I believe that a healthy Euro, using different
strategies for wealth creation, can bring some sanity back
into the picture. For in the current modality the only inevitable
course is for world governments to seek to "out-crook"
each other in competition for the cheap capital afforded
by criminal activity. This can only end in war.
As an example of the highest
form of criminal activity imaginable I would ask you to
look at the depleted uranium scandal in Europe. This was
not a matter of US imperialism or recklessness. This was
a matter of corporations that produce nuclear waste seeking
to boost their stock values by increasing net profits. As
a result they sold a product they knew to be contaminated
with transuranics and plutonium and U-235 to the nations
of Europe without telling them and, as a result, portions
of Kosovo will be radioactive - forever. This does not address
the horrible carnage in Iraq, many times greater than Kosovo,
where thousands of children are dying of birth defects and
leukemia and the southeastern portion of that country will
also be uninhabitable virtually forever.
The first thing that our Chairman,
Igor Tolstoshein, said to me when he picked me up at the
airport was, "Why is President Bush uniting all of
Europe?" His observation was most perceptive. As a
matter of defensive reaction to increasing economic exploitation,
Europe is indeed uniting in unimagined ways as Germany invests
in Russia and Russia enters into agreements with Germany
and France for upgrades of the MiG 29. Indeed, I again strongly
concur with Michael Khazin that the WTO and globalization
will fail as the world retreats into three dominant economic
spheres of activity: The Western Hemisphere, Europe, and
What is most telling here
is a recent quote by U.S. Senator John McCain as the United
States strenuously opposed the creation of a European Union
Rapid Deployment Force. In discussing NATO he said, "The
issues that confront us go to the very core of our existence
as an alliance. Fundamental questions regarding the future
of NATO stand before us. I am afraid that our geographical
divide is increasingly becoming a functional one. Our perspectives
In order to respond to this
crisis what is essential is that the world find new ways
of creating wealth that are beneficial rather than destructive.
I refer this Congress to the web site of former U.S. Assistant
Secretary of Housing and former managing Director of the
Wall Street investment bank Dillon Read, Catherine Austin
Fitts. She is a true innovator in alternative means of wealth
creation and she has been my greatest tutor on matters of
economics and fiscal policy. Her web site is at www.solari.com.
I regret that she was not at this Congress. But she is very
accessible and eager to help create a safer, healthier and
more profitable world. She has a profound understanding
of American political economics and a wealth of information
to offer those seeking creative solutions.
I would like to thank the
Chairman for this opportunity to address this body and conclude
by saying that I am an optimist and I believe that the world
will survive these impending challenges even though I am
afraid that there will be some serious dislocations before
the crisis passes.
Michael C. Ruppert Publisher/Editor "From
The Wilderness" www.copvcia.com
[A FULL REPORT ON THE MOSCOW CONFERENCE
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