By Virginia McCullough © March 2000


Is this the telex (5 pages)  for the October Surprise $MULTIBILLION GOLD Payoff?

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President Ronald Reagan's first executive order, Operation Exodus, extended the stringent requirements of the Export Administration Act of 1979 and added strict enforcement for violations of the Act.  The choke hold would effectively strangle the vibrant economy created by the West Coast's high tech industry.

When it became apparent  that the order would  severely limit their marketing ability, the newly rich of Silicon Valley made their voices heard all the way to Washington D.C.  They were shouting, "We have the products.  Let us sell them in an unrestricted world market."

Quietly the giant corporations whispered in the ears of politicians, "Remember us -- we support the old slow technology used by the Pentagon.  The defense of the United States is at stake.  We have faithfully supported you; don't abandon us now.  Without government contracts,  these upstarts can't last; their technology can be acquired.  Just give us time.  We will catch up".

From the west came the siren song of Silicon Valley seducing the bureaucrats.  Like the thunderous waves of the Pacific Ocean breaking on the rocks of Big Sur, the tempting beauty of a new dawn relentlessly wore away the resistance of politicians sunning themselves on the sandy beaches of the Atlantic Ocean.  The magic of  Initial Public Offerings  (IPOs) rocked the tranquility of the New York Stock Exchange, creating thousands of instant millionaires attired like the rebels of the '60s.  A new, militant voice, not belonging to the military, emphatically told the entrenched government officials, "Give our industry our freedom and we will give you a new, vital economy".

The United States Congress listened.  The Congress would not approve Operation Exodus.  It is obvious that newly elected President Reagan knew of their decision.  Within days of taking the Presidential oath,  Ronald Reagan circumvented the will of Congress and issued his first executive order, Operation Exodus.

Who, then, had this President's ear?  The history of the 1980s tells the story.  Reagan's ear was owned by the military industrial complex.  Promoting myths such as Star Wars, scientists like Edward Teller appealed to Reagan's belief in the Apocalypse.  Rabid anti-communists convinced the executive branch of government that Russian missiles would soon rain from the skies over America.  The President's fears assured a  massive national debt in future years as the country spent billions for fanciful weapons to defeat a mythical enemies.  That debt would guarantee that Reagan's Vice-President, former CIA Director George W. Bush Sr.,  would be a one term president.  The battle cry now became "It's the economy, stupid!"

Has any citizen wondered how their newly elected President "gets up to speed" so rapidly  that he is able to take over the most important job in the world without missing a heartbeat?  The United States allegedly has an unrestrained media - why haven't they ever asked that question?  Why doesn't CNN do a twenty minute piece exploring that question?  Shouldn't A&E do a one or two hour special to explore that never addressed question?  Shouldn't every American want to know how these extraordinary men who are our presidents learn their job so quickly?

If the question is never asked, it is possible the answer might be that we do not have a democracy after all.  We might have a form of government that simply submits to the dictates of world politics by placing a different figurehead on America's throne as events dictate.  In the year 2000, as Bush Jr. seeks to be elected to Bush Sr.'s former position, it is time to ask the question, "Is the keeper of the flame  -- the gatekeeper of the secret government?"

President Kennedy's bloody assassination on the streets of Dallas in November of 1963 proved to the majority of Americans that no president is safe from the very agents and agencies sworn to protect him.  Presidents are isolated from the citizens that elect them and "protected" by people with their own agendas.  The President of the United States is probably the most venerable of all America's citizens.  Individuals who seek that position do so because they passionately want power and control.  If  they disclose the gatekeeper's secrets when elected, they find they have neither.

Assuming the keeper and the gatekeeper share and protect the same horrible truths, one must ask, "What was happening in the world in the 1970s that persuaded newly elected President Ronald Reagan to endanger the economy and well being of the nation he swore to protect and serve?
The following history of George Bush Sr. in the 1970s first appeared in an article in the Progressive Review during the 1992 campaign.  It can be read in its entirety on line at

George Bush Sr. had first been elected to public office in 1966 when  his close friend, Robert Mosbacher collected the money for his campaign by chairing "Oil Men for Bush".

In 1970 Bush ran for the United States Senate losing to Lloyd Bentsen, despite receiving $112,000 in contributions from Nixon's White House slush fund.

To keep George Bush Sr. in the public eye,  President Nixon named him Ambassador to the United Nations in 1971.

Returning the favor Bill Liedtke collected $700,000 in anonymous contributions for the Nixon campaign in 1972.  The contribution consisted of cash, checks and securities that Liedtke delivered to the infamous Committee to Re-Elect the President (CREEP) the day before such contributions became illegal.  Liedtke said that he did this as a favor for Bush Sr.

In 1973 George Bush Sr. is named GOP National Chairman and brings into the party far right supporters such as the Heritage Groups Council, an organization with a number of Nazi sympathizers.  Watergate tapes recorded by Nixon and his aide, HR Haldeman show that Nixon is concerned that Watergate might expose the "Bay of Pigs thing".  Nixon also speaks of the "Texans" and the "Cubans" and mentions Bush's friend "Mosbacher".   In another tape, Nixon decides following his re-election to get signed resignations from his whole government so he can centralize his power.  Says Nixon to John Erlichman: "Eliminate everyone, except George Bush.  Bush will do anything for our cause."

In 1974 Bush is named special envoy to China.                                          

In 1976 President Jerry Ford names George Bush CIA Director, his fourth political patronage job in a little over five years.  Bush   later claims this is the first time he ever worked for the CIA.  At his confirmation hearings, Bush says, "I think we should tread very carefully on governments that are constitutionally elected."

Bush holds first known meeting with Noriega.  Noriega starts receiving $110,000 a year from the CIA.

Noriega is found to be working for the Cubans as well, but he keeps his CIA gig.

Bush sets up Team B with the CIA, a group of neo-conservative outsiders and generals who proceed to double the agency's estimate of Soviet military spending.

Senate committee headed by Frank Church proposes revealing the size of the country's black budget --  intelligence spending that, in contradiction to the Constitution, is kept secret even from the Hill.  According to journalist Tim Weiner, Bush argues that the revelation would be a disaster and would compromise the agency beyond repair.  By a one vote margin the matter is referred to the Senate.  It never reaches the floor.

Chilean dissident Orlando Letelier is assassinated by Chilean secret police agents.  CIA fails to inform FBI of pending plot and of assassins' arrival in US.  CIA claims the hit was the work of left-wingers in search of a martyr.

Bush writes internal CIA memo asking to see cable on Jack Ruby visiting Santos Trafficante in jail.  In 1992 Bush will deny any interest in the JFK assassination while CIA head.

Bush claims nuclear war is winnable.

In 1977 Philippine dictator Marcos buys back Robert Mosbacher's oil concession.  Mosbacher claims he was swindled.  Philippine officials say they never saw any expenditures by Mosbacher on the project.

On August 7, 1977 CIA director Stansfield Turner called a meeting of his people and announced that the Agency had not reduced proportionately now that the Vietnam War had ended.  He announced deep cuts that would target more senior than junior officers.  The pink slips went out on October 31, 1977.  Angry rebuttals by the DDO employees,  to the "Halloween Massacre" at Langley were echoed by the media who claimed that Turner was striking at the heart of the service, that he was jeopardizing its covert action capability and cruelly dumping patriotic Americans.

In 1978 Bush, Mosbacher and Jim Baker become partners in an oil deal.

That same year a Washington Post article by Bob Woodward and Walter Pincus states: "According to those involved in Bush's first political action committee, there were several occasions in 1978-79, when Bush was living in Houston and traveling the country in his first run for the presidency, that he set aside periods of up to 24 hours and told aides that he had to fly to Washington for a secret meeting of former CIA directors.  Bush told his aides that he would not divulge his whereabouts, and that he would not be available."  Former CIA chief Stansfield Turner denies such meetings took place.

On the other side of the world Iran was experiencing a political upheaval that would soon rock American politics.  During the Presidency of Richard Nixon military support increased for the Shah of Iran, whose position of power was shaky.  The CIA felt it was essential to maintain the Shah in power.  When Jimmy Carter took office in 1977 massive Muslim religious demonstrations were taking place and it was soon apparent that the Pahlavi throne would fall.  During 1978 into early 1979, riots took place in several Iranian cities.  Ultimately this revolution would make Ayatollah Hominy the head of the volatile country of Iran.

The Shah of Iran and his family left Iran on January 16, 1979, originally seeking refuge in America.  President Carter declared that the Shah and his family would not be welcome in the United States.  However, on Valentine's day (2-14-79)  revolutionary forces in Tehran overran the United States embassy in Tehran and held seventy employees prisoner for two hours before releasing them.  Quickly the United States lost access to Iranian oil and Iran canceled some $7 billion of uncompleted arms contracts.  On February 25, 1979, the US State Department evacuated the families of all embassy personnel and urged any Americans remaining in Iran to leave as soon as possible.  

President Carter made no attempt to restore the Shah to his throne and he formally recognized the new Islamic government.  The Iranians, however, did not believe that the United States would abandon its long time friend, the Shah.  By now it was public knowledge that the Shah was very ill and President Carter allowed the Shah to enter the US for medical treatment.  He entered the United States on October 22 and survived gall bladder surgery on October 26, 1979.

Iranian students mounted a massive protest, demanding that the United States return the Shah and his multi-million dollar fortune to Iran.  Tensions increased and on the morning of November 4, 1979, exactly one year before the United States Presidential election over 3,000 students stormed the United States embassy in Tehran once again and took the sixty-six people inside hostage, in the name of Khomeini.    

In the middle 1970's, the CIA decided to increase its power.   In retaliation for Turner's Halloween Massacre a decision was made to place CIA operatives in control of American Indian Reservations as a means of laundering money, transporting drugs, and controlling arms sales and biological weapons.   In other words, the CIA wanted to build its own country within the United States and control its own government, not unlike the Vatican operates under the Pope in Italy.   The first such reservation targeted was the Cabazon Indian Reservation located in Indio, California.  The man chosen to control this reservation was "Dr. John Philip Nichols.  A book about the Savings and Loan scandal called "Inside Job" by Stephen Pizzo, Mary Fricker and Paul Muolo describe Nichols as follows (page 304 of the hard copy edition): 

At San Marino Savings in Southern California we heard about a major borrower, G. Wayne Reeder (who also attempted a couple of failed ventures with Herman Beebe), meeting in late 1981 at an arms demonstration with Raul Arana and Eden Pastora.  Contra leaders who were considering buying military equipment from Reeder's Indian bingo-parlor partner, Dr. John Nichols.  Among the equipment were night-vision goggles manufactured by Litton Industries and a light machine gun.  Nichols, according to former Reeder employees and published accounts, had a plan in the early 1980s to build a munitions plant on the Cabazon Indian reservation near Palm Springs in partnership with Wackenhut, a Florida security firm.  The plan fell through.  Nichols was a self-described CIA veteran of assassination attempts against Castro in Cuba and Allende in Chile.  Authorities said he was a business associate of members of the Los Angeles Mafia.  He was later convicted in an abortive murder-for-hire scheme and sentenced to prison.   

The take over of the Cabazon nation did not go smoothly.  A member of the tribe who had been appointed by Nichols as head of security, Fred Alvarez, soon began asking embarrassing questions of his CIA boss.  When he did not receive any answers and the strange happenings on the reservation continued, Alvarez began going through Nichol's CIA files and liberating paperwork.  He took the papers to the media and told them, "As I meet with you, I am a dead man."  After several attempts on his life, Alvarez and two of his friends were tortured and killed in June of 1981.

Alvarez's parents gave this author a telegram [click the five clicks at the beginning of this article to view all five pages]  in October 1991 following the execution murder of investigative reporter Joseph "Danny" Casolaro who had also been investigating the CIA connections to the control of Indian reservations.   In an operation code named "Goldfinger 007" huge amounts of gold was being moved around the world.  This telegram, effective July 27, 1979, conveys gold located in the United States and elsewhere valued at over $8 billion.  Named as the operatives involved in the gold transfer are Dr. John Philip Nichols and Mr. John Macomber of the first National Bank of Boston.  Macomber would later become the President of the Export/Import [Ex-Im] bank.  He is a close friend of George Bush Sr. and Bush's friend Robert Mosbacher. 

Could this Goldfinger 007 gold transfer be the reward sent to Iranian revolutionaries to TAKE the American hostages and set up the operation later known as "The October Surprise" which was the Bush/Casey operation that defeated President Carter?   Could the CIA have paid a foreign nation in gold to set up a coup that would eventually see its former director elected President of the United States? 

Virginia McCullough © 2001