A Nation of Sheep Will Beget A Government Of Wolves

When Injustice Becomes Law, Resistance Becomes Duty - Thomas Jefferson

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Catherine Austin Fitts On Alex Jones, 8.24.2010

(Editor’s Note: Strap-in folks; this is going to be a very merry little ride through the labyrinth that started with a simple “pay attention” set of videos from Alex Jones and Catherine Austin Fitts.)

Meet Catherine Austin Fitts, a former HUD assistant secretary, investment banker, and entrepreneur who holds a MBA from Wharton and no longer walks on the dark side. She is also the president of Solari, Inc., managing member of Solari Investment Advisory Services, LLC, and publisher of the Solari Report. (Source: Wiki)

I heard Catherine’s name for the first time two weeks ago from a fellow patriot who was surprised that I did not know about Catherine’s accidental discovery of how narcotics re-investment dollars travel through the financial food chain destroying entire communities in what can only be described as ‘ethnic cleansing’.  Stop for a moment and think about the un-taxed profit margin on the illegal drug industry versus the regulated and taxed profit margin on legitimate products. Who has more money to spread around to make their agendas happen? (More about Catherine and narco dollars after her interview with Alex Jones.)

She has given numerous interviews over the years, and she covers becoming self-sufficient in preparation for the ‘coming global disasters’.  This a three part interview totaling 39 minutes.

Part 1:

Financial Coup d’Etat

Part 2, Food:

FDA uses massive egg recall to push for egg pasteurization

S. 510: FDA Food Safety Modernization Act

Part 3, Water, and how do we reduce our interaction and dependence on the big corporation-run world in order to set up new networks that will help us survive:

I am still reading article after article about Catherine’s targeting by the government because of what she had discovered with software that tracked government funds through communities.  What follows is a piece that she wrote in 1999 during the course of the 18 audits and investigations into her investment firm.  After that is an interesting piece, “20 Questions“, with interesting information about the drug dollars moving through our financial system.  That of course leads to 9.11, WTC7, and the Secret Service among other organizations.

From “From the Wilderness“:

First published in 1999 by Catherine Austin Fitts:

I was ten years old when the combined action of HUD housing investment and heroin trafficking destroyed my West Philadelphia neighborhood. The combined real estate and drug play destroyed the equity in our homes and businesses. Many of us left. Those who stayed were embroiled in the increasing stress of what happens as neighborhoods deteriorate into crime and decay. I decided that I would learn how money worked. I was too young to understand fully how the combination of HUD investment and drugs could move control and ownership from the many people who lived in a community to a few people who lived outside the community.   — C.A.F.

*   *   *   *   *

I’m an investment banker. In the eighties I was a Managing Director and member of the Board of Directors at the Wall Street investment bank Dillon, Read & Co., Inc. I managed the firm’s large municipal and government clients. My projects included the financing of billions of dollars of improvements in New York City’s subway, bus and commuter rail systems. I also organized the financing for hundreds of millions in renovations to the infrastructures of New York and New Jersey. I regularly handled hundreds of millions of dollars in transactions.

I also helped to make tens of millions of dollars in profits for my firm and I raised tens of thousands of dollars for the George Bush Presidential campaign in 1988. Nicholas Brady, who became George Bush’s Treasury Secretary, had been my partner and boss at Dillon Read.

I was a Wall Street insider and a political insider – or so I thought. I was successful at Dillon Read because I created new investment models that helped ordinary people while making a profit. I thought “outside the box.” When Iran-Contra came and went I was oblivious. I had no idea about the drugs. It never entered my mind. Yet today I am convinced that the illegal drug trade, the enormous cheap capital it generates, and the CIA’s role as enforcer/protector for the profits of that trade is a dominant factor in the economy of this country. It is a factor, which is destroying the entire American culture and is utterly out of control. As an investor and banker and as a former Cabinet level appointee, I tell you this is true.

My evolution came slowly. In 1989 I was named Assistant Secretary of Housing-FHA Commissioner under Housing and Urban Development Secretary Jack Kemp. I managed  $300 billion of mortgage insurance, mortgages and properties of the Federal Housing Administration and, as Commissioner, I advised the Secretary on another $1 trillion of mortgage financing. I was fired by Jack Kemp in late 1990 because I would not go along with the questionable political practices, which seem to be built into HUD’s machinery and purpose. But still I did not see the bigger picture.

In 1990, after leaving HUD, I started my own investment company, The Hamilton Securities Group, and I devised new and creative ways to save taxpayers billions of dollars. In 1993, Hamilton secured contracts with HUD through Secretary Henry Cisneros. Hamilton saved taxpayers billions of dollars by taking defaulted HUD housing mortgages, repackaging them and auctioning them on the private market. Hamilton began putting wealth back into inner city projects by hiring women living in HUD housing and teaching them how to use computers to build data bases on how money works in 63,000 neighborhoods throughout America. Hamilton started a data processing company with these women in a HUD project (Edgewood Terrace) in Washington. The women who lived there earned stock in the company. The company made money and proved the concept of what on-line access in communities could do to build jobs and businesses.  We used the success of that effort to persuade HUD to fund computer learning centers in other housing projects. Hamilton was extremely successful. We made millions and we saved the government billions.

Fulfilling my childhood dream, Hamilton also created new software and money management tools, which were, for the first time ever, able to map down to the neighborhood, exactly how HUD and other federal money worked, who profited when loans defaulted, and how money came into or left a community. For example, we were often able to see where HUD was spending $100-250,000 per unit on apartment buildings when there was single family housing available within walking distance for $25-50,000.

Secretary Cisneros had been extremely supportive of our work. We had unrestricted access to rich quantities of government financial data that was supposedly public but hard to understand. We were translating that into useable information so that people in any community could see how the money flowed through their neighborhood. We helped HUD get increasing amounts of data up on its web site. An unforeseen side effect for the women at Edgewood, and for Hamilton, was that by seeing clearly how the clean money worked, we also began to see how the dirty money worked.

As an investor for more than twenty years, I believed that it was actually more profitable for people to own their own neighborhoods and businesses and to know exactly how the money worked. The MONEY MAPS we made were so simple to understand that they looked like comic books.

As it turns out we mapped a great deal more than we knew.

In 1996, as reporter Gary Webb was busy writing a series of stories connecting CIA and the Contras to the crack cocaine epidemic in Los Angeles, I was busy using the money maps in a way that would help people move people from government subsidies to home ownership and entrepreneurship.

I was also advocating that U.S. government investment in communities should be subject to the same public disclosure rules that private companies are obligated to follow under the Securities and Exchange Commission Rules. If you are a shareholder in a company, that company is using your money. The law requires that they use your money legally and that they do their best to protect your money and make you more. To earn money, and to do so in a fair, honest and competitive way, federal and state laws require companies to report performance and key transactions to you, the shareholder. Every citizen is a shareholder in the government. If governments worked like they require corporations to work, they would be required to report to you, in the sunshine, exactly how the money was working, in your neighborhood, and you could either approve – or disapprove of the fairness and effectiveness of that, based upon your understanding of your own needs. That is very threatening to those who have used agencies like HUD as a trough to pay off political cronies.

On August 1, 1996, I gave the keynote address at a Neighborhood Networksconference in Boston, Massachusetts to 500 owners, managers and tenants in private HUD housing.  As part of the speech I showed a slide of one of our money maps of Los Angeles. As I put the slide up I made the following statement:

One of the products that has been most successful for the first data servicing sites, Edgewood Technology Services, has been “geo-coding” databases and mapping. I wanted to show you this map; it’s up on the World Wide Web. This is a map of Los Angeles. Can anyone figure out where south central LA is from looking at where the HUD properties are on this map? This is the same thing as the Washington DC map I showed earlier. The little red dots are single family properties that were financed by (now) defaulted HUD-held mortgages. This map was geo-coded and designed and programmed by a woman who, four months before, had been on unemployment compensation and is a tenant in HUD housing”

If you compare this map with the fact that Freeway Ricky Ross – the crack cocaine kingpin described in Gary Webb’s Dark

Alliance was known for buying up real estate along the Harbor Freeway and selling drugs throughout this exact area – the mathematical correlation is staggering. Every dot represents a HUD mortgage where the taxpayers lost money in a defaulted FHA loan and where somebody else bought the property for pennies on the dollar. Most of those loans defaulted as the crack cocaine epidemic ravaged Los Angeles. The taxpayers bear the costs of not only the defaulted mortgages, but also deterioration in property value, the crime, and ultimately the depopulation due to very expensive prison warehousing and welfare.

Exactly who bought and traded in properties throughout this area should be the subject of congressional hearings looking into corrupt HUD practices from the period and continuing to this day. I suspect that many of the same players connected to the Savings and Loan scandals, who have also been tied to Iran-Contra and CIA’s drugs will surface yet again. Demographically it is also easy to see now that the racial composition of South Central has changed radically and that African-Americans have been geographically and politically fragmented as, I believe, an intended result. Their political power has been weakened.

Just days after showing this first map, I received a subpoena from the Office of the Inspector General of HUD asking for extensive data and records from Hamilton. Suddenly, the loan sales and Hamilton were under investigation. The HUD IGÕs actions were doubly surprising given their intimate involvement in and positive feedback about the loan sales program and because a HUD OIG audit team had just finished an audit of the loan sales program and had informed our project manager and HUD that our performance was excellent and there were no problems whatsoever.

At the same time, we got calls from a team of reporters from US News & World Report. They had been assured “at the highest levels” of the HUD Inspector GeneralÕs office that we were guilty of criminal action and that I and would soon be indicted. The recent favorable audit disappeared. Investigators started doing interviews where they did more seed planting than information gathering.

The “investigators” at HUD started suggesting to reporters that bid rigging had occurred in the loan sales. This was just after members of the HUD IG audit team had actually sat in on one sale, and concluded that bid rigging was impossible. They had also concluded that there was no way that “rigging” could have taken place because in a sealed-bid auction, you cannot favor one bidder when all bidders have access to the same information. That audit report was suppressed while the IG investigators pushed the exact opposite notion to reporters.

On August 10, Bob Dole announced Jack Kemp as his running mate. Meantime, the Republican appropriations committee, chaired by Republican Congressman Jerry Lewis of San Bernardino, gave Susan Gaffney, the HUD IG a large appropriations increase for her program Operation Safe Home, which targeted black communities for visible media “wag-the-dog” roundups of drug offenders. At the same time, our model for computer learning and data processing by people who had a stake in the company that did the work was adopted by Unicorp. Unicorp is the Department of Justice private business that markets prison labor to federal agencies.

Suddenly, the black people who were apparently not smart enough to do database and software development near their children and parents were more than competent enough to do it in prison. The prison investment boom was taking off, fueled by new and longer mandated sentences. We at Hamilton felt like we were walking around with a big bullseye on our back because we wanted the communities of America to know what we knew, which was how to make maps that tracked the money flow in their own home towns.

I was not the only one dealing with Inspector General inquiries. The HUD officials working with me were also inundated with an investigation marked by leaks and dirty tactics. The former Deputy Assistant Secretary for Multifamily at HUD, Helen Dunlap, was one of the people targeted. She was from California and had previously run the California Housing Partnership. She had lots of experience in real estate and community development in Los Angeles. Gary Squier, the Housing Commissioner of LA, on loan from Los Angeles, who was not involved in mortgage sales with Hamilton, nonetheless found himself dealing with similar probes from the HUD OIG. He was later to be turned down for a position by the White House despite impeccable credentials. No one could figure out why.

Suddenly I was persona non grata to long time friends and business relations in and around the government. I believe the leak campaign was far more sophisticated than something the HUD Inspector General could or would do on her own. It appeared that major economic and political powers had ordered that Hamilton be destroyed. More importantly, they wanted the evidence of what we knew – the maps – destroyed. That is also why, to this day, we believe the Federal government has destroyed many, but not all, of our tools and databases.

We didn’t realize it at the time, but I am now convinced that in the summer of 1996, our software and mapping techniques uncovered evidence of ethnic cleansing on Los Angeles. Hamilton’s map revealed that one of the most significant effects of the crack cocaine epidemic was that black homeowners, faced with payments on unlivable and unsellable properties, simply defaulted and fled the city to get away from the shootings and the drugs. Those properties: industrial, residential and commercial were scooped up for pennies on the dollar. Wouldn’t it be fascinating to know who bought the properties and how much money has been made on them since?

Thanks to people like Gary Webb, Peter Dale Scott (Cocaine Politics), Alex Cockburn (Whiteout), Mike Ruppert, brave DEA Agents like Celerino Castillo – and now to the CIA’s own reports  – we can prove that the CIA knew full well what it was doing. And, as is his particular gift, Mike Ruppert, who gives us permission to see the obvious, has established that blacks were targeted by CIA and that the people who control our intelligence agencies are the same ones who control our economy and Wall Street. Mike has taken great pains to document these things in previous issues of From The Wilderness.

ETHNIC CLEANSING IN LOS ANGELES

Ethnic cleansing is a bit trickier in South Central Los Angeles than it is in South Central Europe. It is essential in a “democracy” to have people do it in a way that makes it look like they’re “doing it” to themselves. You need a socially induced suicide.

So how do you get people to commit suicide? You make it very attractive for their children to make money doing something illegal. Then you arrest them for it in a very visible way (Remember the battering rams and armored cars?).  You design stories to make people blame themselves for what has happened. This is how branding works. Pepsi = tastes good, Black people = cause illegal drugs and crime.  Support all this by a national media owned by defense contractors and other corporate interests. That way the nightly news has lots of moneymaking incentives to cover HUD OIG sponsored drug raids in black communities rather than doing a story on CIA drug trafficking.

The most efficient ethnic cleansing is self-financed or, better yet, profitable. Drugs and alcohol are excellent tools toward this end, especially when they are combined with easy access to guns. Sell large amounts of addictive substances to a group of people in an area you want to take over, then use the cash flow to buy up their homes and commercial real estate for 10 cents on the dollar, without much competition, while you enjoy the full value of their cash flow. You can then afford the long holding period required to make the land profitable again after the cleansing period is over.

I believe that if the Federal government would make citizens’ data (and it is our data) available, instead of trying to suppress it, it would prove that taxpayers are losing money to fund ethnic cleansing while the people in South Central LA are losing their lives.  And I believe that it was the effectiveness of our maps which threatened to expose the deeper financial agendas of the eighties. I believe our current model, the Solari Investment Model,  (www.solarivillage.com) which I am still developing, may well tie Iran-Contra, The Savings and Loan Scandals and the HUD scandals of the late 1980s into one big economic package designed to benefit a very few. The way to start to do this is to look closely at all the government investment, credit and regulations in Los Angeles since 1980.

Our maps suggest to me and others that the crack cocaine epidemic, created by the CIA was, I believe, just as much a program of ethnic cleansing and land grabbing economic warfare as it was about a bunch of rebels in Central America who were notthe equivalent of our Founding Fathers. But this kind of ethnic cleansing was hard to contain and it spread to other races and classes. It reached the rural and suburban neighborhoods of places like Iowa, Ohio and Tennessee. By the end of the 1980Õs it had reached all my friends and relatives who listen to Rush Limbaugh, voted for George Bush and donated money to Oliver North – not knowing that, according to CIA’s own reports, the networks he controlled were the key to the supply of drugs flowing to their kids and communities.  As Michael Ventura once wrote, “We all live in the South Bronx now.” White families all across America were hurt by drugs and violence and their pocketbooks also got drained, even as the media reinforced the notion that drugs were a black problem.

MAP SHOWN BY C.A. FITTS AT BOSTON HUD CONFERENCE – 8/1/96

© Copyright 1999. From The Wilderness Publications

Click To Enlarge

MOST OF THESE HUD/FHA SINGLE FAMILY LOANS DEFAULTED BETWEEN 1982 AND 1990.

THE HARBOR FREEWAY, WHICH GAVE “Freeway” RICKY ROSS HIS NAME, IS THE VERTICAL LINE RUNNING STRAIGHT THROUGH THE CENTER OF THE MARKS COVERING SOUTH CENTRAL

After the 1996 election, Secretary Cisneros was asked to resign from HUD. The choice of Cisneros’ successor seemed strange and somehow connected to Hamilton’s predicament. The Afro-American mayor of Seattle was widely considered to be a shoe-in. After the White House floated his name, another investigation by the HUD OIG into possible misuse of HUD monies in Seattle caused him to be dropped. Two days later we were assured that an Afro-American woman from Los Angeles, Yvonne Braithwaite-Burke, was the President’s leading candidate. Then suddenly, she disappeared from the radar screen and Andrew Cuomo was announced with surprisingly strong bipartisan support for someone with such a partisan history.

Cuomo moved into the Secretary’s office at HUD from his then current position as Assistant Secretary for Community Development and Planning. Rumors started to float around the’HUD networks about minorities and people sympathetic to minorities being moved out. Meantime, the new Secretary made it clear that his top priority was enforcement and it appeared that the Secretary and the OIG were going to compete for an ever-growing budget via media-worthy enforcement actions. So, then came the Urban Fraud Initiative and increased funding for Operation Safe Home, targeting tenants, real estate owners and managers in black communities. At the time, we made no connection between these actions and the promotion of prison privatization by Vice President Gore’s National Performance Review. New Federal sentencing guidelines helped increase black inmates to approximately 50% of a rapidly expanding prison population. All this at an extraordinary cost to taxpayers.

As the audits of Hamilton continued, forcing us to spend hundreds of thousands on legal fees, Secretary Cuomo and the Inspector General’s staff, who were later to withhold $2 million in payments, became obsessed with seizing our data and software.  This was software we were planning on giving away via the web! The critical issue from October 1997 through the following March seemed to be – our knowledge! In October, great emphasis was placed on our returning all of our HUD databases, including those that were supposed to be publicly available, and certifying that we had done so. In the following months, the HUD OIG tried to seize all of our documents, including originals, with no basis in law. After demanding physical access to our computers, government employees made back-ups of our data which, whether intentionally or not,  seriously damaged it.

And no one has yet officially accused us of any wrongdoing. We were, and are to this day, only being investigated. It is clear to us that the intent of this campaign was to drive the company into bankruptcy. The leak campaign against the company and me has since reached new heights of absurdity. As the HUD IG keeps assuring the media that that I am guilty of criminal violations they now have investigators focusing on my sex life!  Worse still, HUD IG agents recently showed up at the home of my 72 year old uncle with a subpoena for records of a family owned farm house that doesn’t even have indoor plumbing, implying some kind of fraudulent transaction. Members of my family have reduced or cut off communications, fearing they could be targeted too.

After court battles and negotiation, in March of 1998 HUD insisted that all of our computers be scrubbed. We were not going to be allowed to transfer our own proprietary data and the Federal District Court Judge, Stanley Sporkin, appointed a Special Master as trustee to manage all our digital and paper records. Inexplicably, HUD was quite upset when they found we had taken our main server with us and not sold it, in spite of the government’s destruction of its files. The HUD investigator made it clear that we could not keep the server because – “We were not allowed to have any of the knowledge”. We could not explain this bizarre position and neither could they.

What I did not know until approximately a year later, after reviewing tapes of Mike Ruppert’s lectures, was that hearings were held on Volume I of the CIA Inspector General’s report on the Dark Alliance allegations on March 16 of 1998. At the same moment the government was trying to steal Hamilton’s data and knowledge.

We also did not notice in February when Vice President Al Gore announced that Secretary Cuomo was bestowing an empowerment zone and $300 million in tax credits on Maxine Water’s congressional district.  That was just before the March 16th hearing where Maxine Waters performed brilliantly against CIA in a show that nobody watched. We were busy, at the time, moving our computers over to our law firm to protect the MONEY MAPS from a series of break-ins and other harassment around my home.

Our growing fear of being set up in an asset forfeiture case, after the Department of Justice threatened my assets personally, dominated our lives and does so to this day.

And so we did not notice when the damning Volume II of the CIA Inspector General’s report was released on October 8th, one hour after Henry Hyde’s Committee started the Impeachment inquiry.  And we did not notice that Maxine Waters’ voice suddenly fell almost silent as Bill Clinton saved his presidency by blackmailing the Republicans with Volume II and its contents. I made efforts to communicate with Maxine Waters in November and December 1998 about possible connections between our case and CIA drug dealing but, aside from an initial contact, our calls were not returned. [FTW placed telephone and e-mail requests to both the LA and Washington offices of Maxine Waters to ascertain whether the $300 million tax credit award in March, 1998 was spontaneous or the result of a previously submitted request. As of press time we have received no response. - ED]

To date we estimate that the HUD Inspector General investigation targeting my companies and me has cost the American taxpayer $35MM. To date we have not been successful in getting the Department of Justice or the HUD OIG to tell us what they are investigating or even who is in charge of the investigation. The investigation continues with no end in site. We have multiple lawsuits filed against HUD and are filing more. We continually hear Judge Stanley Sporkin, rule against us with statements that he disagrees with the law so we should take it up with Congress.

The company I founded, Hamilton, was liquidated a year ago to pay the bills of the ongoing campaign to discredit us. As a result of the persecution we have lost more than one hundred million dollars. I have sold my home, lost millions of dollars in unpaid HUD contracts, endured eighteen audits, burglaries, physical harassment and an unending smear campaign which has produced not a single complaint or indictment after almost three years. I believe this is because I have the pieces to help prove that what Gary Webb stumbled upon was ethnic cleansing – American style.

My bottom-line? For those of you pushing for testimony on Volume II, let’s try another tactic. Let’s push for a Congressional and GAO investigation on how all the federal investment, credit and regulation worked in Los Angeles from 1980 to 1994. Let’s look at how our government was used, from CIA to DEA to HUD, to destroy and loot our communities. The key is HUD. Let’s look at how the Section 8 owners, managers and tax partnership beneficiaries worked along side the drug traffickers. Let’s look for patterns of loan brokering, money laundering, cleansing and other relationships between real estate, land, prison growth and privatization and the kind of investors who control CIA and intelligence networks. Then let’s look how this ties in to campaign fundraising.

The present economic and political system is not sustainable and must collapse – or change. New investment models in the information age will show us that integrity, honesty and win-win investment models, rooted in community and place based autonomy are actually more profitable than the liquidate and destroy models currently operating. Like the auto mechanic said

to the car owner who needed repairs, “You can either pay some now – or pay a lot more later.”  But we have to solve some problems first. Finding the will to do that is made easier for me as I recall the words of Bishop Alfred Owens of the Greater Mount Calvary Holy Church, “If we can face it. God can fix it.”

After a lifetime of study, from Wharton to the inner sancta of government, I believe I have found the solution to a very real corruption which neither Congress nor Wall Street presently possess the ability to stop. It is a new investment model, born of the Information Age, which will save both the just and the unjust alike by turning the current Industrial Age investment model upside down and making what was once secret – available to all. As the edge of the precipice approaches and as our economic snake eats its own tail it shouldn’t be long before those who have scoffed at the truth-tellers recognize that we are the ones with the maps to lead them out of the jungle.

You can learn more about the Solari investment model by visiting www.solarivillage.com.

—————

Catherine Austin Fitts, is a 1978 Graduate of the Wharton School of Business with an MBA in Finance. From1978 to 1989, at the Wall Street investment bank Dillon, Read & Co she served in the Corporate Finance, Energy Finance, Mergers and Acquisitions and Public Finance Departments. From 1986-9 Fitts was a Managing Director and member of the Board of Directors.

From 1989-90 Fitts served as Assistant Secretary of Housing – Federal Housing Commissioner at the Department of Housing and Urban Development. From 1991-7 she served as President/CEO of the Hamilton Securities Group with aggregate revenues of $50 million, an employee base of 50 and portfolio strategy responsibilities for $400  billion of financial assets.

She is now President and CEO of Solari, Inc; a Washington consulting firm specializing in equity based neighborhood investment models for the Information Age.

Catherine Austin Fitts Poses 20 Questions on Enron-

Jan. 24, 2002

Ok, let’s play 20 questions:

When The Mexican bail out occurred and the Russian IMF loans in 1998 happened, were did the money go?

It went from one bank account at a NY Fed member bank to another bank account at another NY Fed member bank, indeed it appears that the money never digitally or physically left Wall Street…..

Ok, so lets not talk about money missing from Mexico or Russia, but from the USA….Money missing from US Treasury, HUD and DOD…..

Who is the US depository for the US Treasury?

NY Fed….that is, Morgan-Chase, Citibank, Bank of New York, Goldman, etc….

Who handles all the accounts for the HUD servicing?

Morgan-Chase

Who are the primary dealers on the US Treasury auctions….

Morgan-Chase, Citibank, Bank of New York, Goldman

Who are the firms accused on manipulating the gold market by GATA

Fed, Morgan-Chase, Citibank, Goldman

GATA also says that there appear to be manipulations of the stock market by the Treasury/Fed…something they call the “plunge protection team.” What dealers are doing that…

Fed, Morgan-Chase, Citibank, Goldman

Who laundered $3 trillion out of the US gov’t? Where did it go? Who got it?

Don’t know but it could not have been pulled out without Fed, Morgan-Chase, Citibank, Goldman knowing how much and where it went….

How did they launder the money offshore?

Don’t know…

Who were Enron’s big trading partners?

Morgan-Chase, Citibank, Goldman, etc.

Who were Enron’s big lenders and investment bankers?

Morgan-Chase, Citibank, Goldman, UBS

How much were Swiss Bank accounts up as of March 2001

Swiss bank accounts were up by an unexpected $8 trillion in on shore and off shore accounts

The most sensitive Enron trading records were in Enron On Line. It was just auctioned. Who were the big bidders?

Morgan-Chase, Citibank, etc.

Who won control of Enron OnLine?

UBS, one of the largest swiss banks

Who is the most recent board member of UBS?

Lawrence Weinbach, former Chairman of Arthur Anderson

Other board connections?

Pug Winokur, chairman of Enron’s finance committee, is chairman of the compensation committee of the DynCorp board and has a partner who is on the DynCorp board with him, Dudley Mecum who is on Citibank’s board. Frank Savage is also a member of Lockheed Martin’s board. DynCorp and Lockheed manage substantial information and accounting/payment systems for the agencies with missing money and the agencies in charge of enforcement.

Trick Questions:

Enron’s reported sales through 2000 represented a five year 57% increase.

Did any of that money flow through Houston or did it just flow around NY Fed bank accounts and their offshore correspondants.

And did it flow from a NY Fed bank account that said “US Treasury” on it…

How long would it take DynCorp, manager of the PROMIS system for DOJ paid by the taxpayer, to determine sources and uses of money through the Enron trading accounts and find and seize all offshore Enron monies?

How long would it take a company like Lockheed and DynCorp to help steal it?

How long would an incoming Bush Administration have to keep Enron afloat before they banks had all the money trail safely destroyed? Why has the DOJ allowed Enron time to sell Enron OnLine and time to shred all their documents and to allow Arthur Anderson time to shred their documents?

I have lost a number of readers that believe I am totally crackers because I believe that our government was involved in the the 9.11 Attack on the World Trade Center. Over the course of the years since yet another massive lie was perpetrated against the American public, numerous scientists and architects continue to expose the discrepancies in the evidence that states 19 radical muslim hijackers committed this atrocious crime all by themselves.

Ever wonder why World Trade Center Building 7 was ‘pulled’?

ENRON, CHENEY, 9/11, LIVE HIJACKERS, & DEAD MICROBIOLOGISTS
By Devvy Kidd

Cheney and Guiliani

I don’t believe that anyone who has read the Kean Commission Report aka the 9/11 Omission Commission and Crossing the Rubicon, can have any doubts whatsoever that Richard Cheney, VP of these united States of America is up to his black heart in what really happened that day. This statement is not made for any political party considerations because I belong to no political party. My assessment is based on the massive amount of documented evidence. The American people have been fed half truths poisoned with out right lies and it must be exposed.

How very convenient that on 9/11 there just happened to be a virtual army of federal and state agencies practically on top of ground zero. See pg 405, Crossing the Rubicon: “Guiliani dropped the bomb about Tripod II war game in his opening statement. The implications of his disclosure were to reach far and deep.”

“Guiliani’s testimony before the Kean Commission, May 19, 2004:

“And the reason Pier 92 was selected as the command center was because on the next day, on September 12, Pier 92 was going to have a drill. It had hundreds of people here from FEMA, from the federal government, from the state, from the State Emergency Management Office, and they were getting ready for a drill for a biochemical attack. So that was going to be the place they were going to have the drill.

“The equipment was already there. So we were able to establish a command center there within three days that was two and one half to three times bigger than the command center that we had lost at 7 WTCenter. And it was from there that the rest of the search and rescue effort was completed.” End of quote.

World Trade Center 7 was deliberately demolished; the debris (evidence) hauled away over the objection of 9/11 families. Its collapse was not the result of any damage from the two towers, see here. The first question that would come to mind is why that building? What was inside? Perhaps these facts will help:

1. WTC 7 housed the largest CIA station in the United States outside of Washington DC.
2. In addition to the CIA, WTC 7 also housed the NYC offices of the IRS, FBI, and SEC.
3. Many months later, a government source was quoted in the mainstream press saying that the records stored in these offices – including years of evidence files – were, for the most part, lost without backup. Evidence files that were part of active investigations into such things as organized crime, bank and securities fraud, money laundering, drug trafficking, terrorism. Congressman Tauzin was looking into records relating to Enron; now deleted. How unfortunate because it makes you wonder what these documents could tell us.

The web site 9/11research carries a well done photo layout with this:

“World Trade Center 7’s tenants included the Secret Service, the IRS, and several financial institutions, including the Securities and Exchange Commission. The SEC lost numerous ongoing case investigations,including Enron’s files in the collapse. WTC 7 also housed Mayor Giuliani’s Emergency Command Center.”

Which leads me to my last tidbit for this article, the Secret Service.  I was, like many Americans, only familiar with the fact that the Secret Service guards government officials and visiting dignitaries.  I have been curious why they were a department of the Treasury (until March, 2003 when they became part of DHS), so I went looking.  Here are some important benchmarks in the SS’s timeline from their own site.

SECRET SERVICE HISTORY

1865 The Secret Service Division was created on July 5, 1865 in Washington, D.C., to suppress counterfeit currency. Chief William P. Wood was sworn in by Secretary of the Treasury Hugh McCulloch.

1867 Secret Service responsibilities were broadened to include “detecting persons perpetrating frauds against the government.” This appropriation resulted in investigations into the Ku Klux Klan, non-conforming distillers, smugglers, mail robbers, land frauds, and a number of other infractions against the federal laws.

1901 Congress informally requested Secret Service Presidential protection following the assassination of President William McKinley.

1902 The Secret Service assumed full-time responsibility for protection of the President. Two operatives were assigned full time to the White House Detail.

1908 Secret Service began protecting the president-elect. Also, President Roosevelt transferred Secret Service agents to the Department of Justice. They formed the nucleus of what is now the Federal Bureau of Investigation (FBI).

1915 President Wilson directed the Secretary of the Treasury to have the Secret Service investigate espionage in the United States.

1922 White House Police Force created on October 1, 1922, at the request of President Harding.

1930 White House Police Force was placed under the supervision of the Secret Service.

1984 Congress enacted legislation making the fraudulent use of credit and debit cards a federal violation. The law also authorized the Secret Service to investigate violations relating to credit and debit card fraud, federal-interest computer fraud, and fraudulent identification documents.

1990 The Secret Service received concurrent jurisdiction with Department of Justice law enforcement personnel to conduct any kind of investigation, civil or criminal, related to federally insured financial institutions.
1994 The passage of the 1994 Crime Bill Public Law 103-322, in part, revised Title 18 USC Section 470, providing that any person manufacturing, trafficking in, or possessing counterfeit U.S. currency abroad may be prosecuted as if the act occurred within the United States.

2001 The Patriot Act (Public Law 107-56) increased the Secret Service’s role in investigating fraud and related activity in connections with computers. In addition it authorized the Director of the Secret Service to establish nationwide electronic crimes taskforces to assist the law enforcement, private sector and academia in detecting and suppressing computer-based crime; increased the statutory penalties for the manufacturing, possession, dealing and passing of counterfeit U.S. or foreign obligations; and allowed enforcement action to be taken to protect our financial payment systems while combating transnational financial crimes directed by terrorists or other criminals.

2002 The Department of Homeland Security was established with the passage of (Public Law 107-296) which in part, transfered the United States Secret Service from the Department of the Treasury, to the new department effective March 1, 2003.

2006 The network of Secret Service Electronic Crimes Task Forces expanded from 15 to 24 nationwide task forces dedicated to fighting high-tech, computer-based crimes through successful public-private partnerships.

In regard to WTC 7:

U.S. Secret Service

“World Trade Center Building 7 stood in the shadow of the North Tower. Inside the 47-story building: the US Secret Service’s largest field office with more than 200 employees. On September 11 all of them escaped, but Building 7 was reduced to rubble. This week on “CyberCrime,” an exclusive look into the hours, weeks, and months following 9/11 and how the US Secret Service was able to recover thanks to the largest cybercrime team in the country — the New York Electronic Crimes Task Force (NYECTF).

“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.”

But despite their physical losses, nothing could shake the field office’s solid foundation. This week on “CyberCrime,” you’ll see how the members of the NYECTF came to the Secret Service’s rescue. Watch as more than 50 law enforcement agencies, 200 corporations, and 12 universities donate tens of thousands of dollars in equipment and hundreds of volunteer hours to enable the US Secret Service’s New York office become operational within just 48 hours of the attacks.”

http://www.techtv.com/cybercrime/features/story/0,23008,3378780,00.html

Watch the WTC Building 7 segment – “A lot of cases had to be closed as a result of losing that building.” – David Curran.

Gerald Lynch of John Jay College helped post 9-11 & allowed the SS to use building to resume work.

Special Agent Robert W Weaver of the New York Electronic Crimes Task Force – Statement to House Committee on Science, June 24th 2002

More info: http://www.sbq.com/sbq/wireless/sbq_wireless_disaster.pdf

Weaver: “We lost Craig Miller, an employee that we still can’t find. His body has never been recovered. People here are still grief stricken.” (first quarter, 2002)

Steve Carey – SS special agent in charge or recreating task force.

“When 7 World Trade Center came down on Sept. 11, an agent on loan from Washington, special officer Craig Miller, perished, and the entire Secret Service office was buried in that building. Yet, despite the devastation, the New York Electronic Crime Task Force has stepped up its operations in credit card fraud and for Osama Bin Laden’s money”

http://www.ectaskforce.org/City_Leads_Way.pdf [link expired]

” One employee, Master Special Officer Craig Miller, died during the rescue efforts. Miller was temporarily assigned to New York in preparation for the United Nations General Assembly.”http://www.ustreas.gov/usss/press/pub1202.pdf

“in selfless dedication to others, Master Special Officer Craig Miller was lost in the collapse of the World Trade Center.”

http://www.house.gov/istook/rel-ss-customs.htm

Are you wondering, as I am, about what evidence the Secret Service had that was “lost” in the collapse of WTC7?

Tenants of WTC7; which has sparked yet another linkage, but I need more time to find the information and pdfs that the list of tenants has triggered in my sleep deprived brain.  Will post that information in another article soon.

The Tenants

Tenant List (provided by CoStar Group Inc)

Building: 7 World Trade Center
Tenant Square Feet Leased Floor Industry
Salomon Smith Barney 1,202,900 GRND,1-6,13,18-46 Financial Institutions
Internal Revenue Service Regional Council 90,430 24,25 Government
U.S. Secret Service 85,343 9,10 Government
American Express Bank International 106,117 7,8,13 Financial Institutions
Standard Chartered Bank 111,398 10,13,26,27 Financial Institutions
Provident Financial Management 9,000 7,13 Financial Institutions
ITT Hartford Insurance Group 122,590 19-21
First State Management Group, Inc 4,000 21 Insurance
Federal Home Loan Bank 47,490 22 Financial Institutions
NAIC Securities 22,500 19 Insurance
Securities & Exchange Commission 106,117 11,12,13 Financial Institutions
Mayor’s Office of Emergency Mgmt 45,815 23 Government




5 Responses to Catherine Austin Fitts On Alex Jones, 8.24.2010
  1. LogisticsMonster
    August 25, 2010 | 1:30 pm

    Everybody give that special Monster wave to the US House of Representatives!!!

  2. DiamondTiger
    August 25, 2010 | 2:41 pm

    Latest at Logistics Monster: Catherine Austin Fitts On Alex Jones, 8.24.2010 http://is.gd/eD0WF

  3. DiamondTiger
    August 25, 2010 | 3:11 pm

    Catherine Austin Fitts On Alex Jones, 8.24.2010 via Logistics Monster – (Editor's Note: Strap-in folks; … http://tinyurl.com/25m959z

  4. LogisticsMonster
    August 25, 2010 | 3:31 pm

    Ladies and gentlemen:

    We have hit a nerve with this post…the traffic is very interesting today.

  5. Kathy
    August 26, 2010 | 12:47 am

    What most likely has them peeved is not only is someone writing about this there are people reading it. We do not all watch American Idol.

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THE TWO MOST IMPORTANT PIECES TO READ ON THIS SITE:

Tea Party Patriots Vs. The Master Class

Still have that sinking feeling in your midsection every time you think about the District of Criminals, The Fed, Bernanke, etc.?  Are you still not sleeping well at night because you know something is “so wrong” but the scope of the problem is just getting larger each day?

Remember when we spoke about giving up every last penny of our wealth to get rid of the bloodsucking elites that are killing our childrens’ futures?

After reading this commentary, you will have the concise MATH, (there’s that word again), and course of the nation that  explains why you feel like a hamster on crack, and can’t sleep at night.  The numbers do not lie.

This piece is long, it’s brutal, and it will make you weep, but I urge you to read every single word because it will resonate. Remember it when the epitome of the elite class gives his State of The Union Address, and then it will be time to get the little gray cells working because I refuse to allow these bastards to keep raping us into indentured servitude.

America’s Impending Master Class Dictatorship

Copyright 2010 by Stewart Dougherty, with all rights reserved.

FOREWORD: At certain times, focusing on the big picture is important not just for investment success, but for personal welfare, and even survival. We believe such times are here. It is estimated that 98% of Americans have never held a gold coin in their hands. Yet 100% of Americans regularly handle Federal Reserve Notes. From a contrarian standpoint, the financial message from those two statistics is clear. Even so, gold is much more than money or an investment medium; it stands for liberty and throughout history has facilitated escape and ensured freedom. Never having touched a gold coin is the monetary equivalent to never having breathed fresh air, felt the warmth of sunshine, looked up at the stars or risen from the gutter. Fiat Federal Reserve Notes are becoming nothing more than sewage decomposing in the vast, toxic septic tank of predatory Washington politics, epic Federal Reserve arrogance and error, blatant Wall Street fraud and outright Master Class plunder. Below, we outline America’s troubling and compounding predicament, and urge you to think about how to protect yourself from its consequences, both financially and personally.

Thanks to the endless barrage of feel-good propaganda that daily assaults the American mind, best epitomized a few months ago by the “green shoots,” everything’s-coming-up-roses propaganda touted by Federal Reserve Chairman Bernanke, the citizens have no idea how disastrous the country’s fiscal, monetary and economic problems truly are. Nor do they perceive the rapidly increasing risk of a totalitarian nightmare descending upon the American Republic.

One stark and sobering way to frame the crisis is this: if the United States government were to nationalize (in other words, steal) every penny of private wealth accumulated by America’s citizens since the nation’s founding 235 years ago, the government would remain totally bankrupt.

According to the Federal Reserve’s most recent report on wealth, America’s private net worth was $53.4 trillion as of September, 2009. But at the same time, America’s debt and unfunded liabilities totaled at least $120,000,000,000,000.00 ($120 trillion), or 225% of the citizens’ net worth. Even if the government expropriated every dollar of private wealth in the nation, it would still have a deficit of $66,600,000,000,000.00 ($66.6 trillion), equal to $214,286.00 for every man, woman and child in America and roughly 500% of GDP. If the government does not directly seize the nation’s private wealth, then it will require $389,610 from each and every citizen to balance the country’s books. State, county and municipal debts and deficits are additional, already elephantine in many states (e.g., California, Illinois, New Jersey and New York) and growing at an alarming rate nationwide. In addition to the federal government, dozens of states are already bankrupt and sinking deeper into the morass every day.

The government continues to dig a deeper and deeper fiscal grave in which to bury its citizens. This year, the federal deficit will total at least $1,600,000,000,000.00 ($1.6 trillion), which represents overspending of $4,383,561,600.00 ($4.38 billion) per day. (The deficit during October and November, 2009, the first two months of Fiscal Year 2010, totaled $296,700,000,000.00 ($297 billion), or $4,863,934,000.00 ($4.9 billion) per day, a record.) Using the GAAP accounting method (which is what corporations are required to use because it presents a far more accurate and honest picture of a company’s finances than the cash accounting method primarily and misleadingly used by the U.S. government), the nation’s fiscal year 2009 deficit was roughly $9,000,000,000,000.00 ($9 trillion), or $24,700,000,000.00 ($24.7 billion) per day, as calculated by brilliant and well-respected economist John Williams. (www.shadowstats.com) Fiscal Year 2010’s cash- and GAAP-accounting deficits will likely be worse than 2009’s, given government bailout and new program spending that is on steroids and psychotic.

Putting Fiscal Year 2009’s $9,000,000,000,000.00 ($9 trillion) deficit another way, 17% of America’s private wealth, accumulated over a period of 235 years, was wiped out by just one year’s worth of government deficit spending insanity.

Given this, is it any surprise that Treasury Secretary Geithner has announced that the release of the nation’s FY 2009 supplemental GAAP financial statements has been delayed? Remember, this is the same Secretary Geithner who bullied people to cover up the sordid details of the AIG, or more accurately, the taxpayer-funded, multi-billion dollar, Santa Claus bailout and bonus bonanza for Goldman Sachs. Do you really think this government, characterized as it is by fiscal and monetary secrecy, lies, chicanery, cronyism and stonewalling, wants the people to know what is actually happening? Obviously, it does not, so it hides from the public the inexcusable facts.

It is estimated that the top 1% of Americans control roughly 40% of the nation’s wealth. In other words, 3 million people own $21,400,000,000,000.00 ($21.4 trillion) in net private assets, while the other 305 million own the remaining $32,000,000,000,000.00 ($32 trillion). 77,000,000 (77 million) Americans (the lowest 25%) have mean net assets of minus $2,300 ($-2,300.00) per person; they live from paycheck to paycheck, or on public assistance. The lower 50% of Americans own mean net assets of $27,800 each, about enough to purchase a modest car. Obviously, it would be impossible to retire on such an amount without significant government or other assistance. Meanwhile, the richest 10% of Americans possess mean net assets of $3,976,000.00 each, or 143 times those of the bottom 50%; the top 2% control assets worth more than 1,500 times those in the bottom 50%. When you combine these facts with Wall Street’s typical multi-million dollar annual bonuses, you get an idea of wealth inequality in America. Historically, such extreme inequality has been a well-documented breeding ground for totalitarianism.

If the government decides to expropriate (steal) or commandeer (e.g., force into Treasuries) America’s private wealth in order to buy survival time, such a measure will be designed to destroy the common citizens, not the elite. Insiders will be given advance warning about any such plan, and will be able to transfer their money offshore or into financial vehicles immune from harm. Assuming that the elite moves its money to safety, there would then be $120,000,000,000,000.00 ($120 trillion) in American debt and liabilities supported by only $32,000,000,000,000.00 ($32 trillion) in private net worth, for a deficit of $88,000,000,000,000.00 ($88 trillion). In that case, each American would owe $285,714.29 to balance the country’s books.  (Remember to multiply this amount by every person in your household, including any infant children.)

If the common people suspect that something diabolical was in the works, a portion of the $32 trillion in non-elite wealth could be evacuated as well prior to a government expropriation and/or currency devaluation, resulting in less money for the government to steal. What these statistics mean is that it is absolutely impossible for the government to fund its debt and deficits, even if it steals all of the nation’s private wealth. Therefore, the government’s only solutions are either formal bankruptcy (outright debt repudiation and the dismantling of bankrupt government programs) or unprecedented American monetary inflation and debt monetization. If the government chooses to inflate its way out of this fiscal catastrophe, the United States dollar will essentially become worthless. You can be absolutely certain that a PhD. in economics, such as Dr. Bernanke, is well aware of these realities, despite what he might say in speeches. For that matter, so are Chinese schoolchildren, who, when patronized by Treasury Secretary Geithner about America’s “strong dollar,” laughed in his face. One day, perhaps America’s school children will receive a real education so that they, too, will know when to laugh at absurd propaganda.

The government has announced that during the fiscal years from 2010 through 2019, it will create an additional $9,000,000,000,000.00 ($9 trillion) in deficits, an amount that is almost certain to be understated by trillions given the country’s current economic trajectory. The government assumes that this vast additional deficit will be funded by others, such as the Chinese, as it is a statistical fact that the United States will be incapable of funding it.

Furthermore, with the budgetary equivalent of a straight face, the Office of Management and Budget reports in its long-term, inter-generational budget projection that the United States government will experience massive, non-stop deficits for the next 70 (SEVENTY) years, requiring the issuance of tens of trillions of dollars of additional debt. The OMB does not project even one year of surplus during the entire seventy year budget period.

These deficits and debts are now so gargantuan that they have become surreal abstractions impossible even for sophisticated financiers to begin to comprehend. The common citizen has absolutely no idea what these numbers mean, or imply for his or her future. The people have been deluded into thinking that America’s arrogant, egomaniacal, always-wrong-but-never-in-doubt fiscal witch doctors and charlatans, including Greenspan, Rubin, Summers, Geithner and Ponce de Bernanke, have discovered a Monetary Fountain of Youth that endlessly spits up free money from the center of earth, in a geyser of good will toward the United States. Unfortunately, this delusion is false: there is no Monetary Fountain of Youth, and contrary to the apparent beliefs of the self-deified man-gods in Washington, D.C., the debt and deficits are real, completely out of control, and 100% guaranteed to create catastrophic consequences for the nation and its people.

When government “representatives” deliberately sell into slavery the citizens of a so-called free Republic, they have committed treason against those people. This is exactly what has happened in the United States: the citizens have been sold into debt slavery that they and their descendants can never escape, because the debts piled onto their backs can never, ever be paid. Despite expensive and sophisticated brainwashing campaigns emanating from Washington, claiming that America can “grow” out of its deficits and debt, it is arithmetically impossible for the country to do so. The government’s statements that it can dig the nation out of its fiscal hole by digging an even deeper chasm have become parodies and perversions of even totally discredited and morally disgusting Keynesianism.

The people no longer have elected representatives; they have elected traitors.

The enslavement of the American people has been orchestrated by a pernicious Master Class that has taken the United States by the throat. This Master Class is now choking the nation to death as it accelerates its master plan to plunder the people’s dwindling remaining assets. The Master Class comprises politicians, the Wall Street money elite, the Federal Reserve, high-end government (including military) officials, government lobbyists and their paymasters, military suppliers and media oligarchs. The interests and mindset of the Master Class are so totally divorced from those of the average American citizen that it is utterly tone deaf and blind to the justifiable rage sweeping the nation. Its guiding ethics of greed, plunder, power, control and violence are so alien to mainstream American culture and thought that the Master Class might as well be an enemy invader from Mars. But the Master Class here, it is real and it is laying waste to America. To the members of the Master Class, the people are not fellow-citizens; they are instruments of labor, servitude and profit. At first, the Master Class viewed the citizens as serfs; now that they have raped and destroyed the national economy, while in the process amassing unprecedented wealth and power for themselves, they see the people as nothing more than slaves.

America’s public finances are now so completely dysfunctional and chaotic that something far worse than debt enslavement and monetary implosion, terrible curses unto themselves, looms on the horizon: namely, a Master Class-sponsored American dictatorship.

Throughout history, the type of situation in which America now finds itself has been a fertility factory for tyranny. The odds of an outright overthrow of the people by the Washington and Wall Street Axis, or more broadly, the Master Class are increasing dramatically. The fact that so few people believe an American dictatorship is possible is exactly why it is becoming likely.

Dictatorships have blighted history and ruined lives since the beginning of civilization. In recent times alone, tyrants such as Hitler, Stalin, Lenin, Ceausescu, Amin, Hussein, Mussolini, Tojo, Kim, Pinochet, Milosevic, Tito, Batista, Peron, Pol Pot, Mugabe, Marcos, Somoza, Mengistu, Bokassa, Sese Seko, Franco, Ho Chi Minh, Mao, and Castro have power-sprayed blood onto the screen of time and ravaged mankind with murder, torture and human oppression. A full catalog of history’s tyrants would require a book of hundreds of pages. In the past 100 years alone, over 200 million human beings have been annihilated by wars, ethnic cleansings and government assassinations. Just when we think that civilization has been able to rise above tyranny’s inhumanity and disgrace, a new dictator appears on the scene to start the process all over again. Every time this happens, fear and submission paralyze the vast majority of the affected masses, leading them to “follow orders” and lick autocracy’s blood-stained boots.

History has proven to tyrants that oppression works. In fact, it is easy to control a populace, once you control the money, markets, military (including police), media and minions (the recipients of welfare, social security, free health care, government jobs and the like, who are dependent upon the state and likely to be compliant). This is exactly where the United States is today.

Recent American events paint an ominous picture of a Master Class that is now in total control.

When 90% of the American people vehemently rejected the $700,000,000,000.00 ($700 billion) TARP bailout plan, the Master Class put it on a fast track and approved it anyway.

When a clear majority of the American people said no to a government takeover of Chrysler and GM, the Master Class poured billions of taxpayer dollars into those corporate sinkholes and took them over anyway.

When the people said no to multi-trillion dollar crony bailouts for the bankers and insurers whose corruption had caused global financial mayhem, the government pledged to those elite insiders more than $13,000,000,000,000.00 ($13 trillion) of the people’s money anyway.

When the people expressed astonishment and anger that Wall Street planned to pay itself record 2009 bonuses, in the midst of America’s worst-ever fiscal and financial crisis caused by them, Wall Street stuffed its pockets with taxpayer-supported bonus money anyway.

When the people said no to a proposed $40,000,000,000.00 ($40 billion) bailout of AIG and its elite trading partners such as Goldman Sachs (an amount that subsequently exploded to $180,000,000,000.00+ ($180+ billion)), the Master Class went underground, covertly misappropriated taxpayer money and made the payoffs anyway.

When Fannie Mae and Freddie Mac were nationalized at enormous taxpayer expense, the government approved $6,000,000.00 individual pay packages in 2009 (150 times the average American wage) for the CEOs of both failed companies anyway.

When a clear majority of the people said no to nationalized health care, even after being bombarded by a multi-million dollar, lie-drenched propaganda campaign designed to bamboozle them, the House and Senate passed nationalized health care bills anyway.

When more than seven million American workers lost their jobs and were subsisting on unemployment benefits and food stamps, federal government employees, who now earn DOUBLE what private sector workers earn, were given another round of pay and benefits increases anyway.

When private sector workers’ 401Ks and IRA retirement plans plummeted in value due to economic collapse and endemic Wall Street-orchestrated market corruption (including systemic front running, flash trading, naked short selling and other manipulations), government “defined benefit,” lifetime-cost-of-living-adjusted pension plans, despite already being underfunded by $2,000,000,000,000.00 ($2 trillion), were made richer than ever anyway.

The long, shameful litany of events signaling the total divorce between the Master Class and the people of the United States doesn’t stop there. It goes on and on.

The message from the American Master Class to the American people is simple and clear:

We Defy You.

Governments that openly defy the people are either already totalitarian or in the process of becoming so. Monetarily, the United States clearly functions as a totalitarian dictatorship already, with a Federal Reserve that operates in secrecy, creates limitless amounts of debt and currency at will, and showers trillions of dollars upon favored Master Class insiders with zero transparency or accountability whatsoever. The Federal Reserve is so shameless about its dictatorial powers that it flatly refuses to provide details about multi-trillion dollar bailouts and rescues of privileged elites, in open defiance of Congress and the people. The fact that they get away with these blatant acts of defiance demonstrates the true extent of the Master Class chokehold on America.

If the Master Class were a benign despot and if its policies and programs actually worked, that would be one thing. But that is not the case. Rather, its programs are in a complete shambles.

Every single government entitlement program in the United States is bankrupt. This includes Social Security ($17,500,000,000,000.00 underfunded; $17.5 trillion); Medicare Part A ($36,700,000,000,000.00 underfunded; $36.7 trillion); Medicare Part B ($37,000,000,000,000.00 underfunded; $37 trillion); Medicare Part D ($15,600,000,000,000 underfunded; $15.6 trillion), Government and military pensions ($2,000,000,000,000 underfunded; $2 trillion), Food Stamps (current underfunding difficult to measure because the number of recipients is exploding; hundreds of billions underfunded versus original projections, minimum); and the list goes on. The above underfunding amounts are NET of projected tax receipts over the next 50 years. But the current recession has invalidated virtually all long-term budget and tax receipt assumptions, meaning that the true underfunded amounts are now greater than current, already mind-boggling estimates.

While the above statistics are terrifying enough to any citizen with a functioning brain, what is Twilight Zone-eerie and a far more serious cause for alarm is the casual indifference with which the Master Class is now making the country’s dire and irreparable fiscal circumstances even worse.

The nationalized health care program will cost at least $1 trillion over the next ten years, and most likely multiples of that. It is being crammed down America’s throat by a bankrupt government that does not have the money today and will not have the money tomorrow to pay for it. Worse is the fact that the same government that has bankrupted each and every existing social program now intends to directly or indirectly control the health care of all citizens. Based on the government’s existing track record and the health care program’s enormous complexity, invasiveness and cost, the probability that it will become a national fiscal and humanitarian catastrophe is roughly 100%.

“Cap and Trade” is a multi-trillion dollar tax scam being foisted onto the American public without a legitimate debate or popular referendum. You might be surprised to learn that “Climate Revenues” are already included in the federal budget, starting with $79,000,000,000.00 ($79 billion) in fiscal year 2012, which begins only 20 months from now. During fiscal years 2012 through 2019, the government expects to collect $646,000,000,000.00 ($646 billion) in “Climate Revenues,” a completely new tax category. Have any of your elected traitors told you that they have enacted $646,000,000,000.00 ($646 billion) in “Climate” taxes beginning twenty months from now and continuing forever? These “Climate Revenues” are based on junk science, lies and hysteria, and have been pimped by greed-diseased parasites who seek to make billions from operating and manipulating the Cap and Trade “marketplace.” Favored elitists such as Hank Paulson, Al Gore, General Electric and Goldman Sachs, among others, have positioned themselves to profit from the nation’s upcoming Cap and Trade tax misery and economic debilitation.

The reality is that the giant Ponzi scheme called the United States of America is running out of money. In any Ponzi scheme, money must constantly be poured into the top of the funnel in order to pay the redeemers at the bottom. As the number of redeemers has grown, tax receipts have fallen far short of covering their withdrawals, a problem that has now become an outright government funding emergency further aggravated by the fiscal, financial and economic crises.

If the Washington and Wall Street Axis were not legally able to create and distribute counterfeit American money, the Ponzi scheme would have collapsed already. Trillions of new, out-of-thin-air, printing-press and electronic “dollars” have bought the Axis additional time, but new sources of revenue must immediately be found to keep the scam alive. Congress is fully aware of this reality. Outright tax increases would be bad politics during a recession that is morphing into a depression, and also bad for 2010 re-election campaigns, so they cannot be implemented. Therefore, Congress continues to advance the health care and Cap and Trade agendas, which are nothing but taxation Trojan Horses festooned in righteousness and sanctimony, despite overwhelming popular opposition.

If the nationalized health care program is passed, revenues and fees will kick in immediately in 2010, whereas costs will not begin to accrue until 2012 and later. The government plans to spend the revenues immediately to forestall a total fiscal collapse. Nationalized health care has absolutely nothing to do with health care; it has to do with creating an immediate revenue stream to help fix the current government funding crisis. Similarly, Cap and Trade has nothing to do with fixing the environment. It, too, is nothing more than a massive tax increase similarly designed to address the government’s epic funding shortfall, with thick slices of pork thrown  in for privileged insiders and deceitful propagandists like bloated “Father of the Internet” and now “Savior of the World” Al Gore.

The last thing the Master Class wants is for the people to understand the disastrous state of the nation’s finances. Master Class brainwashing tells the people that it is “negative” and “pessimistic” to look at the facts, despite the fact that psychological health is characterized by the ability to identify and deal with reality. The Master Class wants the people to put on Bozo the Clown happy faces and let sugar plums and green shoots dance in their brains as they write one check after another to pay for Cap and Trade, nationalized health care, and a mind-numbing assortment of other taxes and fees.

On Sunday night, November 30, 2009, North Korea’s dictator Kim Jong Il (a name that says it all, even better than Made-off’s), an international poster child of Master Class psychological illness, devalued his country’s currency by 99%. This vicious tyrant, who has given birth to a national hell on earth, is chauffeured in Mercedes Benz limousines, drinks the finest imported whiskies and dines in imperial dignity on foods prepared by personal chefs while his citizens starve to death on the streets or, at best, eke out a subsistence living. Kim became paranoid that the people were actually figuring out how to improve their pitiful, impoverished lives in tiny ways, so he decided to wipe them out. The people were given one week to exchange their money at a rate of 100 old Won for 1 new Won. Any lifetime family savings in excess of roughly $700.00 were simply confiscated by the North Korean government. To keep the people in line, the military and police were put on high alert, fully prepared to kill or arrest any protesters.

On January 9, 2010, Venezuela’s strong man Hugo Chavez devalued his country’s currency by 50%, overnight and without warning, causing immediate inflation, shortages of food and supplies, and general financial chaos throughout the nation.

While you might be shaking your head in pity over the plight of the citizens of North Korea and Venezuela, ask yourself this: could this not happen in the United States?

On April 5, 1933, President Franklin D. Roosevelt, an Obama hero, outlawed gold ownership overnight by signing Executive Order 6102, which gave the people three and one-half weeks to surrender all privately-owned bullion to the government for a price of $20.67 per ounce. On January 30, 1934, nine months after collecting the people’s gold, Roosevelt devalued the dollar 69% overnight, by raising the gold price from $20.67 to $35.00 per ounce.

Since its founding in 1913, the Federal Reserve has devalued the dollar by 98+% thanks to endless money printing and debt creation, a corrosive and impoverishing process that is now accelerating. In the past year, the Fed has engineered $20+ trillion in bailouts, subsidies and guarantees for well-connected and lucky scavengers and opportunists, an amount equal to roughly 40% of the total private wealth created in this country since its inception. All because a few elitist government man-gods with an almost perfect record of error and failure have deemed in their imperial wisdom that it shall be so. The citizens, whose hard-earned wealth is being systematically destroyed by this continual, government-decreed monetary debasement were never invited to the debate or given a say, which is par for the course for dictatorships. This massive de facto devaluation now hangs over the people’s wealth like a great monetary sword of Damocles.

Conceptually, whether it is a 50% overnight devaluation in Venezuela, a 69% overnight devaluation in the United States, a 98% devaluation in America over time, or a 99% overnight devaluation in North Korea, what is the difference? The fact is: there is no difference; monetary debasements are all the same. In each and every case, the people’s wealth is stolen via government edict, while the people stand by helplessly and in shock.

So one must ask: For whom does the bell toll? A foreign “them,” or a domestic us? Who is to say that you will not be told tomorrow morning that, effective immediately, in accordance with some perversely named mandate such as the “American Monetary Security, Wealth Preservation and Terrorism Prevention Act,” enacted by emergency for “the safety of the nation and the financial well being of the citizens,” all existing currency and bank balances will be redenominated in “New Dollars,” at a conversion rate of 1 new for every 100 old currency units? Would this not simply be another, almost predictable act of defiance toward the American people by the Master Class? And if that happened, do you honestly believe that the Master Class would not have been alerted in advance and allowed to make special preparations for itself ahead of the devaluation? Do you think they intend to go down in the same ship as the people they defy? If such a currency devaluation were announced, what could you do about it? March on Washington? But how would you get there if your money had been wiped out?

Despite what you may hear from State Media, which includes virtually all establishment news organizations, particularly financial ones (e.g., CNBC), America is on the precipice. No bankrupt nation in history has ever defended or preserved the freedoms of its citizens. In fact, it has been the exact opposite: in desperation, bankrupt governments have routinely plundered their citizens’ wealth and imposed totalitarian controls. What will make things different for the United States, the largest debtor nation in all of recorded civilization?

The United States government cannot ever, possibly pay its debts, is pathologically incapable of controlling its spending or curbing its hunger for both domestic and international empire and persistently refuses to tell the American people the truth. If America’s citizens were told the truth and given the benefit of true leadership, as opposed to the guile and dishonesty of an endless array of political liars and hacks, perhaps they could rally and defeat the problems that afflict them. But instead, they are fed by the Master Class a steady diet of narcotic propaganda that deludes, confuses and enervates them. The truth cannot set people free if it is never told, and that is the essence of America’s gathering tragedy.

In a future article, we will detail specific developments you should watch for to chart the course of America’s ominous and potentially deadly national storm. The current, grave situation is already a clear call to action. When the signals become even more urgent, it will be late in the game to take protective action, and possibly too late. Citizens should begin to prepare now not just for financial survival, but for the personal security of themselves and their loved ones should a Category 5 economic and political hurricane rip into the nation, something that becomes more likely every day.

With respect to personal finances, in virtually every national currency devaluation and major political upheaval in the past, gold has represented sanctuary for the affected people. Gold has not just preserved wealth, but personal freedom as well. While governments can devalue fiat currencies, they cannot, by edict, devalue gold. Yes, they can try to manipulate its price, but unless all governments join in the collusion, ultimately the price will return to market. The market for gold is global, and demand exists in all nations and among all peoples. Should the government attempt to confiscate gold, it will be an outright admission that the financial system is collapsing, and the people will know better than to hand over to a corrupt government their only means of survival. The most important point is this: devalued currencies never rise again. Once they are destroyed, they are gone forever, and those whose wealth had once been denominated in them are wiped out. As you have no doubt heard before, not one fiat currency has survived over time, and that is an indisputable fact. More significantly, no fiat currency has ever suffered the abuse that has been inflicted upon the United States dollar, meaning that it is at extreme risk. Gold has been money for 5,000 years. It has not merely survived, it has prevailed over each and every fiat currency collapse throughout history. Given this, the most important financial question a person can ask him- or herself today is: How is my wealth denominated at this time? And given its denomination, is my wealth likely to be safe in current and evolving circumstances?

One thing is certain: as the epic David and Goliath monetary battle unfolds, between the people fighting to defend their hard-earned wealth on one side, and a Master Class that greedily and pathologically wants to plunder them on the other, the price of gold will become extremely volatile for a period of time. Volatility will, in fact, tell you that the War on Wealth has officially been declared, and will be your signal to do whatever you must to protect what is yours. As the government Goliath and its Master Class allies short tonnes of bullion into rigged futures markets in a desperate attempt to make gold look dangerous and risky, the Davids will be coming forth not just in the United States but from all corners of the globe, buying 10 grams here and one ounce there. There are 6.8 billion Davids, versus one diseased Master Class that numbers in the small millions. There is no way the Master Class can defeat the people, if the people finally rise up and say “No More of Your Plunder. No More of Your Cold and Soulless Financial Oppression. No More of Your Cynical and Godless Exploitation.”

If you find the above argument compelling, you should consider how to protect yourself from Executive Orders that could be issued at any time, under any pretext, and that could be extremely hostile to your financial and/or personal health and well being. One simple way to start is to purchase one ounce of gold for yourself and each member of your household, and much more if you can afford it. That is not financial advice; it is merely the common sense generously communicated to you by history.

Stewart Dougherty

Stewart Dougherty is a specialist in inferential analysis, the practice of identifying historic and contemporary patterns and then extrapolating their likely effects upon the future. Dougherty was educated at Tufts University (B.A., magna cum laude), and Harvard Business School (M.B.A. and an academic Fellow). He can be reached at stewartdougherty@cs.com. He is not affiliated with or compensated by those he references or recommends. He does not offer investment or trading advice, and nothing in this article should be construed as such. This article represents the author’s personal opinions, and nothing more. The reader has the author’s permission to share, print, forward or post this article provided that the content is not changed and the author is acknowledged.

(H/T Mike)

Big Brother’s Lock On Your Money Is Complete

I wrote about it; I tried to warn people, but after the healthcare fight we just went through, I think most people just wanted a breather from battling the fascists in Washington (to our long-lasting detriment).

Now we have the financial reform bill that includes the new federal agency Office Of Financial Research, and the Bureau of Consumer Protection keeping track of every single financial transaction you could possibly imagine; including your bank balance, and when you walk to the ATM to take cash out.  I wasn’t lying, but I do think I was one of very few writing about it.

The fascists have the banks, the insurance companies, the credit card companies, the car companies, OUR healthcare, and now Americans’ financial transactions.

Senate Democrats Pass Bill Allowing Govt to Collect Addresses, ATM Records of Bank Customers

(CNSNews.com) – Senate Democrats united to pass a financial regulatory bill that allows the government to collect data on any person operating in financial markets at any level, including the collection of personal transaction records from local banks, including customers’ addresses and ATM receipts. (emphasis mine)

The Senate voted 59-39 on Thursday to pass the bill – the chief aim of which is to more-heavily regulate the financial industry – sending it to a conference committee in the House of Representatives, where differences between the House and Senate versions will be ironed out.

The bill, if it becomes law, will create the Bureau of Consumer Financial Protection and empower it to “gather information and activities of persons operating in consumer financial markets,” including the names and addresses of account holders, ATM and other transaction records, and the amount of money kept in each customer’s account.

The new bureaucracy is then allowed to “use the data on branches and [individual and personal] deposit accounts … for any purpose” and may keep all records on file for at least three years and these can be made publicly available upon request.

*break*

Shelby slammed the new consumer bureaucracy, saying that it was meant not to protect consumers but to “manage” them by monitoring their behavior.

“Mr. President, make no mistake, behind the veil of anti-Wall Street rhetoric is an unrelenting desire to manage every facet of commerce under the guise of consumer protection.

“They may be interested in protecting consumers, but they are more interested in managing them,” Shelby said.

Shelby also criticized the idea that Americans need government to watch over their every financial move, saying that it was better to allow people the freedom to make their own choices and fail than to never allow them the freedom to choose at all.

“Mr. President, I have faith in the American people and their ability to make good choices,” said Shelby.  “Granted, we do not always choose well.  But I believe that a poor choice freely made is far superior to a good choice made for me.”

“I am afraid that the architects of this bill do not share this sentiment,” he said. “Nor do they share my faith in the American people.”

Shelby further said that the ability of the Federal Reserve to collect such detailed information about the most basic of financial transactions was the beginning of an effort by government to regulate every financial action of every American citizen.

“This new consumer bureaucracy is intended by its architects in the Treasury to begin the process of financial regulation with the intent of changing the behaviors of the American people,” said the senator.

Shelby appears to be correct. The bill allows the bureau to collect any and all information on any person operating in the financial markets.

As it reads: “[T]he Bureau shall have the authority to gather information from time to time regarding the organization, business conduct, markets, and activities of persons operating in consumer financial services markets.”

Meanwhile, depending on the conference version of this bill, you may be able to fund a new federal agency that takes idle appropriations, invests them, and keeps the profits.  Those profits are ‘not considered the government’s property’. I am still trying to ascertain who that money actually belongs to because it is not yours anymore.

4.15.2010

Obama Turns Financial Reform Into A Political Fight

I am currently reading this bill and wanted to drop an interesting tidbit on you. For those interested in reading the 114 page Manager’s Amendment, go here. I am only a couple hundred pages into this POS but starting on page 60, a new government office is to be established. The “Office Of Financial Research” will be part of the Treasury, and will have a Director appointed by the President and confirmed by the Senate. This office will also have a data collection center to keep track of all financial and nonbank financial institutions so as to be able to report to Congress on companies that ‘threaten’ the economy. It is unclear how big or how many new government employees this office will create, but considering how events are unfolding now with Obamacare, I’m assuming pretty large.

The interesting tidbit pertains to the Financial Research Fund that is to be established and the ability of the Office that is providing Congress with reports to invest monies they aren’t using. Let me know if you think that’s a conflict of interest, and if you would like to know exactly how much money that is?

“Funds obtained by, transferred to, or credited to the Financial Research Fund shall be immediately available to the Office, and shall remain available until expended, to pay the expenses of the Office in carrying out the duties and responsibilities of the Office.”

The above quotes are from Chris Dodd’s markup draft. I went to the actual amended bill (Amendment No. 3739 of Bill S. 3217) that was passed and found the pertinent information starting on page 62, with the investment and non-governmental monies section on page 78. It’s still in there.

At this point, the underground economy is about to get a bit larger.

UPDATE: More information on the Office Of Financial Research, here.

Words Of Wisdom....

The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.

- Thomas Jefferson

Thomas Jefferson And American Sovereignty

"On every question of construction carry ourselves back to the time when the Constitution was adopted, recollect the spirit manifested in the debates and instead of trying what meaning may be squeezed out of the text or invented against it, conform to the probable one in which it was passed."

--Thomas Jefferson, letter to William Johnson, 1823

It is the sacred principles enshrined in the United Nations Charter to which the American people will henceforth pledge their allegiance.

- President George Bush (41) addressing the United Nations

Which will it be America? US Sovereignty or UN Slavery? - The Monster

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