2011 Wrap-up / 2012 Beginnings

By Catherine Austin Fitts

Happy New Year!

This is the year we have all been waiting for…2012. It will be an interesting year — full of challenges, opportunities and surprises.

Change is in the air. We are moving through multiple changes – in our lives and in the culture and economy around us. It is a time to remember that breakdowns bring breakthroughs.

This Thursday night on The Solari Report (6pm PT/9pm ET)  is my annual wrap up. I will cover the key events of 2011 and important trends going forward into 2012. Topics include:

  • The Demographic Imperative
  • Transformations and Awakening
  • Science and Technology
  • Planet Earth
  • The Half Pregnant Empire
  • Financial Coup d’ Etat & the Slow Burn
  • Market Round Up
  • Solari Report Highlights
  • The Unanswered Questions of 2012
  • Heroes
  • New Year Resolutions
  • Predictions for 2012

In Let’s Go to the Movies, a comment on what the Afghan game of buzkashi (see scenes in Rambo 3 and The Horsemencan teach us about managing our finances in markets defined by intense economic warfare.

This will be a two hour special with a  transcript available later this month.


  1. I have two questions; first, given the volatility and loss potential in all markets today, including precious metals, is distributing some funds from a trust to participants becoming a responsible move? If a trustee is unable to safely earn a return and participants have debt in their lives this seems to be a prudent move.

    Second, after the MF Global fiasco, we’re concerned with re-hypothecation of money in a brokerage account. At first, I thought that this could only happen with margin accounts typically used in futures trading but Karl Denninger has written a couple articles claiming otherwise:

    “And finally, let me reiterate what I’ve said since this story broke: So long as there are off-balance-sheet liabilities and derivative contracts have preference over deposits — both of which are true in the present time — this very same risk is present for anyone with a BANK OR INVESTMENT ACCOUNT OF ANY TYPE in The United States. If you believe otherwise you are wrong.”

    It looks as though even FDIC and SPIC could be overwhelmed as the system is becoming unhinged. Should we spread money among several accounts and avoid brokers that are active in trading on their own? Are discount brokers less likely to engage in this type of activity?

    Thank you, and top of the New Year to All!

    Larry Larkin

  2. Hi Catherine,

    Happy New Year!

    Question: Some have noted this past summer that Bernanke and the Fed took an unusual position by putting a time frame on continued low interest rates through 2013, as opposed to low interest rates until a certain trigger has occurred. It has been suggested that Bernanke’s hands are somewhat tied by the derivatives market. As there are nearly $600 trillion in interest rate swaps and $50 trillion in credit swaps (all notional value), that any significant change in interest rates may cause the contracts to execute, thereby causing another financial meltdown. As a result, Bernanke has incentive to keep interest rates low, inflation reasonable, and unemployment high for not just 2 years, but for another 10 to 20 years or whatever the length of the derivative contracts outstanding. Your opinion?

    Hope your next year will be just as moving and inspiring to us as the last.


  3. Catherine,
    Thanks for an abundance of well-researched information and great guests. I just read Susan Lindauer’s Extreme Prejudice – have you ever entertained the idea of bringing her on as a guest? She would have much to contribute to your brand of audience.

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