By Catherine Austin Fitts
This Thursday night on The Solari Report is our 2nd Quarter Wrap Up.
In our year-end wrap up, 2010: The Road Turns East, I said that in 2011 the economy would continue in a Slow Burn. Indeed it has. In the second quarter, numerous events underscored how the political economy is engineering the slow burn, including the maintenance of the dollar as the global reserve currency and the shift towards a new global currency system.
Our wrap up will look at the events of the second quarter through the lens of the use of the financial system as a governance system – re-enengineering sovereign nations through a combination of credit and debt management, free trade agreements and IMF deals. Indeed the system has become so bold that the head of the IMF can be removed with a tabloid sex charge, only to have the accusations come apart as soon as the preferred replacement is approved by the IMF board.
How do we connect the dots between allegations that the Army Corp of Engineers is flooding farmland, and then offering to buy out farmers cheap, the President signing a new Executive Order on Rural Development with the continued suicides of Indian farmers and the global push for GMO seed? How does the continuing global spraying contribute to unusual weather patterns that are accelerating the consolidation of agriculture? And what does the global control of farmland, seed and food supply have to do with the emergence of a new currency system?
In 1989, when the Berlin Wall came down, there were many discussions of how to unify East and West Germany. Pundits assumed that the process would be a political one and take years. Actually, it took no time at all. West Germany simply engineered an attractive exchange rate for German Marks to East German Marks that effectively represented a tender offer and established a united Germany through the currency. The political process followed quickly.
As more and more currencies reach parity with the dollar, are linked to the dollar and trade in tandem with the dollar, and gold and silver emerge as critical standards of value, we are watching the outlines of a new global currency system emerge. It’s like putting together a jigsaw puzzle when enough pieces are in place that you can start to see the outlines. A new governance system is being re-engineered through the currency and financial systems.
We will start with Money & Markets and Ask Catherine. In Let’s Go to the Movies, I will review a personal favorite, John Carpenter’s 1988 science fiction film, They Live.
Listen live on Thursday evening by phone, Skype or online, or listen at your convenience by downloading the MP3 after it posted on Friday.