3rd Quarter Wrap-up

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The Solari Report 2013-10-03

Audio Chapters

Introduction and Theme “The Planetary Debt-to-Equity Swap”

Welcome Slide

Theme Slide

Wrap-up Slide

I. The Legacy Systems Downshift Catherine looks at the upcoming downturn in the legacy systems, and what events have indicated this trend.

II. Control Backfires Catherine looks at the some of the recent political blowback from control policies.

III. The Digital Heartland Revs Up Catherine looks at how new technology has the ability to help decentralize and also it’s ability to be deflationary.

IV. Space Beckons Catherine looks at the resurging interests in space development.

V. Wild Cards Catherine looks at some of the important stories that are occurring that might have unforeseeable repercussions.

VI. Financial Markets Catherine looks at the financial trends from the past quarter and what to expect going forward.

VII. Consciousness vs. The Trance Machine Catherine looks at the war for our minds and how to avoid becoming a victim.

Hero Our hero this Quarter is Masao Yoshida.

Hero Slide

Ask Catherine Catherine answers questions submitted by subscribers.

Ask Catherine Slide

Dear Catherine:

In my opinion, I believe that the purpose of the mainstream media, from the perspective of the powers that be, is to direct our thoughts, feelings, beliefs, opinions, and actions to serve their own best interests. What is your opinion on this?

I’m wondering why you appear to think that the falling price of solar panels will make solar a viable energy source. I think there are several technical problems that far out-weigh the cost problem. One is that solar energy is too diffuse and unreliable a source of energy for on demand electricity. SW deserts may have plenty of sunshine, but the rust belt does not, for example. Night is sort of a big problem, too, which is a smart alec way of saying that the energy storage issue hasn’t been solved the most obvious problem despite many years of attempts at cracking that nut. The weak link in solar systems is not the cost of panels, nor their poor solar gathering capability, but the batteries. Looking to the grid for storage doesn’t make any sense either, since the grid is not a battery.

Which leads me to another problem, which is that the grid is set up for centralized rather than distributed electricity generation. I suspect that a significant amount of re-engineering of the grid would be required to deal with unpredictable and distributed electricity sources, such as solar=96and wind, too. How would that be paid for?

Another problem with solar panels is that they are at least I’m pretty sure this is still true a net energy debt. That is, it takes more energy to make a solar panel than the panel generates in its useful life. (Maybe some one of your contacts can verify this is still true. It was true several years ago.) If this is correct, then clearly solar is not a viable technology.

I just don’t see solar substituting for coal in any efficient manner. I’m not convinced that it can be done at all, but to try would only lead to higher cost energy and concomitant economic problems. Are you for some reason downplaying these technical challenges? Or are you saying that tptb will ignore them and shove solar down our throats anyway?

Hello Catherine,

Here’s an analysis of the Syria situation that seems plausible to me…what do you think?

Hi Catherine:

Fascinating report on crowd funding. It left me with much to ponder and a few questions, the answers to which may help in my thought process.

1) What impact will the crash up in the stock market have on legacy companies? Will it mostly pertain to the “new economy” equities?
2) What will be the effect of the crash up on precious metals prices?
3) Have you changed your opinion on bit coin?

Many thanks in advance for your responses and thanks again for the great report.



As a homeschooling parent, I have watched the online educational opportunities explode in the past 10 years. However, the same questions always have to be asked: Who funds the school? What is the agenda? Sometimes that information is easy to obtain, sometimes not. Just as Common Core has the goal of being able to not only collect all kinds of information of every sort on every child (to be saved forever, apparently, with no guarantee of privacy), but brainwashing straight from Washington, D.C. that can be changed with the click of a mouse — many from Communist countries have commented on the incredible similarities between their Communist education and the Common Core. Khan Academy, for example, was bought a few years ago by the Bill and Melinda Gates Foundation. It is a wonderful educational site, but it is important to know the politics of the Gates Foundation and how that may (now and in the future) impact the education received there.

It involves very deep thinking and a lot of homework to figure out what education really is, and what it should be (not that everyone will agree, of course!), but it is never a waste of your time to do that homework. As a teaser… Find out why, prior to the advent of the public school system, at the time of the Revolutionary War, Massachusetts had a 97% literacy rate (far higher than today), and the bestselling “dime novel” of the day was The Deerslayer by James Fenimore Cooper. Try to read/listen to it. Then read/listen to a bestseller today. Find out how many books had to be sold to be constituted a “bestseller” back then (compared to the population), and how many today (compared to the population).
I bet you’ll be quite surprised — as I was — to find the massive deficits in your own education, in which we were all taught that right now we are living at the pinnacle of achievement of all societies, of all times.

Let’s Go to the Movies! Catherine reviews the film remake of The A Team.

Movie Slide


October 10: A Beginner’s Guide to 3D Printing with Onat Ekinci

October 17: A Jon Rappoport Report

October 24: Equity Overview with Chuck Gibson: Emerging Markets 101

Closing Slide

“There’s a plan in everything, kid, and I love it when a plan comes together.”
– Col. John ‘Hannibal’ Smith

By Catherine Austin Fitts

The world I refer to as the “legacy systems” is fading and a new world is being born.

But, what’s driving economic growth? How are events behind the scenes impacting economic growth? What does this mean to financial markets? Finally, what does this mean to you?

Let’s look back over the 3rd quarter of 2013…

The Legacy Systems “Downshift”
Now that the financial coup d’etat has moved trillions out of government funds and retirement systems throughout the developed world, an effort to reduce expectations is underway. The result is becoming very unpleasant for everyone.

Control is Backfiring
From engineering consent for a war in Syria, to eavesdropping on the G-20 leaders, to Putin playing the GMO-card, to exploding smart meters on homes, plans for “friendly fascism” are stalling and sputtering.

The Digital Heartland Revs Up
The financial coup has shifted capital into mechanisms which are reinvesting in technology and innovation at breakneck speed. But, this time it’s not just happening in Silicon Valley – new technologies are popping up in the U.S. heartland, whether it’s factories, farms or infrastructure.

Space Beckons
From Popular Science to the MIT Technology Review, talk of outer-space seems to be everywhere these days. NASA is moving forward in a privatized model at the same time that “coup capital” appears ready to make big bets on off-planet resources.

Join me on the Solari Report this week for a look at how these changes are unfolding. Solari Report Wrap-Ups are times when I step back to examine the deeper trends at work in our world. I’ll be sharing “wildcard” scenarios I keep on my risk-management list. I’ll also discuss my outlook for the fourth quarter and for financial market performance.

In Let’s Go to the Movies, we’ll look at the latest re-make of The A-Team. I love action movies and this one has the ideal “moral of the story” to help you stay amused in the 4th quarter.

Talk to you Thursday!

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