Monday, 4 March 2002, 9:35 am
Column: Catherine Austin Fitts
By Catherine Austin Fitts
First published in the Narco News Bulletin
Originally Published Oct 2001
Part 1 – Narco Dollars For Dummies
Part 2 – Sam & Dave Do White Substances
Part 3 – The Ultimate New Business Cold Call
Part 4 – On Your Map
Part 5 – Getting Out of Narco Dollars
Part 6 – Georgie And West Philadelphia
Part 7 – Dow Jones Up, Solari Index Down
Part 8 – Fast Food Franchise Pop
Part 9 – At the Heart of the Double Bind
Part 10 – Drugs as Currency
Part 11 – In Defense of American Drug Lords
Part 12 – We Have Met the Enemy and It is Us
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Americans love a winner.
Solari Index Up, Dow Up, Debt Down
The good news on all of this is that there are solutions. New technology blesses us with the potential tools we can use to radically increase productivity in a way that can “jump the curve” on our narco dollar addiction.
Will it happen? I don’t know.
My pastor says, “If we can face it, God can fix it.” The question is can we face our addiction to narco dollars? Can we do it in a way that entrepreneurs like me can build successful businesses and transactions that profit from getting the Solari Index and the Dow Jones Index to go up together?
Sound impossible? Far from it. It’s quite possible. Add up all the current income generated by small businesses in America. It is currently valued at a multiple of 1-5 times because it is private-not publicly traded in a liquid stock market. Investors have no way to invest in a liquid publicly traded stock.
The creation of a solari, a local knowledge manager/databank that publishes neighborhood financial statements and information and tracks the Solari Index in your place, can make it possible for your neighborhood to create a mutual fund that could channel capital to the profitable small businesses in your neighborhood so that participating small business income could start to trade at a multiple of 10 times – even 20 times or 30 times eventually. The potential capital gains are in the trillions of dollars.
That is a lot of low cost capital that local entrepreneurs can use to create jobs and to build their businesses – even start new ones.
Better yet, while your doing that how about reengineering billions of federal, state and local government investment that has a negative return on investment to both taxpayers and communities to a positive return on investment. More big capital gains that can be securitized and traded in a liquid stock market—again the potential profits are in the trillions.
Finally, add up the value of all the homes and real estate in your community. OK, what would happen to the value of that equity if the Solari Index went back up to 100 percent? Real estate financed through a local trust or REIT or mutual fund that could be traded in the stock market would create a way for investors to start to “trade places.” That means they would profit from the Solari Index going up along with local real estate owners, homeowners and small business folks. Add some more trillions to the potential capital gains.
Helping the Solari Index rise back to 100% is the biggest capital gains opportunity in America, particularly when combined with reengineering government investment and pooling small business equity in a manner that provides competitive access to the stock market. Generations of accumulated narco dollars could do very well investing successfully in such a capital gains opportunity.
A trillion here, a trillion there—pretty soon you are talking about a lot of “pop.”
It can only happen if we can look into the face of our addiction and start having a conversation about how we move out of our current financial incentives that keep the Solari Index down to a more positive, sustainable and wealthy future for our children and grandchildren. For example, think about what would happen if every government worker in America had their annual salary fluctuate based on the performance of the Solari Index in their jurisdiction? I bet it would take about three years to get the Solari Index back to 100%.
That is why all the yah-yah in Washington about new stricter money laundering laws to deal with terrorism won’t work. If government officials and bankers can keep making money when the Solari Index is at 0%, it will not rise no matter how many people – innocent or guilty – we put in jail. The day we decide that government officials only make money for performance and all the companies that get money from government – whether contractors or banks that use taxpayers credit – only get money if we are better off and the Solari Index is rising, is when we will start to face and solve the real problems in a money making way.
It’s time to face our addiction to narco dollars and to grapple with how to reverse our incentive systems. It is time to figure out how publicly traded companies and our banks and insurance companies can make more money from our kids succeeding then from them failing. Indeed, it can be done.
So here is my last message on how the money works on narco dollars. Now that we have run the Solari Index down to near 0% while fueling the rise of the Dow Jones about 20X since I was a kid, the new opportunity is going to be the fortunes to be made on businesses and investment vehicles that fuel the Solari Index rising.
Wouldn’t you pay for streets to be sweet for your child once again? Especially if it made you a whole bunch of money on an IPO of your neighborhood mutual or venture fund in the stock market?
I want to make money on kids succeeding. I want to teach Dave a way to make more money by getting out of narco dollars and backing Sam starting a solari and “trading places.”
My money is on Solari rising.
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Bibliography
After three years of plowing through hundreds of books, videos and articles, here are the sources that I found most useful to helping me understand “how the money works” in the drug trade.
Assuming that you are a busy person who knows nothing about narco dollars and does not want to become an expert—-you just want to have a good map of “how the money works” in your world—-I have put an (*) next to my top four book and one video recommendations. These are the ones that will be the most useful to help you understand the drug trade and what it means to you, your family, your business and the Solari Index in your neighborhood.
Books:
Black Money, Michael Thomas (*)
Blowback: America’s Recruitment of Nazis and Its Effects on the Cold
War, Christopher Simpson
The Boys on the Tracks, Mara Leveritt. St. Martin’s Press, 1999.
Cocaine Politics: Drugs, Armies, and the CIA in Central America, Peter Dale Scott & Jonathan Marshall. Berkeley: University of California Press, 1998.
The Collected Works of Col. L. Fletcher Prouty, including, The Secret Team: The CIA and Its Allies in Control of the United States and the World, Col. L. Fletcher Prouty (Ret.), CD-Rom, available from The Center for the Preservation of Modern History, http://www.prevailingwinds.org
CRA$HMAKER: A Federal Affaire, a novel of love, death and the Federal Reserve, Victor Sperandeo & Alvaro Almeida, http://www.crashmaker.com/`
Dark Alliance, Gary Webb. New York: St. Martin’s Press, 1998. (*)
Deep Politics and the Death of JFK, Peter Dale Scott. Berkley: University of California Press, 1996.
Dope, Inc.: Britains Opium War Against the United States, Konstandinos Kalimtgis.
Double Cross: The Explosive Inside Story of the Mobster Who Controlled America, Sam & Chuck Giancana. New York: Warner Books, 1998
False Profits: The Inside Story of BCCI, the World’s Most Corrupt Financial Empire, Peter Truell & Larry Gurwin. Boston: Houghton Mifflin Company, 1992.
Hot Money and the Politics of Debt, R. T. Naylor. Montreal: Black Rose Books, 1994. (*)
The Money and the Power: The Making of Las Vegas and Its Hold on America, Sally Denton and Roger Morris
The Mafia, CIA and George Bush, Pete Brewton. New York: S.P.I., 1992.
Opium, Empire and the Global Political Economy, Carl A Trocki. Routledge: Taylor & Francis Group, 1999. (*)
The Politics of Heroin: CIA Complicity in the Global Drug Trade, Alfred W. McCoy Lawrence Hill Books, 1991.
Powderburns : Cocaine, Contras & the Drug War, Celerino Castillo, Dave Harmon
Red Mafiya : How the Russian Mob Has Invaded America, Robert I. Friedman, Little Brown & Company, 2000
Rulers of Evil: Useful Knowledge about Governing Bodies, F. Tupper Saussy HarperCollins, 2001
WhiteOut: The CIA, Drugs, and the Press, Alexander Cockburn and Jeffrey St. Clair. Verso, London:1998.
– AUTHOR NOTE: Catherine Austin Fitts, author of Scoop’s “The Real Deal” column, is a former managing director and member of the board of directors of Dillon Read & Co, Inc, a former Assistant Secretary of Housing-Federal Housing Commissioner in the first Bush Administration, and the former President of The Hamilton Securities Group, Inc. She is the President of Solari, Inc, an investment advisory firm. Solari provides risk management services to investors through Sanders Research Associates in London.
Anti©opyright Solari 2002