By Catherine Austin Fitts
This e-mail was forwarded recently by Dr. Joseph Farrell:
Dear Dr. Farrell:
I get lost sometimes when financial matters are discussed. In particular, the concept of separate economies eludes me. Maybe you can help.
Can you explain what you (and Catherine Austin Fitts) mean when you say that the power elite are moving all of the good financial assets out of the “old” economy and into new economy of the black budget, and leaving the bad assets like mortgages and such in the old economy?
How do you take trillions of dollars of assets out of an economy? If it is being used to, say, make spaceships and weapons, isn’t it still used to pay the contractors who make these things? Last I heard, military and aerospace contractors like Boeing are still paying their workers and paying for their raw materials. Doesn’t that keep the money in the same economy all of us live in?
Confusedly Yours,
Harry
I responded:
Dear Harry:
Excellent questions. There is lots that address this phenomenon on the Solari Report.
As the global economy encompasses all parts of the economy – maturing industries and growing industries alike – as well as covert and hidden and overt and open – the funds are being shifted out of some legal entities while the liabilities are being left in the those entities – and in some cases, more liabilities shifted back in.
Just as there are many recipes in the Joy of Cooking, there are many ways that this is done. I give one highly specific example in my online book:
This case example was written to help readers understand how the financial engineering worked in one specific case. In this case, the taxpayers underwrote contracts and bonds that generated Wall Street profits on a highly uneconomic prison system that provided cheap labor to DOD and corporations. Think of this as a successfully marketed, more friendly version of slave labor that is intimately related to using narcotics trafficking to get control of private and government financial flows in places.
The most common example has been global “privatization” – where government assets are moved out of sovereign governments at below market value and liabilities moved back in at above market value. The bailouts and quantitative easing are other examples of a similar economic process.
This has moved many trillions out of sovereign governments into the hands of corporations and private investors, leaving the debt behind for the taxpayers to grapple with or fund by cutting pensions, debasing the currency, etc.
Some articles that cover these dynamics:
/financial-coup-d%E2%80%99etat/
http://www.dunwalke.com/gideon/q301.pdfhttp://www.dunwalke.com/gideon/privatization030402.html
Pumping and dumping the equity and other markets is another way to generate big profits. Enron is an example of a pump and dump that was pumped – I believe – by laundering money that was being stolen out of the US government:
As the money is moved out the question is where is it being reinvested?
I believe some is invested in the black budget – building and maintaining underground bases and transportation systems, advanced weaponry and technology, and space fleets and travel. It is likely that significant funds were set aside in an endowment to fund a private governance and control system through endowment earnings. Hence the military industrial complex is no longer financially dependent on the government tax flow being generated by sovereign governments. Rather, sovereign governments are left to manage an exploding amount of debt and derivatives after they and their citizens are relieved of their assets.
They are also investing in those parts of the economy where they see opportunity to provide for the activities they want or where there is opportunity:
1. New Technology – robotics, new material sciences, fabrication technology
2. Integration of technology in infrastructure and equipment in the heartland – including cars, trucks, trains, roads and bridges
3. Renewable energy
4. Build out of the suborbital platform/satellites to support a digital global currency/ies
5. Increased investment in space
6. Rebuilding the industrial infrastructure in the Anglo-American alliance
7. Population communications networking and control
8. Biotech and transhumanismTake a look at the last three Wrap Ups on the Solari Report and our interview with Jim Puplava on Megatrends.
Hope that helps,
Catherine
Then I received this note back from Harry:
Hi Catherine,
I delayed responding to your highly informative email message until I could get a chance to read the material at the links you provided. I hope you didn’t find that overly rude of me.
The reason is that I wanted to know just how effusive my thanks to you ought to be, and that depended on seeing if I was able to grasp how all this financial engineering worked. Well, I have to say that I now have a far, far better understanding of it and consequently am hugely grateful to you for taking the time to enlighten me, a complete stranger, as to what is going on.
One thing that puzzled me was why someone like myself, a one-time member of Mensa, had such difficulty grasping how this all worked. I came to the conclusion that the economic machinations that are going on are so far removed from my experience in life that I had trouble relating to them. My financial experience deals mainly with trying to make enough money to cover my expenses, and my wife and I don’t have much left over at the end of the month.
So all this talk about “pump and dump” and “qualitative easing” and privatization of utilities has little to do with my experience in life, and while I somewhat understood the concepts involved, I sort of automatically tuned it out whenever news about that would come to my attention. I’m just not in that level of society where big numbers relate to me. Maybe I just don’t think big enough.
However, I do see that it’s folks like myself, and my descendants, that are left “holding the bag.” And in order to minimize the impact of that, it is important to be aware of what’s going on and take whatever appropriate action one can. So your information was very, very useful.
There’s one other point that I would like to bring up, and that is that reading all of this material did not do much for my universally optimistic outlook on life. Again and again, I had to beat back feelings of “boy, are we being screwed and there’s really not much we can do about it.” Fortunately, I am optimistic by nature. And even though you explained how you managed to weather the assaults you had to face, I marvel that you did it and kept your sanity.
So again I want to say thank you for the information. I am particularly interested in the interview about entrainment that you referenced somewhere. I am sure that I will find lots more that will not only be useful and informative but fascinating as well.
Sincerely,
Harry
Harry:
You made my day. After reading your e-mail and the integrity with which you approached the information, I think you are going to enjoy the Solari Report archives – there is a lot you would find useful. Yes, certainly the entrainment discussion.
I appreciate how depressing it can be to face things. However, it is what builds your immunity. The more people who develop immunity, the more powerful we become to shift things to a more enlightened culture.
The economic wealth that could come from becoming a real civilization is quite optimism-creating!
Could I post our dialogue on the blog deleting your name and address? I think it would help others.
Best regards,
Catherine
As you can see, Harry said Yes!
