By Catherine Austin Fitts
Everyday we are presented with two diverging economies in North America.
Bailouts and quantitative easing have extinguished the outstanding fraudulent securities that financed the financial coup d’etat. So now the boom is now being lowered on the “legacy” systems.
Think of it this way. The legacy systems (including parts of federal, state and local government) had $100 trillion of assets and $100 trillion liabilities. The coup engineered $40 trillion into new legal entities. (Let’s call them “Breakaway Inc.”) The liabilities stayed behind.
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The job of the legacy leadership is to manage a drawn out process that manages the slow burn and $60 trillion of assets is bled to cover $100 trillion of creditors and beneficiaries, many of whom will be disappointed. Many will get less than 100% on the dollar. Many will have an enormous amount of time wasted, as they try to access various benefits or exercise contracts only to be given the endless run around.
The legacy leadership is busy rounding up taxes and capital from the tax havens, abrogating union contracts in places like Michigan and trying to squeeze state and local pension funds. They look and sound increasingly goofy. That is because experience has made it clear that there is not yet a political constituency for fiscal and monetary responsibility. [I keep praying that it will emerge!]
Moreover, if they try to get the $40 trillion back, they will be killed. If they try to mention that it is gone and how it has been positioned and invested, the crowd will laugh at them. Leaving the matrix that fast is a bit of a stretch.
Meantime, the leadership of Breakaway Inc. is having a good time. While it will be good to squeeze whatever they can from the US budget, the fact is their new endowment gives them an ongoing fee flow. They have achieved financial independence. Don’t believe me? Check out the charts of the large defense contractors. Does this look like the chart of a company whose income is threatened from the last round of sequestration cuts or worried about the next round?
Lockheed Martin Corporation YTD (Click chart to view larger)
It is good to note, that Lockheed is not only the largest overall contractor, the largest IT contractor as well as defense contractor to the US government but their responsibilities also include running many of the accounting and payment systems. So they not only do the work for and sell the goods to the US government, they get to write the check to themselves.
Check out Popular Mechanics, Popular Science, Wired Magazine. Everything is full of space travel. We now are calling for people to be part of a one way expedition to Mars. Aerospace manufacturing is up by a lot. Silicon Valley entrepreneurs are proposing mag-lev trains and space mining. Think about it, many more billionaires under the governance jurisdiction of people who can kill with impunity means pools of capital to fund these enterprises.
Breakaway Inc. is going gangbusters. They are organizing and funding the NEXT phase.
This is why I keep saying, the country is not broke whatsoever. The legacy systems are being re-engineered.
It is a very different story.
