What’s Up with the Black Budget?

[This article was originally published in September 2003)

“What is relevant is what solves the problem. If we had thought through real relevancies, we would be on Sirius by now.” – Sir Peter Medewar

By Catherine Austin Fitts

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It is time to deal with the $64,000 dollar question — the biggest crazy aunt in the living room.

The questions that need to be raised in any effort to find the truth about any significant event related to power and money in the US — and answered if we are to ever find the truth of how our world works — are:

1. WHAT HAS BEEN THE SIZE OF THE U. S. BLACK BUDGET OVER THE LAST 50 YEARS?

2. WHAT ARE THE SOURCES AND USES OF FUNDS IN THE BLACK BUDGET?

3. WHO GOVERNS AND MANAGES THE BLACK BUDGET AND OPERATIONS?

4. WHY HAVE SO MANY DECENT PEOPLE SUPPORTED AN ILLEGAL BLACK BUDGET OPERATION OF SUCH MAGNITUDE FOR SO LONG?

5. IS THE WAR ON TERRORISM MOVING THE BLACK BUDGET ON BUDGET?

I do not know the answer to these questions.

What I do know is that asking these questions brings up an endless flow of questions about government corruption and dirty money. (For background on my experience dealing with black budget/slush fund operations at FHA and Ginnie Mae at the Department of Housing and Urban Development (HUD), Justice, Treasury and the New York Federal Reserve Bank, see my article, “The Myth of the Rule of Law”)

When dealing with these questions, I find that many researchers simply delete their existence from their reality. That is a big mistake — again pretending that we do not have a very big crazy aunt sitting in the living room. George Orwell once said that “Omission is the greatest lie.” Hence, our crazy aunt has to be dealt with.

If you listen to the Ferdinand video/audio depositions in the Carone/Tyree lawsuit, what you will hear is something I have heard many times. Carone gives his family the sense that all of the organized crime operations by CIA, Army and Mafia through the 1970’s had a legitimate national security purpose that then got out of hand and turned bad in the 1980’s. That is, what started out as justifiable got out of hand. This begs the question: Why were such activities considered justifiable?

One way to manage uncertainty is with scenario design and probability. We create a framework of the possible explanations with best estimates of plausible scenarios and the probability (all adding up to 100%) of each one being true based on intuition. Maintaining such a framework allows data collection on key variables and assumptions and an evolution to occur that can enlighten collection of information, inform research and investigation — even determine — concrete answers over time.

So, let me tell a story, give you my framework that I use to handle the fact that I do not have the answers and invite your framework. I am not looking to hear only what is wrong with my framework. I am looking to improve mine, find a better one, or inform my estimate of the probabilities that this one or that one is true. Hence, I invite you to put forward your framework. If we had the truth of the issue I am going to introduce, I dare say we could get to the bottom of 9-11 faster.

In 1998, I was approached by the head of a small military think tank in Washington, DC – let’s call him John.  I had gotten to know John through a California network focused on strategic planning.  John asked me to help him with a high level strategic planning project he was planning to undertake for the Undersecretary of the Navy.

At the time I was the target of an intense smear campaign that would lead the normal person to assume that I would be in jail shortly or worse. John explained that the Navy understood that it was all politics —- they did not care.

I met with a group of high level people in the military in the process. I had John, the Undersecretary and his wife over to my house for a lovely brunch. Finally, I asked John to explain the real goals of the project. According to John, the purpose of the plan was to help the Navy adjust their operations for a world in which it was commonly known that aliens exist and live among us.

When John explained this purpose to me, I responded that I did not know that aliens existed and lived among us. John asked me if I would like to have lunch with some aliens. Surprised at the offer, and concerned about the ongoing smear campaign and my obligations to people depending on our success in the litigation I was managing, I told John that I was “managing too much risk to be seen lunching with aliens.”

An unusual step for me, I declined an opportunity to learn about something important. I was concerned that my efforts with John and the Navy could boomerang. I regret that decision. At John’s suggestion I started to read books on the topic and read about 25 books over the next year on the alien question, the black budget, and alien technology.

I had to drop from the project due to the need to attend to litigation and the harassment and surveillance of me and some of the people helping me. This process —which turned out to be incredibly time consuming — I now believe was connected with the black budget/slush fund activities connected with FHA and Ginnie Mae at HUD and the engineering of a fraudulent housing bubble. (See, “The Myth of the Rule of Law”) John then asked me if I would join the board of his institute.

When I attended one of my first meetings, I joined in discussion with about ten board members which included a former head of the CIA in the Clinton Administration, a founder of the California strategic planning network and a variety of entrepreneurs and business leaders. The main topic of discussion was whether or not the institute’s lead project for the coming year should be a white paper on how to help the American people adjust to aliens existing and living among us. I said nothing — just listened. Not that long after, I dropped from the board due to the continued demands related to managing litigation.

To cut a series of additional long stories short, when I talk with my sources from the military and intelligence community, I hear the same themes:

1. Aliens exist and live among us;

2. In part for this reason as well the accumulated investment over the last 50 years, the technology and weaponry we have access to through the black budget is far more advanced than is commonly understood;

3. The black budget was created to deal with and finance this issue, which is why reasonable people thought selling drugs to the children who were US citizens was the better of several options — including the option of telling the American public the truth and funding the expenses on the legal, more transparent budget.

As a result of these experiences, here is my framework for dealing with the black budget and so-called “alien question:”

ONE OF THE THREE FOLLOWING POSSIBLE SCENARIOS MUST BE TRUE

SCENARIO #1. ENTRE NOUS: The alien question is the single largest and most expensive disinformation campaign in the history of our race. A portion of the human race has advanced technologically so far beyond the rest of us — and is attributing various things to aliens as a way of managing their resulting risk—that we have become as aliens to each other. To fully understand this scenario, we must understand the use of individual mind control such as criminal hypnosis to effect financial and government fraud and corruption and wider entrainment, subliminal programming and brainwashing.

% PROBABILITY SCENARIO #1 IS TRUE ______ (You fill in)

SCENARIO #2 HOLY COW!: Aliens exist and live among us. Planet earth is subject to the politics, economics and laws  of a larger governance system or systems. The transfer of advanced technology into a society that has not evolved governance and legal systems to manage a world with the presence of such technology and the influence of such other system(s) helps to explain current events.  Again, to fully understand this scenario, we must understand the use of individual mind control such as criminal hypnosis to effect financial and government fraud and corruption and wider entrainment, subliminal programming and brainwashing.

% PROBABILITY SCENARIO #2 IS TRUE ______ (You fill in)

3. SCENARIO #3 MUDDLED: Some combination of (1) and (2) above.

Aliens exist and living among us on occasion, but most of the UFOs flying around were built by government contractors at Area 51 and are being used to justify more central control by the people who want more funding to build more of them.

% PROBABILITY SCENARIO #3 IS TRUE ______ (You fill in)

TOTAL % PROBABILITY OF SCENARIOS #1,2 & 3 BEING TRUE = 100%

Could my experiences with the institute and Navy fit with a disinformation scenario? Absolutely. I have no evidence to support any one of these scenario. The only evidence  I have is my experience dealing with tremendous amounts of money siphoned off over the years, whether through Iran-Contra S&L, HUD and BCCI fraud, or the latest round of money missing from the federal government in the last five years. This is all documented. This cash flow and the operations and syndicates it appears to fund are important to what drives the governance and allocation of resources in this country and around the globe. There is a reason that power and money are centralizing and the rich are getting richer. I want to know what it is.

If we had the truth it will help us grapple with 9-11 and the War on Terrorism. It would also help us better understand all the efforts to press for centralization of economic and political power that have grown as the black budget has grown since WWII. The reality is the possibilities of why 9-11 occurred and how it was operationalized are impacted by the facts of the US black budget and the advanced technology it has developed.

We should sit in the shoes of the person or people who gave the order —whoever they may be and wherever they may be —- and understand how their power and money worked. Why would a group with the operational and financial capacity to effect a 9-11 operation give the green light to plan 9-11, finance 9-11, do 9-11, stand down so 9-11 could happen, take advantage of 9-11 or to make sure the truth was not illuminated?

My experience in Washington and Wall Street would indicate that there is a reasonable chance that all these various people and many in the food chain are not bad or irrational people.   That is, we have a better chance of finding the truth if for purposes of our explorations we assume that the people involved in all these roles were people like you and me — just with a different map of certain parts of the world and dealing with a variety of stress and pressures trying to build cooperation or achieve goals that we do not understand.

Watching the federal government contract announcements and without benefit of seeing the full budget and assuming The Disclosure Project allegations regarding the estimates of the black budget size, if I had to guess today my guess would be that 9-11 has been highly successful in permitting the black budget to be moved on budget, partly in the normal budget and partly in the budget that is only disclosed to the Congressional intelligence committees.

The solution to continued growth and funding of the black budget may have been to steal as much money and assets as possible from the federal budget and then to move the black budget on budget when control of media, Congress, Justice and Securities & Exchange Commission ensured that the legal budget was non-transparent, controlled by private government contractors and could not be harmed or fiddled with by Congress. Grossly oversimplified, by the end of the 2004 fiscal year, covert operations and the black budget may be fully legal, run and controlled by corporations and banks without interference from knowledgable career civil service, taxpayer funded, and non-transparent.

Why do I say all of this? Money, budgets, finance…these are all facts. If something does not work, and it continues to not work, there is a reason. Systems have a logic. They have a rationale. Money helps explain and illuminate that rationale.

9-11 was an operation that was implemented by a conspiracy. To get to the bottom of what happened and why one must develop and use theories to research. We know in regards to 9-11 one of two scenarios must be true —- some portion of the US military and intelligence are (i) complicit and/or (ii) guilty of criminal gross negligence. We also know that the official story is not truthful. Either scenario and the reality of the official story beg the question, “why?” This course always leads us to consider the fact that US military and intelligence have enjoyed significant expansion of their budgets and powers as a result of 9-11.  9-11 was great for business. Lockheed Martin’s stock is up over 50% in a falling stock market. The oil companies have their pipeline.

When a system does not work and continues to not work, there is something that prevents its learning. Ultimately what we must understand that the problem is not that the system does not work and that it is not learning. The problem is that the system is controlled and operated by the most powerful forces in that system and that the system is indeed working and learning in the general direction they want it to go. This happens in a manner that is highly organic and requires lots of planning, trial and error and factionalism that involves competition and cooperation over time in the pursuit of the system’s real goals. Hence, the system is working and is learning. It is our construct that is wrong. We do not understand the system and the goals of the system. Once we are clear that the system is working and is learning, once we stop falling back on scapegoating as a technique to explain events, we can start to understand the real system that we are a part of. This is how power and money work in reality.

Let me close with the unanswered questions with which I began and which I believe are critical to our ongoing collaboration:

1. WHAT HAS BEEN THE SIZE OF THE U. S. BLACK BUDGET OVER THE LAST 50 YEARS?

2. WHAT ARE THE SOURCES AND USES OF FUNDS IN THE BLACK BUDGET?

3. WHO GOVERNS AND MANAGES THE BLACK BUDGET BUDGET AND OPERATIONS?

4. WHY HAVE SO MANY DECENT PEOPLE SUPPORTED AN ILLEGAL BLACK BUDGET OPERATION OF SUCH MAGNITUDE FOR SO LONG?

5. IS THE WAR ON TERRORISM MOVING THE BLACK BUDGET ON BUDGET?