The Solari Report
3rd Quarter 2016 Wrap Up

Introduction

"Cut and run or cut-and-run is an idiomatic verb phrase meaning to "make off promptly" or to "hurry off". The phrase originated in the 1700s as describing an act allowing a ship to make sail quickly in an urgent situation... The phrase is used as a pejorative in political language, implying a panicked and cowardly retreat..."" ~ Wikipedia

By Catherine Austin Fitts

These six words or phrases at hand capture the essence of the news during the last three months:

1. Cut and Run:The signs are significant that insiders are moving monies out of the system. The biggest story of the 3rd Quarter was the announcement from the US Department of Defense Inspector General that DOD had undocumentable adjustments for the fiscal year 2015 of $9.3 trillion, or $30,000 for every man, woman, and child in America.

2. Monica Lewinsky II:Just as the Monica Lewinsky scandal and the related impeachment proceedings distracted Americans from noticing that trillions were flowing out of the federal government in fiscal 1998, the first year of the financial coup d’état, so sensationalism and disinformation related to the US presidential campaign have distracted us from the DOD Inspector General announcement and the related symptoms of "cut and run," including the sale of Monsanto, the divestment by Lockheed Martin of its IT business, phony accounts at Wells Fargo, and the US-German politics related to Deutsche Bank.

3. Crazy Man vs. Criminal: In a recent editorial, Peggy Noonan wrote that America's choice is coming down to Crazy Man vs. Criminal. The campaign becomes crazier and more criminal the closer we get to Election Day. One of the biggest losers of the 2016 campaign is the corporate media, of which all credibility is sinking now to a new low.

4. Constitution: Can we protect the US Constitution from assaults from all sides? If we want to protect it, we must enforce it. First and foremost, we must insist that monies and assets that have gone missing be identified and returned.

5. War: The birthing pains of a multipolar model are upon us. The tensions between the United States and Russia are rising, with negotiations in Syria breaking off right after the end of the 3rd Quarter. A global economic slowdown contributes to these tensions. Jack Ma, founder of Alibaba, said it best in the 3rd Quarter: "Wars start when trade stops."

6. Uncertainty: The number of future scenarios grows daily. Some days anything looks possible. Each of us must make personal decisions and move forward regardless of uncertainty.

Our 3rd Quarter Wrap Up will be presented throughout October in four parts:

• News Trends & Stories, Parts I and II. We begin with a fascinating discussion with Dr. Joseph P. Farrell, of the top news trends and stories. In the first week in part I, we will look at Economy and Financial Markets and Geopolitics, including a serious discussion of "cut and run" and the growing signs that insiders are pulling significant money and assets out of the US government and spinning out and cashing out of major investments and liabilities. The following week in part II, Dr. Farrell and I will cover Science and Technology and The Big Questions. Make sure to check the full listing and links on the News Trends & Stories section.
 
• Financial Market Roundup: In the third week, we will combine a written Blockbuster Chartology from master technician Rambus with my Equity Overview. Make sure to see the charts in our Financial Market Roundup section.
 
• Investment Screening: Can We Filter for Productive Companies? Finally, in the fourth week, comes our central and biggest topic. I look at the investment screening industry and ask whether it is possible to filter for fundamentally productive companies. In August, investors in private prison companies found their stock price down by almost 50% as a result of changes in government policies. Wells Fargo stock is down by 18% this year, in part because of a scandal related to falsification of accounts. As the debt-financed growth model comes to an end, investors in companies that are not fundamentally productive face a new set of risks. As discussed in our 2nd Quarter Wrap Up, productivity growth is essential to a more peaceful, prosperous global economy.

We anticipate an adventurous 4th Quarter at Solari. In October, I will be on the road in Pasadena, Tucson, Austin, then a Sunday Brunch with Catherine in Dallas, and a week in Boulder and quick stop in Denver on my return to Tennessee. Best of all, I will be in Tulsa on October 15th for the Launch Party for the Joseph P Farrell Pipe Organ Crowdfund. You will be hearing more about that when we launch in October. I am back to Europe in late October for several weeks, and then I head to Montana.

Everywhere I go, I have the opportunity to meet Solari Report subscribers. You are a constant reminder of how many wonderful people are in our world.

On behalf of the entire team at the Solari Report, I wish you a free and inspired 2016!