Catherine Austin Fitts on Wall Street's Corruption, the Austrian School and Who's 'Really' in Charge
The Daily Bell is pleased to publish this exclusive interview with financial advisor Catherine Austin Fitts.
Introduction: Catherine is the president of Solari, Inc., publisher of The Solari Report, and managing member of Solari Investment Advisory Services, LLC and Sea Lane Advisory, LLC. Catherine served as managing director and member of the board of directors of the Wall Street investment bank Dillon, Read & Co. Inc., as Assistant Secretary of Housing and Federal Housing Commissioner at the United States Department of Housing and Urban Development in the first Bush Administration, and was the president of Hamilton Securities Group, Inc. She graduated from the University of Pennsylvania (BA), the Wharton School (MBA) and studied Mandarin Chinese at the Chinese University of Hong Kong.
Daily Bell: For those who don't know, give us a rundown of your current business and economic preoccupations.
Catherine Austin Fitts: I publish the Solari Report (solari.com), a private bridge call and blog focused on building personal and family wealth. I also provide investment advisory services through Solari Investment Advisory Services LLC (solariadvisors.com) and Sea Lane Advisory LLC (sealaneadvisory.com)
Daily Bell: Give us a sense of your background and childhood.
Catherine Austin Fitts: I grew up in Philadelphia in the United States. As a child, I witnessed the destruction of wealth by networks engaged in organized crime and financial fraud and the covert operations that supported them. It started a life-long fascination with understanding how money and the financial system work, including in places, and how healthy cultures could prevail.
My mother was an economist who retired from the Philadelphia Federal Reserve to have children. My father was a surgeon and trauma expert who loved caring for people. I watched them struggle with the growing corruption as it ultimately tore our family apart.
I traveled around the world during college, studying Mandarin in Hong Kong, and then graduated from the University of Pennsylvania and received an MBA at Wharton. After graduation, I went to work at Dillon, Read & Co. Inc., a small Wall Street investment bank that is now a part of UBS. I chose Dillon Read as the firm offered me a chance to work in many different areas. I kept moving from one area and type of work to another, trying to understand different parts of the economy and financial system.
Dillon had a tradition of public service. After I became a managing director and member of the board, we sold the firm and after our initial employment contracts ended, numerous members of the firm joined the Bush Administration. I did as well, becoming Assistant Secretary of Housing – Federal Housing Commissioner in 1989. After serving in the Bush Administration for 18 months, and deeply disturbed by the mortgage fraud, I left and started an investment bank, Hamilton Securities Group. My hope was to use software technology and the Internet to help decentralize the capital raising process in a manner that could, in combination with government reengineering, revive the US economy and improve pension fund returns as globalization was shifting significant employment and income abroad.
Decentralizing the economy in a manner that grows decentralized equity ownership was not the direction taken by Washington and Wall Street. Instead, the strong dollar policy was instituted and a debt bubble, led by a global housing debt bubble, financed enormous shifts of capital globally in a manner that aggressively centralized political and economic control. I have described this process as a "financial coup d'état." (See solari.com/blog/financial-coup-d'etat/).
To help facilitate the US housing bubble, the federal government targeted Hamilton. I spent eleven years engaged in litigation. This process forced me to research the US black budget, including related organized crime and financial fraud both domestically and globally.
I have described these events in detail in writings available online. (See the links at www.dunwalke.com/gideon/, including the link to my online book: Dillon, Read & Co. Inc. & the Aristocracy of Stock Profits).
During that time, I had a number of private families request my assistance in protecting their assets from the risks created by the changes underway. I found that I very much liked helping individuals and families directly. Consequently, after completing the litigation, I started Solari Investment Advisory Services.
I had a number of my clients in funds managed offshore. After Dodd Frank, the funds were returned to US investors and I started Sea Lane Advisory with my partner Chuck Gibson of Financial Perspectives in the San Francisco Bay area to provide an alternative.
Daily Bell: Are things getting better or worse from a corruption and freedom standpoint in the US?
Catherine Austin Fitts: Things are getting worse. On a positive note, there are some advantages to have the "beast" come out of the closet.
Daily Bell: Give us a summary of your perspective regarding Wall Street – and what happened to you in a little more detail.
Catherine Austin Fitts: I think Wall Street is the pit bull, not the master. The $64,000 question is, of course, who is really in charge and why are they behaving this way?
I have had the opportunity to operate at high levels in Washington and Wall Street and have never met a person who did not function as if they were a prisoner of the system. Often, that "system" did not permit them to function on a lawful basis. This implies highly centralized governance if this many people are functioning in an insecure, limited or unlawful way.
The people who manage our financial system are also operating with significant double binds. This is what I try to describe with my red button story:
"In the summer of 2000, I asked a group of 100 people at a conference of spiritually committed people who would push a red button if it would immediately stop all narcotics trafficking in their neighborhood, city, state and country. Out of 100 people, 99 said they would not push such red button. When surveyed, they said they did not want their mutual funds to go down if the U.S. financial system suddenly stopped attracting an estimated $500 billion - $1 trillion a year in global money laundering. They did not want their government checks jeopardized or their taxes raised because of resulting problems financing the federal government deficit."
So it is not appropriate to assume that the corruption is just at the top. Indeed, most citizens in the first world have been the economic beneficiary of what James Turk calls "the central banking-warfare model."
At the same time, we have all been limited by suppression or control of knowledge and technology that could significantly improve global living standards. The spiritual, environmental and cultural costs of this model are enormous.
What my experience helped me to understand is that we are governed by a group of people who have the power to kill, and otherwise break the law, with impunity. As the Secretary of HUD once said in my presence, "I don't have to obey the law, I report to a higher moral authority."
This power appears to come in part from the ability to use deeply invasive digital systems to gather intelligence, transact and monitor as well as from invisible weaponry, including satellites and weaponry controlled or delivered from space.
As Western countries move investment into the emerging markets, their satellites and military move to police this global investment. Investors do not invest where they cannot enforce. So in a sense, financial globalization is pressuring the United States to become a global military empire.
Daily Bell: Can Wall Street be cleaned up?
Catherine Austin Fitts: Of course it can. However, before it can, the question is: What is the investment and financial model that will replace the central banking-warfare model and how will it be implemented? Part of the economic warfare that is raging throughout the financial markets relates to the squabbles between the different countries and factions that want to come out on top. The greater the uncertainty about the model and the greater the change, the uglier the process will be.
Depending on the politics, market forces and new technology have the potential to significantly reduce Wall Street's market share in the global financial system.
Daily Bell: Is the SEC the regulator to do it?
Catherine Austin Fitts: Our society has integrated warfare with financial markets. So, for example, if we want to checkmate the Chinese, the oil price is driven up. Or when Treasury wanted to bubble the dollar, the gold price was suppressed. Yelling at the SEC or the CFTC to regulate more is not going to solve the problem. In a sense, to regulate in these markets you need the SEC to team up not only with the CFTC but also with DOD and ONI. And they need to coordinate with their counterparts around the world. And you need greater literacy in the investing public about how financial systems really work.
Our political class believes that dumbing people down and using controlled media, entrainment technology and subliminal programming to manipulate is the way forward. I am from the Winston Churchill school, "Tell the people." The greatest waste in our society is the broad-based intelligence that is not being unleashed because our markets are not truly free markets.
Clearly, the political class has been instructed to make sure they do not work.
Daily Bell: Does financial regulation work? Will more work better?
Catherine Austin Fitts: The Tao Te Ching says:
The more restrictions and prohibitions there are, the poorer the people become
The sharper the people's weapons are, the more national confusion increases?
The more skill artisans require, the more bizarre their products are?
The more precisely laws are articulated, the more thieves and outlaws increase
More laws or regulation will not address the underlying failure of enforcement and the need for a new investment model.
Daily Bell: Would markets be better off if they were MORE free and private watchdogs were allowed to take over from public ones?
Catherine Austin Fitts: Not necessarily. Again, we need to address the question, "Who is the breakaway civilization, what are their weaponry and surveillance systems and what systems will work successfully to shift their behavior in a positive manner?" This, of course, leads to additional questions, such as, "What do they know that we do not know and how would we behave if we had that knowledge?"
Setting private watchdogs to regulate these guys is a bit like landing on Normandy Beach with a water pistol.
This enforcement question is one of the reasons I focus on the power of transparency combined with individual intention and action to bring positive change.
A few regulators are an easy target. Millions of private citizens and investors shunning dirty players in the markets are not. Globally, they become a mighty force. However, that means that as a cultural matter the human race must become deeply committed to respecting everyone's individual rights, not just one's own.
Daily Bell: Are central banks responsible for much of the current chaos?
Catherine Austin Fitts: This takes us back to the central question – who is in charge and why are they behaving the way they are behaving? I don't think we know the answer to those questions.
Daily Bell: Would you like to see central banks shut down? Or do you think banks like the Fed ought to be nationalized, as Ms. Ellen Brown wants?
Catherine Austin Fitts: I agree that a Federal Reserve System under the ownership and control of the US government would better serve us in a system in which the information and clearance systems are owned, controlled and operated by government employees NOT by private defense contractors and where the rules regarding access to information are strictly observed and enforced.
Of course, that means we would have to return the Treasury and US agency information systems back to government employee management.
If you map out the information systems and databases at the US government, including at the Department of Justice, the SEC and the US Treasury, you will understand why I say that there has been a financial coup d'état. There has also been a financial data coup d'état.
During the hearings on Enron, I pointed out that the Department of Justice had not asserted control of Enron's documents. However, as the chairman's of Enron's finance committee was a key investor and board member in a company that was running information systems for the Department of Justice and the SEC, it would appear that Enron insiders had asserted control of the government's documents.
Can you imagine investigating someone who is a controlling investor in a company running the information systems for your enforcement division? How is that supposed to work?
Financial sovereignty requires information sovereignty.
Daily Bell: Let's switch gears. If the United States is an empire, will this century see another power rise to challenge it? China perhaps?
Catherine Austin Fitts: The greatest threat to US hegemony in Asia is Japan. Or at least it was Japan until Fukushima happened.
I don't underestimate the threat that Germany poses, particularly if we get a real split of the Anglo-American alliance from the continent as a result of the re-arrangements around the euro and Germany grows closer to Russia. Remember, one of the reasons that the European Union happened was that the rest of Europe, with bitter memories of WWI and WWII, wanted to integrate Germany into the whole of Europe.
China is formidable, but they are checkmated by the need to feed and employ such a large population.
Right now, the United States's lead in satellites, weaponry and control of the sea lanes makes it dominant. The question is how long that can continue if America itself devolves into a barbaric country. Force and technology alone do not result in greatness and the invasiveness of the model has become not just financially oppressive but deeply perverted.
As China is burdened with a large population, the United States has an aging population that is not prepared for the changes underway. How the US is going to manage their expectations and fund their retirement is an unanswered question.
Daily Bell: The invention of the Gutenberg Press was, in our opinion, the proximate cause, eventually, of the Thirty Years peasant war that raged across Europe – a war generated by an elite that had the most to lose from the Gutenberg Press's ability to bring literacy to the masses. Are we seeing a similar paradigm today?
Catherine Austin Fitts: Yes. Digital technology permits higher learning speeds generally. However, it also makes highly centralized management and manipulation possible, aka "the matrix."
Daily Bell: Is war necessary for those in charge of the US Empire to maintain control?
Catherine Austin Fitts: Yes. The US Empire is financially dependent on the violation of individual rights globally and access to cheap natural resources. This requires various forms of covert and economic warfare as well as overt military wars.
Daily Bell: Once the Empire topples, or as it does, will another take its place?
Catherine Austin Fitts: I do not assume that the Empire will topple. It has the ability to NOT topple. Whether it does or not is a political and military question – not an economic or financial question. The Empire's challenge is how to maintain liquidity without trust and how to maintain productivity without markets. It is trying to do too much with force and covert methods.
If it does topple, the competition to become the regional hegemons will accelerate and organized crime will move into the power vacuum.
As ugly as the Empire can be, there are uglier forces at work. Ask yourself: Does the Russian mafia have nuclear weapons? I assume so.
Daily Bell: What would be the result of more global centralization?
Catherine Austin Fitts: It would be more of the same – including increases in poverty, slavery and depopulation. Aaron Russo knew what he was talking about when he said warned us that these folks want spy chips in everyone and everything.
Daily Bell: Is a gold standard, or a gold and silver standard, the normal outcome of a peaceful, market-based society?
Catherine Austin Fitts: Not necessarily. Currency systems are part of governance systems. We should look at the currency question integrated into the question of who is going to govern and manage and in what process with what kinds of disclosure.
For example, there are many attractive features of a gold and silver standard. However, the ownership of precious metals is limited to a small group of the global population. If we suddenly adopt gold and silver as our currency standard, it will benefit a small group of people in a manner that could make things worse.
Nevertheless, I would far prefer that to a digital system working through the Internet and hand-held devices that allow all financial data to be centrally accessed and controlled.
Bottom line: Don't fall into the trap of proposing currency systems on a stand-alone basis. You want to know who is going to run things and with what processes and disclosure. Then you get into the aspects of the different financial tools that help us do that.
When I look at a company, the first thing I look at is the quality, experience and networks of the people who govern, manage and own it. It is the same with the global financial system. Without high quality people who are free to govern in the best interests of all concerned or as stated by law, charter and contract, there are no solutions. Put excellent people in charge throughout society and I assure you they can run things remarkably well, even if forced to struggle with lousy currency systems.
Along with better currency systems, we also need to shift out of dependency on debt and into an equity based financial system. Equity tends to build alignments and cooperation. Debt facilitates warfare with "buy now, pay later" economics that makes sure the financiers can win no matter the outcome.
Daily Bell: Does the Internet have a role in a new monetary system?
Catherine Austin Fitts: Yes. However, the Internet is the ultimate surveillance "op." Which means we have to have monetary systems that offer us robust transactions and value storage options in the material world that offer complete privacy without debasement. That means we need systems that function offline between private parties.
Daily Bell: Is the Austrian School making substantial inroads?
Catherine Austin Fitts: Yes, thank heavens. Let's hope they make more. However, as the centralizers want to use social media and online systems to help centralize transactions and move to digital control of currencies, anticipate lots of "woo-woo" proposals about "new money systems."
I was just at a wonderful conference in Switzerland and heard some of the most terrifying proposals for "a world without money." Having the Austrians by my side did me a world of good. I kept trying to explain to the most wonderful people that after you have turned over trillions of dollars of bailout money to one group who has now centralized tremendous ownership and power, to voluntarily swear off money means to decrease your power in a way that increases theirs. Is that a good idea?
We need to look at all these ideas through the prism of economic warfare. An eco-village can be a wonderful idea if the people who participate choose to create it and grow it well. However, that idea in the hands of the wrong people can be a design for labor camps.
So be careful with monetary ideas. The best monetary reforms are ones you will do in your life, today, now. Change starts with me and what works for me right now in my day-to-day transactions. For example, check out the calculator we made with Franklin Sanders of the Moneychanger to support people who want to use silver and gold to conduct transactions: http://silverandgoldaremoney.com. Otherwise interesting ideas can turn into weapons in the hands of those who do not have our best interests at heart.
Again, one man's eco-village is another man's labor camp. One man's gold standard is another man's plan to reduce a population to a feudal state to his advantage.
Daily Bell: What about the EU and the euro? Will either or both survive?
Catherine Austin Fitts: Force can make any system go, if you apply enough force and are willing to tolerate sufficient wealth destruction and depopulation. Witness the dollar. Numerous benefits come to the average American as a result of the dollar being the reserve currency. At the same time, the force used to make the system go and the debasement of both the currency and the culture that results is destroying America.
The same is happening in Europe. My expectation is that the euro will survive for some time with fewer countries subject to the Lisbon Treaty.
The euro as a currency system makes no sense. Europe has different people, with different languages, in different economies. There is no "we" here.
Different currencies would allow markets to work. So Europe would be wealthier with different currencies. But then the people centralizing the economy would not be able to pick up equity cheap in the PIGS with disaster capitalism tactics. Do they have the force to keep the system going? Yes, at least until enough people can see the game for what it is and are prepared to act in the face of force.
Daily Bell: Do you have an opinion on China? We believe it's headed for a crash landing.
Catherine Austin Fitts: China is struggling in the shift from exporter to the West to a country with more significant internal consumption. Their political challenges are formidable – including keeping one billion people employed and managing a new generation that is dominated by too many single male children.
However, China has an extremely productive culture and people. They think strategically, are very hard-working and love to learn and invest. The Roman Empire and the British Empire went broke trading with the Chinese, until the Brits turned to opium.
I think a growing China is here to stay. Yes, they may slow down as, like the rest of us, they choke on misallocations of capital that occur in bubbles. I don't think they will crash unless the currency wars lead to a global meltdown and war. Their long-term outlook is quite positive. Remember that our success is very much tied to their success.
Oversimplified, if the young people of this world are not successful what would happen to all of us? Elders need youngsters. In part, that is what the shift of capital to the emerging markets is all about.
Daily Bell: What are some of the most important issues pertaining to free markets, in your opinion?
Catherine Austin Fitts: The most important issue is transparency. The second is integrity of contracts and agreements.
Daily Bell: What are the fundamental obstacles to recovery?
Catherine Austin Fitts: We are experiencing an ongoing financial coup d'état that is centralizing power. Symptoms include an absence of transparency, deteriorating integrity of contracts and agreements, environmental deterioration, a "breakaway civilization" that appears "out of control." I would add to this the use of financial markets for warfare as opposed to facilitating the allocation of capital and trade.
The ultimate codification of things like transparency and integrity of transactions is not the law; it is the culture. A variety of forces are systematically breaking down our physical health and our culture. That cultural corruption is the greatest obstacle.
Daily Bell: What are the fundamental issues pertaining to a healthy recovery?
Catherine Austin Fitts: We have to get to the bottom of who has been centralizing and why, what is the technology they have and where it is they are planning to go with this.
Daily Bell: Is there a power elite that is trying to create one-world government? If so, is it succeeding?
Catherine Austin Fitts: Yes, there is a concerted effort to create a one-world government and evolve to a one-world currency. It has been succeeding. As the "financial coup d'état" becomes more obvious, centralization is entering a critical stage as more and more people globally react negatively to the effort and related tactics.
Indeed, our current currency wars reflect a natural pulling away from centralization that is healthy.
Daily Bell: What endeavors are you involved in that you want to point out to our audience? What's most important to you that you would like our audience to be aware of and support?
Catherine Austin Fitts: My focus is on the preservation and growth of family wealth. If you study the economy bottom up, it is built by people. Successful economies are built by family enterprises that ultimately contribute significant amounts of financial and civic capital and provide environmental stewardship, not to mention raising our future leaders.
Family wealth is threatened by centralized control. Specific issues that I tend to focus on include the centralization of the seed and food supply in combination with the patenting of life. Others include environmental pollution, financial fraud and insufficient transparency to support individual investors and erosion of property rights and individual liberties.
Daily Bell: What are the most important – seminal – works of yours that you would encourage everyone to read? Where can they be found?
Catherine Austin Fitts: I have spent quite a lot of time thinking about how we could shift the management of institutional capital to a new model. You can read more about the Solari Investment Model here: http://solari.com/blog/the-solari-investment-model/ .
Daily Bell: Finally, give us your best estimate of where is gold headed, pricewise, over the near- and long-term.
Catherine Austin Fitts: Gold is still in a long-term bull market. I anticipate the high for 2012 being somewhere between $2000-2200. Where the price ends up long-term is very much a function of monetary policy in the long-run. Gold is not increasing in value so much as fiat currencies are debasing.
I believe that inflation will continue to be the policy choice to manage global debt positions.
One of my greatest concerns is the push for a Constitutional Convention in the United States. If such a process were hijacked in a manner that fundamentally altered the Constitution, it would create the conditions to make it much easier to manage through deflation. That could have a significant impact on the relationship globally between financial paper and tangibles, including precious metals.
The amount of new technology that could be integrated over the next decade is quite significant. In a more positive scenario, a combination of the global rebalancing and new technology could cause the equity markets to shake off the debt burden and leave precious metals in the dust.
That still leaves the question of how people are going to access the necessities of life if technology provides what labor used to AND the centralizers continue to handicap or disallow small business and entrepreneurship and force hundreds of millions of farmers off their land and into the cities.
If hedge funds can borrow at 1% or less in a carry trade but I have to pay 30% to finance the local farm or meat market, the transition to devalue labor can offset the monetary inflation, but it can also make for a very ugly world.
Daily Bell: On behalf of all of our readers we thank you for sharing your views with us, and hope to hear from you again soon. And we encourage all readers to visit Solari.com and consider learning more about your work. Thank you.
Catherine Austin Fitts: Thank you! I enjoy reading the Daily Bell and am honored to have this opportunity. Thank you for all you and your readers do in this world.
Daily Bell: Thank you.
Thanks to Catherine Austin Fitts for this generous interview. There is much in it that merits study, and we hope viewers take a close look at it.
For us, the most important statement she makes is when she says: "I think Wall Street is the pit bull, not the master. The $64,000 question is, of course, who is really in charge and why are they behaving this way?"
This simple statement puts Wall Street into context. And it is one that people ought to reflect on, in our view, as the hysteria over Wall Street corruption mounts. The same forces that organized Occupy Wall Street are still at it, agitating for a new "Pecora Hearing" of a sort. We've written about this before: The Real Reason Bloomburg Sued to Open Up Fed Records?
We figure the new Pecora Hearings shall begin sometime after Barack Obama is reelected (if he is). The apparently false-flag OWS protestors shall be turned loose once more to cry out for the heads of the one percent. It is reminiscent of a second French Revolution writ small.
Cutting off the heads of the Wall Street captaincy shall not reduce the system's abuses. Regulation shall only concetrate power and make them worse. It's been tried before.
Honestly, the way to deal with Wall Street and its appendages is to withdraw patronage from them. Education is necessary as well because the reality is that Wall Street in its modern form would not exist without the larger money system that is now in place.
Call the larger system of monopoly-privileged central banks Money Power. And the families that control these banks the "power elite." When Ms. Fitts speaks of the "$64,000 question" she is making a point about the way the world REALLY works.
She has acted on this knowledge for her own clients. And in this interview we can surely see why she has amassed a sizeable business and continues to create success for her readers and subscribers.
Posted by free on 01/03/12 05:42 PM
Another great interview, very interesting person, thanks.
Posted by Stan on 01/03/12 04:35 PM
Ingo seems to be a knowledgeable fellow adjudicated by his previous articles. With his statements below not sure what to do. Are you trying to increase comment count to the article by articulating such neoconish views? Or do you really think that a third world nation can seriously challenge the US in any way that would amount to anything? A temporary spike in oil prices would quickly fade with international backlash against it. And verbal karate by the mullahs resembles to certain animal characteristics namely creating a lot of noise to make up for lack of teeth or claws. It is a fear reaction not one of an aggressor...
Posted by memehunter on 01/03/12 02:29 PM
"Furthermore, to mark ECB gold reserves to market is for the "birds". It has nothing to do with you or me holdig gold. It is a meaningless gesture which should impress no one, except the gullible."
I'm not so sure about that. According to FOFOA, who has written extensively (and with great insight) on the topic, this indicates a fundamental difference between the gold policies of the ECB and of the Federal Reserve. Moreover, it tells us that the ECB is silently preparing for a world in which gold, not the USD, will be the "reserve currency" (or rather, "reserve store-of-value"), or at least play an important role in that respect. There's a lot more to it than meets the eye. I suggest you have a long hard look at FOFOA's blog - it is worth it, even if you don't agree with everything he writes.
Posted by flying_pig on 01/03/12 01:55 PM
"Even so, Ron Paul is a Texas politician, he hasn't got the foggiest idea about the oil business and how it impacts the value of the USD. "
Yeah, Mr Ingo knows-it-all doesn't mention the role of the OPEC cartel in determining the price of oil, and tells other people to study marginal utility theory.
Guess you are not from Texas, Ingo, but you sure as hell don't understand oil prices.
Posted by flying_pig on 01/03/12 01:51 PM
"To speak of unfair pressures by the U.S. against Iran, when a there exists a state of hostility between the two governments, can only come from a confused mind. "
More selective amnesia. Remember Mossadegh? Why did you not mention this, Ingo? You have your head in the clouds. Get a mirror Ingo.
"To say that, "In terms of global hegemony and empire it is a crux", merely portrais your ignorance about how the oil price is established. I suggest you study the Austrian Economic's "marginal utility analysis" theory as it applies to production costs and the pricing of "world" crude, before you make anymore nonsensical statements."
I suggest you study some Austrian economics yourself and understand the subjective value theory. Or google for the article about pricing of Kindle books on Click to view link. Get a mirror Ingo.
Posted by flying_pig on 01/03/12 01:43 PM
"how about the Iranian mullahs deciding to have one of their agents assassinate the Saudi Ambassador on U.S. soil... ???"
How about that being an FBI plot? Or do you possess secret information that this was not an FBI plot?
Joke's still on you, Ingo. Keep that mirror handy.
Posted by flying_pig on 01/03/12 01:41 PM
"However, I hope you are not trying to tell me that the Straits of Hormuz are Iranian coastal waters... ??? Iran may claim sovereign rights over those waters, but those rights do not exist based on accepted practices in the past, nor do they exist by international agreement."
Gee, I guess wikipedia is plain wrong on this one then. My bad.
"I think the frigging joke is on you by repeating the crazy ramblings about the peaceful intentions of Iran coming out of the Ron Paul campaign."
I think you are the crazy one trying to pretend that the US has peaceful intentions towards Iran. Get a mirror and look at it often Ingo.
Posted by Bischoff on 01/03/12 11:36 AM
"Bischoff, I'm sure that you know that the ECB marks its gold reserves to market in its quarterly financial assessments. You have certainly heard about World Bank President's Robert Zoellick proposal to use gold as a "reference point" (which I don't believe is the same thing as a gold standard, by the way)."
You are right, it is not the same thing. Furthermore, to mark ECB gold reserves to market is for the "birds". It has nothing to do with you or me holdig gold. It is a meaningless gesture which should impress no one, except the gullible.
Posted by Bischoff on 01/03/12 11:28 AM
It seems to me that Stan fails to understand that the Iran of the Shiia Mullahs has been at war with the U.S. ever since their Iran took over of the U.S. Embassy in Teheran.
Except for Carter's disasterous attempt to free the hostages, the U.S. has not applied force against Iran. To speak of unfair pressures by the U.S. against Iran, when a there exists a state of hostility between the two governments, can only come from a confused mind.
Trying a change of diplomacy... ??? You seem to be dreaming. The government of Iran is an authoritarian theocracy which has sworn to destroy Israel and the West. They have stated so publicly and often. Are you and Paul trying to suggest that we negotiate our own demise... ???
Ron Paul and his followers like you have their heads in the clouds. You naively chase utopian dreams that appeal to your emotions.
Furthermore, your point that only 5% of Middle East oil ends up in the U.S. has nothing to do with the U.S. having an interest in guaranteeing the "free flow" of oil. The U.S. would still guarantee the "free flow" of oil, even if not a single drop of Middle East oil ever reached U.S. shores. To say that, "In terms of global hegemony and empire it is a crux", merely portrais your ignorance about how the oil price is established.
I suggest you study the Austrian Economic's "marginal utility analysis" theory as it applies to production costs and the pricing of "world" crude, before you make anymore nonsensical statements.
I am not for empire. The Constitution is not for empire. It is the perversion of the Constitution, which our grandparents permitted and about which we havn't complained, that led us into central banking and the need to support the value of the USD by sticking our nose into everything connected with oil and energy production and distribution world wide.
Even so, Ron Paul is a Texas politician, he hasn't got the foggiest idea about the oil business and how it impacts the value of the USD. His ramblings about the Federal Reserve prove it. He wouldn't know how to replace the central banking system, if his life depended upon it.
Posted by pjmauigirl1 on 01/03/12 11:07 AM
To me this 'presentation' smacks of a desperate attempt to infiltrate and manipulate internet users since the numbers of individuals who now laugh at the MSM are growing exponentially.
It is precisely because many horrifying events are not reported in MSM that their credibility is shot.
As to being somehow saved? That's like believing in Santa Claus.
Posted by Stan on 01/03/12 08:07 AM
Seems that Ingo is selectively picking out statements to support his convictions and insights into middle eastern politics.
Ron Paul has not said Iran is peaceful and an A-OK country. He said that given all the pressure, threats and precedence (e.g Libya) it is their logical and vital self-interest to obtain a deterrent from an invasion. And also said that tons of TNT might not bring the required result and what if for a change diplomacy is tried first?
He is also right that 5% of US oil supply is derived from the region, in terms of a military or direct economic threat Iran is not one to the US. In terms of global hegemony and empire it is a crux.
Being decided in the US is whether to shred the constitution and make an all-out open effort to build the empire. With it of course comes all the evils that infested the previous empires as well...
Posted by Stan on 01/03/12 07:43 AM
"Honestly, the way to deal with Wall Street and its appendages is to withdraw patronage from them." A topic I proven difficult to find a common ground with DB editors.
Ms. Fitts elaborated on a need for applying good old justice, at the same token, however, she also acknowledged the difficulty. DOJ and the various agencies also run to a great extent by the same elements that are supposed to be investigated and jailed. Her solution is open source distributed intelligence by ordinary people. Surely a gigantic task...
DB solution to withdraw patronage, while has its merits, not specific enough to be actionable. What exactly one is supposed to do? Turn stocks to cash or physical assets? All of which are subject to the same manipulation and largely centrally controlled?
Reply from The Daily Bell
You misunderstand the efficacy of human action. People need to disavow government in all of its manifold incarnations. People need to find new LOCAL solutions. People need to use their OWN money locally. Change begins with HUMAN ACTION. The last thing we need is to employ state justice to take care of the "criminals." How employing the worst and most oppressive parts of Leviathan to "solve" the problem of Leviathan will prove efficacious is not clear to us. It is the apologists for Leviathan that want to use ONE part of it to "fix" another part.
Wall Street bad ... police state GOOD.
Posted by Elias Alias on 01/03/12 07:35 AM
Having attended one of Ms Fitts' presentations in Kalispell, Montana, some years ago, and having delighted in sending her Dunwalke web masterpiece to thousands of readers, and having her signature inside the cover of Mike Ruppert's book "Crossing The Rubicon" (in which she wrote the Foreword), and having followed her writing for ten years, I am an appreciative but also humbled devotee of her brilliance and have never, not even once, felt I possessed any knowledge of my own with which to increase her knowledge in any way - so all I'm bound to say here, in gratitude once again for the Daily Bell's elves in bringing her wisdom to DB readers and in appreciation for Catherine Austin Fitts for taking time with the elves, and with blatant disregard for the Allman Brothers of Georgia who wrote it first, is this -
As a Freedom Outlaw, "I've got one more silver dollar, and I ain't gonna let 'em catch the midnight rider... "
Reply from The Daily Bell
Elias Alias returns ...
Posted by Agent Pete 8 on 01/03/12 05:32 AM
Without certain features like consent, it will pass like the other Militarised Ponzi Smarmies repeating ad nauseum throughout history.
There is a typical lack of answers, as provided for by a lack of available intelligence, of daylight quality, with which to reconcile facts to the victims in The Crying Game scam.
Cetain questions asked to immutably prove the source and destination of ARG-intent, once again finds puppy digging with a diagnostics tooling perspective, revealing again IT's solution-base safety race aces pace.
So we will pretend to wait to see what they say, whilst beavering in the shed by candlelight...
IT will knock your socks off!
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Posted by memehunter on 01/03/12 04:24 AM
Bischoff: "Except for North Korea and for Iran itself, do you think there is any country in the world which at this time wants to see the USD loose its value... ??? If you do, you don't understand anything about the value of the USD as the world's reserve currency."
I'm quite positive that there are many countries that are preparing themselves for a world in which the USD is no longer the reserve currency. Some of them may even want it, although they will obviously not try to display it publicly (who wants to receive tons of uranium-depleted bombs and other gracious gifts of the USA just for publicly wishing that the USD loses its reserve status?).
Bischoff, I'm sure that you know that the ECB marks its gold reserves to market in its quarterly financial assessments. You have certainly heard about World Bank President's Robert Zoellick proposal to use gold as a "reference point" (which I don't believe is the same thing as a gold standard, by the way). Moreover, there is no need to remind you of the regular announcements of bilateral trade agreements between countries that want to do away with the USD in their bilateral trading (we recently heard about such an agreement between China and Japan).
So, to answer your question, it's very likely that several countries want, or at least are preparing themselves for, a world in which the USD is no longer the reserve currency.
It is my personal wish as well (not necessarily because of anti-US feelings, but because the current system is obviously flawed, cf. Triffin's dilemma for instance).
Posted by Bischoff on 01/03/12 03:52 AM
@ the man from mars
"Can you, with your exceptional historical knowledge, help us get deliverance from the rock that is rolling down the hill at us, by not pointing at the weeds on the side of the hill? " ... ... ... Priceless, AW. AAA+"
This comment is priceless to your mind. To me it's simply cute. It has no meaning, unless you explain what is meant by the "rock" and the "weeds". Your mind is caught up in the cuteness of the statement. However, to fix the problem this statement is supposedly addressing, being "cute" ain't going to cut it.
Posted by Bischoff on 01/03/12 03:34 AM
You are the one who is being silly. You support Ron Paul. That's ok by me, but please don't ask me to swallow his naive and confused campaign rhetoric about Iran, which you seem to support.
"What right does the U.S. have to prevent Arabs from flying planes over San Francisco? By what God given right can the US stop the "free flow" of planes in the air?" What kind of moronic questions are those... ???
The U.S. has the right to protect its air space. Likewise, Iran has the right to protect Iranian air space. Any unauthorized entry into U.S. air space is subject to shoot down.
When a U.S. drone overflew Iran and entered its air space without authorization, it was brought down. The U.S. was exposed of having violated sovereign Iranian air space. An act of aggression, quite clearly.
However, I hope you are not trying to tell me that the Straits of Hormuz are Iranian coastal waters... ??? Iran may claim sovereign rights over those waters, but those rights do not exist based on accepted practices in the past, nor do they exist by international agreement. So, what right does Iran have to control the tanker traffic through the Straits of Hormuz... ??? None.
Iran is trying to develop nuclear weapon with which to enforce their bogus claim of sovereign rights over the waters of the straits. If Iran is able to control the tanker traffic through the Straits of Hormuz, the USD is toast. Do you think the U.S. Congress and its central bank is going to let that happen... ???
Except for North Korea and for Iran itself, do you think there is any country in the world which at this time wants to see the USD loose its value... ??? If you do, you don't understand anything about the value of the USD as the world's reserve currency.
As regards the NPT, and the tit-for-tat excuse you tried to pull on me, how about the Iranian mullahs deciding to have one of their agents assassinate the Saudi Ambassador on U.S. soil... ??? Does that give the U.S. the right to commit acts of aggression upon Iran... ??? If not, then how are you going to excuse the act of Iranian aggression upon the U.S... ???
I think the frigging joke is on you by repeating the crazy ramblings about the peaceful intentions of Iran coming out of the Ron Paul campaign.
Posted by flying_pig on 01/03/12 02:14 AM
Don't be silly Ingo. Let me ask you this, and maybe it will clarify things for you. What right does the US have to prevent Arabs from flying planes over San Francisco? By what God given right can the US stop the "free flow" of planes in the air?
On a more serious note, I must say that I understood the point of your original post, but I object that you are presenting a very one-sided view.
And that whole discussion about the NPT is balderdash. You mean the US has never violated any international treaties? What a frigging joke.
Posted by amanfromMars on 01/03/12 02:11 AM
Hey, Brother Agent Weebley, Howdy, doody,
Them spivs in suits just don't get it. One wonders whether it is a genetic defect or just intelligence deficit which renders the ignorance incestuous and arrogance wholesale ... ... . although forever the optimist would hold out the hand of assistance should any bright spark consumed in the gloom prefer the freedom of futures spaces enlightened and unburdened of false hope and decrepit ages old knowledge.
There are new biblical epic tales to tell which leave everything in the past agog at what has never been fully told before, because of the selfish power of selfless control such intelligence delivers so effortlessly to all.
"Can you, with your exceptional historical knowledge, help us get deliverance from the rock that is rolling down the hill at us, by not pointing at the weeds on the side of the hill? " ... ... ... Priceless, AW. AAA+
Posted by Agent Weebley on 01/02/12 11:45 PM
So the 1913 FRA enabling the printing of unlimited USD had nothing to do with freeing up "the man's" gold and financing WW1 that began about 7 months later, and the booms and busts that followed due to manipulation of the money supply, and WW2 in 1939, and pretty constant warring ever since, mainly centred around controlling the money supply in "rogue" independent states that control their own money and resources effectively, or just for the fear factor that keeps people scared all the time, bending to force to keep the peace, but peace never seems to happen because no-one can see whose behind the headlights that they are frozen in front of?
It's Mad "Sisyphean" Max!
Can you, with your exceptional historical knowledge, help us get deliverance from the rock that is rolling down the hill at us, by not pointing at the weeds on the side of the hill?
Click to view link