Piggy Bank

“I’m living so far beyond my income that we may almost be said to be living apart.” ~ E.E. Cummings

By Catherine Austin Fitts

This week on the Solari Report, we publish the first of a two part conversation with Dr. Joseph Farrell on the relentless growth of global debt.

This topic could not be more timely. Last week, the Federal Reserve softened their guidance on anticipated interest rate rises – but reminded global markets that such rises were coming. With sovereign governments around the world carrying high levels of debt, rising interest rates will pull the leash of the  dollar “control system.” The question is when and how hard.  There is the reason that global institutions from the IMF to the UN are talking about “global debt restructuring.”  The folks who own and control the debt are rewriting the rules.

This is a 360 degree discussion – Joseph and I look at the geopolitics and meaning of debt as it functions in the real financial system. This includes the hidden system of finance and black budget that funds the growing national security state and is driving the explosive cocktail of “game-changing” technology, the re-balancing of the global economy and the unraveling of the Post WWII system of global trade. For excellent background for this discussion, I recommend Dr. Farrell’s and my presentations at the Secret Space Program as well as several recent studies on the state of global debt – see links posted in the subscriber area.

Financial commentators often talk about debt and the fixed income markets as though debt is a financial and economic phenomenon. We need to start looking at debt as a vehicle of governance and control – as a tool of economic warfare; as a tool that makes war feasible on a grand scale. To help you evolve your understanding of the debt system, I recommend a movie reviewed previously in Let’s Go to the Movies –  The International.

In this 2009 action thriller an Interpol agent attempts to expose a high-profile financial institution’s role in money laundering, assassination and international arms dealing designed to engineer the overthrow of sovereign governments. The movie demonstrates how debt and war dovetail in the “central banking-warfare model”  to create control.  My favorite scene is when the Italian weapon manufacturer explains to the Interpol agent how the system works and why a large global bank is brokering arms:

“The IBBC is a bank. Their objective isn’t to control the conflict, it’s to control the debt that the conflict produces. You see, the real value of a conflict, the true value, is in the debt that it creates. You control the debt, you control everything. You find this upsetting, yes? But this is the very essence of the banking industry, to make us all, whether we be nations or individuals, slaves to debt.”

This is the last week of the month, so no Money & Markets this week!

 

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Current high levels of financial repression create significant costs and lower long-term investors’ ability to channel funds into the real economy, a new Swiss Re study shows
26 March 2015, Zurich

  • Since the financial crisis, US savers alone have lost roughly USD 470 billion in interest income
  • Artificially low interest rates that go with financial repression lower incentives for policymakers to tackle much needed structural reforms in Europe
  • Other unintended consequences of financial repression include potential asset bubbles, crowding out long-term investors in otherwise functioning private markets, increasing economic inequality and the potential of higher inflation over the long-term besides distorting private capital markets
  • Swiss Re developed a Financial Repression Index, the first of its kind, measuring the extent of policymakers’ actions. Swiss Re has also quantified the costs of interest rates being at artificially low levels for households and long-term investors
  • Financial repression describes official policies directing funds to markets that would otherwise go elsewhere and reduces diversification of funding sources to the economy, representing a risk for financial stability
  • Seven years after the financial crisis, central banks are still keeping interest rates at historically low levels. Low interest rates help finance governments’ debt and lower funding costs, as well as support growth. But such policy actions cause financial repression. This comes at a substantial cost for both households and long-term investors such as insurance companies and pension funds, according to a new Swiss Re report Financial repression: The unintended consequences.

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Courage is being scared to death – but saddling up anyway.”
~ John Wayne

Related reading:

John Wayne
wikipedia

Quotations by Author
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Related reading:

Secret Space Program and Breakaway Civilization Presentation – View Free Online
Solari.com

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The Fed

View the complete Fed meeting minutes from March 18, 2015

Fed comments are in GREEN. Catherine Austin Fitts’ translation follows:

“Information received since the Federal Open Market Committee meeting in January suggests that economic growth has moderated somewhat.”

The global economy is slowing. The domestic economy is not doing as well as the Fed had expected.

“Labor market conditions have improved further, with strong job gains and a lower unemployment rate.”

U.S. employment has increased. Many people have temp positions, minimum wage services jobs, or they have dropped out of the job market entirely. The goal is a strong corporate economy without growth in wages.

“A range of labor market indicators suggests that underutilization of labor resources continues to diminish.”

The Fed seeks higher levels of employment without labor inflation. All productivity increases in recent decades have accrued to investors; not labor. Fed policies will help this to continue.

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Smart devices

“What we’re doing here will send a giant ripple through the universe.” ~Steve Jobs

By Catherine Austin Fitts

The market valuation of Apple passed $700 billion in February, 2015.

Let’s put that in perspective. As it passed the $700 billion mark, Apple was:

  • nearly twice as large as Exxon
  • nearly five times larger than Citigroup
  • more than ten times larger than General Motors
  • (206) times larger than Sears Holdings

If Apple rises another 10%, its market capitalization will be larger than the entire market capitalization of all the stocks on the Brazilian exchange.

It is an interesting comment on global valuations when one company is larger in value than the entire exchange float of major nations.

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What we think of as 3D printing, says Joseph DeSimone, is really just 2D printing over and over … slowly.

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Related reading:

Carbon3D Unveils Breakthrough CLIP 3D Printing Technology, 25-100X Faster

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In from a Solari Report subscriber:

New VA Loans Available

Just received a notification in my VA network that Obama has waived requirements for military members to meet any criteria for getting a loan, and beyond no requirements for sign up, there is no down payment required… Wow – where was this for me in my younger days in the military ?

Sending this as another indicator of housing to be used as a political tool in the next Presidential election… Not to mention as a new recruiting tool – any kid who comes in can get a house !!!

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“If you’re going through hell, keep going”.
~ Winston Churchill

Related reading:

Winston Churchill
Wikipedia

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