“The Office of the Assistant Secretary of the Army (Financial Management & Comptroller) and the Defense Finance and Accounting Service Indianapolis did not adequately support $2.8 trillion in third quarter journal voucher (JV) adjustments and $6.5 trillion in yearend JV adjustments made to AGF data during FY 2015 financial statement compilation.”  ~ Inspector General, US Department of Defense, “Army General Fund Adjustments Not Adequately Documented or Supported,” July 26, 2016

By Catherine Austin Fitts

The deep state is expensive: secret space programs, underground bases, and invisible weaponry require both an enormous investment and ongoing overhead. How do you finance two civilizations using the budget of only one?

Since the passage of the National Security Act in 1947, the national security infrastructure has grown dramatically, funded by a two-tier tax system. One tax is sent to the IRS every April by millions of citizens and companies.  The money is then spent without accountability – trillions have disappeared. The other tax is extracted daily by financial fraud, narcotics trafficking and other criminal activities and is combined with the profits of invisible skimming throughout the banking, brokerage, mortgage, and other financial transaction systems. That money is also spent without unaccountablility.

When politicians are elected to fix an economy devastated and drained by this financial harvesting, a major conflict arises.  How can the deep state fund its secret cash flows after a new administration stops crime and rebuilds our infrastructure and communities? This conflict is the real clash of civilizations.

This conflict is not just a confrontation in Washington. This conflict relates to “full vertical power” because the swamp extends, in fact, from “sea to shining sea.” Companies and employees operating throughout America are dependent on the purchases and contracts that flow from this financial machinery and from US military and intelligence dominance throughout the world, in order to extract natural resources globally while enjoying the dollar status as a global reserve currency. In turn, stock market investors depend on earnings that flow from these companies.  The people and banks managing and profiting from narcotics trafficking, mortgage fraud, and sex slavery live and work in every one of 3,100 American counties.

Leading author, publisher and scholar Richard Dolan joins me this week to review the history of the black budget and how the goals of the Trump administration may bring matters to a head.  The men who built the national security state appear to have no intention of allowing their secrets to be told or their privileges to be compromised. With the credibility of the corporate media disappearing, what will these men dare to do  next? Is the deep state racing to tear up the US Constitution before its deep and hidden system of finance and its mysterious source of privilege are both compromised?

In Money & Markets this week I will discuss the latest in financial and geopolitical news, including the effort by the White House to establish a safe, secure communications system. It turns out that the President of the United States has the same problem that we all have: trying to function with digital systems that have no integrity.

In Let’s Go to the Movies, I recommend an excellent interview with two highly capable gentlemen who have fearlessly risked life and limb to return integrity to our digital infrastructure, NSA whistleblowers Bill Binney & Kirk Wiebe.

Among many other topics, Binney and Wiebe address the corruption of our communications systems:

“The NSA and the intelligence agencies are exempt from auditing by the US Government….You’re head of the NSA and you’re handed somewhere between $10-15 billion a year to spend any way you see fit and nobody will check on how you spend it. It means that you can take $1 million home a month without nobody missing it and even if they did they would not follow up to see what you did with it. It’s a set up for corruption and that’s exactly what is going on.” ~William Binney, retired NSA officer

The deep state can track us and our money in real time but we can’t “see” them or their financial statements. On April 15, however, Americans are expected to keep paying even if the President does not have a secure phone line. This is another reason why it is time to enforce the financial provisions of the US Constitution – no expenditures without an appropriation and published accounts.

Please e-mail or post questions for Ask Catherine.

Talk to you Thursday!


“Ignorance has always been the weapon of tyrants; enlightenment the salvation of the free” ~ Bill Richardson

By Catherine Austin Fitts

This week on the Solari Report, I am speaking to family nutritionist Dr. Laura Thompson.

I am increasingly concerned about the risks involved in using US health care systems. In my personal circles, I see people and couples who are astute at accessing both holistic and conventional health systems.  They know how to get the best of both worlds and to do so economically.

Others don’t invest time in understanding health issues and ensuring that providers and treatments have integrity.  The consequences can threaten health, lives and financial security.

I asked Dr. Thompson to join me to discuss how to gain the intellectual mastery we need to become informed users of health care information and services – to achieve health care independence. I see this as essential to the financial health of an individual or family, not to mention well being and happiness. It requires an assumption of greater responsibility for our health as well as an investment of time in learning how to do so. Dr. Thompson walks us through the steps we can take to achieve health care independence.

In addition to the latest in financial and geopolitical news in Money & Markets, I will continue my coverage of the first 100 days of the Trump administration and the ongoing saga of the “Swamp Strikes Back” whereby the established Washington interests accuse President Trump and his team of doing what they themselves have, in fact, been doing. The swamp for years has been interfering in foreign elections, engaging in corrupt foreign practices, and enjoying the fruits of illegal sexual activities. The swamp has been emboldened by concerns in the establishment regarding the new teams inexperience amplified by illegal leaking. The leaking may reflect a much wider dissemination of NSA data organized by Obama right before he left office. I will explain why Obama got our Scorpion of the Week award.

In Let’s Go to the Movies, I will review Harry & Snowman, a wonderful documentary about one of my childhood favorites – a horse named Snowman. Saved from a trip to the glue factory by Dutchman Harry de Leyer, Snowman became America’s open jumper champion. This is a Cinderella story – one that will reduce you to a combination of tears and gratitude for the opportunity to know a man and a horse this inspiring.

E-mail or post your questions for Ask Catherine.

Talk to you Thursday!


“No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.” ~ US Constitution, Article I, Section 9, Clause 7

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The Solari Report 2017-02-21

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By Catherine Austin Fitts

America’s sovereign finances have been operated outside the law for some time. Since fiscal 1998, the federal government has refused to publish audited financial statements and has reported over $11 trillion in undocumentable adjustments. Solari Report subscribers have heard for years about black budgets, hidden systems of finance, trillions in money going missing from the US government accounts, all constituting a “financial coup d’etat. Clearly, there have been significant violations of provisions in the US Constitution and law related to management of resources and assets.

You would expect that we would hear a growing chorus of both conservatives and progressives insisting that Congress comply with the law with respect to the management of our finances. Where is our money? Which mechanisms should we use to get it back? However, that has not happened. Instead, we see a push for Constitutional amendments and conventions.

This raises numerous questions.  If we are not going to enforce the Constitution, why the rush to change it? Why do so in a process that could be hijacked? If you look at the extraordinary sums of money, dirty tricks and covert operations used to push through tort reform, Common Core or mandated vaccines at the state level or destroy my community wizard software tool or other attempts to ensure proper accounts and reporting, the push to change the Constitution seems mighty suspicious.

Are the people who have shifted all the money out of government accounts hoping to make sure that the Constitution can not be used to enforce, even get the money back? What is the real agenda here?

To help me sort through these questions and dig into the very real risks, I asked attorney and Constitutional scholar Edwin Vieira to join me for a Special Solari Report on the current push to fiddle with the powerful covenant that protects us all. What does it mean to us and why should we make sure our Congressmen and state legislators are focused on enforcement of the Constitution, rather than changes?

If you don’t know about Edwin Viera, you should. Vieira holds four degrees from Harvard: A.B. (Harvard College), A.M. and Ph.D. (Harvard Graduate School of Arts and Sciences), and J.D. (Harvard Law School). For more than thirty years he has practiced law, with emphasis on constitutional issues. In the Supreme Court of the United States he successfully argued or briefed the cases leading to the landmark decisions Abood v. Detroit Board of Education, Chicago Teachers Union v. Hudson, and Communications Workers of America v. Beck, which established constitutional and statutory limitations on the uses to which labor unions, in both the private and the public sectors, may apply fees extracted from nonunion workers as a condition of their employment.

You can find Dr. Vieira’s articles at EdwinVieira.com and his books here, including my favorite, Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution. His lecture series on the problems facing our economy and security as well as legal remedies, The Purse and the Sword can be found here.

While many people are distracted by events in DC, a deeper game is afoot. Last year alone $6.5 trillion went missing from the federal government at the same time the push for a Constitutional Convention increased.  With the help of Dr. Vieira’s formidable experience and scholarship, I am sounding the alarm!


From the transcript:

Every year since the Solari Report began publishing our Annual Wrap Up, our scenarios have said that the developed world economies would likely continue to “slow burn” through the next year. Not so in 2017.

The year 2017 will bring profound change – the slow burn is accelerating into a pressure cooker as thousands of pension funds, insurance companies, and private businesses will not be able to continue policies or to meet their full legal and financial obligations. The result will be a wave of “controlled demolitions.” Many sovereign governments that can still increase taxes, issue debt, or print currencies with the assistance of their central banks may not be forced into controlled demolitions. They will, however, be obliged to re-engineer, often in ways that will have dramatic or at least unexpected consequences.