By Catherine Austin Fitts

There are no scandals in Washington. There is simply a turnover. We are preparing for an escalation of the global financial war. The old team are simply being told to step aside. Make way for the killers.

When G-7 concluded their emergency meeting in London last weekend, they announced that they were going to target tax havens. What does this mean? After months of G-7 central banks buying mortgage bonds and equities, the hunt for capital is on.  Off course, we knew the tax havens were in the crosshairs all ready – only intelligence agencies can dump out the kind of leaks we have been seeing over the last month leading up to the G-7 meeting.

However, the seriousness of the capital moves underway were underscored by the swiftness with which a “scandal” was trumped up and ready to go at the IRS with headlines on Monday morning, the leadership was out on Wednesday, and a new acting from OMB in at the IRS on Thursday.  Wonder who the new Commissioner will be? That is being sorted out now. It will be someone masterful at legal warfare – “lawfare.”

A serious attack on the offshore havens, sufficient to direct $20-30 trillion in the direction that the G-7 wish it to go will also require the right kind of leadership at DOJ. Yes, Holder is certainly willing to play ball – he has done a perfectly adequate job supplying guns to the Mexican drug cartels and beating up on the Swiss.  However, someone with international experience who is a lot meaner and trusted in certain Congressional quarters is preferred. After all, asserting jurisdiction over $32 trillion is one amazing squabble.

Remember, whatever equity markets get that capital will have their P/E’s head up, which means they can go buy up everyone whose stock is trading in the markets that don’t get the capital. Backed by the capital accessed through the financial coup d’etat, think of the acquisition binge that is coming.

And of course, there will be more taxes to keep government operations and corporate profits rolling. And the central banks will get some relief. The ballooning of their balance sheets has become more than uncomfortable.

So expect the drums to pound on about AP Reporters and various trumped up malfeasance until Holder is out. Holder has targeted others in this way for Mr. Global. Now it is his turn to head into the dog house.

We could see the seriousness of the new capital drive – both in what rolled out this week in Washington and the speed at which it rolled out. There is far more underway than just the targeting of tax havens.

 Time Magazine published a trial balloon saying that the federal government will require mandatory retirement accounts.  If true, this is surely good for billions more into the securities markets over the next decade (More Here). I would say trillions, but the middle class and small businesses that will fund it are already going to be squeezed trying to fund Obamacare.

Then the House passed a bill requiring the SEC to promulgate the regulations for the JOBs Act by October 31st.  Mark my word, crowdfunding envisioned by the JOBs Act will be designed to kickstart a new bull in the US equity markets, just like first time homebuyers kickstart the housing market. No doubt, lots of entreprenuers funded with crowdfunding may pay off their student loans and buy their first home as well (More Here).

Then Google announced we could all e-mail money from your Google wallet by simply clicking the dollar sign in our gmail. (More Here) Imagine what this functionality could do for crowdfunding portals. Add entrainment technology, and the estimate of $3 billion in crowdfunding flows in the first year (More Here) will be way too conservative.

If a serious attack on the tax havens is in the works, the moves of capital will be unprecedented.  The question of global uninsured deposits could be an ongoing drama – perhaps explaining the enormous shifts of precious metals out of the ETFs and the improvement in the real estate markets. Someone is looking to get out of insecure bank deposits and into tangibles. However, imagine what could happen if numerous jurisdictions are forced to sell their precious metals the way that Cyprus was. We are now in a world where all asset classes can take turns in the dog house – and they can do so at lightening speed with little warning.

The G-7 is extending and tightening up their jurisdiction. They are planning very significant shifts. This is BIG.

Let’s see what unfolds this coming week. As I did last week, I will focus on these events in Money & Markets on Thursday’s Solari Report.

Related Reading:

Might Obama Fire Attorney General Eric Holder?

It’s Time for Holder to Go

Infographic: Apple’s Taxes

Senate Investigators: Apple Sheltered $44 Billion From Taxes

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