**Note: We are republishing each of the 22 challenges from Catherine’s fiscal cliff article – one a week. Helps to digest them bit by bit!**
By Catherine Austin Fitts
Significant funds have been diverted into the “Black Budget” since WWII — with no public accountability in terms of amounts, sources or uses.
The black budget has numerous sources. First there is funding allocated in secret by Congressional “oversight” committees. Second there are funds clawed from other agency appropriations. Third there are an endless series of other sources of funding include seizures, proceeds from the marketing of hard narcotics and engineering of mortgage and other financial fraud in your community and from many other illicit businesses operated globally by the intelligence cartel. Finally, I suspect one of the largest sources and uses has become market manipulations through the Exchange Stabalization Fund.
[George H. W.] Bush climbed through Republican politics to become Director of the Central Intelligence Agency (CIA) during the Ford Administration. After spending four years displaced by the Carter Administration, Bush was now Reagan’s Vice President with Executive Order authority for the National Security Council (NSC) and U.S. intelligence and enforcement agencies. Bush’s new authority was married with expanded powers to outsource sensitive work to private contractors. Such work could be funded through the non-transparent financial mechanisms available through the National Security Act of 1947, and the CIA Act of 1949.
This was a secret source of money for funding powerful new weaponry and surveillance technology and operations owned, operated or controlled by private corporations. Carter’s massive layoffs at the CIA had created plenty of private contractor capacity looking for work. An assassination attempt on President Reagan’s life two months after the inauguration meant that Vice President Bush and his team were called on to play an expanded role
The federal mortgage funds have long been subject to significant fraud with the full help and support of the U.S. Treasury, Department of Justice and NY Fed and its member banks. I believe that this fraud has been used to finance the black budget.
“In 1994, after the first FHA/HUD financial audit was published, a mortgage banker came to see me. He was a serious engineering type who clearly worked hard and had mastered the details of his business. He was distressed, he said. For decades he had been keeping a tally of total outstanding FHA/HUD mortgage insurance credit. He had brought printouts of his database for me. It turned out that the government’s published financial statements showed the amount outstanding was substantially less than the actual amount outstanding. He was sure. I assumed that the guy was crazy. If what he said were true, then the U.S. Treasury and the Federal Reserve would have to be complicit in significant fraud, including securities fraud.”
For more on this topic see my online book, Dillon Read & Co. Inc & the Aristocracy of Stock Profits as well as excellent Solari Report interviews with Joseph Farrell, Adam Trombly and Richard Nolan and audio seminars on the housing bubble.
The opportunities for financial abuses and the impact on the general economy are beyond significant. Given the amounts involved, very advanced technologies undoubtedly have been developed, mostly to the benefit of the private contractors who have been paid to develop them. The value is literally in the trillions of dollars.