26 Comments

1. Myrna:

   That is fascinating. I had not thought or read about what had happened at the UN at that time. However, indeed it would have had to have happened.

   Thanks!

   Catherine

2. If you are interested in this thread, see the newest post:

   How Does the Money Work at KPFA Radio and the Pacifica Network?
   http://www.solari.com/blog/?p=1299

3. Here is a draft of a letter responding to Peter Byrne’s letter that I forwarded to Dennis. He forwarded it to a wider group, including Peter Byrne.
   ====================================================================================================

   Peter:

   Dennis forwarded me your letter to him and to the editor of North Bay Bohemian.

   As you have not contacted me to seek information, I thought I would take the liberty of reaching out to you.

   First, my name is Catherine Austin Fitts, not Carol Austin Fitts. You can read my name and resume here: http://www.solari.com/about-us/

   I did have a very successful career on Wall Street. My success resulted from the success of several projects that were widely thought to be not possible — including
   the recapitalizing of the New York City subway, bus and railway system, the recapitalizing of the City and State Universities of New York and a group of New York fiscally distressed hospitals. I very much enjoyed finding ways of accessing capital for essential service projects that increase the health and vitality of places. It was that background
   that resulted in my having the opportunity of serve my country as Assistant Secretary of Housing- FHA Commissioner in the first Bush Administration and to be offered the opportunity to serve as a governor of the Federal Reserve.

   I have done a significant number of radio shows since 1998 and have published approximately 50 articles. I believe most or all of that media activity was in what you would refer to “alternative media.” I have written a column in Scoop Media in New Zealand, called Mapping the Real Deal.

   All of my articles can be found on my website at http://www.solari.com ( http://www.solari.com/archive/)
   and most can be found at Scoop Media http://www.scoop.co.nz/features/RealDeal.html.

   I believe independent media is very important and have worked to help community radio stations raise money. My back-of-the-envelope estimate is that I have helped KPFA and other radio stations raise app $50-100,000 since 2001 using my CD’s and promotional efforts. I have also committed a great deal of time since 1998 to help independent journalist and publishers
   with research and business advice when it was requested and I have tried to promote their work and websites, including on my blog. Finally, Solari has a tithing policy and we regularly make small donations to independent media that we read and appreciate.

   My company Solari is not a trading business or investment vehicle. Solari provides education through audio seminars and events. We have no long positions in any speculative investments. We maintain short-term working capital in a community bank and in digital gold. Solari’s sole oil investment is paying for gas for my car when I go on business trips.

   My company Solari Investment Advisory Services (SIAS) provides investment advice to those who request it. Americans have retirement and personal savings which is critical to our health and well being individually and as a people.

   My primary personal investment rather than in gold, oil and metals has been in litigation — with the federal government (see http://www.dunwalke.com) — and in starting a new company and investing in the people and activities it takes to build new companies. Historically, I am a people investor. I prefer investment in people rather than things.

   In the context of both Solari’s audio seminars and SIAS, I do believe that precious metals is a sound investment. I also believe it is a highly ethical investment as the decentralization of the precious metal inventories is critical to preventing further centralization of the political and economic structure.

   In a recent audio seminar, I describe seven areas of investment opportunity and precious metals is one of them.

   A. Personal Self-sufficiency
   B. Family, Community, and Network Self-sufficiency
   C. Banking Intimate
   D. Precious Metals
   E. Natural Resources
   F. Countries with a strong Popsicle Index G. Enterprises that own/are excellent at:
   Serving high-Popsicle-Index places
   Precious metals
   Natural resources
   Infrastructure and essential services
   “No waste” new technology/real solutions
   H. Cash and Cash Equivalents in Strong Currencies

   As to my background, I grew up in a moderate income neighborhood in West Philadelphia. My father was a successful surgeon who taught medicine and surgery at the University of Pennsylvania hospital. As an academic doctor, his income was quite modest relative to successful surgeons then or now. In my career I have had great financial success and lived through periods of great poverty, including as a result of over a decade of litigation with the federal government. It was that period that persuaded me that supporting independent media was so important.

   I live in Hickory Valley, Tennessee and you are welcome to come visit and inspect the nature of my current lifestyle. I live in a small home next to my cousin’s cotton farm and across from the gazbeo on the town commons which I donated to the town when I settled the litigation. What you will see is a demonstration of the emphasis I put on personal, family and community self-sufficiency as an investment area.

   One of the most wonderful things that has happened to me since making that decision has been getting to know and work with Dennis Bernstein. I struggle with how to help people understand how to see and gather power from understanding the flow of money and financial resources around them. Dennis has a real gift at doing so. Indeed, my decision to publish audio seminars emerged from the flow of questions that I got as a result of doing hundreds of radios shows, including Dennis. The American people are very smart and I find if you just keep trying to help them with the questions that they want answered, ultimately true solutions will emerge.

   Hence, I consider Dennis to be a national treasure — actually an international treasure — and I wish only to be a blessing to him, to his fabulous team at Flashpoints and to KPFA radio.

   I hope this information is useful for your background research and encourages you to learn the facts before making public statements that are not factually accurate.

   Best regards,

   Catherine Austin Fitts

4. Matt:

   I sent this is response to a privately communicated question — assume that was you. You objected to my recommending the Positioning audio seminar.

   Given your interest and questions, I would welcome your illuminating how your money works!

   Catherine

   Matt:

   Thank you for communicating your concerns.

   I started doing audio seminars as a way to answer the frequently asked questions that we were getting. The hope was that the audio seminars would make the information accessible, as many questions can not or should not be answered quickly. We often make one of them available for free so that people who can not afford to listen can have some access. If you visit our site at http://www.solari.com, you will see that we make accessible a great deal of information for free. This, however, requires that we find ways of being financially sustainable.

   The blog post that I referred to has been very effective at helping people understand the impact of a falling dollar. As I remember, the woman asked a question that was not possible to answer quickly and she needed to understand several things. The only place I know of that she can get that information in a thorough manner in 2-3 hours or less is by listening to the Positioning audio seminar. That is why I suggested it. The alternative was to not answer her question or where she could find answers. I would consider that a material omission — something which I consider unethical unless required by law.

   I do not do Flashpoints to make money. I do the Community Business show with Dennis because I think that there is no one better to help me understand how to help me make this information accessible in way that can help his listeners become more powerful, free people.

   So my intention is to teach you that which would be useful, not promote my material. That said, I am thrilled when I hear that people are able to generate a sustainable living and create wealth outside of the corporate hierarchies. Nothing will decentralize power out of corporate hierarchies faster.

   So I would encourage you to embrace a philosophy of promoting financial security for one and all as such grassroots financial health is the bedrock of a free democratic society.

   Thanks again,

   Catherine

5. Matt:

   No, it is not true.

   Solari publishes a precious metals audio seminars. One includes interviews with Franklin Sanders who is the precious metals dealer I use. One includes interviews with James Turk of Gold Money which is the digital gold services I use. I created a free website with Franklin Sanders company The Moneychanger, wwww.silverandgoldaremoney.com, and it pulls its pricing feed from the Gold Money site. I am also a member of the Gold Anti-Trust Action Committee. You can learn more about them at http://www.gata.org.

   If and when I recommend these are other avenues to learn about, track or purchase gold, to the extent that this involves revenues to another party, I or my companies do not presently and have not in the past received fees or commissions from them.

   I don’t remember ever mentioning their name on KPFA except when I was helping Dennis market $500 donations using our Complete Collection as a premimum (Solari markets it for $350 CDs/$250mp3). All of that money went to KPFA radio.

   Franklin Sanders, his wife Susan, and his family live down the road from me in Tennessee. I have eaten at their home many times and they have eaten at mine. I always take food and other things to contribute to the dinner table. I have attended his church several times and contributed to the offering. My best guess is that the cost of what I have eaten about nets out with what they have eaten and I have contributed as is generally the practice in rural Tennessee.

   I am a member of a Solari Circle that has invests in and keeps its cash balances in precious metals. My investment is approximately $3,000. Saying that is a disclosure, this is NOT A RECOMMENDATION that you invest in what my Solari Circle holds. Each person’s situation is unique and there are numerous people/situations that SHOULD NOT invest in precious metals.

   I agree with you that deflation appears to be the most powerful trend going on in terms of assets pricing. My view is that the deflationary probabilities are rising and the next 18 months will much more track with the 1988-89 period, save for the fact (a big one) that the fundamental economy is much weaker then it was at that time.

   One of the reasons that is happening is because the inflationary impact on prices (food, energy and all the functions those rises flow through) is causing various people to sell assets to cover overhead and protect liquidity. The combination of this inflation/deflation is what I call the Slow Burn. I believe I am well known for being in the Slow Burn camp and outside of the inflation or deflation camp. For more on Slow Burn, see my following blog post: Slow Burn http://www.solari.com/blog/?p=1162

   My insistence on the importance of the drain that comes from the slow burn (and in that sense, inflation of expenses and the fall of the value of the dollar whichever you want to call it) is a result of actual experience in terms of the loss of equity and purchasing power. The mathematical reality of what has happened to people who shifted into strong currencies or commodities that provide a natural currency or in an home base that significantly reduced their overhead speaks for itself, relative to those who stayed in fixed income assets denominated in the dollar. See: http://www.solari.com/blog/?p=1162 . I hope to have another post on this, so stay tuned to the blog if you are interested.

   I cover this all of this in the Positioning Audio Seminar which I strongly recommend to anyone who wants to understand a thorough picture of my approach as it stands today. I say this with the caveat that one of my main messages is not that you should not do what I think or believe what I believe. Besides that, who knows what tomorrow brings. That is why I focus on scenario planning, as described further in Positioning, and not betting the ranch on any particular scenario.

   This is a highly uncertain environment. We need to stop trusting in experts, including me, and take responsibility to understand what we are doing, how the money works around us and use our money effectively to reinvent our world. As a society we would be well served to shift from speculating and wasting — whether our time, our money and our other resources — to investing in things that are real and last.

   That said, we are in the invention room together, so this will require great cooperation and ongoing learning. No one is as smart as all of us. Let thousands of smart and caring people each put a piece of the jigsaw puzzle down on the table and go to work together.

   If I appear to wear the mantle of journalism, let me put it down. I am not a journalist. I am investment advisor and a small business owner.

   Solari’s mission is not to make money. Profit is a performance indicator of a sound, sustainable business. It is not a mission, goal or value. My mission is to contribute to the creation of a financially intimate world. The reason I have that mission is because I do not want to live in a authoritarian world and this is what I am called to do about the destruction of live and freedom. It is a requirement of fundamental economics that I find a financially sustainable way to do that.

   In addition, I believe that creating financial equity is part of creating wealth. Creating wealth is essential to ending poverty and building strong families and communities. Our families need more wealth, not less. I hope my work contributes to financial wealthier families, communities and world. I should note that I am deeply concerned when I interact with the KFPA audience that there is a spirit that seems to require and approve of poverty. It is not a spirit I share and it is my hope that I can encourage a change to a more abundant intention. I believe that a deprivation spirit serves the authoritarian model.

   Hence, I am keenly interested in building wealth for myself through building my companies and doing it in a way that builds wealth for you and all of the people I interact with.

   I drafted a letter in response to the letter you refer to which I will post in a separate reply below.

   The party with a sizeable banking and brokerage and investment operation in this situation is not me or my companies, it is KPFA and Pacifica. Their resources are quite formidable compared to mine. Among other things that receive significant revenues from the federal government and are not required to pay taxes on their businesses, like small businesses.

   I would welcome your assistance in calling for the full disclosure of their banking and brokerage relationships and the specific securities holdings in their endowments and reserves:

   How Does the Money Work at KPFA Radio and the Pacifica Network?
   http://www.solari.com/blog/?p=1299

   I believe that their tax exemptions, their journalist mantle and their stated mission and values justify such illumination.

   Best regards,

   Catherine

6. Catherine, the email claims you are directly affiliated with a gold broker. Is this true?

   I have enjoyed your presentations very much on KPFA, but it does seem that you have an inflexible view that increased inflation is inevitable.

   You seem to hold this view despite compelling evidence of massive deleveraging and the dramatically increasing risk of a collapse in worldwide consumer demand caused by the absolute liquidation of the world’s financial system. Under this perfectly plausible scenario a DEFLATIONARY burst is just as likely.

   Such an asset-based deflationary cycle would have strong downward implications for both the price of oil and gold. And indeed we have started to see each of them fall in price because of falling demand.

   I think those wearing the mantle of journalism should fully disclose if they have a strong financial interest in the underlying securities they are discussing.

   Respectfully,

   Matt

7. Catherine,

   I think the problem seems to spring from what seems to be a power grab by a young, inexperienced, new manager — from upper crust Ethiopian society — who appears not to have a clue as to how the world works — see ,a href=”http://nazret.com/blog/index.php?c=1&more=1&pb=1&tb=1&title=kpfa_radio_introduces_new_interim_manage”>her bio

   I believe that the KPFA management may be treating her with kid gloves because of a case she has filed against KPFA

   There is this also from another site that is perhaps relevant.

   Another discussion may also be relevant.

   Quote:

   Many of us have some extremely frustrating and negative experience with Lemlem, and attended the meeting in order to urge the board NOT to send her name forth for confirmation as permanent GM. There is, we’re told, at least one other candidate. The board members are not allowed to reveal the names of candidates to non board-members. I’m writing this because I’m hoping I can convince others to send emails or statements to Sawaya urging her not to confirm Rijio as General Manager. (I’m pretty sure Rijio’s name was forwarded along to Sawaya, though I haven’t confirmed it. If not, it will be, and if later, most likely with even less chance for alternatives.)
   .
   .
   .
   .

   The buzzwords often used to describe the style of Rjio/Lilley are “lack of transparency, accountability, and atmosphere of secrecy.” I’m trying a little bit here to break the buzz-words into meaningful meat. I do want to say, as my actual workday nears and I see I won’t finish this now, that the buzzwords, each one, has more than adequate substance behind it.

   ———

   Also from another discussion

   Quote:

   KPFA interim manager Lemlem Rijio who refuses to recognize the unpaid staff organization (UPSO) despite calls by the KFPA Local Station Board and the Pacifica National Board has now banned KPFA community volunteer programmer Francisco Herrera without any warning or notice. This is similar to action she has taken by Rijio to purge Youth Radio and other programs.

   If you just google “Lemlem Rijio” you will come up with plenty more!

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