The Editor of Expresso in Portugal wanted my take on the recent G-20 communique. Here is my “translation” of the official statement:
1. Now that the growth of debt and derivatives bubbles has stalled, we are committed to using governmental-central bank mechanisms to cover the positions of any of the large private financial institutions whose profits are at risk due to their management of these bubbles and who can use this opportunity to squeeze and acquire smaller rivals at low cost.
2. Our commitment to use derivatives and market interventions to shift investment from the real economy and commodities into a paper economy is firm. We will continue to use centralized governmental mechanisms to subsidize and manage this process.
3. All of the organizations and players who reaped a fortune engineering the debt and derivatives bubbles will be allowed to keep their winnings.
4. We will use this period of consolidation to further centralize the global financial system by enforcing greater centralization of the standards, practices and control of enforcement and regulatory bureaucracies. This increased governmental centralization will be presented as the “fix” for our “problems.”
5. We will continue the move toward one world government and one world currency.
6. We are prepared to use coordinated inflation of global money supplies and fiscal stimulus to protect our control and positions.
7. We are committed to the Slow Burn (see my blog post on this subject).
8. This process will continue to be managed to protect large insurance and risk positions.
9. The net result will be to continue to exercise growing control over the real economy by a handful of private families and institutions designed to protect and grow intergenerational wealth.
G-20 are silent on the military and covert action that will be required to make this stick. They are also silent on how they are going to manage this much inflation. For example, the most recent figures from the St. Louis Fed indicate that the aggregate monetary base is growing at an annualized rate of almost 800%.
Watch for a new focus on “green investing” as the trick in all of this will be how to create new productivity when the absence of real prices mean there is no market to provide the necessary signals and financial incentives.
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Video clip: Catherine Austin Fitts discusses Housing Bubble fraud in 2008: Live from San Francisco
Following a successful career on Wall Street, Catherine Austin Fitts was appointed U.S. Assistant Secretary of Housing / Federal Housing Commissioner in the first Bush administration. Catherine’s story is chronicled here: dunwalke.com.
A note on ideology.
In old-speak, I am a democratic capitalist with a conservative leaning. I believe in freedom of information, speech and free markets. I am dedicated to the importance of good manners.
I believe that organized crime is the enemy of free markets, no matter how much free market rhetoric is used to justify organized crime and destroy the intellectual integrity and popular understanding of the role of healthy markets, the rule of law and optimization of economic communication and performance.
I am for de-centralization of decision making — hence, uncomfortable with systems that depend on force and that reduce optimization such as communism or IMF/World bank systems.
I agree with the Declaration of Independence — our freedom comes to us through divine authority and governing structures receive their authority from the consent of the governed.
I agree with Sting — if you love someone, set them free.
I agree with Jesus Chris — I come that you should have life more abundant.
I attempt to live up by the 10 commandments. My current performance affords me much opportunity for improvement.
Most importantly, I am uncomfortable with ideology. As my late, great uncle, Dr. Charles T. Fitts, used to say, “God save me from the bastard with a mission.”
I have found that a sense of humour, a heart of love, a state of amusement and a commitment to being useful and to appreciate the mystery of life and little things supports good listening and turtling forward.
It is by turtling forward and being useful to each other that the new systems will emerge….who knows what they will be. Since no one is as smart as all of us, our potential emerges if we listen and learn from each other.
Hence, my preference for sharing useful data and aligning with people of diverse philosophies for practical action over discussions of ideology.
Another reason to love the Internet!
Thanks Catherine for the great Commentary. You did your best to inform us!
Wow Catherine…
never thought you’d attract so many “evangelicals”. It seems many people are much more inclined to follow world events only insofar as it “fulfills” whichever prophecy they have subscribed to rather than using the information to take control of their own destinies. Naturally, this inclination is what has allowed the bastards represented by this G-20 to get as far as they have.
In any war, and we are at war with these interests, one must utilize the tools at one’s disposal. We do not have the weapons, they do. We do not have the money, they do. So, what do we have? We have ourselves, which is another way of saying: we have society.
Make them pay.
A credit card company does not distinguish between a goodhearted man and a psychopath. They make only a distinguish between a man with good or bad credit. We will only distinguish between bankers and non bankers, brokers and non brokers. They shall be shunned from society.
How’s that for a prophecy?
Get to work
My comment re Catherine applying for Secretary was the first comment I ever posted to this website.I wrote what I said tongue-in-cheek, thinking that Catherine would get a laugh from it. Full disclosure: Catherine is my financial advisor. My mother had entrusted me with preserving her capital prior to her stroke and that left me with finding a way to doing just that – preserving her capital.I had family members who were very effed off at me for taking action without consulting them. Catherine provided a forum for the airing, and yes, eventually healing of our views. We didn’t do everything Catherine advised, but looking back, I do believe Catherine is prescient. Who heard of the credit crunch – what was it now, two years ago? I dunno, even if it is a far fetch – I still wish Catherine would be the next Treasury Secretary.
Imagine the healing that would occur? On many levels, across nations, worlds. I can have a dream.
David , thank you for your explanation pertaining to Obamas election and his ultimate purpose. How deluded people can be never ceases to amaze me. Obama whether he himself honestly ever believed in change or not, is going to be used, as you say David, to safeguard the STATUS QUO. Yes, you can fool some of the people ALL of the time, a saying I think, attributed to President Bush jr.
Catherine Austin Fitts, is a friend of the working citizenry of the world, and the best expositor on the criminality that is Wall Street and other stock markets. No this is not a communist type statement. These so called capitalists are anything but. They are rapacious, lazy, corrupt to the core thieves, who do nothing but make money of other peoples money. They produce nothing. They stand for nothing. They help no communities. They are quite simply enemies of honest people around the world.
To all Americans and citizens of the World:
The current economic system in use is; John Maynard Keynes (Keynesian). This is none other than what the now infamous Wall Street Gang, Banks and Insurnce companies have used. Wish everyone reading would check out Ludwig von Mises. His Economic policy would put Amercia back on tract. You see fellow citizens, Politicans and Lobbyists love when “you” are ignorant to Ecomonics. They can push through their bills into laws because ninety-nine per cent of Americans do not know Ecomonics.
Abe Lincoln