43 Comments

1. Catherine Austin Fitts

   Re: The Housing and Economic Recovery Act [Fiasco] of 2008

   Briefly stated as an introduction, I was the owner of a computer and business consulting business for many years wherein I changed course and became the founder and ceo of the Small Business Development Corporation in San Francisco (defenestrated 1997), where, among many other activities, I both defended and promoted the “Small Business” and “Middle Class Community” at thousands of public hearings at the local, state and federal level regarding hundreds of issues. At one point I became the official “no committee” regarding a key initiative ballot issue and simultaneously ran against Willie Brown for Mayor. It soon got to the point where he would not debate me; the audience could tell I was telling the truth, and Willie wasn’t. Many people, including my opposition said I changed the course of history during my tenure, but liittle was reported in San Francisco’s liberal media; to do so wasn’t politically correct. I lost the mayorial election, but I did win the ballot initiative though I had spent only the price of the filing fee and costs associated with reproducing and hand distributing my “position paper” at the neighborhood debates, while my opposition had spent in excess of $1 million on a full-blown campaign effort.

   Simply stated, I can assure your readers that the socio-economic sequence of events since about 1986 have been orchestrated in a manner much like the classic “shell game” where it is impossible to keep an eye on the pea becaise the hand — and politicians — are quicker than the eye. Clearly, the escalation in the price of gasoline, food and other commodities this past year and the bursting of the “housing bubble” in recent months are important elements in the plan to destroy the American Middle Class once and for all, forever.

   In important part, my ongoing research activities produced a surprise last Friday in the form of Chairman Bernanke’s March 30, 2007 report titled, “The Community Reinvestment Act: Its Evolution and New Challenges,” which provides substantial detail regarding both the history and the laws and policies enacted since the CRA Act was adopted in 1977.

   http://www.federalreserve.gov/newsevents/speech/Bernanke20070330a.htm

   Before one downloads and reads subject Chairman Bernanke’s report using the above URL, I ask that you first review the following key points and background information that was sadly lacking in both Chairman Bernanke’s report and recent news coverage thus making it possible for people under the age of 40 to understand the “text and tone” of the report. This in turn makes it possible to understand the fact that the recent “housing collapse,” the proposed “bailout” bill, and The Federal Reserve’s “takeover” of the US financial markets are the product of what I know to be a well funded, intentional plan to “Finally Destroy the American Middle Class” such that America becomes but another Third World Country consisting of only two “classes,” Rich and Poor, utterly controlled socio-economically by certain ancient families, governmental officials and organizations in a manner replicating that of Mexico, which is essentially controlled by 10 families.

   I make no attempt to convey all the pertinent key points here, but the following points should serve to inform your readers to a degree adequate to understand that which is “really going on” so that they can convey to their Congressional Representatives “no way, no how” and “I’m not going to take it any more,” such that the facts of the matter become front page news and the details of the whole mess “blows up” in the faces of both the guilty proponents and the culpable innocents who can and will recover and get on with their lives — as Americans. I acknowledge that the “displaced” sub-prime “victims” who tried to acquire a house on a marginal income may have to move back into an apartment for two or three years, but if they save the same amount as the mortgage, they will be able to buy another house costing half of what it was originally via a substantial cash down payment.

   Key Points and Background Information

   I – The What and How of the Political Environment

   First, the rampant fraud and theft that has gone on beneath the radar of most Americans between 1986 and the present were implemented, funded, and protected on a colossal scale by both Congress and certain Administration departments for self-serving political purposes.

   The proof of rampant fraud and theft resides in my archives and in the archives of the innercitypress.com website, who daily fought like junk yard dogs for many years before numerous Congressional and Administrative oversite committees, to no avail — because “the fix was in.”

   Second, the mantra and political movement declared as “a right of access to housing” was both the mechanism and the process used to BUY votes and GAIN political power while making banks, sub-prime lenders and non-profit, 501(c)(3) corporations (dubbed “Poverty Pimps” by a friend and I) very wealthy at taxpayer expense totaling many billions, possibly trillions of dollars in the form of millions of housing units being constructed or otherwise controlled under the nom de plume of “low cost, affordable, housing.”

   But most of the rents in low income housing projects are not “low” because local elected officials enacted laws and policies that purposefully escalated the cost of living yearly, if not weekly, while incomes remained the same or declined because of the illegal labor force, and because the high-density units are small and both the rental income/debt service payments and the absent property tax effectively makes the units “tax free” to the owners of the non-profit, 501(c)(3) corporations.

   This accruing, hidden “expense” regarding subsidized housing has been unknowingly absorbed by local and national taxpayers for more than a decade that includes the bridging loans, construction costs and “tax free” accrued wealth that will at least DOUBLE the drain on local and national economies if the Democratic and Republican leadership have their way with the “Bailout” Bill.

   Third, under federal, state and local law, any jurisdiction may “declare” any area as “blighted,” even in Upclass or Middle Class Neighborhoods (the latter being the prefered target area because few residents have the cash, time or the expertise to go to court), thus the very-low-interest federal and state “off budget” loans and grants are made available almost solely to the politically-connected plethera of Non Profit (“Poverty Pimp”) Housing Corporations.

   Take note that during subject years, the key Democrat States/Cities bought lots of votes with this program! And these units also house ILLEGALS – often with 2 to 5 families living in a single house while code enforcement officials turn a blind eye.

   Fourth, as stated in Chairman Bernanke’s report, “by the late 1980s, however, the issues surrounding access to credit were attracting renewed interest. In response to this interest, the Congress included in the Financial Institution Reform and Recovery Act of 1989 (FIRREA) an amendment to the CRA statute to require public disclosure of [banking] institutions’ ratings and performance evaluations.”

   Thereafter, elected officials, bureaucrats, the Poverty Pimp Organizations, and the publishers of Liberal Newspapers rethorically used the required “evaluation data” to force via “mob rule,” and “wink, wink, nod, nod” tactics before Planning Commissions the construction of (or conversion of existing properties to) low and medium income housing projects, often multi-units projects rising as high in the sky as the Planning Commissions dared allow, and nearly always with 100% lot coverage — with total impunity, i.e, if a land owner argued in court, he lost, according to Law and Practice before a friendly judge.

   Fifth, the above policies and practices eventually ruined the quality of life in an increasing number of historic neighborhoods much akin to a creeping pandemic disease, wherein the residents would move to a “safer” neighborhood, and the Poverty Pimp Corporations would buy the property “for a song” because no other buyer would even make a bid on the property, or the listing wasn’t made public.

   And after a certain number of years, or due to certain conditions, and changes in law, natural disasters, etc., the units would become “Market Rate” housing, but the ownership of the units didn’t change, or the ownship was transferred to another non-profit entity, controlled by the same original people. And the well-oiled political machine continued on as it has for decades.

   The Why of the Political Environment

   In all jurisdictions there exists multiple political machines. Most are benign because of a degree of balance among the groups of players because the flow of dollars during the year does not justify the time and effort it takes to build and operate a predatory political machine. However, San Francisco and all urban political centers have a flow of dollars that include a public and private economy measured in billions of dollars that provides encentives in terms of the financial and political rewards that justify the endless days of planning, collusion and intentional compartmentalizaton required to obfuscate what is going on behind the scene from being visible to the ordinary taxpayer. But once a predatory political machine gains a toe hold, the environment changes, often very quickly.

   A key indicator of this change is the growth rate of the bureaucracy via creating layers of people with pseudo authority and as many staff personnel as possible between the conspirators and the public.

   These changes also reduce the risk of discovery of wrongdoing to near zero because everyone involved derives their day to day income from the taxpayer and discovery could result in prison and mass layoffs. Thus, there exists a cardinal rule that nothing is ever accomplished in the interests of the residents, everything is done in the interests of the bureaucracy and bureaucrats’ “projects.” Everything otherwise discussed or promised to residents are illusionary — a “dog and pony show” — in a manner not unlike a movie or any other theatrical performance. This is one reason why the entertainment industry receives such wide coverage in the media: the antics of actors serves to obfuscate the line between fantasy entertainment and corrupt reality. The movie, “The Godfather” is a good example. The plot provides the audience with snapshots on both sides of the illusionary line — the “good” and the “bad” in “everyone.” And after a lifetime of watching similar movies, the line between fantisy and reality is intentionally blurred in that both the good and bad characters go home to a normal life, like you and me. But the actors of corrupt reality never go home; they are creating reality according to their whims and degree of greed. In real life a bad actor as king, dictator or president may create a benign kingdom, another bad actor, such as Hitler may create a murderous regime, other bad actors may create a chronically corrupt regime that lasts for generatons.

   The American Middle Class – The Cornerstone Of American Freedom

   After many years of domestic and international travel, working with people from all walks of life, developing systems or solutions for many industies and reading and understanding history, I concluded one day that:

   The growing of the American “Middle Class” occurred because America began with no entrenched form of government controlling the whole of the land mass where the individual or group either prospered or died from starvation or freezing to death, as free individuals, who made their own way, provided for themselves, their wife, their family, their friends, their neighbors and their nation, who then created and defended the Constitution of the United States and the Bill of Rights.

   Returning to a Middle Class America

   Thus, the only way America can survive today’s perils is for Americans to declare and assert that the American Middle Class, regardless of race or color, natural born or naturalized, shall within five years again own and control at least 51 percent of the land, assets, and the economy as the only practical, non violent, means to remove bad actors from the political scene before thay can act to collapse the economy due to benign neglect, the murder of millions of people, or an entrenched, corrupt regime as suffered by other countries who either failed to develop a Middle Class or acted to destroy their Middle Class.

   What Happened to America This Past 60 Years?

   I am familiar with the machinations of New York City’s Tammany Hall and made it my business to understand the plans and projects being implemented by San Francisco Bay’s cast of bad characters, a situation that I concluded must be challanged. Thus I became involved in the above-referenced election of a new Mayor and the ballot issue that upon adoption would set the scene to instantly created a Tammany Hall “West,”

   I lost the battle for Mayor, but won the important battle, the ballot initiative, which precluded city officials and their “partners” from doing what they wanted, to whom they wanted, when they wanted, with goals to transform San Francisco to that of high-density housing and commercial high rises, offering only retail, commercial and tourism venues, and thus a limited diversity in the types of jobs available — along with the forced displacement of the “Small Business Community” throughout the length of San Francisco’s Waterfront, from the Golden Gate Bridge to the San Mateo County Line.

   San Francisco had become my adopted city of 20 years, and I could not let this happen, and to achieve my main goal to prevent this outcome, I had to force the registrar of voters to lock the absentee ballots in a safe under seal until I was satifisfied that they were counted as correctly as I could achieve, winning by a margin of only 550 votes. I subsequently proved that the election of office holders was “cooked,” but state and national election officials and the media mearly ignored my evidence.

   After the election dust settled, Willie Brown and his Private Partners set the tone of San Francisco’s future. Proponents of Socialism, Communism, Nazism, etc., soon emerged. The California Legislature was also a “partner.” Due process was gone, Justice was replaced with Law and Policy that changed every week. Elections became Democracy by Subsidized Mob Vote (“Vote Early, Vote Often”). In a matter of years the quality of life deteriorated as did the quality of succeeding Mayors. Multi-national corporations were Willie Brown’s Partners, not the residents of San Francisco. Historic Small Business Areas were ripped out, replaced by Corporate Giants — Enron, the Dot Com World, Environmentalism — all of them driven by hype, incompence and arrogance. They all crashed. Willie Brown & Company cheered and promoted their projects, but vehicle traffic became a constant 3 miles per hour, and San Franciscans moved away, replaced by illegals and tourists. San Francisco wasn’t fun any more. Most people had to work two jobs just to pay rent and eat. I predicted what would happen and when and why. My testimony at a thousand hearings slowed things down by about 10 years, but subsequent media stories reported that I was proven to be right in my predictions, leaving a bad taste in my mouth.

   In essence it was the import of Neo-Communists that is the base of the decline — people who insisted on helping everyone — if one was a member of a designated group — but really acting to control the economy, the ownership and use of land, and peoples’ lives with an iron fist, all of it funded by billions of federal and corporate dollars, with more on the way to hide the failures and boonedoggles of the past. I find it provocative to note there is little difference between Machine Democrats and Machine Republicans:

   Machine Politicians, as discussed above in the What and How Section, derive their power and authority by Socialist means in that they impose taxes on a victim during the course of one’s life’s work, effort, failures and achievements, and then displace them with a new group of victims creating a politically defined “pecking order” that changed with the passage of time. The first “Social Justice” was the funding of American Indians which was replaced by funding Oriental Yellows, who were replaced by funding African Blacks, who were replaced by funding Brown Hispanics and Latins, all of whom were replaced by funding Women Of Any Color.

   Today, the last un-funded “group” remaining are White Men Of Any Nationaity, unless he is married, thus leaving only Single White Men Of Any Nationality. And now, the Machine Democrats are acting to bring Anybody From Anywhere, who posses few skills and even fewer scruples — to America — as long as they are Not White Men — to displace Americans of Any Color. But what this chain of declared Privilaged Groups don’t know or understand is that the billions in cash that flowed through their hands for housing, social services, jobs programs, etc., ended up in the pockets of the Democratic Power Broker’s as Untaxed Poverty Pimp, 501(c)(3) Cash Flow Dollars.

   Clearly, the Democratic Leadership dances privately in glee knowing that they live well on Un-taxed Dollars, while the people they gathered and compromised with promises and freebies live an almost totally dependent life, at or about a level of income just slightly more than the outgo, a trap the Democratic Leadership knows from which they will never escape on their own. In short, American Democrats have gone from shackling Black Slaves forced to live on Plantations to where Red and Yellow and Black and Brown Peoples and Women are financially shackled to where they can afford (allowed) to live and where it has been decided (tested) as to where and what work they do. Clearly, there is no distinction between these two periods of physical than political enslavement in American History separated by about a 100 years.

   And it is important to note that the American Middle Class had nothing to do whatsoever with the enslavement of anyone, domestically or internationally.

   In sum, this is the status of the true situation today. What will it be tomorrow? If this information is presented in the newspapers and the Six O’clock news, there will not be an “economic crash” or a “depression” and the cost of living will soon decline to True (intrinsic) Market Value again, and maybe Rock and Roll music and dancing will crank up again and everybody will have a little fun like we used to in the 1960’s and 1970’s!

   As Americans, lets individually act to support and restore the American Middle Class.

   Historically, it has been the existance of a Middle Class that has successfully served to preclude the loss of one’s country and culture. And don’t forget, America is today just about the only viable Middle Class remaining in the World. And the countries that had a growing and viable Middle Class (Mexico, France) were destroyed by their own politicians.

   It’s up to you. Tell a friend.

   *** End of Document ***

   Dehnert Queen

   American

   Lucerne Valley, CA

   760-248-7651 Land Line

   214-500-6544 Cell

   chr@sisp2.net

2. Catherine Austin Fitts

   Re: The Housing and Economic Recovery Act Fiasco of 2008

   I was founder and ceo of the Small Business Development Corporation in San Francisco for many years (defenestrated 1997), where, among many other activities, I both defended and promoted the “Small Business” and “Middle Class Community” at thousands of public hearings at the local, state and federal level regarding hundreds of issues. At one point I became the official “no committee” regarding a key initiative ballot issue and simultaneously ran against Willie Brown for Mayor. It soon got to the point where he would not debate me; the audience could tell I was telling the truth, and Willie wasn’t. Many people, including my opposition said I changed the course of history during my tenure, but liittle was reported in San Francisco’s liberal media; to do so wasn’t politically correct.

   Simply stated, I can assure your readers that the socio-economic events since about 1986 have been orchestrated in a manner much like the classic “shell game” where it is impossible to keep an eye on the pea — the hand, and politicians — are quicker than the eye. Clearly, the escalation in the price of gasoline, food and other commodities this past year and the bursting of the “housing bubble” in recent months are important elements in the plan to destroy the American Middle Class once and for all, forever.

   In important part, my ongoing research activities produced a surprise last Friday in the form of Chairman Bernanke’s March 30, 2007 report titled, “The Community Reinvestment Act: Its Evolution and New Challenges,” which provides substantial detail regarding both the history and the laws and policies enacted since the CRA Act was adopted in 1977. [http://www.federalreserve.gov/newsevents/speech/Bernanke20070330a.htm]

   Before one reads subject Chairman Bernanke’s report, review the following key points and background information that was sadly lacking in both the report and recent news coverage thus making it possible for people under the age of 40 to understand the “text and tone” of the report. This in turn makes it possible to understand the fact that the recent “housing collapse,” the proposed “bailout” bill, and The Federal Reserve’s “takeover” of the US financial markets are the product of what I know to be a well funded, intentional plan to “Finally Destroy the American Middle Class” such that America becomes but another Third World Country consisting of only two “classes,” Rich and Poor, utterly controlled socio-economically by certain ancient families and governmental officials and organizations in a manner replicating that of Mexico. which is essentially controlled by 10 families.

   I make no attempt to convey all the key points here, but the following points should serve to inform your readers to a degree adequate to understand that which is “really going on” so that they can convey to their Congressional Representatives “no way, no how” and “I’m not going to take it any more,” such that the facts of the matter become front page news and the details of the whole mess “blows up” in the faces of both the guilty and the culpable innocents who can and will recover and get on with their lives — as Americans. I acknowledge that the “displaced” sub-prime “victims” who tried to acquire a house on a marginal income may have to move back into an apartment for two or three years, but if they save the same amount as the mortgage, they will be able to buy another house costing half of what it was originally via a substantial cash down payment.

   Key Points and Background Information

   First, the rampant fraud and theft that has gone on beneath the radar of most Americans between 1986 and the present were implemented, funded, and protected on a colossal scale by both Congress and certain Administration departments for self-serving political purposes.
   The proof of rampant fraud and theft resides in my archives and in the archives of the innercitypress.com website, who daily fought like junk yard dogs for many years before numerous Congressional and Administrative oversite committees, to no avail — because “the fix was in.”
   Second, the mantra and political movement declared as “a right of access to housing” was both the mechanism and the process used to BUY votes and GAIN political power while making banks, sub-prime lenders and non-profit, 501(c)(3) corporations (a friend and I dubbed “Poverty Pimps”) very wealthy at taxpayer expense totaling many billions, possibly trillions of dollars in the form of millions of housing units being constructed or otherwise controlled under the nom de plume of “low cost, affordable, housing.”
   But most of the rents are not low because local elected officials enacted laws and policies that purposefully escalated the cost of living yearly, if not weekly, while incomes remained the same or declined because of the illegal labor force, and because the high-density units are small and both the rental income/debt service payments and the absent property tax effectively makes the units “tax free” to the owners of the non-profit, 501(c)(3) corporations.
   This accruing, hidden “expense” unknowingly absorbed by local and national taxpayers for more than a decade includes the bridging loans, construction costs and “tax free” accrued wealth that will at least DOUBLE the drain on local and national economies if the Democratic and Republican leadership have their way with the “Bailout” Bill.
   Third, under federal, state and local law, any jurisdiction may “declare” any area as “blighted,” even in Upclass or Middle Class Neighborhoods (the latter geing the prefered target area because few residents have the cash or the expertise to go to court), thus the very-low-interest federal and state “off budget” loans and grants made available almost solely to the plethera of Non Profit (“Poverty Pimp”) Housing Corporations.
   Take note that during subject years, the key Democrat States/Cities bought lots of votes with this program! And these units also house ILLEGALS – often with 2 to 5 families living in a single house while code enforcement officials turn a blind eye.
   Fourth, as stated in subject report, “by the late 1980s, however, the issues surrounding access to credit were attracting renewed interest. In response to this interest, the Congress included in the Financial Institution Reform and Recovery Act of 1989 (FIRREA) an amendment to the CRA statute to require public disclosure of [banking] institutions’ ratings and performance evaluations.”

   Thereafter, elected officials, bureaucrats, the Poverty Pimp Organizations, and the publishers of Liberal Newspapers rethorically used the required “evaluation data” to force via “mob rule,” and “wink, wink, nod, nod” tactics the construction of (or conversion of existing properties) to low and medium income housing projects, often multi-units projects rising as high in the sky as the Planning Commissions dared allow, and nearly always with 100% lot coverage — with total impunity, i.e, if a land owner argued in court, he lost, according to Law and Practice before a friendly judge.

   Fifth, the above policies and practices eventually ruined the quality of life in an increasing number of historic neighborhoods much akin to a creeping pandemic disease, wherein the residents would move to a “safer” neighborhood, and the Poverty Pimp Corporations would buy the property “for a song” because no other buyer would even make a bid on the property, or the listing wasn’t made public.

   And after a certain number of years, or due to certain conditions, and changes in law, the units would become “Market Rate” housing, but the ownership of the units didn’t change, or the ownship was transferred to another non-profit entity, controlled by the same original people.

   In sum, this is the status of the true situation today. What will it be tomorrow? If this information is presented in the newspapers and the Six O’clock news, there will not be an “economic crash” or a “depression” and the cost of living will soon decline to True (intrinsic) Market Value again. Maybe Rock and Roll music and dancing will crank up again and everybody will have a little fun like we used to in the 1960’s and 1970’s! It’s up to you. Tell a friend.

   *** End of Document ***

   Dehnert Queen
   American

   Lucerne Valley, CA
   760-248-7651 Land Line
   214-500-6544 Cell
   chr@sisp2.net

3. Catherine,

   You have my deepest respect in what you are doing. Your courage and stamina is something to wish for.

   Now I’m not a US citizen, I’m living in Sweden. What I can clearly see is that my government and central bank is participating in this charade, by selling gold etc. but I don’t really know how to assess our situation here. Almost all media is in favor of the bailout and at the same time they say that the situation in our country i under control and that our banking system is well capitalized…

   Do you know what steps to take to assess another country’s situation with regards to “tape worm economics” and the ongoing and escalating crisis?

4. Censorship

   A year ago when you were on Coast-to-Coast AM, you started discussing Halliburton/KBR and the Bush deceits. When 740 AM came back from their newsbreak they were no longer airing that nights program but switched to an archived back up without you. It was only AM740 in Houston, home of Halliburton and the elder Bush, that cut you off because I switched to 560 AM in Beaumont and you were still on the air. I wrote about it at the time.

   http://elemming2.blogspot.com/2007/08/censorship-and-uncivil-airwaves-on.html

5. Sebastian:

   It is not to late to start alternative currencies. Indeed, now is a good time. At the end of the great depression there were app. 3200 community currencies in America. Barter is something to look into as well.

   Glen:

   Yup. How do we stop the “corruption tax”? It is a cancer that is driving the healthy out. We need a spiritual and cultural revolution in which millions decide they will not go along with it anymore.

   As millions shun the dirty players and focus our time and attention on rebuilding, magical things are happening,

   Mlyn:

   Great idea! Thanks! I agree, many people really want to know what is going on. Helping them is indeed an opportunity for all of us,

   Catherine

6. The U.S. FIRE industry is in danger of imploding (Finance-Insurance-Real Estate). While Hank Paulson and Ben Bernanke are prostrating before Congress for $700 billion dollars, we should do all we can to disseminate Catherine’s message to the hoards of active investors. As a class, they want transparency and accountability in order to make investment decisions. They seek out information from many perspectives: political; economical; international. It is a global paradigm because of the danger of the U.S. dollar, the international reserve currency, falling. More and more people want to know “how it worked ” (unregulated so that anything goes) to “how it should be” (regulated so that it’s a level playing field).

   If Catherine’s message is shut out of the media, liberal or otherwise, we need to disseminate it in as many ways as possible–through blogging on investment blogs (SeekingAlpha.com is one), blogging on MSNBC, Fox News, or Yahoo Finance or Google Finance. Go to websites you never would visit before and promote Catherine’s message. This financial crisis is an opportunity, but Catherine cannot do it alone. We soldiers have to help her. There are many, many people who want to understand what’s currently happening.

7. Words really pale when addressing these facts. Tonight, one of my kids asked me that if Rumsfeld knew what was about to happen on 9-11, why would he talk about missing money the day before? I told him that it might have just been a slip of the tongue, and that the truth is like a geyser..you can’t hold it down forever. In Romans, Paul talks about how evil people constantly work at concealing the truth in unrighteousness, but…the truth will out. And, I love the part that says, “..where sin abounds, grace super-abounds”. Hopefully, we’ll live to see a better day for this country and the world. Maybe this is the darkness before the dawn.

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