Thursday, 16 July 2015



By: Al Cronkrite
“Gentlemen, I am obedient to the laws of God and there is nothing that you can say or do that will cause me to violate them. If that means that I am going to jail, then I am going to jail, if only to organize the last group of entrepreneurs I need to run the country when the government collapses. Because if people like me are going to prison, then it is only a matter of time until this government fails.” Catherine Austin Fitts when faced with a choice between dishonesty and jail.

"True peace can only be found when truth is its foundation, justice its law of action, love its driving force and freedom its setting. It can never be achieved on any other basis. Only through love and respect can peace be kept." -- Pope John XXIII, Pacem in Terris, 1963
Catherine Fitts, a partner at investment banker Dillon Read & Co. Inc.; invited to be a Governor of the Federal Reserve and to be a member of the CFR (she refused both); leader at the Federal Housing Administration with 7,000 employees plus responsibility for the largest mortgage insurance fund in the world; and proprietor of her own enterprise, the Hamilton Group (named from Alexander) has written an article that details some of the skullduggery that took place a couple of decades ago. There is considerable speculation in the piece but Fitts’ extensive knowledge of finance and banking along with her personal involvement with the individuals and situations lend credence to her conclusions. The 124 pages (including footnotes) provide a detailed description of the pervasive flow of laundered drug money into our economy and a host of sinfully avaricious individuals and corporations (she is specific) who scheme to get rich with it and without it. (Read or print the entire article here.)

Without the drug money Fitts believes the economy might collapse. She describes the 1980s influx of raw narcotics into Mena, Arkansas and South Los Angeles with links to the government and mentions a similar drug smuggling operation going on in Europe. She records the details of a lawsuit filed by the European Union against big tobacco charging them with aiding the drug dealers in cleaning up their largess. Item #3 of the suit reads as follows: “The RJR (R. J. Reynolds) defendants have, at the highest corporate level, determined that it will be a part of their operating business plan to sell cigarettes to and through criminal organizations and to accept criminal proceeds in payment for cigarettes by secret and surreptitious means, which under United States law constitutes money laundering” Read current information here. 

Ms. Fitts has invented and intriguing index called the Solari Index which she describes as “the percentage of people in a place who believe that a child can leave their home and go to the nearest place to buy a Popsicle and come home alone safely”. This index, once at 100, now almost zero, is accompanied by a Wall Street flippancy called “Pop”. “Pop” is the relationship between income and stock price. If the stock trades at twenty times earnings, an additional $100,000 of income would increase the price of the stock by $2 million. Justice Department figures indicate between $500 billion and $1 trillion are laundered in the United States every year. Fitts believes $20 billion should move through her District. With drug profits as high as they are she thinks many business owners use profits from teen drug pushers to increase their bottom line and enjoy the twenty to one “Pop” in their portfolio. Drug “Pop” and the Solari index are inversely proportional.

Her theory is at least partially supported by a trip the New York Stock Exchange Chairman Richard Grasso (Read about Grasso here.) made to Columbia in June 1999 to meet with a spokesman for Raul Reyes of the Revolutionary Armed Forces of Columbia (FARC). FARC is listed by the State Department as a “Narcoterrorist” organization. (See a picture of this meeting here. ) This trip was reckoned to be a quest for the circulation of continued cocaine profits in the U. S. economy.

Recalling Oliver North’s shredding machine Fitts refreshes memories of Barry Seal and the drug run he set up into Mena, Arkansas. The papers Oliver North failed to shred resulted in an independent council indicting or convicting 14 individuals. When George Bush, the elder, became president he pardoned six of them including former Secretary of Defense Casper Weinberger. She goes on to connect the dots writing, “Mena drug running and the related money laundering is quite serious and makes the case that the government was engaged or complicit in significant narcotics trafficking. This includes the various relationships to employees of the National Security Council, the Department of Justice and the CIA under Vice President Bush’s leadership and to then Governor of Arkansas, Bill Clinton and a state agency, the Arkansas Development and Finance Agency (ADFA). ADFA was a local distributor of the U. S. Department of Housing and Urban Development (HUD) subsidy and finance programs and an active issuer of municipal housing bonds. One of it law firms included Hillary Clinton and several members of Bill Clinton’s administration as partners, including Deputy White House Council Vince Foster and Associate Attorney General Webster Hubbell.” (Note that former President Bush and former President Clinton are now quite chummy again.)

During her stint at Dillon Read, Catherine Fitts worked with the wealthy and the powerful witnessing the transition of her firm from a small investment banker to a hungry seeker of quick profits through leveraged buyouts. She describes the arrival of John Birkelund in 1981 and the changes that accompanied his arrival. Without further explanation, she was told that Birkelund was a “Rothschild man”. Later, after Fitts has left Dillon Read, a Read banker named Jewelle Bickford who presided over the default of millions of dollars of HUD bonds was promoted to Rothschild, Inc.

As things deteriorated at Dillon Read, in 1989 Fitts accepted a position at HUD. HUD was variously described by Treasury Secretary Nicholas Brady as a “sewer” and allegedly by Oliver North as “the candy store of covert revenues”. Several billion dollars migrated from HUD programs to unknown pockets during the 1980s.

Michael Milken’s junk bonds were an elixir to leveraged buyouts. They provided a quick source of large amounts of capital. Insiders gleaned millions of dollars from leveraged buyouts. In 1982 former Treasury Secretary William Simon lead a group that with a million dollars bought Gibson Greeting Cards for $80 million. When Simon’s group took Gibson public a year and a half latter it sold for $290 million allowing Simon a return of $66 million on his initial investment of $330,000. Using debt to buy an enterprise is many times a dirty business often tantamount to rape. Read about it here.
Decades ago our government began to privatize certain of it functions. Some prisons went private and under the Clinton presidency the Omnibus Crime Bill was signed into law. It encoded mandatory sentencing and provided ten and a half billion dollars for the prison construction these extended sentences required. Before the Bill had passed the Senate, former Attorney General Benjamin Civiletti joined the board of Wackenhut Corrections and 2.2 million shares of stock were tendered. Within four years the stock value increased 1000 percent. Several insiders made large profits on prison stocks.
Ms. Fitts did not last long at HUD. Her attempts to reform the system were stymied by Jack Kemp and led to her dismissal. Following HUD, Fitts founded her own company, The Hamilton Securities Group. Hamilton bid on and received a contract to act as lead financial advisor to the Federal Housing Administration at HUD. By increasing the recovery of defaulted mortgages Hamilton was able to generate over $2 billion in savings..

At one point Hamilton suggested that rather than construct new public housing at a cost of $250,000 per unit it might be prudent to reconstruct housing HUD already owned at a cost of $50,000. HUD’s reported response was “How can we guarantee fees for our friends?” Fitts also pointed out that the “American people who make about $36,000 per year on average will not support paying $55,000 per year for a woman and her 1.8 children to live in HUD housing on welfare and food stamps.” 

Hamilton began gathering and publishing place-based data for the localities in which the underlying collateral was located making the system more transparent and opening the bidding on the defaulted loan portfolio to more bidders. This bidding process increased the purchase price of HUD’s defaulted loan portfolio by $2 billion which came out of profits formerly realized by insiders like Blackstone Group, Goldman Sachs, GE and Harvard University. Michael Eisenson at Harvard was particularly incensed and addressed Fitts with the gutter epithet (now acceptable in some circles) “F***k you”.

Efficiencies in HUD programs set into place by Hamilton were met with distain by very powerful people and organizations who had been feeding at the trough. In 1995 Fitts began receiving strange emails from Tino Kamarack whose wife, Elaine ran Al Gore’s Office of Reinventing Government. Tino later became Chairman of the Export Import Bank. For no apparent reason Tino sent Fitts and email suggesting they have an affair.

At a luncheon in 1996 with former HUD developer Scott Nordheimer, Fitts was told that “Well we tried to have you fired through the White House but that did not work, so now the big boys have gotten together and [decided] you are going to prison…the fix is in.”
In August the first subpoena arrived from the HUD Inspector General, Susan Gaffney, working under the Department of Justice that had been meeting with a former employee of Harvard’s HUD property management company, John Ervin. Ervin had initiated the “qui tam lawsuit” suit which allows a private citizen to bring suit as a bounty hunter making 15% to 30% of damages. Delegation of subpoena power to HUD allowed information on the suit to be withheld from Fitts and Hamilton for up to eight years. Meetings were held and subpoenas were issued against the defendants who were kept completely in the dark.

As the case finally came to court in 2003 Chris Sanders wrote, “The mere fact that it has taken eight years to get into a courtroom is reason enough to wonder about both the merits and conduct of the case. The fact that the HUD Inspector General dropped its investigation of Fitts and Hamilton in 2001 after admitting that it could find no evidence of wrongdoing is another. The fact that the Department of Justice declined to take up Ervin's qui tam in 2000 suggests real doubts as to the merits of the case. The fact that Federal Judge Stanley Sporkin systematically violated the whistleblower statute itself for six years by repeatedly granting extensions to the legally limited 60 day seal on the plaintiff's "case" against Fitts is another telling sign of the real truth: there is no case against Fitts. Can you imagine being accused, but never able to know what you have been accused of? And the haste with which the Department of Justice seized the records and erased the hard discs of the computers of Fitts' firm, Hamilton Securities, meant that for all intents and purposes the firm was destroyed with no recourse. How do you pursue recourse when you don't know what you are pursuing recourse against? Now the fact that Sporkin used to be chief counsel for the CIA is really neither here nor there. Or is it?” (Read the entire article here.)

After saving the government over $2 billion HUD refused to pay Hamilton and the cost of defending against some 30 bogus lawsuits caused the bankruptcy of the firm and the loss of millions of dollars of Catherine Fitts’ personal wealth.

Fitts aptly describes the elite power brokers, those to whom wealth is being transferred, as the “tapeworm” and describes the ability of the tapeworm to inject substances that make the host want to eat what will nourish the “tapeworm“. Her analogy is perfect.

Now president of Solari she is attempting to create a new, clean financial system and a populace that lives clean, invests clean, and shuns attachments with the “tapeworm“. She is a perennial optimist.

The goal of the “tapeworm” is centralization and control. Fitts lists a portion of the agenda: First, consolidate all retail sales into a few large corporations, including franchise operations, cutting out local small business. Think WalMart. Second, outsource ("privatise") all local government functions to a few large corporations or subject them to such an overwhelming amount of federal regulation that they can be controlled and managed for the benefit of a few large corporations and their investors. Think the eyeglass franchise at the Veterans Administration, Blackwater or the shenanigans at HUD. Third, buy up all the land and real estate, or encumber them with mortgages in a way that is as profitable as possible and allows you to get control when you want it. Altogether, the U. S. government regulates 1,020,779 square miles (2,643,807 km²), which is 28.8 percent of the total land area of the U.S. The bulk of this land is protected park and forestland, but some is leased for oil and gas exploration, mining and cattle ranching. Fourth, finance the entire process with the profits from narcotics and organised crime that you market into the neighbourhood. Narcodollars at $500 billion (half a trillion) or more per year. Fifth, leverage all of this with tax shelters, private tax-exempt bonds, municipal bonds, government guarantees, and government subsidies -- all protected with complex securities arrangements. Think esoteric finance. Sixth, ensure that the only companies and mutual funds allowed meaningful access to capital are those run by syndicate-approved management teams. To raise significant campaign funds candidates for political office appoint syndicate-approved management teams. Watch the presidential candidate with the most money gain the nomination. (Read the entire article here.)

Fitts’ optimism comes in part from her minister whom she quotes, "If we can face it, God can fix it" . She has a savior complex believing the system can be corrected by developing another system. She writes, “We cannot invest in the stocks and bonds of large corporations and governments that are harming our food, water, environment and all living things and then expect these resources to be available when we need them. Nor can we deposit and do business with the banks that are bankrupting our government and economy….Surviving and thriving as a free people depends on creating and transacting with currencies and investments other than those printed and manipulated by Wall Street and Washington to the eventual end of our rights and assets….Yes there is a better way and we can create it.”
I don’t think so. The United States of today bears very little resemblance to the nation I knew as a child or young adult. Walking through the milieu at WalMart on Friday night provides a first hand experience of the purposeful balkanization the government has perpetrated on our people. We no longer have a culture. The media controlled vote of an immigrant with no vested interest in our country will void the vote of an indigenous citizen. Our government has sold our birthright for a bowl or porridge and we will soon be living under the results.

Writer par excellence Fred Reed, an expatriate in Mexico, describes our nation well when he writes, “The US consulate in Guadalajara is part fortress, part prison, with barriers and cameras and bars and rentacops, and they take away a woman’s lipstick if she is going to enter. Maybe a country that fears lipstick needs to think. The French consulate around the corner is wide open, like all others that I know of. The French, Chinese, Japanese and so on aren’t hated.” (Read the entire column here.)

I agree with Catherine Fitts that the new world order which is the platform for most of the treason will ultimately fail. However, we must understand our position before Almighty God. With the support of the majority of our citizens the United States has committed grievous sins. Our nation has become a fount of evil, spewing out pornography, dirty movies, aberrant and disgusting lifestyles, abortion, murder, mayhem, and tyranny. We have forgotten God’s Laws and come to prefer our own. Millions of Evangelicals who claim to be God’s servants are supporting the illegitimate nation of Israel, a nation that God destroyed nearly two thousand years ago. In the process they sully the name of God’s Son by substituting heathen. The cost of sin comes from peace and prosperity and barring real national repentance the future for the United States is not bright.

Christians must never allow themselves to live in a fantasyland. If repentance is ever to come the situation we are in must be discerned and faced realistically.

I am grateful to Catherine Fitts for using her gift of confrontation to bring truth to an aberrant regime. However, the imbedded dishonesty, fraud, and malfeasance that permeates the government is an impenetrable barrier and those who attempt change it inevitably fall from favor and are no longer allowed access to the go along to get along fraternity

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