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Archive for October 25th, 2012

Countering Global Wealth Consolidation 1. Isn’t Optional 2. Means Change Your Mindset.

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I hear the sound of a large “whoosh!” as things that sustain life are sucked out of the ethical unwealthy and siphoned into the shareholders by smart, and opportunistic private equity investors.

The poor used to be warehoused in HUD tenements (projects, right?), Ms. Fitts relates, but once the equity is sucked out of them, taxpayers can’t fork it over any more, and so here comes Privatized Prisons (CCA, etc.).  You KNOW at some level, right, this is the truth?  When I started seeing this?  I simply looked up the wealthiest Congresspeople in 2008 and where that wealth came from.  I saw Corrections Corporation of America (out of Nashville).   The Obama’s wealth was also listed and if you look closely, this involves real estate, including some projects, in Chicago.  HOW do we really think people get into politics and office?

THE HUD DEVELOPMENT GAME IS BEING REPLACED IN PART BY A PRISON PRIVATISATION AND DEVELOPMENT GAME THAT WAREHOUSES THE SAME FOLKS IN PRISONS…

We need to understand just how, and why, the “Rule of Law” is a Myth, and the Real Rules in Operation are simply How to Do a Financial Coup d’etat.

Now I see the signs of financial holocaust through the eyes of people who are being destroyed. Their currency is debased. Their children are targets of both “legal” and “illegal” drug trafficking and are condemned to learn in dumbed- down schools. Their small business equity is being extracted from under them. It is they who are carrying the burden of taxes without the benefits that government investment is supposed to provide. The cruel twist is that citizens are funding the financial ruin that is killing them and their children.

Now I understand the process by which the rich get rich and the poor get exhausted

My three years on this blog plus just observation of life pretty much led me to the same conclusion.  Not knowing this resource (yet), I posted (herein) that the for profit/nonprofit system was PER SE creating a caste system.  That was simply the truth.  I also had ample experience with nonprofits, i.e., seeking assistance from several of them.  Now I have better language to describe it, and some more “case histories” to demonstrate the matter.

FYI I still have not solved this problem.  I still have major economic struggles, no assets, a destroyed job history and a destroyed social support system (particularly since I quit using on-line groups for an emotional crutch, and/or trying to argue some sense into them.

How money works is not only essential to know — it’s interesting.  And it’s the current landscape – it’s here.  You might as well learn about it.  FAST!

Please take time to work through at least some of this material by Ms. Fitts and then keep your eyes opened.  The quote above is from “The Myth of the Rule of Law” — an elegant, and well-formatted 27page read.  Here’s the intro:

Note from CAF: This post was originally published here in February of 2009. In light of recent events,  I am republishing.]

By Catherine Austin Fitts

In the fall of 2001 I attended a private investment conference in London to give a paper, The Myth of the Rule of Law or How the Money Works: The Destruction of Hamilton Securities Group.

The presentation documented my experience with a Washington-Wall Street partnership that had:

  • Engineered a fraudulent housing and debt bubble;
  • Illegally shifted vast amounts of capital out of the U.S.;
  • Used “privitization” as a form of piracy – a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder.

Other presenters at the conference included distinguished reporters covering privatization in Eastern Europe and Russia. As the portraits of British ancestors stared down upon us, we listened to story after story of global privatization throughout the 1990s in the Americas, Europe, and Asia.

Slowly, as the pieces fit together, we shared a horrifying epiphany: the banks, corporations and investors acting in each global region were the exact same players. They were a relatively small group that reappeared again and again in Russia, Eastern Europe, and Asia accompanied by the same well-known accounting firms and law firms.

Clearly, there was a global financial coup d’etat underway. The magnitude of what was happening was overwhelming. In the 1990′s,

    millions of people in Russia had woken up to find their bank accounts and pension funds simply gone – eradicated by a falling currency or stolen by mobsters who laundered money back into big New York Fed member banks for reinvestment to fuel the debt bubble.

Reports of politicians, government officials, academics, and intelligence agencies facilitating the racketeering and theft were compelling.



Ms. Fitts’ firm Hamilton Securities was targeted — she was targeted and almost destroyed.  A simple software program (I don’t know HOW simple) that connected the dots of HUD Frauds (or defaults) to PLACE — which then also revealed where the crime was happening — was called Community Wizard.  Her ideas for turning around drug-riddled neighborhood and keeping capital LOCAL seems to me were good ones.  They were also rejected.

On page 18 of the (above-linked “myth” document) — I got my validation from a top financial expert — and again, pretty close to the first time I had CAFRs explained to me (meaning, I read a blog or two and looked at some samples), it made sense.  I also realized that these were maps // diagrams — better than my narratives.  I then began reporting & publicizing it and next thing you know, I’m put off a forum of a city in Lackawanna County PA (where the FBI had raided the courthouse, and which city was going bankrupt), and told by the moderator to keep my nose out of the NON-family court thread, but not before I’d started a topic on CAFRs and literally dug up Scranton’s (which had been named kind of strangely on their business admin site).  Eventually I was bounced off the forum, which was fine by me — more free time for people who give a damn.

I POINTED OUT THE DANGED CAFRss.  Look at this, from p. 18:

That was one of the reasons I turned down the opportunity to serve at the Federal Reserve and instead started Hamilton upon leaving the Bush Administration. It was the reason why we at Hamilton built Community Wizard. The Community Wizard made it possible for anyone to put together a sources and uses statement for government activities (taxes, time use, spend- ing, credit, regulation, operations, and more) in their community. An easy step was just linking to the Consolidated Financial Reports (CAFRS). The shock of finding so much in the way of hidden assets and where the money was really going was always a pleasure to watch. Why should the finance committee chairmen of the political campaigns be the only ones to see the information on how the money works by place?

Luis Mendez, one of my partners at Dillon Read, visited me in Washington in 1996. He said that Wizard was a stupid idea, that would not work. Things were hopeless, he said. I showed Luis a printout of the CAFR for his community of Bronxville, New York. When he saw the figures, he exploded in rage. The first item was $4 million of flood insurance. This was the worst form of corruption, Luis said. Apparently, Bronxville was on a hill. The next day Luis spent two hours on the phone with the Deputy Mayor of Bronxville going through each item and informing him this was all going to stop. Apparently, things were far from hopeless, once one had the information. It just took one good map to see how to fix thousands of little things, one at a time

What Human Behavior can the UnWealthy Change to Quit enabling this Consolidation

Our Human Behavior — How Can We Change it to Counter this Consolidation of Wealth?

Instead of complaining about how corporations think and act, how about thinking and acting more, as individuals, about the “corpus” of our money?

When we give it up to others (including through wages) to pool, invest, and sell– is it out of sight, out of mind?  Where, really and to what purposes, are we putting it?

We essentially are saying, too many of us– I am not smart enough to invest and manage my own income.  In exchange for HOPE, including HOPE of some job security now, I will let you manage it, for which privilege, you will get from me the primary hours and energy of my days, and the prime years of my life, to help make widgets, or highly technical improvements to make society whirr and hum better (depending on what type of job we work), and I myself will gain a resume and some job skills.

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Written by Let's Get Honest

October 25, 2012 at 11:31 pm

What It’s Still About….(… in Summer 2013)

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(Post title changed to remove “Election Year Update 2012.” The message is still appropriate now….Also in reviewing this post (and adding some quotes) I’m temporarily moving the “more” link further down the page, (in other words, the “abstract” is almost post-length) to call attention to the material.)


[This post is “sticky” and stays on top.  New posts are beneath . ..Some additions, March 2013…(As I learn more, it shows up on the blog). ~ Or see “The Last Seven Let’s Get Honest Posts” links, on sidebar ~ better yet, See also my other blog Cold,Hard.Fact$]; 


This blog has VALUABLE INSIGHT on the family courts money trail (a trail of tears), and about many crisis intervention groups who are in on it (and hence, won’t blog it), and from some of whom I sought help, solace, or actionable information — and got NONE.  


Question: WHY would any group which truly wants to save lives withhold relevant information, tools to find that information, and prior ground-breaking conversations about that information — in the amounts of billions of dollars of federal incentives to the statesaffecting — custody outcomes (as to the child support system, HHS/OCSE) while feeding less helpful information to their clients?Another Question: You should also ask why — where is that money coming from, and why does our government always want to raise taxes when they can’t keep track of what they already collected (MUCH more than is commonly realized) and when a lot of that is simply fed to fraudulent or evanescent corporations that don’t stay registered at the state level?

When it’s a matter of eminent domain and someone gets sued over bribery, then it makes headlines and people get indignant. Daily News 2001, Los Angeles Area.

COURT MAY RECEIVE CLOSE AUDIT. 2001. Similarly, and around the same years, other people were asking questions about “court-connected” funds of a different sort. 2002, this one, there was a series of articles:‘SLUSH FUND’ PROBE POSSIBLE KUEHL MAY ASK FOR INQUIRY INTO JUDGES’ PROCEEDS.[one has to actually read these – I’m not outlining them for those who won’t….]
This one in PARTICULAR shows that in 1999ff Marv Bryer and others were doing what I do now — reading tax returns, looking at the fronts of checks, looking at the BACKS of checks, and noticing that what’s written out to ONE fund sometimes gets deposited into another, which fund happens to be a private judges’ association.

Here’s a yet more detailed one (best: read the series; see “related articles”):

GILDING THE GAVEL? SUPERIOR COURT PAYMENTS DEPOSITED IN JUDGES’ PRIVATE ‘COFFEE’ FUND.

(Now that you’ve read it, naturally, with attention…..)

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