the
SolariBY CATHERINE AUSTIN FITTS / 3RD QUARTERR WRAPepo UP VOLUME 2016r / NUMBERt FOUR INVESTMENT SCREENING: Can We Filter for Productive Companies? The Solari Report 3nd Quarter 2016 Wrap Up Investment Screening: Can we filter for Productive Companies? by Catherine Austin Fitts
Copyright © 2016 by Solari, Inc. All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without the permission in writing from the publisher.
Published September 2016 by: Solari, Inc., P. O. Box 157, Hickory Valley, TN 38042 USA. Designed by Ben Lizardi, Lizardi Communications, Inc. Visit our website: www.solari.com ISBN-10: 0-9854251-8-0 / ISBN-13: 978-0-9854251-8-0
2 Table of Contents INTRODUCTION...... 4 I. Investment Screening: Can we filter for productive companies?...... 6 1. Introduction: Meditations on Productivity...... 7 2 . What is Screening?...... 7 3. ESG Screening: The Size of the Universe...... 14 4. Hamilton Securities & US Pension Funds...... 19 5. Reviewing SRI Mutual Funds and ETFs...... 21 6. The Solari Model...... 22 7. Define “Real Stinkers”...... 24 8. Investment Screening: Can We Filter for Productive Companies? ...... 18 9. Negative Total Economic Return: Examples By Industry Sector...... 19 10. Conclusion...... 21 II. News Trends & Stories...... 22 ECONOMY & FINANCIAL MARKETS...... 23 GEOPOLITICS...... 24 SCIENCE & TECHNOLOGY...... 25 THE BIG QUESTIONS...... 26 An in-depth look at the News Trends & Stories...... 27 PART ONE ...... 27 PART TWO...... 43 III. FINANCIAL MARKETS ROUNDUP...... 58 U.S. Dollar Index ...... 59 Fixed Income /AGG (US Bond Aggregate), JNK (High Yield Bond ETF) ...... 60 IEF (5-7yr Treasury ETF), TLT (20 yr. + Treasury ETF) ...... 61 Equities /North America SPX (S&P Large Cap), PKW (Buybacks)...... 62 SCHA (U.S. Small Caps), SCHM (U.S. Mid Caps), SCHX (U.S. Large Caps) ...... 63 US Aerospace & Defense (ITA) ...... 63 Consumer Discretionary (XLY) ...... 64 Consumer Staples (XLP) ...... 64 Industrial Select (XLI) ...... 65 Health Care (XLV) ...... 65 IBB (Biotech) ...... 66 ITB (U.S. Home Construction ...... 66 IYR (U.S. Real Estate)...... 67 U.S. Equities: 1-, 3-, 5-Year Sector Performance ...... 67 Motif Investing (Highest Earners)...... 68 Motif Investing (Lowest Earners)...... 69 EFA (International Developed)...... 70 Europe DAX (Germany)...... 70 VGK (FTSE)...... 71 Disclaimer: Nothing on the Solari VGK(FTSE), EWU (UK), SPY (S&P)...... 71 Report should be taken as individual EUFN (European Financials), KBE (US Financials)...... 72 investment advice. Anyone seeking European Financials: DB, RBS, BCS...... 72 investment advice for his or her per- sonal financial situation is advised to ASIA EEM (Emerging Markets)...... 73 seek out a qualified advisor or advisors FXI (China Large Caps) ...... 73 and provide as much information as China Small Cap (HAO)...... 74 possible to the advisor in order that such advisor can take into account all PIN (India) ...... 74 relevant circumstances, objectives, and WAFMX (Frontier Markets)...... 75 risks before rendering an opinion as to Commodities OIL (Crude Oil) ...... 75 the appropriate investment strategy. RSX (Russia), OIL (Crude Oil)...... 76 NOTE: For additional mate- GLD (Gold), SLV (Silver)...... 76 rial available in the online GDX, GDXJ...... 77 version of this Wrap Up, CRB (Commodities Index)...... 77 visit the www.Solari.com YTD Commodities Performance...... 78 website and use the search Baltic Dry Index...... 79 function to locate the items. 3 Introduction
“Cut and run or cut-and-run is an These six words or phrases idiomatic verb phrase meaning to at hand capture the essence of the news during the last “make off promptly” or to “hurry off.” three months: The phrase originated in the 1700s Cut and Run. The signs are significant that as describing an act allowing a ship to insiders are moving monies out of the system. The biggest story of the 3rd Quarter was make sail quickly in an urgent situa- 1the announcement from the US Department of Defense Inspector General that DOD had undoc- tion... The phrase is used as a pejora- umented adjustments for the fiscal year 2015 of $9.3 trillion, or $30,000 for every man, woman, tive in political language, implying a and child in America. panicked and cowardly retreat...” Monica Lewinsky II. Just as the Monica Lewinsky scandal and the related impeach- — Wikipedia ment proceedings distracted Americans from 2noticing that trillions were flowing out of the federal government in fiscal 1998, the first year of the financial coup d’état, sensationalism and disin- formation related to the US presidential campaign have distracted us from the DOD Inspector Gen- eral announcement and the related symptoms of “cut and run,” including the sale of Monsanto, the divestment by Lockheed Martin of its IT business, phony accounts at Wells Fargo, and the US-Ger- man politics related to Deutsche Bank.
Crazy Man vs. Criminal: In a recent editorial, Peggy Noonan wrote that Amer- ica’s choice is coming down to Crazy Man 3vs. Criminal. The campaign becomes crazier and more criminal the closer we get to Election Day. One of the biggest losers of the 2016 campaign is the corporate media, of which all credibility is sinking now to a new low.
Constitution: Can we protect the US Constitution from assaults from all sides? If we want to protect it, we must enforce 4it. First and foremost, we must insist that monies and assets that have gone missing be identified and returned.
4 War: The birthing pains of a multipolar screening industry and ask whether it is pos- model are upon us. The tensions between sible to filter for fundamentally productive One of the biggest the United States and Russia are rising, companies. In August, investors in private “ losers of the 2016 5with negotiations in Syria suspended right after prison companies found their stock price campaign is the the end of the 3rd Quarter. A global economic down by almost 50% as a result of changes slowdown contributes to these tensions. Jack Ma, in government policies. Wells Fargo stock is corporate media, of founder of Alibaba, said it best in the 3rd Quar- down by 18% this year, in part because of a which all credibility ter: “Wars start when trade stops.” scandal related to falsification of accounts. is sinking now to a As the debt-financed growth model comes to new low. Uncertainty: The number of future scenar- an end, investors in companies that are not ios grows daily. Some days anything looks primarily productive face a new set of risks. ” possible. Each of us must make personal As discussed in our 2nd Quarter Wrap Up, 6decisions and move forward regardless of uncer- productivity growth is essential to a more tainty. peaceful, prosperous global economy.
Our 3rd Quarter Wrap Up will be present- We anticipate an adventurous 4th Quarter at ed throughout October in four parts: Solari_Note_Card_final2_LayoutSolari. In October,1 5/14/15 I9:47 will AM be Page on the 1 road in • News Trends & Stories, Parts I and II. Pasadena, Tucson, Austin, a Sunday Brunch with We begin a fascinating discussion with Dr. Catherine in Dallas, and a week in Boulder with a Joseph P. Farrell, of the top news trends and quick stop in Denver on my return to Tennessee. stories. In the first week in part I, we will Best of all, I will be in Tulsa on October 15th for look at Economy and Financial Markets and the Launch Party for the Joseph P. Farrell Pipe Geopolitics, including a serious discussion Organ Crowdfund. You will be hearing more of “cut and run” and the growing signs that about that when we launch in November. I am insiders are pulling significant money and as- back to Europe in late October for several weeks, sets out of the US government and spinning and then I head to Montana. out and cashing out of major investments Everywhere I go, I have the op- and liabilities. The following week in part portunity to meet Solari Report II, Dr. Farrell and I will cover Science and subscribers. You are a constant Technology and The Big Questions. Make reminder of Thowh manyan wonderfulk you sure to check the full listing and links on the people are in our world. News Trends & Stories section. for being On behalf of the entire team at • Financial Market Roundup: In the third the Solaria Report, So lIa wishri youR ea port week, we will combine a written Blockbuster free and inspired 2016! Chartology from master technician Rambus with my Equity Overview. Make sure to see —Catherines Austinub Fittsscriber. the charts in our Financial Market Roundup section.
• Investment Screening: Can We Filter for Productive Companies? Finally, in the fourth week, we present our central and biggest topic. I look at the investment
5
The Solari Report by Catherine Austin Fitts I. Investment Screening: Can We Filter For Productive Companies?
6 “The ducks are squawking! I must feed them!” – Luis S. Mendez, Head of Capital Markets, Dillon Read & Co
1. Introduction The Golden Rule, “do unto others as you would have them do unto you,” sounds great. How- fter many years of inquiries, I have ever, it breaks down quickly in highly centralized committed to create an investment systems that sorely lack financial transparency, screen based on the Solari Model. I have particularly for government and covert resources. workedA on it intermittently during 2016, with We are all busily financing genocide and cruel plans to offer it in 2017. treatment of each other with so much going The creation of a Solari screen responds to sub- on that is invisible. As the emperor Vespasian scriber, client, and colleague requests. Too often, quipped regarding the Roman urine tax, an investor opens a statement, finds a stock he “Pecunia non olet” or “Money has no smell.” cannot live with, and calls to ask that it be sold. Since John Wesley sermonized on the “Use of Or the investor worries that he or she owns stock Money” to the Methodists in 1744, and the in companies that will not successfully navigate Quaker Philadelphia Yearly Meeting (my an- the current environment. Hopefully, these risks cestors, I would note) banned the financing of can be reduced or avoided if investment advisors slavery in 1758, we have been grappling with a choose from a list of pre-screened companies. necessary financial appendix to the Golden Rule: The investment community offers countless “Finance unto others as you would have them screening options – the field is crowded. Why finance unto you.” Design for the new Solari One Oz. Silver Coin create and maintain one more? In part the re- As invasive technology leads us into a culture coming in 2017. quest for a Solari Screen is in response to risks I that feels progressively more inhuman, it is worth cover in the Solari Report. This includes the risks thinking about how to extend the Golden Rule created by: to the question of “from whom and what we • Covert cash flows, the black budget, and profit.” machinations of the deeper state, including How do we effectively respond to a world in the enormous shift of G-7 capital through which “crime that pays is crime that stays?” the “financial coup d’état” since 1997; What is Screening? • Changes underway as a result of new tech- “How do we effec- nology and globalization, or what I and my Almost all investments are screened. Common tively respond to screens include investment characteristics, indus- colleagues on the Solari Report refer to as the a world in which shift from Global 2.0 to Global 3.0; and, try sectors, and location. “crime that pays • The end of the debt-financed growth model. A mutual fund, ETF or individual portfolio is is crime that typically screened for one or more investment A Solari Screen allows me to integrate these stays?” characteristics, such as these: factors into an analysis and underwriting of individual companies, ideally in a manner that • Type of Asset: Real estate, commodities or ” makes life easier for an investment advisor fo- securities cused on picking stocks and timing buys and • Liquidity: Liquid (such as securities) or illiq- sells in a manner essential to investment perfor- uid (such as private equity or venture capital) mance – something that a screen in and of itself • Type of Securities: Stocks or bonds does not do. • Income Profile: Dividends vs. Growth Before I finalize my efforts, I want to look at the universe of screening. I also want to give Solari • Taxation Status: Tax-Exempt Report subscribers an overview of this aspect of • Size of Company Market Value: Large, the investment universe and share some thoughts medium or small cap about screening to help you navigate it. 7 I. Investment Screening: Can We Filter for Productive Comapnies?
Industry sector of the underlying business or or- Wikipedia: Social Finance ganization is also a common screen. A portfolio https://en.wikipedia.org/wiki/Social_finance may focus on one or a few sectors, or may seek Depending on classifications, this may or many balance across all sectors. Morningstar describes not include morally responsible investment sup- 11 primary sectors for its “Morningstar Global ported by religious groups, including Christian Equity Classification Structure:” and Islamic finance. Cyclical: Wikipedia: Christian Finance 1. Basic Materials https://en.wikipedia.org/wiki/Christian_ 2. Consumer Cyclical finance 3. Financial Services 4. Real Estate Wikipedia: Islamic Finance https://en.wikipedia.org/wiki/Islamic_ Defensive: banking_and_finance 5. Consumer Defensive 6. Healthcare A deep dive into ESG criteria lands one in a 7. Utilities world of complex opinions regarding what is and Sensitive: is not moral or responsible and what an indi- 8. Communications vidual company can do about it. Many of these 9. Energy opinions are sincere. Some are motivated by 10. Industrials “Soft Revolution” politics being used for a vari- 11. Technology ety of political and strategic purposes. As securities markets grow globally, increasing The application of these opinions works in a numbers of screens organize around places. This variety of ways, including: increase includes continents (e.g. North America, • Positive Screens: Screens that seek compa- Asia, Latin America), regions (e.g. Middle East & nies, which achieve positive results according Africa), countries (e.g. US Domestic) or areas of to the specified criteria, such as clean energy economic development (e.g. Emerging Markets). or women friendliness. As global liquid markets develop, this permits in- • Negative Screens: vestors to “trade places” and align portfolios with Negative screens filter out regional growth rates and geographic contribu- “bad dogs,” which tolerate anything so long tion to global GNP. as it does not include the designated stinkers, which traditionally have included companies Screens involving the wider impact of a company that make and market weapons, alcohol, or on society and the environment, as opposed to tobacco. return to shareholders as the sole financial criteria • Shareholder Activism: for performance, are often referred to as ESG This screen involves screens. ESG stands for “environmental, social, an investor using shareholder status through and corporate governance.” the proxy annual voting process or other in- fluence with the company and shareholders Wikipedia: Environmental, Social and Corpo- who lobby for policies such as best practices rate Governance in governance or employee compensation. https://en.wikipedia.org/wiki/Environmen- Shareholder activism is sometimes combined tal,_social_and_corporate_governance with positive or negative screens for maxi- The “social” encompasses the more traditional mum effect. socially responsible investment. Wikipedia: Activist Shareholder Wikipedia: Socially Responsible Investment https://en.wikipedia.org/wiki/Activist_ https://en.wikipedia.org/wiki/Socially_ shareholder responsible_investing 8 • Targeted Investing: Targeted investing in- http://www.gsi-alliance.org/wp-content/ cludes economically targeted investments uploads/2015/02/GSIA_Review_download. (ETIs), community investing, impact invest- pdf ing and mission investing Report on US Sustainable, Responsible and Wikipedia: Impact Investing Impact Investing Trends 2014 by The Forum https://en.wikipedia.org/wiki/Impact_ for Sustainable and Responsible Investment investing and the US SIF Foundation Mission Investing http://www.ussif.org/trends https://www.missioninvestors.org/ The 2014 Global Sustainable Investment Alli- mission-investing ance included representatives from Europe, Asia, In my experience most targeted investing are Australasia, Canada and the Forum for Sustain- forms of private equity, venture capital, or able and Responsible Investment for the United “I am not quite sure other forms of illiquid or restricted invest- States. how to explain a ments. Although screens are a positive or For purposes of classification for their Review, working definition negative response to an existing universe of they emerged a classification of “sustainable of “sustainable.” companies or investment opportunities, tar- investments” to include the following: I think the intention geted investing is generally more proactive in 1. Negative/exclusionary screening: is to signify that the creating startups or supporting small or early the exclu- impact on the whole stage companies and investments. sion from a fund or portfolio of certain sectors, companies, or practices based on is positive — The word “sustainable” is sometimes applied to specific ESG criteria; otherwise the some or the entire ESG universe or used as a syn- 2. Positive/best-in-class screening: investment system cannot onym for ESG responsible investment. I am not in sectors, companies or projects selected for last. quite sure how to explain a working definition of positive ESG performance relative to indus- “sustainable.” I think the intention is to signify try peers; ” that the impact on the whole is positive – other- 3. Norms-based screening: wise the system cannot last. screening of invest- ments against minimum standards of busi- Strategic sustainable investing ness practice based on international norms; https://en.wikipedia.org/wiki/Strategic_ sustainable_investing 4. Integration of ESG factors: the systematic and explicit inclusion by investment manag- Perhaps if we achieve fundamental transparency ers of environmental, social and governance regarding the basic outlines of our real gover- factors into traditional financial analysis; nance systems, governmental and tax-exempt 5. Sustainability-themed investing: resources, and the nature of the invisible technol- investment ogy and weaponry operating in and around our in themes or assets specifically related to sus- planet, I might be able to understand what is and tainability (for example clean energy, green is not sustainable. Until then, I will leave it to technology or sustainable agriculture); others to wrestle with a working definition. 6. Impact/community investing: targeted in- vestments, typically made in private markets, ESG Screening: The Size of the aimed at solving social or environmental Universe problems, and including community in- Two recent studies have made a serious attempt vesting, where capital is specifically directed to define the size of the ESG universe: to traditionally underserved individuals or 2014 Global Sustainable Investment Review communities, as well as financing that is by the Global Sustainable Investment Alliance provided to businesses with a clear social or environmental purpose; and 9 I. Investment Screening: Can We Filter for Productive Comapnies?
7. Corporate engagement and shareholder ac- European investors are the leaders in incorporat- tion: the use of shareholder power to influ- ing ESG criteria. Negative screening and integra- ence corporate behavior, including influence tion of some ESG criteria into traditional analysis through direct corporate engagement (i.e., represent the predominant ESG global strategies. communicating with senior management or boards of companies or both), filing or co-fil- ing shareholder proposals, and proxy voting guided by comprehensive ESG guidelines. – From: 2014 Global Sustainable Invest- ment Review, Page 6 They describe global sustainable assets as rising from “$13.3 trillion in 2012 to $21.4 trillion at the start of 2014.” By their classification system, the proportion of such investments has grown to 30.2% of all professionally managed assets in the regions covered:
Source: 2014 Global Sustainable Investment Review In 2014, the Forum for Sustainable and Respon- sible Investment and the US SIF Foundation also published its report for the United States, “Report on US Sustainable, Responsible and Impact Investing Trends 2014” Their report includes a wealth of documentation regarding
Source: 2014 Global Sustainable Investment Review socially responsible investment in the U.S. They document SRI-managed asset growth in the U.S. as follows:
Source: 2014 Global Sustainable Investment Review
Source: US SIF Foundation
A birds-eye view of the screening universe indi- cates that attention to ESG criteria was growing as of 2014. The Forum for Sustainable and Re- sponsible Investment plans to publish their “Re- Source: 2014 Global Sustainable Investment Review port on US Sustainable, Responsible and Impact 10 Investing Trends 2016” in mid-November 2016. resources by an invisible elite. Despite what we You can access it on their website at http://ussif. learned in economics class or business school, the org. It will be interesting to see if and how the global economy is not run on a basis designed to growth has continued. optimize the whole. We should beware designing ESG criteria on the assumption that “everyone wants things to work.” We are in a period where new powerful tech- nology and weaponry are being applied with criminal means to serve centralization. They are making the rich richer, but shrinking the total pie, and a growing population is debasing the en- vironment. The reality is, however, that the pow- ers that be can continue to centralize far longer so we can remain solvent, trying to reverse the flow with socially responsible investment. This reminds me of Reg Howe’s excellent open- “Fiat currency has ing in his essay “The Golden Sextant,” as he done far more envi- The Deeper Issues described the harm done to the economy and ronmental damage, One of the challenges faced by investors inter- society by fiat currency and unsound central than all the mining ested in applying ESG criteria is that you run the banking practices: risk of “fighting the model.” companies have ever A recent book entitled Good Money touts “SRI” – dreamt of doing. In our current economic model, “the central socially responsible investing – , or how to do good – GATA Treasurer banking – warfare model,” economics are driven (socially) while doing well (financially). But what- Chris Powell ” by central bank and government policies that re- ever the legal currency – dollars, marks, yen, francs, flect a significant investment in ‘control by force or pounds – in which practitioners of SRI make and superior intelligence’ based on invasion of their investments, they cannot make bad money privacy and individual rights. good. SRI cannot repeal Gresham’s law. Properly Central banks and govern- understood, good money is good, not because of the ments are bureaucracies that motives of its owners, but because of its own intrin- represent private investors sic character. Truly good money will produce far – whether represented by more social benefits than any amount of bad money secret societies and/or the spent with good intentions. leadership of significant in- – Reg Howe, The Golden Sextant tergenerational pools of capi- http://www.goldensextant.com/goldensextant. tal – that are not transparent html and enjoy high-margin Another one of my favorite quotes along this returns on warfare, financial line is from GATA Treasurer Chris Powell: fraud, and other forms of “fiat currency has done far more environmental organized crime. In short, damage, than all the mining companies have ever the privilege that accrues to dreamt of doing.” the few who dominate by force and secrecy and enjoy legal immunity represents a significant tax In both instances, Messrs. Howe and Powell on the general population. are looking to address the root problem and are concerned that SRI investing runs the risk of Another way to say this is that the size of the addressing only the symptoms. The solution is total pie is ‘sub optimized’ by design. The system to bring sufficient transparency to root causes in goal is to ensure the control and command of order to support SRI efforts. 11 I. Investment Screening: Can We Filter for Productive Comapnies?
In this environment, real change requires ad- pension leaders. One of our goals was to help the “One of the reasons dressing (i) fundamental governance structures, pension leadership make recommendations to I welcome the op- (ii) central bank policies, (iii) government credit, the US Department of Labor regarding policies spending, regulation and enforcement as well as related to ETIs. As we listened to more of their portunity to develop (iv) actual policies related to transparency of tax strategic concerns, another goal was to under- a Solari Screen, is payer resources, respect for individual privacy stand what could ensure that the US pension that I can use the and fairness in the application of the law. funds achieved the returns necessary to provide Solari Report to One of the reasons I welcome the opportunity for baby boomer retirements, particularly in light bring transparency to develop a Solari Screen, is that I can use the of the globalization underway. to the deeper issues. Solari Report to bring transparency to the deeper One of our conclusions was that government Consequently, the issues. Consequently, the two efforts reinforce policies needed to change if communities were to two efforts reinforce each other. be successful – indeed there was an extraordinary each other. Real transparency is essential to the successful ap- opportunity if they did, including for the pen- ” plication of ESG criteria. As Robert Axelrod has sion funds. Without such changes, ETIs would described in The Evolution of Cooperation, indi- simply make matters worse. If government pol- viduals and markets will shun criminal players if icies were designed to ensure that communities they can see them clearly. In other words, when failed, asking the pension funds to lose money we create the conditions of real transparency, in those places was only going to make matters then investors will be more likely to shun indi- worse. If we intend to destroy a local economy, viduals and companies that behave immorally, there is no point destroying additional retirement unethically, or illegally. savings along with it. I later described this in an article published in Hamilton Securities & US Pension 2002: Funds One response to negative government investment When I started Hamilton Securities Group in returns is to pressure private investors and lend- 1991, I was persuaded that new technology ers to step into the breach in communities with would have a dramatic impact on the circula- economically targeted investments. tion of equity capital. We could then finance places and neighborhoods with private equity We need to be careful about asking private in- rather than government investment. Part of vestors to dispense with performance standards the challenge was to determine how digital and to subsidize low or negative returns on govern- information technology could benefit the daily ment investment where that avoids dealing with economics of a family, a business, or a munic- the real problem and even compounds the real ipality. To do so, we started to build databases problem. of government credit and investment as well as Often the real problem is not that some investors software tools, to help us analyze public and pri- are optimizing too much. Rather, it is either vate investment at a county and community level that government is optimizing too little, or some and to simulate opportunities to improve perfor- private investors are manipulating government mance on both taxpayer and private investment investment and central banking policy to lower returns. total economic returns in order to help them- During this period, we entered into a joint ven- selves inflate their private investor returns in ture with the U.S. Department of Labor to build questionable or criminal ways, frequently at the a database of pension investments that integrated expense of other private investors. ESG criteria, including economically targeted in- Total economic returns are low or negative. The vestments (ETIs). The joint venture included an solution may not be to invest more capital at the advisory board of top state, corporate, and union situation or to take reduced returns. The solu-
12 tion may require illuminating total economic brand and social respectability of dirty players, returns and dealing with the drain on funda- thus moving us away from the conditions nec- mental economic productivity of “net energy essary for “tit for tat“ players to emerge as those minus“ investments and players. who attract capital. Crime pays. It is socially How do we get rid of the people and enterprises respectable. that intentionally drive total economic returns Finally, ETIs are also used as a way of shutting into the negative? Better yet, how do we make off capital to local players. In 1999, I had lunch money doing it? More bluntly, how do we start with the general counsel to the chairman of an to price and delete evil from the system? Is this important Congressional committee overseeing deletion not a better approach then codependent community development. He told me in no un- cleaning up in a way that supports and facili- certain terms that my ideas for providing small tates the continuing existence of evil? business access to equity capital would not be In some situations, more capital investment can permitted. In fact, the only capital that would break up a monopoly position or shift the state be allowed to flow into minority neighborhoods of play in economic warfare. In other situations, would go through national not-for-profit tax however, more capital investment simply subsi- shelter pools. [CAF Note: these investments were “... the only capital dizes an already harmful situation. Providing often marketed to SRI funds] This preference that would be al- easy access to expensive housing and consumer meant that small business people would be shut lowed to flow into off from access to credit while do-gooders “help- credit to low-income communities, as a tempo- minority neighbor- ing” the neighborhood would be granted a rary replacement for savings and income, has hoods would go monopoly position. certainly helped no one save the people profiting through national not- on depopulation, gentrification, and fraud at ETIs, in short, were being used as part of a tool- for-profit tax shelter the expense of both communities and global kit to control and manipulate the cost of capital pools... This pref- investors. within a place at the cost of honest small busi- erence meant that ness people and ethical entrepreneurs.” Fifty years of belief that more capital is always small business peo- good has produced an economy highly dependent I described our last report to the pension fund ple would be shut off on organized crime, government subsidy, and advisory board in 1997 in my online book Dillon from access to credit credit with negative total economic returns. Read & Co Inc. and the Aristocracy of Stock Prof- while do-gooders Indeed, the rise in organized crime and the its, as follows: “helping” the neigh- proliferation of ETIs are connected. A review The Hamilton Securities Group had a subsidi- of the website for the Federal Reserve Bank of borhood would be ary charged with taking our data as it developed granted a monopoly New York will show a series of community in- on individual transactions and portfolio strategy position. vestments. Any reasonable estimate of the orga- assignments and using it to develop a new ap- nized crime and corrupt government credit and proach to investment. We sought to help inves- ” subsidy flows that “run“ (or disappear) through tors understand the impact of their investments these neighborhoods would bolster the public on people and places and on a wider society relations logic of “doing good“ with a tiny trickle as a strategy to identify opportunities to lower of the potential profits. risks and enhance investment returns.[83]This ETIs essentially function as bribes or payoffs that included understanding how to reduce the de- cause more damage in a place by moving it even pendencies of municipalities and small business further from fundamental economics and real and farming on debt and increase their ability productivity. This truth may hurt. However, it to finance with equity. Indeed, easy, subsidized is impossible to sustain a positive total economic access to equity financing is one of the reasons return without it. that large companies have grown so powerful In addition, ETIs are also used to promote the and taken over so much market share from small businesses. Access to equity investment for 13 I. Investment Screening: Can We Filter for Productive Comapnies?
small business and farms would result in a much much higher portion of their investment portfo- healthier economy and much more broad-based lios to emerging markets. I was naive. He was support for democratic institutions. referring to something much more significant. We were blessed with an advisory board of very The federal fiscal year starts on October 1st of capable and committed pension fund leaders. In each year. Typically the appropriation com- April 1997, we had an advisory board meeting mittees in the House and Senate vote out their at Safeguard Scientifics where the board chair recommendations during the summer. When led a venture capital effort. I gave a presentation they return from vacation after Labor Day, the on the extraordinary waste in the federal bud- various committees reconcile and a final bill is get. As an example, we demonstrated why we passed in September. Reconciling all the vari- estimated that the prior year federal investment ous issues is a bit like pushing a pig through a in the Philadelphia, Pennsylvania, area had a snake. Finalizing the budget each fall can make negative return on investment. It was, however, for tenseness. When the new bill goes into effect, possible to finance places with private equity new policies start to emerge as the money to back and then reengineer the government investment them starts to flow. October 1st is always a time to a positive return and, as a result, generate of new shifts and beginnings. In October 1997, significant capital gains. Hence, it was possible the federal fiscal year started. It was the begin- to use U.S. pension funds to increase retirees’ ning of at least $4 trillion going missing from retirement security significantly by investing in federal government agency accounts between American communities, small businesses, and October 1997 and September 2001. The lion’s farms — all in a manner that would reduce share of the missing money disappeared from the debt and improve skills and job creation. This Department of Defense accounts. HUD also had access was important inasmuch as one of the significant amounts missing. According to HUD chief financial concerns in America at that OIG reports, HUD had “undocumentable ad- time was ensuring that our retirement plans justments” of $17 billion in fiscal year 1998, performed financially to a standard that would and $59 billion in 1999. The HUD OIG re- meet the needs of beneficiaries and retirees. It fused to finalize audited financial statements in was also critical to reduce debt and create new fiscal year 1999, refused to find out the basis of jobs as we continued to move manufacturing the undocumentable adjustments or to get the and other employment abroad. If not, we would money back and refused to disclose the amount be using our workforce’s retirement savings to of undocumentable adjustments in subsequent finance moving their jobs and their children’s fiscal years.[84] The HUD OIG continued to jobs abroad. invest significant resources in persecuting The response from the pension fund investors Hamilton during this time. was quite positive until the President of the – From “Financial Coup d’Etat,” Dillon Read CalPERs pension fund — the largest in the & Co Inc. and the Aristocracy of Stock Profits country — said, “You don’t understand. It’s too This discrepancy, of course, raises the questions late. They have given up on the country. They why a pension fund such as CalPERS – one of are moving all the money out in the fall (of the largest in the world – continued to buy sig- 1997). They are moving it to Asia.” He did not nificant amounts of US mortgage securities if say who “they” were, but he did indicate that its president knew a “financial coup d’etat” and it was urgent that I see Nick Brady — as if our housing bubble were underway. If central control data that indicated that there was hope for the mechanisms are overriding fiduciary law on this country might make a difference. I thought at scale, how can socially responsible investment the time that he meant the pension funds and make a difference? other institutional investors would be shifting a
14 As described in Dillon Read & Co Inc. and the Solari Report. Aristocracy of Stock Profits, Hamilton was closed I found a wide variety–from funds doing extraor- as a result of a lengthy period of litigation with dinary things (check out the history of the very the federal government. During this period, I fascinating Norwegian sovereign wealth funds was approached by one of the leaders of the SRI here – industry and invited to speak at a conference on https://en.wikipedia.org/wiki/Government_ SRI investing. Pension_Fund_of_Norway) When I arrived, I discovered that the sponsors of to funds that clearly were designed to create pure the conference were large financial institutions packaging to make the irresponsible look respon- that I associated with engineering the housing sible. To a certain extent, some of the irrespon- bubble and related mortgage fraud as well as sibility was part of the “Soft Revolution” tactics laundering narcotics-trafficking revenues. The that we have discussed and followed on the Solari various SRI industry representatives made it clear Report. that they were not comfortable discussing this. I left with the clear impression that the goal of For example, during the 2008-9 financial crisis, SRI investing was to affirm the overt leadership I was reviewing a mutual fund in a SRI company of the people and institutions running the covert prospectus that covered all their funds. The fund economy on a highly profitable basis. The crim- next to the one I was reviewing was designed to inals had the socially committed marketing their invest in companies that were good to women. stocks while avoiding any interference with the I could not believe my eyes! When I looked at “power lines.” the top 10 holdings, most would have been my candidates for the companies most harmful to Then I discovered that one of the leaders of all humans – including women. If you had asked the LBO industry described in Dillon Read & me to compile a list of the top 10 companies Co Inc. and the Aristocracy of Stock Profits was most harmful to women, many would have been financing an effort to promote B Corporations – on my list. the idea being that honest people should take on more liability and complexity. My notion is that By assessing the companies using their official we must take the advantages away from criminal description of their business and judging their players. The worst thing we could do is to add policies toward women, based on expensive pack- additional requirements and liabilities onto the ages of personnel policies that I would describe lawful players! as inconsequential in comparison to the impact of their real actions in the marketplace, the SRI By 2005, I decided to share some of my thoughts community had come up with a way to affirm on SRI investing in a Solari Audio Seminar: and flow SRI capital to the leaders of the housing Beyond Socially Responsible Investing: Is SRI bubble and financial crisis. Hazardous to Our Wealth? Pardon my French, but if your financial entrap- http://solari.com/outreach/telesem/BSRI1495. ment scheme results in thousands, even hundreds htm of thousands of foreclosures, what do I care if you hire and promote 50 women and minorities Reviewing SRI Mutual Funds and from Harvard Business School, or you start a ETFs minor lending program for women-owned busi- My next encounter with SRI investing was nesses with a very small percentage of the profits reviewing mutual funds and ETFs owned by of your predatory loan scams? investment advisory clients, as well as reading Case in point – JP Morgan Chase was one of the about various approaches by pension funds and largest holdings of that SRI fund. I challenge you sovereign wealth funds when their experience to read Helen Chaitman’s JP Madoff or look at arose in the process of market reviews for the the long history of fines against JP Morgan for 15 I. Investment Screening: Can We Filter for Productive Comapnies?
criminal activities on her website (or listen to management. We added one constraint – never her interview on the Solari Report) and explain intentionally engage in activities expected to have to me how an SRI analysis could conclude that a Negative Return to the Network. “Grossly oversimpli- JP Morgan was a socially responsible investment Grossly oversimplified, make money by adding fied, make money by because of its policies toward women. value. Don’t adopt a business model that makes adding value. Don’t It was clear, however, that interest in ESG crite- money shrinking the pie. As one of my col- adopt a business ria and governance was growing. As corporations leagues says, “Are we going to bake pies, or steal model that makes became more and more important to managing each others pies?” Don’t engage in organized money shrinking the global assets and operations, the investment com- crime and activities that broadly diminish human pie... Don’t engage munity had a growing need to pay attention to productivity. in organized crime ESG responsibilities. This notion of looking at Total Economic Re- and activities that If a decision had been made for corporations to turn was something that made sense for large broadly diminish rule an important percentage of the world’s assets pension investors who were increasingly making human productivity. and operations, they needed to do it wisely. investments in one part of their portfolios that It was part of trying to get this new model of conflicted with the assumptions embedded in corporate leadership accepted. investments in other portfolio parts. American ” Clearly we have a long way to go. money was increasingly taking on the “multiple personality disorder” implicit in our centraliza- The Solari Model tion of wealth. After reviewing our results at Hamilton, I came For example, note my letter to the New York to the conclusion that the ideal approach for in- Times in 1999, regarding private prison compa- vestors was relatively simple. nies. A company has an impact on its economic eco- March 7, 1999 system. I call it the “Total Economic Return.” Letters to the Editor That impact can be positive or negative. It can New York Times translate the resulting flow of revenues and prof- [email protected] its into a Return to Shareholders. That Return Ladies and Gentlemen: to Shareholders can be positive or negative. The Thank you for Tim Egan’s article on prisons. It difference between the Total Economic Return was an excellent summary of the growth in the US and the Return to Shareholders I refer to as the prison population over the last two decades. A wel- “Return to the Network.” come follow-up might be an exploration on how the Clearly this framework is conceptual. Although money works on prisons. we can measure Return to Shareholders, we have The federal government has promoted mandatory no hard analytics to measure Total Economic sentences and taken other steps that will increase Return and Return to the Network. the overall prison population to approximately 3 The goal of a company governance and manage- million Americans as recently legislated policies ment system should be to achieve excellence at finish working their way through the sentencing their strategic goals (make cars, sail ships, operate system. This means that approximately 10-15 mil- trains etc.) in a manner that optimizes long-term lion Americans will be under the jurisdiction of the shareholder value. That is, I agree with the tradi- criminal justice system from arrest, to indictment, to tional investment view. However, I believed that trial, to prison, to probation and parole. both companies and investors should maintain The enactment of legislation ensuring the growth of an investment in tracking and estimating their prisons and prison populations has been a biparti- Total Economic Return for the purpose of both san effort. Republicans and Democrats alike appear identifying opportunities and improving risk to have found one area where we can build consen- 16 sus for substantial growth in government budgets, • Companies who make money from the Ameri- staffing levels and media attention. Indeed, during can people losing productivity this period, the number of federal agencies with • Companies who make money from helping the police powers has grown to over 50, approximately American people grow more knowledgeable and 10% of the American enforcement bureaucracy. productive. This is further encouraged by federal laws permit- ting confiscation of assets such as homes, cars, bank We are investing in two different visions that can- accounts, cash, businesses and personal property that not both come true. can be used to fund federal, state, and local enforce- We could then calculate which was going to succeed, ment budgets. and what the integrated pricing level would be. One way to look at the financial issues involved is Better yet, what could happen that would make the to view them from the vantage point of the portfo- most money for the investment community. The lio strategists of the large mutual funds. We have question is which vision is best for us, the equity in- “It is critical to look approximately 250-280 million people in America. vestors of America? And why are investors assuming at prison policy from The question from a portfolio strategist standpoint both can or will win as they price their stocks and the standpoint of is what productive value will each one be creating bonds? maximizing return on in companies and communities and how does that It is critical to look at prison policy from the stand- equity investment. It translate into flow of funds that then translate into point of maximizing return on equity investment. would be a terrible equity values and bond risk. It would be a terrible thing, while I can no longer thing, while I can no The prison companies are marketing one vision pay taxes or buy a house or send my son to college longer pay taxes or of America with their prison and prisoner growth because I am in prison, if my vested pension benefits buy a house or send rates, while the consumer companies are market- were wiped out by the time I re-entered society. It is my son to college be- ing another. The two are not compatible. CCA’s bad enough that my life savings are being invested cause I am in prison, in companies that make money from promoting that assumptions regarding the growth in arrests and in- if my vested pension my family and me should be arrested and incar- carceration cannot be true if Fannie Mae’s, Freddie benefits were wiped Mac’s and Sallie Mae’s assumptions about home- cerated. It would be worse if my family and I were broke because companies that make money from loss out by the time I ownership and college education rates are true. We, re-entered society. the people, cannot refinance our mortgages or buy of productivity turned out to also be a bad invest- homes or raise our children and send them to college ment. if we are in jail. Such a roundtable might make for a great New ” Meantime, the municipal debt market is also fac- York Times article. If you are willing to take it on, ing conflicting positions. If prison bonds are a good Solari would be happy to assist your staff by con- investment, then some general obligation bonds tributing background analytics on how the money may be in trouble. We, the taxpayers, cannot sup- works in prisons. port the debt: we are no longer taxpayers. We have Sincerely Yours, become prisoners. Whatever we are generating in Catherine Austin Fitts prison labor, it is certainly not enough to pay for the President $154,000 per prisoner per year costs indicated for Solari, Inc. the full system by the General Accounting Office. Although my comments were prescient, the NY It would be very illuminating to get the rating Times did not take up my offer. It was part of agencies and the 10 largest mutual funds together learning to publish my opinions on my own in one room for an investor roundtable to discuss website – leading to the creation of the Solari pricing levels on the investment of our savings that Report. is internal to their portfolios and ratings. We would Seventeen years later, in August 2016, after the compare equity valuations and growth rates of: Department of Justice announced that it was not
17 I. Investment Screening: Can We Filter for Productive Comapnies?
going to renew Bureau of Prisons contract with particularly from the unproductive. private prison companies, the stocks of the two Third, for the Solari Screen, I will be looking for largest prison companies dropped almost 50% in companies that have a significant fundamental the first hour of trading. business. They make money in the marketplace. The private prison industry is one example of I am not concerned with their ESG policies or many private companies that depend on govern- compliance. I am concerned about: ment funding of a function at an expense level • Excellence in governance and management: significantly higher than the most economic ways I am looking for companies of which the to deliver that function. As described in my on investors, board of directors, and manage- line book, Dillon Read & Co Inc. and the Aristoc- ment reflect the experience, knowledge, and racy of Stock Profits http://dunwalke.com, there networks required by the business, custom- are two prison systems involved – one for the ers, and constituencies they serve. They have incarcerated and one for the taxpayers funding leadership that can produce excellence in their the first. core mission. Now that the debt-financed growth model can- • Lawfulness: I am looking for companies not continue, we must look at the fundamental with a fundamentally lawful business model. productivity of companies. Can they endure the That model does not make them perfect, nor changes ahead, including cutbacks in govern- mean that they do not make mistakes or that ment spending? a duly authorized officer of the corporation Investment Screening: Can We does not break the law. It does mean that the Filter for Productive Companies? company has not adopted a model that de- pends on intentional, institutionalized crimi- Can we filter for productive companies? The an- nality. swer is most certainly, “Yes.” However, doing so is truly an art, and not a science. • Risk: I am looking to avoid what I call “real stinkers.” They may play by the letter of the First, we do not have transparency on how our law, however, they have a reputation for play- global governance and financial system work. ing dirty or working overtime to make highly Nor do we have reasonable disclosure of covert questionable or highly unethical practices cash flows and assets. We know that trillions technically legal. These folks are likely to get have gone missing in a global financial coup caught eventually or experience serious con- d’état but we don’t know where the money went sumer and investor blowback. At some point, or how it is being reinvested. Consequently, we they have too many enemies and too many lack information to understand how the eco- liabilities not to get in trouble. Monsanto is a “Can we filter for pro- nomics of an individual company or industry recent case in point. ductive companies? really works. I can estimate, sometimes with • Private: I prefer companies that make money The answer is most some degree of confidence, however, there will in the private markets as opposed to depen- certainly, “Yes”. be surprises. dence on a high degree of government pur- However, doing so is Second, we can be confident that company prod- chases or contracts that come with a heavy truly an art, and not ucts and services are productive, make money for degree of political risk. The exception is state- a science. the shareholders, and add value in the general owned companies in international markets economy. However, such a company can still where this risk is a common, seasoned prac- be targeted by economic warfare by government tice, and a hybrid public-private partnership ” (e.g. the coal companies) or by covert operations can reduce political risk. (e.g. Chipolte) in a manner that significantly harms productivity. Productivity is not neces- By definition this may leave out a significant sarily protection against growing political risks, number of ESG criteria. Consider this a positive 18 screen. I am looking for companies with high in surveillance capitalism that compromises productivity that contributes to the productivity individual privacy, rights, and sovereignty. of the general population in a manner that sup- • Entertainment, media, social media, and ports enduring performance for shareholders. telecommunications companies that engage Define “Real Stinkers” global hacking networks to compromise competitors systems, performance, and prof- A company that is a “real stinker” likely fits Jus- itability. tice Potter Stewart’s characterization of pornog- raphy: “I know it when I see it.” However, since • Entertainment, media, social media, and tele- there is wide variation on ESG criteria, I antici- communications companies that engage in pate varied opinions on what does and does not systemic mind control or utilize entrainment generate a Negative Return to the Network technologies to distract or confuse the popu- lation, generate overconsumption, predatory Several months ago, Jason Worth helped me lending, and create addictions, or do all of compile a list of companies with business models these. intentionally designed to profit from a Negative Return to the Network. • Manufacturers of products, such as slot ma- chines and other gaming devices that utilize As I prepare the Solari Screen, we welcome your entrainment technologies to exploit users and input to this work in progress. Here it is: create addictions without their tacit awareness “A company that is a Negative Total Economic Return: or consent. “real stinker” likely Examples By Industry Sector • Companies that abuse animals for profit. fits Justice Potter n BASIC MATERIALS • Agricultural and other firms, which rig mar- Stewart’s character- • Manufacturers of genetically modified prod- kets, bribe officials, and violate anti-trust ization of pornogra- ucts and other food substances, which are laws. phy: “I know it when I see it.” However, marketed without adequate disclosure and n FINANCIAL SERVICES cause cancer, obesity, infertility, and other since there is wide maladies from their consumption. • Financial institutions that launder drug variation on ESG money and engage in financial fraud. • Manufacturers of seeds that do not germi- criteria, I anticipate nate or reproduce beyond one planting cycle. • Financial institutions that routinely manipu- varied opinions on late markets for financial gain. what does and does • Metals and mining firms that use covert op- erations to obtain or exploit mining proper- • Financial Institutions that engage in pred- not generate a Neg- ties or excessively damage the environment, atory lending activities or seek to keep ative Return to the or do both. consumers in a cycle of never-ending debt, Network. including those which target students and • Manufacturers of chemicals, pesticides, and young people, or do all of these. nanoparticles that cause harm to plants, an- ” imals, and the environment or are used in • Financial services firms that collude with in- global spraying operations telligence agencies to aid in the centralization of control and the extraction of “illegal taxes” n CONSUMER (Staples and Discretionary) by criminal means. • Corporate media and publishing companies • Investment and asset management firms that promote propaganda or engage in material launder ill-gotten gains into acquisitions and omission of news information vital to a free control of strategic resources. and transparent society, or do both. • Debt collection firms whose business practice • Entertainment, media, social media, and include failing to properly notify defaulted telecommunications companies that engage lenders in order to get uncontested court 19 I. Investment Screening: Can We Filter for Productive Comapnies?
judgments, utilizing falsified documents, and – Spy on web-surfing activity and email con- failing to obey consumer protection laws. tent of their users, • Financial institutions that engage in reckless – Sell data about their users’ activities and behavior, which have required trillion-dollars behaviors to third parties, or otherwise com- bailouts from the public sector. promise privacy and security, or,
n REAL ESTATE – Provide government agencies with data on users without legitimate court orders, • Private prison firms that lobby for and profit from the over-incarceration of Americans and – Engage in activities described above under illegal immigrants. Consumer n • Real estate companies that use covert opera- ENERGY tions and violence to create or evict tenants. F Oil and gas exploration firms that use covert operations to obtain or exploit drilling properties n HEALTHCARE or refuse to remediate their excessive damage to • Pharmaceutical and medical companies that: the environment or that do both.
– Focus attention on “treatments” with their n INDUSTRIALS ongoing revenue streams rather than “cures” F that limit profits; Defense and surveillance firms that: – Have been known to distribute toxic • Promote war and engage in torture, vaccines; • Profit from the compromise of national sov- – Falsify testing data to obtain FDA approval; ereignty (i.e. missing money), – Promote junk science; • Engage in mercenary activities that violate the principles of national sovereignty and the – Lobby governments to minimize or destroy monopoly of force by a sovereign within its health freedom or mandate private expendi- jurisdiction, or tures. • Organize, implement or participate in false • Testing companies that compromise privacy. flag events, • Biotechnology companies that create technol- • Participate in global spraying, ogy to facilitate transhumanism or promote slavery through implantable devices. • Manufacture and/or implement invisible weaponry that engineers weather warfare or n UTILITIES “natural disasters.” • Power and water suppliers that make it diffi- F Government contractors that manipulate the cult or impossible for consumers to opt out government contracting process for their gain at of smart meters or electrical services or go off- the expense of taxpayers. grid. n TECHNOLOGY • Utility firms that promote green energy, cli- mate change, or other legislation primarily to • Social media firms that: impose regulations which reduce competition – Spy on the web-surfing activity and email for their services or justify unnecessary prices content of their users, increases on their customers. – Sell data about their users’ activities and be- n COMMUNICATIONS SERVICES haviors to third parties, or otherwise com- • Telecommunications companies and internet promise security, or service providers that: – Provide government agencies with data on
20 users without legitimate court orders. favorite essayists, Michael Ventura, We’ve Had • Software companies that offers backdoors. a 100 Years of Psychotherapy – And the World’s Getting Worse. • Manufacturers of voting machines that can corrupt the outcome of fair elections. After a review of the growth of ESG-related investment to date, it looks as if an inhuman • Government contractors that manipulate the corporate model continues on the rise. Unfortu- government contracting process for their gain nately, the rush of globalism has contributed to a at the expense of taxpayers. lack of accountability and a cross-border freedom • Knowingly deliver entrainment technology, for a wide range of corporate shenanigans. Ditto, subliminal programming, and other tech- invasive invisible technology and weaponry. nologies designed to create addictions, and Nevertheless, I believe that a combination of increase usage and profitability, or otherwise transparency and broadly based application of engage in activities described above under the Golden Rule to finance and investment can Consumer. make a difference. We have the benefit of de- n ALL SECTORS cades of hard work of committed proponents “I believe that a com- • Firms that manipulate and lobby legislatures of SRI and good corporate governance from bination of trans- in order to pay little in taxes or receive unnec- which we can draw. This gain occurs despite the parency and broadly occasional mess created by the Soft Revolution essary government purchase orders or subsi- based application of spinmeisters to use ESG criteria for irresponsible dies; the Golden Rule to purposes and the waste created by an absence • Firms involved in slave trafficking or whose of transparency that investors need if they are finance and invest- executives or contract managers are engaged going to successfully apply ESG criteria on an ment can make a in slave trafficking or pedophilia; economic basis. This is in no small part thanks to difference. • Firms that use illegal tactics, including covert an increasingly useless, if not dangerous, corpo- operations, such as violence and assassination, rate media which is why more than a few of these ” or control files to silence and manage its em- companies do not qualify as productive compa- ployees, to lobby for new laws and regulations nies in my book. or to target or weaken competitors or regula- So, I am a believer, but tors; a discerning one. If you
• Firms complicit in accepting and laundering are a creator or consumer BUDDHISM Treat not others in ways criminal proceeds or governments cheap capi- of ESG-related services, THE thatGOLDEN you yourself would RULE is a basic teachingfind of hurtful religions worldwide tal arbitrage. I hope this Solari Report This list is a work in progress. Suggestions are inspires you to be a more welcome. discerning one too. A strict application of these criteria in a negative ISLAM screen would disqualify many large companies No one of you is JUDAISM a believer until What is hateful in the top holdings of the most popular SRI he desires for to you, do not do his brother what BUDDHISM to your fellow man. funds. It would also not disqualify the securities he desires for Treat not others in That is the entire himself. ways that you yourself Law; all the rest of many companies often disqualified by SRI in- “The Golden Rule“ would find hurtful. is commentary. vestors, such as gun manufacturers, some tobacco is a basic teaching of companies, and alcohol producers religions worldwide. From Catherine’s book, TAOISM Conclusion Prayers For The Regard your HINDUISM neighbor’s gain CHRISTIANITY This is the sum Year 2016 as your own Do unto others of duty: do not As I review the world of ESG, including screen- gain, and your as you would do to others what neighbor’s loss as have them do would cause pain ing, I am reminded of the title of a wonderful your own loss. unto you. if done to you. dialogue between James Hillman and one of my 21 II. News Trends & Stories
22 ECONOMY & – University Festoons Campus With Absurd FINANCIAL MARKETS ‘Ze, Zir, Zirs’ Pronoun Posters Brexit & Financial Re-engineering’s – Prison Stocks down 48% – Health Care Records destroying Health care • Global Central Banks Are All-In: QE Running At Record $180 Billion Per Month • US Budget Hot Potato (And Rising) • U.S. Army Fudged its Accounts by Trillions • Theresa May Tells UN the UK Will Not of dollars, Auditor Finds Turn Inwards After Brexit Vote • Lockheed Martin Cuts and Runs Global Slowdown • Koch Brothers and ALEC Push for a Constitutional Convention • 28 Hanjin Ships Complete Cargo Discharge • Oklahoma’s U.S. senators don’t want women Global 3.0 Rising to register for the draft • Automation May Replace Millions of Jobs in • Trump Tells Ryan He’s for Cutting Social PLEASE NOTE: All the news Tennessee Security • Why Apple Bought Turi: Acquisition articles listed in this section • Justice Department Plans to Stop Using can be accessed by going Reflects Tech Giant’s Broader Push into AI Private Prisons to the online version of this and Machine Learning • Pension Fund Hot Potato Wrap Up at: www.Solari.com • Uber Launches Groundbreaking Driverless then use the search function – Puerto Rico’s Warning for States, Cities: car Service to locate the items. You Might Be Next Surveillance Capitalism – Pensions: Bills Would Address Multiem- • European Commission Proposes the ployer Plans, Savings Creation of a Bitcoin User Database • Commodities & Oil • Facebook Recommended that this Psychia- – ‘The Real Battle Is, Who’s Going to Own trist’s Patients Friend Each Other the Energy Supply?’ Financial Hot Potatoes – Putin Pushes for Oil Freeze Deal With • Negative & Low Interest Rates OPEC, Exemption for Iran – Global Debt With Negative Rates Reaches – How The Cost Of Energy Is Going To 12 Trillion Zero – Divided Fed Holds Fire, Signals 2016 Rate • Flows Increase Still Likely – “Central Banks Now Own $25 Trillion – The 35 Year Bond Bull is on It’s Last Legs Of Financial Assets” • Productivity: The Health Care, Education – US Companies are ‘Hoarding’ a Record & Government Re-engineering Cock Up* $2.5 Trillion in Cash Overseas – Global Debt With Negative Rates Reaches – UnAnswered Questions About Wells 12 Trillion Fargo: Are Phony Mortgages on the Fed • Productivity: The Health Care, Education Balance Sheet? & Government Re-engineering Cock-up – Productivity Declines 0.5%, Down 3rd • Volatility, Uncertainty Consecutive Quarter, Longest Losing – Fewer People Are Starting Their Own Streak Since 1979 Businesses – Dear Silicon Valley: Forget Flying Cars, – The Kauffman Index of Startup Activity Give Us Economic Growth – DOJ Squeezes Deutsche Bank and Volk- – Rotten to the Common Core Publishes swagen Deutsche Bank: No Plan to Pay – Texas Judge Blocks Obama Transgender $14B Justice Department Settlement Bathroom Policy
23 II. News Trends & Stories
The Future of Food • Putin Jumps Into the Race to Build a • Russian State Duma Bans Import and Hyperloop Production of GMOs • India’s Ascent: Five Opportunities for • DARK Act Compromise Could Preempt Growth and Transformation Vermont’s GMO Label Law • China-Europe Freight Train Adds New • The Burrito Index: Consumer Prices Route to Russia’s Chelyabinsk Have Soared 160% Since 2001 EU: What’s Next? • FDA Declares Veggies ‘Unapproved • ‘This is the Beginning of a New Europe’ say Drugs’ Merkel, Renzi and Hollande • Bayer acquisition of Monsanto: Heroin, • How Long Will It Take for the ECB to Own Nazis and Agent Orange: Inside the $66 All Sovereign Debt of Spain, Germany, Billion Merger of the Year France? • US Faces Major Setback As Europeans GEOPOLITICS Revolt Against TTIP Are We Sovereign? • Angela Merkel Signals She May Back Down • To the Governor’s Desk: Sweeping Vermont from Open-door Refugee Policy After Disas- Privacy Bill Passes; Would Hinder Several trous Berlin Election Federal Surveillance Programs Monica Lewinsky II - The Shriek-o- • Orwellian CA Bill: Reporters Can’t Post Meter Dials Higher as the Players Cut Undercover Videos and Run • Warning: CDC Wants to Quarantine and • The Clinton-Wikileaks Feud Force Vaccinate Americans for Suspicion of • Bond King Predicts Wikileaks Will Take Infectious Disease Down Hillary Clinton The Shift to a Multipolar World • FBI disclosures document felonies by • Turkey Foils Coup Attempt Clinton and Staff • The Real Secret of the South China Sea • Clinton calls American’s deplorable: Stay • Obama Tries to Sneak Through TPP in Calm and Do the Math Lame-duck Congress • Hillary Clinton Faints Outside of 9/11 • Toward a Global Realignment – Zbigniew Event; Doctors Claim Pneumonia Brzezinski • Lead Attorney In Anti-Clinton DNC Fraud • The Broken Chessboard: Brzezinski Gives Case Mysteriously Found Dead Up On Empire • Two Prominent Anti-Clinton Activists The Drums of War Found Dead in Two Days; Mainstream Media Blackout • Putin’s Warning: Full Speech at St Peters- • Wikileaks’ Assange Hints Murdered DNC burg International Economic Forum 2016 Staffer Was Email-Leaker, Offers $20k • Jack Ma: Wars Start when Trade Stops Reward For Info • Game of Drones: Inside the Killer Robot • Hillary Clinton Leverages Media in Ecuador ‘Arms Race’ Where the World’s Five Lead- to ‘Reconsider’ Julian Assange’s Asylum in ing Superpowers are Secretly Preparing for London an All-out Futuristic War • WikiLeaks: Intruder Tried To Break Into • ‘Unbelievable’ that US Strike on Syrian Julian Assange’s Quarters Army was Mistake – Fmr MI5 Agent • Legal analysis of Clinton e-mails. The Silk Road Grows Assassination & Covert Operartions • Interview: G20 to Pave Way for more Get Obvious China-Egypt Infrastructure Deals • CIA Director John Brennan Admits to
24 Chemtrails (Stratospheric Aerosol Injection) His Autistic Son • This Guy Keeps Getting Killed in Terrorist – Warning: CDC Wants to Quarantine and Attacks Force Vaccinate Americans for Suspicion • Government Officials Admit to ECONOM- of Infectious Disease IC False Flag Operations – How Much Money Do Pediatricians Real- • Staggering Corruption at Pentagon Reveals ly Make From Vaccines? NATO/NASA Lie at Heart of Fedgov • Zika Op • The Tide is Turning: The Official Story Is – Zika Psyop to Justify Releasing Millions of Now The Conspiracy Theory Bill Gates’ GM Mosquitoes in Florida • The 9/11 Truth Movement: 15 Years Later – Zika Fight Hits Brooklyn and Queens: • Stealth Weapons are Being Used to Torture Officials Reveal Map of NYC’s Potential and Subjugate Countless American Citizens Outbreak Zones as They Begin Spraying the City SCIENCE &TECHNOLOGY – Brazil Admits Zika is Not Causing Birth The Space-Based Economy Defects • Space Commercialization and Weaponiza- – Like It’s Been Nuked’: Millions of Bees tion: That “Little”... Dead after South Carolina Sprays for Zika • The Rise of Commercial Spaceports Mosquitoe • New NASA Publication: Economic Develop- • EMF ment of Low Earth Orbit – Take Action Against 5G NOW!!! • Dr. Steven Greer: Getting Bribed – ABC Catalyst Wi Fried • Prospector-1: First Commercial Interplane- – ABC TV reporter and Catalyst Host Dr. tary Mining Mission Maryanne Demasi SUSPENDED over • Chinese Scientists Study Viability of Manned Science Program Claiming Wi-Fi Caused Radar Station on the Moon Brain Tumours • SpaceX Explosion Takes Out Facebook’s – Gestapo In The USA: FCC Intimidates Multi-million Dollar Satellite Press and Kills Free Speech at 5G Rollout • ISRO May Do a 68-Satellite Single Launch • Microchips Next Year • McKinsey Commentary: How Aerospace – NBC: Your Children Will Be Micro- Should Deal with Brexit Chipped “Sooner Rather Than Later” • Testing the Impossible: The Controversial • Other EM Drive is Heading to Space – One Striking Chart Shows Why Pharma Blockchain Companies are Fighting Legal Marijuana • IBM to Launch First Commercial Block- – Shock Figures to Reveal Deadly Toll of chain in September Global Air Pollution – Anti-Geoengineering Legal Alliance Files Health Freedom US 60 Day Notice Of Legal Action • Vaccines – How One GMO Plant Nearly Took – Health Lessons from the Amish, Menno- Down the Planet... nites and Other Plain People – Crossbreeding Humans With Animals – STREAM: Official Vaxxed: from Approved In United States Cover-Up to Catastrophe – FDA Issues Revised Draft New Dietary – Lead Developer Of HPV Vaccines Comes Ingredient Guidance for Supplements Clean, Warns Parents & Young Girls It’s All A Giant Deadly Scam – Luke’s Best Chance: One Man’s Fight for
25 II. News Trends & Stories
Cyber Insecurity The Future of the US Dollar as Reserve • World’s Biggest Data Breaches: Selected Currency Losses Greater than 30,000 Records • Revealing the Real Rate of Inflation Would • Biohacking Is Great, But Nobody Wants It Crash the System • First the DNC, Then Darth Soros, Now it’s • Four More Mega-Banks Join The Anti-Dollar the... Alliance • Civil Rights Coalition files FCC Complaint • China continues to unload US debt ‘for Against Baltimore Police Department for yuan’s SDR entry’ Illegally Using Stingrays to Disrupt Cellular Communications Environmental Stress • Book Review: This Does Not Change Every- • School Creates Own Security Hole; Tries thing To Have Concerned Parent Arrested For Hacking Wildcards 3.0 Innovation • Executive Order - Providing an Order of • Farmbot Genesis Succession within the Department of the • Brain Power Multiplied for Drone Swarm Treasury Control • German Government Urges Citizens To • Smart Sutures Send Wireless Status Reports Stockpile Food, Water “In Case Of Attack from Wound Sites Or Catastrophe” • Obi robot arm gives disabled diners a helping • 10 Mind-blowing Facts about the CERN hand Large Collider You Need to Know • Check Out the Whale Hologram in the • US Ready to ‘Hand Over’ the Internet’s School Gym Naming System • A Breakthrough in the Use of Glass for Inspirations Power Storage could Unleash a Torrent of • A Blind Man and His Armless Friend Plant a Innovation in the Transportation Forest in China • The Shining Star of Losers Everywhere THE BIG QUESTIONS • Brazil Olympics Recap: 10 Best and Worst The Future of Cash and Income Moments of Rio 2016 • FedCoin: When the Central Bank Copies • The Young Entrepreneur With Big Plans But Bitcoin ‘Still Has to Do Homework • Reasons Why Major Global Banks Are De- • Iraqi Woman Uses Chilcot Report in War veloping Their Own Cryptocurrency Crimes Lawsuit Against George W. Bush • Central Bank Digital Currencies: A Revolu- • Monsanto Whistleblower Receives $22mn tion in Banking? Award Under US Federal Govt Program • Oregon Couple Turns Tables on Fish and Economy: Open or Closed? Wildlife with Viral Letter • Small Asteroid Is Earth’s Constant Compan- ion • The Day After Disclosure: Richard Dolan’s Unexpected Twist On What’s Coming • Greer: Expose of the National Security State • Former Wall Street Banker Suggests Global Debt May Not Be Owned by Humans • Syrian arch razed by ISIS and re-created with 3D technology arrives in New York City
26 An in-depth look at the News Trends & Stories An interview with Dr. Joseph Farrell
3RD QUARTER WRAP UP through to the stories. Of course, a full transcript of our discussion will be at both websites as well PART ONE as the hard copy, if you are getting the hard Catherine Austin Fitts: Ladies and gentlemen, copy. When the hard copy is accessible, it will be welcome to 3rd Quarter Wrap Up: News Trends, available at the store. and Stories. We’ve had quite an explosive news Needless to say, one of the favorite parts of my process for the last three months. Our wonderful year is quarterly chewing through news trends Top Picks editor has weekly compiled all the and stories with Dr. Joseph Farrell, who joins us Top Picks. We’ve posted hundreds of what we today. believe are the top stories of each week, and then Joseph, it is such a pleasure to have you. synthesize, collect, and talk about them through- Dr. Joseph P. Farell out the quarter looking for the most important Dr. Joseph Farrell: Hello, Catherine. Thank patterns. you for having me back. It’s a time-consuming, serious process, and it Fitts: I think one of the reasons I don’t feel helps me tremendously in seeing the bigger pic- overwhelmed by this list is because, “Joseph’s big ture. I value it, particularly when I look at the brain will be here to help.” trends and stories next to the financial charts and Farrell: Like I told you before we started, I’m what’s happening in the money. kind of tap-dancing here, folks. We’re going to talk about News Trends and Sto- Fitts: Well, we’ve talked through most of these ries – as we regularly do – in two parts. Part one already, so I think you’re really on top of this. is going to be the Economy, Financial Markets Reading your website and listening to your vid- and Geopolitics. Part two will be Science and chats, I know you’re on top of this. Technology and The Big Questions. Before we start, one of the biggest requests from All the stories are linked within the trends on subscribers is to ask, “When can we have an op- your web presentation, and I would encourage portunity to meet Dr. Joseph Farrell?” Lots of www.Solari.com you to log in at and go to the people want to meet you. So before we begin, I www. resource center. This will also be at want to point out that we are going to be hav- GizaDeathstar.com. So whether you access from ing a dinner on October 15th. We decided that Giza Death Star or from Solari, it helps to follow given all the different directions we’re coming along with all the trends and to be able to link 27 II. News Trends & Stories
from, we would meet at a midpoint in Tulsa, If I had to pick one story for the 3rd Quarter, it Oklahoma. We are having a dinner at Kilkenny’s would be the US Department of Defense Inspec- Irish Pub from 7pm – 11pm October 15th. That tor General announcing that $6.5 trillion was is a Saturday evening and you’re going to be missing at the end of the year. They made $2+ there, I’m going to be there, and we’re going to trillion in adjustments during the year and we’re be talking about your new organ. now up to $9.3 trillion in one year. Now this is my idea; don’t blame this on Joseph! The mind boggles, but if you look at that We are going to be launching a crowdfund to get combination, with a new effort to hold a Con- you an organ – a real, live, big, honking organ – stitutional Convention and balanced budget but it has virtual pipes which is why it is called amendment, it looks like we are seeing a “cut a virtual pipe organ. But I want to make it clear and run.” that the organ is not virtual; it’s quite substantial. You probably were too sensible to be part of this, We’re going to celebrate the crowdfund on but I lived in Washington, DC when the Monica October 15th and you will see more about this Lewinsky impeachment was going on. It helped when we have the webpage for this crowdfund to cover up the tearing down of internal financial available. controls and the pulling of trillions of dollars If you want to meet Joseph, here is your chance from Federal accounts – the financial coup d’état to do it. You can learn more about the event at started right at that point. The scandal and theft the website www.Solari.com. It’s on the home happened together. page, with Joseph looking like Phantom of the It was amazingly orchestrated, and it was the Opera right in front of the organ. most powerful shriek-o-meter we had seen until Farrell: That’s a great logo! that point. About a month ago, we started to see this explosion of problems about Clinton’s Fitts: That is a great logo. So, it’s October 15th health – Clinton is a hologram; she really died, in Tulsa from 7-11pm. Come on out if you want etc. The shrieks got louder and louder and I We are going to be to get the chance to talk with Joseph and me in “ thought, “I’ve seen this someplace before. Where launching a crowd- person. have I seen this?” fund to get you an Okay, last 2nd quarter we ended with Brexit Farrell: Yes. organ – a real, live, happening the day before the end – big bang, big, honking organ boom! You and I had a great deal to talk about. Fitts: I realized, “Oh, this is Monica Lewinsky – but it has virtual It was a fascinating discussion. It was so good II.” pipes which is why that we put the whole transcript into a hard Farrell: Yes. it is called a virtual copy, which is the first time we’ve done that. We Fitts: I’ve always said that the campaign distracts pipe organ. said, “Everybody has got to see this.” us against the real stuff, but I’ve been struggling ” We ended the 2nd quarter with Brexit and now to figure out the pattern. What are they distract- we have a combination of events that I think are ing from? I think it’s the cut and run. very much Brexit-like, and I refer to them as “cut Farrell: I happen to agree with you. You put the and run plus Monica Lewinsky II.” two stories together. Global central banks are all Farrell: Couldn’t be more aptly phrased! in, and Theresa May tells the UN that the UK Fitts: We are watching more and more signals will not turn inward after the Brexit vote. Well, and symptoms that have major players pulling there is another story. The German government money out, whether legally or illegally. We can is not going to bail in Deutsche Bank, so its hear a giant sucking sound of Wells Fargo phony stock will continue to tumble, and that’s huge. accounts and related things, or the $6.5 trillion This follows the German government telling the gone missing from DOD. population, “Stock up and brace yourself. Some-
28 thing big is coming.” This might be it. ignition switch and we hardly heard a peep At the same time, I today got an email from one about them. friend in Germany, about the latest advertising Farrell: Right. campaign of Commerzbank, the other large Ger- Fitts: They are squeezing the Germans on man bank. Its logo is to the effect of, “Deutsch Deutsche Bank and Volkswagen at the same time Bank, we’re the real German bank, and we’re Bayer is buying Monsanto at a 44% premium. here on your side.” If they’re going to institute a balanced budget In other words, they are preparing people for a amendment, we know what will happen to farm potential bank collapse. I have tried to follow this subsidies. Given what has happened with com- Clinton health campaign business, and I agree modity prices, the farmers can’t afford to buy with you. I think it distracts us from what is re- seeds anyway, before anyone messes with their ally going on – the financial crisis. farm subsidies. It was interesting to me, even in the debate last If you see who the Monsanto insiders are, it’s night, that Trump wouldn’t go to the health easy to discern that somebody wants to get taken issues all that much. He kept hammering away out before the election. at the financial thing. So, yes, I think something Farrell: Yes, I agree. And I agree with the analy- big is in the works. I am in agreement with you; sis about Bayer and Monsanto, too. They really they are pulling money out. They may acceler- are putting the squeeze on the Germans. We’ve ate their plans to “roll it over,” as you say, into discussed this many times – and often off the Global 3.0. That’s the way it feels. record – that this is also somehow looking to be “If you see who the Fitts: I’ve started to use the expression “cut and a real behind-the-scenes war on Germany. There Monsanto insiders run” when Lockheed spun its IT division out are so many details. are, it’s easy to dis- before the $6.5 trillion missing was announced. We had the recent announcement that the Ger- cern that somebody They announced that they were going to spin it mans are tripling the size of their military. Well, wants to get taken in January; they spun it out in July. The DOD when Germany triples the size of the military, I out before the elec- announcement came in August. stand up and notice. This is a bit of déjà vu. tion. If you look at the date of the announcement of Fitts: That says two things: first they don’t an- the spinout, it was the first date after the calendar ticipate the US honoring agreements or pulling ” involving their 2015-year. That was the soon- back. They expect a pullback or a collapse. But est that they could do anything if the bankers also, if they want the euro to survive, they’re fig- wanted to keep control through the Federal fiscal uring that they need a Northern Europe central- 2015, but announce the missing money after ized military to survive. their calendar year was over. Farrell: Yes, and it’s interesting too. I did a That just shrieks “cut and run” but there is News & Views last week about the United States something that you brought up with the Ger- army participating in war gaming contests in mans, and I think that this is very interesting. Germany with Denmark, Holland, Poland, Es- We have suggestions that some American banks tonia, and a couple of other Central European may help Deutsche Bank’s pain on the derivative nations like the Czech Republic. But the result side. That’s a big question mark. At the same of the war-gaming exercises for Americans were time we have the Department of Justice putting not too positive. We didn’t even place; we were a huge squeeze on the Germans. It is claiming beaten out by Denmark and Poland. The Ger- a $14 billion fine on Deutsche Bank, and their mans actually won the war games contest. This DOJ is going hard after Volkswagen, indicting doesn’t bode well; something is going on behind one executive on criminal charges although we the scenes. know that GM killed 125 people with the faulty The other serious matter Lockheed cutting and 29 II. News Trends & Stories
running and spinning off its IT tech division. the Department of Defense had $9.3 trillion of This is a huge story. Our hypothesis of a Break- undocumented adjustments last year, that’s not away Civilization – or rather Richard Dolan’s legal under the Constitution. – is, in fact, true. They really are breaking away. Farrell: Right. They are severing all of their dubious connec- tions before the storm hits. Fitts: Just like all the other missing money since fiscal 1998 are not legal under the Constitution There is a lot going on here. so we survive outside of Constitutional protec- Fitts: People always say to me, “You can’t get the tion. Why do you need to change the Constitu- “They really are money back.” I say, “Yes, you can, because you tion if you don’t have to obey it? breaking away. They can assert common law right of offset.” Farrell: Precisely. I can’t warn people enough are severing all of In fact, I was involved in litigation when the De- about the dangers of a Constitutional Conven- their dubious con- partment of Justice asserted common law right tion. Granted the current system is not perfect; nections before the of offset to technically regain an opportunity cost do we want to take the chance of having a con- storm hits. – not even a cash loss. So the precedence legally vention? Remember that the Philadelphia con- exists to get back, if not all the money, at least a vention in 1787 was oligarchs getting together. ” significant amount because the contractors are They were tasked with revising the Articles of liable. Confederation, not coming up with a new Con- Think about it. If you’re Lockheed and the larg- stitution – which is what they delivered. est seller of weapons and weapons systems to the Constitution Convention could scuttle the whole Department of Defense, it’s convenient to run of civil liberties and give us something that we the DOD payment and accounting systems. don’t want. Do we trust this political class in this Farrell: Absolutely. It’s quite convenient. country – the Koch brothers and the Bushs and the Clintons and the Soros’s and the Rockefellers Fitts: Here is what is amazing. ALEC is the as- etc.? Do we trust that political class to come up sociation of state legislators. If you watched the with a Constitution beneficial to the people? documentary Hot Coffee, you know how ALEC Well, I know what my answer is – a big, whop- was used to get tort reform throughout the coun- ping No. try. If you want to get something through the 50 states, ALEC is where Bill Gates greases the Fitts: Let me bring up several things: NBC re- process. cently ran a spot on why our children will soon be microchipped while central banks working on Anyway, the Koch brothers and the conservative cryptocurrencies and their own form of bitcoin. groups are reported to have been financing a So we have digital fiat currency combined with push for a balanced budget amendment and a chipping people. Does that sound like anything If you watched the “ Constitutional Convention. They have 28 states, you know? documentary Hot and need only six more. Their process has been Coffee, you know going on steadily throughout the year while ev- Farrell: Yes. It sounds like the Beast system in how ALEC was used eryone else has watched Monica Lewinsky II. the Book of Revelation, absolutely. Even if they were to attempt to put into place such a system, to get tort reform This is frightening to open up the Constitution – they would create vast underground economies. throughout the coun- and it depends on how you do it – and if you do We will see the rise of local and regional curren- try. If you want to get a budget balance amendment, it is one process. cies almost overnight. I, for one, will not go into something through If you do that plus open up the Constitutional a system like that because doing so surrenders the 50 states, ALEC Convention, it’s another thing. our personal sovereignty and freedom. When you is where Bill Gates Here is what is interesting, Joseph: Under the do that, economies break down. In a system like greases the process. Constitution you cannot spend money unless it’s that, do we trust these people? Well, most of us been envisioned in an appropriation process. If would say, No. Their bad record is too clear. ”30 The other problem I have with a new this $2.8 trillion documentable adjustments during Constitutional Convention idea is that all these the year. That’s $21.2 trillion of documentable balanced budget amendments mean nothing to adjustments, plus $27 trillion on bailouts; that’s the central banking welfare warfare model. This $48.2 trillion. You say, “Wait a minute. You is the other problem. take $48.2 trillion and then say that you want to The one time in American history I know that balance the budget? You can’t balance the budget the Federal government budget was balanced was without getting that money back.” That’s how under Andrew Jackson. What did he do? He did you balance the budget. not renew the charter of the central bank. Let’s say you and I had a joint bank account, and Fitts: Yes, and he got shot. we had $1,000 in it. If you took the $1,000 out without my agreement, and then said, “We need Farrell: Yes. This was the only time we’ve had a to balance the books. We can’t spend any money balanced Federal budget. What did the banks do because there is nothing in the account,” that is a as a result of this? They started printing private balanced budget. It is saying, “Okay, we stole all bank notes. the money. Now we can’t afford to spend money In other words, they themselves went to the on the things you’ve been promised. We have to option of local and regional currencies. They be fiscally responsible, and not spend money on created a currency crisis in the country. you.” I’m extremely skeptical of calls for a Constitu- Does that make any sense? tional Convention. If politicians were to pull off (Call is interrupted) another Philadelphia Convention and give us a whole new Constitution, there would be regions Farrell: I’m sorry, guys. Everything went down of the country that simply wouldn’t accept it. – my computer, my phone, everything. I had to That would be the beginning of a real national reboot. crackup. Fitts: So we were right about cut and run. I think we need special district attorneys in the Farrell: Right, and after it went down I heard states to look at each Federal mandate and tie all this ‘boom’ off in the distance like a transformer of the mandates up in litigation. Use the current had exploded, which I don’t think happened system, and use it for the benefit of the people because the electricity is still on. The boys at Fort and the local state governments rather than trust Mead aren’t too happy with us! Anyway… this political class to come and save the day. I Fitts: It’s always good to have positive feedback. just don’t trust them. Farrell: Do you know what happened to A good conservative Fitts: Let’s do the numbers. A good conservative “ Michael Savage on Monday? He’s a talk show would not say that would not say that we need a Constitutional host who talked about Hillary’s health. Well, the we need a Consti- Convention or a balanced budget amendment; owners pulled his station. They pulled his live tutional Convention he would say, “There is $21.2 trillion missing commentary and ran a rerun on his New York from the Federal government. Where is it now, or a balanced bud- affiliate, and he kept going. Then they yanked all get amendment; he and how do we get it back?” of his other stations in the country. would say, “There is We heard on the debates last night, “We have Fitts: Oh, my God! $21.2 trillion miss- $20 trillion of debt.” Farrell: Yes, they are getting blatant. Anyway, to ing from the Federal Wait a minute. There is $4 trillion missing from pick up where we were, you were going over the government. Where federal accounts between 1998 and 2002, $8.5 numbers. is it now, and how do trillion missing on foreign wars through Iraq, we get it back? Iran and other Middle Eastern wars, $6.5 trillion Fitts: Let’s start again and look at the numbers. at the end of last year for the DOD, and then If you listened to the debates last night, I believe Trump said we have $20 trillion of debt. Well, ” 31 II. News Trends & Stories
look at the undocumented adjustments between compare to Europe or parts of the Middle East, fiscal 1998 and today, what we have counted and and certainly not to parts of Asia. It’s time we I WANT MY is publicly documented is $21.2 trillion. You add held you accountable for that.” I couldn’t agree MONEY BACK! the $27 trillion of bailouts that is $48 trillion more. dollars that has been handed out. Farrell: I agree with him, too, but the debate has If we have a pot, and take out $40 trillion dollars real subtext between the two candidates. I think and say, “You know something? We have no Trump knows something, and I think that the money left, just debt. We need a balanced bud- others know that he knows it. This has been the get amendment so that we can abrogate all the bellwether of his whole campaign. He has turned contracts that we’ve promised to you guys.” the campaign into a referendum. My attitude is, “No, we don’t need to keep I’ve said over and over that I don’t view this elec- paying money into a system that just stole $48+ tion as simply an election; it’s a referendum on trillion.” We don’t need to keep paying taxes concepts. The concepts are: Do we want more into something that stole $50 trillion, let alone of Mr. Global or his globalism, or do we want to that is going to abrogate its obligations to us. take control of our economic future and reassert I don’t need a balanced budget amendment. I our sovereignty over it? It’s really a referendum need to know where that missing money went about that. and get it back. And I can get it back because I Fitts: I think it’s a referendum about centraliza- can get back the equity ownership of the assets tion, which has a negative return on investment purchased or created with it. versus a system that has a positive return. I think I don’t have to get cash. I can get back $50 tril- Trump is an equity guy. I don’t think Trump or lion worth of assets. A good conservative wants anybody is against globalization as long as it has to know where the money is and to get it back. a positive return on investment. But what we’re Farrell: Exactly. I’ll tell you something. This doing is centralizing in a way that has a negative was the subtext, I think, that was going on in the return on investment. Everybody knows negative Clinton/Trump debate on Monday night. returns on investment end in depopulation or death for most people. Fitts: Yes. Farrell: Yes, exactly. And Mr. Global’s agenda Farrell: This was the subtext. You will notice are centralization and depopulation. Well, as I that what Trump kept harping on was running pointed out, depopulation as a meme has been the numbers. He even said at one time, “I’m a pressed by the central banking wealthy oligar- numbers guy,” if I remember correctly. chy since the Republic of Venice. Malthus or Fitts: Do you remember when he said, “Look, Rockefeller didn’t invent it. Of course, the de- we spent $6 trillion on Iraq. We could have population estimates are always wrong because fixed the country up twice for that amount of estimating occurs in terms of a closed system of money. And what do we have to show for that economics and finance when the reality is that $6 trillion? Nothing. Then you go to Europe and technologies change. As technologies change, the Dubai, and they are first world countries. We financial system must change with them. look like a third world country when we could They’re operating with an old paradigm, and this have fixed ourselves up with that $6 trillion. is the problem. It’s coming unglued, and they What do we have to show for all your waste of don’t know what to do. money?” Fitts: The thing that most concerns me when That was a politically safe, correct way of saying, I put together all the stories for cut and run is “You just stole $50 trillion. We have nothing to health freedom. The “Zika psyop,” has no ex- show for it. The country looks like a third world planation other than that elites need to lower life country in different places. We certainly don’t 32 expectancy to deal with the exploding retirement and the like. costs. The United States is not a party to that Hague After the election the state, local, and private treaty, but there will be some action from coun- pension funds and social security or all these tries like Venezuela that have been raped finan- things will need funding. Elites want the bal- cially. I think you’re going to see Brazil take part. anced budget amendment – they’re they’ve just The coup d’état against President Rousseff will stolen the $50 trillion that was necessary to keep lead to a whole new international action, but not retirement systems commitments. necessarily effective, but you’re going to see these Farrell: Yes. countries pointing out the flaws in the Western system. Fitts: It’s been Puerto Rico or Detroit. It’s been the outliers who have blown up first, but now Fitts: There is an article this morning in the we’re moving in on the things that are consid- Wall Street Journal about the falling revenues of “I would say we must ered to be financially dependable. Goldman Sachs in Asia. I think that probably punish the criminals reflects, not just a global slowdown, but also a – no more too big to Farrell: Right. The other part of your hypothesis real pushback against the Americans in the mar- fail, too big to jail. is that if you’re conservative, you don’t neces- ketplace. sarily want a balanced budget amendment; you Criminals must go to want to know where the money has gone. It’s what one of the Republican candidates said prison, and we know early on in the debates, that our friends no longer the likely top crimi- I would say we must punish the criminals – no respect us, and our enemies no longer fear us. I nal on the list. more too big to fail, too big to jail. Criminals must suspect that has contributed to falling revenues go to prison, and we know the likely top criminal for Goldman. on the list. Farrell: Right. They just don’t want to do busi- ” These people have to go to prison because we ness with us anymore, and we can’t blame them. can’t have a functioning economy without rule of law. This truism means no more privileged class. Fitts: I think this cut and run makes people look You can’t run an economy that way, particularly at the failure of the unipolar vision, the switch to a global one. This is the lesson that Mr. Global the multipolar world, and they think, “I’m ner- has yet to learn, and why elites are panicked. vous about this so I’m going to cut and run.” Fitts: The unipolar vision has failed. In the third One thing coming up at the beginning of Octo- quarter Brzezinski wrote an article declaring ber is that the Yuan will enter the SDR system. that fact, and how we had better get on with the Some of the fear porn folks are marketing this as multipolar world. I almost fell out of my chair, the world’s next crisis, which is not the case. It is, Joseph. however, clearly a signal of where we are going in the long run. Farrell: I did, too. This is a 180-degree reversal of what he’s been saying, and you notice that he Farrell: Right. I don’t think it’s a crisis. I think said it without any apologies for having messed it’s going to inject an element of stability into the everything up in the first place. system. The source of the instability that we’ve been dealing with since the first Bush administra- Another interesting detail is how Russians and tion is a group of people using wealth and power the RT have denied a privileged class for big and influence within the central banks, the IMF, bankers; these bankers have to be prosecuted. etc. I think the Chinese participation is going In other words, Russia is on to the game. I to inject balance back into the system, and it’s think there is going to be some sort of interna- going to inject some stability. tional push to make bankers accountable. So In China, it is not necessarily government debt look for the international court at The Hague but corporate debt that has ballooned and mush-
33 II. News Trends & Stories
roomed enormously. That’s one thing to watch ippine deep state. Again, I think this is a large very definitely as to how the Chinese government thing. is going to handle that. For the moment, I think it’s dead. I noticed in I really think that the days of Mr. Global are the Presidential debate that Trump pointed this drawing to a close – days of getting everything out about Hillary, “Are you for or against it?” his way and overthrowing governments and “Well, I’m against it,” she said. But, no, she’s arriving on jets and saying, “We came, we saw, not. The record is very clear. and he died,” and cackle and laugh. Things just can’t keep going on. I’m looking for at least some I think it’s dead. They may be thinking that stability from this Chinese participation in the getting Hillary into office will revive it. I don’t SDR. think so. I really don’t. It’s clearly an agreement to benefit American corporations, and I can’t see Fitts: When you listen to the G20 meetings, Indonesia, Malaysia, India, or even Australia or the folks are much more interested in creating China for that matter, going along. I just don’t growth than in controlling top-down. As the see it. economy slows down globally, the friction in- creases from the controls. You have expenses Fitts: Obama had indicated that he wanted to going up from all the centralization rules and pass it in a lame duck. So between the election complexity, and creating more friction. and the inauguration he would pass it, at which point it’s all on him and she doesn’t have to im- Somebody said to me the other day, “No growth plement it. except growing friction.” That friction is making the whole system unbearable for the people try- I still think they’re going to make a major push ing to create more growth. to do so. One other thing matters before we leave the mul- Farrell: They might, yes. tipolar world: the Transpacific Partnership and Fitts: Now Congress had said that they won’t the other trade agreements – the services agree- play, but we’ll see how many arms get twisted. TTP ment and the European agreement – what do Farrell: Exactly. you think is going to happen, Joseph? Fitts: Another thing – just to keep going through Farrell: I think they’re dead. I really do. As far as the summary s that investment in space will con- the European agreements are concerned, France tinue to grow, as you agreed, and, boy, have we and Germany have both signaled that they’re seen it. dead. I think they were well on their way before Brexit happened. Farrell: Yes. Regarding the Transpacific Agreement, what we Fitts I thought we were ahead of the curve, but have is a case of corporations trying to use copy- what has unfolded this year is explosive. right law to shut down free speech. They were Farrell: Yes, it is. It is expanding so fast now that just handed a huge defeat in courts in India. it’s hard to keep up with it. NASA is pushing I think the revolt is spreading there as well. The ahead with an outer space test of the EmDrive, Philippines are now courting Russia and China, which is interesting because four or five years ago and that story is big. Of course, the Philippines NASA and certain scientists said, “The EmDrive government is basically a puppet government – a is a hoax.” Now they’ve decided, “Well, no. satrapy, in effect – of the United States. There is something going on here, and now we need to test it in outer space.” Whatever they may do to President Duterte will not change the course for the Philippines. He is You’ve Musk saying that he wants to go to Mars. expressing the outlook and opinions of the Phil- The real problem now, Catherine, is that it’ that extended human stay in outer space gives 34 is osteoporosis. It atrophies muscles and bone Fitts: Brzezinski’s article indicates that our com- structure. The researchers must find a way to petitors have gotten closer on military technol- sustaining a human presence in deep space. ogy, and a few accomplishments in the advanced Well, the Russians already know the remedy is technology can flip the whole global model. He to create a strong electromagnetic field that re- describes things very calmly, but if the Chinese produces climate conditions on Earth so that you and the Russians get a leg up on new advanced don’t subject yourself to all of these health issues technology, the financial model can flip. If the in outer space. All of that is very interesting, that Chinese get dominance in the South China Sea, you would have these announcements coming they could flip the whole currency model. out of Russia, and then NASA saying, “We’re Farrell: Yes, and I think Brzezinski is asking testing the EmDrive.” “What are we getting for our money?” Well, There have also been stories of putting human we’re getting the F-35 fighter, which has so far beings into suspended animation for space travel, been a trillion-dollar boondoggle. It still doesn’t and waking them when they arrive. They’re work. We’re getting the USS Gerald Ford, the talking about all these things that they’ve known United States’ navy’s multibillion-dollar aircraft ““What are we get- for a long time and they’re just cluing us in. The carrier. It has electrical systems that don’t work. ting for our money?” technologies that they’re bringing online publicly We’re getting the F-22 Raptor that doesn’t work Well, we’re getting have existed all along, and they will take us into as advertised. the F-35 fighter, space. We’re spending money for things not working which has so far Fitts: The Russians are embarrassing them into well. The Russians have just demonstrated in been a trillion-dollar admitting that they have to have it? Syria and the Donald Cook incident, jamming boondoggle. It still capabilities that they have that can knock our put doesn’t work. Farrell: Oh, yes. This is precisely what I think is systems out at little cost to them. going on. Russia is playing an interesting game ” and uncanny game. They’re chess players, and In other words, the Russians, in particular, have when they make a statement in the press through invested money wisely in modernizing their mil- their state-controlled media they’re responding itary. What I’m suggesting is that all that money to deep, themes and memes in Western society. that has been awash in the black budget and in It’s uncanny how accurate they are. the hidden system of finance is no return on in- vestment. It’s not a wise return anymore. Now, recently President Putin has appointed a new advisor, Anton Vaino, whose academic spe- Fitts: Right. cialty is predictive programming analysis models. Farrell: It’s not boding well for the US military, There is a physics component in his thinking. and I think you see a pause and an attempt to The Russians, in other words, have their hands backtrack a bit in the Middle East and elsewhere. on some physics and analysis technology, and They realize that we might be picking a fight now the advisor reports directly to President with the wrong people. Putin. Yes, I think Brzezinski’s subtext is that even that I expect Russia to retell these kinds of stories part of the system is not giving us the return on often. It’s going to be interesting to watch. investment we need. Fitts: It’s almost like we’re converging here on Fitts: It’s funny. One of the themes that came Asimov’s The Foundation. up for me more in the 3rd quarter than in the Farrell: Exactly. I think the Russians know, and 2nd quarter is this question: “Are our minds our the West has had similar knowledge for a long own?” And how much are we being influenced time. The Russians are pushing it out into the by entrainment, propaganda, and hidden tech- open. nologies or techniques?
35 II. News Trends & Stories
I get more and more concerned. When I talk self-defeating. Mr. Global is killing his own with individuals and subscribers about the strug- macroeconomic picture. gles that they’re having with their family and Fitts: Right, killing all the life force. friends – in all sorts of issues, including manag- ing time and money – you hear more and more Farrell: Exactly. He is killing creativity. stories about people getting tricked into doing Fitts: You and I have talked a lot about produc- things counter to their interest. They behave tivity. One of the most infuriating things that against their own self-interest again and again. happened in the 3rd quarter was Alan Greenspan I’ve been in the Bay Area, and seen people ag- complaining that productivity growth was slow- gressive in ways wholly suicidal. It’s not rational. ing, which meant he couldn’t pay our retirement Anyway, I was very pleased to see the new web- obligations. site, www.BiggerThanSnowden.com where I thought, “Wait a minute, Alan! You just stole Nick Begich and Dr. John Hall and whistleblow- $50+ trillion dollars, and you’re telling me pro- ers of hidden technology get together and pull ductivity growth is the problem? Excuse me.” everything together. When you look at the cred- Farrell: Exactly. “Mind control tech- ibility and the quality of the people and all their nology is here. Mind work on the subject, you realize, “Whoa!” Fitts: You and I just did a recording on pro- manipulation by ductivity in the 2nd Quarter Wrap Up. I’m not Farrell: Mind control technology is here. Mind going to repeat all of that, but I strongly en- entrainment is a manipulation by entrainment is a largely unex- courage people to read that because the balance largely unexplored plored area, but another way to rig markets eco- budget amendment is about to slam into the area, but another nomically and financially destruction of productivity used to centralize the way to rig markets Fitts: Right. control of the economy. In the 3rd quarter the economically and Farrell: Mind manipulation influences people’s Department of Justice announced that it would financially. decision-making, their purchasing, and so on, not renew bureau prison contracts with private distorting the market. prison companies. The next morning their stocks ” were down by almost 50%, which is a reminder In other words, the technology is murderous . not to own companies dependent on highly un- It’s not giving analysts any ability to understand productive processes. At some point, when the where markets are going. I’m not seeing evidence debt growth model is over, they will be cutting that these technologies are used widely outside of something. Low productivity ‘somethings’ are the West. In other words, I don’t think that even the first to get cut. the communist Chinese government resorts to these technologies with its own population to the Another example was the committee of faculty extent we see in this country. It’s the same thing and students at Vanderbilt who announced new in Russia. sets of pronouns for sexually fluid people. I have members on my website who live in Rus- Farrell: Yes, I am so glad you included that be- sia, and some of them are expat Americans. They cause I want to go directly to it, moved to Russia, of all places! And they tell me Any time you hear language being tinkered with that things are different there. People are more as a political agenda, you’re dealing with Gnos- expressive, more intelligent, and more individual ticism. When I was professor teaching theology than people here. in the seminary, I did not teach Gnosticism as Fitts: When I was in Germany, Switzerland, and a set of systems. I taught Gnosticism as a set of Austria this summer, life was just humane. techniques to engineer the hollowing out and overthrow of institutions designed to protect and Farrell: I can believe it. It is. Ultimately this preserve culture. push of Mr. Global to centralize and control is Fitts: Wow! 36 Farrell: One of the key things in any gnostic transgender training by the end of 2017. Do you system is to tinker with language, signal your know what an enormous investment that is? subservience to the agenda. You signal your Farrell: It’s an investment in terms of time as raised consciousness by adopting the new, which well. is always an artificial language, designed, in turn, to break down common discourse, civilization, Fitts: What the Navy needs to do is make sure and culture. that it can outwit the Donald Cook situation. We are creating a Tower of Babel, so to speak, to Farrell: Exactly, this is militarily suicidal. You break down culture and break down discourse. don’t use the military for social engineering. The Ultimately the result is lost productivity. sad fact is that since before World War II, even before World War I, the US military has been Fitts: Right. used by progressives in this country as a social Farrell: If you think it’s trendy to be transgen- engineering test bed. der and to use this type of language, I’m more I don’t care if people are transgendered, but the concerned about language than whether people military is not the field for social engineering are transgender. I do not care less whether they agendas, especially if you are Mr. Global and are one thing or another, but language itself is a planning to confront Russia or perhaps even different matter. We use it to communicate, to fight a war with Russia. I can guarantee you that cement our contracts, to negotiate, and to create. people in the Russian army or navy or air force When you break down the language, you are get no sensitivity training; they get training in interfering at a very, very fundamental level. I tactics, operations, and military things. wholeheartedly urge people – especially at Van- Fitts: Right. derbilt – to stand up and say, “No.” Farrell: We just saw the results of American op- I even did a blog on my website, about the fact erational training in the US army in Germany. that when I started my PhD, I was offered a full We didn’t even place. We came behind Den- scholarship at a major American university – the mark and Poland. That’s not good. whole thing paid. But in order to do this, I was told that I would have to take a class in the use of Fitts: That’s not good. Another place where gender-inclusive language. I just said, “No.” productivity has come down is technology from the black budget, and black budget money pours That is one of the major reasons I went to Ox- into Silicon Valley and lowers the cost of capital. The folks in Silicon ford. I wanted a place where I had the freedom The folks in Silicon Valley don’t realize it, but “ to argue what I wanted in the diction and lan- Valley don’t realize theirs is arguably the most subsidized industry in it, but theirs is argu- guage that I chose, which is the standard diction the history of the world. Yet they are producing ably the most subsi- and language of ordinary English. things that do not increase productivity growth. dized industry in the Fitts: Good decision. In fact, they harm productivity because they improve surveillance capitalism and centralized history of the world. Farrell: Yes. This is something that people must Yet they are produc- understand. These changes are not harmless. control, contributing mightily to shadow work, ing things that do not Bolsheviks did this inside Russia with the Rus- negative return on investment, and the destruc- increase productivity sian language after they took over, and intro- tion of privacy. and I could go on and on. growth. duced a period of cultural shock and change that I’m beginning to see just a hint and a whiff of they were able to manipulate and control. This people getting frustrated. You saw the one big ” was part of their revolution. article from the editor of MIT Technology write, People need to be very, very cautious. “Dear Silicon Valley, forget flying cars. Give us US economic growth.” Fitts: We just saw the announcement that the U.S. Navy is requiring all personnel to go through People are starting to realize that much really 37 II. News Trends & Stories
clever stuff is not contributing; it’s draining. through high school. Now we hear talks about Farrell: It’s not a contribution, and it’s a drain, “lifetime learning accounts.” That’s the latest. and I will tell you that the automated cars busi- You just have to laugh! ness is just another way to control the popula- Fitts: Lifetime learning about you! tion. And the cars have not worked too well, Farrell Exactly. With all these euphemisms , with people dying because the automated car and they’re just not playing anymore because doesn’t know what a guardrail is. Elites want ev- everybody sees through them. They want to keep erybody driving automated cars so that they can you in school all of your life to update the assess- control people more readily. ment. As far as I’m concerned, the whole Com- Good luck with that! I don’t have a quarter of a mon Core individually adaptive standardized million dollars to spend on an automated car. computerized test is a loyalty test: Are you loyal Fitts: Having people try to run me off the road to the standard official narratives? several times during the litigation, do you think In other words, imagine your SAT question, I’m ever going to get into a driverless car? “Who killed President John Kennedy? Jack Farrell: No. Do I trust these people? No, not as Ruby, Lee Harvey Oswald…” Tests never get far as I can throw them, thank you very much. into deep analysis and discussion of an event. They reinforce an official narrative and control They are exactly right. They need to start giving the information. us something that contributes to human produc- tivity and not to the surveillance state. The sur- Fitts: At your heart, you are an Oxford scholar so veillance state is killing the economy in so many your approach is much nicer. I look at Common ways. Core, and it says to me, “Are you available for pedophilia, and where can I access your calendar Fitts: Right. I couldn’t agree more. to book you?” Last but not least, I do want to touch on one Farrell: Exactly! That puts it in a nutshell. What of the exciting things that happened in the last they’re doing, Catherine, is tracking you, and quarter – your book on Common Core. I was building up a profile of people. The other bot- quite eager to have it published because I was tom line is that Common Core – the assessment quite proud; I wrote the forward. I wanted to process itself, the tests, the questions – remain publish it. proprietary information. Any information given Farrell: Thank you for that, by the way. to the government by these corporations is what Fitts: If you ever doubt how dreadful Common they want you to learn, gutting real education. Core is, here is your proof! Joseph, you did a I don’t care what technocrats say. Now this great job of tearing it apart. technology in the classroom is producing a gen- Farrell: Yes, Common Core is bad as far as I’m eration of technology addicts with problems of “I look at Common concerned and as far as my coauthor was con- socialization, with being able to carry on a con- Core, and it says to cerned. Even though I wrote about 50% of the versation, and producing a generation of narcis- me, “Are you avail- book, the scaffolding, order of argument, and sism and psychopaths, who are stupid. They’re able for pedophilia, principal concepts come from my coauthor. He reinforcing stupidity, not education. and where can I ac- was the one who pointed out to me that Com- Fitts: There is a new article in the Wall Street cess your calendar mon Core through the assessment process was Journal that I posted in Top Picks this last week. to book you?” a vast expansion of the surveillance state. As I It will be on the list for the 3rd quarter News dug into this, I thought, “It’s a nightmare on Trends and Stories. Two very successful physi- ” steroids.” cians – one from Mass General and the other Common Core tracks you from kindergarten from Cambridge Hospital – said that patient healthcare records have destroyed patient health 38 and the relationship between the doctor and the responsible need to go to jail. patient, which I believe is true. I’m suggesting is that if Congress will not address Farrell: Absolutely. this scandal, I suspect that you’re going to see Fitts: But you’re seeing a pushback. various countries around the world increasingly band together to demand explanations from One of the stories I wanted to bring up in the some big banks. They may be able to boondog- economy is Economy and Financial Markets as gle the US Congress through control files, but I well as Geopolitics. I wanted to mention a little don’t think that they can succeed with the Krem- bit about Wells Fargo because I am fascinated. lin or Beijing. I genuinely want to warn people. We just finished bailing out a huge housing I suspect that you’re going to see some interna- bubble and now we have a new housing bubble tional pressure build on these banks. underway as some parties claim, and have Wells The problem, geopolitically is that attention will Fargo saying it created 1.5 million phony ac- show the US Government the corrupt front for counts and 500,000 phony credit authorizations. these interests that it is. Farrell: Gee whiz! “We just finished Fitts: Here is the interesting thing: We are trying bailing out a huge Fitts: But nobody on the Senate floor is saying, to keep the Germans from getting together with housing bubble and “Wait a minute. Did you create mortgages and the Russians. The Russians ban GMOs. The now we have a new auto loans for those same phony accounts?” Duma ban was a big event in the 3rd quarter. housing bubble un- Farrell: Exactly! At the same time that we’re squeezing the Ger- mans on Deutsche Bank and Volkswagen, and derway as some par- Fitts: We know the profit is not in creating an suddenly a German company comes in at a 44% ties claim, and have account, right? The money is in the loans. That premium, taking everybody out at Monsanto. Wells Fargo saying is where fraud has occurred, and there are lots And you wonder whether Russians forced us to it created 1.5 million of stories of fraud at all the big banks, including do that. The GMO thing is seriously, seriously phony accounts and Wells Fargo. Nobody is asking that question, stalled. 500,000 phony credit except for me. Farrell: It is seriously stalled. Even in Europe authorizations. I did a commentary called Unanswered Questions there is opposition within Germany and within ” about Wells Fargo and I pointed out that the Fed France and Hungary – those three countries now has – because of quantitative easing – pur- particularly – against GMOs. Like you, I’m won- chased $1.7 trillion of mortgage-backed securi- dering exactly why Bayer decided to do this. I’m ties. I want to know whether that $1.7 trillion also mystified that Bayer had so much cash on consists of phony mortgages! hand. Farrell: Absolutely. It is the same old pump and I’m wondering exactly the same thing: What is dump that ran prior to the bailouts. going on here? It’s going to be interesting to see Fitts: Right. I don’t think it ever stopped. how it plays out. I think that if you look at the Farrell: I’m agreeing with you. Elites are running United States and Germany, it appears that there pump and dump schemes and trying to prop is some sort of tug-of-war going on between things up, but a fiction like this lasts for only so these two countries regarding Germany and the long. The longer it continues, the more the dan- course it wants to take. ger because when the bubble bursts, the damage Fitts: Right. is all the greater. It needs to be addressed now. Farrell: I don’t expect Merkel’s government to I go back to what some Russians said recently, I last much longer, quite frankly. She is backped- think within the last couple of weeks. They said aling. that big banks and fraud they perpetrate need Fitts: Oh, she’s been delivered quite a blow in to be brought out into the light, and the people 39 II. News Trends & Stories
the recent elections. Maybe we should talk a little Now she is backpedaling as a result of election bit about that. defeat. Maybe her policy wasn’t really all that Farrell: The Christian Democratic Union is her good. This is too little too late, Angela. I think political party, and the other big one is the Social her government is in danger. I don’t think the Democrats. It’s important for people to remem- CDU will be returned to power, even in a coali- ber that Merkel was a protégé of the former tion government. Chancellor Helmut Kohl. Of course, this means What I’m looking to see happen in the next that she, like Kohl, has huge connections and major German national elections is I suspect the backing from the big German chemicals firms – SPD will take power in a coalition government, Bayer, BASF, and so on. Just think of IG Farben and the SPD will try to try to tighten these refu- when you think of Angela Merkel. gee policies and make immigration much more Fitts: Exactly. difficult. That’s my best guess. Farrell: She has been the lynch pin of the Eu- The other problem is that Germans can see that ropean refugee policy. Of course, it is hugely much of that policy is driven, not so much in unpopular in Europe – in the Netherlands and in Berlin but in Washington, and more impor- “They delivered tantly, in Silicon Valley. Angela Merkel in France and in Sweden and in Germany, provok- ing a backlash and formation of political parties Fitts: Right. Berlin a huge local that appear to want to defend their borders and election defeat Farrell: George Soros was behind much of this their culture. I put it in those terms, Catherine, dislocation. and there is your fascist connection. when these parties because there are two elements within these po- won the election. litical parties. If Merkel does somehow stay in power, her They delivered her a government will be weak, and she is going to be One element, which I think represents the ma- sound drubbing. much less the commander in chief of the Euro- jority, are just angry Germans who are looking pean Union than she has been. at all of the rapes and other things happening ” in their country and, the fact that the refugees I really expect the same thing in France. There are being given special privileges and advertise- are big rumblings in France. Holland’s govern- ments are being run on German TV for German ment is in trouble for the same reasons. He is women to adopt the hijab and make everybody now trying to front a candidate to take the wind feel welcome and multicultural. out of Marine Le Pen’s sails. I don’t think he can succeed. This website members in France are Fitts: Who is running that? telling me. Farrell: I am not sure, but I think it’s the Ger- Those two countries are fed up. Ultimately, what man government. There has been the inevitable this means is they are fed up with Washington. reaction from Germans, the birthplace of the That is the biggest news. Reformation. This is just not going to happen. They’re pushing back against this, and they de- Fitts: I think they are all fed up with destruction livered Angela Merkel in Berlin a huge local elec- of productivity and wealth. tion defeat when these parties won the election. Farrell: Exactly, and you can’t blame them. This They delivered her a sound drubbing. damage is coming out of Mr. Global, but for Within these parties are fringe fascist elements Europeans, that means Washington. To a certain that worry me. This movement in Europe against extent, they are correct. the refugees and to defend European and na- I think we are looking at the long-range disso- tional culture, we see in France with Marine Le lution of NATO. I’ve pointed this out in our Pen and we see in the Netherlands with Geert last talk. Rheinmetall and Nexter, are huge Wilders. This pushback isn’t going to go away German and French armament firms that re- until she goes away and the policies change. cently merged. I believe they’ve merged is to 40 standardize military equipment, to create their Today when I looked at CNN and the major trans-European military under Franco-German press, it was, “Oh, Clinton really won.” leadership, which means the end of NATO. This Wait a minute. That’s not what any of the polls way European sidesteps and bypasses NATO, last night showed, so it was very strange. and bypasses Washington and Mr. Global. Farrell: Well, they are living in make believe – Fitts: One other thing – Let’s come to the elec- the mainstream media. I don’t see or sense all tion because we are going to publish this in the that much support for Hillary other than from first two weeks of October, and the election is the oligarchs who view Trump as such a wild- November 8th. card. But I don’t think that means that they are I saw a new survey of global investors, and it’s a enthusiastic for Hillary. poll of their top 10 - 20 risk issues that concern Fitts: Right. them. Their number one risk is the US election. I think it’s what Peggy Noonan called, “We have Farrell: But, I think there is real danger that if a choice between a criminal and a crazy person.” they sense a Trump victory, that they might pull some sort of fast one. The more basic problem is The criminal understands elite policies of the geopolitics and international markets. If Hillary syndicate whereas the other candidate does not. gets in, the Russians have already signaled, as far We all know that the first candidate, if need be, as Russia is concerned, they will hunker down will start World War III with Russia to protect and brace themselves for a war. syndicate interests. I don’t think most people are completely aware of how bizarre the syndicate is. Fitts: Right. Either way, I think that their concern is that we Farrell: That is a very real possibility, and I can are coming into unpredictable change that we tell you, that if that happens I do not think that don’t understand. It may just be grief that they the United States would win. If we managed to are starting to realize the party is over, and we’re avoid nuclear weapons I don’t see Europe going not going to keep centralizing, because it means along with us. I just do not foresee support from destroying the living systems and the real wealth Germany. We would need the support of the on the planet. two European powers, and I don’t see the sup- port from Germany, or France. “If Hillary gets in, The one thing that I can say about this election, the Russians have I think we would be isolating ourselves much other than being Monica Lewinsky II, we have already signaled, more than we are now. And we would have to a choice between the criminal syndicate and as far as Russia is forget Japan too. change. Investors are concerned about change. I concerned, they will would argue that they should be concerned about Fitts: Right. hunker down and the real fundamentals.. Farrell: I really don’t see that. We’re trying to brace themselves for What do you think is going to happen? stabilize the Pacific, and go to war with Russia. a war. Farrell: In the election, I honestly don’t know. Neither Australia nor New Zealand nor the Phil- I still think people think Trump won the debate ippines nor Indonesia would side with us. ” overwhelmingly – which shocks me – people The neocon faction of the American deep state think that Trump won, and sometimes by very might want war, but it cannot coerce all our al- wide margins. lies into going along. Fitts: Last night I went to look at a website that The alternative is Trump. I think that he might ranked 20 polls, and I went through all of them. actually win. If that happens, geopolitically I Trump had won anywhere from a little to a large think you’re looking at a more stable world. margin, even on websites that I would consider I really do. I don’t think that he is interested Democrat. in confrontations with Russia because he’s a cost-benefit analysis type of person, and he is not 41 II. News Trends & Stories
going to see any benefit for the cost of a war with haven’t awakened to realize that is. The political Russia in any bottom line. left is both the Democrats and the Republicans. I think that if there is a Trump victory, you are Our one-party system in this country has a party going to see a change – as he has indicated. You of the hard left and the party of the soft left. We would see a change in Russo-American relations, don’t have a genuine party of the right or a con- and he will deal with Islamic terrorism in a way servative party. that the neocons don’t want. I think Trump is What scares them about Trump is that he has cagey enough to realize that our alliance system is remained the Robert Taft wing of the Republi- in tatters, and the relationship has to be repaired. can Party, and they have no control over it. That It’s anybody’s guess. Let me put it this way: I scares them. They are facing an opposition party think Peggy Noonan is right. We have a choice for the first time in a very, very long time, and between a criminal and somebody whom we moreover, a party that has much more direct don’t know. But between the two, I view Hillary popular appeal than anything I’ve seen in sup- as the much more dangerous candidate. She is an port for Hillary. inveterate liar, she is a criminal, she has no real It’s really not just a referendum on nationalism sense of the fine balance of things, and she is just versus globalism; it’s also a referendum on the in it to continue her racketeering operation. I elites versus the people. view her and that whole crowd as the much more Fitts: Sovereignty? “We have a choice be- dangerous candidate – not just for foreign policy, tween a criminal and but also for domestic politics. Farrell: Exactly. somebody whom we We’ll have the past 15-16 years with her, and Fitts: That’s it for Economy and Financial Mar- don’t know. But be- the infrastructure in this country will continue kets as well as Geopolitics. Before we close part tween the two, I view to decline and crumble. Trust in the economic One, do you have any thoughts of summary for Hillary as the much system will hit absolute bottom. As far as pro- the 3rd quarter? If we were going to summarize more dangerous ductivity, who wants to produce under a system what the 3rd quarter meant to you, what would candidate. She is an like that? you say? inveterate liar, she is Fitts: Let me pose this to you: The CDC came Farrell: Well, my one word is uncertainty. Look- a criminal... and she out with a new rule making. They’re inviting ing at what is going on in this country, particu- is just in it to con- comments, and the comments close on October larly with the election, I try to imagine myself as tinue her racketeer- 18th. It looks like the CDC wants to get it up by a person with money to invest, what would I do ing operation. the inauguration. It will allow the CDC to say now. I would be hedging my bets as much as I it worries that you might have been exposed to could. I would have my bailout bag and my bail- ” a virus, and next to round you up and put you out airplane ticket and everything ready to go, in a camp and inject God-knows-what into your but you can’t have an economy functioning in body. that sort of doubt. Farrell: Yes. I’m very uncertain. To put it bluntly, I’m uncer- tain even though I don’t have any kind of money Fitts: You are basically talking about Auschwitz to invest. I’m vaguely uncertain even as to my here? own little business. What am I going to do in Farrell: Yes, exactly. I don’t put it past these terms of a Hillary presidency? I know that she is people. I don’t. going to come after the alternative media in this Fitts: That is a very sobering piece of informa- country in a major way and try to shut it down tion. because it’s has opposed her. Farrell: It indicates that the United States has In other words, I’m looking at having to self-cen- become a police state. It is a de jure if people sor just to be able to maintain an income, and
42 that is a restriction on free speech. Therefore, in 1,000 different directions, and those conver- that is a restriction on creativity. Therefore, that sations are a part of human productivity because is a restriction on productivity – the human pro- when you start listening to other people’s take on ductivity that we talked about the last time. things, you start to realize, “Oh, I hadn’t thought By the same token, if Trump gets in, I still don’t of that,” and you start pooling the ideas together. know what to do because I don’t know exactly This is when great things happen. how he is going to be able to influence this behe- I look forward to every conference and all of moth of an out-of-control government. these get-togethers like we’re having in Tulsa. I Fitts: Trump, I cannot tell you about, but I’ve love those things because I love to listen to peo- been dealing with the Clintons for 18 years, so ple’s ideas and bounce things around. I can give you a briefing. Maybe we should do a Fitts: Right. I particularly like it when I’m not Solari Report on how to deal with the Clintons. the designated driver. Farrell: Listen, that would be good because I Farrell: Me too. don’t think many of the foreign listeners, other Fitts: So, ladies and gentlemen, you can learn than perhaps the British, have a real clue as to more on our website. October 15th is dinner how deep their corruption really is, going all from 7-11pm in Tulsa, and I think you’re going the way back to their Arkansas years. The whole to really enjoy it if you can make it. business with Mena and Barry Seal and Terry Reed and the deep connection of the Bushs and Joseph, that is it for Part One. Thank you very the Clintons and most people are unaware. much, and I look forward to Part Two the following week. Maybe a review would be good, and I’m very serious. Farrell: Thank you for having me back. Fitts: I know, but sometimes on the Round Up – our team gets together for the Round Up twice 3RD QUARTER WRAP UP a week – I’ll say, “Okay, on this story are we will- PART TWO ing to spend $2,000 on hacking costs to do this? Fitts: Ladies and gentlemen, welcome to The Are we willing to do $5,000? What is our price Solari Report. This is the 3rd Quarter Wrap Up: point?” News Trends and Stories. We had a great con- We have to price it; it’s a practical issue. Some versation with Dr. Farrell last week on part one, stories are so good that I say, “I don’t care if it’s which was Economy and Financial Markets and going to cost $5,000. I’m going to do it.” Geopolitics. This is part two, and we’re to talk Farrell: Yes. Science and Technology. Fitts: It’s all part of the financial equation. If you haven’t listened to that earlier conversa- tion, let me say it was good. It had a lot of, what There are two things that I would do. I agree Joseph would call “high-octane speculation.” I with you that uncertainty is significant and risk encourage you to go back and listen. We will is rising. The two things that I always do is pray have the transcripts on the Solari website. because I believe that if I’m where the Big Guy wants me, I’ll be fine. The other thing is: I’m We have a web presentation with links to all going to be in Tulsa on October 15th. The one the trends and stories. We encourage you to thing that I can tell you without any uncertainty access that web presentation, and we’ll have the is that you and I are going to have a blast. full transcript in the pdf and hard copy, so stay tuned. Farrell: I agree. Whenever we get together with these groups we always have these wonderful, un- Well, Dr. Joseph Farrell, welcome back to The scripted conversations. I’m serious! They go off Solari Report.
43 II. News Trends & Stories
Farrell: Thank you for having me back, Cather- identify all the publicly traded stocks of compa- ine. nies active in space. I took my first culling and Fitts: We are going to talk about Science and did a back test. Technology as well as the Big Questions tonight, I was doing a culling of screen force – Solari- but beforehand I just want to point out that we model companies, which are companies that have are having a dinner in Tulsa, Oklahoma, on Sat- a positive total economic return. I did a quick urday. I’m really looking forward to it, and it’s back test, and they perform at the market index, not too late to get tickets. in alignment with the S&P. Farrell: I am too. Like I said last week, the con- Then I did the space companies, and they were versations at these get-togethers are really stim- 200%. They were double the S&P, and I see no ulating. Everybody chips in ideas and points of more significant proof. view. A synthesis and an analysis emerge greater Obviously, the figure includes many defense than anyone could come up with all by himself. companies. It combines defense and space, but I always look forward to them. That’s really why the message delivered to me is that this invest- I like going to conferences and speaking – not for ment is serious. the conference itself so much, but for the con- versations off to the side. Yes, I’m really looking As you and I described in part one, Lockheed did forward to it. a cut and run on its IT division with the Depart- ment of Defense. That means that Lockheed is Fitts: If you look at who has signed up to this keeping space investment and letting government point, it’s some of the highest IQs in the net- contracts go. work. Farrell: Yes, and that shift is huge. Conventional Farrell: How many people are there up to now? financial analysis cannot account for all this Fitts: Well, we have room for only 40. That is money. We speculate that it’s going into space my concern. As soon as we fill up we’ll put a investment. The Lockheed story confirms our notice out, but that’s a good size. It means that hypothesis that to prop up hidden finances, com- we really can have intimate conversations. I’m panies have collateralized space. The speculation looking forward. certainly predicts how these companies get collat- Let’s just dive in: Science and Technology. As I eral and starts new space projects. So I view the the story as big. SolariBY CATHERINE AUSTIN FITTS / 2015 ANNUALR WRAPepo UP VOLUME 2016r / NUMBERt ONE said in our summary last week and in our Annual Global Investment Takes Off Wrap Up, Space, Here We Come, space invest- Fitts: I have to tell you how grateful I am to you SPACE: ment will grow. I remember thinking when I re- for this insight. I remember how in 2012 I went HERE WE GO! corded before with you, “Oh, we’re so far ahead to see you after leaving California, and I was of the curve.” And wow! Look at the explosive just frustrated trying to understand the financial developments this year. The growth in Asia is community, which kept refusing to look at the vast. Whether it’s G7 or the G20 investment, space aspect of the economy. new activity in space is growing. Something didn’t make sense. Some finance Farrell: Yes, by leaps and bounds. It’s to the writers were saying, “The world is going to point, that we can barely keep up with it. It collapse; the world is going to end.” I was say- started a few years ago. Now something is new ing, “No, that is not happening. We’re shifting every week. The trickle is a running stream at money, and it’s being reinvested. Something is this point, always increasing. happening. I have to integrate this hidden sys- Fitts: Right. It’s noticeable because I’ve been tem. I have to integrate space. I don’t know how working on a screen of space-based companies, to do it.” and updating our worldwide Annual Wrap Up Many people who cover that topic are out in list of space companies. We’ve been culling to la-la land. You’re not out in la-la land, and Rich- 44 ard Dolan isn’t out in la-la land. There are some heartedly. good people, but to connect it to the economy, Fitts: Right. If there is anything supporting the I needed somebody like you who says you’re not slow burn, it’s protecting that space program. an economist and you say you’re not a financial person, but you are very good at math. Farrell: Absolutely. Just look at the collateraliza- tion model that I’ve been proposing. If indeed If Trump says that he is a numbers guy, in your they made a deal with the major corporations own way you are too, even though I know you and primary banks back in the late 1940s to cre- don’t think of yourself as that kind of person. ate a hidden system of finance and to create tech- But you can make sense of the economy, and nologies to get us into space, then bankers must you’re very good at making sure that the asset have wanted some collateral. The model has al- side and the liability side match up. You keep the ways been the Venetian bankers: “We’ll give you balance sheet straight, and you see where disin- a loan to create your ships to go buy spices, but formation skews the balance sheet. the collateral is going to be our stake in whatever Anyway, you were the person who really helped you bring back.” me integrate space with traditional analysis in This model now reappears with space. You see the financial markets, and I just feel like that not only the commercial companies starting up has made an enormous contribution, not just to in a major way – Elon Musk and Richard Bran- what I do at The Solari Report, but also to my son and Robert Bigelow etc. And you can see sanity. other countries wanting to get into space: China Farrell: Well, thank you. I had to do it to keep in particular, but also India, Germany, France, my own sanity because the financial analysis Japan, and Brazil. They sense that the economic from so many people just does not make sense. game is moving there now. Fitts: Right. Fitts: Right. Farrell: I’ve said many times, “I remember my Farrell: I noticed in your outline that you have thinking all the way back to when Nixon took us the headline, Chinese Scientists Study Viability “If there is anything off Bretton Woods, that there was to be a finan- of Manned Radar Station on the Moon. That is supporting the slow cial collapse any day now.” We’ve been hearing very important because people do not realize burn, it’s protecting this for so long that I thought, “This expectation that existing international treaties bar all nations that space pro- is like a rapture prediction. There is something from having any permanent base, military or gram. wrong, some factor that we’re not considering.” otherwise, on the moon, nor to profit from one. The one definite factor is that so much money is However, treaties allow you to have permanent ” not accounted for, that it must be going some- facilities there for research. Research, as far as I where. The circuit isn’t confined to investment can recall, is left deliberately undefined. So you on Earth. It’s going somewhere else. can claim to do research in just about anything, and under the guise of “research” you can harvest Fitts: Right. Whatever that place is, it’s big. You the colossal wealth of the moon, which is worth cannot understand the economy without looking not trillions, but quadrillions of dollars. at it. And the Chinese can say, “We want to build a Farrell: I agree. radar station,” but they are really saying “We are Fitts: One of the reasons to ask whether or not building a research base.” we will have a controlled demolition of the US Fitts: Right. politics and economy next year is clearly that Mr. Global does not want chaos messing up his space Farrell: In other words, we can see quadrillions program. of dollars in outer space and see quadrillions worth of derivatives. You put together the assets Farrell: No, I don’t think so. I agree whole- and liabilities and you come up with profits. So, 45 II. News Trends & Stories
something is going on in space. sons, I want to really put space on people’s radar. You have pointed out how the first commercial When it comes to health freedom, it involves a interplanetary mining mission is getting ready. whole series of areas, which can financially wipe It’s prototyping to go into space and to get some- out a family. We can see whether a heavy sched- thing valuable and useful to bring it back. The ule of vaccinations makes your kid get autism blocking fact, however, is that commercialization and you’re out $5 million present value, not even of asteroid mining, mining the moon, and so including the destruction of the human and in- on cannot be viable with chemical rockets. That tellectual capital in the family. technology is too costly and risky. Regarding EMF sensitivity, Jason Bawden-Smith Again we’re also looking at a bit of theatre here, has a new book coming out called In the Dark. because the companies are still presenting the We’re going to publish it in early November. It’s public face of reusable rockets, while we are told about EMF radiation and what it’s doing to peo- that NASA is testing this EmDrive thruster and ple. We’ve seen many reporters really censored has faster-than-speed-of-light warped drive stud- about EMF. With 5G coming [5th-generation ies underway. DARPA wants us to be warp-ca- mobile networks] we’re concerned about mind pable. But that’s Star Trek, folks. They want control and the like. warp-capability in 100 years. That’s the real This is an area where, if you look at our mem- game. bers’ or subscribers’ time and money, they can Jason Bawden- “ In other words, space investment calls for in- lose a lot it here. I’m really concerned about Smith has a new vestment in exotic technologies. Lockheed, as making sure that people know how to protect book coming out you pointed out, is going after those space assets. themselves. Step one is just bringing transpar- called In the Dark. There are such technologies in the wings, I’m ency. It’s about EMF ra- quite certain. They are secret because they are Talk to us about health freedom. What are the diation and what proprietary. things that most concern you? What do you it’s doing to people. Fitts: Even though government money financed think we need our audience to understand and With 5G coming... them! prepare for? we’re concerned Farrell: Exactly. Even though government Farrell: Well, I agree with you that forced vac- about mind control money financed them, they are proprietary tech- cination is one issue. Quite bluntly, people are and the like. nologies. The hidden story behind the merger of just going to have to stand up and say, “No,” and ” Rheinmetall and Nexter in France is that these insist that there be an open and genuinely free private companies in Europe would have the discussion of the health risks. Scientific papers technological capability of going out into space document and demonstrate these connections and getting goods, and defending their space. between heavy schedules of vaccines that they We need to remember that talk about space com- give little infants; they are out there. You have to mercialization means ultimately the militariza- be blind not to see them. tion of space. We have to defend it. If I were a parent expecting a child, or had a Fitts: Right. child recently, I would be thinking in terms of practical financial security, of being cautious Let’s turn from space to health freedom because about falling for all these vaccine scares. We’ve our members and subscribers must understand just got to get out of this mentality. where the economy will grow, where investments will grow, and where opportunities will occur. If There is a place for vaccines; I do not doubt it. you have a child or grandchild going to school, The problem is that the vaccines now are so pol- what curriculum do you want the child to have luted with things not there to promote health; and what opportunities? For very practical rea- they’re there to make you sick and dependent on big pharma. So caution is number one. I would 46 be very, very cautious about vaccination. Advertising is certainly the one that we know Number two, I think that people must recognize most. I’ve cut my cable. I pay for it just to get electromagnetic entrainment technologies really internet, but I do not hook it up. I’m not sitting exist. Years and year ago Lieutenant Colonel and watching five minutes of program and 10 Tom Bearden – and he’s been riding this band- minutes of commercial. I have rejected addictive wagon for so long that I think people need to technologies. start paying attention to him – said that it was Fitts: Right. possible to use your computer and your televi- Farrell: We should cut down the time and edu- sion to send signals through the electrical grid of cation costs too. I just put a blog on my website your home or anywhere else to induce illnesses, about the health costs of introducing toddlers to even heart attacks. tablet-like technology at ages three or four. In These technologies, incidentally, were researched Britain, teachers are complaining about tablet heavily in the old Soviet Union. It’s only after its addiction. They deal with students who cannot collapse that many of these things have come to function socially. They cannot carry on a conver- light. They are real. People must see we’re not sation because they do not play with other chil- talking science fiction. No, we are not. dren and do not read stories with their mothers You can go online and research all the patents for or dads. technologies to do an EEG of the brain remotely; Practical things affect not only our health, but they don’t even have to attach electrodes. They also our social health and our educational health. can map your mind remotely. People must realize that technology isn’t the It’s to the point now they have translators that panacea that some people may say it is; it needs can read the conversation in your mind remotely. limitation. “I just put a blog on They can use microwaves to project voices into Fitts: When 5G comes out, our ability with vir- my website about your head using a basic technology known for tual reality and holograms and everything else the health costs of almost a century now, called a “beat frequency,” will be amazing. I put an example up at www. introducing toddlers and can entrain your mind. MagicLeap.com, which has on its homepage to tablet-like tech- There are so many ways to do this, and the phys- a beautiful whale jumping out of a school gym nology at ages three floor and slapping down with the water bursting ics is basic. The ways to entrain exist, and people or four. need to understand. out. It’s so real, Joseph, that it takes your breath away. But you realize, “Oh! It’s make believe!” Personally, I can tell you that I took the con- scious decision about a year and a half ago, when When they say that holograms flew into the ” I made another move, to cut down my time on- World Trade Center on 9/11, it’s possible. line. My daily routine was to get up, go through Farrell: Yes, it gives pause. emails of the day, and do other things online, Fitts: I think that 5G has the potential to take spending hours every day online. addictions to a whole new level. Now I’ve changed my routine. I let the emails Farrell: Oh, yes. pile up. I go through them one day a week now. I have reduced my time online time dramatically. Fitts: Parents and grandparents really need to I have other computer systems offline on which think about addiction. I do my writing. I’ve limited internet time as Farrell: They need to think, but movies already much as I can, so I have more energy now, and exist about virtual reality and its addicts. When greater clarity of thought. I cut myself off from daily internet I discovered People need to start taking the practical steps myself in withdrawal for the first week – quite to reduce these influences on their minds – the literally. None of us needs internet 24/7. We hard influences and the soft influences as well. need to pick up some books and get information 47 II. News Trends & Stories
that way. Farrell: Oh, I’ve heard about this in various lo- Fitts: I want to talk about the Zika because I’ve calities all over this country. In either Columbia been trying to figure it out. The latest informa- or Venezuela – one of the two; I forget which – tion from Brazil is that Zika has not caused birth the government has prohibited home gardening. defects. In other words, we really don’t have a This is clearly a ploy to get control of the food Zika problem; what we’ve got is a Zika PsyOp population and take it out of the hands of the proposing we spend billions of dollars spraying local farmer or somebody growing tomatoes in with chemicals that we know will kill bees – his backyard. and harm humans – and will justify letting out Zika is clearly a ploy, and what really intrigued GMO-engineered or genetically modified engi- me about it was the pattern of swine flu, bird neered mosquitoes. For all I know, it may be just flu, SARS, and the whole tapestry that they roll a way to enforce vaccination. out every year. But Zika was different because Farrell: Yes. now saboteurs have gotten clever; they made it a women’s issue as well. Fitts: What do you think is going on here? It’s clear what they’re up to. Folks, if you are Farrell: I think it’s a PsyOp, another excuse for hearing opinions on the mainstream media, them to spray people, and to release all more think of it as a story coming from the old Soviet unpleasant things. Of course, it has already killed Pravda. “...we really don’t much of the bee population in Florida, where have a Zika problem; people and bees are being spraying. Fitts: Right. what we’ve got is a For the past decade we have watched these health Farrell: Unfortunately, we really must start Zika PsyOp propos- scares. Do you remember SARS, and bird flu thinking this way. We might as well be dealing ing we spend billions and swine flu? This is going to be the next big with Dr. Goebbels and Third Reich propaganda. of dollars spraying epidemic, and you had better go get your flu shot We must question all these stories. with chemicals that now. We must develop the habit of mind that if we we know will kill Fitts: Here is what is interesting: I don’t know if hear a story on the mainstream news, we ask – bees – and harm you realize that we had Dr. Dady Chery on The “Is it true?” humans – and will Solari Report, who has a fabulous book on events Fitts: Do you know what I used to do in Wash- justify letting out in Haiti. She describes a food self-sufficient pop- ington? Whenever I saw a name on the bill, I GMO-engineered or ulation, with pigs as their primary protein staple. would invert it to figure out what the bill really genetically modified Swine flu was used as an excuse to eradicate the promoted. So, if it was called, “Make communi- engineered mosqui- entire pig population. Haiti went from food ties wonderful,” it was really, “Harvest commu- toes. self-sufficiency to dangerous dependence on im- nities and take control of them.” ported food, and farmers lost their livelihood and Farrell: Exactly. Start inverting and you can tell ” had to go work in these “free trade zones” mak- what saboteurs are up to. Our habitual, instinc- ing money for the Clinton created interests tive, and intuitive first question should be: “Is it It’s frightening because you’re talking about real true?” control and asserting it through a back door of We have to make this question a habit. We have food system. to question every single story when it first ap- Farrell: They have done similar things in various pears. Is it true? If it is not, then what might it localities in this country. It can be against the law mean? We have to start thinking, like it or not, to have a home garden. This is the point where because we no longer have any real media. you just have to stand up and say, “No. Take a I find it very interesting that the Washington hike. It’s my property.” Post has recently said, “We can’t refer to our- Fitts: Where is that? selves as media anymore.” Well, if that doesn’t
48 say it all, what does? Apparently, Dr. Goebbels your pipe organ; you’re going to invite the sacred has his share of stock in the Washington Post. back into our world. Anyway, we just have to start thinking in terms Farrell: Absolutely. It’s the oldest keyboard of particularly the mainstream media being a instrument, preceding the harpsichord and the propaganda organ, and is it true? It’s the same clavichord by hundreds of years. It’s the oldest thing, quite frankly, for the alternative media. Is keyboard instrument, and keyboard instruments it true? – in turn – generated our modern Western tonal Fitts: Right. I find problems across the board. system of music. Farrell: Absolutely. I do, too. It is intimately bound in a deep way with our culture. Fitts: I don’t participate with social media except for Twitter, and if anything is a populist tool, Fitts: I don’t know if I told you this, but one of it’s Twitter. But the funniest tweet of the quarter my great allies was saying, “Why are you helping was the story announcing that NIH had ap- Joseph get an organ?” proved crossbreeding human DNA with animal I said, “Because I want to support his writing.” DNA. Somebody sent out a tweet saying, “Will He said, “What does an organ have to do with somebody just please nuke us now?” his writing?” Farrell: A possibility may occur – that our cous- I said, “Because Joseph writes these incredible ins out there somewhere may be looking at this pieces, but it takes his life force out of him. He earthly disaster and thinking, “It’s time we go needs a way to build it back; that’s the pipe The funniest tweet down there again and put a stop to all of this.” organ.” “ Fitts: Right. This brought on the flood the last of the quarter was Farrell: That is true, very true. I have missed the story announc- time. playing for many years. ing that NIH had Farrell: That is exactly what I’m thinking, too. People always ask me, “Why is it that you con- approved cross- To a certain extent, the power elites after World nect dots so well? I have said consistently that it War II would have known those speculations. In breeding human is because I grew up playing the organ and learn- DNA with animal my opinion, the elites would probably have in- ing a kind of multi-track music.” vestigated them and figured out, “If we go down DNA. Somebody sent this path, we had better be prepared for a poten- The organ is a multitasking instrument; it’s not out a tweet saying, tial intervention. If we’re going to prepare for something you want to try to learn if you dislike “Will somebody that, we had better be able to hold our own.” multitasking. It teaches you to recognize a pat- just please nuke us tern in different contexts and to recognize how now?” In other words, I’m suggesting that the elites the pattern changes. have planned even for that eventuality, whether or not successfully. We must see everything now Fitts: If you observe the footboard and the key- ” with a skeptic’s eye. We must. board and the whole thing, it’s an ecosystem fractal instrument. This is why I keep saying that we must own the culture. Owning the culture means, not only Farrell: Yes it is. Precisely. knowing that aspect of the culture that you want Fitts: Cyber insecurity gets worse and worse. to preserve and hand down, but it’s a component We’re betting the ranch on reengineering every- of our culture. Our Judeo-Christian- Enlighten- thing with systems, and every quarter the systems ment-Humanist heritage and culture place the get more insecure. Warfare is automating the individual as sovereign over his own mind. So, physical zone and then moving online with a we must be critical of everything we meet in the passion. Do you have any thoughts on cyber in- information sphere. security other than the fact that it is rising? Fitts: Right. That is one reason I want to see Farrell: Oh, yes. Absolutely I do. I was stunned 49 II. News Trends & Stories
when the debate host for the Trump-Clinton blamed were Russians. Can that be true when no debate last Monday raised the question of cyber evidence shows that Russians were behind it. security. Fitts: The Russians killed Bernie Sanders! Fitts: Lester Holt. Farrell: Right, the Russians killed Bernie Sand- Farrell: Right. Lester raised the question of cyber ers. The Russians are helping Donald Trump. security. I’ve heard all these complaints that, It’s always the Russians. “Oh, he was attacking Trump.” At the time, I thought, “Would the Russians be No. I think what he was doing was attacking that stupid, first of all to get caught, and, second Hillary with her email scandal with a subtle slap of all, to risk appearing like they were trying to in the face. I listened to both candidates, and interfere in the internal politics of an American neither really seemed to understand, as if neither election in a way so direct?” had a clue. Fitts: Here is what I have found. When I put I just blogged about this. I have blogs coming that story up that I thought was going to cost up this week on the whole cyber security issue me $5,000, the hackings come from 30 to 50 because there have been Pentagon and NSA ad- different countries. It’s clear to me that the chief visors – William Binney being one, but there are hacker or hackers are in the United States. My many others coming out – talking about massive bet is it’s major media, with hackers all around cyber-attacks on the internet, like a military the world. operation reconnaissance exercise. They are re- It is very interesting because apparently Clinton connoitering the strong points and weak points said “Russians”; she didn’t say “Russia.” Trump on the whole internet. This is the pattern that didn’t pick up on the difference, but I’ve dealt analysts are seeing. with a lot of hacks coming from Russia, which I’m thinking, “Okay, if that is the case, that may just be bouncing through systems, or they means that somebody is trying to figure out how, could be hackers who are hired, and God knows either to take the whole thing down in a cyber- who is writing their checks. I always want to attack, or to strike a blow and take it over in a know, not who pulled the trigger, but who paid cyber-attack.” Either way, it doesn’t look good. for the bullet. But the most interesting thing is how analysts are Farrell: Right. When you’re hacking, you cover not too sure. A lot could be coming from China, your tracks by using a multitude of IP addresses and I have no doubt that it is. Some are saying and other things. Just because you find IP ad- that it is coming from Russia, and no doubt dresses in Russia doesn’t mean that the Russians some Russians are busy mapping the internet are behind it all. and everybody else. They think it’s coming from Fitts: Exactly. China, and they think it’s coming from Russia, but they’re not sure. Farrell: The thing that amazes me with cyber security we now have the banks playing around. I’m thinking, “Well, it could be an entirely You’ve put this in the topics for discussion so I different group or groups doing the reconnais- may as well raise it now. You have the central sance.” banks playing around with their own version of Fitts: What I’m thinking is treaty compliance. bitcoin and blockchain to move us into a digital Farrell: Exactly. I think that cyber security is a currency. major issue because we have seen so many hacks On the other hand, you have someone visibly recently. There is the business with the hack showing us that he can hack into the Federal Re- of the Democratic National “Soviet” – pardon serve, into Sony, into the Democratic National me – “Committee.” Of course, the first people Committee, and probably into the Republican
50 National Committee. regional and local centers. Time will tell. In other words, think twice before you join this Fitts: Economy – is it open or closed? You and I rush to the cashless society. You could be hacked have talked a lot about who owns the debt and, overnight and lose everything. Don’t buy this is it other humans, or is there somebody else – central banking meme of more secure systems. other civilizations – owning the debt? On top of this, we’ve seen something else hap- I published my unanswered questions about pen. It is space related as well: China launched Wells Fargo and started asking whether Wells the world’s first quantum communications satel- Fargo is also creating mortgages on those ac- lite. Well, what is quantum communications? counts that the Fed is buying. Suddenly – voila! Essentially, you’re using the phenomenon of An article comes out saying, “Former Wall Street entanglement to encrypt information. If you do banker suggests global debt may not be owned not have the key, you cannot crack a communi- by humans,” which story spreads widely. cation from point A to point B. So, the Chinese Farrell: I saw it! are taking first steps of a secure system of inter- “Think twice before national financial clearing. Fitts: I interpret the story to mean the elites you join this rush to don’t want me asking questions about Wells the cashless society. Meanwhile, we’ve seen articles recently about the Fargo and mortgages before the election. insecurity of SWIFT – the big financial clearing- You could be hacked house in Brussels. What amazes me is how the Farrell: Exactly. overnight and lose pattern of hacks suggests that someone is trying Fitts: But here is the funny thing: I thought, everything. to map the internet – for whatever purpose – and “You’re trying to make me out to be crazy. Not a that same someone wants to show people that problem. I’ll take it because your numbers don’t ” the entire cyber system is insecure. add up and mine do.” In addition to mapping the Internet, I think that Farrell: Exactly. someone is trying to show that this system has Fitts: I’m prepared to have this conversation so many holes. Someone is waging a PsyOp and with people who really want to know how a psywar against Mr. Global by all these hacks money works. demonstrating a destructive capability that can- not reassure to Mr. Global. We’ve seen a couple of big presentations recently. Steven Greer recorded a four-hour conversation Fitts: Right. last year, a sort-of history of the national security Farrell: I think this is a big issue. I think it is – state. If you don’t understand this, it’s not a bad along with space – perhaps the issue that we have history. Then Richard put out a summary, and to look at very carefully because it is only going he did a very good interview on the day after to increase. That is my prediction. I would try disclosure and where this all fits into global geo- to keep your savings accounts and so on out of politics. the major banks for that reason. They are prime You’re seeing more and more synthesized pre- targets for these groups. They are leaking sieves. sentations for the sophisticated audience, helping Your local credit union isn’t going to be so much them understand the history since World War II a target of these types of things. in a way that they could grasp. Fitts: Right. This is another argument for decen- Do you see any more understanding in your au- tralization. dience about this question of whether the econ- Farrell: Exactly. This has the feel of an opera- omy is open or closed? tion, whoever is behind it, to wreck and disorder Farrell: Yes, I do. In fact, it’s almost a steady the internet, but also to publicize how central- subject of conversation on my website and in our ized systems are not secure. Somebody wants to so-called vidchats. Increasingly I think people drive the system out of the internet center into 51 II. News Trends & Stories
are opening to the idea that this money is going We know the price of fossil fuels was brought somewhere. So, is it going off-world in the form down by fracking technology whether we like it or of a tithe or tribute? Or is it going off-world in not. Technology continues to drop the price, and the form of commerce, or both? we know, given the available technology, it could Fitts: Right. go much lower. That means that the economy could keep slow burning despite all the debt. Farrell: If we return to space being collateralized after World War II, and companies now getting The energy price is headed towards almost zero, products from space, our search raises the ques- but we know that the question of openness or tion of tribute and tithe: So much debt in the closure is going to constantly bring us back to system – who really owns it? the question of the energy model and why is the energy model enforces central control when en- Let me put it this way: If Dr. Greer and Mr. ergy should be free? Dolan and some people in ufology are correct and there has been some sort of covert, high- Farrell: I’m glad that you put it in those terms. level, secret contact with someone off-world, If we are moving toward a new energy paradigm then we have to open the possibility that there – be it fusion or the DARPA 100-year project to might be trade covertly conducted. We have to make the United States warp-capable – people ask if someone else might be servicing our debt need to see that the new technology is engineer- that we may not even know. ing the fabric of space-time itself to draw energy: a virtually inexhaustible energy supply. “I pointed it out at the It’s not a new idea; I pointed it out at the last last Secret Space Secret Space Program conference that the idea We’re not just talking about propulsion; we’re Program conference has been around since Charles Fort. The real talking about energy supply. Therefore we are that the idea (of question is whether the financial system is open talking about a system of finance. off-world control) or closed? So, if the price of energy as we know it keeps has been around In one sense, that means that the system is open. dropping, we are tapping into so much energy since Charles Fort. But it also means that you’re dealing with a that the cost/benefit ratio is astronomical. We are The real question is much larger closed system and still dealing with getting a huge return on any investment. whether the finan- a debt model. That is very disturbing because, as The dropping price of energy asks the question cial system is open I’ve attempted to point out in the banker series –“Why do these people keep their hands on the or closed? of books, if you’re dealing with the physics that control mechanism? Why do they keep insisting allows you to tap into the energy of space-time on a debt finance model out of sync with this – the zero-point energy – you have essentially an energy system?” ” open system of energy. The answer is that they have to have a system Fitts: Right. of controls because they don’t want anybody Farrell: In that system, in that physical possibil- getting this technology that could weaponize it. ity, you really do not need a debt-based system of The very simple reason is that if they weaponized finance. this type of technology, forget about hydrogen bombs and ICBMs; they have something that Fitts: Other than to control. can take out a star. So, they have to maintain Farrell: Precisely. systems of controls, which go back to our model. Fitts: It’s interesting that the way they’ve kept If someone off-world is exercising control, it debt buoyed up is by bringing the energy price could be for precisely this reason: Someone off- down. The latest headline in The Economist is, world does not want this little monkeys on this “Solar panels have fallen in price by 80% since planet to get out and start blowing things up. 2010.” That is one reason. Or, you might want to keep that technology for yourself and say, “We will 52 blow you up if you don’t follow the rules.” issue changes immediately because humans make In these next 100 years, we are entering a physi- what we’re injecting into climate. cal and cultural shift for which your children and Fitts: Right. grandchildren must prepare. Farrell: We’re changing the climate. Fitts: It’s interesting. I have a wonderful sub- Fitts: If humans created climate change, do they scriber who sent me an email this week. Franklin mean to so with global spraying? had put something in his daily email saying that climate change was hogwash. She said, “Oh my Farrell: Yes, it’s spraying and things like HAARP God! If he says that about this, how can I trust and similar. Absolutely, the technologies are anything he says?” there. I said, “Wait a minute. I sent out a link to Fitts: I certainly didn’t write that in the 3rd my book review on Naomi Klein’s book This Quarter, but I just keep bringing it back because Changes Everything, which is my definitive state- once you’ve created the framework on this issue, ment on why climate change is hogwash and you you just need to keep repeating it. need to pay attention.” To see the big picture clearly, you have to bring It’s one of those arguments where, if you listen in many of these different threads to understand to guys who are concerned about climate change why the current conversation is lacking in integ- and you listen to the guys who are saying that it’s rity on both sides of the discussion. all hogwash, I would say that the first group has a Quickly, I want to talk a little bit about wild lot of integrity amid so many material omissions, cards and inspiration. You’ve written much so they don’t make sense. Then the other guys about the CERN collider. I think the CERN saying that it’s hogwash want to make sure that Collider is one of the big wildcards in the global it doesn’t get misused politically, so they’re just reality. Maybe you could just bring us up to date. saying whatever they think will work. What happened in the 3rd quarter on the CERN It’s basically a zero integrity conversation. I tried Collider? to write that piece just to give readers enough in- Farrell: You’re going to have to fill me in there. formation why they should see zero integrity on I have not followed the CERN story for months. both sides, no matter how good they sound. You I’ve been trying to focus myself on cyber security have to get into this issue of space and whether and things like that, so bring me up to date and we are open or closed. That, of course, is hard for I’ll reply. people. Fitts: I think we are seeing something that has Farrell: People must understand that we now the potential to manipulate systems worldwide. have technologies that can engineer systems on a Farrell: Oh, I understand what you’re getting at. planetary scale. Weather is such a system. Fitts: Between HAARP and what they’re doing So what do you have? We can manipulate with weather and CERN, we are talking about weather, and now you have the elite trying to systems to manipulate the entire planet. bring “weather derivatives” into world financial systems. Farrell: Yes. Let me give the Cliff Notes version of what I think has been going on with CERN. The Elites have a technology to manipulate. It has been a subject of discussion in my book, They are manipulating a new market that they The Third Way, and it’s been a big subject of dis- themselves have created. Weather derivatives are cussion in my website members’ vidchats. handy to have for people with technology to ma- nipulate the weather. First of all, CERN is the world’s largest con- sumer of internet bandwidth. People need to un- That much admitted, the whole climate change derstand this. When you think “internet users” 53 II. News Trends & Stories
CERN is at the top of the list. We will get into planetary machine, not a particle physics machine. the reasons for this. The third point is electrical circuitry, no matter It is very important for people to understand, how simple or complicated. One of my favor- and I want to remind people that I’m just a hack ite heroes in physics is a Hungarian electrical from South Dakota. I’m not a particle physicist, engineer named Gabriel Kron. In the 1930s he I’m not a plasma physicist or anything else. I’m pointed out back, that you could take the tensor just looking at this as a rank amateur with an in- calculus of Einstein’s unified field theory and use terest in physics. it to describe the anomalies that electrical engi- But when you look at the CERN Collider, it neers discovered in things like transients, phase is actually five particle accelerators, the last of creep, etc, in large networked electrical systems, which is the 27-kilometer circular accelerator and particularly in rotated ones. that is buried underground in rock. The import- That’s to say that ordinary electrical circuitry can ant thing is that CERN is doing particle physics. be described mathematically only in higher di- In other words, we spend billions of dollars to mensional mathematics. He is really meant that whirl what are fundamentally little mathematical any ordinary electrical circuit – no matter how packets of information in this huge machine and simple or how small – is actually a hyper-dimen- collide them to see what we get. sional machine, touching other dimensions. To draw an analogy, we are taking two hand- Now magnify that to the scale of CERN and made Swiss watches and slamming them to- you’re dealing, therefore, with a hyper-dimen- gether and looking at the debris and saying, “Oh, sional physics machine on an enormous scale. this looks like it might have come from a clock.” Fitts: When I look at CERN, I have questions. That is what the physicists are telling us. One is, “Are we bringing down the walls between I suspect a deeper physics project here. Point 1 is two dimensions intentionally”? that the magnetic fields of the collider itself are, Farrell: That is one thing I think possible. There in some cases, eight times the local magnetic field are a number of people – Anthony Patch proba- strength of planet Earth itself. So, we are dealing bly being the most prominent – who are looking with gigantic, man-made magnetic fields. at CERN in Biblical terms, such as creating por- When tinkering with magnetic fields that alter tals for the devil to come through. the local field strength of the planet, we should I don’t look at it that way, but his point is also are see some kind of planetary resonance effect. mine. We are dealing with a hyper-dimensional It could affect, not only the planetary dynamo machine, and the CERN staff has admitted pub- in the center of the planet, but also conceivably licly it is looking for higher dimensions. affect the magnetosphere itself. The staff is telling us that this machine is not The second point is to ask, “How do you deter- simply about physics; it’s something else. mine that is the case?” There is yet another level to CERN: being a sov- Well, the way when the collider is actually func- ereign entity. It’s like the Bank for International tioning, is to look for data correlations. Is there a Settlements and, in a certain sense, is a cosmol- dip in the magnetic field strength of the magneto- ogy cartel. It can negotiate loans and financing sphere in the Northern Hemisphere of the planet? all on its own, and no sovereign nation has any Lo and behold, when you dig for such things, you say, although Germany has the heaviest interest find dips. Are there any effects of dips, in turn, on in CERN. solar activity because the magnetosphere of the CERN, because of this sovereignty, can control sun and the earth are coupled? They do in fact the flow of information; it can classify things touch each other in space. We are looking at a all on its own. I think this control indicates a
54 deeper project. Farrell: Now let’s amplify it to the CERN scale. Now let’s go back to the internet. CERN cre- Let’s imagine that we doing physics experiments ates literally billions of particle collisions every and we recognize that consciousness may play a picosecond. That in turn means that CERN is role in physical reality far beyond what we envi- generating so much information in a minute of sion. When the CERN staff runs experiments, it its operation that it exceeds all previous human is also secretly using their computer filters, run- knowledge. ning what I call data correlation experiments. Fitts: Wow! It’s creating its own field. Further, when CERN is turned on, do we no- tice any increase or decrease in certain types of Farrell: Precisely. It’s creating an information human activity? Do we notice changes in moods, field that, in turn, has computers programmed to emotions, financial markets, decisions, and so on select interesting collisions, which they present to scientists to analyze. The first information filter Given how such enormous computers with enor- for CERN is a computer. mous algorithms filter data, the possibility exists that CERN could run a social engineering phys- Most scientists working with CERN are not ics experiment on data correlations of planetary physically in Switzerland; most are scattered effects of changes in the magnetosphere. I think CERN creates literally all around the world and getting their results CERN is running such a gigantic experiment. “ through the internet. This means, theoretically, billions of particle that you could have several filters that we never If that experiment is really the fact, then science collisions every pico- hear of at work in the computer programs pull- is about replication. The CERN problem is that second. That in turn ing information for scientists to analyze. we trust the people running CERN to tell us ex- means that CERN is actly what it finds. But when CERN is sovereign, generating so much I am suggesting that a secret filter pulls the really it has no need to tell us everything. interesting things, not having anything to do information in a with particle physics, but having more to do with It is possible that CERN is not telling. So China minute of its opera- hyper-dimensional torsion field effect or gravity wants to build its own bigger facility. I suspect tion that it exceeds effect, and presenting it to secret committees of that China thinks along the same lines –“We all previous human scientists to analyze. want to build our own machine and to find out knowledge. for ourselves.” CERN really is huge. In quantum mechan- ” ics, you have the observer effect. It goes to the Other countries want the same thing. Russia Heisenberg uncertainty principle. You cannot does, and Germany wants to build a bigger one measure the position and velocity of an electron just for itself. So, we are dealing with a planetary at the same time. That is to say, prior to running machine, with a planetary physics experiment, an experiment, we already determine the out- with a planetary social engineering experiment, come by determining what to look for. Do you and research into consciousness, physics, and follow me? higher dimensional workings. Fitts: Yes. Fitts: We must do an interview just on CERN. Farrell: So, physics is observer based. Now let’s Farrell: Yes. It’s worthwhile. magnify to the macro scale. If physics is observer Fitts: Absolutely. Now let me turn to inspira- based – and you’ve done interviews with Dr. tion, because the 3rd quarter was an uncertain William Tiller, because he’s getting into the same period when someone might say to you, “Please phenomenon – then we ask, can consciousness just nuke us now. End the pain.” But there was directly and without any physical connection to inspiration too. In fact, some of the movies I’m a system influence the state of the system itself? using this month are really inspired me during The answer is, “Yes, it can.” the quarter. Fitts: Yes, of course. Rather than picking out the ones that inspired
55 II. News Trends & Stories
me, why don’t I ask you first: “Where did your couldn’t build a market until the art and culture inspiration come from in the 3rd quarter? What had come together. For example if we want to glo- really inspired you?” balize the economy, you needed to develop world Farrell: In the 3rd quarter, it was music. I’m not music and get the different artists together. a movie watcher, although I’ve been watching One of my favorite music videos is Sting with a television series and noticing interesting. The Branford Marsalis. He assembled musicians from series Black List has James Spader playing an in- different traditions and parts of the world to do ternational criminal waging war against the cabal his fragile tour. His vision was that their music within the American government. I find that and his yelling and screaming would come finally series interesting. together, and the differing musicians would un- Fitts: Yes. derstand his vision and beautiful, differing tradi- tions would come together. Farrell: If you’re not familiar with the series, you “The series Black List can watch it from the start to catch up. As the tour evolves, something happens. They has James Spader reinvent what they’re doing and take it to a More and more memes are coming out in the whole new level that he had never planned. They playing an inter- popular media, and I have to wonder if someone created a something whole and new. It was quite national criminal is trying to send messages, or is someone trying remarkable. We say, “Oh, they’re trying to build waging war against to expose Mr. Global in the guise of fiction? It’s the global field so the global money can run.” the cabal within the hard to tell. Farrell: American govern- Let me propose a question here, and I Fitts: I think the media try to hold onto market don’t even want to suggest an answer. I don’t ment. I find that share, and this is their only way. even want you to try to answer it. I propose this series interesting. Farrell: That may be true. They play to what question for the listeners. The question is: Why people are thinking. Who knows? is the music of J.S. Bach so universal? ” In terms of inspiration, it’s usually music. I’ve I have a recording of his orchestral suite recorded been listening recently to organ pieces that I used in Japan in the 1980s, played by a Japanese Kodo to play – organ symphonies of Evita and Vierne orchestra. We can go online and find Korean, and of course J.S. Bach. I get inspiration from Japanese, Chinese, and Malaysian children learn- music – much more than from visual media. ing to play the violin and learning his pieces? In terms of reading, I’ve come across an interest- Why is his music so universal and so adaptable to ing book about the Medicis in Florence and how almost any instrument? banking and arts have been connected since the There are reasons for it. I’m asking for a specific Renaissance. This is fascinating, how the arts can philosophical, esthetic reason. Why is that? drive certain memes into society. Fitts: That’s a great question. Can I add to it? Fitts: Absolutely. Farrell: Sure. Farrell: They use art to remold it, and that just Fitts: I told you that during the litigation I was got me thinking about music again. The CIA is dealing with chaotic forces trying to push mas- well known for sponsoring modern art, music, sive incoherence and to drive me crazy. Bach was and the rock phenomenon in this country. I’m the one thing I had, no matter where or what I not saying that rock music is bad; far from it. was doing, that could bring me back to coher- But it’s an indicator of why our modern Ameri- ence. I consumed a huge amount of Bach, just can culture looks so barbaric. So much of our art coming back to coherence. No matter what and is ultimately inhumane art. no matter how bad it was, I could come back to Fitts: I’m going to use my words, not theirs. What coherence with Bach. the financiers told me on Wall Street was that we Farrell: Why is it that way, and why did that
56 time period with those people – Handel, Fitts: Saturday night dinner, October 15th in Scarlatti, and Carl Phillip Emanuel – become a Tulsa. Check it out. You can access information benchmark? from www.GizaDeathStar.com and www.So- There are reasons, but it was the beginning of lari.com. modern Western tonal music. Like Leonard I want to mention that many things inspired me Bernstein, I see a direct line of musical continuity in the 3rd quarter, but one was a video under from Bach to the Beetles. Why is it that modern Vimeo “famous shorts” or something. Our sub- “classical” music does not have that same appeal? scribers send in fabulous stuff. Are specific reasons. It was about two guys in China. One was blind Fitts: Here is what I want you to promise: Once and the other had no arms. They were bemoan- we finish funding your organ and the organ is set ing what was happening to their village environ- up, you will tell us the answer. ment, and so they decided to replant trees and Farrell: I will try. It will take me a long time to reverse the environmental harm. recover skills. I’ve said that I couldn’t play Chop- The first year I think they planted 800 trees. sticks right now. I haven’t played a keyboard One is blind, and the other armless. One guy steadily in the last 30 years. would have to climb up, but he was blind. The Fitts: I just mean that part of what we get for armless guy would stand at the bottom and tell funding the organ is an answer to the question. him what to do. Farrell: Oh, yes. Yes, I fully intend to. In fact, I They planted 800 trees, and I think only two lived. want to make a video to show the harmonic se- But they persisted, and they planted over 10,000 ries on a pipe organ and how the harmonic series trees. They wanted to leave a legacy to their village. and the pipe organ are so intimately connected. They were focused on long-term legacy, which is Again, the pipe organ is the oldest keyboard of course the right way to think. And they made instrument, almost a millennium now. no excuses. They did not sit and say, “Wait a min- ute. You’re blind and I have no arms.” Instead they The first examples were in Byzantium. It’s the sat saying, “Well, what can we do?” “I see a direct line of oldest instrument, intimately tied to the rise of musical continuity modern Western tonal music. You perceive it and think, “If they can build a forest, I can keep ‘turtling’.” from Bach to the Fitts: You did a wonderful webinar in the 3rd quar- Beetles. Why is it Farrell: Exactly. ter on the organ, and it has great pictures of you that modern “clas- and your family as a young man. I encourage every- Fitts: It is on the website. You can link to it from sical” music does body to sign up for Giza Death Star and listen. the Trends and Stories. I can’t wait until our An- not have that same nual Wrap Up. It is going to be a doozy! In fact, Farrell: It would be even more fascinating to appeal? demonstrate with stops on a keyboard, and show our annual theme will be “The Global Harvest that the organ is the rise of modern Western and its Intersection With Financial Markets.” ” music. Composers in that era wrote so much for Now that the effort to control the planets and it. But it is also at the time in Western history GMO foods look like they are failing, thank when some people began to think independently God! Maybe we can have more rational conver- for themselves. This is why music is important. sation. It teaches us to recognize patterns and permu- Farrell: Catherine. Thank you for having me tations in all contexts, all at the same time, and back. making sense. That is the real key. Having it make sense is the key. I was planning once I get back into practice, to show people how it wires the mind.
57 III. Financial Markets Roundup
58 “The world we live in is vastly different from the world we think we live in.”– Nassim Nicholas Taleb
Overview he 3rd Quarter began with the shock of Brexit and continued to climb a “wall of worry” as the equity bull market continued. Concerns about the US Presidential election kept the cash balances growing. Let’s see if we have a definitive direction Tcoming into the inauguration. Whatever happens, be prepared for more volatility. Market Overview
[This chart reflects prices adjusted for dividends; charts following may not.] US Dollar Index
59 III. Financial Markets Roundup
FIXED INCOME AGG (US Bond Aggregate), JNK (High Yield Bond ETF)
60 IEF (5-7yr Treasury ETF), TLT (20 yr. + Treasury ETF)
61 EQUITIES NORTH AMERICA SPX (S&P Large Cap), PKW (Buybacks)
62 SCHA (U.S. Small Caps), SCHM (U.S. Mid Caps), SCHX (U.S. Large Caps)
US Aerospace & Defense (ITA)
63 Consumer Discretionary (XLY)
Consumer Staples (XLP)
64 Industrial Select (XLI
Health Care (XLV)
65 IBB (Biotech)
ITB (U.S. Home Construction)
66 IYR (U.S. Real Estate)
U.S. Equities: 1, 3, 5 Year Sector Performance
67 Motif Investing Motif offers an interesting picture on what’s up and what’s down!
HIGHEST EARNERS
68 Motif Investing Motif offers an interesting picture on what’s up and what’s down!
LOWEST EARNERS
69 EFA (International Developed)
EUROPE / DAX (Germany)
70 VGK (FTSE)
VGK(FTSE), EWU (UK), SPY (S&P)
71 EUFN (European Financials), KBE (US Financials)
European Financials: DB (Deutsche Bank), RBS (Royal Bank of Scotland), BCS (Barclays)
72 ASIA EEM (Emerging Markets)
FXI (China Large Caps)
73 China Small Cap (HAO)
PIN (India)
74 WAFMX (Frontier Markets).
Commodities / OIL (Crude Oil)
75 RSX (Russia), OIL (Crude Oil)
GLD (Gold), SLV (Silver)
76 GDX, GDXJ
CRB (Commodities Index)
77 YTD Commodities Performance
78 Baltic Dry Index
79 the the
SolariBY CATHERINE AUSTIN FITTS / 2015 ANNUALReport WRAP UP VOLUME 2016 / NUMBER ONE SolariBY CATHERINE AUSTIN FITTS / 2ND QUARTERReport WRAP UP VOLUME 2016 / NUMBER ONE Global Investment Takes Off SPACE: HERE WE GO! WHERE TO STASH CASH IN 2016!
the the
BY CATHERINE AUSTIN FITTS / 3RD QUARTER WRAP UP VOLUME 2016 / NUMBER FOUR SolariBY CATHERINE AUSTIN FITTS / 2ND QUARTERReport WRAP UP VOLUME 2016 / NUMBER THREE Solari Report PRODUCTIVITY, INVESTMENT PROSPERITY & THE SCREENING: P PSICLE Can We Filter for Productive Companies? INDEX Building Trust Between People, Places & Money
© COPYRIGHT 2016. ALL RIGHTS RESERVED. SOLARI, INC., P. O. BOX 157, HICKORY VALLEY, TN 38042
cover.indd 2-3 9/13/16 1:17 PM THE SOLARI QUARTERLY REPORTS FOR 2016
© COPYRIGHT 2016. ALL RIGHTS RESERVED. SOLARI, INC., P. O. BOX 157, HICKORY VALLEY, TN 3804280