Thursday, October 14, 2010

The American Tapeworm, Part II

From the German Chaos Theory website, by Catherine Austin Fitts, http://www.solari.com/ , I have broken her 2003 essay into three parts over three consecutive days. Today Part II.
The “Break It-Fix It” Subsidy of a Negative Return on Investment Economy

For several years, I have been studying and writing on the corporate and banking economic warfare model of globalization. Just from a case study of one private investor, Pug Winokur, and his investments in and with DynCorp, Enron and Harvard, examples abound.

- US neighborhoods are overrun with narcotics trafficking and HUD financial fraud while systematically worked by enforcement, seizure and War on Drugs teams supported by DynCorp and generating profits for the Harvard Endowment;

- Latin American pipelines, water and other assets are sold for significant discounts to market value to Enron and other multinational investors while DynCorp helps War on Drugs military teams move peasants off the lands;

- Russian banks and pension funds are emptied out by organized crime and laundered through NY Fed member banks while Harvard as financial advisor helps privatize Russian oil companies over to their endowment investment network;

- DynCorp personnel supplying police and aircraft maintenance are active with local mafia in Eastern Europe and practice buying and selling children as slaves which they use for sex;

- $3.3 trillion is missing from the Department of Defense and the Department of Housing Development where Lockheed, DynCorp & AMS are active managing computer systems and Harvard supplies appointees and contract services.

- Manipulation of the gold markets by the US Treasury and NY Fed member banks are led by Larry Summers, Secretary of the Treasury, and now President of Harvard and his predecessor Robert Rubin, Secretary of Treasury, and now member of the Harvard Corporation Board.

These shenanigans are well documented by a series of courageous reporters and market commentators, including Anne Williamson, Greg Palast, Kelly O’Meara, William Murphy and Chris Sanders.

This tapeworm operates globally. It has been winning at economic warfare because those opposed to it cannot see it clearly and are not yet networked globally to move people, places and capital out of its reach. My pastor, Bishop Alfred Owens, says, “If we can face it, God can fix it.” Indeed, divine authority is hamstrung-- waiting for the necessary global networks to align around a common map of the real deal about global consolidation of economic and political power --- and the resulting liquidation of wealth.


This tapeworm is managed tightly by the cartels that syndicate around central banking and warfare and it has four phases:

- Phase One--Break It: Private syndicates make money destroying a place through organized crime, covert operations, warfare or a variety of both;

- Phase Two- Buy It: The profit generated from breaking it is used to buy or seize “legal control” at a discount;

- Phase Three- Fix It: Government funding, credit and subsidies are then used to “fix it” while harvesting remaining assets, including with narcotics trafficking, sex slavery and any other form of liquidating the human, intellectual, environmental and physical capital in a place:

- Phase Four—Declare Victory: Victory is then declared and a flow of foundation and academic grants funded by the “break it-fix it” profits generate awards, photo opportunities and official archives and documentation for the perpetrators to be admired for their bringing of advanced civilization to the natives.

What emerges from an investment banker’s analysis of billions of transactions involved in situation after situation, in place after place, in year after year, is surprisingly simple.

We are watching a global first world economy that has a negative return on investment.

For example, in 1997 I lead an analysis of US federal expenditures and credit activities in the Philadelphia area for a group of US pension fund leaders. After analysis of the detailed data resulting from $10 billion of government reengineering and $400 billion of federal credit portfolio strategy managed by my company, the evidence was overwhelming ---the federal investment in Philadelphia had a negative return on investment. In short, government budgets were rigging profits and income for companies and people in the area. After each year of government investment, Philadelphia spent more time doing things that were fundamentally not productive and so had been paid to grow “stupider.”

The deterioration in environment, culture, infrastructure and quality of life in Philadelphia that was obvious from walking around the city matched the numbers rather than the spin in the corporate news that the economy was doing well. Equity yields were falling steadily and only cooked government and corporate books could make it look otherwise. The primary thing on the rise was the smugness of the leaders of Philadelphia institutions as their success at covert management and personal “personnel benefits” grew ever stronger.

The Giant Sucking Sound as the Tapeworm Consumes Global Capital

Another way of saying this is that the banking and corporate model as currently constituted does not work. Banks and corporations are entirely dependent on rigged government budgets, government contracts, federal credit arbitrage and corrupt regulation in way that generates a negative return on investment for taxpayers. In addition, as corporations and banks become dependent on such government intervention they become progressively less able to function in a free market. Their culture becomes progressively soviet.

The combination of negative returns to taxpayers and increasingly non-market worthy private organizations is steadily lowering productivity. Add to this the increasingly power of organized crime as a % of GNP and a determinant of who sits in power on Wall Street and Washington, and fundamental productivity does not have a chance.

This state of affairs can go on as long as it can be financed. Hence, as long as America can continue to export dollars, export Treasury bills and mortgage backed and other federally supported credit, and lead in global organized crime and warfare, a negative return economy can continue.

Another way to say this is that rather than let markets adjust in a manner that would hold banks and corporations accountable, the central banks and military and enforcement machinery will guarantee markets by offsetting ever less productivity with ever greater amounts of debt and the liquidation of planetary assets – people, places, and all living things.

Which leads us to Iraq.

Tomorrow Part III

2 comments:

Danette said...

Grayson petition about foreclosures on my blog you might want to check out (that is, if you haven't see it yet)

Conchscooter said...

I hope he wins re-election even if he is (especially because he is) a voice in the wilderness. On foreclosures it would be a miracle if he was heard.