“In Washington we used to laugh when we’d get an anti-war rally…because we knew in their back pocket [so many of the protesters] had a Citibank credit card. So as long as [the hundred thousand marching protesters] were financing the war, who cared? Let ‘em walk up and down. They’re just affirming how important and powerful we are by coming to march in front of us.”
—Catherine Austin Fitts
I’ve been really trying to learn about how to build closer-knit communities and understand, say, wider economics—and if I find or understand something, just pass it on with love via this blog or conversation.
In the process, I’ve been learning a lot by listening to or reading Catherine Austin Fitts, former Assistant Secretary for Housing-Federal Housing Commissioner (HUD) under Bush I—and then doing my own research.
In fact, being a deeply commited nerd, I have, for two reasons, footnoted an interview she gave in 2004 with Jim Puplava:
One, to help myself slowly grasp challenging financial jargon.
Two, to try and understand some of the methods by which giant governmental and corporate institutions can commit widespread fraudulent undocumentable transactions, and in the process of stealing so much money, increase their centralization of power and wealth (consider the $59 billion missing from HUD or the $2.3 trillion unaccounted for at the Department of Defense).
And make no mistake: to have for whatever reason such easy access to vast sums of money—in a game you know many of your rich and powerful peers are playing—must be incredibly tempting. And to act upon it might just be human nature’s most likely response.
Most likely, it should be noted, does not mean inevitable. Either way, it becomes evident just how desperately (for democracy) financial transparency is needed in these big institutions, and so not the case.
TRANSPARENCY
Financial transparency in these institutions and corporations, one could argue, is the lifeblood of a democracy that wishes to survive democratically.
With financial transparency—and again considering $2.3 trillion in undocumentable transactions in one fiscal year—can you imagine how much financial fraud could be revealed?
Granted, preventing even some of that fraud would pensions and stocks to almost certainly go down, which would effect a lot of people who are not actually committing—yet still funding by their choice of stocks etc—these undocumentable transactions.
But maybe, just maybe, by limiting financial fraud and smuggling and so on, wealth within communties, overall freedom and individual integrity would go up. Hm.
Where do I stand on this? Or sit? Or hide?
From that footnoted interview:
…so we [Austin Fitts] got in the first Bush administration a law requir[ing] that the Federal government had to produce audited financial statements, which went into operation in 1995—they had about four years before they were required. And what happened when the first financial statements came out, was essentially most agencies could not comply, or produce audited financial statements.
And as of today…in 2004 [still, as of 2007], the Federal government has yet to comply with the laws requiring audited statements for those 24 agencies, and the Treasury consolidated…
I repeat this, sisters and brothers, with an IRS/CRA disclaimer: “Don’t try this at home.” As a rule, the IRS/CRA will be a lot harder on you than they are on these government agencies.
So, I’ll post that foortnoted interview (with an essay) as a pdf in the next few days.
Hopefully it will be of use to others like myself who see economic jargon as undecipherable hieroglyphics, and the bigger economic picture as a brain-numbing alien from outer space, or at least the Washington suburbs.
In the meantime, I’ll link here (below) a talk Catherine gave in Vancouver on the 10th of October. I missed the talk, unfortunately—I hadn’t heard about it—and I was actually out of the country, so I couldn’t have been at it anyway.
TAPEWORMS AND OTHER PARASITES
Catherine describes the economy as a tapeworm economy which, given the undeniable debt, the ongoing economic scandals and the near-bursting and already burst bubbles, seems appropriate. From the Solari website:
In a tapeworm economy a small group of insiders centralize political and economic power at the expense of people, living things and the environment, in a manner that destroys real wealth.
A tapeworm economy is one in which it is considered acceptable to make money from our popsicle index going down.
FUDGESICLES
The Popiscle Index is the percentage of people in a given place who believe their children can safely venture out in the neighbourhood alone (say, to get a popsicle).
The index has been plummeting for decades—from nearly, probably, a 100% belief in safety three decades ago in Vancouver, to probably now about, what, 10% of people believing their kids are safe?
Even if fear-mongering isn’t a crime against humanity, it turns out it’s a crime against community.
You know, I was just thinking: Maybe life’s always been this way, but given the nature of the modern world economy, being a kind, open and engaged community citizen in a way that increases joyful communication between strangers may just qualify as an act of subversion.
RETURN OF THE TAPEWORM
In investment terms, [the tapeworm economy] is an economy with a negative return on investment.
It is parasitic in nature.
The way an actual tapeworm operates is to inject its host with a chemical that makes the host crave what is good for the tapeworm and bad for the host.
So the Tapeworm Economy is adept at using media and education and numerous financial incentives to get us acting against our own strategic interests and instead supporting and depending on the Tapeworm.
One of the things that makes community solidarity less likely is increased fear and lack of trust between neighbours and strangers within a given community.
Where does this distrust come from? Sometimes increased violence, to be sure (Clifford Olsen’s abominations cleared parks of children in the early 1980s). But if increased violence is not the statistical reality over time, what’s the reason? A myserious virus? A meme?
HYPE-NOTIZED
Well, I recall reading years ago that although the violent crime rate had not changed in years in Vancouver, the violent crime reporting in the mainstream media had tripled.
At the same time one might have noticed that the actual visual recording (ie the filming) of the brutal, bloody carnage created by war—either war in Iraq, I or II, or Afghanistan, or even from inner-city violence—was and is virtually non-existent on the nightly news.
This ommission is not an oversight. It is policy.
This was one of the lessons for government from the Vietnam War, where a significant percentage of television viewers saw the soldiers wounded and dead bodies dragged across the nightly news.
Soon enough, they couldn’t stomach the misery they were supporting as citizens and tax-payers—and began to protest as the bloody, blinded, torn-to-shreds reality of the body count went up.
The ommission could be signs of a large yet sneaky species of tapeworm media (Latin: Wormus nefarious).
Summing up those two theories, one could logically decipher that neighbournoods are getting way more dangerous (when most, statistically, are not) and wars are getting less dangerous (when…well, how insane is that?).
For the record, my understanding is that investigative reporting of, say, white collar crime, is both expensive and takes time, both demands being anathema to the modern newscast and the bottom line. In other words, investigative journalism, as a general rule, would not serve the tapeworm.
GETTING TURNED OFF
About three-quarters of the way through the talk, Catherine says, “If I can suggest anything, turn of your TV. Turn off the tapeworm media.” A woman after my own heart—and definitely not the hearts of a lot of others—I think she mentioned the average amount of time the TV is on in a household, per day, is 8.5 hours. That, my friends, is a devotion even God can’t seem to get.
SYMPTOMS
Fitts, on the Solari site, writes:
The symptoms of the Tapeworm are many—narcotics trafficking that targets our children, runaway exploitive and predatory corporate practices such as the patenting of life, terminator seed and the destruction of our topsoil and food supply, fraudulent inducement of debt to homeowners, students and consumers, suppression of knowledge and renewable energy technology, criminal mismanagement of government credit and resources, black budget operations and the manipulation of currency, financial and precious metal prices and markets.
These practices introduce organized crime throughout all aspects of our lives… these transactions drain our families and neighborhoods on a daily basis—much like a tapeworm drains its host.
As we understand the history of these drains in our lives—who is doing them and how we are complicit—we begin to understand the power of the opportunity to transform them in a manner that is safe and profitable for ourselves and those we love.
THE JOY OF SOLIDARITY
Admittedly, I of course don’t know if the things Catherine suggests can actually change the world today, right now—unless, perhaps, enough people can gather in solidarity and dialogue to make decentralization understandable and investment in community economically and politically sustainable.
But either way, don’t you want to feel more joy inside your community?
That can be shifted instantly by applying Gandhi’s “Be the change you want to see in the world.”
But how to expand that? How to make both our personal actions and impersonal transactions have meaning?
Actually, do you even feel you have a community? If not, you deserve one.
And who doesn’t want to know more about their specific role in the world? What their actions and money are doing or not doing?
It is weird to think our pension plans—”a significant amount of equity in the markets is managed by pension plans”—might be heavily supporting drug smuggling, weapons production and so on. Who wants to carry that burden into their golden years—even with a decent return?
Well, it turns out many of us. And that’s worth a little soul-searching—and the answers are not easy. I know because I’m in the remedial class, in constant search of a tutor.
But the bottom line about what can one do is answered in part when she says, “Don’t do anything that doesn’t energize you.”
The spirit of a true sustainable thinker.
DOOMSDAY
But what I was getting at earlier, my friends, is that I don’t actually believe the world is coming to an end: not via science and nuclear weapons, not via Armageddon, not via environmental disaster, not via One World Government and not via aliens.
However, certain pro-centralization people, as Fitts calls them, are banking on citizens adamantly disagreeing with me, and believing that it probably is coming to an end. And leaving us in a constant state of panic will, in theory, leave us begging for a paternalistic leadership to tuck us into bed.
We must, with love, grow up.
THE IDIOCY OF IT ALL
Meanwhile, at an airport the FBI or whoever it is can put out a “Code Orange” Alert, have us all panicking, and staring suspiciously at curious stereotypes, while in fact the FBI or whomever surely must realise that giving the public the Code Orange information offers us no means of helping alleviate the terror alert whatsoever.
The result is simply increased anxiety and panic. Thank you, Big Brother.
FEAR AND LOATHING
It turns out that creating excessive fear in a population is a hallmark of increasing fascism. The Threat of Terror information at, say, an airport is utterly useless to the populace. Yet it’s put there. Hmm.
I thought we were supposed to love our enemy, in the words of the man from Galilee.
That said, of course I know the planet is taking a beating, nuclear weapons (and small weapons) are a cancer of the human species, and the world’s equity is of late getting highly centralized (and perhaps spread out somewhat in the process, depending who you ask).
Either way, and notwithstanding economist John Meynard Keynes’ comment, “In the long run, we are all dead,” I’ve decided something else, too:
I will for my continued soulful sanity try to commit to learning how to plant seeds that help produce harvests that make living for the next generation, seven generations from now, ten generations (I don’t care how long), more sustainable, more transparent, more intimate and open to more people being able to direct their own lives.
This effort will live as an antidote to literally paying for the increasing centralization of wealth, government and power.
Too many sisters and brothers deserve better than that.
Not to simply “be here now” or “live for today,” or “maximize returns”—as tempting as those things can be—but hopefully “to live with a growing awareness and hope for life that will continue for eons after I’ve finished with my last breath.”
And in the process of learning, may I always try to remember the idea of ahimsa, a Sanskrit term which means: cause no harm.
For the love of god, we’re all subject to the human condition.
So how, garl darnit, to make change that supports the whole, sisters and brothers, and causes no harm? I don’t know, exactly—but I bet my instincts are better than I think.
And this talk given by Catherine Austin Fitts in Vancouver on October 10th was deeply thought-provoking.
It’s bold enough as you’ll hear—and courageous enough, too, to name a few names.
Fitts believes in the absolute necessity of government financial transparency, in community reinvestment and, to quote Jimmy Stewart in Mr Smith Goes To Washington, “…a little bit of plain, ordinary, everyday kindness—and a little looking out for the other fella, too.�
An excerpt from the talk:
I think if we’re going to have ethical investment, we need to start from a premise that says I’m responsible for my world. And if things are going wrong that are evil, I’m responsible to understand how they connect to my money…
In short, we can actually fund thngs that we agree with, that enhance and enrich community.
Another excerpt:
Catherine: One of the greatest myths on the planet is we need to have more consumption to make money. It’s a complete lie. It’s not true.
But, if we want to make money reducing consumption and healing the environment, then we need a much more decentralized equity system that’s going to provide for much more local control. Needing more consumption for growth is fine if you want a highly centralized system.
But if you want a highly decentralized system, it goes the other way.
Question: Do you mean more local control or direct ownership? I mean the control and the ownership need to go together, but we need more direct ownership.
Catherine: It’s direct ownership—but it’s much more intimacy and much more knowledge of the financial process.
To hear for yourself what Catherine’s saying, if it interests you, vist the Solari website. The ideas, I feel, are meant to expand the listener. They are meant to energize the listener. They are meant to increase the strength and wealth of communities.
That’s a beautiful intention, even to those who might disagree. Who knows what could be done?
Here’s to smiling while walking.
Pete xo
