82 The Solari Report / 2018 Annual Wrap Up / Part Two Catherine Austin Fitts, Dillon Read & Co. Inc. & the Aristocracy of Stock Profits The federal mortgage funds have long been subject to significant fraud with the full help and support of the U.S. Treasury, Department of Justice, and New York Fed and its member banks. I believe that this fraud has been used to finance the black budget. In 1994, after the first FHA/HUD financial audit was published, a mortgage banker came to see me. He was a serious engineering type who clearly worked hard and had mastered the details of his business. He was distressed, he said. For decades he had been keeping a tally of total outstanding FHA/HUD mortgage insurance credit. He had brought printouts of his database for me. It turned out that the government’s published financial statements showed the amount outstanding was substantially less than the actual amount outstanding. He was sure. I assumed that the guy was crazy. If what he said were true, then the U.S. Treasury and the Federal Reserve would have to be complicit in significant fraud, including securities fraud. Catherine Austin Fitts, “The Myth of the Rule of Law” For more on this topic, see my online book, Dillon Read & Co. Inc. & the Aristocracy of Stock Prof- its as well as excellent Solari Report interviews with Joseph Farrell, Adam Trombly, and Richard Nolan and audio seminars on the housing bubble. The opportunities for financial abuses and the impact on the general economy are beyond signifi- cant. Given the amounts involved, very advanced technologies undoubtedly have been developed, mostly to the benefit of the private contractors who have been paid to develop them. The value is literally in the trillions of dollars. Monetary Policy The federal government has delegated the management of monetary policy to a privately con- trolled central bank, resulting in the debasement of $20-$30+ trillion of U.S. savings since its creation. This is a significant topic that is well worth exploring. Much of global geopolitics is driven by what the U.S. government and miltary must do to ensure that the dollar’s status as reserve curren- cy is maintained. Currency debasement is an especially sensitive issue as Congress approaches the fiscal cliff. Man- aged inflation has produced profits and increased asset valuations that do not reflect an increase in real wealth. If the money supply is growing at 10% and a real estate value is increasing at 2%, then in fact, real value is falling. Hence, paying an increased capital gains tax to the government on what is in effect a nominal increase (but really a decrease in the purchasing value of real assets engineered by the government) is quite frustrating. The following documents are available in the Solari library: · To better understand how debasement of the U.S. currency has drained you and your family, see: “Positioning Your Assets.”