Money manager and financial expert Catherine Austin Fitts is worried about exploding global debt. It has almost doubled since 2007, and Fitts says, “Yes, I am worried about it, and I still think the chance for collapse is relatively small, but I am very worried about the level of violence going up to deal with the tensions resulting from this. If you look at the debt, there are several things to point out. One, the debt is very high, but it is bifurcated between who is borrowing a currency they can print and people who are borrowing a currency they can’t print. That’s of great concern to us because with a global slowdown, a lot of people have borrowed in dollars, and now they got to pay it back at the same time they have to earn dollars, where it is tougher to do.”
Fitts thinks that shear force is helping to hold the current broken system together. Fitts thinks all that can change suddenly and goes on to say, “Central banking warfare depends on what the warfare can enforce. Here’s where the “black swan” event comes. When we reach a tipping point of global population . . . who realizes we’re run by . . . as a practical matter, psychopaths, and there is nothing good that can come from leaving them in power. Then you are going to get a shift in consciousness. To me, that’s the wild card. What we need are markets. Markets bring out the genius. Markets can solve essentially most of the problems we are facing. For markets to work, we have to realize there is no point in going through these guys’ mechanisms. They’re nuts, and it never can come out well for us if we go through their vehicles.”
Even though Fitts thinks the chance of total collapse is “relatively small,” she’s not discounting the chance of a major move this fall. Fitts contends, “I think this fall is going to be a major turning point. You see the SDR (Special Drawing Rights) system coming to a head. The U.S. budget is going to be a very difficult debate. You see the push to get the Trans-Pacific Partnership (TPP) and the EU deal done. You have a lot of institutional relationships that needed to be restructured in the last couple of years. Those changes are all coming to a head, and so we are going to get a big shift. If you are managing a big bond fund, you got a big problem. . . . There is going to be a turn in the bond market or a plateau, and that’s going to be uncomfortable for those guys, and we are going to see some messy times.”
So, are we eventually simply headed for war or collapse? There is a third option, says Fitts, “There is something else, and that is change. It doesn’t have to get to World War III, and it doesn’t have to get to collapse, but it does have to get to change. Change is very granular because it’s coming on a decentralized basis. In every walk of life, in every sector, in every industry, in every government, people start saying we need to attend to the real problems before us, and we need to stop doing the stupid stuff.”
Join Greg Hunter as he goes One-on-One with Catherine Austin Fitts, founder of Solari.com.
(There is much more in the video interview.)
After the Interview:
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Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.