Investment banker Catherine Austin Fitts says the world is getting tired of what she calls “disaster capitalism.” What does she mean? Look no further than Greece as Fitts explains, “Greece essentially looks to me like disaster capitalism. You are trying to get another positive return by liquidation, but the reality is if you liquidated the global economy, you are not going to get a positive return. The game can go on for a while. The reason I said Greece and Puerto Rico rang the bell is you can see this game is getting very old. The IMF (International Monetary Fund) . . . is saying this is not sustainable. This debt is not sustainable. This is why this is important. When we loan money to somebody and it is predatory, we reduce the ability of paying back the debt. So it’s a lose/lose situation. If you skim off the top as a predator, you get a kick, but the reality is the longer you play that game, you cannot get a return on the money you have stolen. What I am saying is it is a spiral down, and it’s not going to work. . . . The IMF is saying we can get more debt paid back with a sustainable plan than we can get with an unsustainable plan.”
Fitts says what you are really seeing is change of attitude from around the planet on how to grow the economy. Fitts explains, “What is beginning to happen is the feedback loop is coming back around, and it’s coming in from the BRIC nations. It’s coming in from the Greek people, and what they are saying is we need an economy that produces wealth if we’re going to get anything done. Whether it’s getting kids working again or get debt paid back, there is a rational voice that is coming back through, and it’s a human voice that is saying inhuman plans can only depopulate or bring war.”
Fitts goes on to say, “The central banking warfare model is wearing thin. There are three things you can do: You can have war, you can have depopulation or you can have change. The voice you are hearing coming back from the BRICS, the voice you are hearing coming back from the Greek people is let’s try change. The IMF is saying . . . you know they have a point. Puerto Rico and Greece have rung that bell that says we have to create value in the real economy. You can’t eat it if you don’t grow it, and we can’t grow it if we are all engaged in disaster capitalism.”
So, could they crash the bond market by giving debt relief to overly indebted countries like Greece? Fitts says, “It depends on how you do it. In theory, yes, anything is possible. The big issue is you have been printing money and printing money and putting it into the bond market and not letting it get into the real economy. You get huge asset bubbles. You think asset bubbles are bad now, wait until you see that money come across. . . . This money is going to have to leave the bond market. It’s going to have to go into real estate. It’s going to have to go into equities. It’s going to have to build infrastructure. It’s going to have to do all these things and it can’t work, and we are going to have a mess if we don’t have the leadership to bring it out in a way that is going to be productive, which is possible. If you look at the leadership in the United States, that’s not the leadership to do that.”
On the deal to curtail Iran’s nuclear program, Fitts says, “I think Kerry and the G-7 did the right thing. This whole thing needs to de-escalate. This deal will bring the oil price down, and the Saudis are scared. . . . This is bringing another $20 billion a year on to the market in oil revenues.” I think this deal will not de-escalate violence in the Middle East. I say it will make a bad situation worse and violence will escalate. Fitts and I have a lively debate on this issue. It includes Israel, Saudi Arabia and other Arab neighbors teaming up against Iran over this this deal.
Join Greg Hunter as he goes One-on-One with renowned financial expert Catherine Austin Fitts of Solari.com.
(There is much more in the video interview.)
After the Interview:
Fitts sees the long term trend for the US dollar going down, but the US dollar may rise in the near term. She contends, “If you are worried about the US dollar, then we need less fighting and more building.” There is free information on the home page of Solari.com. Fitts also has a subscription service called “The Solari Report.” You can buy subscriptions by the month or by the year and you can sign up by clicking here.
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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.