AMERICAN ECONOMIC IMPLOSION /" financial coup d'etat"

indigobusiness (842 posts) Fri May-28-04 07:34 PM
Original message
Govt Fraud Exposed by Catherine Austin Fitts (listen to this)

Edited on Fri May-28-04 07:58 PM by indigobusiness
http://www.mysteriesofthemind.com/Archives/2004/asx/MOM20040520.asx

Ex-HUD Undersecretary, Catherine Austin Fitts champions the need for transparency in govt by exposing the rampant fraud and corruption she witnessed as an insider.

She comes in at about the 35 minute mark of this audio intvw.

Amazing woman...

$3.3 trillion missing from DOD

"Financial coup d'etat"

http://www.mysteriesofthemind.com/Archives/2004/asx/MOM20040520.
----------------
American Economic Implosion....


America's Black Budget & Manipulation Of Markets (continued)
by CATHERINE AUSTIN FITTS
<snip

when I was Assistant Secretary is, because there’s no transparency in how the money works by place for government money, there’s tremendous opportunities. There’s neighborhoods where, for example, HUD is spending $250,000 per unit to rehab public housing, but you can buy a rehab single family in the same 3 or 4 block area for $50,000. So, to the extent that you can reengineer government money within a place, there’s tremendous arbitrage opportunities if you combine that with financing places with equity. So we got very interested in doing that.

One of the things that happened was HUD later hired the company back on competitive contract, to help with $12 billion of defaulted mortgage auctions. HUD was the last of the RTC and the private financial institutions auctioned all their mortgages. But HUD was kind of the Johnny-come-lately, and so hadn’t done that, and we helped them do that between 1994 and ’95 & ’96. They auctioned successfully about $10 billion of mortgages. What happened in that process was we were able to get the recovery rates, which had traditionally been about 35 cents on the dollar, beyond the industry standards which was about 75 cents on the dollar, we got it up to about 70-90 cents on the dollar.

And then in 1996, were targeted by … the only way I can describe it, have you ever heard of the movie “Enemy of the State”?

JP: Oh sure.

CA: OK. Well I have someone who introduces me at conferences and says “This woman played Will Smith in real life.” Do you remember the role that Will Smith played?

JP: Oh absolutely.

CA: OK. Well what happened was we were targeted in a process where we went through a period of having 18 audits and investigations, and 12 pieces of litigation, and through that whole sort of enforcement process, the honest people were pushed out of HUD. And they pushed my company, and a series of other honest contractors and government officials out. And what happened in the year following that is HUD failed to produce audited financial statements, and reported undocumentable adjustments of $59 billion, that was in fiscal 1999. And throughout government in fiscal 1999 thru 2000/2001, there were reports of not only failure to produced audited financial statements, but about $3.4 trillion of undocumentable adjustments. Very, very significant. That works out to about $11,000 per American resident.
<snip>
http://www.conspiracyplanet.com/channel.cfm?ChannelID=116

"How the Money Works"
in the Illicit Drug Trade
Part I in a Series
By Catherine Austin Fitts
Special to the Narco News Bulletin
Narco News Publisher's Note: Catherine Austin Fitts is a former managing director and member of the board of directors of Dillon Read & Co, Inc, a former Assistant Secretary of Housing-Federal Housing Commissioner in the first Bush Administration, and the former President of The Hamilton Securities Group, Inc. She is the President of Solari, Inc, an investment advisory firm. Solari provides risk management services to investors through Sanders Research Associates in London.

"The Latin American drug cartels have stretched their tentacles much deeper into our lives than most people believe. It's possible they are calling the shots at all levels of government."
- William Colby, former CIA Director, 1995

http://www.narconews.com/narcodollars1.html

problem - not a real problem

Their are many accounting systems that use different EXPENSE AND INCOME AND ASSET AND LIABILITY ID's - and indeed have different definitions for each - so that the US Treasury accounting program can not match expense to bill/law providing funds.

The money is not stolen.

But it could be stolen - since without a good accounting system where suspense recon items that are written off via netting are minimal, it becomes very hard to find theft or misuse of funds.

The DOE mismatch was 500 million - and when they did clean up the accounting under Clinton, they found 2 thefts - one under a million - and another under 20 million. The GOP of course mis-represented the situation and pretended the problem had not been solved under Clinton (the final report was released under Bush)- and Rush screamed about 500 million - - sigh......

Did you listen to the intvw?
Astonishing...

The Defense Department can't account for a few trillion dollars either. We keep getting asked for billions for the war, and then when we pay it, we're told that the troops don't have bullets or toothpaste.

Makes me think of the way pickpockets work. One bumps into you, while the other lifts your wallet.

Only 9/11 was the bump, and the whole treasury plus a huge deficit was the wallet. HUD and Defense probably aren't the only branches of government that have managed to lose a few trillion here and there. The business of business is profit, and when you get a government that is inseparable and indistinguishable from business, the workers and taxpayers lose a few trillion, and the war profiteers profit by the same amount. Maybe that's why they're called profiteers. If HUD and Defense have gone to no-bid contracts for cronies, every other department probably has also. And that would include the Justice Department. If you think the courts can straighten things out, just remember who gave you this administration.

Previous Democratic administrations did not seem to realize how fully the right had taken over parts of government, like the Civil Service, for example, and merely slowed down the takeover instead of stopping it. Of course, if you control the Civil Service, you control most government employees, no matter who is elected. Reagan was careful to apppoint people dedicated to destroying the departments and agencies they headed, particularly those having to do with welfare and human rights. The incessant attacks on Clinton kept him from being able to recognize and do anything about the problem, and the minute * got in, the fox was guarding the henhouse again.

shape.

We never forced a common accounting system on each area - mush less one that traced back to the law / budget that said it was ok to spend the money.

made int he intvw...the enemy is us.

That is why we need to rape and pillage third world nations. There is no way that we produce what we consume, inequitable taxes, fraud, theft, war and narcotics subsidize our unsupportable credit structure which is always running in the red.

and it rings true.