Catherine Austin Fitts is a distinguished American investment banker and former public official who held the role of Assistant Secretary of Housing and Urban Development under President George H. W. Bush. She proudly serves as the president of Solari, Inc. and publishes The Solari Report. Her impressive career in investment banking includes a notable position as managing director at Dillon, Read & Co. Furthermore, she established Hamilton Securities Group, Inc., where she has made significant contributions to financial and political commentary, addressing issues such as government fraud and providing insightful critiques of public spending.
We have a financial problem, we have a governance problem. So, FASB-56 went into position under a Trump administration. One of the first things I would do if I was coming in is I would end FASB-56.
Explanation of Monetary Inflation and Deflation
Okay, so after you publish the going direct reset, after you publish FASB-56, what happened? We had a pandemic and the Fed injected $5 trillion. And I’m gonna grossly oversimplify. The Fed injects $5 trillion, much of that money going to centralized players and Wall Street, and then it shuts down Main Street. So, you have fantastic monetary inflation, but you offset it with the deflation that comes from literally shutting down Main Street. It’s interesting, the Biden nominee for control of the currency, who didn’t get passed, had published a month before her nomination, an article in the Vanderbilt Law Review. And she said, the wonderful thing about central bank digital currency (CBDC) is inflation is no longer a problem. If you have inflation, you just freeze everybody’s bank accounts. Isn’t that wonderful? Okay, okay. So, central bank digital currency.
Understanding Central Bank Digital Currency and Who Runs It
Central bank digital currency (CBDC), the important thing to understand about central bank digital currency (CBDC) in an all digital financial system is it’s not a currency. It’s a control group. Now, the process to implement central bank digital currency (CBDC) around the world is being overseen by the Bank of International Settlements in Basel, Switzerland. And the Bank of International Settlements is owned by its members, the New York Fed, and the Fed are both, the Board of Governors are both shareholders in the BIS. 63 of the top central banks are in the BIS, and they are running a process with a major partnership with the Federal Reserve to implement CBDCs in their prototyping around the world. In 2020, October, 2020, there was a panel at the IMF on cross-border payments.
Jay Powell, chairman of the Federal Reserve was there. Augustine Carson was there. And Augustine Carson said the following, and I’m gonna play this for you in a second, but I want you to know I was basically raised and trained to be a central banker. I was asked to be a governor of the Federal Reserve and declined, but I was raised that way. And one of the things you’re raised to understand is you never, ever, you use pretzel talk. You never explain clearly what you’re gonna do. You know, you talk in circles. And this was the first time I had ever seen a central banker in English explain exactly what they were planning on doing and why. And I almost fell off my chair.And if you think I almost fell off my chair, you should have seen Jay Powell’s face. Okay, so here’s Augustine Carson’s 57 seconds explaining CBDCs.
Augustine Carson explaining Central Bank Digital Currency CBDC
On our analysis on central bank digital currency (CBDC) in particular for the use of general, to the general use, we tend to establish equivalence with cash. And there is a huge difference there. For example, in cash, we don’t know, for example, who’s using a $100 bill today. We don’t know who is using a 1,000-peso bill today.
A key difference with the central bank digital currency (CBDC) is that central bank will have absolute control on the rules and regulations that will determine the use of that expression of central bank liability. And also, we will have the technology to enforce that. Those two issues are extremely important and that makes a huge difference with respect to what cash is.
Bank of International Settlements Sovereign Immunity and Protection From Laws
One of the tremendous benefits that the BI has in implementing this is they operate under sovereign immunity. They are protected from, with rare exception, most laws and operate behind. They can keep anything on their balance sheet and keep it secret. So they are behind the walls of secrecy and they have established innovation hubs which also extend sovereign immunity to them. They have a committee at the BIS that designates certain financial institutions, payment systems, and insurance companies as systemically important institutions. For reasons I can go into in Q&A if you’re interested, we believe they’re extending sovereign immunities and that’s why certain institutions, no matter what they did during the financial crisis, don’t get prosecuted.
But this is a map from the BIS website of their innovation hubs at that time. Their partnership with the New York Fed is obviously a major one, the New York Fed being the leading shareholder, both the New York Fed and the Board of Governors. So the next video, very short, is Bo Li used to work at the Bank of China and now is the Deputy Managing Director at the IMF.
This was in 2023, last year. Bo Li was talking about the programmability of money. Okay, the programmability of money.
So let’s watch this.
Bo Li: Bank of China – The Programmability of Money
Finally, the third way we think CPDC can improve financial inclusion is through what we call programmability. That is, CPDC can allow government agencies and private sector players to program, to create smart contract, to allow targeted policy functions.
For example, welfare payment, for example, consumption coupon, for example, food stamp. By programming CPDC, those money can be precisely targeted for what kind of people can own and what kind of use this money can be utilized. For example, for food.
So this potential programmability can help government agencies to precisely target their support to those people who need support. So that way can also improve financial inclusion.
Government Programmability – Tracking you and Controlling You
So hold up on this one. We’re not gonna play it yet. So what does that mean? By programming your money in a system where we have the cloud and lots of software and AI, I can make a different set of algorithms and rules for every person in this room. I can track you. It’s the equivalent of putting, you know, round the clock Stasi teams on you, but they’re software bots and they’re AI. And I can make up social credit rules as to how you can and cannot use your money. And if you don’t accept my healthcare mandates or you don’t expect my spatial restrictions, I can turn off your money.
I can tell you where to go. I can tell you how to go. I can have absolute complete control of your life and I can do it economically because of an all digital system.
