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We Are Being De-modernized

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Are the United States now being de-modernized as the USSR was de-modernized in the 1990's? How did a former top Housing and Urban Development Secretary in the first Bush administration foretell our present financial crisis with details?

The following is a compelling story told in episodes.  It's a story told by Cathrine Austin Fitts who was Assistant Secretary of Housing and Federal Housing Commissioner at the United States Department of Housing and Urban Development in the first Bush Administration.
The story details her experiences since being Assistant Secretary which made her think in 2001 as she continues to think today that the financial collapse of 2007/8 was engineered. She even details some of the major methods.
(A video interview with Cathrine Austin Fitts on this topic is here: http://www.youtube.com/watch?v=u9dGHuRExiM )

Read these copy/pastes below, and if you want more detail go to each link of her multi-phase story that I piece together.
The following is from this first link and each section is linked individually. Jay


After leaving the Bush Administration in 1990, I started The Hamilton Securities Company in Washington, DC. I declined an offer from the Administration to be nominated as a governor of the Federal Reserve Board. My tour of duty in the Administration had persuaded me that new software, networking and telecommunication tools made it possible to build a new kind of collaborative economy based on knowledge as the principal wealth creating resource.
The first phase of Hamilton's business was to build the "know how" of prototyping the new tools sufficient to understand how to invent a new form of collaboartive organization and community venture capital.
To say that Hamilton's culture was unique, does not begin to touch on how magical it was to start, to build, to grow.
In late 1993, we were hired through a competitive process to help the Department of Housing and Urban Development (HUD) determine if they wanted to do with their $12 billion portfolio of defaulted mortgages.
As a result of this approach, the loan sales program was far more successful than anyone believed possible. Between 1994 and 1997, HUD sold $10 billion of mortgages, bringing their recovery rates from 35 cents on the dollar to 70-90 cents on the dollar, and generating $2.2 billion of budget profits used to fund the deficit and HUD programs.
Not everyone was happy. There is a large number of people who make money on neighborhoods not working. Traditional HUD landlords were losing control of properties where they had defaulted on debt to more aggressive competitors. HUD contractors losing servicing business were unhappy. The HUD and Department of Justice (DOJ) partnership in enforcement operations in the HUD Inspector General Office and General Counsel's office and DC US Attorney and DOJ Civil Division depended on the defaulted portfolio to make money on civil money penalties and seizures and were unhappy.
During this period (early 1996), I was taken aside by one of the partners of one of the largest HUD landlords, NHP, and was told "Well, we tried to have you fired through the White House, and that did not work. So now the big boys have gotten together and you are going to jail."

In the summer of 1996, we were targeted by the Department of Justice, working with the HUD IG's office and a private "snitch" who was a HUD contractor who was losing business as a result of the loan sale program and who had been fired by HUD for a failure to perform. Since then Hamilton and I have survived eighteen audits, investigations and inquires, and a wide variety of litigation, both offensive and defensives, some of which are continuing. To date, no wrong doing by Hamilton or me has been found....not even a parking ticket, despite being gone over by scads of auditors and investigators.

Hamilton and I have now been wiped out of approximately $6MM of cash, $250MM of equity and all my personal assets, including house, furniture, family land and heirlooms, art, books, etc. It was one of those horrible periods, when the bank and numerous other organizations and people decide to help the bad guys or to simply dump the good guys because it is too dangerous to do the right thing.

A summary of these events, including physical harassment and surveillance that we experienced, through March 2000 with a May 2000 can be found at: http://www.solari.com/gideon/legal/index.html

The proceeding attack upon Cathrine Fitts caused her some contemplation and I copy/paste below her later feelings from another link, http://www.dunwalke.com/introduction.htm

I decided to write “Dillon Read & Co Inc. and the Aristocracy of Stock Profits” as a case study designed to help illuminate the deeper system. It details the story of two teams with two competing visions for America. The first was a vision shared by my old firm on Wall Street — Dillon Read — and the Clinton Administration with the full support of a bipartisan Congress. In this vision, America's aristocracy makes money by ensnaring our youth in a pincer movement of drugs and prisons and wins middle class support for these policies through a steady and growing stream of government funding and contracts for War on Drugs activities at federal, state and local levels. This consensus is made all the more powerful by the gush of growing debt and derivatives used to bubble the housing and mortgage markets, manipulate the stock and precious metals markets and finance trillions missing from the US government in the largest pump and dump in history — the pump and dump of the entire American economy. This is more than a process designed to wipe out the middle class. This is genocide — a much more subtle and lethal version than ever before perpetrated by the scoundrels of our history texts.

This case study provides a detailed example of the financial kickback machinery that makes the process go.

(The other competing team with a vision for America, Cathrine mentions above, is described at this link, also the source of the above, just not included.  Here: http://www.dunwalke.com/introduction.htm Jay)

By 2001, Cathrine Fitts was looking at the world from an entirely different prospective and I copy/paste the remaining eposode with more at this link, http://solari.com/blog/?p=2058 :

In the fall of 2001 I attended a private investment conference in London to give a paper, The Myth of the Rule of Law or How the Money Works: The Destruction of Hamilton Securities Group.

The presentation documented my experience with a Washington-Wall Street partnership that had:

  1. Engineered a fraudulent housing and debt bubble;
  2. Illegally shifted vast amounts of capital out of the U.S.;
  3. Used “privitization” as a form of piracy - a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder.

Other presenters at the conference included distinguished reporters covering privatization in Eastern Europe and Russia. As the portraits of British ancestors stared down upon us, we listened to story after story of global privatization throughout the 1990s in the Americas, Europe, and Asia.

Slowly, as the pieces fit together, we shared a horrifying epiphany: the banks, corporations and investors acting in each global region were the exact same players. They were a relatively small group that reappeared again and again in Russia, Eastern Europe, and Asia accompanied by the same well-known accounting firms and law firms.

Clearly, there was a global financial coup d’etat underway.

The magnitude of what was happening was overwhelming. In the 1990’s, millions of people in Russia had woken up to find their bank accounts and pension funds simply gone – eradicated by a falling currency or stolen by mobsters who laundered money back into big New York Fed member banks for reinvestment to fuel the debt bubble.

Reports of politicians, government officials, academics, and intelligence agencies facilitating the racketeering and theft were compelling. One lawyer in Russia, living without electricity and growing food to prevent starvation, was quoted as saying, “We are being de-modernized.”


The mood that afternoon in London was quite sober. The question hung in the air, unspoken: once the bubble was over, was the time coming when we, too, would be “de-modernized?”

In 2009 — more than seven years later — this is a question that many of us are asking ourselves.

A video interview with Cathrine Austin Fitts on this topic is here: http://www.youtube.com/watch?v=u9dGHuRExiM

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