[OTE96] On the Edge with Catherine Austin Fitts

Posted on February 12, 2011 by stacyherbert| 67 Comments

Stacy Summary: Max interviews Catherine Austin Fitts. They talk revolution, Ben Bernanke and the US dollar being a unit of war.

67 Responses to [OTE96] On the Edge with Catherine Austin Fitts

MirrorMirror | February 12, 2011 at 11:19 pm |

….It’s official: as Egypt was burning, Mubarak was stealing the gold. When we reported, presumably jokingly, two weeks ago that the Egyptian Central Bank may have been plundered, it turns out we were pretty much accurate once again.…

http://www.zerohedge.com/article/reason-mubaraks-power-hand-delay-plundering-gold
dg | February 12, 2011 at 11:23 pm |

Bernanke also lies about consumer price inflation: just ignore food, housing, and energy because they are “too volatile” and voila – no inflation!
F. Beard | February 12, 2011 at 11:34 pm |

….It’s official: as Egypt was burning, Mubarak was stealing the gold. Mirror^2

Yet many here, including Max, perpetuate the myth that gold is money. By doing so you perpetuate the power of tyrants and the usury class.
MirrorMirror | February 12, 2011 at 11:36 pm |

@Part 3

Catherine & I are on the exactly same page here.

…. ‘been telling you guys ALL THE TIME that JPM is effectively the Govt.

So don’t hope too much for a Silver short squeeze or Comex default too soon !
Sorry to tell you .
Jayme | February 12, 2011 at 11:38 pm |

“…the Egyptian Central Bank may have been plundered…”

All the more reason to chase these despots into their hiding places and route them out and bring them to justice… even if it means toppling each and every despotic regime so they have no where to run.
Der Meister | February 12, 2011 at 11:38 pm |

Gold is gold and its´worth lots.
Silver is silver and it`s worth lots.
Fiat currency is backed by nothing and it´s a piece of crap paper launche by criminal banks.
Who the hell defends crap paper ?
MirrorMirror | February 12, 2011 at 11:40 pm |

PS@Part 3

… and I hope you all read that 2002 link which I’ve now probably posted 10x already :

http://www.zealllc.com/2002/jpmgrows.htm
HUH? | February 12, 2011 at 11:52 pm |

Catherine Austin-Fitts is a Hall-of-Honor member of Freedom-Force-International.

Max Keiser, I don’t see your name and glamour shot on that site. Are you keeping that a secret?
F. Beard | February 12, 2011 at 11:55 pm |

Fiat currency is backed by nothing and it´s a piece of crap paper launche by criminal banks. Der Meister

Fiat is backed by the taxing power of government; gold is a near useless commodity that the usury class has conned you into believing in. As for silver, why waste it in coins?

The solution to the money problem lies in liberty and proper laws, not PMs.
Marc Authier | February 13, 2011 at 12:45 am |

In G.O.D. we trust. Guns Oil and Drugs. That’s about it. Catherine hits as always on the nail ! Guns Oil and Drugs. GOD
El_Puerco | February 13, 2011 at 12:46 am |

yes is true I point it out too..+===={ http://maxkeiser.com/2011/02/10/without-persistent-and-rising-food-imports-egypt-cannot-feed-itself-it-has-managed-to-cover-up-the-shortfall-by-having-enough-oil-to-export-but-like-every-country-their-oil-reserves-are-finit/#comment-240888 }==
In both officially language of America…
Saludos…
John Q Public | February 13, 2011 at 12:47 am |

Refeshing Max. Did she say Ben is doing a good job at?
Divert attention as North America Wealth is Hijack?
This question why does North America watch and allows this to Happen?
Will the sleeping gaint awakes for it will be to late?
Just Questions but am i Blind………………
CJM | February 13, 2011 at 12:48 am |

Acutally, our freedom and liberty does lie in physical gold and physical silver as money for the following reasons:

Gold and silver cannot be reproduced like paper meaning that a financial system using gold and silver as money is less likely to be abused. The fiat currency system is open to abuse by corrupt politicians, banks & corporations. The fiat currency system can only work in a system where there is no corruption. We know that all humans are corruptible so we need a system that is less likely to be abused by corrupt individuals. It makes perfect sense that the constitution of the USA states that only gold and silver are money.

It is probable that both World Wars could have been avoided with a sound financial system. If Hitler could not borrow huge sums of fiat currency to finance his armies, he would not have gained so much power and the war would have been avoided or at least it would have been reduced to a much smaller scale.

Think about it. Sound money (gold and silver) curbs financial abuse.
Charlie | February 13, 2011 at 12:50 am |

Fitts it just brilliant. She knows what she’s talking about. Aces High!
F. Beard | February 13, 2011 at 1:12 am |

Acutally, our freedom and liberty does lie in physical gold and physical silver as money for the following reasons: CJM

Pure idolatry. Listen to yourself. Freedom and liberty are freedom and liberty. Period. But many gold-bugs wish to obtain government privilege for their shiny metals. That’s pure hypocrisy if one claims to be for freedom and liberty.
Courage and Bravery | February 13, 2011 at 1:15 am |

Ben Bernanke a Saint WHO KNEW!

That laundering of all that criminal fiat money proceeds from Bank and Finance fraud, Big Pharma drug running, CIA Drug running, Insurance Company Fraud, Rating Agency fraud, Political Backhanders and blackmail

would be a pre-requisite for SaintHood

Catherine must wear rubber in the bedroom. she loves PAIN.
Keehotee | February 13, 2011 at 1:17 am |

Seems to me that CAF is a person of the very highest integrity and courage. She deserves to be heard. She has won my love and respect.
kwazimota | February 13, 2011 at 1:35 am |

Miss Fitts just blew my hair back .the calmness of her delivery while describing americas current state of degeneration .wish she could of talked longer she is brave ,she knows these people personaly .
F. Beard | February 13, 2011 at 1:49 am |

Oh no,

CAF is a gold bug too?!

Another hero bites the dust. Sigh.
Keehotee | February 13, 2011 at 2:04 am |

Yes, she is also a devout Christian F. Beard, perhaps your model needs jiggering
F. Beard | February 13, 2011 at 2:11 am |

Another bone to pick with CAF, it is impossible for the US government to default on its debt since it is denominated in dollars UNLESS it chooses to do so. So then, why would the US CHOOSE to default? To avoid destroying the dollar is the only reason. However, the main destroyer of the dollar is the fractional reserve banking system. If for instance, the reserve requirement was set to 100% then the US Treasury would have to print like mad to avoid monetary DEFLATION.

So away with talk about the US government defaulting on its debt since it is not necessary to save the dollar.
F. Beard | February 13, 2011 at 2:15 am |

Yes, she is also a devout Christian F. Beard, perhaps your model needs jiggering Keehotee

One major sect of Christianity is into guilt and hair shirts and very little Bible reading. I used to be a member of it. It’s one reason the Irish are paralysed into inaction, a guilt and suffering complex. Suffer now or later in Purgatory is the reasoning.
Tao Jonesing | February 13, 2011 at 2:30 am |

The Fed abandoned the “dual mandate” in the early 1980s after Volker proved the Fed cannot control the monetary and credit aggregates.

You see, the actual dual mandate was to control the growth of monetary and credit aggregates. After Volker’s raising of the Fed Funds Rate failed (yes, FAILED) to halt credit/monetary expansion, the Fed went back to just twiddling interest rates instead of trying to manage the aggregates.

Federal Reserve Act Section 2A (added in 1977)

The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.
Tao Jonesing | February 13, 2011 at 2:39 am |

@Beardy,

The U.S. government will default on its debt once the major capital holders have divested themselves of treasuries, something that is most likely under way and will take a decade to accomplish. The U.S. government will do so in order to get rid of its obligations under the “entitlements” programs. Defaulting on the debt will crush the value of the dollar, not prop it up, because the U.S. dollar is itself a debt– a promise to pay– not actual money.

The way all this will play out is through another two or three financial crises that cause dumb money to run towards treasuries again, which will provide the opportunity for the major capital holders to sell off their high yield treasuries (e.g., those brought to you by QE2) at a premium
ehswan | February 13, 2011 at 2:40 am |

We now live in a lawless society.
This is interesting.
Perhaps this lawlessness has always been so.
Perhaps the Max is revealing this reality.
Gordo | February 13, 2011 at 2:52 am |

@ F. Beard

hair shirts ??
foober | February 13, 2011 at 2:55 am |

fbeard, it seems you have convinced yourself of your own destruction. YOu and your mates might take the high road and do something about that.
F. Beard | February 13, 2011 at 2:56 am |

Hair shirt
F. Beard | February 13, 2011 at 2:58 am |

@foober,

Please elaborate.
Rick | February 13, 2011 at 3:04 am |

They’re both right. But what CAF keeps coming back to is not sustainable. And more likely, sooner than later we’re all screwed.
Jayme | February 13, 2011 at 3:14 am |

Very nice interview Max. I think Catherine makes some very good points about the the tecnical nature of the beast. Her method of local community is a nice way to effect change.

I don’t agree that the people voted to continue the same party. They voted for hope and change. They got neither. Only the kleptocrats want status quo.

I do think she’s right that the dollar is currency because the military of the empire says it is but the value of money is only established by the variety, sustenance, and wide distribution of commerce. I think the military model of the dollar is over simplified and eventually brings collapse to any empire because it demands exponential exploitation and pillaging. Most people’s lives doen’t operate by rules of empire they operate by rules of clan and family. Catherine’s local campaign is a good model – imo.
aka_ces | February 13, 2011 at 3:25 am |

Max — Please continue this excellent interview soon.
Keehotee | February 13, 2011 at 3:26 am |

Holy shit (tee hee)- hair shirts – there is opportunity to learn something every day.
F. Beard | February 13, 2011 at 3:31 am |

The U.S. government will do so in order to get rid of its obligations under the “entitlements” programs. Defaulting on the debt will crush the value of the dollar, not prop it up, because the U.S. dollar is itself a debt– a promise to pay– not actual money. Tao Jonesing.

Good point. What the Repugnicans really want is to default on those Social Security bonds so private bondholders can continue getting paid.
jischinger | February 13, 2011 at 3:58 am |

I’ll push the button
jischinger | February 13, 2011 at 4:21 am |

I think she’s wrong on the topic of defaulting –

yes we’d default on the debt, but you better believe if I had that button the people who would keep states, counties and those on the line would be the wealthy and if they didn’t hand it over freely they’d get a free ride on the tumbrel.

____
Interesting… on the military

so it’s time to start driving the point home to those enlisted that they are puppets for corporations, not protecting the people – many already know this – but it has to come out in a big way – Someone popular and trusted has to say it very loud

then we can see when the people rise up if the boots on the ground will side with the people like they did in Egypt
sexton | February 13, 2011 at 4:24 am |

great guest and exchange

very revealing
Dark Markets | February 13, 2011 at 4:50 am |

YIKES, Catherine! I’m a HUGE fan of Catherine Fitt’s investigation & accounting of the tsunami of DRUG MONEY and other criminal syndicate money LAUNDERED in America every year (at Solari.com she basically asserts that the Goverment IS AWARE of EVERY DIME of laundered money – but TOLERATE, nay ENCOURAGE such corruption, because several billion dollars of dirty Mexican drug money going through Wachovia, SPENDS JUST LIKE good, ‘honest’ Bill Gates or Warren Buffet ‘legitimate’ profits. (yes, that is sarcasm!)

But here Catherine falls for the BOUGHT-and-OWNED corporate press/media theme of OBJECTIVITY or “impartialism” when she tries to defend what she acknowledges as Ben Bernanke’s KLEPTOCRATIC finance & economic extortion.

And it’s easy to prove her wrong in falling into this “mainstream media” pitfall –

just look at Social Security. Americans PAY nearly 15% of EVERY ‘EARNED’ dollar IN TO the SS trust fund. WHAT do they want to get out of it for all this money which (is supposed to) ACCUMULATES each year?
– When they retire, Americans want FOOD, BASIC housing (and transportation & energy needs), they want decent health care, and maybe a little extra spending cash besides. What Catherine isn’t taking into account, is how all that DIRTY MONEY __INFLATES__ the cost of these basic necessities, WHICH SHOULDN’T HAVE to cost a fortune! Retirement condo units in Florida are now going for $55,000 or less! Many seniors there DON’T OWN CARS. Their food bill should be minimal compared to working families, and IF they could fly to South America for free, they could get very good medical care for FAR LESS than they pay in America. (Many American retirees were moving to Mexico for these reasons, until the drug wars there started getting really ugly.)
In short, IF the American economy was more concerned with PRODUCING GOODS and SERVICES, INSTEAD of “profits” for LARCENOUS, EXTORTIONATE financiers, we would not NEED all that g__-d___ed DIRTY MONEY to PROP UP ‘the system’ !!

Catherine was really slipping here.

(not to mention, look at American health care: Both before and after Obama’s “health care [NON] Reform” atrocity, Americans were (and still are) PAYING A FAR GREATER PERCENTAGE of income for health care, than countries with FAR SUPERIOR delivery rates!!)
jischinger | February 13, 2011 at 5:06 am |

one more thing, regarding these spiritually enlightened people – if I’m understanding them tp be religious folk

sounds like they don’t believe in anything spiritual at all.
they are willing to allow corruptions and the whole list of seven deadlies because they don’t trust that godjesusallah will look out for them

which makes me wonder if there are actually more atheists in the US then we think

I think it might be interesting if after she asked the first question, ‘who is willing to give up on the government pay outs,’ she follow that question up with another, WWJD?

give um some cud to chew on
evolutis | February 13, 2011 at 5:19 am |

Thank you Max great show … smart lady, she had an automated checks & balance system in place and they rolled over and broke her, so she knows first hand the treachery of the inner circle.

Spiked a lot of good commentary … thanks for the schooling ya’all
Robert Mockan | February 13, 2011 at 5:23 am |

So, Ms. Fitts seems to believe Bernanke is actually doing a good job as far as his REAL job is concerned (bail the banks out and keep the front institutions that help maintain the empire in power), and that the US government global empire “financial” model is the use of (military) force to obtain and control resources. Also she believes US people have been made so dependent on government subsidy they really just want to see the money keep coming. None of what she says actually contradicts what Max is saying. When MAx says a kleptocracy is in control, that is including as a sub-set what Fitts says. Both understand that government has lost sight that the purpose of federal government in this country was NEVER to maintain the federal government, or build an Empire, but to defend personal liberty and freedom of the people IN this country. Period.
mbridges | February 13, 2011 at 5:29 am |

Thanks for this interview – really enjoyed it! I am looking forward to the next installment.
Larry | February 13, 2011 at 8:44 am |

statistics from just 2- 3 years ago ” Did you know that if we could reduce the world’s population to a village of precisely 100 people, with all existing human ratios remaining the same, the demographics would look something like this…

60 Asians

14 Africans

12 Europeans

8 Latin Americans

5 North Americans AND Canadians

Of all of the above, 82 would be non-white and only 18 would be “white”.

67 would be non-Christian and only 33 would be Christian.

5 would control 32% of the entire world’s wealth, and all of them would be US citizens

80 would live in substandard housing

24 would not have any electricity (And of the 76% that do have electricity, most would only use it for light at night.)

67 would be unable to read

1 (only one) would have a college education.

50 would be malnourished and 1 dying of starvation

33 would be without access to a safe water supply

7 people would have access to the Internet

If there is a meal in your refrigerator, if you are dressed and have got shoes, if you have a bed and a roof above your head, you are better off, than 75% of people in this world.

If you have a bank account, money in your purse and there is some trifle in your coin box, you belong to 8% of well-provided people in this world. “
japan power | February 13, 2011 at 9:19 am |

good interview. unfortunately there were some important aspects toward the game not discussed like food, education, etc. people don’t realized how bad their getting f-ed spiritual or not.
Der Meister | February 13, 2011 at 9:52 am |

F Beard.
My suggestion is that You buy yourself som USD Bull x 4 certificates that gives you leverage x 4 on a rising dollar price and stay long with these certificates.
You might make a fortune based on your love for and confidence in fiat currency.
Doug Graves | February 13, 2011 at 10:35 am |

Catharine Austin Fitts reminds me of the Oracle in the Matrix. You have to get her back…. regularly. She loves you by the way, much like the Aunt you avoid after she has had a few cherry Shnapps and staggers about the house, “Verr is my vittle Maxie?”
cgould | February 13, 2011 at 10:54 am |

c-a-f pt2:-
http://www.youtube.com/watch?v=QJFe6nxrVkA
c-a-f pt3:-
http://www.youtube.com/watch?v=SMVAo5O1Mt8
flicks | February 13, 2011 at 11:24 am |

Janet talked of ‘fraud as a financial model’ and Cathrine – its the war machine which enforces the financial model.
Both are brilliant women .
F. Beard | February 13, 2011 at 11:25 am |

My suggestion is that You buy yourself som USD Bull x 4 certificates that gives you leverage x 4 on a rising dollar price and stay long with these certificates. Der Meister

That would be hypercritical of me since I oppose leverage (fractional reserves).

As for loving fiat, I don’t. However, so long as we have government then fiat is the ONLY money form it should use UNLESS one seeks fascist privilege for what should be purely private money forms. I don’t. There are private money forms that do not require usury as PMs do. Then why should PMs be privileged?
Joe9083 | February 13, 2011 at 1:00 pm |

@LARRY.Nice one. You cant get planer than that
Bruce | February 13, 2011 at 1:24 pm |

Dark Markets sez:
Retirement condo units in Florida are now going for $55,000 or less.
———–
Holy crapola. That is cheap.
We are still in the housing bubble here in Australia. Add at least 100,000 to that.
kitty | February 13, 2011 at 1:36 pm |

Who really are those in debt? The banks or the people, the ‘rich’ or the poor?

The rich sit there expecting rent/interest and they account for this expectation as their present worth as they claim to be worth billions and trillions.

Now the banks brought this money into creation by borrowing from sovereign nations. Our currencies, our ‘collective’ promise to believe in the rule of law and money. Isn’t that the contract ? How should I say it? They went to central banks and borrowed money, they said ‘let there be money’ BUT they owe it. They used their ‘experts’ to make believe they could lend it to people who couldn’t create any more of it without getting it from someone else. The banks are in debt they got it wrong. The contracts they got into have fallen flat. THEY got the maths wrong.

In the UK our arguments talk about national debt and the need for cuts. Then there are arguments about bail outs. Isn’t there a lot of conflation here?
Dedo | February 13, 2011 at 1:42 pm |

Three cheers for K A F ,….

Very astute individual,….
y | February 13, 2011 at 1:47 pm |

What! You cut the show just when it was getting good. Grrrrr.
death to the NWO | February 13, 2011 at 1:49 pm |

I liked the Interview . But sorry to say to you that the Egyptian revolution achieved very little . Who is in charge now are some US agents …

http://www.rense.com/general92/icke.htm
YoLithos | February 13, 2011 at 2:47 pm |

Too much manure for my rig. Stopped watching it midway through the 2nd part.

If I get her drift, the essesnce of it is : “It’s ok for thieves to conspire infiltrate, corrupt, rob, despoil, pillage, ramsack, maul, mutilate, slaughter and make like wolves among sheperdless sheep in the night. That’s what they are. That’s what they do. Nothing wong with it. Get over it.”.

And : “The people are in on it. They’ll accept anything if they can keep on getting some crumbs now and then. And sit bovinely watching or listening to something in parlors, living-rooms, bars, bingos, and crack houses.”.

So, according to her, it’s ok for dictators, cronyoligarchs and the rest to siphon countries dry of the countries’ money – because they’re in constant danger of being offed by disgruntled associates, or victims.

Or are in “danger” of being arrested, tortured, tried, hanged, shot and quartered by the er, “vigorous” social systems that they themselves strove to stamp down and keep as nasty, brutish and as curt as possible.

It’s ok that thieve’s syndicates of the most priviledged and educated people the world over converge on destroying societies, keeping them archaic, shattered, backward, autocratic, brutal and parasitic. And living off the remains.

As per her argument, they’re just the same as all the poor people that end up in jails end dealing crack. Both have no civilized moral scaffolding.

Except that most of the former were born to violence, want, ignorance and despair. While the great majority of the latter had everything money can provide, including decent education and education in decency. Freedom from want. Stinulating entertainment. Travel. Toys. Information.

And those few that rose up from the dungheap quickly attained a position where they could have enlightened themselves. But preferred to continue as thugs, dictators, autocrats, crony vampires. As Shakespeare wrote “Aye. There’s the roob.”

Her comment about space was veeeery interesting, though. Several dystopic cenarios came to mind at that.
John Galt | February 13, 2011 at 4:22 pm |

Aid to Israel is ‘takings’. I like it.
Gerrit Govaerts | February 13, 2011 at 5:14 pm |

@Max
You should have poked her a bit on that space thing she dropped . WTF was that about ? I hope she’s not into tinfoil hats
Tears of the Moon | February 13, 2011 at 6:02 pm |

Max is the Messiah

http://www.youtube.com/watch?feature=player_profilepage&v=Zjz16xjeBAA
Zorro / London | February 13, 2011 at 8:43 pm |

Max, that woman you were interviewing.

Is she the original….Mrs. Sarah Lee…of cakes fame, or is she doing an older version of a Berlusconi with Ben Bernanke.

Sounds like it.

Not the greatest of guests.
Zorro / London | February 13, 2011 at 8:46 pm |

@ Bruce

Screw condo sale prices…..any nuclear fall out shelters or military hardened bunkers for sale?

Bet their price will spike just as PMs when the time comes
Mary Genoud | February 13, 2011 at 10:27 pm |

Let’s see if I got this right: the US while exporting inflation and financial instability thoughout the world is at the same time sucking illegally100 billion a year from the US economy to buy on the cheap assets in developing nations and space that have been further cheapened by US monetary policy, and the reason why NO American can find credit for themselves, families or business. This shopping spree is further augmented by the TRILLION PLUS dirty money operations that the US annually engages in (already a trillion $ back in 2000), which is invested everywhere on the planet, except in the US. I I would assume that investments in space refers to mining the bonanza of lunar H3 deposits-which is the ONLY non-radioactive fuel that exists for nuclear reactors, which NASA was ordered last year to pass on to private business by forcing them to drop NASA‘s low-orbit space programs.
Therfore if we did not suck 100 billion from the American economy and the TRILLION $ plus dirty money was invested in the US to provide credit and build infrastructure, the US actually would not have a financial problem, but in that case scenario there would be some private investors and businesses that would not be able to OWN the entire planet plus the moon‘s H3 fuel deposits. When is someone going to arrest these pyschos?
Kent | February 13, 2011 at 11:05 pm |

“Spiritually Evolved People”….I spit up my sandwich. LOL!
Nak | February 13, 2011 at 11:20 pm |

Revolution! A Year Zero revolution. Let’s purge all the intellectual types from our society.
Youri Carma | February 14, 2011 at 6:27 am |

What happened to Catherine Austin Fitts defending Bernankesan?

I she sick?
Youri Carma | February 14, 2011 at 6:31 am |

Austin Fitts is wrong! Obama Budget Cuts Target The Poor http://www.huffingtonpost.com/2011/02/10/obama-budget-cut-proposals-target-poor_n_821010.html?ir=Business

Obama: Slash Energy Subsidies for the Poor http://uk.finance.yahoo.com/news/Obama-struggles-balance-afp-2924290354.html

Let them freeze to death!
Eduardo | February 14, 2011 at 9:51 pm |

Fantastic Interview.
Money collaterised by war (Amazing)

Countries can pay debt by:
– Tax
– Debt
– Print Money
– Conquering other countries and seizing foreign assets

Way to go USA…