Federal Finances and Law
By Catherine Austin Fitts - March 14, 2013

This week's Solari Story from Catherine Austin Fitts is titled "Federal Finances and Law." Here's a bit of the transcript:

"The federal finances are subject to constitutional requirements about how our money's managed. So the Constitution lays out a framework and essentially says all the money spent must be approved by Congress in appropriations. So there's a constitutional requirement and then there are laws promulgated by Congress related to how federal financial management must happen. So for example, when I worked in the Bush administration we had a law passed requiring that the federal government have audited financial statements. So a budget is your plan for what you're going to spend, Congress then appropriates and agrees to the budget and then your financial statements report what happened. So a budget is a prediction, a projection, and a financial statement is a report that says, "Okay, here's what we did."

"We were part of a group of people in the first Bush admin who got laws passed requiring audited financial statements. That requirement went into effect in 1995 and to this day, 2013, has never been performed. So every Secretary of the Treasury since then has produced a report saying, "Oh, we can't produce audited financial statements as required by law. Now, if you had a publicly traded company that refused to produce audited financial statements the SEC would shut you down, the exchanges would refuse to trade your stock, you couldn't borrow money, you couldn't access capital. …"

Please click on the image to watch the Solari video:

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