Federal Financial Ignorance
By Catherine Austin Fitts - June 06, 2013

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

"It was 1989 when I became Assistant Secretary of Housing. I’m a great believer that the first thing you want to understand about an organization is the laws that describe your scope of work. What’s the law? What am I responsible to make sure happens? And then the second thing is how does the money work?

"So I read the laws relating to my position and what they said was that the Assistant Secretary of Housing, Federal Housing Commissioner, has sole fiduciary responsibility for the FHA funds, which means I was legally required to make sure that the laws related to the fiduciary management of the funds happened. … And what I discovered was that in the Single Family Fund we were losing $11 million a day. Now, under the law, our premiums are supposed to cover our expenses so that meant we were operating outside the law yet again. So I said, 'Look. All real estate is local. We have 80 field offices in 10 regions. I need to know where we're losing the money because I don't know what to do until I know where we're losing the money.'

"… Needless to say, a lot of the Washington lobbyists were not pleased with that result. The day I left FHA my understanding is all of the place-based reporting was cancelled, like that. It's a lot easier to steal without place-based transparency.

"If every American got financial statements, just like when I buy a stock I get an annual financial report from the company that I put money in. We put a lot more money into our government than we put into the stock market so if every American got a financial statement for their congressional district that showed the sources and uses of how all the federal monies were used in the area that they drive around and understand and know, most of this financial fraud would stop."

Please click on the image to view the full Solari video:

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