27 votes

Catherine Austin Fitts: Attention If You Are In The Real Estate Market

This article by Ms. Fitts offers an unsettling outlook on QE3. What do you all think?

The Daily Bell - I used to have a deputy who said that the FHA mortgage insurance funds were where mortgages went to die. That was, however, before the creation of MERS, derivatives and the explosion of mortgage fraud during the 1990′s which in combination with the "strong dollar policy" engineered what I have referred to as a financial coup d'etat.

The challenge for Ben Bernanke and the Fed governors since the 2008 bailouts has been how to deal with the backlog of fraud – not just fraudulent mortgages and fraudulent mortgage securities but the derivatives piled on top and the politics of who owns them, such as sovereign nations with nuclear arsenals, and how they feel about taking massive losses on AAA paper purchased in good faith.

On one hand, you could let them all default. The problem is the criminal liabilities would drive the global and national leadership into factionalism that could turn violent, not to mention what such defaults would do to liquidity in the financial system. Then there is the fact that a great deal of the fraudulent paper has been purchased by pension funds. So the mark down would hit the retirement savings of the people who have now also lost their homes or equity in their homes. The politics of this in an election year are terrifying for the Administration to contemplate.

Various court squabbles over the MERS system for registering mortgages are also nipping at the Fed and Treasury heels. It is hard to win a presidential election in 3100 counties when multiple federal agencies are in the local courts trying to foreclose on half the county while supporting arguments that a national registration system is free to violate local property laws with impunity.


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.


Connecting the dots!


Fiat money by fiat government banksters.

and then you die

just one more reason why I say . .

all this blustering about romney falling and not having a chance is bullcrap!!
the gop is trying to muster EVERYONE to vote for romney under the idea that he's failing - not true.

Jackson County Georgia

War is an instrument entirely inefficient toward redressing wrong; and multiplies, instead of indemnifying losses.
Thomas Jefferson

This article is great, but

a better one was found in the comment section about Narco Dollars.

Don't miss the three part article written by Fitts in late 2001.

October 24, 2001

Narcodollars for Beginners:

How the Money Works in the Illicit Drug Trade

Part I in a Series
By Catherine Austin Fitts


October 31, 2001

Narcodollars for Beginners:
How the Money Works in
the Illicit Drug Trade

Part 2- the Narco Money Map


Narcodollars for Beginners
How the Money Works
in the Illicit Drug Trade
Part 3- Drugs as Currency


I am Ron Paul.

Great article.

Great article.

comprehensive planning power grab

Permaculture, Thank you for tying sustainable development into this. Sustainable development going by such names as comprehensive planning, smart growth, and Agenda 21 transfer property rights from property owners through and past their elected representatives to non-elected entities of stakeholders. These can be river boards, regional planning commissions, or foundations with the money to direct change. President Obama has begun directly funding regional planning commission thereby bypassing state governments of which regional planning commissions a part.

Can anyone explain these parts?:

"Watch to see what the renegotiation of federal tax policy and the reengineering of the federal budget in response to the "fiscal cliff" do to reposition housing and real estate prices and cost of financing for an inflow looking for large accumulations."

Is she making a tacit prediction here that the influx of foreign money seeking tangibles will re-inflate the housing/realestate bubble, thus making this a good time to buy?

Does she really just mean watch and see?

How do you guys read this?

Also, "is to continually offset monetary inflation with labor deflation."
Does that mean fewer jobs, or lower wages, both, or something else?


humanliberty - to answer your question

humanliberty to answer your question:

Labor deflation means that labor goes DOWN ( as it has for the last few years... shippend overseas) so that the money he pumps into the system inflates only the things that benefit the elites and the bankers.
If the common man benefited, he would get a better wage (like in the 1970s), and he would go out and buy stuff, creating demand that would drive prices higher, creating inflation.
This way, the inflation goes into tangibles (gold/silver/diamonds/paintings/stocks) as well as bail-outs for the favored ones, and not to us.
This way they can debase the currency in a sterilized fashion, while the nations debts get easier to pay with funny money.
Look at the velocity of money-it's at ALL TIME LOWS. By making sure the money goes ONLY where they want it (and not out into society for the "little people" they get low inflation regardless of HOW much money they print to do currency swaps to save Europe or anything.
We are being made money slaves, while getting nothing for it but ZERO interest on our savings or investments. NEVER has anything like this ever happened to the USA

it is called land grabbing

the famous Henry ford wrote about it in his book "the international jew" <-- he couldnt have made a more controversial title.

but any way, the point is to flood a particular quazi public sector with dollars, force credit and keep interest rates low to encourage borrowing.

here's the kicker,

in conjunction with "sustainable development" programs that are officially grabbing land away from people and preserving it for the state....

eventually the endgame is to see diversity around us but not to touch, because it is a public good.

no hunting
no trailing
no planting
no eating
no use

what is coming our way is a 40 billion dollar QE plan to keep housing public soas to insure the fait of HUD's new 'sustainable development" program

its about to get real

Whether you think you can or you can't, you're right. -Henry Ford

Look at a map of the west

Look at a map of the west that shows both the location and concentration of natural resources and the land that the government "owns". I'm sure no one will be surprised at the large overlap of the two. For some reason they don't control much land without heavy concentration of resources, strange.

Sounds About Right

But in the end I can't see anything but another bubble... Once interest rates go up again houses should become cheaper because fewer people will be able to afford the loan.

I can't remember the article,

I can't remember the article, however it stated that the government is now considering or has already started allowing large companies to buy up blocks of defaulted residential real estate in order to get it off the books. the problem with this is that these properties will be available only to select corporations and only in large blocks. This means that the average person will not be able to take advantage of the low prices resulting from this mess. It is basically another large scale subsidy/bailout to corporations. They made money in the boom, made money through the bailouts during the bust, and now they will make more money off of the bust by being granted more special privileges that will be paid for by the average person.

This is another example of the government policies that go very contrary to their stated goals. They say that they want more people to own homes, yet they block them from doing so during the greatest opportunity in recent history. Not that I ever believed their story.
The only way to return to stable housing prices is to allow the market to clear the houses at whatever price it may. This may mean that many people are underwater on their mortgages, however I think this short term correction, ending in more stable and realistic prices, is preferable to long drawn out market manipulation leading to overall market collapse.