08 June 2013

C. A. Fitts On Debt, Centralization, Money, Equity Markets, Currency Wars, and Gold

Catherine Austin Fitts served as managing director and member of the board of directors of the Wall Street investment bank Dillon, Read & Co. Inc., as Assistant Secretary of Housing and Federal Housing Commissioner at the United States Department of Housing and Urban Development in the first Bush Administration, and was the president of Hamilton Securities Group, Inc., an investment bank and financial software developer.

Fitts has a BA from the University of Pennsylvania, an MBA from the Wharton School and studied Mandarin at the Chinese University of Hong Kong

The discussion gets particularly interesting after the 9 minute marker.

For your convenience here is a written summary of the main points of this interview.

I agree with much although it is important to remember that there are quite a few assumptions underlying it.

People are being 'conditioned' to prefer equities over other risk management products like bonds and commodities.

And this is not so simple a task because there is not one world government and one currency. We must never forget that this is where quite a few of the oligarchs, who are already thinking of themselves as borderless, are trending.

And as we all should always remember there are black swans and fat tails.

The word for today is enantiodromia. It pairs nicely with hubris.

In their pride people who have too much power and not enough restraints can go to far and achieve an effect that is unexpected and even the opposite of what they had intended.