Cultural Impact on Governance and Finance

When I was in Washington, I had a great ally whose name was John Edward Hurley. And John Edward Hurley was giving a lecture at the Smithsonian Museum on Southern culture. And in the middle of the lecture, a young gentleman, approximately 25 years old, popped up in the middle of the audience, interrupted his lecture, and he said, Why is Southern culture relevant to me? And John Edward looked sternly down his glasses at him and he said, Young man, culture is the integration of the divine in everyday life. And I love that only John Edward, he delivered it with a much deeper southern accent than I can do. And when I think about what do we need to build a great governance system, what do we need to build a great financial system, one of the critical questions is who enforces? And the reality is, if you look at where our wealth comes from, all of our wealth comes from life. It comes from raising strong and healthy children who grow up and go off and do something or build family enterprises or invent new things. But it comes from a healthy culture. And I've been, I've always wanted to come to Hillsdale and I've heard about it. We have members of the Salary team who've come here. One, in fact, who came to see about going to college here. And so I've always wondered about Hillsdale, but as I've had the opportunity, and I have to thank Matt, who's done a great job of Matt Bell walking me around. As I see what's going on here, there is a profound understanding of the importance of building a healthy culture and of building the kind of culture that could support a great governance system and a great financial system. And it's really, I just want to thank you all for... allowing me the opportunity to speak to you today, but to visit Hillsdale to get a little bit more to know what you're doing and for supporting Hillsdale because you are supporting real solutions. We have to, when I was assistant secretary, the secretary said how are we going to solve this and I said you have to solve it by raising kids right one kid at a time and he said oh that takes much too long. So I want to thank you for investing in enduring solutions at Hillsdale. So one of the things we say at Solari is there's an official reality and then there's reality. And you need to know both. Official reality is for the cocktail party. Reality is for the investment of your time, money, and your risk management. Don't get those switched. Don't take reality to the cocktail party if it's not welcome. And please don't manage your time and money based on the official reality. We saw how that worked during the financial crisis. So I want to talk to you today about reality. I'm going to focus on some of the things, you know, they don't, when I was in Washington, you would, I was dealing constantly with the budget and sort of whacking up all the money. And because of what I did, I had to understand the whole budget, not just the housing and mortgage piece. And I'd whack up the money and then I'd watch the Sunday shows and they'd be talking about what was going on in Washington. And it was two different universes. One was the reality where they were whacking up the money, and the other was the official reality, and they had nothing to do with each other. So I want to talk, I want to get to the heart of what's going on in the money. The first thing I want to tell you is we don't have a financial problem. We have a secret governance system that is not transparent and is centralized in control. And in fact, what we're watching as it centralizes, a wonderful scholar from the... UK calls it Omniwar. This is the weaponization of everything. But we're seeing new and potentially wonderful digital technology used instead to centralize control in area after area in all aspects of our life. And the problem is not so much with the tools themselves. It's with the secret governance system and how they decide to use it. So I believe there is only one way to stop the move to total central control. And that is by preventing control of our digital transactions, our financial transactions. That's what I want to talk about today. So everything I'm going to say, one of the candidates and their economic staff, I was going back and forth trying to help them, and finally I said, I need to write a briefing about what's really going on in the federal finances, what the real problems are, and what we can do about them. So everything I'm going to touch on today. is much more thoroughly documented at the Solari Report. This is called the Solari Paper No. 1, and it's a briefing on what I call the financial coup d'etat. Clay referred to the 21 trillion missing. The federal government since fiscal 1998 has intentionally and systematically broken the laws related to financial management of both its credit and its appropriations. And that is what, if you look at anything that's driving what some people call the swamp and the corruption, it is operating the federal government outside of the financial management laws. If you go to our website on, we call it missingmoney.solari.com, but our website on missing money, we have seven briefing papers. I finally despaired of the journalist community understanding how the financial laws of the United States government work. So we spent a year and we wrote seven briefing papers on what are the monetary and fiscal laws of how the federal government should be operated. And in fact, it's a remarkably good infrastructure, a remarkably good legal infrastructure if we would only follow it. Sometimes reformers tell you we need new laws. No, we don't need new laws. We simply need to enforce the excellent laws we have, starting with the Constitution. Anyway, so that is there if you wanted a resource and you want to dive deeper. So I want to tell you a story, and I'm going to use a video to do it. This happened to me in 2000, and it's when I really got to the gist of the problem. of why we couldn't turn things around politically. So I'm going to tell you the red button story, but I'm going to start with a video. So go ahead if you could play that. The red button. You never want to have an epiphany in the middle of a speech, but I did. In the summer of 2000, I was speaking to a wonderful group of people called Spiritual Frontiers Foundation International. And they have a conference once a year to talk about how they can help evolve our society spiritually. So they're very dedicated, wonderful people. A friend of mine had asked me to give a speech called How the Money Works on Organized Crime. And in the middle of the speech, I was describing the fact that... a reporter who I was doing research for had been told by the Department of Justice that the U.S. economy and financial system launders $500 billion to a trillion dollars a year of all dirty money. So I said to this wonderful group of spiritually evolved people, what would happen if we stopped laundering $500 billion to a trillion dollars a year of all dirty money? So we had a little interaction and they said, well, you know, the stock market would go down because that money would leave and go to Hong Kong or Singapore or Zurich. And we'd have trouble financing the government deficit because we would offend the people who control that money and the accumulated capital for many years thereon. And so our government checks might stop or our taxes might go up. So I said, OK, well, let's pretend there's a big red button up here in the lectern. And if you push that button, you can stop all hard narcotics trafficking in your community, your state, your country tomorrow, thus offending the people who control 500 billion to a trillion dollars of annual dirty money. And so I said, who here will push the button? And out of 100 people, only one would push the button. And I said to the other 99, why would you not push the button? And they said, we don't want. Our mutual funds and our IRAs to go down in price, we don't want our government checks to stop, and we don't want our taxes to go up. And so that's what I call the red button problem. And what the Solari mission is, is about how do we turn the red button green? In other words, how do we make money pushing the red button? Because if we can make money pushing the red button, then we can push the red button. We're getting back to the slides. Okay, so the president's going to return to the Oval Office on January 21st, and he's going to, his political Karl Rove kind of guy is going to turn to him and say, go ahead to the next slide, he's going to say the American people just spent billions of dollars getting you elected, and now they want payback. They want their community block development grant, they want their COLA increase, they want their defense contract. And he's going to turn to his Secretary of Treasury, who's going to say, well, you better be nice to the people who control $500 billion to $1 trillion. That was in 1998. It's a much bigger number now, especially with financial fraud. You've got to be nice to those people. And so the question is, how is the president and their administration going to hit the red button or turn it green unless the states and the counties are prepared to do it with them? Because in fact, there's an incredible opportunity. If you re-engineer the federal money to optimize the economy instead of to institute central control, there's enormous wealth, new wealth that can be created, including with the blessings of new technology. But what you're going to do in Brooklyn is totally different than what you're going to do in Tulsa, which is totally different. I live in Hickory Valley, Tennessee. It's going to be totally different in Hickory Valley, Tennessee. It has to be decentralized. It has to be bottom-up. And of course, you know, what Washington always wants to do is centralize more power. I'll never forget being in a meeting with one of the secretaries, and we were meeting with somebody and trying to persuade them to go along with our legislative agenda. And he said, well, you know, I thought you're Republican. I thought they liked to decentralize. And one of the little policy wonks said, yeah, but we're here now. So, you know, again and again, Democrats or Republicans, that's what happens. Okay. So we published a study in 2018 called the state of our currency and it was an overview of the dollar system and what was happening in the dollar system and one of the things we pointed out was the ability of the dollar system to extract subsidy that could in fact pay back the the or support the body politic was waning. The other thing that was happening is as the 21 trillion had gone missing We had failed to provide, think of that as laundry out of our retirement funds. And as people started to retire, because you hadn't provided the money in our retirement accounts that had been promised, in fact, something had to be done. And in fact, what has been done is we are steadily lowering life expectancy and bringing lots of immigrants who put more money in the system. And that is delaying the balance of the books. So... Essentially, what we said is the system is long in the tooth, and either the subsidy has to be cut or changed, and the danger is the central bankers will go to a system of total control, which is what is happening. The next thing we published was something about the going direct reset. Who here has heard of the going direct reset? Okay. The World Economic Forum calls it the greater reset, but in fact, In the August of 2019, the central bankers met at Jackson Hole where they meet once a year and they reviewed a plan prepared by a group of retired central bankers through the BlackRock Investment Institute that laid out a plan on how you would reset the global financial system. What we see throughout history, we have a model called central banking warfare. The central banks print money and then the military and intelligence agencies make sure everybody takes it, and you keep the system liquid. And essentially what you see if you go back through history, every 80 or 120 years, you do a reset. It's like flushing the system. And oftentimes what happens is you also move the currency system. So sort of the period of the Spanish flu was the last time we saw a major reset when the dollar, we went from a pound sterling system to a duopoly between the pound sterling. and the dollar and then after world war ii the dollar became the dominant system so this is the real reset um and you can find everything at solari that include included we did a piece on cbdc because part of the difference this is the most this is a completely different reset than what we've ever seen and that is because an all digital technology an all digital monetary system gives you the ability to do something very radical, and I will talk about that in a minute. The other thing that happened, remember, does everybody remember the Kavanaugh hearings? Very salacious, very entertaining, very interesting, very galvanizing. While that was happening, the Republicans and Democrats, the House and the Senate, and the executive branch agreed to something called Federal Accounting Standards Advisory Board Statement 56. Doesn't that sound really boring? And what I call it FASB 56. What FASB 56 did by administrative policy is said the federal government doesn't have to obey the laws and the provisions of the constitution related to financial management. It doesn't have to obey the financial management laws and it doesn't have to obey the financial management regulations. Now remember we hadn't been obeying them since 1998 or even really trying. But literally they adopted an administrative policy that codified the financial coup that was happening. And what they said was a secret group of people. by a secret process could take portions of the federal finances balance sheet and income statement expenses and take it completely dark by, again, a secret process. And if you bring in the classification laws as well and the waiver powers of the national security director, that not only applies to the 24 covered agencies and 100 plus commissions, panels, and other organizations of the federal government, it also applies to the big banks and to Fendt contractors who do business with the federal government. So what that means is, if you're an investment advisor, you look at the stock market and all the large cap stocks and the big bond issuers, their finances mean nothing. I no longer look at the financial disclosure of the U.S. government because it's entirely meaningless since fiscal 2015, which is the last time we calculated. The 21 trillion. Interestingly enough, we've talked this in the last two days about the debt problem when we did the full survey that documented the 21 trillion missing from DOD and HUD. That was done by a wonderful professor from Michigan State University, Dr. Mark Skidmore, and his students. When we published it, guess what the outstanding debt of the United States was? 21 trillion dollars. 21 trillion of undocumented adjustments, 21 trillion dollars of debt. So again, we don't have a financial problem, we have a governance problem. So FASB 56 went into position under a Trump administration. One of the first things I would do if I was coming in is I would end FASB 56. Okay, so after you publish the going direct reset, after you publish FASB 56, what happened? We had a pandemic and the FUD and the Fed injected $5 trillion. And I'm going to grossly oversimplify. The Fed injects $5 trillion, much of that money going to centralized players and Wall Street, and then it shuts down Main Street. So you have fantastic monetary inflation, but you offset it with the deflation that comes from literally shutting down Main Street. It's interesting, the Biden nominee for control of the currency who didn't get passed had published a month before her nomination an article in the Vanderbilt Law Review, and she said the wonderful thing about central bank digital currency is inflation is no longer a problem. If you have inflation, you just freeze everybody's bank accounts. Isn't that wonderful? Okay, okay. So central bank digital currency. Central Bank Digital, the important thing to understand about Central Bank Digital Currency in an all-digital financial system is it's not a currency. It's a control grid. Now, the process to implement Central Bank Digital Currency around the world is being overseen by the Bank of International Settlements in Basel, Switzerland. And the Bank of International Settlements is owned by its members, the New York Fed and the Fed are both, the Board of Governors are both shareholders in the BIS. 63 of the top central banks are in the BIS, and they are running a process with a major partnership with the Federal Reserve to implement CBDCs and their prototyping around the world. In 2020, October 2020, there was a panel at the IMF on cross-border payments. Jay Powell, chairman of the Federal Reserve, is there. Augustine Carsons was there and Augustine Carsons said the following, and I'm going to play this for you in a second, but I want you to know I was basically raised and trained to be a central banker. I was asked to be a governor of the Federal Reserve and declined. So, but I was raised that way. And one of the things you're raised to understand is you never, ever, you use pretzel talk. You never explain clearly what you're going to do. You know, you talk in circles. And this was the first time I had ever seen a central banker. in English explain exactly what they're planning on doing and why. And I almost fell off my chair. And if you think I almost fell off my chair, you should have seen Jay Powell's face. Okay, so here's Augustine Carson's 57 seconds explaining CBDCs. Our analysis on CBDC in particular for the use of general, to the general use, we tend to establish the equivalence with cash. And there is a huge difference there. For example, in cash, we don't know, for example, who is using a $100 bill today. We don't know who is using a $1,000 bill today. A key difference with the CBDC is that central bank will have absolute control on the rules and regulations that will determine the... Use of that expression of central vent liability and also we will have the technology to enforce that. Those two issues are extremely important and that makes a huge difference with respect to what cash is. One of the tremendous benefits that the BI has in implementing this is they They operate under sovereign immunity. They are protected from, with rare exception, most laws and operate behind. They can keep anything on their balance sheet and keep it secret. So they are behind the walls of secrecy, and they have established innovation hubs, which also extend sovereign immunity to them. They have a committee at the BIS that designates certain financial institutions, payment systems, and insurance companies. as systemically important institutions. And for reasons I can go into Q&A if you're interested, we believe they're extending sovereign immunities. And that's why certain institutions, no matter what they did during the financial crisis, don't get prosecuted. But this is a map from the BIS website of their innovation hubs at that time. And their partnership with the New York Fed is obviously a major one, the New York Fed being a leading shareholder, both the New York Fed and the Board of Governors. Okay. So The next video, very short, is Bo Li, used to work at the Bank of China, and now is the Deputy Managing Director at the IMF. This was in 2023, last year. Bo Li was talking about the programmability of money, okay? The programmability of money. So let's watch this. And finally, the third way we think. CBDC can improve financial inclusion through what we call programmability. That is, CBDC can allow government agencies and private sector players to program, to create smart contracts, to allow targeted policy functions. For example, welfare payment, for example, consumption coupon, for example, food stamp. By programming CBDC, those money can be precisely targeted. for what kind of people can own and what kind of use this money can be utilized, for example, for food. So this potential programmability can help government agencies to precisely target their support to those people who need support. So that way can also improve financial inclusion. So hold up on this one. We're not going to play it yet. So what does that mean? By programming your money in a system where we have the cloud and lots of software and AI, I can make a different set of algorithms and rules for every person in this room. I can track you. It's the equivalent of putting, you know, round-the-clock Stasi teams on you, but they're software bots and they're AI. And I can make up social credit rules as to how you can and cannot use your money. And if you don't accept my healthcare mandates or you don't accept my spatial restrictions, I can turn off your money. I can tell you where to go. I can tell you how to go. I can have absolute, complete control of your life. And I can do it economically because of an all-digital system, and we'll talk about that in a second. Now, the Fed is—the financial train tracks of the Fed that our transactions run on are operated by 12 private banks owned by their members. The lead flagship is the New York Fed, of course, but you have 11 other banks around the country and then offices within those jurisdictions. Those banks are run by Fed presidents. One of them is Neil Kashkari, who was at the Treasury under Hank Paulson during the bailouts. He's now the president of the Minneapolis Fed. Last year, he was asked about CBDC at a conference in Columbia, and here's what he said. So go ahead and play that video. Seriously, so what is it that a CBDC could do that Venmo can't do? And all I get is a bunch of hand waving. I get a bunch, well, maybe it's better for financial inclusion. Maybe it's better for cross-border remittances. Maybe. Is there any evidence that it is? And they say, well, what about China? China's doing it. Well, I can see why China would do it. If they want to monitor every- One of your transactions, you could do that with the central bank digital currency. You can't do that with Venmo. If you want to impose negative interest rates, you could do that with the central bank digital currency. You can't do that with Venmo. And if you want to directly tax customer accounts, you could do that with the central bank digital currency. You can't do that with Venmo. So I get why China would be interested. Why would the American people before that? Okay, so let me explain what's happening. Back to the next slide. I need to click that? Yep. Okay. Okay. So, since 1913, our governance and management system in the United States and most of the Western democracies has consisted of private bankers running monetary policy and the people's representatives, the legislature and the executive branch who works and... reports to them and follows their, implements their laws. It's a balance of power between the people and the bankers. And that is how our republic has more or less functioned for many, many years. The process began after World War II to start to embed more and more secret avenues for secret money within the budget. That's where the trouble started. There's a wonderful documentary that made in the Netherlands two years ago called State of Control. And it explains sort of the whole history if you're interested and there's a lot of history at missingmoney.solarity.com. But suffice it to say what has happened is and it started in 1997 in my opinion and the planning started before then. A decision was made by the central bankers to literally assert control of the entire fiscal line. Because if I can use AI and software to implement a digital ID and an all-digital monetary system, and I can manage that centrally, just as Augustine Carson's just told you, he can make the rules and enforce them centrally, then I, as the central bankers, can assume not just control of monetary policy, but fiscal policy as well. Essentially, I can just cut out Congress and I can cut out the executive branch. Now, interestingly enough, we see the new administration saying they want to file all the civil servants. Civil servants are the people who obey Congress's rules and report to Congress. You shift them out and you put in big tech contractors and defense contractors, and they're going to report to the central bankers and the intelligence agencies who work for them. So when I was assistant secretary of housing, I used to have month-long fights with the defense contractors to get the data I needed to just... See if my programs were in compliance with the law or get them into compliance with the law. I have story after story of my war with the big corporate contractors. In 2012, when the new populist government came in and wanted to change policies, they discovered their taxes were collected by private contractors who reported to the ECB and they couldn't control their own tax collections. And that's what happens when you use digital technology. in an all-digital monetary system to literally institute money that can give the central bankers at a very central level complete control of fiscal policy. That is the danger, not just of CBDC, but of a private system that does the same. So we see people talking about, well, let's use currency. Let's use private crypto. Interestingly enough, the central bankers still have legal obligations of transparency. To the Congress, they are a creature, they were created by Congress. They have transparency obligations and Congress can still change their authorities and powers. And before this system rolls out, the central bankers would love to take the Fed wire private and do this all privately. And that is even more dangerous and much worse because then you're talking about parties running it. on a private basis that have absolutely no obligations under the Constitution to the people or their representatives. So at the heart of this debate is who's going to control the fiscal line, taxation, who's going to control taxation and how our money is spent. And I assure you, if you love freedom, you want to make sure the people's representatives continue to lead and manage the fiscal line of the House. And that is why you want to stop. a digital ID and an all digital monetary system, whether it's a public crypto CBDC or private. So let's just look at the next slide. I call this the 12 steps to total control. If you walk around your life, your life is being digitized. Your equipment in your home is being digitized. Your car, I just rented a new car. I had to put post notes all over the front. It was so digitized and flashing at me. But your transportation is being digitized. Now the BIS is running a process to create A complete inventory on all the assets in the world, digital assets, and they're going to tokenize them. We have smartphones, telecommunications, surveillance. All of these can be very invasive, and it's amazing. I spend so much time in my life with people saying, well, you know, I can live with a smart meter, it's really not that much of a big problem. Or I can live with my, I like my smartphone, it's really convenient. And, you know, why do you make such a fuss about QR codes? They're irritating, but I can live with QR codes. Here's the thing on all of those things. The problem is not each individual one. The problem is the day you implement a digital ID and you implement an all-digital monetary system, guess what? It synthesizes into one integrated system, and your home, your car, your community become a digital concentration camp. So let's... Let's go back and look at what the pandemic looks like. If I say you're going to lock down and you can't leave your home except on Tuesday and Thursday to go grocery shopping, your money won't work outside your home. If I say, you know, I don't want you driving anywhere, you know, I can turn off your electricity. You know, I can stop your electric car from working. Some people say you can turn it off remotely. So I have... extraordinary control, if you misbehave, I can cut or turn off your money. So we all know the story of the Canadian truckers. We're talking about building a system that allows the Canadian truckers to, you know. Now, when the World Economic Forum says it's 2030 and you have no assets, how are you going to operationalize that? Well, I'll tell you how you're going to operationalize that. If you have total financial transaction control. You can pretty much figure out how to inflate anybody's assets or even take them. I often have people say, well, I have no assets. I don't really care. I say, you have kids. They can take those kids away. Or they can mandate where they go to school. Or they can mandate their health policies. Okay, so what can we do? There's a huge amount we can do. I dare say if I collected up every portfolio, And every retirement savings fund in this room, of everybody sitting here, if we could create an aggregate balance sheet and financial statement, guess who's financing the control grid? We are. We're investing in the companies building the control grid. Of course, our taxes are financing the government to build the control grid. If you look at the banks we deposit our money in, we're We're banking. The bank that did all the Madoff fraud and was in complete control of the Madoff fraud, we keep banking with them. Our message to the companies building the control grid, you know, who are really running the government is, you know, as long as we get cut in for a piece of the action, we'll support you, okay? Now, I have to tell you, if everybody got up tomorrow and said, you know, the New York Fed is leading this, we are pulling all of our money out of the New York Fed beds tomorrow, we've had it, there would be a revolution. I can't tell you how much power we have as individuals. Control and freedom happen one person at a time. And if you go through your balance sheet and your financial statements or your actions. So if you come into Soleri, one of our taglines is, who's your banker, who's your farmer, where's your money, and are you supporting your local sheriff? Okay, the power is not delegated to the federal government or reserved to the states. And that is a provision that every country in Europe has spent a lot of time. Networking and working in Europe, I live in Europe half the year, they would do anything to have our Constitution. They are so jealous. But the powers not delegated to the Federal Reserve are reserved to the states. And the states have the power to do a great deal to stop this. And they are acting and they are moving. And a lot of the freedom fighters at the state level are very enthusiastic about what's happening in terms of the Republicans taking control in Washington because that gives them... Far more support to do something, so we have a real window of opportunity. We just published something called What the States Can Do, Building the Legal and Financial Infrastructure for Financial Freedom. We have a memo, and all of these were produced and written for state government officials and legislators. What is financial transaction freedom? what threatens it and what can we do about it and why a sovereign state bank would be good for Tennessee. A wonderful study by Richard Warner, top academic scholar in the world, I believe, on central banking and banking. There are many solutions and there are now people in states who know what to do and are doing that and they need your support. And I have to tell you, if the freedom fighters at the state level can get your support, and here's what it's going to come down to. We did a backcasting on the Salaria with a group from North, anybody here from Idaho, from Northern Idaho? They have the most wonderful legislators in Northern Idaho. We did a backcasting and one of them said, look, I really want to, I really want to support the Constitution and I really want to enforce the Constitution, but every year we send a dollar to Washington and then we get a dollar and 19 cents back and my constituency wants the 19 cents. And that 19 cents buys us out of the law, outside the law, which is why I say instituting the financial management laws is one of the most, if we want to be serious about turning the swamp, you know, that's item number one. I just had a great meeting with Dr. Mark Skidmore. We were in Grand Rapids for a wonderful meet and greet. And he said, you know, a lot of times I feel like I'm up here on the 50th floor doing window dressing and down in the foundation, they're digging a hole and the building's going to fall over. So that's why we have to get deeply into where's the money and what we do about it. Okay, so we were talking about currency, but I want to leave you with this message. Because remember, we don't have a financial problem. What I will tell you is if we were free to re-engineer the federal flows and come back into compliance with the law, particularly with the blessings of new technology, the wealth on this planet could be... So many multiples of what it is now. Words cannot express to you how expensive tyranny is. It is a miracle that we have done this well despite the drain of the tyranny. It's quite remarkable. And if you look at all the simulations I've done of the federal finances over the last 20 and 30 years, you know, the price of tyranny is beyond what any of us can imagine. So if we can turn this around, the opportunity is there. There's no financial problem. At the root of this, it's a political problem, it's a governance problem. It's why I love with a school here that's, what does it mean? It's got leadership in the title. That's the exact important thing. But I want to leave you with this quote, which comes from a Swiss doctor who's trying to build parallel new systems in Switzerland. He says, the currency of the future will be relationships of trust. I litigated with the Department of Justice for 11 years, and when it started, they tried to cut off all my income and all my credit and take all my assets. It was quite a war. And I had an uncle, and I sold him a piece of our family farm to finance some of the attorneys. And sure enough, the inspector general calls him and threatens him. He says, your niece is a criminal, and you shouldn't help her. And then... And they were asking for finances on her family farm. And he said, well, I'll give you all the finances, but I need a written letter from my attorney. I just want to make sure this is clean. So at 9 o'clock at night in Portsmouth, New Hampshire, they show up with three FBI guys and a guy from the HUD IG with a subpoena, just trying to scare him to death. So our family had a big meeting and said, you know, should we cut her off? You know, because we don't want these guys coming after us. And my uncle said, well, you know, She helped everybody all along, and so she's always helped us. I'm not going to cut her off. It turned out I'd never done the numbers. But in this process, what I had discovered is over the prior 20 years, I had lent or gifted to family and friends a quarter of a million dollars. And I litigated with the federal government for 11 years, and over the next 11 years, you know, everybody got together and said, well, I guess she needs some money back. So they got together, and I didn't count it up until we won the litigation, and they owed my company a great deal of money, so I got the money. And I was trying to pay everybody back, and I did the calculations, and I realized over that 11 years, I had been repaid or gifted exactly to the penny, $250,000. And I would never have made it if it hadn't been for those funds. And my CPA, when we got the money in, she said, okay, you know, you stripped out. I had to play a, I had to cancel. They put my 401k under audit so I couldn't use it to finance the company. So I busted it, paid $225,000 in taxes, and used the remaining money for just make work compliance. It was sort of a dirty trick they do to you. And if you've been watching Trump, you learn a lot about how to do it. how the game is played. But anyway, she said, let's fund up the 401k. And I said, I'm never going into business with the federal government again. We're going to take that 500,000 and I'm going to bonus it out on the People Bank because that's the only bank I trust. So the question when people ask me how they protect their assets, my question to you is the next four to eight to 12 years is going to be rocky. Who can you count on? Who's going to be there for you? Who in your family? your children. You know, I used to have investors tell me, I can't, you know, my financial planner says I need at least $25 million in my brokerage account, so I can't afford my kids to go to college. I can't help them, and I can't help them buy a house. I said, you don't understand who's going to be there who you can count on. That's who you've got to finance. So are we financing the control grid, or are we financing the future of human civilization or freedom? If you're here, You're making a mighty contribution to the future of freedom because you're supporting Hillsdale. So ladies and gentlemen, thank you for the opportunity to be here today. Thank you for the opportunity to have this conversation. We have a little bit of time for Q&A. Thank you, Mrs. Fitz. We now have time for Q&A. If you have a question, please make your way to one of the microphones. Student questions will be given preference. Thank you. Thank you for this report. It's very informative. You can see a lot of people came because we want to hear what you have to say. This may be a difficult question to answer, but for you, maybe not. A lot of things. has been said about Elon Musk coming in and cutting the national budget, finding ways the government can save money. Can you foresee that touching any of the hidden accounts, the dirty money? So Elon Musk is a defense contractor. So if you listen to much of the discussion, the criticism is the government's been run by defense contractors and we need to change. But if you look at who we're bringing in, whether it's Peter Thiel and Palantir or it's Elon Musk, we're bringing in sort of defense contractor 2.0. So right now, Elon Musk is a very fashionable character. I think he knows nothing about the nuts and bolts of operating government successfully. That doesn't mean he can't bring innovation and creativity to the table. But if I told you I was bringing in a defense contractor from Silicon Valley to do neurosurgery on your children, how would you feel? Right? Okay. So there is something to be said for people who understand the federal bureaucracy is very complex. And if you take a hatchet to it, you can do more harm than good. And you can also help the deep state. So if I wanted to put the central bankers in control, I would replace the civil service with all big tech and all defense contractors. In fact, they're already in place. You have Amazon running the CIA cloud with the 17 intelligence agencies all in that cloud. You have them now over at DOD with Oracle and Google. You can literally, if you get rid of the civil service, you can re-engineer the entire federal government, essentially to report to the central bankers. Now, there's been a tremendous corruption of the civil service over the last 10 to 20 years, but they can certainly be reformed. And huge amounts of responsibility can be delegated to the local governments and decentralized. So there's a great deal that can be done to re-engineer. government in a way that's very efficient, good for everybody, leaves the people's representative in charge of fiscal policy. Will Elon Musk do it? I don't know. I'm a skeptic. I'm not an Elon Musk fan because anybody wants to put a mesh network in the back of my head and hook me up to his satellites. I mean, let's go back to this. I just want to go back to this chart. Okay. So we have the digital ID. We have the all digital money. And with a mesh network in the back of my head, hooked up to a satellite, you know, I think we know where that's going, okay? So I can't say I'm enthusiastic about that process now. If it's a transparent process, there are many great things that an Elon Musk could say and do, and they're worth a discussion, as long as the changes are made in compliance with the Constitution. I have not heard one person on the transition team talk about FASB 56 and taking the book stark, or talk about bringing us back into compliance with the financial management laws. And what I will tell you is that until and unless we have that conversation and do that... This is all sort of a coup. Okay, now, I just want to bring something up. Right now, there is a tremendous effort to sell conservatives and the heartland on a digital ID by telling you that that's how we solve election fraud and immigration. And what I have to tell you is we had great border control and we had good elections. before digital technology existed, okay? So don't fall for it, because we don't need it for elections. We don't need it for the border. It can be useful. There's nothing wrong with it. But if you are buying into, you know, the 57 varieties of marketing the digital ID, that is what the next step is. And if they get that, they're very close to getting the whole shebang. Can Elon Musk come up with some great ideas? He apparently, I just saw a headline, he's proposing that we stop funding the WHO. What a great idea and a great money saver. So I think I told everybody on November 6th, the campaign starts on November 6th. We have to campaign every day from here on out for freedom. And it's funny, Congressman Massey, who I absolutely adore, he's constantly saying shut down the Fed. And I'm always saying to Congressman Massey, wait a minute, who gets the Fed wire number one? And number two, if you shut down the Fed before you get the $21 trillion back, they get to keep it. So don't help them. And he was a great, we were at a conference together at Polyface Farm, and he said, we should shut down the Fed. And then he looked over at me glaring, and he said, after Catherine gets her money back. Does that answer your question? Okay. Okay. Thank you so much for all of the information and creating such a great awareness in this space. And I personally am in awe. You shared some ideas about what we can do, you know, develop close relationships that we may need over time, support Hillsdale. You gave some other ideas about states doing work. Are there, like, what three things, aside from those, I mean, are there advocacy groups or to learn more about this? Yes. So there are tremendous numbers of things you can do. And that's why I referred you to, I want to stop CBDC, what can you do? Or the financial transaction memo, because there are lots and lots of lists. And it's important that each of us do what we're called to do, and we feel comfortable doing. And there are many things. The first thing you can do is prayer. So I really believe in the power of prayer. And when this many people have to gather and work together, prayer really, it just really helps. So the first thing I would do is pray. The second thing I would do is I would look at your finances and make sure your finances are protected from the evildoers, okay? You need to be strong, and that means you need to strip out of your life. You need to stop doing business with criminals, and you need to stop financing criminals, okay? So you need a successful, excellent bank that's not a criminal. You need to make sure your money's going into things that you're proud of and feel comfortable with, and that's a matter of going through your finances. We did a great financial rebellion on CHD called how to preserve your cash in 2022 and then another one on how to preserve your cash in 2023. One of the things I will tell you having worked with many families is there is an underinvestment in this country in what I call living equity. Okay so all wealth comes from life it comes from strong healthy kids it comes from the soil it comes from you know the living things around us and Then it comes from great family enterprises that do something useful for many decades and generations and creates that wealth. And everybody has an opportunity in their life to invest in the living equity around them. So one of the most important things is how can you build a healthy, local, fresh food system? And that's not necessarily to make money. That's to make sure that you're not poisoned. The deterioration in the food system in this country is scary. And unless we build, you know, healthy land, rebuild the soil, and really build up regenerative farming and local food markets. The last thing you can do is... We have a wonderful piece at Saliri about how to get to know and support your state legislators. You have great, I just, Cindy, can I pick on you? Where's Cindy? Cindy, where are you? Okay. I just had one of the most awesome meetings in my life with Cindy's daughter and her colleagues in Indiana. You have great government officials, great treasurers, great AGs, particularly the conservative ones, great legislators. There's a regenerative farmer in Indiana who's going in. Fabulous. A great lieutenant governor whose dad was chaplain at Hillsdale. It was unbelievable. And anyway, so you have these great leaders. And if you go to the state houses, all the bad guys, they're working them. And the good guys are busy doing their business. They're nowhere to be found. So find your great state legislators and support them. If you don't know how to do that, find the activist groups that can. So yesterday in Indiana, we met through the auspices of Leah Wilson at Stand for Health Freedom. Unbelievable group, gotten a huge amount done. They're groups like this. Weston Price is one of the great, anybody here a member of Weston Price? Great food group. So find the groups that are really fighting for financial freedom or health freedom or food freedom. One of the things we've always done is support the food freedom guys because You can't control the financial transactions unless you centralize control of the food. And unfortunately, if you get financial freedom, it'll give you complete control of the food. So anyway, there are hundreds of things. I would access those resources. But again, do the thing that you're most called to do and is energizing for you. And I assure you, you know, these ideas can keep you busy because part of the thing is I call it operation pushback. You know. in 2020, we said, hmm, something's wrong, but we're afraid. In 2021, we said, hmm, something doesn't sound right. In 2022, we said, okay, we're going to take action. And then in 2023, the lawsuits started, and the treasurers started coming together, and the AGs started to come together. And now, if you look at this, many of those people are inspired and galvanized by the new administration, and they are rocking and rolling. And what I want to tell you is, you want to come over onto the Freedom Fighters, because we are having fun. It is really fun, and it's a great group of people. So what state are you in? Ooh, you got tough politics there. They're there, they're there. We got, we, yeah, they're there. We have time for one more question. Hi, I wanted, thank you for your talk, by the way. I wanted to ask just a quick hypothetical. Should this end up in the digital space where we're stuck in a digital... centralized currency. What happens hypothetically in a case like what just happened in North Carolina, where there is no digital footprint after a disaster or something like that, when people who didn't actually have cash on hand couldn't go to the hardware store? So what happens in EMP as a... potential situation when you don't have the digital infrastructure all of a sudden. So you either build local currencies in a barter network or you basically, you know, it's voluntary cooperation and then you scale up to barter and local currencies. If you don't have that kind of infrastructure or create it. And with it, create the food, energy, and other things you need to have basic real assets that will support that. The speed at which your land will be grabbed will take your breath away. And that is what we see happening in North Carolina. That is what is underway in an attempt to grab a lot of land. And it's been, you know, I have to say because this is Veterans Day. And if you look at what our retired vets and servicemen have done in East Tennessee and Northern Carolina, It just, it makes you love and be so grateful you're an American. And it's through that impulse that things are working, and that's why I say the currency of the future will be relationships of trust. When that time comes, what's important is who knows you, who has a relationship with you, what can you do to help each other, okay? Ladies and gentlemen, thank you very much for the opportunity to be here at Hillsdale.

And John Edward looked sternly down his glasses at him and he said, Young man, culture is the integration of the divine in everyday life. And I love that only John Edward, he delivered it with a much deeper southern accent than I can do. And when I think about what do we need to build a great governance system, what do we need to build a great financial system, one of the critical questions is who enforces?

And the reality is, if you look at where our wealth comes from, all of our wealth comes from life. It comes from raising strong and healthy children who grow up and go off and do something or build family enterprises or invent new things. But it comes from a healthy culture.

And I've been, I've always wanted to come to Hillsdale and I've heard about it. We have members of the Salary team who've come here. One, in fact, who came to see about going to college here.

And so I've always wondered about Hillsdale, but as I've had the opportunity, and I have to thank Matt, who's done a great job of Matt Bell walking me around. As I see what's going on here, there is a profound understanding of the importance of building a healthy culture and of building the kind of culture that could support a great governance system and a great financial system. And it's really, I just want to thank you all for...

allowing me the opportunity to speak to you today, but to visit Hillsdale to get a little bit more to know what you're doing and for supporting Hillsdale because you are supporting real solutions. We have to, when I was assistant secretary, the secretary said how are we going to solve this and I said you have to solve it by raising kids right one kid at a time and he said oh that takes much too long. So I want to thank you for investing in enduring solutions at Hillsdale.

So one of the things we say at Solari is there's an official reality and then there's reality. And you need to know both. Official reality is for the cocktail party.

Reality is for the investment of your time, money, and your risk management. Don't get those switched. Don't take reality to the cocktail party if it's not welcome. And please don't manage your time and money based on the official reality. We saw how that worked during the financial crisis.

So I want to talk to you today about reality. I'm going to focus on some of the things, you know, they don't, when I was in Washington, you would, I was dealing constantly with the budget and sort of whacking up all the money. And because of what I did, I had to understand the whole budget, not just the housing and mortgage piece. And I'd whack up the money and then I'd watch the Sunday shows and they'd be talking about what was going on in Washington. And it was two different universes.

One was the reality where they were whacking up the money, and the other was the official reality, and they had nothing to do with each other. So I want to talk, I want to get to the heart of what's going on in the money. The first thing I want to tell you is we don't have a financial problem. We have a secret governance system that is not transparent and is centralized in control.

And in fact, what we're watching as it centralizes, a wonderful scholar from the... UK calls it Omniwar. This is the weaponization of everything.

But we're seeing new and potentially wonderful digital technology used instead to centralize control in area after area in all aspects of our life. And the problem is not so much with the tools themselves. It's with the secret governance system and how they decide to use it.

So I believe there is only one way to stop the move to total central control. And that is by preventing control of our digital transactions, our financial transactions. That's what I want to talk about today. So everything I'm going to say, one of the candidates and their economic staff, I was going back and forth trying to help them, and finally I said, I need to write a briefing about what's really going on in the federal finances, what the real problems are, and what we can do about them. So everything I'm going to touch on today.

is much more thoroughly documented at the Solari Report. This is called the Solari Paper No. 1, and it's a briefing on what I call the financial coup d'etat. Clay referred to the 21 trillion missing.

The federal government since fiscal 1998 has intentionally and systematically broken the laws related to financial management of both its credit and its appropriations. And that is what, if you look at anything that's driving what some people call the swamp and the corruption, it is operating the federal government outside of the financial management laws. If you go to our website on, we call it missingmoney.solari.com, but our website on missing money, we have seven briefing papers.

I finally despaired of the journalist community understanding how the financial laws of the United States government work. So we spent a year and we wrote seven briefing papers on what are the monetary and fiscal laws of how the federal government should be operated. And in fact, it's a remarkably good infrastructure, a remarkably good legal infrastructure if we would only follow it. Sometimes reformers tell you we need new laws. No, we don't need new laws.

We simply need to enforce the excellent laws we have, starting with the Constitution. Anyway, so that is there if you wanted a resource and you want to dive deeper. So I want to tell you a story, and I'm going to use a video to do it.

This happened to me in 2000, and it's when I really got to the gist of the problem. of why we couldn't turn things around politically. So I'm going to tell you the red button story, but I'm going to start with a video.

So go ahead if you could play that. The red button. You never want to have an epiphany in the middle of a speech, but I did.

In the summer of 2000, I was speaking to a wonderful group of people called Spiritual Frontiers Foundation International. And they have a conference once a year to talk about how they can help evolve our society spiritually. So they're very dedicated, wonderful people.

A friend of mine had asked me to give a speech called How the Money Works on Organized Crime. And in the middle of the speech, I was describing the fact that... a reporter who I was doing research for had been told by the Department of Justice that the U.S. economy and financial system launders $500 billion to a trillion dollars a year of all dirty money. So I said to this wonderful group of spiritually evolved people, what would happen if we stopped laundering $500 billion to a trillion dollars a year of all dirty money?

So we had a little interaction and they said, well, you know, the stock market would go down because that money would leave and go to Hong Kong or Singapore or Zurich. And we'd have trouble financing the government deficit because we would offend the people who control that money and the accumulated capital for many years thereon. And so our government checks might stop or our taxes might go up. So I said, OK, well, let's pretend there's a big red button up here in the lectern. And if you push that button, you can stop all hard narcotics trafficking in your community, your state, your country tomorrow, thus offending the people who control 500 billion to a trillion dollars of annual dirty money.

And so I said, who here will push the button? And out of 100 people, only one would push the button. And I said to the other 99, why would you not push the button? And they said, we don't want.

Our mutual funds and our IRAs to go down in price, we don't want our government checks to stop, and we don't want our taxes to go up. And so that's what I call the red button problem. And what the Solari mission is, is about how do we turn the red button green?

In other words, how do we make money pushing the red button? Because if we can make money pushing the red button, then we can push the red button. We're getting back to the slides. Okay, so the president's going to return to the Oval Office on January 21st, and he's going to, his political Karl Rove kind of guy is going to turn to him and say, go ahead to the next slide, he's going to say the American people just spent billions of dollars getting you elected, and now they want payback. They want their community block development grant, they want their COLA increase, they want their defense contract.

And he's going to turn to his Secretary of Treasury, who's going to say, well, you better be nice to the people who control $500 billion to $1 trillion. That was in 1998. It's a much bigger number now, especially with financial fraud. You've got to be nice to those people.

And so the question is, how is the president and their administration going to hit the red button or turn it green unless the states and the counties are prepared to do it with them? Because in fact, there's an incredible opportunity. If you re-engineer the federal money to optimize the economy instead of to institute central control, there's enormous wealth, new wealth that can be created, including with the blessings of new technology.

But what you're going to do in Brooklyn is totally different than what you're going to do in Tulsa, which is totally different. I live in Hickory Valley, Tennessee. It's going to be totally different in Hickory Valley, Tennessee.

It has to be decentralized. It has to be bottom-up. And of course, you know, what Washington always wants to do is centralize more power.

I'll never forget being in a meeting with one of the secretaries, and we were meeting with somebody and trying to persuade them to go along with our legislative agenda. And he said, well, you know, I thought you're Republican. I thought they liked to decentralize.

And one of the little policy wonks said, yeah, but we're here now. So, you know, again and again, Democrats or Republicans, that's what happens. Okay.

So we published a study in 2018 called the state of our currency and it was an overview of the dollar system and what was happening in the dollar system and one of the things we pointed out was the ability of the dollar system to extract subsidy that could in fact pay back the the or support the body politic was waning. The other thing that was happening is as the 21 trillion had gone missing We had failed to provide, think of that as laundry out of our retirement funds. And as people started to retire, because you hadn't provided the money in our retirement accounts that had been promised, in fact, something had to be done. And in fact, what has been done is we are steadily lowering life expectancy and bringing lots of immigrants who put more money in the system.

And that is delaying the balance of the books. So... Essentially, what we said is the system is long in the tooth, and either the subsidy has to be cut or changed, and the danger is the central bankers will go to a system of total control, which is what is happening. The next thing we published was something about the going direct reset. Who here has heard of the going direct reset?

Okay. The World Economic Forum calls it the greater reset, but in fact, In the August of 2019, the central bankers met at Jackson Hole where they meet once a year and they reviewed a plan prepared by a group of retired central bankers through the BlackRock Investment Institute that laid out a plan on how you would reset the global financial system. What we see throughout history, we have a model called central banking warfare.

The central banks print money and then the military and intelligence agencies make sure everybody takes it, and you keep the system liquid. And essentially what you see if you go back through history, every 80 or 120 years, you do a reset. It's like flushing the system.

And oftentimes what happens is you also move the currency system. So sort of the period of the Spanish flu was the last time we saw a major reset when the dollar, we went from a pound sterling system to a duopoly between the pound sterling. and the dollar and then after world war ii the dollar became the dominant system so this is the real reset um and you can find everything at solari that include included we did a piece on cbdc because part of the difference this is the most this is a completely different reset than what we've ever seen and that is because an all digital technology an all digital monetary system gives you the ability to do something very radical, and I will talk about that in a minute. The other thing that happened, remember, does everybody remember the Kavanaugh hearings? Very salacious, very entertaining, very interesting, very galvanizing.

While that was happening, the Republicans and Democrats, the House and the Senate, and the executive branch agreed to something called Federal Accounting Standards Advisory Board Statement 56. Doesn't that sound really boring? And what I call it FASB 56. What FASB 56 did by administrative policy is said the federal government doesn't have to obey the laws and the provisions of the constitution related to financial management. It doesn't have to obey the financial management laws and it doesn't have to obey the financial management regulations. Now remember we hadn't been obeying them since 1998 or even really trying. But literally they adopted an administrative policy that codified the financial coup that was happening.

And what they said was a secret group of people. by a secret process could take portions of the federal finances balance sheet and income statement expenses and take it completely dark by, again, a secret process. And if you bring in the classification laws as well and the waiver powers of the national security director, that not only applies to the 24 covered agencies and 100 plus commissions, panels, and other organizations of the federal government, it also applies to the big banks and to Fendt contractors who do business with the federal government. So what that means is, if you're an investment advisor, you look at the stock market and all the large cap stocks and the big bond issuers, their finances mean nothing. I no longer look at the financial disclosure of the U.S. government because it's entirely meaningless since fiscal 2015, which is the last time we calculated.

The 21 trillion. Interestingly enough, we've talked this in the last two days about the debt problem when we did the full survey that documented the 21 trillion missing from DOD and HUD. That was done by a wonderful professor from Michigan State University, Dr. Mark Skidmore, and his students. When we published it, guess what the outstanding debt of the United States was? 21 trillion dollars.

21 trillion of undocumented adjustments, 21 trillion dollars of debt. So again, we don't have a financial problem, we have a governance problem. So FASB 56 went into position under a Trump administration. One of the first things I would do if I was coming in is I would end FASB 56. Okay, so after you publish the going direct reset, after you publish FASB 56, what happened? We had a pandemic and the FUD and the Fed injected $5 trillion.

And I'm going to grossly oversimplify. The Fed injects $5 trillion, much of that money going to centralized players and Wall Street, and then it shuts down Main Street. So you have fantastic monetary inflation, but you offset it with the deflation that comes from literally shutting down Main Street. It's interesting, the Biden nominee for control of the currency who didn't get passed had published a month before her nomination an article in the Vanderbilt Law Review, and she said the wonderful thing about central bank digital currency is inflation is no longer a problem.

If you have inflation, you just freeze everybody's bank accounts. Isn't that wonderful? Okay, okay.

So central bank digital currency. Central Bank Digital, the important thing to understand about Central Bank Digital Currency in an all-digital financial system is it's not a currency. It's a control grid. Now, the process to implement Central Bank Digital Currency around the world is being overseen by the Bank of International Settlements in Basel, Switzerland.

And the Bank of International Settlements is owned by its members, the New York Fed and the Fed are both, the Board of Governors are both shareholders in the BIS. 63 of the top central banks are in the BIS, and they are running a process with a major partnership with the Federal Reserve to implement CBDCs and their prototyping around the world. In 2020, October 2020, there was a panel at the IMF on cross-border payments.

Jay Powell, chairman of the Federal Reserve, is there. Augustine Carsons was there and Augustine Carsons said the following, and I'm going to play this for you in a second, but I want you to know I was basically raised and trained to be a central banker. I was asked to be a governor of the Federal Reserve and declined.

So, but I was raised that way. And one of the things you're raised to understand is you never, ever, you use pretzel talk. You never explain clearly what you're going to do. You know, you talk in circles.

And this was the first time I had ever seen a central banker. in English explain exactly what they're planning on doing and why. And I almost fell off my chair. And if you think I almost fell off my chair, you should have seen Jay Powell's face. Okay, so here's Augustine Carson's 57 seconds explaining CBDCs.

Our analysis on CBDC in particular for the use of general, to the general use, we tend to establish the equivalence with cash. And there is a huge difference there. For example, in cash, we don't know, for example, who is using a $100 bill today.

We don't know who is using a $1,000 bill today. A key difference with the CBDC is that central bank will have absolute control on the rules and regulations that will determine the... Use of that expression of central vent liability and also we will have the technology to enforce that. Those two issues are extremely important and that makes a huge difference with respect to what cash is. One of the tremendous benefits that the BI has in implementing this is they They operate under sovereign immunity.

They are protected from, with rare exception, most laws and operate behind. They can keep anything on their balance sheet and keep it secret. So they are behind the walls of secrecy, and they have established innovation hubs, which also extend sovereign immunity to them. They have a committee at the BIS that designates certain financial institutions, payment systems, and insurance companies. as systemically important institutions.

And for reasons I can go into Q&A if you're interested, we believe they're extending sovereign immunities. And that's why certain institutions, no matter what they did during the financial crisis, don't get prosecuted. But this is a map from the BIS website of their innovation hubs at that time. And their partnership with the New York Fed is obviously a major one, the New York Fed being a leading shareholder, both the New York Fed and the Board of Governors.

Okay. So The next video, very short, is Bo Li, used to work at the Bank of China, and now is the Deputy Managing Director at the IMF. This was in 2023, last year.

Bo Li was talking about the programmability of money, okay? The programmability of money. So let's watch this. And finally, the third way we think.

CBDC can improve financial inclusion through what we call programmability. That is, CBDC can allow government agencies and private sector players to program, to create smart contracts, to allow targeted policy functions. For example, welfare payment, for example, consumption coupon, for example, food stamp.

By programming CBDC, those money can be precisely targeted. for what kind of people can own and what kind of use this money can be utilized, for example, for food. So this potential programmability can help government agencies to precisely target their support to those people who need support.

So that way can also improve financial inclusion. So hold up on this one. We're not going to play it yet. So what does that mean? By programming your money in a system where we have the cloud and lots of software and AI, I can make a different set of algorithms and rules for every person in this room.

I can track you. It's the equivalent of putting, you know, round-the-clock Stasi teams on you, but they're software bots and they're AI. And I can make up social credit rules as to how you can and cannot use your money.

And if you don't accept my healthcare mandates or you don't accept my spatial restrictions, I can turn off your money. I can tell you where to go. I can tell you how to go. I can have absolute, complete control of your life. And I can do it economically because of an all-digital system, and we'll talk about that in a second.

Now, the Fed is—the financial train tracks of the Fed that our transactions run on are operated by 12 private banks owned by their members. The lead flagship is the New York Fed, of course, but you have 11 other banks around the country and then offices within those jurisdictions. Those banks are run by Fed presidents. One of them is Neil Kashkari, who was at the Treasury under Hank Paulson during the bailouts. He's now the president of the Minneapolis Fed.

Last year, he was asked about CBDC at a conference in Columbia, and here's what he said. So go ahead and play that video. Seriously, so what is it that a CBDC could do that Venmo can't do? And all I get is a bunch of hand waving. I get a bunch, well, maybe it's better for financial inclusion.

Maybe it's better for cross-border remittances. Maybe. Is there any evidence that it is?

And they say, well, what about China? China's doing it. Well, I can see why China would do it. If they want to monitor every- One of your transactions, you could do that with the central bank digital currency.

You can't do that with Venmo. If you want to impose negative interest rates, you could do that with the central bank digital currency. You can't do that with Venmo. And if you want to directly tax customer accounts, you could do that with the central bank digital currency. You can't do that with Venmo.

So I get why China would be interested. Why would the American people before that? Okay, so let me explain what's happening. Back to the next slide.

I need to click that? Yep. Okay. Okay. So, since 1913, our governance and management system in the United States and most of the Western democracies has consisted of private bankers running monetary policy and the people's representatives, the legislature and the executive branch who works and...

reports to them and follows their, implements their laws. It's a balance of power between the people and the bankers. And that is how our republic has more or less functioned for many, many years. The process began after World War II to start to embed more and more secret avenues for secret money within the budget. That's where the trouble started.

There's a wonderful documentary that made in the Netherlands two years ago called State of Control. And it explains sort of the whole history if you're interested and there's a lot of history at missingmoney.solarity.com. But suffice it to say what has happened is and it started in 1997 in my opinion and the planning started before then.

A decision was made by the central bankers to literally assert control of the entire fiscal line. Because if I can use AI and software to implement a digital ID and an all-digital monetary system, and I can manage that centrally, just as Augustine Carson's just told you, he can make the rules and enforce them centrally, then I, as the central bankers, can assume not just control of monetary policy, but fiscal policy as well. Essentially, I can just cut out Congress and I can cut out the executive branch. Now, interestingly enough, we see the new administration saying they want to file all the civil servants.

Civil servants are the people who obey Congress's rules and report to Congress. You shift them out and you put in big tech contractors and defense contractors, and they're going to report to the central bankers and the intelligence agencies who work for them. So when I was assistant secretary of housing, I used to have month-long fights with the defense contractors to get the data I needed to just...

See if my programs were in compliance with the law or get them into compliance with the law. I have story after story of my war with the big corporate contractors. In 2012, when the new populist government came in and wanted to change policies, they discovered their taxes were collected by private contractors who reported to the ECB and they couldn't control their own tax collections.

And that's what happens when you use digital technology. in an all-digital monetary system to literally institute money that can give the central bankers at a very central level complete control of fiscal policy. That is the danger, not just of CBDC, but of a private system that does the same. So we see people talking about, well, let's use currency.

Let's use private crypto. Interestingly enough, the central bankers still have legal obligations of transparency. To the Congress, they are a creature, they were created by Congress.

They have transparency obligations and Congress can still change their authorities and powers. And before this system rolls out, the central bankers would love to take the Fed wire private and do this all privately. And that is even more dangerous and much worse because then you're talking about parties running it. on a private basis that have absolutely no obligations under the Constitution to the people or their representatives. So at the heart of this debate is who's going to control the fiscal line, taxation, who's going to control taxation and how our money is spent.

And I assure you, if you love freedom, you want to make sure the people's representatives continue to lead and manage the fiscal line of the House. And that is why you want to stop. a digital ID and an all digital monetary system, whether it's a public crypto CBDC or private.

So let's just look at the next slide. I call this the 12 steps to total control. If you walk around your life, your life is being digitized.

Your equipment in your home is being digitized. Your car, I just rented a new car. I had to put post notes all over the front. It was so digitized and flashing at me. But your transportation is being digitized.

Now the BIS is running a process to create A complete inventory on all the assets in the world, digital assets, and they're going to tokenize them. We have smartphones, telecommunications, surveillance. All of these can be very invasive, and it's amazing. I spend so much time in my life with people saying, well, you know, I can live with a smart meter, it's really not that much of a big problem. Or I can live with my, I like my smartphone, it's really convenient.

And, you know, why do you make such a fuss about QR codes? They're irritating, but I can live with QR codes. Here's the thing on all of those things. The problem is not each individual one.

The problem is the day you implement a digital ID and you implement an all-digital monetary system, guess what? It synthesizes into one integrated system, and your home, your car, your community become a digital concentration camp. So let's... Let's go back and look at what the pandemic looks like.

If I say you're going to lock down and you can't leave your home except on Tuesday and Thursday to go grocery shopping, your money won't work outside your home. If I say, you know, I don't want you driving anywhere, you know, I can turn off your electricity. You know, I can stop your electric car from working.

Some people say you can turn it off remotely. So I have... extraordinary control, if you misbehave, I can cut or turn off your money.

So we all know the story of the Canadian truckers. We're talking about building a system that allows the Canadian truckers to, you know. Now, when the World Economic Forum says it's 2030 and you have no assets, how are you going to operationalize that? Well, I'll tell you how you're going to operationalize that.

If you have total financial transaction control. You can pretty much figure out how to inflate anybody's assets or even take them. I often have people say, well, I have no assets. I don't really care. I say, you have kids.

They can take those kids away. Or they can mandate where they go to school. Or they can mandate their health policies. Okay, so what can we do?

There's a huge amount we can do. I dare say if I collected up every portfolio, And every retirement savings fund in this room, of everybody sitting here, if we could create an aggregate balance sheet and financial statement, guess who's financing the control grid? We are. We're investing in the companies building the control grid. Of course, our taxes are financing the government to build the control grid.

If you look at the banks we deposit our money in, we're We're banking. The bank that did all the Madoff fraud and was in complete control of the Madoff fraud, we keep banking with them. Our message to the companies building the control grid, you know, who are really running the government is, you know, as long as we get cut in for a piece of the action, we'll support you, okay? Now, I have to tell you, if everybody got up tomorrow and said, you know, the New York Fed is leading this, we are pulling all of our money out of the New York Fed beds tomorrow, we've had it, there would be a revolution.

I can't tell you how much power we have as individuals. Control and freedom happen one person at a time. And if you go through your balance sheet and your financial statements or your actions.

So if you come into Soleri, one of our taglines is, who's your banker, who's your farmer, where's your money, and are you supporting your local sheriff? Okay, the power is not delegated to the federal government or reserved to the states. And that is a provision that every country in Europe has spent a lot of time. Networking and working in Europe, I live in Europe half the year, they would do anything to have our Constitution. They are so jealous.

But the powers not delegated to the Federal Reserve are reserved to the states. And the states have the power to do a great deal to stop this. And they are acting and they are moving.

And a lot of the freedom fighters at the state level are very enthusiastic about what's happening in terms of the Republicans taking control in Washington because that gives them... Far more support to do something, so we have a real window of opportunity. We just published something called What the States Can Do, Building the Legal and Financial Infrastructure for Financial Freedom.

We have a memo, and all of these were produced and written for state government officials and legislators. What is financial transaction freedom? what threatens it and what can we do about it and why a sovereign state bank would be good for Tennessee. A wonderful study by Richard Warner, top academic scholar in the world, I believe, on central banking and banking. There are many solutions and there are now people in states who know what to do and are doing that and they need your support.

And I have to tell you, if the freedom fighters at the state level can get your support, and here's what it's going to come down to. We did a backcasting on the Salaria with a group from North, anybody here from Idaho, from Northern Idaho? They have the most wonderful legislators in Northern Idaho. We did a backcasting and one of them said, look, I really want to, I really want to support the Constitution and I really want to enforce the Constitution, but every year we send a dollar to Washington and then we get a dollar and 19 cents back and my constituency wants the 19 cents. And that 19 cents buys us out of the law, outside the law, which is why I say instituting the financial management laws is one of the most, if we want to be serious about turning the swamp, you know, that's item number one.

I just had a great meeting with Dr. Mark Skidmore. We were in Grand Rapids for a wonderful meet and greet. And he said, you know, a lot of times I feel like I'm up here on the 50th floor doing window dressing and down in the foundation, they're digging a hole and the building's going to fall over.

So that's why we have to get deeply into where's the money and what we do about it. Okay, so we were talking about currency, but I want to leave you with this message. Because remember, we don't have a financial problem.

What I will tell you is if we were free to re-engineer the federal flows and come back into compliance with the law, particularly with the blessings of new technology, the wealth on this planet could be... So many multiples of what it is now. Words cannot express to you how expensive tyranny is.

It is a miracle that we have done this well despite the drain of the tyranny. It's quite remarkable. And if you look at all the simulations I've done of the federal finances over the last 20 and 30 years, you know, the price of tyranny is beyond what any of us can imagine.

So if we can turn this around, the opportunity is there. There's no financial problem. At the root of this, it's a political problem, it's a governance problem.

It's why I love with a school here that's, what does it mean? It's got leadership in the title. That's the exact important thing. But I want to leave you with this quote, which comes from a Swiss doctor who's trying to build parallel new systems in Switzerland. He says, the currency of the future will be relationships of trust.

I litigated with the Department of Justice for 11 years, and when it started, they tried to cut off all my income and all my credit and take all my assets. It was quite a war. And I had an uncle, and I sold him a piece of our family farm to finance some of the attorneys.

And sure enough, the inspector general calls him and threatens him. He says, your niece is a criminal, and you shouldn't help her. And then...

And they were asking for finances on her family farm. And he said, well, I'll give you all the finances, but I need a written letter from my attorney. I just want to make sure this is clean.

So at 9 o'clock at night in Portsmouth, New Hampshire, they show up with three FBI guys and a guy from the HUD IG with a subpoena, just trying to scare him to death. So our family had a big meeting and said, you know, should we cut her off? You know, because we don't want these guys coming after us.

And my uncle said, well, you know, She helped everybody all along, and so she's always helped us. I'm not going to cut her off. It turned out I'd never done the numbers.

But in this process, what I had discovered is over the prior 20 years, I had lent or gifted to family and friends a quarter of a million dollars. And I litigated with the federal government for 11 years, and over the next 11 years, you know, everybody got together and said, well, I guess she needs some money back. So they got together, and I didn't count it up until we won the litigation, and they owed my company a great deal of money, so I got the money.

And I was trying to pay everybody back, and I did the calculations, and I realized over that 11 years, I had been repaid or gifted exactly to the penny, $250,000. And I would never have made it if it hadn't been for those funds. And my CPA, when we got the money in, she said, okay, you know, you stripped out.

I had to play a, I had to cancel. They put my 401k under audit so I couldn't use it to finance the company. So I busted it, paid $225,000 in taxes, and used the remaining money for just make work compliance.

It was sort of a dirty trick they do to you. And if you've been watching Trump, you learn a lot about how to do it. how the game is played. But anyway, she said, let's fund up the 401k. And I said, I'm never going into business with the federal government again.

We're going to take that 500,000 and I'm going to bonus it out on the People Bank because that's the only bank I trust. So the question when people ask me how they protect their assets, my question to you is the next four to eight to 12 years is going to be rocky. Who can you count on?

Who's going to be there for you? Who in your family? your children. You know, I used to have investors tell me, I can't, you know, my financial planner says I need at least $25 million in my brokerage account, so I can't afford my kids to go to college.

I can't help them, and I can't help them buy a house. I said, you don't understand who's going to be there who you can count on. That's who you've got to finance. So are we financing the control grid, or are we financing the future of human civilization or freedom? If you're here, You're making a mighty contribution to the future of freedom because you're supporting Hillsdale.

So ladies and gentlemen, thank you for the opportunity to be here today. Thank you for the opportunity to have this conversation. We have a little bit of time for Q&A. Thank you, Mrs. Fitz. We now have time for Q&A.

If you have a question, please make your way to one of the microphones. Student questions will be given preference. Thank you.

Thank you for this report. It's very informative. You can see a lot of people came because we want to hear what you have to say.

This may be a difficult question to answer, but for you, maybe not. A lot of things. has been said about Elon Musk coming in and cutting the national budget, finding ways the government can save money. Can you foresee that touching any of the hidden accounts, the dirty money? So Elon Musk is a defense contractor.

So if you listen to much of the discussion, the criticism is the government's been run by defense contractors and we need to change. But if you look at who we're bringing in, whether it's Peter Thiel and Palantir or it's Elon Musk, we're bringing in sort of defense contractor 2.0. So right now, Elon Musk is a very fashionable character. I think he knows nothing about the nuts and bolts of operating government successfully.

That doesn't mean he can't bring innovation and creativity to the table. But if I told you I was bringing in a defense contractor from Silicon Valley to do neurosurgery on your children, how would you feel? Right?

Okay. So there is something to be said for people who understand the federal bureaucracy is very complex. And if you take a hatchet to it, you can do more harm than good.

And you can also help the deep state. So if I wanted to put the central bankers in control, I would replace the civil service with all big tech and all defense contractors. In fact, they're already in place. You have Amazon running the CIA cloud with the 17 intelligence agencies all in that cloud. You have them now over at DOD with Oracle and Google.

You can literally, if you get rid of the civil service, you can re-engineer the entire federal government, essentially to report to the central bankers. Now, there's been a tremendous corruption of the civil service over the last 10 to 20 years, but they can certainly be reformed. And huge amounts of responsibility can be delegated to the local governments and decentralized.

So there's a great deal that can be done to re-engineer. government in a way that's very efficient, good for everybody, leaves the people's representative in charge of fiscal policy. Will Elon Musk do it? I don't know. I'm a skeptic.

I'm not an Elon Musk fan because anybody wants to put a mesh network in the back of my head and hook me up to his satellites. I mean, let's go back to this. I just want to go back to this chart. Okay.

So we have the digital ID. We have the all digital money. And with a mesh network in the back of my head, hooked up to a satellite, you know, I think we know where that's going, okay?

So I can't say I'm enthusiastic about that process now. If it's a transparent process, there are many great things that an Elon Musk could say and do, and they're worth a discussion, as long as the changes are made in compliance with the Constitution. I have not heard one person on the transition team talk about FASB 56 and taking the book stark, or talk about bringing us back into compliance with the financial management laws. And what I will tell you is that until and unless we have that conversation and do that... This is all sort of a coup.

Okay, now, I just want to bring something up. Right now, there is a tremendous effort to sell conservatives and the heartland on a digital ID by telling you that that's how we solve election fraud and immigration. And what I have to tell you is we had great border control and we had good elections. before digital technology existed, okay?

So don't fall for it, because we don't need it for elections. We don't need it for the border. It can be useful. There's nothing wrong with it. But if you are buying into, you know, the 57 varieties of marketing the digital ID, that is what the next step is.

And if they get that, they're very close to getting the whole shebang. Can Elon Musk come up with some great ideas? He apparently, I just saw a headline, he's proposing that we stop funding the WHO. What a great idea and a great money saver.

So I think I told everybody on November 6th, the campaign starts on November 6th. We have to campaign every day from here on out for freedom. And it's funny, Congressman Massey, who I absolutely adore, he's constantly saying shut down the Fed. And I'm always saying to Congressman Massey, wait a minute, who gets the Fed wire number one?

And number two, if you shut down the Fed before you get the $21 trillion back, they get to keep it. So don't help them. And he was a great, we were at a conference together at Polyface Farm, and he said, we should shut down the Fed.

And then he looked over at me glaring, and he said, after Catherine gets her money back. Does that answer your question? Okay.

Okay. Thank you so much for all of the information and creating such a great awareness in this space. And I personally am in awe.

You shared some ideas about what we can do, you know, develop close relationships that we may need over time, support Hillsdale. You gave some other ideas about states doing work. Are there, like, what three things, aside from those, I mean, are there advocacy groups or to learn more about this? Yes. So there are tremendous numbers of things you can do.

And that's why I referred you to, I want to stop CBDC, what can you do? Or the financial transaction memo, because there are lots and lots of lists. And it's important that each of us do what we're called to do, and we feel comfortable doing.

And there are many things. The first thing you can do is prayer. So I really believe in the power of prayer. And when this many people have to gather and work together, prayer really, it just really helps. So the first thing I would do is pray.

The second thing I would do is I would look at your finances and make sure your finances are protected from the evildoers, okay? You need to be strong, and that means you need to strip out of your life. You need to stop doing business with criminals, and you need to stop financing criminals, okay? So you need a successful, excellent bank that's not a criminal.

You need to make sure your money's going into things that you're proud of and feel comfortable with, and that's a matter of going through your finances. We did a great financial rebellion on CHD called how to preserve your cash in 2022 and then another one on how to preserve your cash in 2023. One of the things I will tell you having worked with many families is there is an underinvestment in this country in what I call living equity. Okay so all wealth comes from life it comes from strong healthy kids it comes from the soil it comes from you know the living things around us and Then it comes from great family enterprises that do something useful for many decades and generations and creates that wealth. And everybody has an opportunity in their life to invest in the living equity around them.

So one of the most important things is how can you build a healthy, local, fresh food system? And that's not necessarily to make money. That's to make sure that you're not poisoned.

The deterioration in the food system in this country is scary. And unless we build, you know, healthy land, rebuild the soil, and really build up regenerative farming and local food markets. The last thing you can do is... We have a wonderful piece at Saliri about how to get to know and support your state legislators. You have great, I just, Cindy, can I pick on you?

Where's Cindy? Cindy, where are you? Okay. I just had one of the most awesome meetings in my life with Cindy's daughter and her colleagues in Indiana.

You have great government officials, great treasurers, great AGs, particularly the conservative ones, great legislators. There's a regenerative farmer in Indiana who's going in. Fabulous. A great lieutenant governor whose dad was chaplain at Hillsdale. It was unbelievable.

And anyway, so you have these great leaders. And if you go to the state houses, all the bad guys, they're working them. And the good guys are busy doing their business.

They're nowhere to be found. So find your great state legislators and support them. If you don't know how to do that, find the activist groups that can. So yesterday in Indiana, we met through the auspices of Leah Wilson at Stand for Health Freedom.

Unbelievable group, gotten a huge amount done. They're groups like this. Weston Price is one of the great, anybody here a member of Weston Price?

Great food group. So find the groups that are really fighting for financial freedom or health freedom or food freedom. One of the things we've always done is support the food freedom guys because You can't control the financial transactions unless you centralize control of the food. And unfortunately, if you get financial freedom, it'll give you complete control of the food.

So anyway, there are hundreds of things. I would access those resources. But again, do the thing that you're most called to do and is energizing for you. And I assure you, you know, these ideas can keep you busy because part of the thing is I call it operation pushback. You know.

in 2020, we said, hmm, something's wrong, but we're afraid. In 2021, we said, hmm, something doesn't sound right. In 2022, we said, okay, we're going to take action. And then in 2023, the lawsuits started, and the treasurers started coming together, and the AGs started to come together.

And now, if you look at this, many of those people are inspired and galvanized by the new administration, and they are rocking and rolling. And what I want to tell you is, you want to come over onto the Freedom Fighters, because we are having fun. It is really fun, and it's a great group of people. So what state are you in?

Ooh, you got tough politics there. They're there, they're there. We got, we, yeah, they're there. We have time for one more question.

Hi, I wanted, thank you for your talk, by the way. I wanted to ask just a quick hypothetical. Should this end up in the digital space where we're stuck in a digital... centralized currency.

What happens hypothetically in a case like what just happened in North Carolina, where there is no digital footprint after a disaster or something like that, when people who didn't actually have cash on hand couldn't go to the hardware store? So what happens in EMP as a... potential situation when you don't have the digital infrastructure all of a sudden. So you either build local currencies in a barter network or you basically, you know, it's voluntary cooperation and then you scale up to barter and local currencies. If you don't have that kind of infrastructure or create it.

And with it, create the food, energy, and other things you need to have basic real assets that will support that. The speed at which your land will be grabbed will take your breath away. And that is what we see happening in North Carolina. That is what is underway in an attempt to grab a lot of land. And it's been, you know, I have to say because this is Veterans Day.

And if you look at what our retired vets and servicemen have done in East Tennessee and Northern Carolina, It just, it makes you love and be so grateful you're an American. And it's through that impulse that things are working, and that's why I say the currency of the future will be relationships of trust. When that time comes, what's important is who knows you, who has a relationship with you, what can you do to help each other, okay? Ladies and gentlemen, thank you very much for the opportunity to be here at Hillsdale.

Transcript for:Cultural Impact on Governance and Finance

Transcript for:
Cultural Impact on Governance and Finance