Post your comments and questions for July, 2017.
Click here to see previous comments and questions.
Post your comments and questions for July, 2017.
Click here to see previous comments and questions.
Baltic Dry Index
Related reading:
The Billion Prices Project @ MIT
Daily Price Indexes (22 Dec 10)
Baltic Exchange Dry Index (BDI) & Freight Rates
InvestmentTools.com
Baltic Dry Index
Wikipe…
An error can never become true however many times you repeat it.
The truth can never be wrong, even if no one hears it.
~ Mahatma Gandhi
Starwood Raises $810 Million, May be Year’s Top IPO
Reuters (12 Aug 09)
Deutsche Bank Tactics Push Bohndorf Into Spotlight (Update2)
Bloomberg.com (12 Aug 09)
China Makes Unexpected Grab For Canadi…
Organic Farming Could Feed Africa
The Independent (22 Oct 2008)
Your Privacy is an Illusion: UK Attacks Civil Liberties
arstechnica.com (18 Oct 2008)
Govindappa Venkataswamy
wikipedia.org
Black Fa…
By Christine Harper
Legislation to overhaul financial regulation will help curb risk-taking and boost capital buffers. What it won’t do is fundamentally reshape Wall Street’s biggest banks or p…
“There is a crack, a crack in everything
That’s how the light gets in”
~Leonard Cohen
By Catherine Austin Fitts
When it comes to understanding the governance of planet earth, my favorite expres…
Comments are closed.
To help you live a free and inspired life. This includes building wealth in ways that build real wealth in the wider economy. We believe that personal and family wealth is a critical ingredient of both individual freedom and community. health and well-being.
Nothing on The Solari Report should be taken as individual investment advice. Anyone seeking investment advice for his or her personal financial situation is advised to seek out a qualified advisor or advisors and provide as much information as possible to the advisor in order that such advisor can take into account all relevant circumstances, objectives, and risks before rendering an opinion as to the appropriate investment strategy.
No products in the cart.
This is one of the most powerful interviews on vaccines that I’ve ever heard, and it begins in earnest on the subject at about 7:45 into this video. Dr. Rima Laibow discusses some amazingly chilling information on vaccines, including the fact that since 2011, vaccine manufacturers are required by contract with the Department of Defense to provide vaccines containing nanochips for injection into our soldiers. This is mentioned at approximately 15:15 into this video. In addition, she tells us how to get Advanced Vaccine Directive Cards for ourselves and for our children, which guarantee under the Geneva Convention that we can refuse vaccinations without facing any consequences for this, and that this law and the Geneva Convention supersede any national laws that tell us otherwise.
https://www.youtube.com/watch?v=P58dp_Slxx8
Jim:
Not comfortable with the source. I would rather stick with Dr Tenpenny, Dr. Humphries and Dr. Wakefield.
Catherine
I understand, Catherine. It’s not always easy knowing who can be trusted from within the alternative “truth-telling” arena. In addition, I have to believe that any inside information on vaccines in the military would be tough to get a hold of. With this in mind, Dr. Laibow’s husband, who passed away several months ago, was a Major General and the Commanding General of the United States Army Intelligence and Security Command, so he may have had some inside information.
Hello Catherine,
It’s amazing to me to see the power of propaganda. These people building their cooling machine will likely regret their work in several years, when we really start cooling down due to the inactivity of the sun. Furthermore, it’s a pretty big waste of money to build a plant like that, instead of using the money to plant trees, nature’s way of getting rid of CO2 and churning out O2 in return. Wow, what a concept. And I’m sure that dimming sunlight will be absolutely great for the various organisms that depend on the full spectrum of the sun’s rays to survive and thrive.
Any scientific theory that depends on the manipulation of the collection of data, the manipulation of the data itself, and the constant revising of predictions based upon models which have flaws should be viewed by people, especially scientists, as being suspect and yet people roll on. Dr. Karlstrom has some interesting views on the matter.
https://www.youtube.com/watch?v=_Tnnn_UorBo
Chad
Will take a look. The misallocation of time and money from fake narratives is much more horrible than is generally realized. 8 billion people have a fake picture of reality in their head and spent the majority of their day helping the people harvesting instead of acting in the best interests of themselves and those they love. The more smart phones, the worse it is.
Thanks for posting the links to the five-part series, “Watergate and the Downing of Nixon.” I’ve long suspected that there was much more to Watergate than we’ve been told, and it now appears that it was all orchestrated as an attempt by the powers that be to bring Nixon down. It was also interesting to learn, among many other things in this series, that reporter Bob Woodward had high-level security clearance when he was in the military, and that he mysteriously got hired as a new reporter at the Washington Post without having had any journalistic experience. When we understand that Gerald Ford then became President, that Nelson Rockefeller, who previously had run for President unsuccessfully on several occasions, then became his Vice President, and that after three failed assassination attempts on Gerald Ford’s life, Nelson Rockefeller then decided to not run on the ticket for re-election, stating the he never wanted to be vice president of anything, the big picture gets even more interesting.
Read David Talbot’s book The Devils Chessboard to get a sense of how many people the Rockefellers have killed – and the Bushes and Cheney and Clintons…I now count my parents among them.
https://solari.com/blog/meditation-at-the-crossroads/
The power to kill with impunity – and make and launder money in violation with the law – is the source of inequality.
Thanks for once again sharing that article that you’ve written, Catherine. Yes, on your recommendation I read David Talbot’s book, and found it to be quite phenomenal, and one of the most important books that anyone could ever read to understand what’s really going on in the corridors of power behind everything here in the U.S. In addition, another book that I’ve read that was recommended here on the Solari Report is Politics in Healing by Daniel Haley, an amazingly detailed book showing us ten great medical and scientific discoveries that created great healing, but they were all then shut down by the AMA. In addition, The Field by Lynne McTaggart, and In the Dark by Jason Bawden-Smith, are great books I’ve read that you’ve recommended, too.
I got the Haley book yet but not have had a chance to read. It is in the 200 to be read.
I understand. Jon Rappoport recommended the book during one of your interviews with him. It’s beautifully written, and Daniel Haley, a New York politician, lays out a tremendous amount of facts and stories that prove to us that today’s most serious illnesses would be easily curable, had the medical industry not stepped in and banned the implementation of these great scientific achievements in order to protect their own profits.
Hi Catherine,
George Webb (youtube investigator on the Clintons) would like to meet you while you are in NYC. He made the request on his last feed.
Najat
‘SEC Cracks Down On “Initial Coin Offerings”: Concludes Tokens Are Subject To Securities Laws’
http://www.zerohedge.com/news/2017-07-25/sec-cracks-down-initial-coin-offerings-concludes-tokens-are-subject-securities-laws
The Immune Defense Summit
6 more days of speakers -free (with registration)
http://immunedefensesummit.com/schedule/
Quite good the first day
Will post
Hi Catherine,
Soon after President Trump visited Poland, Prince Willam and Kate Middleton took a family visit to the country. What’s the significance? Why is Poland such a player? Would it have anything to do with Russia?
Also, any thoughts on Gulliani possibly becoming the next AG.
Hope all is well. Would love to see you in NYC.
Najat
I am sure Trump is kicking himself that he did not make Gulliani AG. Word was Gulliani did not want it – wanted State instead.
Poland is solidly adverse to Russia – so sides with the Western European nations with regularity. Also has a strong economy. Very well educated population. Many ties in US and Western Europe.
In NY this week – working. Did not do a lunch this time. Will be back this October!
Hopefully in Oct.
You got lucky with the quick drop in the weather and I think the rest of the week is going to be picture perfect.
Enjoy!
Najat
If you need anything while you are NYC don’t hesitate to contact me.
🙂
Will do. Looking into whether we can do a lunch in October.
Catherine,
Got it. Not to beat a dead horse, his solution, IMHO, is to do something similar to what Portugal has done. His current policy is fighting force with force and it won’t work in the long run, because of the circumstances that you describe. At best, it is a delaying action. He may win a pyrrhic victory where he succeeds in significantly reducing the trade, but centralizing it, thereby making it easier for foreign and native entities to control it. He would also do well to encourage people to eat properly according to their old culture and use native herbs. My understanding is that his lineage goes back quite a ways into native filipino culture. Please see an evaluation of Portugal’s policy below. Nothing is perfect, but they seem to be doing better than many other countries. Be well.
Chad
https://object.cato.org/sites/cato.org/files/pubs/pdf/greenwald_whitepaper.pdf
Agreed. Force is not ideal.
Addendum: And this policy presumes that these presidents have not been or are not currently in the drug trade or have been beneficiaries of it. And this policy presumes that it is not being done on behalf of legal drug dealers known as big Pharma to get rid of the competition. And lastly, it presumes that their drug laws make rational sense. If the Philippines and Indonesia still have marijuana as a totally illegal drug for adults and alcohol as a legal drug for adults, that alone is a sign of irrationality. For adults, marijuana has a number of positive benefits (e.g. pain relief) and some negative consequences and alcohol is the exact opposite. Why aren’t countries trying to model Portugal, country that seems to do much, much better than numerous other western countries, when it comes to the drug trade?
What you point out is that we do not know enough about the Philippines to know what we would do if in Duterte’s place. I believe first and foremost in the rule of law. However, I also know what it is like to go up against an enemy who has 24/7 satellite, telecommunications and payment system capacity with entrainment and an infinite amount of money that does not play by the rules.
FYI – I was pushed repeatedly to run for president in NH in the early 2000’s – a ridiculous notion as I am not a politician and would never put myself in that role. It is not the highest and best use of my contribution. Finally someone demanded to know what I would require to be willing to do it. The first item I listed was 250 license to kill on my say so. The other person was deeply offended and exploded with rage.
The reality that number would be in the 1,000’s today, reflecting the nature of the enemy and what they respect.
Catherine,
I’m surprised at your apparent support of Duterte’s and Widodo’s policy of shooting drug dealers, many of whom don’t have the benefit of due process. Fro what I can tell (and I could be wrong), this policy appears to be aimed at the lower rungs of the drug trade and if it doesn’t include the top rungs, it’s a total waste of time. How many bankers/money launderers is he going to have shot? How many ship captains and owners is he going to have shot? How many politicians is he going to have shot? How many military/intelligence officers will he have shot? It’s virtually guaranteed that some of these type of people are involved in the drug trade. Where does it end?
A large number of drug dealers are drug addicts supporting their own habit. I’m not excusing their behavior, but shooting them down like animals has its problems.
Furthermore, this whole policy presumes that the police are not in on the racket to various degrees! That’s a big assumption. It’s entirely possible that the police start to take over the racket, if they have not done so already. Is he going to have police officers who are corrupt shot? Whose to say that some politician doesn’t accuse a rival of being a drug dealer and have him shot? This could lead to their society being totally ruled by the law of the jungle; this is extremely dangerous and is a playground for psychopaths.
If I have misconstrued your remarks, please let me know. Thanks.
Chad
Your points are well taken. However, someone in Duterte’s position can not protect his productive citizens from the CIA with due process. He is up against the most powerful machinery in the world – one that has mastered the art of buying everyone. What he can do is cut off their cash flow and make sure his citizens know that drug dealing will not be tolerated. More later.
https://mobile.nytimes.com/2017/07/21/business/media/wall-street-journal-editorial-writer-is-found-dead.html?referer=http://drudgereport.com/
Looks like the folks who did not want Obamacare repealed did not like what he was writing. If you look at the number of deaths in the last few weeks, the Midianite thing is accelerating. I expect a lot more killing
That’s why to me all this talk from Republican politicians about wanting to repeal Obamacare is bogus. The healthcare industry loves Obamacare and all of the additional revenue it has brought to them, and these same companies can contribute heavily to the Congressional re-election funds. The Republican politicians don’t want to lose these additional campaign funds, so any healthcare program that we end up with will still keep tons of money flowing from the people’s pockets into the healthcare industry.
There is no doubt that vested interests want to squeeze what they can out of Obamacare.
More population control.
http://www.breitbart.com/big-government/2017/07/20/tennessee-inmates-given-reduced-sentences-in-exchange-for-vasectomies-birth-control/
Balance the budget by all means necessary except decent food and education.
I enjoyed the Greg Hunter interview and like your idea that we should at least be told where the $40T went, but then I began to muse about what such an accounting would look like. Would it include as assets (12) Solar Warden carriers, the depreciation on same, etc., and if so, wouldn’t we see that same money flowing through Lockheed-Martin, Boeing, General Dynamics, KBR, Halliburton, etc.? In turn, wouldn’t it be flowing through their banks, eventually ending up in the already recognizable economy? I don’t think it’s there, which suggests the ‘open’ economy leads somewhere invisible to us. This then begs the question of what is the transcendent currency, which as its very term implies, must flow for it to have any purpose. Money, like a river, has a velocity and area, which multiply to a quantity in a given time. That quantity must pass through other measurement places, even if we cannot see where it eventually goes. Where might we take such a downstream measurement?
If you look at how much was flowing through investment and LBO firms in 1998-99, I think there is plenty right here on earth in the open economy.
Step one = amount leaving government = grab back by common law right of offset and escrows
Step two = hold private banks and defense contractors liable – offset against liabilities or exercise ownership of shares
Step three – identify investment firms who received – assert ownership of assets
Step four – identify assets – seize assets.
between 1989 and 2010, U.S. attorneys seized an estimated $12.6 billion in asset forfeiture cases. The growth rate during that time averaged +19.4% annually. In 2010 alone, the value of assets seized grew by +52.8% from 2009 and was six times greater than the total for 1989. Then by 2014, that number had ballooned to roughly $4.5 billion for the year, making this 35% of the entire number of assets collected from 1989 to 2010 in a single year. Now, according to the FBI, the total amount of goods stolen by criminals in 2014 burglary offenses suffered an estimated $3.9 billion in property losses.
http://www.zerohedge.com/news/2017-07-19/feds-just-expanded-civil-asset-forfeiture-laws-nationwide
‘The Feds Just Expanded Civil Asset Forfeiture ‘Laws’ Nationwide’
http://www.zerohedge.com/news/2017-07-19/feds-just-expanded-civil-asset-forfeiture-laws-nationwide
Very bad news. Trump is not the only person who is sorry he appointed Jeff Sessions.
Catherine, thank you for hosting the interview with Joseph Farrell interview. I really welcome his perspective and insight. My one comment to both of your questions as to “WHY is the Deep State so militaristic in the Middle East?” appears obvious to me and yet I don’t hear you mention it.
The King Dollar global reserve system is entirely dependent on demanding that all oil sales be performed using the US$. Regimes unfriendly to the US$ get attacked by ISIS (Langley) or the West. Without foreign central banks holding US treasuries, our economic and monetary system based on consuming what others produces and exporting debt and military hardware in exchange would have collapsed a long time ago.
Cynthia McKinney put this up on Twitter with the note “Pray for the Becks, publicity is the only protection they have now”.
Please offer some comment.
https://twitter.com/cynthiamckinney/status/887367838062698497
I agree. Pray, donate and repost their story.
Hi Catherine,
I think you are aware of the video stream Truthstream Media, but I wanted to send you their latest video on DARPA… It would make a good post on your website, I think. https://www.youtube.com/watch?v=Fmo28AV9y4I
A Google-affiliated company, formerly known as Google Life Sciences, is releasing 20 million bacteria-infected mosquitoes in Fresno, California:
https://techcrunch.com/2017/07/14/googles-life-sciences-unit-is-releasing-20-million-bacteria-infected-mosquitoes-in-fresno/
Here’s additional information, including a video describing the project:
https://blog.verily.com/2017/07/debug-fresno-our-first-us-field-study.html
And here’s one more article on the subject:
https://www.rt.com/usa/396390-mosquito-verily-field-fresno/
In follow-up to your interview with former Congresswoman Cynthia McKinney, here’s a video clip where she discusses the pressure that’s exerted on members of Congress to sign a pledge of loyalty and support to the State of Israel, and if they don’t sign, their campaign funds begin drying up:
https://www.youtube.com/watch?v=hXaCym8RjJU
Good one. I posted on the wrap up.
FYI, Catherine. Here is a very good speech talking about how TPTB have been taking advantage of the Mexican people from a Mexican’s perspective. I’m sure you are aware of these tactics, but he concisely lays out the tactics and strategies that are being used against the Mexican people, which concurrently create conditions that pit the average American against the average Mexican, which of course, creates all sorts of profits off of misery.
Chad
https://www.youtube.com/watch?v=uQaIEnQz6RY
This guy is great. Will post.
Great! Perhaps he would be a good person to interview.
Here’s a five-minute video interview that Tucker Carlson did last night with Robert F. Kennedy, Jr. on the subject of vaccine safety. During the interview they discuss how it’s become very inappropriate to even question vaccine safety, how television show hosts are afraid to even talk about it, and RFK Jr. even mentions that taking up the cause of vaccine safety has now become a bad career move for him:
http://video.foxnews.com/v/5501347308001/?playlist_id=5198073478001#sp=show-clips
‘Chinese city to launch ‘unhackable’ quantum network’
http://www.scmp.com/news/china/policies-politics/article/2101934/chinese-city-launch-unhackable-quantum-network
“Tests on the system in Jinan in the east province of Shandong had been completed and the network would start operations next month to provide extremely secure communication for nearly 200 users, state-run China Central Television reported.
Zhou Fei, assistant to the director at the Jinan Institute of Quantum Technology, said the first users would be in the government, military, finance and electricity sectors.
“This is a milestone for quantum communication in China and the world,” CCTV quoted Zhou as saying.”
Yup
Here’s a great resource for the truth on “climate change”: http://www.suspicious0bservers.org. Titanic Turner Ben Davidson posts a concise earth & sun report every morning on this site with supporting links. He has published citizen science research papers and a short book “Weatherman’s Guide to the Sun.” He has an earthquake prediction app based on sun stats and other data that’s giving impressive results so far.
Kathryn:
I have always thought it would take me a year or more working full time to figure out who is trustworthy in this space. I am still looking for my Richard Dolan of weather and geophysical risk,
Catherine
And now, a way to phony the Bitcoin market. Not liking it at all.
“It is now the first federally regulated bitcoin options exchange and clearing house which will list and clear fully-collateralized, physically-settled bitcoin options for the institutional market.”
‘CFTC Approves Options Trading In Bitcoin’
http://www.zerohedge.com/news/2017-07-08/cftc-approves-options-trading-bitcoin
Yup. ETFs soon.
I enjoyed the interviews with William Binney and Cynthia McKinney. I would love to hear your observations on Bangladesh.
‘Monsanto Creates First Genetically Modified Strain of Marijuana’
http://worldnewsdailyreport.com/monsanto-creates-first-genetically-modified-strain-of-marijuana/
This is a court case about the possession of Iraqi artifacts. https://www.justice.gov/usao-edny/press-release/file/978096/download
Very important find. Importance that the secret societies place on cuneiform artifacts is very significant.
Thank you Catherine for your generous fourth of July submissions. The elegant book review on The Fourth Turning was most helpful (Strauss and Howe’s work seems to require rereading) and the Declaration of Independence takes on increasing relevance as each year passes. How glorious it would be if the War during this Crisis period were fought against the banker/corporatocracy/Deep State by (thank you) enlightened followers of Real News marching behind the banner of the Sacred Lollypop. Wouldn’t that be Super?
Getting back to July 2017, I wish I could visualize our heroic Leader fighting to restore a productive multi-pleural world rather than return us to post-WWII dominance and neo-con type super-dominance. I don’t believe it’s in his mindset. Would you comment on this and what role, if any, we might take to change this?
You mean….”Isn’t it Super!”
OK, will do in Money & Markets
Catherine,
I have been following you for 6 months.
Your interview with Cynthia McKinney was the most powerful summary of what is happening in the US and the world.
It speaks to what is happening today, rather than anecdotal stories from 20-50 years ago.
It breaks the taboo of bringing up the role of Israel.
Mike Scanlan
Thanks, Mike. Please spread far and wide!
Catherine
As other subscribers have suggested, I agree with the recommendations of certain that many of your lectures or podcasts be transcribed and turned into simple booklets to be given out to the public and government officials. Many more people would likely read the booklets than would have a chance to listen to the lectures. Also, these type of booklets could be prepare relatively quickly.
Also I think more specific issues papers and/or petitions should be circulated and maybe even legislative voting tally websites for relevant issues be created. As a second career licensed California lawyer I would volunteer to help with this if a substantial numbers of others participated. Peter
Peter:
I hereby authorize every Solari Report subscriber to print out and give a copy of any Solari Report transcript to their public and government officials.
Catherine
‘China opens its bond market to international investors’
http://www.sltrib.com/home/5470200-155/story.html
‘Even Powerful Senator Can’t Get U.S. Intelligence Agencies to Tell Him Whether They’re Spying On Him … Or Whether Spying Could Be Used to Blackmail Him’
http://www.washingtonsblog.com/2017/07/68310.html
“Washington’s Blog asked the highest-level NSA whistleblower of all time – Bill Binney* – what he thought.
Binney responded:
They won’t tell him because his communications with foreigners and domestically [background] are being collected and probably targeted. That’s why they don’t ever want to tell senators or representatives or the president or federal judges etc. their communications are collected and scanned.
Further, they won’t tell them how many US citizens are in their databases … again because it’s about 280 million by my estimates.
All of these acts are crimes against the constitution and laws of the US which should put them in jail. (see attached)
These letters are a direct violation of the intelligence acts of 1947 and 1978. But, who cares, the intelligence community runs the US government anyway.
[…]
In case you think this is a one-off, remember that the Chairman of the Senate Intelligence Committee said in 2007:
Do you think that because I’m Chairman of the Intelligence Committee that I just say I want it, and they [the intelligence agencies] give it to me? They control it. All of it. ALL of it. ALL THE TIME. I only get – and my committee only gets – what they WANT to give me.
[…]
And the courts don’t have any oversight over the intelligence agencies either:
• A Federal judge who was on the secret spying court for 3 years says that it’s a kangaroo court
• Even the current judges on the secret spying court now admit that they’re out of the loop and powerless to exercise real oversight.
• When these judges raised concerns about NSA spying, the Justice Department completely ignored them
• The secret spying court recently noted that there is an institutional “lack of candor” at the NSA, and that the agency’s illegal spying constitutes a “very serious” constitutional issue
In other words, the intelligence agencies are rogue.”
Yup. The whole machinery is out of control. But hey, they keep the stock market up, right?
Worth thinking about – does AT&T also have it and who is regulating them? Or Comcast or Verizon….or Google, or Skype/Microsoft.
Back in the Bill Clinton era when they were pushing “efficiency” privatization hot and heavy, somehow noticed a headline that the Pentagon had outsourced the management of outside contractors to outside contractors! How many National Security letters are there allowing Google or Facebook, etc not to report real corporate numbers? Both were helped along with early investments of CIA money. Don’t know how many still trust the legacy fake news media, but their replacements -Google and Facebook- do most of the new controlling via algorithms — how efficient.
http://truth-out.org/archive/component/k2/item/63051:negroponte-given-power-to-waive-sec-rules
Negroponte Given Power to Waive SEC Rules
Thursday, 25 May 2006 05:23
by: Anonymous
Also see below:
Intelligence Czar Can Waive SEC Rules [
Negroponte Given Power to Waive SEC Rules
By Dawn Kopecki
BusinessWeek
Wednesday 24 May 2006
President Bush has granted his intelligence czar the authority to exempt publicly traded companies from reporting requirements – in the name of national security. Kai Ryssdal talks with BusinessWeek reporter Dawn Kopecki.
Transcript
Kai Ryssdal: Don’t know if you caught this in the papers this morning, but the Federal Communications Commission isn’t going to investigate the NSA. FCC Chairman Kevin Martin said his agency can’t look into the government’s domestic surveillance program because … it’s classified. The guy in charge of most of the classified stuff in this country is John Negroponte. He’s the National Director of Intelligence. And President Bush just gave him something else to do, too. Dawn Kopecki’s a correspondent for BusinessWeek. Dawn, what is that’s happened?
Dawn Kopecki: The President just delegated authority to John Negroponte that allows him to exempt any publicly traded corporation that is working on national defense issues or national security issues from the reporting and accounting requirements under the 1934 Securities and Exchange Act. It’s basically the rules and regulations that require companies to keep accurate records, acurate books, accurate accounting … and then disclose those projects and that information to investors.
Ryssdal: This authority, this power that the President has to do this is not necessarily new. It’s the use that you’ve uncovered.
Kopecki: Well, we’re not actually sure whether or not it’s been used before. Every president since Jimmy Carter has had this authority. It was given to the president in 1977 in the Foreign Corruption Act. We don’t know whether or not it’s been used by the President, but what we do know, or what the White House told us, is that they don’t believe any president has ever delegated that authority to anyone outside of the Oval Office.
Ryssdal: When the President signs memoranda like this, in most cases it has to be published in the Federal Register. I’m going to guess, though, that the subject heading in the Federal Register of how this was listed didn’t say “President lets John Negroponte decide what companies have to report their books. How did you find this story?
Kopecki: I’ve covered a lot of different issues over the years in Washington, and one of them is securities laws. One of my securities sources knew that I was now covering defense issues and he called me up and said, “Hey, did you see this?” I knew that it was probably a little bit bigger than what the White House and other blogs and what-not had eluded to.
Ryssdal: The memo that the President signed was dated May 5. Talk to me about the timing of this for a second.
Kopecki: Well, May 5 is the day that Porter Goss stepped down from the CIA. It’s also six days before USA Today published its story that three major telephone companies had turned over massive amounts of customer calling records to the federal government, that the NSA was using to data-mine and look for patterns and, basically, spy on.
Ryssdal: Now, if you play this out, conceivably what this rule now means is that AT&T and Bell South and Verizon, who have these government contracts – it’s been reported in the papers – have these government contracts to sell customer data to the government, they may never have to report that income or how the finances of that program worked.
Kopecki: It’s true. That could be one possibility. The White House, when I asked them point-blank whether or not any company, including those telephone companies, had been given this waiver, they said no comment. Negroponte’s office hasn’t called me back since I sent them my questions two days ago. We really don’t know, and I believe, and what securities attorneys have told us, is we may never know because it doesn’t require anyone to disclose it to anyone outside the Senate and House intelligence committees.
Ryssdal: Dawn Kopecki’s a Washington correspondent for BusinessWeek magazine. Dawn, thanks so much for your time.
Kopecki: Sure.
Go to Original
Intelligence Czar Can Waive SEC Rules
By Dawn Kopecki
BusinessWeek
Tuesday 23 May 2006
Now, the White House’s top spymaster can cite national security to exempt businesses from reporting requirements.
President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.
Unbeknownst to almost all of Washington and the financial world, Bush and every other President since Jimmy Carter have had the authority to exempt companies working on certain top-secret defense projects from portions of the 1934 Securities Exchange Act. Administration officials told BusinessWeek that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office. It couldn’t be immediately determined whether any company has received a waiver under this provision.
The timing of Bush’s move is intriguing. On the same day the President signed the memo, Porter Goss resigned as director of the Central Intelligence Agency amid criticism of ineffectiveness and poor morale at the agency. Only six days later, on May 11, USA Today reported that the National Security Agency had obtained millions of calling records of ordinary citizens provided by three major U.S. phone companies. Negroponte oversees both the CIA and NSA in his role as the administration’s top intelligence official.
Few Answers
White House spokeswoman Dana M. Perino said the timing of the May 5 Presidential memo had no significance. “There was nothing specific that prompted this memo,” Perino said.
In addition to refusing to explain why Bush decided to delegate this authority to Negroponte, the White House declined to say whether Bush or any other President has ever exercised the authority and allowed a company to avoid standard securities disclosure and accounting requirements. The White House wouldn’t comment on whether Negroponte has granted such a waiver, and BusinessWeek so far hasn’t identified any companies affected by the provision. Negroponte’s office did not respond to requests for comment.
Securities-law experts said they were unfamiliar with the May 5 memo and the underlying Presidential authority at issue. John C. Coffee, a securities-law professor at Columbia University, speculated that defense contractors might want to use such an exemption to mask secret assignments for the Pentagon or CIA. “What you might hide is investments: You’ve spent umpteen million dollars that comes out of your working capital to build a plant in Iraq,” which the government wants to keep secret. “That’s the kind of scenario that would be plausible,” Coffee said.
Authority Granted
William McLucas, the Securities & Exchange Commission’s former enforcement chief, suggested that the ability to conceal financial information in the name of national security could lead some companies “to play fast and loose with their numbers.” McLucas, a partner at the law firm Wilmer Cutler Pickering Hale & Dorr in Washington, added: “It could be that you have a bunch of books and records out there that no one knows about.”
The memo Bush signed on May 5, which was published seven days later in the Federal Register, had the unrevealing title “Assignment of Function Relating to Granting of Authority for Issuance of Certain Directives: Memorandum for the Director of National Intelligence.” In the document, Bush addressed Negroponte, saying: “I hereby assign to you the function of the President under section 13(b)(3)(A) of the Securities Exchange Act of 1934, as amended.”
A trip to the statute books showed that the amended version of the 1934 act states that “with respect to matters concerning the national security of the United States,” the President or the head of an Executive Branch agency may exempt companies from certain critical legal obligations. These obligations include keeping accurate “books, records, and accounts” and maintaining “a system of internal accounting controls sufficient” to ensure the propriety of financial transactions and the preparation of financial statements in compliance with “generally accepted accounting principles.”
“We really don’t know, and I believe, and what securities attorneys have told us, is we may never know because it doesn’t require anyone to disclose it [the exemption] to anyone outside the Senate and House intelligence committees.” I doubt they tell legislators either, if they ever did. As you say at least they keep the stock market up; have to have places to keep the stolen Trillions of public dollars. I tell people Nazis were folded into the US Intelligence Services after WW2, infected the organizations, and eventually took them over –people don’t want to consider it. Folks are nervous though. Thank you so much for standing up, with your eyes open, so the rest of us can get a bigger picture.
Thank you for the Binney talk.
That wasn’t enough had to have more. Also worth watching:
‘NSA Whistleblower William Binney: The Future of FREEDOM’
https://www.youtube.com/watch?v=3owk7vEEOvs
That one was in the list of links – check out the other links. Lots of good stuff from Binney. Make sure you watch A Good American and the Maze. Very helpful in understanding the big picture.