Danny Jones Podcast
#305 - $21 Trillion Black Budget is Funding a Rogue Breakaway Civilization | Catherine Fitts
Mon, 26 May 2025
Watch every episode ad-free & uncensored on Patreon: https://patreon.com/dannyjones Catherine Austin Fitts is an investment banker and former Bush administration official known for her incisive critiques of government finance and advocacy for transparent economic systems. She later established Solari, Inc., and publishes The Solari Report, offering insights into global finance and governance. SPONSORS https://chubbiesshorts.com/danny - Use code DANNY for 20% off. http://evening.ver.so/danny - Use code DANNY for 15% off your first order. https://trueclassic.com/danny - Upgrade your wardrobe & save. https://whiterabbitenergy.com/?ref=DJP - Use code DJP for 20% off. EPISODE LINKS https://solari.com FOLLOW DANNY JONES https://www.instagram.com/dannyjones https://twitter.com/jonesdanny OUTLINE 00:00 - How mortgage fraud funds U.S. covert operations 09:43 - The flawed central banking model 22:54 - Holes in the federal healthcare budget 26:46 - The control grid - CBDCs enable modern slavery 35:28 - Installing "operating systems" in human bodies 41:12 - Following the money to find fraud 49:09 - U.S. Treasury is missing $4 trillion 50:08 - U.S. is funding a breakaway civilization 01:06:44 - Catherine receives death threats 01:08:04 - The Bank of International Settlements & invisible money 01:13:12 - Musk's xAI data-mining the federal treasury 01:17:55 - The U.S. Government is lowering life expectancy 01:29:07 - Trump is accelerating the control grid 01:37:07 - Joseph Farrell & the breakaway Nazi civilization 01:47:41 - Russia's attempt to recruit Catherine 01:51:46 - Genetic engineering & advanced energy sources 01:58:45 - The secret economy 02:08:46 - Mr. Global 02:17:39 - AI, Morality & Religion 02:27:28 - How to stop our downward spiral Learn more about your ad choices. Visit podcastchoices.com/adchoices
Chapter 1: How does mortgage fraud fund U.S. covert operations?
Well, thanks for coming here. I'm really excited to talk to you.
Thank you. As I said, I really enjoy your show.
So for people that don't know, can you kind of give us a summary of your background in the government, working with the Bush administration and then getting into like finance and all this stuff?
So I grew up in Philadelphia and I got very interested as a child on, I got very interested in money and why everybody was destroying everything on the theory that somehow that made them money. And so I decided I was going to understand how all the money worked in a neighborhood.
And what I didn't understand until I went to Wall Street is you literally have to know how all the money on the planet works to understand how the money in a US neighborhood works.
because it's organized it's very centralized and it's organized so that you know so if you and i go to the white house we'll say here's how all the money works on housing here's how all the money works in military but it doesn't say here's how the money works you know in west philadelphia so you can't now with relational databases you you could and i've worked on that but anyway so i went to wall street because i wanted to learn how all the money the planet works
And I went from sort of department to department to department, learning all the different markets. And then I figured out, you know, it's all being rigged from Washington. It's the Treasury and the Fed. So I got to go to Washington. So I went to Washington. I was a partner at a firm called Dylan Reed.
And in fact, I have an online book called Dylan Reed and the Aristocracy of Stock Profits about sort of it's a case study in the intersection between organized crime and Wall Street in Washington. Anyway, so I went to Washington in the first Bush administration to be assistant secretary of housing. And it's the federal housing commissioner.
And that's the person who oversees all the mortgage markets, both the credit, most of the credit and then the rules and regulation. So, and I ran smack into all the mortgage corruption because a lot of the black budget is financed with mortgage fraud. And anyway, so I left, but I discovered the internet when I was in the administration.
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Chapter 2: What are the flaws in the central banking model?
And so I created an investment bank that could use software tools basically to get all the information about how the money works and make it accessible to neighborhoods. So, anyway, but my company, I started a company called Hamilton Securities Group. It was very successful. And we got hired on competitive bid by the Clinton administration.
So I worked in the Bush administration, but we got hired by the Clinton administration to be financial advisor for the FHA. And we led $10 billion of mortgage auctions trying to stop the mortgage fraud, which was they had other ideas. They wanted to take the mortgage fraud the other way so we could have the financial crisis.
Anyway, so I ended up in 11 years of litigation with the federal government, with the Department of Justice. Have you ever seen the movie Enemy of the State?
Yeah, it's been a long time.
I played Will Smith in real life.
Oh, wow.
I played Will Smith in real life. So we had 18 audits and investigations, 12 tracks of litigation, physical harassment, a smear campaign. It was I mean, it was right out of the movies. And of course, so so Will Smith is a successful attorney. And in fact, his office in the movie is right next to where my office was. Our company office was in Washington, D.C.
And, you know, everything's crazy and the world makes sense until he finds Gene Hackman, who's a former NSA employee, who explains how covert operations were. And in fact, now, if you come to the Saleri Report, we have a whole 12-part series called Deep State Tactics. So if you can't find Jean, you can listen to Deep State Tactics and understand how it all works.
Anyway, but I got a real crash course. I'll never forget. First time I saw Enemy of the State, I'm like up in the front row and I'm like, oh, it's my training movie. Right.
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Chapter 3: What are the holes in the federal healthcare budget?
And it had a huge sign and it said, by order of the Assistant Secretary of Housing, Federal Housing Commissioner. And I used to think, who is that asshole? And so when I literally, when I was sworn in, they said, by order of the president, you are now the assistant secretary of housing. I said, uh-oh, I'm the, you know. And I went downstairs and I said, how many boarded up homes?
How many foreclosed properties do we have in the foreclosed industry? My deputy said 50,000. I said, well, that's going to change. And that was part of the problem. But okay, so let's look at the basic fraud. So there's a home in the foreclosed property inventory of the Federal Housing Administration. They had financed a mortgage.
They put an insurance policy on the mortgage so they take the credit risk. It defaults. They pay off the mortgage holder and then take back the properties. The property is sitting there in inventory, okay? So let's say the property is worth $100,000.
So like when you find a house for sale on HUD auction, this is that's the situation.
Chapter 4: What is the control grid and how do CBDCs enable modern slavery?
Yes, probably. Probably. OK, so so let's say the house is worth one hundred thousand dollars. OK, you sell the house to someone or or or you who's going to do sort of a quickie fix up. OK, so. And you let them turn around and sell it at – you put a mortgage – let's say it's worth $150 now. They've fixed it up. You put a mortgage on it for $250, a lot more than it's worth.
They sell it to a not-for-profit who immediately defaults. Right. You pay off the 250 mortgage and take the property back and you keep doing it again and again and again and generating lots of money out the back door. So when I became FHA commissioner, we would find private one property in Chicago, which had financed and defaulted five times in one year. I know. Imagine that.
Anyway, so but here's here's how I can make even more money.
I had a friend who did this. Not a friend. He was a guy who came in. He was one of my first guests on the podcast. And he was he was buying up houses in Tampa. And he was taking them and getting his friend to go do appraisals on them and like marking the appraisal up by like five X and then getting loans on it.
Right. That's a variation. Now, here's how you really make a lot of money. When you issue the mortgage, you don't issue one mortgage. You issue 10 mortgages on that house, and you put them in a mortgage pool that's wrapped by Ginnie Mae so you can sell them in Dubai, and nobody knows the difference. Right. And as long as there's money, you can skim out the back door of the FHA fund. No problem.
Wow. Right. And it's it's really funny. So so I had warned people about this kind of fraud, both when I was assistant secretary and then when I was the lead financial advisor. But, you know, you're you know what it's like when you fight these winds and and. So I'm driving down the highway in Georgia and my old roommate from college calls me and she says, Fitz, have you seen the Soprano TV shows?
They have the HUD frauds on the Soprano TV shows. And she said, I guess you're telling the truth. And I said, wait a minute. So I was the former assistant secretary of housing and then I was the lead financial advisor for HUD. And I've told you about this for years. You don't believe me until it's on the Soprano TV show. And she said, that's right.
So I said, that's why I say in America, fact is fiction and fiction is fact. If it's on the news, it's likely fiction. You know, if it's on the Soprano TV show, there's a... Oh, yeah. You know, you're getting your training filmed.
Yeah. That's an interesting way of looking at it.
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Chapter 5: What does it mean to install 'operating systems' in human bodies?
Well, remember, during the financial crisis, within a very short period of time, there was more money shoveling out the door. I mean, the TARP IG said total money... the taxpayers financed 27 trillion. $8 trillion would have paid off all the single family mortgages in the country. Right. So the total bailout of the mortgage fraud was three times all existing mortgages in the country.
That's bananas.
So one of my favorite quotes, I was told by a former intelligence officer who was involved in the financial fraud that Oliver North had said that HUD was the candy store of covert revenues. And based on what I cleaned up and what I dealt with, I'm absolutely convinced.
HUD was the candy store of covert revenues. That is... That's got a nice ring to it.
Yeah.
Okay, so can you explain to me, and I know you've done this well on other shows, but how does the banking system work? I know everybody thinks about how like the bankers control the world. It's like the bank, it's the bankers, the intelligence agencies and the money washing with the drug cartels and all this stuff with funding, you know, wars and overthrowing countries.
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Chapter 6: How does following the money help uncover fraud?
And there's so much going on here. But the very top level of all of this stuff is the bankers, right? Yeah.
Right. So here's how the, you know, any business, any enterprise and any planet has a business model, an economic model on how the fundamental walk. So the Western world for 500 plus years has operated on a model called central banking warfare model. Okay.
The central bankers print money out of thin air, and I'm grossly oversimplifying, but they create the money, and then the military makes sure that people take it, okay? And that keeps the liquidity going. So there are two sides to the coin. And when you say military, think intelligence and military, because surveillance is such an important part of the force.
So you literally have the bankers running monetary policy, but then you have the military and intelligence backing it up. And you need both. It's like two hands of one coin. It's like two sides of a coin. And what the bankers do, you grew up in the United States. Most people listening to this grew up in the Western world.
And we've had for over a century a model where the bankers run monetary policy and then the people's representatives run fiscal policy. So the whole basis of the American Revolution was no taxation without representation. That means the people's representatives, the Congress or the state legislature, run the fiscal policy the way it's supposed to be.
And what has happened in America for the last 20 years is is we've had what I call a financial coup d'etat, where the bankers decided we can't trust the people and the people's representatives to manage the fiscal side, so we're going to change the model and we're going to take over control of both monetary and fiscal.
And of course, if that succeeds, and it's gone very far, but it's not all the way, so let's say we've gone 70% of the way, we have 30 more to go, if that happens, then we lose the ability to determine taxation In other words, we get no representation. If they want the money, they just take it out of our accounts.
Could you explain for a third grader what fiscal policy means?
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Chapter 7: Why is the U.S. Treasury missing $4 trillion?
Sure. Monetary policy means I get to create the currency. Fiscal policy means I get to collect and spend the taxes.
Chapter 8: What does Catherine mean by a breakaway civilization?
okay so so so let's look how your federal government works your federal government grossly oversimplified gets about half of its money to you know fix the roads and do it and run the military um and it gets the money by half of the money from taxing so we all pay federal taxes we all have fees various fines whatever half the money comes from the taxes and half from where
Half comes from the central bank.
Okay, got it.
The central banking mechanism right now, the currency is issued with debt. It doesn't have to be, but it is. So the New York Fed, so the Treasury, your bank account as a citizen, the New York Fed is the depository for your bank account. Okay.
okay so they are the federal government's bankers the treasury account is at the new york fed and its members banks so the new york fed is owned by its members but they also act as agent so you're going to have the largest banks in the country owning and directing the new york fed choosing its president but also you know doing depository functions for the treasury so they as agent are also doing various things for the treasury okay
So they have a function called primary dealer. And a primary dealer is authorized to go borrow money using treasury bonds and bills. So they borrow money. So that's sort of part of how the currency gets into existence. And they put it in the treasury bank account. So half comes from taxes and half comes from borrowing. A lot of that coming from your retirement account or my pension fund. Wow.
Okay. Okay. Okay. So, so our retirement fund, or it could be a Norwegian pension fund or sovereign wealth fund, you know, are buying treasury bonds and the money's going into the bank account. And that's where half comes from, which is why if you're the president of the United States, it's like getting an allowance from dad. If you don't do what dad wants, you're not going to get your allowance.
You don't have sovereignty. You don't have financial sovereignty. And you don't have information sovereignty because you, as the president, can't have a private telephone call. You've got 17 intelligence agencies. Even the president. Especially the president. Especially the president. They'd much rather know what he's saying than you or I was saying. Right. I guess that's true. Right. Okay.
Wow.
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