Musings on the Department of Defense

~ A Posting to Sasha Latypova’s Substack ~

By Catherine Austin Fitts
June 2024

Our task is to look at the world and see it whole.”
~ E. F. Schumacher

Read the PDF here.


One of the reasons I am grateful for Sasha Latypova’s work and that of her colleague Katherine Watt is their contribution to helping us understand the controlling role played by the Department of Defense (DOD) in Operation Warp Speed and the most recent round of poisoning and bankrupting Americans during the Covid-19 operation.

The latest Rasmussen poll from May 2024 indicates that nearly one out of five Americans surveyed know someone who was killed by the Covid shots.1 Various statistics and estimates of the rising number of Americans disabled by the shots or still working but made chronically ill indicate that the problem is far wider than just the death toll. Fertility and life expectancy statistics, too, indicate that what I describe as “the Great Poisoning” is accelerating.

People from all walks of life are pushing back against the steady technocratic centralization of control. One of the most powerful ways to push back is through the financial system, including the intertwined systems that govern taxation, banking, and investments. If the federal government is operating outside the law—and certainly poisoning and bankrupting American citizens counts as such—then we need to stop financing its criminal behavior and find ways to finance the movement of our institutions back into lawful governance and management. To do that, it is essential to understand how the money works at the institutions involved.

To that end, I thought I would provide some musings on the Department of Defense and its finances in the hopes that this may help identify effective ways to push to enforce the law as expressed by the Constitution—that is, as opposed to new “rules” invented under the pretense of an emergency (such as we experienced pursuant to DOD’s Operation Warp Speed) or surprise legislation pushed through using the pretext of a national security threat (such as the Patriot Act, which I sometimes refer to as the “Consolidation and Concentration of Cash Flow Act”). This requires mentioning a variety of events in which I have encountered the extensive activities of the Defense Department. These events may appear disparate—hence the title “Musings”—but bear with me while I connect the dots.

The Central Banking-Warfare Model

For approximately 500 years, the Western world has operated on an economic model sometimes referred to as the “central banking-warfare model.” In brief, the central banks create money, and the military and intelligence services make sure that the money is accepted in trade for labor and natural resources; military-intelligence players also help provide the necessary enforcement that supports liquidity of the money and related instruments such as bonds and stocks. (For a full description, see my discussion of the dollar system in my 2019 report, The State of Our Currencies: The End of Currencies.2)

Every 100 or so years, the reserve currency system seems to go through a reset. We are currently in the midst of such a reset. For centuries, dominance of trade routes, and particularly the sea lanes, helped to determine the reserve currency; the British Navy—and then the U.S. Navy—played an important role in this regard. As more and more information, transactions, surveillance, and even weaponry have been processed by or with the help of satellites, dominance of the satellite lanes also has grown in importance. Hence, we see the military creating the U.S. Space Force.

I remember a famous reporter who once was fired by a major network as they censored her story about sarin gas (a chemical nerve agent). Senior management and the network’s general counsel had already edited, approved, and cleared the story for publication. Nevertheless, it was canceled because DOD made it clear that the network, which was highly dependent on satellite operations, might find itself experiencing interference. In theory, that meant that the network might find its broadcasts running slower than those of its competitors, or might be subject to interruptions or even be shut down. At the Solari Report, we certainly have experienced these phenomena many times, particularly when we are covering highly sensitive topics. These forms of interference can be quite expensive and hard on team morale, as well as alienating and frustrating our subscribers. This is one of the reasons we now prerecord our shows.

All media operations and financial institutions depend on reliable high-speed communications. That means that DOD controls their hardware—whether cables under the ocean or satellites in the sky. That’s why, when you see a movie or a media story distributed in the Western world, you can appreciate that DOD let it happen. Not every movie or media story is allowed through.

Playing controller and traffic cop on both the sea and satellite lanes requires building an expensive global infrastructure that has very high maintenance costs. Although the U.S. central bank and its owners can create that money out of thin air, the labor and resources they trade for must carry the full expense of the infrastructure and generate a return. The growing costs—and the opportunities afforded by new digital technologies—mean that central bankers will find central control of infrastructure, surveillance, and enforcement inherently attractive.

The central bankers began a new reset in 2019 called the Going Direct Reset. The Solari Report published John Titus’s brilliant review for subscribers,3 as well as a public summary.4

The best way to understand DOD’s Operation Warp Speed (OWS) is in the context of the Going Direct Reset—OWS is one aspect of the implementation of this reset. By the very nature of the central banking-warfare model, the central bankers and military must act and pivot together.

Planet Debt

Debt is one of the key components of the central banking-warfare model. An indebted country, business, or person is controllable. If a foreign country borrows in dollars, they need to earn dollars to service and pay back their debt. When the U.S. Treasury issues its currency with debt instead of issuing greenbacks directly from the Treasury without debt, it finds itself highly leveraged and dependent on the central bank and the bond market.

Recent reports from around the world indicate that national heads of state and officials are going along with various pandemic and health restrictions that are not in the best interests of their people because their countries are in a debt trap; if they do not go along, their loans will not be renewed. There is an old saying: “All wars are bankers’ wars.” Debt is part of that game—interest is part of the tithe to the empire. In a scene from the movie The International, when a U.S. Assistant District Attorney asks an Italian arms manufacturer why a bank would be purchasing hundreds of millions of dollars of the company’s armaments, he explains:

“It’s about control…. [The bank’s] objective isn’t to control the conflict, it’s to control the debt that the conflict produces. You see, the real value of a conflict, the true value, is in the debt that it creates. You control the debt, you control everything…. [T]his is the very essence of the banking industry—to make us all, whether we be nations or individuals, slaves to debt.”

The International - banking scene
The International - banking scene

If countries need to earn dollars to carry their dollar debt, then essentially they need to earn them from the people who control the dollar system. This means they need to trade—typically across the trade routes that the empire controls—and they need to hold dollars. Ultimately, no matter where those dollars are in the world, they will be deemed to be under the jurisdiction of United States authority and law.

Recent reports on the erosion of the U.S. dollar’s petrodollar status often fail to consider the extent to which the petrodollar has been replaced by a global “debt dollar.”

DOD: A Big Annual Budget

The annual budget request by the Department of Defense for fiscal 2025 is $849.8 billion. That is a lot of money. In fact, when you break that budget down, by state and county, into spending, employment, and health and retirement benefits for all the branches and operations of DOD, its contractors, and the companies it purchases from or awards grants to, you will discover that military spending has a significant impact on every local economy in America.

In most counties in America, total federal spending, purchases, and retirement checks constitute more than 40% of the local GDP. In some counties, especially those with large military bases and installations, it is even more. America’s national security payrolls, contracts, and acquisitions buy a lot of Congressional, state, and local clout. It is fair to say that military policy is often organized around what generates stock market profits—and employment and revenues in Congressional districts—as opposed to what is needed to ensure a high-performance military. No doubt, as the military-intelligence establishment launches more satellites and implements more surveillance—allowing DOD and U.S. intelligence agencies to track and influence what each of us is saying and doing—it accumulates even more clout at the state and local levels, including by building control files5 on local officials and decision-makers.

In 1987, I was invited to a budget briefing by the Department of Defense. We had an impressive briefing from a very capable intelligence analyst from Defense Intelligence and then had dinner with Secretary Caspar Weinberger in his private dining room with approximately 15 captains of industry, two token female Wall Street executives (I was one), and one young tech entrepreneur. The goal of the dinner was to achieve lobbying support to pass the proposed DOD budget through Congress. It was clear how dependent numerous companies were on military purchases, the Detroit auto companies among them.

At one point, the tech entrepreneur started suggesting ways that new technology could be used to dramatically improve military performance while slashing costs. You could have heard a pin drop. He clearly did not understand the cost-plus contracting model and the unmistakable goal to generate ever-growing revenues for a high-overhead defense infrastructure that employed and kept busy a majority of the scientists and engineers in the country, not to mention law firms and lobbyists, all of which financed a lot of campaign contributions.

Which is to say that wherever you are in America, if you follow the money, invariably it will lead back to a military or intelligence budget and related political leashes, most involving contracts, purchases, grants, and/or payrolls. It pays to track those leashes into your community, company, employer, and family and friend circles. Inevitably, those intimate connections are there.

My DOD Employment Offer

In 1988, I was sitting in my office at Dillon Read. I was a managing director and member of the board of this Wall Street investment bank. Our chairman had just agreed to serve as Secretary of the Treasury at the end of the Reagan Administration in anticipation of George H. W. Bush winning the presidential election. Out of the blue, I received a call from White House Personnel asking me if I would serve as an Assistant Secretary at DOD. I was shocked to be offered a position at the Pentagon—this was well outside of my area of expertise.

When I asked for a detailed description of the Pentagon position, I learned that it was something akin to a chief financial officer role, including managing the budget process. I concluded that the job basically would be to tell generals “no.” Because it seemed that a 38-year-old female investment banker with no military experience or training could easily get herself in hot water, I declined the position.

At the time, I could not exactly explain why I felt it was a dangerous position for an outsider. However, it turned out to be a good call. A year later, I ended up at the Department of Housing and Urban Development (HUD). There, I was instrumental in significantly upgrading their payment, information, and accounting systems, which is why I know that every excuse HUD has ever given regarding the $1 trillion documented as missing from HUD and their failure to produce audited financial statements in any year since 1998 is utter rubbish. Although I never worked at DOD, after more than 25 years of observing the same or worse patterns at DOD as at HUD, I am confident that DOD’s excuses regarding its refusal to respect or obey the financial management laws and regulations are entirely fictional as well, drawing on long-standing cover stories claiming that the problems are due to “complexity,” “incompetence,” and “antiquated systems” that do not talk to each other.

DOD: Missing $20 Trillion

Fiscal 1998 was when vast amounts of money started to go missing from DOD and HUD, with those two agencies consistently refusing to produce audited financial statements as required by law.

Secret money was not a new phenomenon in the U.S., however. Subsequent to the passage of the National Security Act in 1947 and the CIA Act in 1949, the growth of secret money at DOD and Treasury was noteworthy. For those interested in this history, see Dr. Joseph Farrell’s presentations on the hidden system of finance (“Bullion, Brains, Bonds,” “UFOs, the Tower of Babel Moment and Space Collateralization,” “Cosmic War, Cosmic Versailles,” and “Cosmic Versailles, Cosmic Tribute, and Cosmic War“) at the 20146,7 and 20158,9 Secret Space Program conferences, as well as my presentation on the black budget at the 2014 conference.10 An executive order during the Reagan Administration turbocharged this growth,11 permitting private corporations to undertake highly classified work as contractors; this created a gushing spigot of secret money contributing to stock market profit.

The problem is now much worse as a result of additional national security secrecy in federal accounting, appropriations, contracting, and related bond and stock disclosures governed by the Securities and Exchange Commission (SEC). This includes the adoption of classification rules,12 Director of National Intelligence waivers of SEC disclosure for banks and corporations doing business with the U.S. federal government,13,14 and the 2018 implementation of Federal Accounting Standards Advisory Board Statement 5615 (described later in this article). For a full discussion, see the Legal Series on U.S. Monetary and Fiscal Operations and the “Caveat Emptor” article16 at Solari’s Missing Money website.17

The gusher of “undocumentable adjustments” and refusal to publish financial audits or to track down enormous and inexplicable discrepancies in the DOD and HUD financial records that began in fiscal 1998 were significant. They followed the process of globalization begun with the creation of the World Trade Organization (WTO) in 1995 and the push to build a “unipolar” empire. Sir James Goldsmith described it beautifully in 1994 when he tried to stop the U.S. Congress from approving the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) that launched the WTO.18

Charlie Rose: Sir James Goldsmith Interview - 15.11.94
Charlie Rose: Sir James Goldsmith Interview - 15.11.94

According to agency financials, between fiscal 1998 and 2000, approximately $4.3 trillion went missing from DOD and HUD. These balances would have been managed and transacted with the help of payment and IT contractors at DOD and HUD and the U.S. Treasury and its depository, the Federal Reserve Bank of New York. The New York Fed is owned by its members, who typically provide many of the functions of the depository as agents for the New York Fed.

In the early years, there was a significant effort by reporter Kelly Patricia O’Meara and Insight Magazine to cover the missing money story. You can find all of these articles and historical coverage at the Solari Missing Money website (under “News Coverage”).17 In fall 2001, I was helping Kelly produce a large cover story on the missing money, with charts and graphs demonstrating the cost to taxpayers by state, which Insight had scheduled to publish on September 15. It would have been distributed to all Congressional offices the following week. However, the course of subsequent events resulted in the story being delayed for weeks and then ultimately ignored after DOD received a sudden and enormous increase in appropriations.

On September 10, 2001, Defense Secretary Donald Rumsfeld announced that DOD was missing $2.3 trillion.19,20 This announcement was quickly buried by the events of the following day, September 11, when numerous offices filled with records and documents related to the accounting for DOD’s money and related Treasury and other securities were blown up in New York and Washington. This included offices of the Office of Naval Intelligence at the Pentagon, said to be investigating the trillions missing from DOD. Subsequently, the Army—led by a former Enron executive—claimed that as a result of records lost on September 11, it could not produce an audit, even though my understanding was that their accounting operations were run from Ohio.

McKinney Grills Rumsfeld
McKinney Grills Rumsfeld

The relationship between the missing money and the blowing up of financial records was so significant that James Corbett produced a marvelous video on the topic called 9/11 Trillions: Follow the Money.21

The Department of Defense never explained why the U.S. Air Force ignored standing protocols regarding planes going off-course and effectively “stood down” three or four times on September 11, 2001. What we do know is that the result was not only the passage of the Patriot Act—with few in Congress having had time to read it—but also promotions all around, a $48 billion increase in appropriations for DOD in the first year, and explosive growth in the size and funding of the national security state as the U.S. military expanded both its domestic and foreign operations and wars.

The Plan -- according to U.S. General Wesley Clark (Ret.)
The Plan -- according to U.S. General Wesley Clark (Ret.)

By fiscal 2015, the undocumentable adjustments at DOD totaled $20 trillion. The undocumentable adjustments at HUD, including the Federal Housing Administration (FHA) and Ginnie Mae with significant credit and responsibilities in the U.S. mortgage market, totaled almost $1 trillion.

The $20 trillion calculation of money missing from DOD from fiscal 1998 to 2015 resulted from a survey by Dr. Mark Skidmore and his graduate students in 2017. Dr. Skidmore is Professor of Economics and Agricultural, Food, and Resource Economics at Michigan State University, where he holds the Morris Chair in State and Local Government Finance and Policy. When we published this survey, the total outstanding Treasury debt of the U.S. government was $21 trillion. So, grossly oversimplified, the U.S. government had borrowed $21 trillion, and then something like that amount of money disappeared out the back door of DOD’s and HUD’s—or Treasury’s—bank accounts.

In theory, this makes DOD and the U.S. government’s bank depository—the New York Fed and the private banks that own it and implement many of its operations—the largest money laundering institutional team in the history of the world.

Note that the New York Fed became a shareholder of the Bank for International Settlements (BIS) in October 1994. The BIS is based in Basel, Switzerland and is the central bank of central banks, having 63 of the largest central banks in the world as its members. The BIS enjoys sovereign immunity and can hold assets without disclosure on its balance sheet. What role the BIS may have played in helping to facilitate New York Fed depository transactions, including those that resulted in the $21 trillion in undocumentable adjustments, is an important unanswered question.

Again, Solari’s Missing Money website provides extensive documentation and analysis of the $21 trillion of undocumentable adjustments at DOD and HUD, as well as information about the laws and regulations related to federal financial management, Dr. Skidmore’s report and subsequent updates, and much more.17

Determining where this money went, holding parties responsible under the law, and achieving an offsetting return of assets is at the heart of any meaningful reform.

The Role of Defense Contractors

The U.S. government is not run by political appointees and the civil service; it is run by private corporate contractors and banks.24 The largest defense contractors also hold significant contracts at non-military agencies, allowing for significant integration with the military across government.

The top contractor at DOD is Lockheed Martin. During the period from 1998–2015, as $21 trillion went missing, Lockheed was the lead information and payment systems contractor at DOD, as it certainly was at HUD. Lockheed spun a government IT division out to Leidos after the 2015 fiscal year in which the Army enjoyed $6.5 trillion of undocumentable adjustments.

When I was Assistant Secretary at HUD, and subsequently when my company was lead financial advisor at HUD, my staff would sometimes end up having wars with Lockheed Martin trying to get the accounting data we needed to do legally or contractually required tasks. I came to describe the data operations that Lockheed and its national security state colleagues were running as the “databeast.”

DOD, through its Defense Contract Management Agency (DCMA)—and, until 2016, the Defense Contract Audit Agency (DCAA)—plays a significant role in reviewing, approving, auditing, and disqualifying contractors across DOD and many federal agencies. To give a sense of the scope of the work, Wikipedia reports:

“As of 14 January 2019, DCMA had 11,641 civilians and 552 military assigned. Number of contractors and number of active contracts remained roughly constant. Total contracts serviced were valued at $5.2 trillion and authorized contractor payments per day was valued at $678 million.”25

The Big Tech firms and their hardware and software infrastructure and products are now also integrated into these contracting arrangements. For example, Amazon runs the cloud contract for the CIA, which provides an integrated cloud for all 17 intelligence agencies.26 Amazon, Microsoft, Oracle, Google, and Leidos (which includes the former Lockheed division) share responsibility for the big DOD and Navy cloud contracts.27

Investigative reporter Whitney Webb has written extensively on the integration of Silicon Valley and the national security state as well as on contracting aspects of Operation Warp Speed. For those interested in exploring this topic further, we strongly recommend her website, Unlimited Hangout.28

Privatization through U.S. federal government contracting has put many operations beyond the governance or control of the government itself. I once bet a retired top HUD civil servant that he would not be able to find a single government employee at HUD who understood how the budget or any of the finances worked. Our bet was for a dinner at Red Lobster in Jackson, Tennessee. Sure enough, that is where he took me after he had spent a year looking high and low throughout HUD in Washington and throughout the field system and was unable to find an employee who understood how the money worked. The operations were now entirely in the hands of corporate contractors and private banks. This also has put government operations beyond the reach of serious researchers, scholars, reporters, or citizens, as more and more information has become inaccessible through requests under the Freedom of Information Act (FOIA).

Between a handful of defense contractors, Big Tech firms, and New York Fed member banks, the U.S. government can be quickly and radically reengineered, especially in an all-digital financial system. Calls to reform government by getting rid of the civil service would make a radical reengineering that much easier to accomplish. This likely would mean moving governance of the U.S. under the jurisdiction of international organizations such as the International Monetary Fund (IMF), the United Nations (UN) and its various agencies, and the BIS, who would be free to use AI, financial surveillance and control, and robotics without any legal obligation to the U.S. Constitution; instead, these entities would enjoy the protection of sovereign immunity.

For those who wish to preserve U.S. sovereignty, the intelligent response to the corruption of the civil service is to reform the civil service and remove private parties from control positions that compromise the government’s informational, financial, and operational sovereignty. Please beware the destruction of sovereignty that is being engineered by a privatized corporate and banking infrastructure operating in secret that can accelerate dramatically if we move to an all-digital financial system.

My Lunch Invitation from the U.S. Navy

My efforts to stop mortgage fraud as both Assistant Secretary of Housing and then as lead financial advisor to the FHA resulted in my getting fired in 1990 and my company being fired in 1997. After my company was fired as financial advisor in 1997 without advance notice (a rare event in government), and just as vast amounts of money started to disappear from DOD and HUD (much easier to do after they booted out the lead financial advisor and reversed the mechanisms we designed and helped put in place to stop money moving out of the back door of HUD), I was immediately approached by a small Washington think tank that did strategic planning for the U.S. Navy. In the process, an effort was made to persuade me that aliens exist and live among us. Among other things, I was offered the opportunity to have lunch with several aliens. For those interested in the details, I told the story during the closing panel at the 2015 Secret Space Program Conference.29

Declining to have lunch with aliens, I asked for and received a long list of the best books on the UFO and alien topic and proceeded to read approximately 25 of them. Since that time, I have occasionally watched various efforts to bring transparency to the UFO question as well as to related advanced technology, breakthrough energy, and invisible weaponry controlled by private corporations that play essential roles in the national security state.

Some of these efforts include something like the following spin: “We need all of these trillions of dollars that are going missing at the Department of Defense to deal with this phenomenon. It is so scary and dark that you do not want to know. Just trust us with the money.” In their defense, I remember watching the documentary The Phoenix Lights when it was first released. It showed footage of a large UFO that slowly flew through Phoenix to the edge of Tucson in March 1997. In the middle of searching for what was then $4 trillion missing from DOD, my first response was, “I’ll bet Lockheed Martin would build that for $4 trillion.”

Ben Rich (the retired CEO of Lockheed’s “Skunk Works” group) famously said in 1993, “We now have the technology to take ET home.” I came upon this quote, referencing the development of black budget technologies and invisible weaponry, when as an investment advisor I experienced insider trading a week before the Indonesia tsunami and started to research invisible weaponry. I became convinced that such weaponry was playing a significant role in the dominance of the U.S. dollar as reserve currency.

Indeed, in April 1997, U.S. Secretary of Defense William S. Cohen spoke about such weaponry at the Conference on Terrorism, Weapons of Mass Destruction, and U.S. Strategy at the University of Georgia. The event was part of the Sam Nunn Policy Forum being hosted by the university. Secretary Cohen was joined by Senator Sam Nunn and Senator Richard G. Lugar. Cohen said: “Others are engaging even in an eco-type of terrorism whereby they can alter the climate, set off earthquakes, volcanoes remotely through the use of electromagnetic waves.” He added: “It’s real, and that’s the reason why we have to intensify our efforts.”30 If the Defense Secretary says that the earth and the sky have been turned into weapons and are being used as such in the present, we should take this statement very seriously.

Federal Accounting Standards Advisory Board Statement 56

The DOD’s refusal, for 25-plus years, to produce audited financial statements and its increasing inability to account for $20 trillion of undocumentable adjustments resulted, in 2018, in a new administrative policy promulgated with the approval of a bipartisan Congress and the Trump White House: Federal Accounting Standards Advisory Board Statement 56 (FASAB 56).15 This policy purports to authorize DOD and the other agencies of the U.S. government as well as scores of related federal governmental entities to keep what amount to secret books,31 in essence overriding the Constitution and financial management laws and regulations with an administrative policy.

In combination with other classification and national security laws, and national security waivers of SEC regulations applicable to public financial statementsof private enterprises doing business with the government, the result is that the large banks and corporate contractors that do business with the federal government can also keep secret books.

The implications of this policy to the U.S. and global securities markets are profound, essentially rendering a significant portion of the disclosure in the U.S. securities markets meaningless.

I would encourage you to educate yourself about this policy. It is highly likely that the success of Operation Warp Speed and the Covid operation depended upon the adoption of FASAB 56 in October 2018.

Underground Bases and Secrecy

I am often asked how so many secret operations can go on without being noticed. One reason is because so many military and intelligence bases are in restricted areas and underground. In 2010, the Washington Post published an excellent report on this topic, “Top Secret America,” giving an overview of the exploding number of classified military and intelligence facilities built after 9/11 and the passage of the USA Patriot Act.32

Because of the many rumors about classified underground bases, I once spent several hours a week for two years working with another researcher to estimate how many underground and undersea bases existed in North America—both publicly acknowledged as well as classified or secret. We collected all known reports, rumors, and documentation on underground bases and then analyzed military and federal installations and spending for all U.S. states. Our final guess was that the U.S. military-intelligence establishment and related corporate contractors had built 170 such bases as well as connecting underground transportation systems.

Building an underground base is very expensive. Building and maintaining it on a secret basis is many multiples more expensive than that—which is why underground bases are one of my votes for where a portion of the $21 trillion that disappeared by 2015 was reinvested. (No doubt, more trillions have disappeared since 2015, but who’s counting, given that the books are now secret?)

Former Department of Justice (DOJ) attorney Amy Benjamin brilliantly explained how such extraordinary secrecy is engineered in her landmark analysis titled “The Many Faces of Secrecy,” published in the William & Mary Policy Review in October 2017.33 I was put onto her paper by Colonel Lawrence Wilkerson, who teaches at William & Mary and read it in the peer-review process. Because I was headed to New Zealand where Amy was teaching, I was able to meet her for an interview on the Solari Report.34 I highly recommend this one to you—it is a subscriber favorite.

Global Spraying and High-Tech Fires: Who Controls U.S. Air Space?

Since 1998, it has been my habit to travel extensively around the United States, mostly by car. One of the first things I noted in 1998 was extensive aerial spraying. I could drive for many hours down a highway in the heartland and watch multiple planes flying back and forth across the sky, laying down large spreading plumes of chemicals. One of the first things that struck me about this phenomenon was how expensive it must have been. Multiple planes and pilots spraying chemicals are not cheap, especially given that fleets of planes were spraying almost everywhere I went, including in all U.S. states, most countries in Europe, and Australia and New Zealand.

I will never forget taking off from Zurich in the early morning in 2010 and breaking through the cloud cover to see a thick layer of crisscrossed plumes being sprayed by planes that were not visible from the ground. The Swiss are some of the most environmentally conscious people in the world, and yet here were chemicals being sprayed above Switzerland.

So, trillions were going missing from DOD while a spraying program that cost hundreds of billions—if not trillions—of dollars was happening. Indeed, around the same time one Dutch auditor reported hundreds of billions going missing from NATO, along with systemic secrecy and lack of accountability.35 Is there a connection between expensive geoengineering and money going missing? It seems highly likely.

U.S. air space is subject to regulations set by the Federal Aviation Administration (FAA), the Department of Homeland Security (DHS), and DOD. While the FAA is responsible for administering civil aviation, clearly, DOD and the Air Force dominate as a result of their responsibilities for national security. No one can spray chemicals above our heads for decades unless DOD does it, and/or unless DOD and the FAA permit it.

Here is a factoid: When I checked the FAA contractors at the time of 9/11, interestingly enough, Lockheed Martin was the lead contractor at FAA in addition to serving as lead contractor at DOD and HUD.

As the spraying intensified, we witnessed an explosion of cellular technology, High-frequency Active Auroral Research Program (HAARP) technology, and EMF radiation. Numerous citizen scientists and engineers have tried to understand what is in the spray, including heavy metals and bioengineered particles, and if and how they relate to wireless technology. In particular, see the work of the research trio of Lissa Johnson, Daniel Broudy, and David A. Hughes,36,37 as well as that of Clifford Carnicom.38 In his most recent interview on the Solari Report which we will publish in early July 2024, Clifford describes the similarities of the synthetic bioengineered particles in the spray to those in the Covid injections. If that is correct, then DOD is in charge of installing the same high-tech, bioengineered components in our bodies—whether by spraying them in air space dominated by DOD or through DOD’s leadership of Operation Warp Speed—without our knowledge or consent.

What I can tell you from simply driving thousands of miles around America is that the more the spray cascaded down from the sky, the more sickly and exhausted the people, livestock, soil, plants, and trees looked. We were all being poisoned.

No doubt, an additional factor contributing to the general deterioration in health was the debasement of the food supply—but that is under the jurisdiction of the U.S. Department of Agriculture.

As a sign of the times, homeowners began needing to regularly clean off the layers of black soot that quickly overtook our homes if we did not practice regular, aggressive cleaning methods. I bought a pressure washer. The question I had to ask myself as the grime was cleaned off my house was, “What do we do for our lungs and our blood?”

This issue of who and what controls U.S. air space keeps coming up—and not just because more people are questioning the spraying or because some states are starting to pass laws to try to curtail “geoengineering.” The growth of sporadic and highly unnatural high-tech fires is also raising questions. This includes the fires in northern California in 2017, including the one that destroyed most of Paradise, and the recent fire in Lahaina on Maui in Hawaii. These fires involved highly sophisticated engineering. Yet again, it is difficult to create a hypothesis of what happened other than that DOD and/or its contractors did it or allowed it to happen.

Global spraying and high-tech fires—and what they suggest about the technology at play in our environment—have profound implications for what the term “national security’ has come to mean.

Narcotics Trafficking

I spent several years in the 1990s researching the growth of narcotics trafficking in the United States after the creation of the Federal Reserve in 1913, and particularly after its explosive post-WWII growth. I describe my findings in more detail in my online book, Dillon Read & Co. Inc. & the Aristocracy of Stock Profits,39 which includes a description (along with supporting documentation) of the highly informative European Union lawsuit against tobacco giant RJR Nabisco for money laundering with various global mafias.

I became convinced that opening U.S. markets to narcotics trafficking from Europe, Asia, and Latin America was part of an intentional strategy to finance secret black-budget military and intelligence operations as well as to help provide low-cost capital to fund the rise of American multinational corporations.

For most of my life, this narcotics trafficking was blamed on African-American teenagers and various mafiosi. At the same time, the American taxpayer was funding a $500 billion to $1 trillion annual budget for the Department of Defense to govern and defend our air space and borders. Despite having the most powerful and expensive surveillance operations in the world, DOD apparently could not stop thousands of boatloads and truckloads of illegal drugs from crossing our borders every year and being marketed into our cities and towns where they poisoned our children.

Both DOD and DHS currently control the borders and shores, and DOD did so prior to 2003 before the creation of DHS. Yes, the job is made easier by friendly neighbors to the North and South and two large oceans to the East and West. However, in any meaningful quantity, what and who come across those borders and shores into the country is what the U.S. government and military permit. They have the authority and resources to stop it.

DHS now includes the Cybersecurity and Infrastructure Security Agency (CISA),40 which has taken the position in a recent court filing for Missouri v. Biden that it has jurisdiction over citizens’ minds because what citizens think is a national security issue.41

Mortgage fraud has long been a vehicle to launder illegal narcotics profits. A very high percentage of mortgages in the United States are insured and regulated directly or indirectly by the U.S. government, through such agencies as the FHA and Ginnie Mae at HUD, the mortgage programs at the Veterans Administration and USDA, Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System.

When I worked at HUD, the relationship with DOD was always close. I came to believe that this was likely because of the use of mortgages to launder money used for black projects. I know some closeness came from sharing the same lead contractors to run IT and payment systems. The same contractors were also believed to play a significant role in DOD black projects and weaponry.

During the mortgage “crisis” of 2006–2012, the total U.S. taxpayer bailouts were calculated at over $23 trillion, according to Neil Barofsky, Special Inspector General to the TARP Program at the U.S. Department of Treasury. I discuss Barofsky’s 2013 book, Bailout: How Washington Abandoned Main Street While Rescuing Wall Street, in a book review at the Solari Report.42

In that review, I quote Barofsky as saying:

“I really didn’t believe the figure [of total commitments made during the financial crisis] until I saw the backup documents that had been provided by each of the agencies themselves. This total commitment was almost double the entire economic output of the United States. If there were ever a single number that demonstrated the panic felt by the regulators during the financial crisis, it was that $23.7 trillion.”

At the time, an estimated $8 trillion would have paid off all of the single-family residential mortgages in the country. This will give you a sense of the extent of the mortgage fraud.

In 2000, as money was going missing from HUD and DOD and mortgage fraud was growing explosively, I met with the chief of staff to the senator who oversaw HUD appropriations. She asked me what I thought was going on at HUD, then run by Secretary Andrew Cuomo (who, as New York governor, was so instrumental in reducing New York State to barbarism during the Covid-19 operation). I said, “What do you think is going on at HUD?” to which she replied, “HUD is being run as a criminal enterprise.”

HUD and its various mortgage programs are run on a matrix infrastructure, which means that to run them as a criminal enterprise requires the cooperation of the Treasury Department, the New York Fed and its member banks which are its owners (including JPMorgan Chase and Citibank), the DOJ, and, yes, DOD. Please let that sink in. Only then can you understand the depth and breadth of the criminality involved, as well as the intimacy of DOD’s cooperation with the Treasury, the Federal Reserve, private IT contractors, and the Big Tech companies that build and run the digital data and telecommunications “databeast” that serves them.

When I studied the rise of U.S. narcotics trafficking, I discovered that running illegal operations was one of the reasons for having layers of private contractors. The crack cocaine epidemic in the 1980s exploded after DOJ reached an agreement with the CIA to limit its drug trafficking enforcement to case officers. This left the private contractors free to rock and roll (see footnote 23).43,44 My favorite example was when Congressman Cynthia McKinney20 referred to the State Department protection afforded to a contractor indicted on sex slavery charges.45 After Insight ran a cover story describing the contractor’s sex slave trafficking and related indictment and conviction, the U.S. Navy issued them a large new contract. DOJ, the SEC, DOD, and the State Department also maintained them as a contractor in good standing.

Running global organized crime is big business—and ultimately, that business is owned and controlled by the people who control the sea lanes, the satellite lanes, and the financial transaction system. As a retired DEA agent said in the late 1990s to a Washington reporter who I was helping with research on narcotics trafficking, “Let’s face it, honey. All the wire transfers batch and run through the New York Fed. They know where every penny is.”

Pension and Retirement Funds

Where does all the money come from to fund DOD’s operations? First, we as taxpayers fund a portion of federal operations with our taxes. Under the law, that should give us the right to see public disclosure of how our money was spent, but clearly, the U.S. government and military are ignoring such Constitutional and legislative requirements. Because Congress nevertheless continues to appropriate funds, they are ignoring the laws as well.

Additional sources of DOD funding come from borrowing. The primary source is from the sale of U.S. Treasury bills and bonds to U.S. and global investors. Traditionally and increasingly, the largest buyers are U.S. pension funds—including corporate, union, and state and local pension funds—as well as retirement accounts, such as IRAs and 401(k)s. Banks and insurance companies are also large buyers through their investment portfolios. This means that not only is my pension fund dependent on the credit quality and value of Treasury securities, but so is the creditworthiness of my bank deposits and insurance policies.

One of the reasons the outstanding debt of the U.S. government is so large is because we have a debt-based currency. The U.S. could simply have issued greenbacks from the Treasury, but it has used a central bank and a debt issuance process instead.

Here is how the process works. The U.S. government issues $21 trillion of debt (as of the time when Dr. Skidmore published his missing money survey) and $21 trillion-plus goes missing (whether the assets disappear or are stolen or undocumentable transactions are made and implemented by the New York Fed and its member banks). Now my pension fund holds a Treasury bond sold through the primary dealers who are the trading counterparties of the New York Fed.46 The assets that the bond funded are presumably gone—into private ownership or someplace else—and my bond is simply an IOU from the taxpayer, who is me. So, I have traded an asset—my retirement savings—for a liability from myself!

Again, the implications for investors are profound. Solari’s general counsel Carolyn Betts and I addressed them in the “Caveat Emptor” article that we published after the promulgation of FASAB 56.16

One of the reasons that the Solari team and I worked hard over many years to highlight the issue of the money going missing from the U.S. government was that we understood that this was essentially a theft of resources from U.S. pension and retirement savings. If the theft were not stopped, the only solutions would be to extend the retirement age, lower benefits through inflation or benefit cuts, and/or lower life expectancy.

Because the government took numerous actions that began to lower life expectancy starting around the time the financial coup began, I am convinced that lowering U.S. life expectancy is an intentional policy. It seems appropriate that the very same agency that is missing $20 trillion of taxpayer money would be the agency to lead Operation Warp Speed, an exercise that has significantly and intentionally increased excess mortality and done so in a way that extends the solvency of the Social Security system.

Grossly oversimplified, if you rob a bank, it is easier to keep the money if the depositors are dependent, weak, or dead—in other words, before they realize their money is gone and can demand it back.

This is hard for many Americans to fathom because we have grown up and lived in a world in which the spending power of the American consumer was what generated economic prosperity for the leadership. However, globalization, technology, and our investments in space have all created new economic models. As Larry Fink, the head of BlackRock (the largest asset manager in the world) recently explained, we now have new models for growing economies in countries with shrinking populations.48 Fink commented, “I could argue in the developed countries the big winners are countries that have shrinking populations.”

The latest statistics on U.S. life expectancy and birth rates underscore Fink’s confidence in the coming opportunities afforded by AI, robotics, and a shrinking population.

Credit: Visual Capitalist (48)

The Great Poisoning vs. a Land Army

One of the baffling questions before us is this: How is the U.S. going to field an effective army and navy if the population that supplies soldiers is shrinking and poisoned? Between the deterioration in the quality of food, the impact of extensive screen time and related mind control, and heavy vaccination schedules, the pool of young people interested in or capable of becoming soldiers has shrunk considerably.

During the Covid operation, DOD mandates pushed out or poisoned a significant number of military personnel. You can also go back and look at what happened at DOD with the Anthrax Vaccine Immunization Program starting in 1997.

Now, faced with plans to increase U.S. military troops in Europe, who will the U.S. military recruit to provide for a land army? One possibility is immigrants. A significant number of young men are coming across the border to the United States, and additional legislation is pending to give them a pathway to citizenship through military service.49 Soldiers terminated for refusing to take the Covid injections are being invited back into the service. In addition, the House of Representatives just passed a defense bill that included a provision that would automatically enroll men between the ages of 18 and 26 in the Selective Service database.50 Some representatives are trying to expand the enrollment to women. In short, a military draft is coming.

First, they take your money—$21 trillion translates to $65,000 for every citizen. Then, they poison you. Nearly one out of five knows someone killed by the Covid injections, so this is bound to touch you. Next, they take your kids. How many of your children or grandchildren are between the ages of 16 and 28? How do you feel about them risking their lives to serve the quest for global empire, missing money, pension fraud, taxation without representation, and total technocratic control?

Next Steps for NATO

There is much chatter these days about the possibility of a World War III. Russia is sending nuclear subs to Cuba, and the United States is proposing to send more troops to Europe to protect NATO members.

I just reviewed the new U.S.-Swedish agreement for military cooperation that is before the Swedish parliament for final approval. It gives U.S. troops access to 17 military bases in Sweden—and they will operate under U.S. law. In theory, this means that those troops can be used to enforce against or control the Swedish people. One must ask whether this is to protect Sweden from the Russians or to protect the U.S. dollar system by cannibalizing Sweden and the companies and economies of NATO members.

No doubt, the push for regime change and implosion in Russia is still on. However, because it has not gone as planned, it would seem that more subsidy will have to be extracted in the G7 nations to make up for it. If you look at the occupying army that the U.S. has stationed in Europe and Japan since the end of WWII, it becomes clear that extracting subsidies for the empire from the G7 nations is far from a new development.

The implications of a potential draft for young people in the United States and throughout the European Union are sobering, particularly if the goal is to protect oligarchs’ lives and wealth from the legitimate assertion of rights from domestic populations. Given how many Americans have been poisoned and bankrupted by DOD operations to date, if I were of draft age, I would not be eager to serve the U.S. military. Who wants to finish boot camp only to find themselves in operations to poison their family and launder money out of their relatives’ pension and retirement funds?

But this is dangerous business. The leadership of the United States and NATO have put themselves in quite a pickle, and things could get very serious. The Eastern European leaders, such as most recently the President of Serbia,51 have been telling us about it as they refuse to support the drive for war.

The Solari Papers #3
The Solari Papers #3

Take Action: What Can We Do?

There are many things we can do to protect ourselves and our families, particularly given that our taxes and pension funds are financing these operations.52 We have the power to change this. There are extensive presentations, documents, and lists at on reversing central financial and food control as well as at Sasha Latypova’s and Katherine Watt’s Substacks (Due Diligence and Art and Bailiwick News, respectively).

The first and most important thing we each need to do is not fall for the lies. As an investment advisor for many years, I calculated the price paid by a family for one lie related to their health care or financial management. Let’s take the Operation Warp Speed lie that insisted that the Covid injections were “safe and effective.” For many families, this lie has cost them a loved one’s life or health, and/or drained their financial health and future.

Not falling for lies includes not falling for fake solutions. Fake solutions include the hope that our problems can be solved by a presidential candidate. Proposals to shut down existing institutions such as the Federal Reserve before we get our stolen money and assets returned (and in a manner that facilitates power being transferred to international organizations that enjoy sovereign immunity and operate above the law) are another category of fake solution. Other fake answers include the call to pass new laws or hold a Constitutional Convention in which the Constitution can be hopelessly altered.

Solutions require, first and foremost, that we enforce the good laws we already have—and this starts with holding DOD, HUD, Treasury and its banking depository, the New York Fed, responsible to obey financial management laws both currently and retroactively. Let’s get the $21-plus trillion back.

Reversing the Going Direct Reset requires understanding what is happening in the financial system, and how it relates to what is happening at DOD. We need to understand DOD’s goals—which means both its money laundering operation and Operation Warp Speed. We also need to understand how DOD’s operations thread through our local economies and lives and the power of its political “leashes,” including in our personal and professional lives.

At the same time, before we propose changes to DOD and U.S. military operations, we need to understand the real phenomena that DOD may be dealing with and the existence of a secret, independent financial system that has grown up under the guise of a national security state. Before we judge DOD, we need to put ourselves in their shoes and try to see the world from their point of view.

Fundamentally, though, we need to understand that we are staring down the barrel of a coup d’état, mass atrocity, and a serious escalation of global military operations. Someone is trying to kill us, and DOD works for them, not for us. So, we should think twice before we encourage our children and grandchildren to enlist. We should also think twice about a U.S. military that consists of a significant number of immigrants. Or about going to war with a military that is not prepared to win.

It is a lot to think about. I hope these musings inspire you to do so. In closing, I once again would like to thank Sasha and Katherine for their extraordinary contributions in helping us map this terrain. They are proof positive that one person can make an enormous difference.

You can, too.


  1. Nearly 1-in-5 say someone they know died from COVID-19 vaccine. Rasmussen Reports, May 24, 2024.
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  18. Sir James Goldsmith’s 1994 Globalization Warning. The Solari Report, February 1, 2010.
  19. McKinney grills Rumsfeld.
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  23. The plan—according to U.S. General Wesley Clark (Ret.).
  24. Top 100 Defense Companies: Top 100 for 2023. Defense News, n.d.
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  27. Tara Copp and Matt O’Brien. Pentagon splits $9 billion cloud contract among 4 companies. AP, December 7, 2022.
  29. Blast from the Past: Week of July 3, 2023: Invitation to Lunch with Aliens. Secret Space Program Conference 2015, closing panel (timestamp 1:48:50).
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  33. Amy Benjamin. The many faces of secrecy. William & Mary Policy Review. 2017;8(2).
  34. Catherine Austin Fitts. The Many Faces of Secrecy with Amy Benjamin. The Solari Report, May 26, 2018.
  35. National auditor criticises NATO for lack of accountability. Dutch News, June 10, 2014.
  36. Lissa Johnson, Daniel Broudy, and David A. Hughes. WHO’s pulling the strings? Covid injections and the Internet of bio-nano things, part 4: testing new human nodes of connectivity. Propaganda in Focus, May 24, 2024.
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  41. Federal court grants injunction against CISA in historic censorship case expected to head to Supreme Court (press release). Children’s Health Defense, October 10, 2023.
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  44. See footnote 23 at
  48. Marcus Lu. Charted: Declining birth rates in the most populous countries (1950–today). Visual Capitalist, June 3, 2024.
  49. Cory Smith. Bill offers faster path to American citizenship for migrants who enlist in military. ABC, February 9, 2024.
  50. Leo Shane III and Bryant Harris. Lawmakers move to automate Selective Service registration for all men. Defense News, May 22, 2024.
  52. Catherine Austin Fitts and Carolyn A. Betts. Taxation With or Without Representation? Who will take actions and what actions can they take? The Solari Report, Vol. 2021, No. 4.