Introduction to Omniwar: The U.S. Misallocation of Capital

By Catherine Austin Fitts

“Capital as such is not evil; it is its wrong use that is evil. Capital in some form or other will always be needed.” ~Mahatma Gandhi

We are all investors.

We invest our time. We invest our attention. We grow careers. We build enterprises. We save. We buy homes and real estate. We buy and sell stocks and bonds. We add payroll deductions to retirement accounts and pensions. We purchase gold and silver. We use currency. We donate and tithe our money and volunteer our time. We patronize banks and businesses. When you think about it, our daily lives are a continuous flow of investment choices.

The Community Investment Opportunity

When I first discovered the Internet, I was inspired by its investment possibilities. I saw the potential to dramatically expand our powers to invest together to create a more prosperous and peaceful world. I started an investment bank in Washington. We built a successful advisory business helping the Federal Housing Administration at the Department of Housing and Urban Development (HUD) as their lead financial advisor. We reinvested all of our profits in software tools and databases that could accelerate investment in communities and improve the circulation of financial capital and new technology to small businesses and farms. The potential for building new alignments between living systems and financial markets within a place felt electric.

This push started in 1994. We worked on a concept called JIT$ (Just in Time Money), an early crypto that showed up when you needed it. Then there was Community Wizard—a software tool and suite of databases that used GIS software to map out how federal taxes, spending, and credit flowed in a given local area. Our premise was that if busy people could “see” the money around them, they could begin to understand the financial incentives operating in their community and take action to change them in a more prosperous direction.

If you were a shareholder, one of our software tools could take a list of your Fortune 1000 stocks and access data on how many employees each company had and print out a map of where the employees were located in the world. It could also calculate the percentage of the company you owned and show that percentage of employees. The goal was to connect shareholders with the people and places where the companies in which they had an ownership interest did business.

Another tool would allow a residential user to input their data, click a series of choices with radio dots, and print out a design and business plan for a learning center for their apartment building or neighborhood. We got that one built after we persuaded the federal government to allow landlords to fund learning centers with their existing flow of federal rental subsidies. Managing an explosion of data ourselves, we started a company to build data servicing businesses in residential neighborhoods to create jobs for caregivers of young children or elderly parents; they could quickly learn how to manage complex software and data while remaining near their family members.

We also started working on another tool called “Community IPO in a Box”—a software package intended to make it easy for a community venture pool to sell stock to community members for reinvestment in local businesses. We were working with A/B share models pioneered by Dillon Read, the Wall Street firm where I had served as managing director and member of the board of directors. Our research showed that there was strong demand from investors for opportunities to invest locally, particularly if the investments were liquid and eligible for investment in their retirement accounts. Most popular were investments that attracted young people to stay and build enterprises on Main Street.

The Misallocation of Capital

We had just made our first investment in a local neighborhood stock corporation when an onslaught of politically motivated audits and investigations slowed us down and then stopped us in 1997. A financial coup had begun, and trillions of dollars began moving out of the country for global investment and management in offshore havens. Because I and my company were working to prevent the predatory lending, criminality, and fraud increasingly underway in the U.S. mortgage markets, we had to go. As soon as we were fired, billions started to go missing at HUD. The manner in which we were fired and targeted was designed to make an example of us and put fear into the civil service and contractors running the U.S. mortgage and credit programs that back the majority of the U.S. mortgage market.

One of the greatest periods of capital misallocation in the history of our world had just begun.

I spent the next decade in legal, financial, and even physical battles with the U.S. government and its proxies. It was a lesson in what happens when an entrepreneur sees an opportunity but does not appreciate all the risks. Having come from Wall Street and the world of central bankers, and having been encouraged to do what I was doing, I naively believed I was not at risk of having my assets stolen and my life threatened. Hoping not to make that mistake twice, I made it my business during the long period of audits, investigations, and litigation to develop a vision that integrated opportunities and risks. Miraculously successful in the litigation, I proceeded to build new businesses to help people navigate their lives and investments accordingly.

The economic opportunity to build wealth in local communities by aligning environment with finance has continued to grow ever since 1997. Unfortunately, so have the mechanisms available to sabotage and prevent local wealth-building from happening; the players working to centralize power and control are using new technology, their ability to print money out of thin air, and old lies and dirty tricks to consolidate ownership and control of resources, pumping and dumping and plundering along the way.

As central control has grown, I and my team have continued to try many things. We continue to build a network of people who are difficult to bully or buy, and we have also developed a unique body of intelligence—including an encyclopedic knowledge of how control works.

Since 1997, we have continued to track the financial coup, and as of fiscal 2015, we had documented $21 trillion missing from the Department of Defense (DOD) and HUD. At that point, the Trump Administration took the U.S. finances dark with the adoption of Federal Accounting Standards Advisory Board Statement 56 (FASAB 56), an administrative policy that asserts that the U.S. government does not have to obey its financial laws and regulations. No effort has been made to reverse this policy in the second Trump Administration.

The Rise of Omniwar

The launch of the Going Direct Reset in 2019, including the Covid operation, forced many talented people to face the fact that we were dealing with a centralized criminal push to institute radical change in our governments and economies. One of the most capable was British scholar Dr. David A. Hughes, who was inspired to investigate what was happening and proceeded to publish two remarkable books: “Covid-19,” Psychological Operations, and the War for Technocracy, Volume 1 and Wall Street, the Nazis, and the Crimes of the Deep State.

David is one of the rare scholars who has both the inclination and ability to research and integrate across many different disciplines and sectors. When he joined me for an interview on the Solari Report, he described his concept of Omniwar—the weaponization of every system and aspect of our lives. Among other issues, he understood that trillions in secret money can finance sophisticated invisible weaponry, and he grasped why that was important. I was so impressed that I asked David to write the theme for the Solari Report on Omniwar. His understanding of how control works is invaluable for helping you manage the risks that we are now navigating.

My immediate response after reading David’s brilliant analysis was, “What’s the action?” In other words, given what I have learned, how do I manage the flow of my and Solari’s investments going forward? What do I recommend to our subscribers? Technological change is literally exploding within every aspect of our lives, and an entire segment of the corporate world—with access to the billions (if not trillions) that the bankers’ printing presses can create—is intent on building invasive control at the most intimate levels. The question is, where and how do we deploy our capital as we stand in this sea of misallocated capital?

Sending Things in a Productive Direction

In addition to the Solari Report, I manage a second company, Solari Investment Screens. We manage three screens for publicly traded stocks. The largest screen, Solari World, currently includes 800 stocks that have been put through a filter that screens for the quality of governance and management and productive activities. It goes without saying that the screen does not include companies with a criminal business model that are leading the effort to build the digital concentration camp.

Because they are publicly traded, the companies approved for Solari World Screen are almost always mature companies. They have been through the start-up phase, they have succeeded, they contribute to the business of the world, and typically they pay their shareholders dividends. In the world of investment, the majority are what is known as “value stocks.”

Solari Investment Screens is our action. It offers ourselves and others a way to invest with confidence in productive activities in the liquid part of the equity markets.

The next step, of course, is what to do about the illiquid part of the equity markets, specifically venture capital and private equity. Given the current rate of change, creative investment in new technology and new enterprises is essential for sending things in a productive direction. A major investment in venture is required—but we need to get it right. Of all the areas of investment, venture has the greatest high-risk/high-reward profile. This means that, as an economic matter, the political opposition to investing in enterprises that reduce tyranny—the centralizing headwinds that my investment bank encountered so dramatically in the 1990s—is likely to become unbearable. To overcome the risks that stopped our early venture efforts the last time around, we need to combine the energy of young entrepreneurs with seasoned veterans familiar with the deep state tactics of Omniwar.

In December 2024, Hua Bin published “Comparing China and US Critical Future Technology Development” in the Unz Review. One of his key points concerned the extent to which the U.S. is losing its leadership in science and technology, with Europe falling even further behind. He wrote:

“The Australia-based think tank ASPI recently published its 2024 Critical Technology Tracker, an annual analysis of leading scientific and research innovations in future critical technologies across the world.

The report tracks 64 technologies in 8 meta categories ranging from AI, space, defence, quantum, biotech, material science and telecommunications….

China currently leads in 57 of the 64 technologies in the 5 year period between 2019 and 2023. US leads in 7. There has been a stunning shift of research leadership over the past two decades from the US to China.

• China led 52 of the 64 technologies in the 5 year period between 2018 and 2022 in the 2023 report; it took the lead in 5 more technologies by 2024.

• US led in 60 of the 64 technologies between 2003 and 2007.

• China led in only 3 of the 64 technologies between 2003 and 2007.

The leadership competition for these critical technologies is basically between China and the US. Europe and rest of Asia (Korea, Japan, India, Singapore) play a secondary role. In most fields, the lead China and US have over the rest of the world is massive.”

In short, China’s success has demonstrated that the Western world has fallen behind, and our failure is accelerating.

Waste and Plunder

China’s success underscores the price of the West’s misallocation of capital. We are falling behind on what is important, and we are wasting time and talent.

The large-cap U.S. stock markets increasingly present a gruesome picture. Leadership in plunder capitalism and central control, richly subsidized by taxpayer dollars, does not translate into leadership in science and technology, let alone reinvestment in the things that can reverse ecological damage and advance human civilization. As China builds high-speed trains, both internally and across the Silk Road and Africa, that are collapsing transit times and reengineering trade routes, America is moving private equity into the health care industry to plunder and extract. The result is a U.S. health care system that spends double per capita of any other high-income country, yet produces much worse outcomes. The result is bankrupting the federal government and the citizenry.

Billions of dollars are flowing into Ponzi schemes and massive political donations designed to keep the general population—and now, governments—away from investments in real assets such as gold, land, and enterprises. The notion seems to be that no amount of money is too much to buy people out of their legal rights, off their land, and away from the practical application of new, powerful technology by small businesses and farms. Our digital space is currently overwhelmed with shiny toys, Bitcoin billionaire bailouts, financial frauds, and related addictions designed to distract both attention and capital from enterprises that build real economic muscle or enduring wealth.

I also see billions of dollars and hours invested in the GMO foods, biowarfare, and big pharma products that are poisoning the existing population. Indeed, life expectancy in the United States has dropped dramatically since the financial coup d’état began in 1997, and disability has skyrocketed. Dr. Mark Skidmore’s latest study demonstrates that if the U.S. were to return to the levels of disability seen in 2010, it would lower government health care expenditures by $500,000,000,000 a year. As Toby Rogers regularly warns, the Great Poisoning is bankrupting the United States.

Meanwhile, the people being disabled and depopulated eagerly continue to invest in the companies engineering their slow kill. They continue to invest in the Ponzi schemes that are moving them away from real assets and power.

I am often criticized for not supporting the politicians who are engineering the government approvals and funding for the latest mass atrocity. These moments are reminders of the power of mass media and neurological weaponry, as well as the deep state’s ability to engineer control one person at a time. There is nothing more baffling than being attacked by a person you are trying to protect for not supporting the politicians who are funding and loading the gun pointed at them and their family.

A Call to Action

If we are to change the trend and direction of where we are headed, we must redeploy our capital—our time, our savings, our investments, and our giving—toward productive investments that shift the timeline out of this descent into tyranny and human and ecological suicide. We need to finance solutions that apply new technology to successfully rebalance living and financial equity in communities.

Environmental scientist and entrepreneur Jason Bawden-Smith always said, “Your complaint is your call to action.”

David Hughes’ brilliant work on Omniwar, presented here, is our call to action. How do we deploy our investments to create the world we want to live in? In this world:

• The soil is rich and healthy.

• Bees thrive.

• People own land and homes and use them productively.

• Students can get an excellent education without debt and disinformation.

• Food is nutritious.

• We enjoy privacy from invasive surveillance and killer drones.

• Our children can trust their neighbors and are free to roam, learn, and thrive.

• The Internet of Bodies is something in science-fiction movies, not something being implemented by toxic spraying overhead.

In the face of Omniwar, how do we free our minds and our consciousness to convert and transform the onslaught of invasive, weaponized technology into productive responses that instead apply powerful technology to unleash a renaissance of freedom, new wealth, and new possibilities? And how do we break that down to support entrepreneurs who are creating new ventures and help them manage those ventures to success? How do we fund research and education? How do we build careers that contribute to the effort? How do we fund political candidates and legislative efforts that use the force of law and transparency to protect us from corruption?

Jim Rouse, the famous developer and founder of the Enterprise Foundation (later Enterprise Community Partners), once asked an important question when the Rouse Company began planning to build in Columbia, Maryland: “How do we create communities where people are free to love one another?” Indeed, this is the challenge before us. It’s time to leave fear in the dustbin and gather to invest in our future.

I don’t begin to have all the answers. I do know that at the heart of things, there are answers, and we can create and invent them together. Love is the most powerful force on Earth, with the power even to overcome and transform Omniwar.

Let David A. Hughes’ brilliant work be the complaint that is our call to action.

Catherine Austin Fitts
Stavoren, Netherlands
March 2025

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Solari Report subscribers have access to the full Omniwar Wrap Up

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