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Financial Ecosystems
October 24, 2008 ~ Hohenwald, Tennessee
Catherine Austin Fitts
Solari, Inc.
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What Is a Financial Ecosystem?
A financial ecosystem is an economic environment composed of monetary,
contractual and risk management relationships that are interdependent and
can be considered in relation to each other as a unit.
A natural ecosystem is subject to natural laws. A financial ecosystem develops as
a result of man-made laws, many of which relate to how people govern and
manage natural resources.
As a man-made system, a financial ecosystem is first and foremost defined by
rules – whether these rules be laws, regulations, standards, contracts, common
law agreements or simply cultural practice and habit.
© Solari, Inc. 2008
Hohenwald Financial Ecosystem
Who are the governing spheres?
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Bank of International Settlements/IMF/World Bank
NAFTA
Federal Reserve System
Federal Reserve District Six – Atlanta
US Military and Intelligence – Various
US Federal Government – Region 4
US Attorney’s Office and US Courts – Middle District of Tennessee
State and Local Government
State and Local District Attorney and Judicial Districts
Tennessee Valley Authority
And many, many more...
© Solari, Inc. 2008
Federal Contracts in Tennessee
© Solari, Inc. 2008
Continued >>>
Federal Grants in Tennessee
Continued >>>
Some of the Components of a
Financial Ecosystem Include
Organizations
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© Solari, Inc. 2008
Households
Companies
Farms
Banks
Municipalities
Not-for-profits
Schools
Foundations
Associations
Cooperatives
Endowments
Some of the Components of a
Financial Ecosystem Include
Financial Flows
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© Solari, Inc. 2008
Deposits
Revenues
Purchases
Profits
Taxes & Fees
Donations
Financial Data
Some of the Components of a
Financial Ecosystem Include
Financial Pools
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© Solari, Inc. 2008
Financial Data
Financial Assets
Financial Liabilities
Escrows
Reserves
Investments
Capital
Some of the Components of a
Financial Ecosystem Include
Hedges
• Insurance
• Options
• Futures
Tools
• Currency
• Credit and Debit Cards
• Exchanges
Markets
• Currency
• Stock
• Bond
© Solari, Inc. 2008
About Financial Ecosystems in the U.S.
1. Most of us have never studied financial ecosystems and their
component parts; however, there is no reason why we cannot do so.
Step one is building a glossary of 200-500 words (including for the
various component parts such as those listed about) that make it
possible to understand and express accounting and financial data and
the algebra of time and money.
2. Studying financial ecosystems requires understanding topics for which
some information is private and/or non-transparent and it is socially
unacceptable, harmful or risky to openly seek it or discuss it. Hence,
building an understanding of an ecosystem requires discretion and
respect for the risk of managing in the midst of economic warfare.
© Solari, Inc. 2008
Continued >>>
About Financial Ecosystems in the U.S.
3. In the US, all local ecosystems are controlled and dependent on
federal government financial flows, assets and credit. Hence,
understanding the federal role in a local financial ecosystem is
essential to understanding the system.
Federal flows are determined by global politics and warfare.
Hence to understand the flows in a community it helps to
understand global geopolitics that determine US cost of capital.
4. To understand the financial ecosystem in a place, it is invaluable
to understand the economics of people’s time, as well as their
risks and incentives.
© Solari, Inc. 2008
Continued >>>
About Financial Ecosystems in the U.S.
5. The Popsicle Index and the Dow Jones Index – what does it say
about our inability to see or value “living equity.” Why is the
spread of cost of capital so wide?
6. Wealth creating decentralization will require re-engineering the
federal government role. Is this possible?
7. Wealth creating decentralization will require disintermediation.
Is this possible?
© Solari, Inc. 2008
Continued >>>
About Financial Ecosystems in the U.S.
8. Change will require a significant decrease in time watching TV.
Is this possible?
9. The chances of business success are dramatically increased when
the founders and leaders understand their financial ecosystem
and how to contribute to it in a way that reduces both system
risk as well as the risk to a variety of ecosystem participants.
© Solari, Inc. 2008
Starting A Business
October 24, 2008 ~ Hohenwald, Tennessee
Catherine Austin Fitts
Solari, Inc.
Team Business Plans
Friday:
Materials:
• Local panel questions
• Starting a small business checklist
• Ethanol template
Saturday:
Experience from an individual and community investors point of view
Sunday:
Create template for business plan, including next steps
Determine roles and responsibilities, including for next steps
Post so it is available to all groups
Tuesday:
Morning: 20 min presentation to teams; 10 min feedback
Afternoon: 20 min presentation to local leadership; 10 min feedback
Next Steps:
To be invented
© Solari, Inc. 2008
Four Parts of a Business
The Ecosystem
The Business
The Business of the Business
Financing a Business
© Solari, Inc. 2008
Starting a Business Stories
• The Invention Room
• Ninja Turtles and Lone Rangers
• Gender Economics: The Bar Business
vs. Investment Banking
• Creating Your Culture
© Solari, Inc. 2008
Starting A Business
October 24, 2008 ~ Hohenwald, Tennessee
Catherine Austin Fitts
Solari, Inc.