Financial Ecosystems October 24, 2008 ~ Hohenwald, Tennessee Catherine Austin Fitts Solari, Inc.

1. Financial Ecosystems October 24, 2008 ~ Hohenwald, Tennessee Catherine Austin Fitts Solari, Inc.

2. Return to the Network Return to the Investor Total Economic Return

3. + + - | Return to Network Liquidate Centralize Wealth Return to Investor

4. + + - | Return to Network Liquidate Centralize Wealth Return to Investor Follow

5. + + - | Return to Network ` Solari Strategy Liquidate Centralize Wealth Create Wealth Return to Investor Follow Drop Out

6. 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

7. Hohenwald Financial EcosystemWho are the governing spheres? • 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

8. Federal Contracts in Tennessee Continued >>> © Solari, Inc. 2008

9. Federal Grants in Tennessee Continued >>>

10. Some of the Components of a Financial Ecosystem Include Organizations • Households • Companies • Farms • Banks • Municipalities • Not-for-profits • Schools • Foundations • Associations • Cooperatives • Endowments © Solari, Inc. 2008

11. Some of the Components of a Financial Ecosystem Include Financial Flows • Deposits • Revenues • Purchases • Profits • Taxes & Fees • Donations • Financial Data © Solari, Inc. 2008

12. Some of the Components of a Financial Ecosystem Include Financial Pools • Financial Data • Financial Assets • Financial Liabilities • Escrows • Reserves • Investments • Capital © Solari, Inc. 2008

13. 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

14. About Financial Ecosystems in the U.S. • 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. • 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. Continued >>> © Solari, Inc. 2008

15. About Financial Ecosystems in the U.S. • 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. Continued >>> © Solari, Inc. 2008

16. 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? Continued >>> © Solari, Inc. 2008

17. 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

18. Starting A Business October 24, 2008 ~ Hohenwald, Tennessee Catherine Austin Fitts Solari, Inc.

19. 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

20. Four Parts of a BusinessThe EcosystemThe BusinessThe Business of the BusinessFinancing a Business © Solari, Inc. 2008

21. 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

22. Starting A Business October 24, 2008 ~ Hohenwald, Tennessee Catherine Austin Fitts Solari, Inc.