CA CAFR Shows Tax Revenue Converted Into $ 600 Billion of Investment Funds
Description
The State Government of California has $100’s of billions in liquid investments (assets), which if accessed, could easily pay off all of its debt tomorrow, and would have $100’s of billions left over.
Document Sample
THE $CAFR DECEPTION
The State Government of California has $100’s of billions in
liquid investments (assets), which if accessed, could easily pay
off all of its debt tomorrow, and would have $100’s of billions
left over.
Three researchers on CAFR’s reviewed the 2011 California
“State” CAFR to reveal $600 billion in potential surplus
taxpayer assets. If the thousands of local governments CAFRs
in the state of CA were examined, the totals would be in the
trillions of dollars.
A note from Walter Burien:
Government on all levels over the decades has squirreled away
massive amounts of money in the collective trillions of dollars. Some
from the public call these funds surpluses. In all reality, government in
its intent to build these massive investment power-bases created their
own designated purpose for these funds, statutes to back up the
designation, and did so without in most cases public oversight or in fact in most cases without public
knowledge.
If we created a "Buy an island in Polynesia fund", funneled $750,000,000 into it, we would not call it a
surplus. Government would call it a fund with a designated purpose and not available. A mid-sized
local government could have numerous specialty investment funds with collective totals equaling
fifteen-billion-dollars with each fund "designated" for a "specific purpose" and get away with saying
they do not have $1 surplus. They could even say within a selectively created budget report that they
were operating at a deficit and needed to raise taxes.
Government was NOT supposed to operate at a profit. How did they get around this restriction? ANSWER: If
for example a city had a 100-million dollar profit for the year from any of its operations, at a stroke of a pen
they create a "liability fund" and poof, there goes the profit re-designated now as a liability.
It all boils down to a complete: open: and public review of each and every one of these so called
"designated" fund balances to see which are "truly" needed if any and which are not. Then true
surpluses will be unveiled and seen by one-and-all in a true light. Many games will be played within
every local government to maintain their wealth bases established. Expect obfuscation and
intentional misdirection, especially when billions of dollars are involved.
Also while you are looking, look at the gross income over the years. Most local governments have
been expanding their gross income each year to obscene levels. Doing so as they misrepresent to the
public that they are cutting back.
TREASON: "Treason doth never prosper; what's the reason? For if it prosper, none dare call it treason."
Sir John Harrington, 1561-1612
Walter Burien - CAFR1
P. O. Box 2112
Saint Johns, AZ 85936
Tel. (928) 458-5854
Does California on the state level need $600
billion of investment funds given our austerity?
Carl Herman
Nonpartisan Examiner
May 31, 2012
Most people don’t know this, but Californians have been overtaxed by $600 billion
dollars at the state government level. This is documented in California’s Comprehensive
Annual Financial Report (CAFR). Clint Richardson details $577 billion in investments and
cash in this annual public document.
Let’s consider what this means:
This public evidence makes Governor Brown’s claim of a ~$16 billion budget deficit with no option than
“austerity” a lie. This is similar if the governor claimed the public checking account didn’t have enough
money for our children’s schools while he covered-up a savings account with over 30 times the claimed
shortage. This charge applies to previous administrations and both political parties’ leadership.
Clint notes on page 107 of California’s CAFR that the $6 billion annual interest cost and $164 billion in state
debt are also cover-ups when contrasted with taxpayers’ investments. A sharp irony is that many of
California’s “investments” are in other government debt securities. This means a net loss to taxpayers as one
group pays another interest minus the cost of creating and managing the debt.
The state of California claims these funds are “designated” and cannot be used for other purposes, and
necessary to fund pensions.
Let’s look at this official claim:
“Designated” lasts only as long as our representatives say; and these are the same people who “designated”
austerity for our schools, roads, and and other essential infrastructure. When I last invested the time to slog
through the state’s CAFR in 2009, the difference between current employee contributions and pension
payments in a depressed economy with laid-off employees was $1.8 billion. This means the state claims they
need 320 times the budget deficit to solve this problem. That is, the state claims they need to overtax
Californians 320 times over to pay a bill.
Californians do not know about these funds revealed in the CAFR. If they did, would they choose the state’s
management of austerity while investing in debt and Wall Street’s scraps from corporate dividends? Or would
they demand to know their other options?
If this $600 billion were returned to California’s 12 million households, each would receive $50,000. Or, if you
prefer the money returned per average household income of $50,000 since this sum represents an overtax,
each household could receive a proportional amount (if your household earns $150,000/year, you would
receive $150,000).
But wait, there’s more: the state is just the largest of literally thousands of government entities in California,
with each having investments and “rainy day funds,” the collective total of what Californians have been
overtaxed has been sampled and estimated at the astounding total of $8 trillion.
If this figure is accurate, then each California household has been overtaxed by a present-day value of over
half a million dollars. And if we take our example of $150,000/year income, well, you’ll be happy to
understand you’re owed a credit of ~$1.5 million. Of course, these colossal investments should be considered
by multiple and independent cost-benefit analyses to discover our options; we can’t simply all cash them in.
For a 9-minute television interview of Walter Burien by Alex Jones, go here.
I therefore apologize for the lie in my article’s title; I thought it best to break this news more simply and
gently.
These tragic-comic cover-ups of what the public has the right to know, and that state has legal fiduciary
responsibility to clearly communicate for public consideration also include California’s policy option to issue its
own credit, and the national policy option to issue money (not credit/debt) to directly pay for public goods
and services.
And what does this mean?
A future of credit and money brighter than you imagined possible:
If California had a state-owned bank optimized for public benefit, a possible structure to pay our entire state
tax burden would be 2% mortgages. This interest charge, as homeowners understand from typical 30-year
mortgages, is significant money; it could be a public benefit rather than the privilege of our “too big to fail”
bailed-out banks (more public banking information here).
Public banks could provide at-cost credit to cover any budget shortfalls from year-to-year, and eliminates the
need for overtaxation “rainy day funds” in these thousands of government accounts. These facts at the state
level in California are repeated by the two main political parties’ “leadership” in all states (explore here).
At the national level, we could create debt-free money rather than allow the private banking system’s
pinnacle bank, The Federal Reserve, lend to us. Here are three simple points to explain:
1. The US does not have a money supply; we have its Orwellian opposite as a debt supply. This is because
the US leading banks won legal right through passage of the 1913 Federal Reserve Act to have private
banks and the Fed create debt for what we use as money, and then charge the 99% for its use.
2. The policy choice of a debt supply compounded with interest causes ever-increasing aggregate debt
that can never be repaid. It can’t be repaid because this is what we use for money. The US national
debt now pushing $16 trillion has a gross annual interest payment over $400 billion a year; ~$4,000 per
US family of $50,000 annual income (if your household earns $100,000, then your gross annual interest
payment is ~$8,000 every year).
3. Monetary reform creates debt-free money that extinguishes the debt (details here), and allows
government to become employer of last resort for infrastructure investment (hard and soft). This
creates full-employment, optimal infrastructure, and falling prices because infrastructure historically
creates more value to the economy than cost.
The Claremont Colleges held a conference to explore monetary and credit reform last month, for which I was
one of the presenters. For those who want to review the papers and filmed talks meant for the general public
to understand as clearly as I hope I’ve written here, explore this link.
And for even better news, consider resource-based economics as a predictable future beyond monetary and
credit reform.
Finally, you might wonder about the six US corporate media giants with literally massive investment in these
government investments funds buying their stock, and their prima facie conflict of interest to report what
you’re reading here. It’s not as if these are new ideas; Benjamin Franklin is among America’s brightest minds
who wrote on credit and monetary reform.
I’ve wondered about corporate media’s commitment to factual reporting too, but that’s another story.
Carl Herman, Nonpartisan Examiner
Carl Herman is a National Board Certified Teacher in economics, government, and history. His hobby is
research, education, and lobbying for improved public policy. He can be reached at
Carl_Herman@post.harvard.edu.
Public Banks are ...
• Viable solutions to the present economic crises in US states.
• Potentially available to any-sized government or community
able to meet the requirements for setting up a bank.
• Owned by the people of a state or community.
• Economically sustainable, because they operate transparently according to
applicable banking regulations.
• Able to offset pressures for tax increases with returned credit income to the
community.
• Ready sources of affordable credit for local governments, eliminating the need
for large “rainy day” funds.
• Required to promote the public interest, as defined in their
charters.
• Constitutional, as ruled by the U.S. Supreme Court
•
... and are not
• Operated by politicians; rather, they are run by professional
bankers.
• Boondoggles for bank executives; rather, their employees are
salaried public servants (paid by the state, with a transparent pay structure)
who would likely not earn bonuses, commissions or fees for generating loans.
• Speculative ventures that maximize profits in the short term,
without regard to the long-term interests of the public.
http://publicbankinginstitute.org/home.htm
CAFR: If $600B ‘fund’ can’t fund $27B pension, $16B
deficit, why have it?
Carl Herman
Washington’s Blog
June 18, 2012
RELATED: Comprehensive Annual Financial Report for the Year Ended June 30,
2011
RELATED: 2011 CalPERS Comprehensive Annual Financial Ended June 30, 2011
RELATED: CA CAFR shows $600 billion tax surplus, 1% demand ‘austerity’
Let’s summarize what we’ve documented so far about the data
of California’s 2011 Comprehensive Annual Financial Report (CAFR) and what it means for the state’s 12
million households:
• Officials and corporate media never remind taxpayers, but California holds $600 billion in taxpayer
cash and investments ($50,000 non-disclosed assets per household).
• California’s ~14,000 various government entities’ CAFRs have a sampled-data total estimate of $8
trillion in surplus taxpayer assets ($650,000 non-disclosed assets per household). For example, page 63
of L.A. County’s 2011 CAFR shows $66 billion in cash and investments.
• The state’s $600 billion cash and investment fund is explained as designated for funding state
pensions. The CAFR data show the opposite: $27 billion in pension cost receives only $1 billion income
from $600 billion in withheld taxpayer assets.
• Californians are taxed $19 billion to pay for pensions (95% of the public cost) while also losing $50,000
in assets the state withholds in cash and investments.
• The $600 billion fund in cash and investments contributed 4% of the state’s $27 billion pension costs,
but since 2008 has been “managed” to cost taxpayers more than the net income it produces.
• Governor Brown is silent about the $600 billion in surplus cash and investments, claiming the $16
billion budget deficit can only be addressed by austerity – massive funding cuts to our essential
infrastructure.
So the natural question is if the state’s withholding of $600 billion in our cash and investments does not fund
pensions, address a budget deficit, or prevent devastation to infrastructure, how can we best restructure the
purpose and use of OUR MONEY for optimal public benefits?
I asked this of my two state representatives, Senator Carol Liu and Assemblymember Anthony Portantino.
Carol and her consultant, Robert Oakes, has not yet answered this question. Anthony responded, but failed to
address the question.
I’m also addressing law enforcement whether such non-disclosure of withheld taxpayer cash and assets by
public officials is a crime while they tell us the only option is our austerity.
I’ll write with updated status of Senator Liu, Assemblymember Portantino, and law enforcement agencies.
Remember, this is a case study where I’m investing my time to explore and document this issue in the public
interest. You are welcome to do the same http://www.infowars.com/cafr-if-600b-fund-cant-fund-27b-pension-16b-deficit-
why-have-it/
CAFR tax surplus trillions: L.A. County Sheriff’s
1st official response: denial
Carl Herman
June 11, 2012
Nonpartisan Examiner
I spoke on the phone with Los Angeles County Senior Media Advisor Steve Whitmore. Below is the e-mail I sent
to Mr. Whitmore that shows the L.A. County Sheriff’s first response:
Mr. Whitmore: This e-mail:
1. Documents our phone conversation today,
2. provides you the evidence I find of criminal acts by officials at L.A. County and the State of California,
3. and requests answers to questions regarding my criminal complaint. I have been directed to you with
a criminal complaint, and expect whatever rights and promptness is customary promise from my
having followed the instructions from my local Sheriff station and you. Please acknowledge receipt of
this e-mail and when I can expect an official response.
The content of our conversation regarding a criminal complaint are published, with reposts of some of my
articles that exceed ten million views (look here, here, here to start, overall CAFR articles here). I’d very much
like to report a story of competence and justice under the law, Mr. Whitmore. And that said, I promise to
report on exactly whatever I receive.
1. Our phone conversation:
I called my local law enforcement agency, Crescenta Valley Station, as an economics journalist wishing to file a
criminal complaint regarding the State of California and Los Angeles County officials’ non-disclosure of
hundreds of billions in tax surpluses. I was directed to the L.A. County Sheriff’s Headquarter Bureau and spoke
with you.
I explained to you that County and State government claims of budget deficits that “forced no choice” except
budget cuts seems to be a crime of fraudulent non-disclosure by officials with fiduciary responsibility to
taxpayers for honest communication of our financial status. The financial fraud is similar to honestly reporting
a shortage of funds in a checking account, but never mentioning that a savings account exists with 35 times
the claimed shortage with the state, and 300 times the claimed shortage for the county.
I told you the evidence of this is the county and state’s Comprehensive Annual Financial Report (CAFR). I asked
you if you were familiar with a CAFR. You did not answer the question, but instead asserted the existence of
such funds, “Is not true.” After first requesting that I send the documented evidence via the postal service, you
reluctantly agreed to accept it via e-mail.
2. The evidence:
California's Comprehensive Annual Financial Report (CAFR) shows a tax surplus of $600 billion dollars in cash
and investments. This makes Governor Brown saying the $16 billion budget deficit with "no option" than
austerity a lie from an official with legal fiduciary responsibility for full and honest communication regarding
taxpayer money.
The even-more astounding amount is $8 trillion in surplus taxes from sampled data of California’s various
~14,000 government entities’ CAFRs.
Two years ago, I reported $88 billion in cash and investments in CAFRs for the County and City of Los Angeles.
The 2011 Los Angeles County CAFR claims a budget deficit of $221 million (p. v), and states all county
departments must cut 7% from their budgets (Sheriff’s must cut $15 million). The people of the County of Los
Angeles have other options. The county has $66 billion in “Cash and Investments” (page 63). This means
county officials currently and repeatedly claim public programs must be cut because of a $0.221 billion deficit
in one public account while being silent about 300 times that amount in other public accounts.
County pension funds on page 47 show member contributions at $1.4 billion and benefit payments at $2.2
billion. Clearly a $0.8 billion cost has other options that officials are legally obligated to disclose than hoarding
$66 billion as a tax surplus. If the county’s 3 million households received the $66 billion, each would receive
$20,000.
If the $600 billion were returned to California’s 12 million households, each would receive $50,000. Or, if you
prefer the money returned per average household income of $50,000, each household could receive a
proportional amount (if your household earns $100,000/year, you would receive $100,000).
If the whole $8 trillion were returned, then each California household has been overtaxed by a present-day
value of over half a million dollars ($500,000). Of course, these colossal investments should be considered by
multiple and independent cost-benefit analyses to discover our options; we can’t simply all cash them in.
Californians do not know about this data revealed in CAFRs. If they did, would they choose the state’s
management of austerity or insist on knowing our full options?
3. Questions regarding my criminal complaint:
• First, you told me the evidence I just documented of literal billions and trillion in tax surpluses don’t
exist. Please explain what you meant.
• County and State officials publicly and repeatedly claim budget deficits create no option than severe
cuts, and never mention the billions in their own financial statements and collective trillions. In their
official positions of fiduciary responsibility, is such silence a crime of non-disclosure and/or financial
fraud? Please explain and document the applicable law. If the Sheriff’s find my criminal complaint
merits investigation, with whom do I contact next? If the Sheriff’s claim this is not a crime, please
provide the name, rank, and contact information of the person providing that conclusion.
• When officials have been pressed about CAFR investment funds and cash, they provide three
justifications I wanted to provide in case you claim they are valid. First, “these funds are designated”: if
this is valid, designated by whom at the county and state levels, and isn’t this a matter of those who
designate can just as easily redesignate and were always legally obligated to explain these funds to the
public? Second, “these funds are for pensions”: if so, please explain how the magnitude of difference
between tax surpluses and pension costs excuses officials never mentioning these funds as an option.
Third: “these are rainy day funds”: if so, how are officials justified to not disclose these accounts and
consider other rainy day options (such as a state-owned bank for at-cost credit for budget deficits)?
• On page 107 of California’s CAFR we see $6 billion annual interest cost of the $164 billion in state debt.
The claimed “necessity” of debt and that nearly $100 billion of California’s “investments” are in other
government debt securities means a net loss to taxpayers as one group pays another interest minus
the cost of creating and managing the debt. Non-disclosure of funding by debt, and that buying debt
securities that loses money is an “investment” also seems like a criminal act. Is it?
Again, I was directed to speak with you regarding a criminal complaint that I am also documenting as a
journalist.
Please respond to make the Sheriff’s Department proud. Your brothers and sisters in law enforcement are one
of the groups harmed by what I see as an “emperor has no clothes” obvious crime.
Law enforcement has been lied to that there is no money to fund your departments.
Law enforcement has suffered layoffs, decreases in job safety, and decreases in pay.
When the “99%” in law enforcement discover these facts, I predict they will be highly motivated for ethical
investigation under the law.
Do you agree, Mr. Whitmore?
Thank you,
Carl Herman
http://www.examiner.com/article/cafr-tax-surplus-trillions-l-a-county-sheriff-s-1st-official-response-denial
CA CAFR $600 billion ‘case study’ final status with
state reps, local media, law
July 26, 2012 | By: Carl Herman
This is the final status I see with a case study to communicate California’s $600 billion in surplus assets as
documented in the state’s Comprehensive Annual Financial Report (CAFR) to my two state representatives,
local media, law enforcement, and local community groups (school district and board, school financial
support, Republican/Democratic clubs, city officials). The e-mail I sent to these local groups is the status:
LCF school funding and CA CAFR $600 billion surplus final status
Dear friends and community members,
I alerted you to information important to LCF’s volunteerism and donations to what should be basic education
funding. The funding isn’t delivered from state-level claims of “budget deficits” that the financial information
clearly refutes.
After five weeks of work with our two state representatives to have them affirm $600 billion in surplus
taxpayer assets as revealed in California’s CAFR (Comprehensive Annual Financial Report), here’re the
outcomes:
1. I worked with Senator Liu’s consultant, Robert Oakes, and Assemblymember Portantino’s Chief of
Staff, Trent Hager, to make sure both legislators were fully aware of the documented $600 billion
(remember, the state claims need for austerity from a $16 billion budget deficit). Both chose “no
comment” after five weeks of evasive acts.
2. The local papers: The Outlook printed two letters, and The Valley Sun printed one. I met with The
Valley Sun’s editors Carol Cormaci and Bill Kisiluk at their request so they were confident the letter
reported objective data. Both publications chose to not print a concluding letter reporting to
community members that their two LCF-resident state representatives had no comment in light of
these colossal funds and LCF heroic volunteerism and fundraising to support our schools. My argument
that our reps’ “no comment” couldn’t stand public scrutiny with their reporting didn’t win their
support to print such a letter.
3. The Los Angeles Times was one of many major publications reporting on CA Parks and Recreation
Department’s Director resigning and their #2 being fired over $54 million discovered in exactly the
same kind of account the CA CAFR documents. In this case, their department also claimed austerity
from a $22 million budget deficit. I’m following-up with several reporters of this story to alert them to
the larger $600 billion story.
4. Law enforcement reported to me that verbal fraud about need for austerity is not a crime unless I can
prove funds were stolen. This seems to be a specious excuse for not taking on powerful political forces,
but I chose to not pursue this avenue.
While what you do is only and always up to you, I invite your contact with our state reps and/or leverage with
our local press to support exactly the disclosure of surplus assets from the CA Parks Dept. This can, and
should, lead to abundant funding for our schools and infrastructure.
As I’ve stated, as an LCF native, I’m happy to help you understand the objective data. My meeting with Carol
and Bill at The Valley Sun required just 20 minutes and three pages of the CAFR. This has been a local “case
study” I’ve documented, with resulting reposts going to over ten million US readers (as best I can estimate
from the data).
If it helps, colleagues and I have only received professional agreement that the figures we point to on official
financial documents are indeed there, we’ve received no refutations to our claims of surplus assets, and this
seems as an “emperor has no clothes” obvious situation to all I know who’ve looked into this issue.
Let me know if I can be of service.
Carl_Herman@post.harvard.edu
http://www.examiner.com/article/ca-cafr-600-billion-case-study-final-status-with-state-reps-local-media-law
The Biggest Financial Scandal in History?
We always knew that the financial
markets were rigged, but this is getting
ridiculous. It is now being alleged that 20
major banks have been systematically
fixing global interest rates for years.
Barclays has already been fined hundreds
of millions of dollars for manipulating
Libor (the London Inter Bank Offered
Rate). But Barclays says that a whole
bunch of other banks were doing this
too. This is shaping up to be the biggest
financial scandal in history, and criminal
investigations have been launched on
both sides of the Atlantic. What those
investigations are likely to uncover could
shake the financial markets to their very
core. In the end, this scandal could
absolutely devastate confidence in the global financial system and it could potentially bring down a number of major
global banks. We have never seen anything quite like this before.
What Is Libor?
As mentioned before, Libor is the London Inter Bank Offered Rate. A recent Washington Post article contained a pretty
good explanation of what that means....
In the simplest terms, LIBOR is the average interest rate which banks in London are charging each other for borrowing.
It’s calculated by Thomson Reuters — the parent company of the Reuters news agency — for the British Banking
Association (BBA), a trade association of banks and financial services companies.
Why Does Libor Matter?
If you have a mortgage, a car loan or a credit card, then there is a very good chance that Libor has affected your personal
finances. Libor has been a factor in the pricing of hundreds of trillions of dollars of loans, securities and assets. The
following is from a recent article by Maureen Farrell....
These traders influenced the pricing of the London Interbank Offered Rate or Libor, a benchmark that dictates the pricing
of up to $800 trillion of securities (yes trillion) $800 trillion?
Read the article: http://theeconomiccollapseblog.com/archives/the-biggest-financial-scandal-in-history
Secret Government Slush Funds Right Under Our
Noses: Carl Herman Reports
Posted on June 28, 2012
Watch the video: www.youtube.com/watch?v=EEnLy-HNBLU&feature=player_embedded
Infowars Nightly News interviewed me for 22 minutes to discuss how states’ Comprehensive Annual Financial
Reports (CAFR) reveal taxpayers have abundant assets already in government hands to pay for all public
goods and services multiple times.
Summarized here, California has $600 billion in cash and investments, with all state government agencies
combined having $8 trillion. These amounts translate into $50,000 per household retained by the state, and a
staggering $650,000 per household combined total.
This is why CAFR data disclosure is one of three obvious game-changing solutions a critical mass of the 99%
can command to reclaim economic success from the current capture of the 1%; the other two are monetary
and credit reform.
This objective and independently verifiable data also communicates the need for Occupy victory for the 99%
to recognize and end obvious malfeasance/crimes centering in money and war. This victory literally saves
millions of lives, helps billions, and returns trillions of the 99%’s hard-earned money.
The CAFR Swindle - The Biggest Game in Town
Published on Sep 3, 2012 by minivanjack
Taxes are no longer necessary. This video exposes a deliberate and massive swindle that is perpetrated by
every government agency from your local school district all the way up to the Federal government.
This is the second version of this expose' on public
finance. Similar to first version, but incorporating
input from Walter Burien and Clint Richardson.
See their sites for much more information.
www.cafr1.com
www.thecorporationnation.com
www.realitybloger.wordpress.com
Watch the video: http://www.youtube.com/watch?v=1pRPBKJQnyU&feature=plcp
--------------------------------------------------------------------------------------------------------------------------------------
Testimony: Assembly Budget Subcommittee on Budget Process, Oversight &
Program Evaluation - Tracking of Special Fund Balances (CAFRs)
"There are 26 pages of special funds; some are large, very large." Lois Wolk
One Department hid $54 million in 2 special funds. But there are 161
departments and over 560 special funds. So my chief concern today is to hear
from the administration why the hidden parks money is an isolated incident
and not the tip of the iceberg. We need to know that there aren’t other pots
of money lying around. Bob Blumenfield – CA State Assemblymember, District
40, LA, D (at 11:23)
Here is part 1 from August 9, 2012
Assembly Budget Subcommittee On Budget Process, Oversight & Program
Evaluation - Tracking of Special Fund Balances (CAFRs)
Watch the hearing: http://calchannel.granicus.com/MediaPlayer.php?view_id=7&clip_id=646
Here is part 2 from August 15, 2012 of the testimony on CAFRs at the Senate Budget & Fiscal Review
Committee: Informational Hearing Special Fund Accounting and Oversight
Testimony Starts at 01:52:30
Watch the hearing: http://calchannel.granicus.com/MediaPlayer.php?view_id=7&clip_id=665
California Government
Hides Billions from
Taxpayers
Clint Richardson
realitybloger.wordpress.com
Friday, May 25, 2012
The Big Lie
Over the past weekend, Gov. Jerry Brown of California took to the safety of YouTube to reveal that the Golden
State’s budget deficit is now $15.7 billion, far greater than the original $9.2 billion estimate in January.
(CNN, May 15, 2012)
————-
The Simple Truth
The State Government of California has $100′s of billions in liquid investments and assets,
could easily pay off all of its debt tomorrow, and would have $100′s of billions left over.
————-
What if I could show you over $577 billion in investment fund balances that
aren’t being reported by the California State Government on its budget report?
Well that is what I’m about to do…
In this article we will once again show the purposeful omission of massive amounts of wealth by your
government. If you live in California, this may well be the most important thing that you read this year. If you
live elsewhere… rest assured that the same holds true in your State, County, Municipality, School and other
districts.
In what can only be called a recently government produced propaganda video, California Governor Jerry
Brown is addressing and purposefully lying to the people of California, where he nicely threatens to cut school
funding by multiple billions if the people of the State do not vote in favor of his new budget plan:
Watch the video: www.youtube.com/watch?v=NPc85z9uhJQ&feature=player_embedded
“Gov. Jerry Brown’s 2012-13 budget would slash $5.2 billion in public school funding if voters reject the tax
increases he is trying to put on the November ballot…”
(Source) http://www.scpr.org/news/2012/01/05/30670/gov-jerry-browns-budget-be-released-early-after-it/
So… is California in such a financial deficit, as the Governor and his proposed and revised budget plan so
matter-of-factly states?
This is the question that we will be answering today. But in order to answer this question, we must go to the
true source of financial auditing for government, the Comprehensive Annual Financial Report (CAFR). This
report – the full accounting of government and its investments – is virtually never spoken of publicly. It is not
mentioned on the nightly news. And it is not referred to when addressing the people about taxpayer issues
and budgetary considerations and shortfalls. In short, this CAFR report is the Holy Grail of government
accounting; very difficult to read and comprehend, and worse of all… it is hidden in plain sight.
Here is a link for the 2011 Comprehensive Annual Financial Report (CAFR) for the State government
(corporation) of California – a 300 page, independently audited report required by federal law, and which will
be the subject of the following information. (See attached.)
Get a copy of the 2011 CA CAFR to follow along: www.sco.ca.gov/Files-ARD/CAFR/cafr11web.pdf
And for previous years back through fiscal year 1999: LINK: http://www.sco.ca.gov/ard_state_cafr.html
Now, the first thing that must be understood is the difference between the partial “budget report” as referred
to above by the Governor, and that of the Comprehensive Annual Financial Report – which is the full audit of
the California government. The following paragraph is taken directly from the 2011 CAFR report, and explains
this difference quite succinctly…
On page 200, the 2011 California State CAFR explains the following (emphasis mine):
“On a budgetary basis, the State’s funds are classified as either governmental cost funds or nongovernmental
cost funds. The governmental cost funds include the General Fund, most of the funds that comprise the
Transportation Fund, and many other funds that make up the non-major governmental funds reported in
these financial statements.
Governmental cost funds derive their revenue from taxes, licenses, and fees that support the general
operations of the State. The appropriations of the budgetary basis governmental cost funds form the annual
appropriated budget of the State.
Nongovernmental cost funds consist of funds that derive their receipts from sources other than general and
special taxes, licenses, fees, or state revenues and mainly represent the proprietary and fiduciary funds
reported in these financial statements. Expenditures of these funds do not represent a cost of government
and most of the nongovernmental cost funds are not included in the annual appropriated budget…”
And so we can see that governments participate in many business activities; and we must first and foremost
understand that a large portion of liquid investment assets are held within what the government calls “non-
governmental” activities, including “Enterprise Operations”. These investment assets are usually kept in what
are called “Investment Funds”.
But government is only obligated (by its own law) to report what it refers to as “governmental” or “taxpayer”
activities to the citizenry on its “Budget/Appropriations Report”. Tax in… Tax out…
In short, the Governor of the great corporate State of California is lying to his taxpayers through the act of
omission of these CAFR facts, by only referring to a hand selected portion of that CAFR, which is called the
State’s annual budget report. While this should be tried as perjury, the laws of the State/Federal government
protect him from this ever happening.
To help in your understanding, let’s say that you were to have a checking account with $1,000 and a savings
account with $10,000 in two different banks, and that you only reported to the government that you had
$1,000 dollars as your net worth because you don’t want to use your savings account to pay bills (taxpayer
obligations) to government. You’d be audited and put in a federal debtor’s prison. But for government, the
simple designation of “non-governmental” or “non-taxpayer” income and investment returns allows them to
hide all of this wealth from the people and the “Budget Report”, while never mentioning the funds and wealth
in the CAFR report. The only difference is that government does this legally – because government makes its
own laws!
Why do they do this?
The answer is simple, really… TO JUSTIFY THE CONTINUATION OF, THE RAISING OF, AND CREATION OF NEW
TAXES!!!
Taxation is nothing more than revenue generation. And much of that taxpayer money ends up in non-
governmental corporations and investment funds.
Think of a manager of any department in any private corporation whom, at the end of the fiscal year has
$10,000 dollars left over in his expense account. If he doesn’t spend that money, he will be appropriated
$10,000 less for his budget in that next fiscal year because he was given too much for the current year. So he
purchases extra supplies his department doesn’t need and maybe even spends $1,000 extra so that he gets
even more money appropriated for the next year. As long as government shows a budget report to the people
(taxpayers) that excludes many of its assets because they are non-governmental (non-taxpayer obligated)
assets, it can continue each year to claim the need for more taxation and more debt because it is funneling so
much money into these nongovernmental investment funds.
Here is a list of ending balances of all of the governmental and nongovernmental “Investment Funds” that the
California State Government was holding onto for the year 2011:
Nonmajor governmental funds account for the State’s tax-supported activities that do not meet the criteria of
a major governmental fund. Following are brief descriptions of nonmajor governmental funds.
Special revenue funds account for the proceeds of specific revenue sources, other than debt service or capital
projects, that are restricted or committed to expenditures for specific purposes.
Page 194 – (chart) “Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor
Governmental Funds” – as of June 30, 2011:
Business and Professions Regulatory and Licensing Fund – $1,396,449,000
Environmental and Natural Resources Fund – $8,683,305,000
Financing for Local Governments and the Public Fund – $5,273,511,000
Cigarette and Tobacco Tax Fund – $253,300,000
Local Revenue and Public Safety Fund – $44,520,000
Health Care Related Programs Fund – $947,552,000
Trial Courts Fund – $1,522,274,000
Golden State Tobacco Securitization Corporation Fund - $619,754,000
Other Special Revenue Programs Fund - $1,907,723,000
————————————————————————————-
TOTAL IN SPECIAL REVENUE FUNDS = $20,648,388,000
————————————————————————————-
Debt service funds are used to account for the accumulation of resources for and the payment of principal
and interest on general long-term obligations.
The Economic Recovery Bond Sinking Fund – $484,712,000
The Transportation Debt Service Fund – $0.00
————————————————————————————-
TOTAL IN DEBT SERVICE FUNDS = $484,712,000
————————————————————————————-
Capital projects funds are used to account for and report financial resources that are restricted, committed, or
assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and
other capital assets.
Prison Construction Fund – $2,938,000
Higher Education Construction Fund – $604,202,000
Natural Resources Acquisition and Enhancement Fund – $56,584,000
Hospital Construction Fund – $411,814,000
Local Government Construction Fund- $499,973,000
Other Capital Projects Funds – $13,945,000
————————————————————————————-
TOTAL IN CAPITAL PROJECTS FUNDS = $1,589,456,000
Building authorities are blended component units that are created by joint-powers agreements between local
governments and the State or other local governments for the purpose of financing the construction of state
buildings. The funds account for bond proceeds used to finance and construct state buildings and parking
facilities.
East Bay Building Authority – $22,404,000
Los Angeles Building Authority – $12,604,000
San Francisco Building Authority – $30,547,000
Oakland Building Authority – $8,333,000
Riverside Building Authority - $1,245,000
San Bernardino Building Authority – $11,041,000
————————————————————————————-
TOTAL IN BUILDING AUTHORITY FUNDS = $86,174,000
————————————————————————————-
Internal service funds – (Page 206) account for state activities that provide goods and services to other state
departments or agencies on a cost reimbursement basis. Following are brief descriptions of the internal
service funds.
Architecture Revolving Fund – $-25,228,000
Service Revolving Fund – $-52,412,000
Prison Industries Fund – $203,827,000
Office of Systems Integration Fund – $-1,348,000
Technology Services Revolving Fund – $130,079,000
Water Resources Revolving Fund – $0.00
Financial Information Systems Fund – $-28,915,000
Other internal service program funds – $348,352,000
————————————————————————————-
TOTAL IN INTERNAL SERVICE FUNDS = $574,355,000
————————————————————————————-
Enterprise funds – (Page 218) – account for operations that are financed and operated in a manner similar to
private business enterprises, where the costs of providing goods or services to the general public on a
continuing basis are intended to be financed or recovered primarily through user charges.
High Technology Education Fund – $34,907,000
State Water Pollution Control Revolving Fund – $3,172,928000
Housing Loan Fund – $159,679,000
Other enterprise program funds - $245,450,000
————————————————————————————-
TOTAL IN ENTERPRISE FUNDS = $3,612,964,000
————————————————————————————-
Private purpose trust funds account for all trust arrangements, other than those properly reported in pension
and other employee benefit trust funds or investment trust funds, under which principal and income benefit
individuals, private organizations, or other governments.
The Scholarshare Program Trust Fund – $4,521,770,000
The Unclaimed Property Fund – $102,534,000
Other Private Purpose trust funds - $877,000
————————————————————————————-
TOTAL IN PRIVATE PURPOSE TRUST FUNDS = $4,625,181,000
————————————————————————————-
Pension and other employee benefit trust funds – (Page 234) – account for transactions, assets, liabilities,
and net assets available for pension and other employee benefits of the two public employees’ retirement
systems that are fiduciary component units and for other primary government employee benefit programs.
Public Employees’ Retirement Fund (CalPERS) – $241,761,791,000
Public Employees’ Health Benefits Fund (CalPERS) – $1,866,877,000
State Teachers’ Retirement Fund (CalSTRS) – $155,345,815,000
Teachers’ Health Benefits Fund (CalSTRS) – $598,000
Deferred Compensation Fund – $9,365,582,000
Judges’ Retirement Fund (CalPERS) – $54,146,000
Judges’ Retirement Fund II (CalPERS) – $575,833,000
Legislators’ Retirement Fund (CalPERS) – $123,476,000
State Peace Officers’ and Firefighters’ Defined Contribution Plan Fund (CalPERS) - $499,873,000
Supplemental Contributions Program Fund (CalPERS) – $19,658,000
Other pension and other employee benefit trust funds – $10,117,000
————————————————————————————-
TOTAL IN PENSION/EMPLOYEE BENEFIT FUNDS = $409,623,766,000
————————————————————————————-
Agency funds - (Page 238) – account for the receipt and disbursement of various taxes, deposits, deductions,
and property collected by the http://realitybloger.wordpress.com/wp-admin/post.php?post=1607&action=edit&message=10State
acting in the capacity of an agent, for distribution to other governmental units or other organizations.
Receipting and Disbursing Fund - $16,599,601,000
Deposit Fund – $1,793,962,000
Other agency activity funds – $51,000,000
————————————————————————————-
TOTAL IN AGENCY FUNDS = $18,444,563,000
————————————————————————————-
Nonmajor component units are legally separate entities that are discretely presented in the State’s financial
statements in accordance with GAAP. The inclusion of component units in the State’s financial statements
reflects the State’s financial accountability for these entities.
California Alternative Energy and Advanced Transportation Financing Authority – $1,661,000
California Infrastructure and Economic Development Bank – $270,736,000
California Pollution Control Financing Authority – $4,015,000
California Health Facilities Financing Authority - $66,172,000
California Educational Facilities Authority – $33,389,000
California School Finance Authority -$158,000
California State University auxiliary organizations – $2,025,810,000
District agricultural associations – $323,244,000
University of California Hastings College of the Law – $144,486,000
San Joaquin River Conservancy – $988,000
California Urban Waterfront Area Restoration Financing Authority – $1,000
State Assistance Fund for Enterprise, Business and Industrial Development Corporation – $3,703,000
————————————————————————————-
TOTAL IN NONMAJOR COMPONENT UNITS = $2,874,358,000
————————————————————————————-
In the “FUND FINANCIAL STATEMENTS”, listed on Page 33 of the CAFR, we also see the following Major
Governmental fund balances reported:
(Chart) (Page 36) – “Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental
Funds”, for fiscal year 2011:
Federal Fund – $121,554,000
Transportation Fund – $7,767,232,000
————————————————————————————-
TOTAL IN MAJOR GOVT FUNDS = $7,888,786,000
————————————————————————————-
Proprietary Funds (Chart) (Page 42) – Statement of Revenues, Expenses, and Changes in Fund Net Assets:
Electric Power Fund – $0.00
Water Resources Fund – $1,205,431,000
Public Building Construction Fund – $214,665,000
State Lottery Fund – $103,016,000
Unemployment Programs Fund – $-6,879,180,000
California State University Fund – $2,549,324,000
————————————————————————————-
TOTAL IN PROPRIETARY FUNDS = $-2,806,744,000 (deficit)
————————————————————————————-
Major Discretely Presented Component Units (Chart) (Page 52) – Statement of Net Assets – Enterprise
Activity:
University of California Fund – $55,793,132,000
State Compensation Insurance Fund – $21,258,923,000
California Housing Finance Agency Fund – $10,196,223,000
Public Employees’ Benefits Fund - $4,071,565,000
————————————————————————————-
TOTAL IN MAJOR COMPONENT UNIT FUNDS = $91,319,843,000
————————————————————————————-
Note: over $55,000,000,000 of this is listed as “Investments“
The other “Capital Assets” (buildings, land, vehicles, etc.) are not considered “liquid” assets, but rather
permanent.
————————————————————————————-
The California Government also has what it refers to as “Related Organizations”, of which it does not report
fund balances in its CAFR:
From the “Notes To Financial Statements” section (Page 63):
5. Related Organizations
A related organization is an organization for which a primary government is accountable because that
government appoints a voting majority of the organization’s governing board, but for which it is not financially
accountable (in the CAFR).
“Chapter 854 of the Statutes of 1996 created an Independent System Operator, a state-chartered, nonprofit
market institution. The Independent System Operator provides centralized control of the statewide electrical
transmission grid to ensure the efficient use and reliable operation of the transmission system. The
Independent System Operator is governed by a five-member board, the members of which are appointed by
the Governor and confirmed by the Senate. The State’s accountability for this institution does not extend
beyond making the initial oversight board appointments. Because the primary government is not financially
accountable for the Independent System Operator, the financial information of this institution is not included
in the financial statements of this report.”
Independent System Operator – Total Assets (as of Feb, 2012) = $875,764,000
Source (CAFR) – http://www.caiso.com/Documents/MonthlyFinancialReport-MAR2012.pdf
Main Website – http://www.caiso.com/Pages/default.aspx
.California Earthquake Authority (CEA), “a legally separate organization, offers earthquake insurance for
California homeowners, renters, condominium owners, and mobile home owners. A three-member board of
state-elected officials governs the CEA. The State’s accountability for this institution does not extend beyond
making the appointments. Because the primary government is not financially accountable for the CEA, the
financial information of this institution is not included in the financial statements of this report.”
“The CEA is the largest earthquake insurer in California, with over 65% of the residential earthquake insurance
market; CEA participating insurers are responsible for almost 80% of California’s residential property
insurance.”
“The CEA ended 2010 with 811,317 policies-in-force, which represents a 1.38% increase in policy count
compared to year-end 2009.”
“In accordance with California Insurance Code sec. 10089.13, subdivision (b), the California Earthquake
Authority reports its finances as of December 31, 2010:
Cash on hand – $96,456,862
Stocks or bonds – $4,176,584,412
Premiums receivable – $49,595,737
Assessments receivable – $3,190,830
Interest receivable – $12,350,634
Deferred participating-insurer commissions and operating costs – $40,674,396
Other assets – $1,742,495
————————————————————————————-
CEA – TOTAL AVAILABLE CAPITAL (after liabilities) = $3,753,367,495
————————————————————————————-
Source – CAE CAFR –
http://www.earthquakeauthority.com/UserFiles/File/Publications%20&%20Brochures/Annual%20Report%20t
o%20the%20Legislature%20-%20Reporting%20Year%202010-FINAL.pdf
Main Website – http://www.earthquakeauthority.com/CEAIndex.aspx
Bay Area Toll Authority (BATA), “which is not part of the State’s reporting entity, was created by the
California Legislature in 1997 to administer a portion of the toll revenues collected from the San Francisco Bay
Area’s seven state-owned toll bridges and to have program oversight related to certain bridge construction
projects. In 2005, the California Legislature transferred toll-bridge administration responsibility from the
California Department of Transportation (Caltrans) to BATA. This responsibility includes consolidation of all
toll-bridge revenue under BATA’s administration. BATA is a blended component unit of the Metropolitan
Transportation Commission.”
Balance Sheet for BATA Governmental Funds (June 30, 2008):
General Fund – $44,583,169
AB 664 Net Toll Revenue Reserve Fund – $42,902,139
STA Fund – $123,393,759
Capital Projects Funds – $11,376,935
Nonmajor Governmental Funds – $141,229,755
Proprietary (Enterprise) Funds (Page 25):
Bay Area Toll Authority Fund – $-2,225,847,394
Note: The deficit in this fund is due to transfers out and into other funds of over $930,000,000, as well as
grants to CalTrans and other agencies of over $130,000,000 – Remember the example of spending more than
you are apportioned each year to show creatively that you are at a deficit?
Service Authority For Freeways And Expressways Fund – $22,991,569
Agency Funds Total (Page 31) – $78,458,845
Nonmajor Funds:
Transit Reserves Fund – $378,485
Rail Reserves Fund – $84,611,153
Exchange Fund – $6,676,355
BART Exchange Fund – $47,549,245
Feeder Bus Fund - $48,509
————————————————————————————-
BATA – TOTAL FUND BALANCES (Page 45) = $3,175,070,238
————————————————————————————-
Source CAFR - http://www.mtc.ca.gov/library/AnnualReport-08/MTC_AR_2008-pages/index.html
Main Website – http://bata.mtc.ca.gov/
Back to the California State CAFR, Notes to Financial Statements, Page 64:
B. Government-wide and Fund Financial Statements
Government-wide financial statements (the Statement of Net Assets and the Statement of Activities) give
information on all the nonfiduciary activities of the primary government and its component units. The primary
government is reported separately from legally separate component units for which the State is financially
accountable. Within the primary government, the State’s governmental activities, which are normally
supported by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for support. The effect of interfund activity has been
removed from the statements, with the exception of amounts between governmental and business-type
activities, which are presented as internal balances and transfers.
Pension Funds are a special case. It is very important for the reader to understand that the world-wide
pension system (including Social Security and Medicare funds) is the government’s main tool to funnel
massive amounts of taxpayer money into these investment funds schemes. This is taxpayer money being
contributed (given) to these pension funds with no benefit to the majority of the taxpayers in the State (only
benefits State employees), and these taxpayer contributions are added on top of what these actual state
employees contribute. The employees themselves have no equity in the taxpayer portion of contributions that
are given over to the pension funds, and is the property of the government fund – NOT THE EMPLOYEES!!!
According to the chart on page 234 of the California State CAFR, the contributions to these pension funds
were as follows:
Total Contributions To All Pension Systems – $18,723,324,000
Contributions from Employees (Members) – $6,699,601,000
Contributions from Employers (Taxpayers) – $12,023,723,000
Remember that the so-called budget deficit that was quoted by the Governor for 2012 was only $15.7 billion,
revised from $9.2 billion.
And yet here are the taxpayers being forced by law to contribute to this pension investment scheme with no
benefit whatsoever to the non-state employed taxpayers.
This means that the 37,691,912 people who lived in California as of July 1, 2011 paid over $12 billion to
support only State employees by allowing the California Government to give their taxpayer funded money to
the pension fund system. This does not include federal, county, and local contributions of taxpayer money to
those other pension systems.
(Page 83) – Schedule of Investments – Fiduciary Funds, as of June 30, 2011
Investment Type Fair Value
Equity securities …………………………. $199,780,401,000
Debt securities* …………………………… $91,576,952,000
Mutual funds ……………………………… $10,200,315,000
Real estate …………………………………. $38,232,098,000
Inflation linked …………………………… $8,126,757,000
Insurance contracts ……………………… $1,591,300,000
Private equity …………………………….. $57,537,268,000
Securities lending collateral ………….. $45,620,619,000
Other………………………………………….. $3,822,956,000
……………………………………………………………………………………………………….
Total investments ……………………. $456,488,666,000
………………………………………………………………………………………………………..
But perhaps the hardest thing to contemplate about this Pension System scheme is this (Page 235)…
After all benefits were paid to the employees of these pension funds, the fund’s investment return grew by an
astonishing $67,974,593,000 in one year, compared to the 2010 CAFR.
This means that while the governor of California is declaring a deficit over the entire state budget of $15
billion, the State’s pension fund investment schemes in total gained over $67 billion for the same year!
And the Governor says: (que evil laugh) Let’s cut taxpayer services or I’ll cut even MORE funding to schools!!!
NOTE 10: LONG-TERM OBLIGATIONS (Page 107)
“As of June 30, 2011, the primary government had long-term obligations totaling $163.9 billion. Of that
amount, $5.8 billion is due within one year.”
So all it would take to get California out of debt would be $163,900,000,000 ???
That’s it?
You better believe it!!!
But there is one big problem… Government likes debt. Debt is profitable. And so government is in a
continuous cycle of borrowing and bonding money… FROM ITSELF!!! One government or fund will loan to
another. Government funds makes loans and creates corporate bonds to banks and corporations. The whole
shell game is about creating and sustaining debt to ensure future taxation for more investment opportunities
in the future. The thought of paying off all debt would be like asking pharmaceutical companies to develop a
cure for disease… It ain’t going to happen!!! They’d be out of business if they cured the thing they treat the
symptoms of… and so too would a majority government bureaucracy be redundant and unnecessary if
government did not promote perpetual debt.
So let’s add up what we’ve found here today, and see if California could pay off its debt tomorrow and never
have to issue a taxpayer bond ever again…
From the CAFR above, we had:
TOTAL IN SPECIAL REVENUE FUNDS = $20,648,388,000
TOTAL IN DEBT SERVICE FUNDS = $484,712,000
TOTAL IN CAPITAL PROJECTS FUNDS = $1,589,456,000
TOTAL IN BUILDING AUTHORITY FUNDS = $86,174,000
TOTAL IN INTERNAL SERVICE FUNDS = $574,355,000
TOTAL IN ENTERPRISE FUNDS = $3,612,964,000
TOTAL IN PRIVATE PURPOSE TRUST FUNDS = $4,625,181,000
TOTAL IN AGENCY FUNDS = $18,444,563,000
TOTAL IN NONMAJOR COMPONENT UNITS = $2,874,358,000
TOTAL IN MAJOR GOVT FUNDS = $7,888,786,000
TOTAL IN PROPRIETARY FUNDS = $-2,806,744,000 (deficit)
TOTAL IN MAJOR COMPONENT UNIT FUNDS = $91,319,843,000
Of this is listed as “Investments” = $55,000,000,000
INDEPENDENT SYSTEM OPERATOR (as of Feb, 2012) = $875,764,000
CEA – TOTAL AVAILABLE CAPITAL (after liabilities) = $3,753,367,495
BATA – TOTAL FUND BALANCES = $3,175,070,238
TOTAL PENSION TRUST FUND INVESTMENTS = $456,488,666,000
————————————————————————————————————
TOTAL FOR ALL INVESTMENT FUNDS = $577,315,060,000 (approx)
And so now you know… the Government is lying to you.
It promotes debt and hides assets.
This should not be construed as the only hidden wealth in the California State government… just the wealth
we have uncovered today.
And you must understand that this is only the State government’s CAFR. Each County, city, district, and other
local governments and pension funds have their own CAFR’s with their own funds and hidden wealth – hidden
in plain sight. Totals for Los Angeles, San Francisco, and other counties and municipalities in California will,
when combined together, dwarf the investment wealth of the State government alone.
They will tell you that some of these investments are restricted and not able to be used for taxpayer services.
And as a taxpayer, that should really piss you off!
They will also tell you that laws are in place that don’t allow these funds to be transferred for other purposes
other than what they are designated for. And yet Obama and State legislators continuously speak of raiding
the pension funds for their own benefit. In their opinion, it’s government’s money after all, not the employees
or the taxpayers. But of course it is the law-makers that are telling you this nonsense. Law-makers… Get it?
They make the laws. They can break them too, or create better ones that would pay off all debt and
significantly lower taxes and downsize government tomorrow.
But then, the people would actually have to force this to happen…
Are there any real people out there?
Sometimes I wonder…
For a deep explanation of the Pension Fund System, watch this:
http://www.youtube.com/watch?v=fhkWueEjewM&feature=player_embedded
Other websites for CAFR info:
CAFR1.com
TaxRetirement.com
TheCorporationNation.com
RealityBloger.wordpress.com
CAFRMAN.com
.–Clint Richardson (realitybloger.wordpress.com)
http://realitybloger.wordpress.com/2012/05/25/california-government-hides-billions-from-taxpayers/
---------------------------------------------------------------------------------------------------------
More about understanding the history of CAFR’s:
CAFR - AMAZING INFORMATION THAT IS
HIDDEN IN PLAIN SIGHT!
The information on this page is absolutely astounding. We can only hope that you realize how important it is, and that
you give it the attention that it deserves.
Since shortly after World War II, numerous governments (Federal, States, Counties, Cities, School Districts, etc.) have
taken our tax dollars and invested them in a wide variety of different investments. They have managed to keep the
general population completely unaware of these ENORMOUS investments.
Every American citizen needs to understand that the government holds TRILLIONS OF DOLLARS of stock in Fortune 500
and other corporations, as well as additional investments in foreign companies, foreign currencies and many, many
other investments.
THE IMPLICATIONS OF THIS INFORMATION IS ENORMOUS!
CLICK HERE FOR JUST ONE EXAMPLE (FLORIDA)
CLICK HERE FOR ANOTHER - THE PIE CHART IS INTERACTIVE
When government officials discuss their yearly "budgets", most people blindly believe that the "budget" information
reflects the entire financial situation. NOTHING could be further from the truth. It usually comes as an incredible
shock to nearly everyone when they learn that there is a totally different set of "books" that are a far more complete
accounting of the money held by these government agencies.
This information has been hidden in plain sight, in documents that are known as Comprehensive Annual Financial
Reports (CAFRs). The primary difference between a budget and a CAFR is that a budget is an accounting for just one
fiscal period (often one year). The "budgets" only show how tax income has been spent. A CAFR gives a much more
detailed account of long term, ongoing investments.
Thousands of Federal, State, County, City and other government entities have been hiding ENORMOUS investments
that are never publicly discussed. The amount of money involved is ASTOUNDING! These governments are NOT
bankrupt. These governments only appear to be running yearly "deficits" because they refuse to discuss the
absolutely enormous amounts of money that they control in the form of investments that total TRILLIONS OF
DOLLARS.
As citizens, we initially funded all of these investments through various taxes and fees. Now, TRILLIONS of dollars are
being controlled by the powers that be, while they continually complain about "budget" deficits and insist upon
either raising taxes or reducing services and benefits.
Two Sets of Books
Outside of public awareness, every state, county and major metropolitan city is keeping two sets of books. One set
("The Budget") is commonly available and tracks each government's tax revenue and expenditures. The budget is the
financial record that the public is encouraged to focus on and it is used by politicians to justify new governmental
services and higher taxes.
However, there is a second set of books (called the Comprehensive Annual Financial Report, or CAFR) which is
virtually unknown to the public because it contains the real record of total governmental income. Although the
yearly budget gives an accurate account of government costs, only the CAFR gives an accurate account of
government's ongoing investment assets.
For example, while a particular state budget might report receiving $20 billion in taxes (just barely enough to cover its
$20 billion in costs) - the CAFR might reveal the state's real income is in the neighborhood of $40 billion - twice as
much as reported on the budget. The state could stop charging all the taxes that the citizens are forced to pay
and give every citizen a huge tax rebate, or it could decide to double the amount of government services, or it could
decide on some combination or reduced taxes and increased services.
How could any governmental entity dare to routinely overcharge its citizens by 200%, under-report its income by half,
and knowingly press for higher taxes based on an incomplete presentation of the budget? Worse, how could such a
fraudulent system become widespread among all states, counties, cities and the Federal Government?
The implications are mind-boggling. The CAFR's reveal that the world is so different from what we are led to believe,
so much more corrupt than suspected, that we are left with a number of choices, either;
• Government agrees to end the deception and stop overtaxing us
• Government agrees to use its existing investments to provide additional benefits
• The American people agree to accept their status as slaves
• Both sides refuse to agree and precipitate a shooting revolution
What is voting, REALLY??
Have you ever wondered why people spend huge amounts of money to be elected mayor, school board member,
county commissioner, governor, or president? The answer is simple - They gain access to the control of absolutely
ENORMOUS funds that are the true source of political power!
Every citizen must educate themselves regarding the ENORMOUS WEALTH that is held (in trust) by their city, school
system, county, state and country.
When you vote for a mayor, city manager, school board member, county commissioner, governor or president, what
are you really doing? Well, there are many facets to those "jobs", but one of the basic functions of these elected
officials is to act as a trustee, who will be trusted to skillfully manage the holdings of the city, school district, county,
state or country.
It is within the power of every American citizen to perform a simple "litmus" test in order to hold every candidate for
public office accountable for their actions after they enter office.
NO - DO NOT DO THIS: Candidates should not be permitted to talk about their plans for the "budget".
YES - DO THIS: Every candidate MUST be aggressively questioned about how they plan to handle the accumulated
FUNDS that are controlled by the government.
Walter Burien Exposes the CAFR Secret
Mr. Walter Burien is the first person who is known to have raised this issue publicly. Mr. Burien first discovered the
CAFR report in New Jersey in 1990, when he helped start and incorporated a New Jersey tax protest group called
"Hands Across New Jersey." While involved with that group, Mr. Burien read in the state's Annual Budget that the
total cost of all public services was $17 billion and the "net available" (the money on hand to pay all bills) was $24.6
billion. But then he asked the first question the IRS asks in any audit: "What are the gross receipts?" He added the
figures from various state government sources and came up with about $44 billion and began to wonder how the
state could have $17 billion in costs, $24.6 billion in cash on hand, and $44 billion annual income? The numbers didn't
add up, so he began to dig deeper.
Because his father had been Personnel Manager for the State Treasury for four years, Mr. Burien understood how to
get information from the various government departments. The state Director of the Budget was on vacation, so Mr.
Burien called one of his lowest level assistants and said, "I'm working on a report for Richard [the vacationing Budget
Director] and I need all the figures on the autonomous agency accounts, interest accounts, investment accounts." The
assistant said, "Oh, you want the CAFR." This was the first time Burien had heard of the CAFR but he said, "Yes" and
the assistant mailed it to him.
The 1989 CAFR showed that New Jersey had liquid investment funds (cash) of $188 billion of which included; common
stocks worth $70 billion, $10 billion in loans made by the state due from public and private corporations, and $14
billion in insurance company equity participation. The little state of New Jersey, which admitted to less than $25
billion in annual income on its budget, reported $188 billion in cash, stocks, loans and equity participation on its
CAFR. According to Mr. Burien, "On that day, I learned the definition of syndicated organized crime."
Keep in mind that most of the revenue and investments from the 21 counties, hundreds of cities, municipalities,
school districts, state financial authorities, pension funds, and 69 enterprise authorities, all of which put out their own
CAFR or Combined Financial Statement are not inclusive with the state's revenue and investments. The totals here,
when looking at composite New Jersey government figures, are well in excess of 1.8 Trillion dollars. Yep, you heard
that right, 1.8 trillion. Divide that figure by the population of New Jersey to see the per capita share of the wealth.
So why are the taxes in New Jersey some of the highest in the country? The answered is; Power corrupts, absolute
Power corrupts absolutely. The public left the VAULT door open, and those sharp government officials said thank you
very much.
The scam worked something like this: Anything that was a cost or expense for public services (the traditional side of
the Annual Service Budget, such as the Department of Transportation, health and welfare, etc.) was reported on the
Budget where public taxes primarily paid 100% of the bill for those services. That was $17 billion.
However, any governmental agency that was a profit center (the Port Authority for New Jersey, the New Jersey
Turnpike, and investment accounts, etc.) that generated no tax revenue was "restricted by statute from being
reported in and benefiting the Annual Budget. Why? Because the state legislature passed laws to prevent reporting
the income from investment or venture profit centers on the Budget. Instead, income from these profit centers was
disclosed only on the CAFR or other financial reports referenced in the notes of the CAFR.
But that disclosure was not immediately apparent. For example, when Mr. Burien looked for New Jersey's 1989 "gross
cash receipts" in the CAFR, he found the figure buried on page 174, under the "Waste Water Treatment Trust Fund." It
showed the amount of the total cash receipts (Cash Additions) for 1989 from all state agencies, departments and
sources was $86.799 billion. In other words, New Jersey State Government from all sources was grossing $87 billion to
provide $17 billion in public services as seen in the openly represented Annual Service Budget. New Jersey citizens
were paying $5 for every $1 in services they received, and the state was pocketing the other $4 as "profit."
When breaking down the true revenue income, the most important revelation was that only one third of the states'
income came from taxes, fines and fees. Two thirds of state governments' income came from Other Sources with no
direct tie to the publicly known budget. When looking at the openly disclosed Budget , which each year continued to
grow at a runaway pace, here ever expanding taxation primarily covered the expenses.
The CAFR also reported the state owned $32 billion in common stocks - but this figure was footnoted. The footnote
revealed that the stocks were valued according to their original purchase price, not the current market value. In other
words, if the state bought a stock in 1968 at $1.25 a share and it's worth $300 a share now, they still report it on the
CAFR as being worth $1.25 a share. Burien determined that the true market value for the "$32 billion" in stocks
reported on the New Jersey CAFR was actually about $70 billion.
But Mr. Burien goes further - he claims that the dual system of books is not unique to New Jersey, but also common
among the over 54,000 local government corporate entities operating within all fifty states. Moreover, he claims the
dual accounting system used ten years ago in New Jersey was created in 1946 through an organization by the name
of GFOA (Government Financial Officers Association) and is the primary local government accounting structure being
used today.
For example, "In 1987, Arizona's annual service budget reported $2.8 billion in revenues but the state's 1987 CAFR
reported total cash receipts of $3.1 billion, a mere $300 million difference."
"However, in 1997, Arizona reported an Annual Service Budget of $5.5 billion while the States CAFR (printed by the
Auditor General's Office) showed total gross cash receipts of $17 billion. That's a difference of over $11 billion. In just
ten years, Arizona had caught up to New Jersey in that both states annual budgets reported less than one third of the
actual gross income seen in the states CAFRs.
"CAFR and Combined Financial Statement reports indicate that the composite totals for all government (Federal,
state, county and city) ownership of publicly traded stocks exceeds $32 TRILLION (53% of the total ownership of all
listed stocks from ALL exchanges), $8 TRILLION in insurance company equity (should we be surprised by high priced
mandatory auto insurance or unaffordable health care?) and $5 TRILLION in Bond Surety Escrow Accounts for future
liability of existing or potential debt.
Governments use Bond Surety Escrow Accounts to evade that pesky little rule that government should not operate at
a "profit." That is, government should not impose more taxes than it actually uses to run the government. By
designating tax revenue that exceeds operating costs as "Bond Surety Escrow" for future liability, government avoids
calling excess revenue a "profit" and is thereby enabled to continue to enrich itself at public expense.
To illustrate the potential for abusing "future liability payments," consider the New Jersey plan in the 1950s to build
the New Jersey State Turnpike and Garden State Parkway Authorities. The state asked voters to approve a $7.5 billion
bond to construct the turnpikes. The state explained that these turnpikes would be operated as toll roads by the
bondholders until the $7.5 billion bond was paid off - but the bondholders could not operate the toll roads at a profit.
Once the bonds were repaid, the turnpikes would revert back into the state's Annual Budget as a normal
cost/revenue item. The public voted Yes.
Over the following years, the state sometimes alleged that the toll revenue from operating those turnpikes failed to
cover their operating expenses, and so additional bonds were passed to fund the turnpikes. As a result, in 1990, the
total bond liability still owed for the turnpike had grown to $14.5 billion. But guess how much was in the Bond Surety
Escrow Accounts ? $38 Billion! Enough to repay the original $7.5 billion bonds almost four times!
How could that happen? Say the toll road made a $400 million profit for the year and the scheduled payment on the
$7.5 billion bond was $100 million. The state made the $100 million payment but kept the extra $300 million in a
Bond Surety Escrow Account which generated substantial annual dividend returns for future liability payments.
Although they kept the $300 million, they did not declare it as an asset but wrote it off as a line item payment. In
other years, even though they made a profit, they alleged that they lost money and therefore floated more billions in
bonds. (Guess who pays?)
The bottom line is that New Jersey and other local government entities are collecting hundreds of billions of virtually
unreported dollars from "Other" operations. The motivating factor is not public welfare, but control of those billions.
This issue ENORMOUS
Mr. Burien not only alleges that the dual accounting system exemplified by CAFR is not only used by all fifty
states, but also by all counties, cities and the Federal Government itself. These financial manipulations
comprise the most damning indictment of big government yet seen. Our government is, in fact, a criminal
enterprise bent on oppressing Americans by extorting several times as much tax revenue as it spends on
public services and using the majority of those extorted revenues to enrich, empower and enlarge
government at public expense.
The inner circle of the individuals controlling the top wealth of this structure have the attitude toward the
public of: keep the public running on the treadmill, so that just enough revenue is supplied to keep the
economy running at optimum efficiency, while the top inner circle skims off 80% of the energy produced by
the people on the treadmill.
The general public has been kept ignorant concerning CAFR by the complicity of the mainstream media.
When Mr. Burien first discovered the CAFR reports in New Jersey in 1989, he went on radio 101.5 FM in a
live 45 minute interview. Two days later, that radio station was threatened with losing its license and was
almost shut down. CAFR had become another example of - "third rail journalism" - any reporter or media
outlet that touched the issue would be silenced or driven from journalism. As a result, there's been a total
mainstream media blackout on disclosing CAFR reports. For over twenty five years the directors and CEOs of
the primary syndicated media organizations both print and broadcast, were sent state CAFR reports each
and every year, as they maintained a blackout towards the simple mentioning of the report.
Mr. Burien reports the discovery of the fact that New Jersey State Judges are vested in a personal
retirement guarantee of $5,000,000.00, per judge after they serve as a judge for one year. Federal district
court judges do not have a retirement or pension plan due to the fact that they were appointed for life.
Being appointed for life, they receive their full paycheck and benefits for life. Do you need anyone to spell it
out for you? Would a New Jersey State or Federal District Judge allow an attack on the squirreled away
billions of dollars and jeopardize their financial windfall? The inner circle gets the gold!!
Later, Burien learned that the New Jersey official in charge of discrediting his CAFR discoveries was a former
reporter (Harvey Fisher) who had been appointed Assistant State Treasurer - even though he had no former
financial background. Burien investigated his background and learned that as a reporter, Fisher had made
$35,000 a year. But as Assistant State Treasurer he made $65,000 a year - plus a Carte Blanche expense
account of $125,000.
Burien claims this was not an aberration: "I knew there was a state data search department under the
Department of Treasure Personnel division which tied all agencies and departments together. I called that
department and asked for a data search on all key level directorships and supervisory positions for all
budgetary or autonomous agencies, and they came up with some 3,400 names from several
administrations. Almost 1800 of these Directors were former editors or reporters! It is a virtual certainty
that many of these appointments were payoffs for the journalists previous "cooperation" in spinning or
silencing stories to suit government.
If you conduct a comparable search in other states, you may find a similar symbiotic relationship between
government, editors, and reporters. The more money held and generated by an agency, the higher the
percentage will be. If so, the media's "liberal, pro-government bias" may run much deeper than anyone has
imagined, and the military-industrial complex" described by President Eisenhower in the 1950's may have
been complemented by a "media-bureaucracy-banker complex" in the 1990s.
Mr. Burien started disclosing this information on a national basis on June 8th 1998. In 1999, GFOA and
GASB (Government Accounting Standards Board) changed the accounting requirements for local
governments within the Combined Financial Columns of the CAFR from: all revenue, income and
investments being shown that were necessary to meet obligations and liabilities of that local government.
This change in accounting is substantial. You may need to read the notes of the CAFR very carefully in order
to find the hidden money.
www.helppeoplenow.com/hidden-in-plain-sight.html
CAFR School: What Is A Commingled Fund ?
Uploaded by TheCorporationNation on Oct 8, 2011
A CAFR rant for the Occupy Wall Street crowd!
Visit: www.TheCorporationNation.com
I'd like to introduce you to the $64 billion and $23 billion dollar "mutual
funds" in California, called Commingled funds. These funds are in all states,
with federal U.S. CODE creating them through the state treasurer, and are usually called the Public or State
Treasurer's Investment Fund.
Even as California claims to be broke, these funds are growing strong... making hundreds of millions or
billions of dollars in investment returns.
-Clint Richardson-
Watch the video: http://www.youtube.com/playlist?list=PLDB052A7C4196F91A
Part 2 of “The Corporation Nation” is now available!
The Great Pension Fund Hoax!
Watch it on YouTube: http://www.youtube.com/watch?v=fhkWueEjewM
This 4 hour presentation is part 2 of the Corporation Nation series. While a
shorter, condensed version will be released soon, The Great Pension Fund
Hoax is presented as documentary evidence of corruption and greed
within our government and as a reference work.
This is not for entertainment.
Understanding this information about the Comprehensive Annual Financial Report (CAFR) system of
accounting in government will answer the question that has eluded you for so long, just as it did me...
Why?
Why do corporations get away with murder? Why does government allow this to happen by passing laws and
regulations, and deregulating the very framework that these corporations operate within, both nationally and
internationally? Why are We, the People suffering at the hands of this oligarchical government, while our
taxpayer dollars are being used against us? And why does there seem to be no difference between the private
sector and the public one?
Answer: Because government owns it all!!!
Note... I am mad as heck that after hours of self-editing, and two full days to process this final version, I had
one misspelling at the worst possible spot. Please don't tear me apart for this, it is of no benefit to anyone.
Please learn... and comment for the benefit of the people.
Announcement!!! The Corporation Nation is now available for purchase (non-profit) at “The One Dollar DVD
Project” – available for $2 plus shipping. http://onedollardvdproject.com/
And now you can learn to interpret a CAFR!
Clint Richardson explains in detail, how to read Comprehensive Annual Financial Reports (CAFR’s).
Are we being deceived about the real state of America’s economy? Is it all smoke and mirrors? Are
we also being conditioned by the media that we must cut or even give up our public employee
retirement pensions? And, even our government jobs?
If the public was really informed of the real bookkeeping practices of the local governments, we
could ask questions and demand answers. But, we don’t even know CAFR’s exist.
Here is an example:
CAFR SCHOOL: Schools and Lottery
(RIM of the World Unified School District Expose)
Uploaded by GnosticMedia on Dec 15, 2011
This is an advanced lesson in government corruption - in
legal, organized crime.
Covered here are the CAFR's for the "Rim of the World"
school district in San Bernardino County, and for the
California State Lottery.
Watch the video: www.youtube.com/user/GnosticMedia#p/a/u/3/XddjM_efnmk
Download the CAFR from the district's website here so that you may follow along.
http://rimsd.schoolfusion.us/modules/groups/homepagefiles/cms/493705/File/Board%20of%20Education/Regular%20Meetings/Ja
nuary%2020,%202011%20Agenda.PDF?sessionid=ac4d74e41
With this information, anyone should be able to read their own school district CAFR which
will be similar in its structure according to generally accepted government accounting
practices.
LINKS (as mentioned in the presentation):
CAFR SCHOOL Commingled Funds -
http://www.youtube.com/watch?v=XIl5QJqX2Lo
MAYOR OF SALT LAKE ADMITS TO CAFR #1 -
http://www.youtube.com/watch?v=ve2WFZYo1KY&feature=player_embedded
MAYOR OF SALT LAKE ADMITS TO CAFR #2 -
http://www.youtube.com/watch?v=D4WbhvD-0no&feature=related
THE CORPORATION NATION - Master (2010) - Full Length
http://www.youtube.com/watch?v=QkfMuvVuETQ&feature=player_embedded
THE GREAT PENSION FUND HOAX -
http://www.youtube.com/watch?v=fhkWueEjewM
SPECIAL TAX DISTRICTS (THE SHERIFF WHO SOLD HIS COUNTY) -
http://www.youtube.com/watch?v=6_-XMTauRsA
CAFR SCHOOL What is Wall Street? -
http://www.youtube.com/watch?v=2__ZsQSQirc
THE ONLY GAME IN TOWN -
http://realitybloger.wordpress.com/2011/11/01/walter-burien-the-only-game-in-...
--- Articles on my blog:
CAFR SCHOOL #1 - Wisconsin State CAFR -
http://realitybloger.wordpress.com/2011/03/01/wisconsins-real-financial-situa...
CAFR SCHOOL #2 - City CAFR's -
http://realitybloger.wordpress.com/2011/03/03/cafr-school-a-lesson-in-financi...
CAFR SCHOOL #3 - Minnesota State CAFR -
http://realitybloger.wordpress.com/2011/03/03/cafr-school-a-lesson-in-financi...
THE SENATE: HOW MUCH DOES IT COST? -
http://realitybloger.wordpress.com/2011/04/04/the-senate-how-much-does-it-cost/
THE UNITED STATES: A CORPORATION -
http://realitybloger.wordpress.com/2010/12/18/the-united-states-a-corporation/
Also visit Walter Burien at: CAFR1.COM
-Clint Richardson- clint4p.com
The Corporation Nation
From: TheCorporationNation | Nov 8, 2010
The Corporation Nation is the United
States of America, U.S. Incorporated.
The United States is comprised of over 185,000 incorporated
state, county, city, town, municipality, district, councils,
school district, pension fund, enterprise operation, lottery,
alcohol monopoly, and many other private and for-profit
corporations, which have mistakenly been called our
"representative government".
The hidden wealth and investment totals for all of these
"collective" 185,000 corporations (governments), when added
together, equate to well over 100 trillion dollars, over 26
trillion in just pension fund investment assets.
A trillion dollars is a million, million.
With these investments, the government owns controlling
ownership interest in all Fortune 500 companies, most major domestic and international companies, and
most of everything you see around you. Malls, mini-malls, strip-malls, golf courses, movie theaters, etc...
Federal lands include about 87% of all state land, 97% of Utah land, 95% of Nevada, etc...
This is all easily verifiable by looking at the general accounting system of government, as required by federal
law, called the Comprehensive Annual Financial Report, or CAFR.
"The Corporation Nation" documentary proves all of this without a shadow of a doubt.
It is free, it will never be for sale, and needs to be seen by all Americans.
Within this documentary is the government’s own admission of corporate governance and fascism. It will
not only astound you, but it will also answer just about every question you ever had with regards to the
question of why...
...why is every law and every bill passed in the legislature unconstitutional?
...why has the government deregulated all industries and allowed monopolies and corporate tyranny?
...why can banks charge as much interest as they want, despite state laws against usury?
...why was the "Obama-Care" health care bill passed, and who really profits from it?
...why is our infrastructure and land being sold off to private and foreign corporations?
All of these questions will be stunningly clear once you have watched this movie. And with the information
you will now possess, you will never again be left to wonder why anything happens in government...
Because you will see firsthand that government owns the corporations that it regulates through stock
investment.
Government votes for each corporation's board of directors.
Government votes on whether each company should merge with or acquire other corporations.
Government is the corporations, by controlling stock ownership.
Please watch The Corporation Nation, pass it on, download the film, make copies, and pass them out to
everyone you can. For this is the only issue any of us should be focused on...
For this is the root of corporate fascism in America.
-Clint Richardson-
The Corporation Nation
Watch the video www.youtube.com/watch?playnext=1&index=0&feature=&v=yX8UhqyHKZk&list=PL6D032AA2E55759C1
Download your own copy of Corporation Nation free: http://thecorporationnation.com/
Get a DVD for $2: www.onedollardvdproject.com. Give them to friends and family.
------------------------------------------------------------------------------
CAFR School: What Is Wall Street?
Watch the video: http://www.youtube.com/watch?feature=player_embedded&v=2__ZsQSQirc
What is the stock market? The answer might surprise you...
This is the surprise ending to The Corporation Nation Episode 3 - so important that it needs to be shared.
Well... Wall Street is just a street, which passes by a series of private, publicly traded corporations which
collectively make up the worlds "stock market" and mercantile markets.
So in essence, if you are protesting... you are doing nothing more than occupying a street, as the men and
women working for this private corporate structure are peaking out and laughing at your ignorance. The
truth hurts a bit!
Occupy Government!!! For government owns the stock market.
REALITY BLOG
“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed.
Third, it is accepted as being self-evident.”
Arthur Schopenhauer (1788 – 1860)
Well folks, it’s that time of year again.
I decided to take a look at the newer 2011 Comprehensive Annual Financial Report (CAFR) for the
Social Security Trust Funds – which is actually named:
"THE 2011 ANNUAL REPORT OF THE BOARD OF TRUSTEES OF THE FEDERAL OLD-AGE AND
SURVIVORS INSURANCE AND FEDERAL DISABILITY INSURANCE TRUST FUNDS"
You may download this CAFR here: www.ssa.gov/OACT/TR/2011/
Yes… for those of you who don’t know, the Social Security program has a massive investment trust
fund that hoards your hard earned money into it every single year, and uses that money to invest in
such things as war and occupation of other countries, junk bonds and federal securities – including
mortgage-backed securities – and of course national and international banks and investments.
Remember, the main function of government’s taxation program is not to support government
operations, but rather to increase the fund balances of governmental funds in order to create and
support a massive investment based pool, which is then used for all of the non-taxpayer legal criminal
activities that government participates in – what it deems as “non-governmental operations” using
what it likes to consider “non-taxpayer money” derived from these investments and their returns. You
see, your corporate government figures that any gains it is able to collect from investing your
taxpayer money is there’s to keep and play around with at its leisure.
Of course, the Federal government continues to tell the people of America that the Social Security
system is in financial ruin, and will be broke by the time many of us come-a-collectin’ in just a couple
of decades. They tell us that the evil baby-boomers will strip Social Security bare, and drain the entire
program into oblivion.
But I’m here to tell you that this just isn’t true. In fact, it is one of the biggest fallacies ever
perpetrated upon the American public. It is a lie hidden in plain sight, just as most government
programs and funds have turned out to be.
And so, according to the 2011 CAFR for the Board of Trustees of the Social Security System, the Social
Security Trust Funds have a combined total of…
$2.6 trillion dollars
W-W-What? You heard that right, my friends. Spelled out with all of those pesky zeros in
place, that looks like this…
Total assets, December 31, 2010
$2,608,950,000,000
If that were to be displayed in 1 dollar bills, it would be a pile of green notes that, when stacked on top of each
other, would reach all the way to the moon… and back!!!
For those of you who didn’t see the ending of “The Great Pension Fund Hoax”, we discovered that the Social
Security trust funds had over $2.5 trillion dollars in the 2009 CAFR. In 2006, that figure was $1.8 trillion. That
was an investment return of about $700 billion dollars in just 5 short years.
See the full film here, or skip ahead to the last half hour to see this information:
www.youtube.com/watch?v=fhkWueEjewM
Now, as is usually the case, the government omits this knowledge from its public disclosure of the Social
insurance system by simply omitting the pertinent investment portfolio and interest gains from the taxpayer
budget report that is spirited out to the public. And it does not mention the word CAFR in any session of
government or in any public forum. You will not hear about this report on the nightly news. In short, by hiding
this information from taxpayer disclosure, the government is lying by omission. And this sort of malfeasance is
taking place in every facet of local, county, state, and federal government.
Now, let’s take a look at what Timothy Geithner and the other Trustees of the Social Security Trust Funds have
to say to the public about the state of these funds…
Status of the Social Security and Medicare Programs
A SUMMARY OF THE 2011 ANNUAL REPORTS
Social Security and Medicare Boards of Trustees
A MESSAGE TO THE PUBLIC:
Each year the Trustees of the Social Security and Medicare trust funds report on the current and projected
financial status of the two programs. This message summarizes our 2011 Annual Reports.
Social Security
This deficit is expected to shrink to about Social Security expenditures exceeded the program’s non-interest
income in 2010 for the first time since 1983. The $49 billion deficit last year (excluding interest income) and
$46 billion projected deficit in 2011 are in large part due to the weakened economy and to downward income
adjustments that correct for excess payroll tax revenue credited to the trust funds $20 billion for years 2012-
2014 as the economy strengthens.
After 2014, cash deficits are expected to grow rapidly as the number of beneficiaries continues to grow at a
substantially faster rate than the number of covered workers. Through 2022, the annual cash deficits will be
made up by redeeming trust fund assets from the General Fund of the Treasury. Because these redemptions
will be less than interest earnings, trust fund balances will continue to grow. After 2022, trust fund assets will
be redeemed in amounts that exceed interest earnings until trust fund reserves are exhausted in 2036, one
year earlier than was projected last year. Thereafter, tax income would be sufficient to pay only about three-
quarters of scheduled benefits through 2085.
Source: http://www.ssa.gov/OACT/TRSUM/index.html
-----------------------------------------------------------------------------
Well now, wait a darn minute here! Didn’t the CAFR just state that the Social Security system had a $90
billion dollar increase in capital gains? How then can this budget report state with a straight face that the
fund suffered a $46 billion dollar loss?
Ah… this is government’s creative accounting.
But let’s go one step further.
Back to the Comprehensive Annual Financial Report, where it shows on page 36:
Actuarial Estimates
Table IV.A1. – Operations of the OASI Trust Fund, Calendar Years 2006-2020
1) Best case scenario – The fund will increase to $4.054 trillion dollars by 2020, which equals an investment
gain of about $1.4 trillion dollars in just 8 years.
2) Intermediate scenario – The Fund will increase to $3.671 trillion dollars by 2020, which equals an
investment gain of about $1 trillion dollars in just 8 years.
3) Worse case scenario – The fund will increase to $3.278 trillion dollars by 2020, which equals an investment
gain of about $600 billion dollars in just 8 years.
So here the Board of Trustees is telling us in the CAFR (audit) of these funds that they will no doubt increase
by at least many hundreds of billions of dollars, while at the same time publicly announcing that the Social
Security system is showing a current and a future projected deficit of $46 billion dollars for 2011 fiscal year.
And that, ladies and gentlemen, is the perfect embodiment of how your many governments, be it local, state,
or federal, are literally fooling you by the simple act of omission of the pertinent information held within the
government audit (the CAFR report) and spoon-feeding the American public a heaping dose of fear-based half-
truths sprinkled with a splash of treason, and finished off with a good laugh all the way to the banks (which
government owns as majority stock holder of those banks).
And we the people keep feeding the monkeys instead of starving them!
Oh, I’m sorry… Did I interrupt re-runs of “Dancing with the Stars”?.
–Clint Richardson (realitybloger.wordpress.com)
–Friday, January 27th, 2012
http://realitybloger.wordpress.com/2012/01/27/social-security-trust-fund-tops-2-6-trillion/
http://thinkprogress.org/economy/2012/06/14/499820/iceland-mortgage-foregiveness/?mobile=nc
CA CAFR: $600 billion ‘pension investment’
fund nets just $1 billion
Carl_Herman@post.harvard.edu
California's 2011 Comprehensive Annual Financial Report (CAFR) shows a tax surplus of $600 billion dollars in
cash and investments. The online public report on page 83 lists $460 billion of investments claimed to help
fund state pensions. Pages 234-235 show these investments had $10 billion income, and cost $3 billion in
expense (Wall Street investors). Page 107 shows $6 billion interest cost for the state’s $164 billion debt.
Therefore state investment income minus debt interest cost equals ~$1 billion. This means the state retains
$600 billion in taxpayer assets for $1 billion in income.
If California paid its debt and returned these assets, each of California’s 12 million households would receive
$35,000, and pay a $83 tax to equal the $1 billion income of the state’s previous $600 billion fund. Or if we
had universal health care, Californians would annually save between $10 and $30 billion.
With increasing state debt, California’s CAFRs net investment income for the last four years has a nominal
average of negative 0.2%, if we assume the various fund/cash accounts is 26% of investments as is the total
for the ~80 different accounts for 2011. Net nominal returns for the last ten years averaged just 1%.
This data of “investment” income refute any rational claim that retaining hundreds of billions of taxpayer
assets is necessary or even helpful for funding state pensions.
Even-more astounding is $8 trillion in total surplus taxes from sampled data of California’s various ~14,000
government entities’ CAFRs (for example, page 63 of L.A. County’s 2011 CAFR shows $66 billion in cash and
investments).
$8 trillion returned to each household equals ~$650,000. Of course, these colossal investments should be
considered by multiple and independent cost-benefit analyses to discover our options; we can’t simply all cash
them in. Ellen Brown’s work for state-owned banks document other options.
The people of California don’t know about the existence of CAFR-revealed funds because both parties’
“leadership” and corporate media are silent.
It’s not the job of government to lord over public riches in silence.
It’s the Orwellian opposite of public service to be silent about riches, and claim the public must lose essential
infrastructure because the public doesn’t have the money. Governor Brown saying a $16 billion budget deficit
with "no option" than austerity is similar to claiming no money in a checking account to pay for our children's
schools, but having 35 times that amount in savings.
In fact, such intentional deception by officials with fiduciary responsibility for comprehensively accurate public
financial information seems an “emperor has no clothes” obvious criminal fraud in the literal magnitude of
trillions of dollars.
So what’s a solution? As I wrote:
These tragic-comic cover-ups of what the public has the right to know, and that state has legal fiduciary
responsibility to clearly communicate for public consideration also include California’s policy option to issue its
own credit, and the national policy option to issue money (not credit/debt) to directly pay for public goods
and services.
And what does this mean?
A future of credit and money brighter than you imagined possible:
If California had a state-owned bank optimized for public benefit, a possible structure to pay our entire state
tax burden would be 2% mortgages. This interest charge, as homeowners understand from typical 30-year
mortgages, is significant money; it could be a public benefit rather than the privilege of our “too big to fail”
bailed-out banks (more public banking information here).
Public banks could provide at-cost credit to cover any budget shortfalls from year-to-year, and eliminates the
need for overtaxation “rainy day funds” in these thousands of government accounts. These facts at the state
level in California are repeated by the two main political parties’ “leadership” in all states (explore here).
At the national level, we could create debt-free money rather than allow the private banking system’s pinnacle
bank, The Federal Reserve, lend to us. Here are three simple points to explain:
1. The US does not have a money supply; we have its Orwellian opposite as a debt supply. This is because
the US leading banks won legal right through passage of the 1913 Federal Reserve Act to have private
banks and the Fed create debt for what we use as money, charge the 99% for its use, and then redefine
“inflation” to hide its inevitable consequence.
2. The policy choice of a debt supply compounded with interest causes ever-increasing aggregate debt
that can never be repaid. It can’t be repaid because this is what we use for money. The US national
debt now pushing $16 trillion has a gross annual interest payment over $400 billion a year; ~$4,000 per
US family of $50,000 annual income (if your household earns $100,000, then your gross annual interest
payment is ~$8,000 every year).
3. Monetary reform creates debt-free money that extinguishes national debt (details here), and allows
government to become employer of last resort for infrastructure investment (hard and soft). This
creates full-employment, optimal infrastructure, and falling prices because infrastructure historically
creates more value to the economy than cost.
4. The Claremont Colleges held a conference to explore monetary and credit reform last month, for which
I was one of the presenters. For those who want to review the papers and filmed talks meant for the
general public to understand as clearly as I hope I’ve written here, explore this link.
And for even better news, consider resource-based economics as a predictable future beyond monetary and
credit reform.
Finally, you might wonder about the six US corporate media giants with literally massive investment in these
government investments funds buying their stock, and their prima facie conflict of interest to report what
you’re reading here. It’s not as if these are new ideas; Benjamin Franklin is among America’s brightest minds
who wrote on credit and monetary reform.
http://www.examiner.com/article/ca-cafr-600-billion-pension-investment-fund-nets-just-1-billion
CA debt much larger than reported
May 29, 2012
By Katy Grimes
Reports of California’s debt usually just include the $17 billion budget deficit. But California also owes the
federal government $14 billion, and public schools $10 billion.
While California sputters under the massive debt, legislators continue to take up ridiculous bills and
resolutions, and ignore bills which would begin necessary reforms.
Last week the Assembly voted to adopt Assembly Resolution 99 recognizing September 2012 as National
Coupon Month. ACR 99 by Assemblyman Felipe Fuentes, D-Sylmar, “would acknowledge the value of coupons
in achieving significant savings for California consumers.”
Legislative time has actually been spent on this baffling resolution. The Assembly Rules
Committee, notorious for killing Republican bills by refusing to act on them, had a
committee staff member prepare an analysis of ACR 99, and committee members
voted 6-4 to pass the Resolution.
It is now in the hands of the Senate Rules Committee where it will undoubtedly go through a similar process.
While this trivial resolution sailed through the Assembly, many good-government Republican bills sit stuck in
the Rules Committee, or are unceremoniously killed once they make it to the Assembly Appropriations
Committee, led by Fuentes.
Good bill
Assemblyman Brian Nestande, R-Palm Desert, has re-introduced ACA 13, a constitutional amendment to give
the State Controller the authority to approve the budget. “California has a natural collusion between the
Governor and the Legislature,” said Nestande. “This would be like having an independent third party approve
the budget, but it’s the State Controller.”
ACA 13 would prohibit the Legislature from sending to the Governor a Budget Bill in which General Fund
appropriations exceeded General Fund revenues as determined by the Controller.
Nestande said he originally introduced ACA 13 in 2009, to prevent legislators from passing an unbalanced
budget each year just so they can collect their full paychecks. “This measure would require the controller to
review estimated revenues and expenditures, and certify that a budget passed by the Legislature is balanced
before it can be signed by the governor,” Nestande said.
Nestande said that having the controller certify that the budget is balanced would force the Legislature to
produce a legitimate budget, and not just call it balanced.
Interestingly, Texas has done this successfully since 1942.
Nestande said brought this system up again during session last year, but Controller John Chiang shot the idea
down saying it would require more staff.
Ironically, last year the Legislature sent the governor its budget $1.85 billion out of balance. It was Chiang who
pointed this out and the governor vetoed it.
Good bill stuck in committee
Nestande’s bill would also prohibit either house of the Legislature from adjourning for a recess after sending a
budget to the Governor, until the Controller has provided the certification.
But ACA 13 sits in the Assembly Budget Committee with no hearing scheduled. It is highly unlikely that ACA 13
will ever see the light of day.
Nestande said that when voters passed Proposition 25 only two years ago, they thought they were voting on a
measure which would require lawmakers to pass an on-time, honest budget by June 15 every year, as a
condition of receiving their salaries.
But a recent Superior Court decision stated that Prop 25 actually only said that a majority of legislators could
decide whether the budget they passed was balanced, in order to continue to receive their paychecks, even if
that budget was bogus.
Included in Prop 25 was the “no budget, no pay” provision, added in by Democrats to convince voters to
approve giving the majority party complete control over the budget process. But this sneaky provision had no
teeth. There was no enforcement mechanism in Prop 25 to hold legislators accountable if they passed a phony
budget, and is why the Superior Court ruled the way it did.
Nestande said that ACA 13 would provide the budget process voters thought they were approving.
California has a $17 billion deficit, owes the federal government $14 billion, and owes the California public
school system $10 billion.
ACA 13 would also stop the Legislature from deferring education funding to California’s schools.
Proposition 98 was passed in 1988 requiring a minimum of 40 percent of California’s general fund spending to
be spent on education. In 2001, California lawmakers started shorting education funding in order to “balance”
the state budget. But the money has to be paid back, and has quickly added up to $10 billion.
ACA 13 will force the Legislature and Governor to account for state funding shortfalls honestly, so that school
officials will have a better picture of the actual level of funding their schools will be receiving. Nestande said
that if cuts are made to education, it should be done openly and not masked by accounting mechanisms.
Comments
1. Beelzebub says:
May 29, 2012 at 10:16 am
Here is some great information from a blogger who says that the State of California is hiding ALOT ($577B) of
cash assets that are OFF THE PUBLIC BALANCE SHEET in ‘non-governmental accounts’(so to speak) and that
the State is MUCH richer than it claims to be. He says Gov Clown knows about these extra funds and is lying
about it – to politically extort the voters to approve the tax measure on the November ballot.
The government (both State and Federal) are superb manipulators and deceivers who excel in keeping the
public in the dark. This is proof positive that they do not work for us – On the contrary they work against us.
It would be good for CWD to investigate these claims and do a separate blog. It should be easy to verify.
http://realitybloger.wordpress.com/2012/05/25/california-government-hides-billions-from-taxpayers/
2. Wayne Lusvardi says:
May 29, 2012 at 10:51 am
One needs to be very careful in interpreting data from California Certified Annual Financial Report (CAFR)
On page 48 of the 2011 CAFR it shows huge assets in the Fiduciary Fund but also huge liabilities – mainly in
pension funds. It shows for example $409,623,766,000 (that’s $409.6 billion) in net assets in the Pension Trust
– but the crucial question is is this sufficient to meet future pension obligations? The CAFR cannot tell you
that.
It also shows $2,398,872,000 ($2.398 billion) in the Local Agency Investment Trust – that fund is where cities
and counties park their budget reserves monies. It is not available to fix the state budget. It is available in case
of emergency to cities and counties because it is their money.
It does show that as of 2011 the State had $4,625,181,000 ($4.6 billion) parked in cash and pooled
investments. But that would have been “on budget” – not “off budget.”
The total number of $577 billion is meaningless unless liabilities are also included.
If you know a good accountant ask them to take a look at it for you and interpret it.
Link: http://www.sco.ca.gov/Files-ARD/CAFR/cafr11web.pdf
Thank you Ms. Grimes for yet another revealing report.
3. Beelzebub says:
May 29, 2012 at 11:01 am
“It also shows $2,398,872,000 ($2.398 billion) in the Local Agency Investment Trust – that fund is where cities
and counties park their budget reserves monies. It is not available to fix the state budget. It is available in case
of emergency to cities and counties because it is their money”
What the hell does it matter what it is intended for, Wayne??? You should know better than that.
Did you hear that $3M has been raided from the 911 California license fee to be used to cover deficit
problems??? That money was supposed to be intended to compensate victims of 911. Read this:
http://www.dailymail.co.uk/news/article-2151620/California-9-11-license-plate-fund-raided-government-pay-debt.html
You know darned well that this State has an AWFUL reputation for stealing money from one so-called
‘sacrosanct fund’ to fill financial holes in the general or other funds. Sactown gets called out on that crap all
the time.
Are you an accountant, Wayne??? Have you examined the CAFR with a fine toothed comb or had an honest
accountant familiar with government gimmick accounting tactics do the same??
Or do you just believe whatever you’re told???
4. Beelzebub says:
May 29, 2012 at 11:27 am
My point is that it is VERY possible that Gov Clown is catastrophizing to scare people into voting for his tax
measure – even knowing that the State has EXTRA FUNDS HELD OFF THE PUBLIC BALANCE SHEETS that could
more than cover the deficit amount. The tricks and games these scoundrels use – ESPECIALLY WHEN IT COMES
TO GOVERNMENT FINANCIAL ACCOUNTING – is overwhelming and one would have to be a fraud detection
accountant to find it.
8. CalWatchdog says:
May 29, 2012 at 8:16 pm
Because there is no more money, California residents and businesses are going to be taxed on carbon
emissions. And, the businesses that can will pass along their costs. Expect everything to go up in cost –
utilities, all food and groceries, services – everything we purchase. Forget inflation, which we are already
experiencing, despite government denials. Living in California is about to skyrocket in costs.
Katy
9. Beelzebub says:
May 29, 2012 at 8:58 pm
That’s where you people and I differ.
I think there is hidden money. And I think this is all a ruse to scare people into voting for the tax measures.
The hidden money is being used to backstop the pension system. The rascals constantly play government
accounting games to hide what they don’t want YOU, the public, to see.
You think they are being transparent with our money??? Haven’t they lied to you enough yet to convince you
otherwise??? Wake up.
10. Beelzebub says:
May 29, 2012 at 11:29 pm
See, you don’t give these corrupted governments enough credit. They will leave YOU high and dry, but they
won’t screw themselves. I compare them to a henpecked husband who routinely turns his weekly earnings
over to his brazen and domineering wife. After awhile he learns to figure out a way to withhold $25 or so for
beer and cigarettes or whatever brings him pleasure. He cooks the books. Governments are MASTERS at
cooking the books. There will ALWAYS be sufficient funds available to save themselves. Even if all hell breaks
loose they will come up with the money to save the pensions and all those things their club members hold
dear. The more I examine this situation the more I believe it. The keep a large stash on the side to service their
needs while letting YOU twist in the wind. I believe my theory will become more evident to you as time
marches on. Keep your eyes wide open.
Debra says:
May 31, 2012 at 8:13 pm
I agree with Beetzebub. The CAFR’s have been around for more than 65 years and it is very suspicious that they have
never been mentioned on mainstream media and our elected officials always point us toward the budget, or their
spending plan. Of course, the state has a “savings account” where all the wealth of the government is tracked and that is
in the CAFR reports.
You can read a great explanation here: http://www.helppeoplenow.com/hidden-in-plain-sight.html
and here is another good one from Clint Richardson:
THE GREAT PENSION FUND HOAX – Corporation Nation 2
Watch the video: http://www.youtube.com/watch?v=fhkWueEjewM
We might as well face it, the new world order is in charge and those we elect are just their puppets. The international
banksters really run the finances of the world and I’m sure they have been dipping into the CAFRs over the years. The
rest of the time they steal from the taxpayers by inflation, deflation, interest on the money they create, and booms and
busts they also create.
If the public had any idea how evil these bankers were, there would be a revolution before morning!
From Clint Richardson says:
May 31, 2012 at 9:35 pm
I contacted Clint Richardson who is an expert on CAFRs and is the “blogger” referred to by Beelzebub. Here is what he
said:
The main thing to understand is that these fund balances were what was in those funds on that particular day of the
report.
The “liabilities” are in general future liabilities that will be paid at some time in the future. They have nothing to do with
and do not affect the balances as reported on this day.
They do not tell you that future taxes and future assets will pay for those future liabilities, nor do they report these
future assets on the CAFR. You don’t report future taxpayer money for 2012, so why report future liabilities for 2012?
Answer: to creatively hide the wealth.
The debt and any current and future liabilities can be paid off right now. End of story. No debate needed. It’s right
there in black and white.
You can post that for me if you want!
-Clint-
http://www.calwatchdog.com/2012/05/29/ca-debt-much-larger-than-reported/comment-page-1/#comment-21908
Watch: Psywar -- The Real Battlefield is the Mind:
www.youtube.com/watch?v=NXg70qJQ6O0
California parks department finds
$54-million surplus
Director of California's parks system resigns amid revelation of surplus at a time
when many parks had recently been threatened with closure because of budget
woes.
Copyright © 2012, Los Angeles Times
Ruth Coleman resigned as director of California state parks after the department's surplus funds came to light.
(Rich Pedroncelli / Associated Press / May 13, 2011)
By Chris Megerian and Patrick McGreevy, Los Angeles Times
July 20, 2012, 5:43 p.m.
SACRAMENTO — California's parks system stashed away nearly $54 million even as it was cutting services and
threatening to close parks, a revelation that prompted the resignation of the department's director Friday.
The hoarded cash remained untapped while the California Department of Parks and Recreation painted a dire
picture of the system's health, soliciting hundreds of thousands of dollars in donations in what was thought to
be a desperate scramble to keep facilities open.
At the request of Gov. Jerry Brown, the state attorney general's office has launched an investigation into the
hidden surplus, which officials believe the department concealed from state bookkeepers, the governor and
the Legislature for at least a dozen years, dating to the tenure of Gray Davis. The governor also ordered a
comprehensive audit of the parks system's accounting practices and management.
"This is undeniably disappointing news," said Secretary John Laird of the California Natural Resources Agency,
which oversees the department.
It was unclear whether mismanagement or deliberate deceit led to the concealment of the funds.
State auditors found the extra money in two funds, one intended to finance the purchase and upkeep of
properties for off-road vehicle recreation, the other for general park maintenance and restoration. The money
came from user fees, rentals and fines.
Laird said state officials have not determined why the money was underreported, nor which official would
have been responsible for the accounting discrepancy.
The director who resigned, Ruth Coleman, had been in the job since 2002, making her the longest-serving
head of the parks system. In her letter of resignation to the governor Friday, Coleman said she had been
unaware of the extra money and was "personally appalled to learn that our documents were not accurate."
Her second in command, acting Chief Deputy Michael Harris, was removed from his post.
Janelle Beland, the No. 2 official at the California Natural Resources Agency, will replace Coleman as interim
director. She has been directed to report to the governor and Laird on further measures the state should take
"to ensure that the department is being managed with honesty, accountability and transparency," said a
statement from the resources agency.
"It's devastating," said Caryl Hart, chairwoman of the state Parks Commission. "I feel like a victim."
Hart, also director of the Sonoma County Regional Parks Department, said officials there are shelving plans for
a ballot measure to increase the county sales tax to help pay for parks.
"I don't see how at this moment in time, with this kind of black cloud hanging over the parks, we can ask
taxpayers to support a tax measure," Hart said.
News of the surplus rocked the Capitol on Friday and prompted the governor's budget office to launch a
review of all dedicated funds across state government, to assess whether poor accounting is more
widespread.
A lack of oversight contributed to the problem. Administration officials said the parks department was sending
inaccurate information to the governor's budget office and accurate information to the state controller, who
monitors cash flow. Those two sets of data were never reconciled.
"That's changing," said Michael Cohen, a deputy in Brown's Department of Finance. "We will be altering our
protocols."
State Sen. Noreen Evans (D-Santa Rosa) and other parks advocates reacted angrily, and leaders of both houses
vowed to hold oversight hearings when the Legislature reconvenes next month.
"If one department can hoard $54 million for 12 years, who else is playing the same tricks of deceit and
thievery?" Evans said in a statement.
The state planned to close 70 parks this month to save $22 million, less than half the amount of the
department's hidden surplus. Almost all of the parks were kept open because of partnerships with other
agencies, private donors and nonprofit groups. Laird said in a conference call with reporters that lawmakers
will ultimately decide how to appropriate the surplus.
"It disgusts me," said Myra Hilliard, who donated and helped raise money for the Pio Pico State Historic Park in
Whittier. "Is anybody honest about anything anymore? Here we are working so hard to keep the park open
and they have all this money they aren't telling us about."
Hilliard said elementary school students held a bake sale to raise $120 after being told the park might close.
The park costs $80,000 a year to keep open.
Laird expressed regret about such donors. "I'm deeply disappointed and feel truly sorry for everyone who was
involved without this being known," he said. But he could not say whether any of them will be repaid. "We're
going to cross that bridge when we get to it," he said.
Laird said the accounting problem, first reported by the Sacramento Bee, was found by a newly installed
deputy director at the parks department, who was brought in earlier this year to examine finances.
Elizabeth Goldstein, president of the California State Parks Foundation, called Friday's news "truly disturbing
and appalling."
"This is a time when our organization and the entire parks community has been working really hard to keep
parks open," she said. "People inside the department have not been honest about the resources that have
been available to them."
She cautioned, however, that the parks system has an endemic budget problem: State funding has declined in
recent years, and $1.3 billion in maintenance work has gone undone.
The surplus "doesn't prevent the crisis that is currently underway; it may help minimize it," Goldstein said.
"This money will not solve the overall parks crisis that has been building for decades."
The news, however, was seized upon by anti-tax activists campaigning for spending cuts. The revelation also
threatens to complicate the effort by the governor and leading Democrats to persuade voters to approve
billions of dollars in tax hikes in November.
"It's outrageous," said Kris Vosburgh, executive director of the Howard Jarvis Taxpayers Assn. "For voters, it's
just one more straw on top of the straw that already broke the camel's back."
He predicted the controversy will cause more voters to oppose the tax initiative.
"If bureaucrats see they can squirrel money away and hide it so it appears they don't have enough money and
they can get more, they will do that," Vosburgh said. "I think the people are angry. They are tired of being
asked for more."
chris.megerian@latimes.com; patrick.mcgreevy@latimes.com
Comments
Carl Herman at 1:26 PM July 21, 2012
How much more is hidden? Easy: California's Comprehensive Annual Financial Report (CAFR) for 2011 shows
$577 BILLION in taxpayer surpluses when the accounts are added. Search this Internet article title for full
documentation and page numbers to see for yourself: CAFR summary: why can't a $600B ‘fund’ fund $27B
pension, $16B budget deficit?
Walter Burien is the pioneer to expose CAFR surpluses and Clint Richardson did the work to fully document
the $577 billion.
WalterBurien at 8:59 AM July 21, 2012
First Domino to fall:
It appears someone did a little digging into the CA State CAFR report.
Now it is time to turn the same rocks over for all cities; county; state; enterprise; school district; and state
university accounts.
For the CA State Parks it was 54-million. All local government operations (tens of thousands of operations) it is
a few trillion.
The department head resigned and the assistant fired. What gondolas were intentionally ignored? The state
attorney who dotted the "Is" and crossed the "Ts" setting up the hidden funding account for them in the first
place (Emphasis added)
Every one of these stash accounts is signed off on by the city; county; of state attorney.. The true fraud begins
there, and usually the same is checked off on by a local judge. (Again, emphasis added.) Attorneys running the
show, the employee(s) following their instructions but then the employee getting the axe as the scape goat...
Per these types of situations: If "true" accountability came to play: Black robes and their cooperative suited
shill attorneys should be forced dressed into orange jump suits, and locked in an eight by ten cell for a very
long time...
Have your local sheriff investigate and arrest the true responsible party for the fraud involved. The attorneys
and judges who structured and then signed off on it all.
WalterBurien at 9:28 AM July 21, 2012
Look carefully at the notes to the financial section of your local government CAFRs to spot those millions or
billions of dollars in advance forward liability investment stash accounts.
The way to use Google to find your local government's CAFR reports, put in the search line using quotes as an
example: "City of X" "Annual Financial Report".
Do the same for your county, city, state, school district, state university, etc..
Here is a VERY important note for you. When you look at the financial columns it is a "Net" showing. Many
games can be played there. For examples sake I will use the following:
If you and I had $1-billion dollars. If we set aside 700-million to buy an island 5-years from now (designated
liability) our NET available is $300-million. If we then ran up projected expenses for the year of $320-million,
then our net position "promoted today" is $20-million in the red (deficit)
On the City; County; and State level more money changes hands than Midas ever dreamed about. The public
gets masterfully entertained in left field as the attorneys cut the deals behind closed doors in right field
building their next financial power base and personal fortunes at the public's expense.
Get together with a few friends and carefully examine your local government's CAFRs today! You will be
amazed (and furious) at what you find of how a profit is converted into a liability.
PortTabacco at 2:08 PM July 21, 2012
Amazing! Walter Burien is one of my hero's!
I have noticed that in California while claiming poverty these local governments always seem to have the
funds to finance the most elaborate government buildings I have ever seen in my life!
There is always loads of money for these projects!
Canary in the coal mine at 2:23 PM July 21, 2012
This $54 million is only the tip of the iceberg. As Gov. Brown makes excuses to cut state employee's pay, he
has funds stashed in California's CAFR accounts estimated by Carl Herman to be $600 billion. That amount
would certainly balance our budget. Cutting the salary of state employees is UN-necessary and a pittance
compared to the money the governor, (and all previous governors) has at his fingertips.
As the propaganda flows through the mainstream news channels and you are living in their false reality of
happy news anchors, remember they have been hiding these CAFRs from you. They have existed for more
than 65 years, hidden from the public's view and never mentioned on any TV show, on radio shows or in
newspapers. The global elite own it all and control what you get to see. The yearly CAFR reports are posted in
plain sight on the State Controller's website, but did you know they exist? Google: Clint Richardson or go to
realityblogger.wordpress.com. From Clint you can learn to decipher this for yourself!
The time is now to get involved. Try to understand this information and start asking questions of our elected
officials! It’s not too late to balance the budget, hire back out public safety officers if they will just quit lying to
us! Also, thanks to Walter Burien at CAFR1 dot com for his tireless efforts to let the public know!
Martininsocal at 10:50 PM July 20, 2012
Here are some facts the public doesn't know about- The OHV Fund was taken over by environmental groups
years ago due to the appointment process. The Board is made up of appointees picked by the Governor and
the leaders of the State House and Senate. The board has been stacked with anti-environmentalists who have
been using the OHV fund to buy land and turn it into nature preserves, wildlife preserves, etc... Where Off
Hiway Vehicles are not allowed. They have been using the fund to reduce or end OHV recreation on public
lands for over a decade under the shield that they are promoting OHV recreation.
Because the fund is paid for through OHV vehicle registration and gas taxes, it pays for itself, but since the
environmentalists don't want to expand OHV recreation opportunities, the money was notbeing spent on
opening up these opportunities, so it started to amass in the OHV account. They then figured out that if the
money was shown as building, the Governor and the legislature would take money from the fund for general
fund purposes, thus eliminating their special fund to buy private property and convert it to public land with no
OHV access. So, they hid it from the Governor's office so he wouldn't know it was there. There are other
examples of this scam with other agencies money out there.
WalterBurien at 4:47 AM July 22, 2012
For those who have a sharp mind and the ability for cognitive thinking to learn quickly, a retired federal
auditor of 30-years, Gerald Klatt at my prompt in 2000 put up a website to show CAFR reviews that highlighted
government surpluses.
From his front page http://CAFRMan.com on the left he has listed CAFR reviews of most States. His reviews
stop at 2003 being that he died mysteriously in July of 2004. The reviews are valid today being that they are a
line-item guide that can be used for 2012.
Gerald points out "true" surpluses and for CA on the State level notes 59.83-billion dollars.
http://cafrman.com/Articles/Art-CA-S1.htm
A false misconception has been floating around the internet that CA on the State level has 600-billion in
surplus taxation held. This is NOT true. Yes they have in excess of 600-billion of investments but a truthful
independent audit of the same could determine what was true surplus and what was truly needed to fund
needed programs / projects.
My estimate is that 30% to 40% is strictly, and would be determined as "Fat Cat Stashes".
It is very important to note: "This is just on the State level". Local government operations "in" California
(thousands of entities) each have their own holdings separate from the state.
Collectively totals there are in excess of 8-trillion dollars. A complete and "honest" audit there is needed.
WJB-CAFR1
buckre at 10:45 AM July 24, 2012
Just one more reason why I'll be voting no on any tax increases. If one department can tuck away $54 million
dollars without anyone knowing about it, you would be a fool to believe it is the only one doing so. The fact
that this happened is a perfect example of how our State just throws money around without any sort of
accountability.
91mustang at 7:28 AM July 24, 2012
Tip of the iceburg. Comprehensive Annual Financial Reports, research Walter Burien, watch the Foster
Gamble (Procter&Gmble) vid. at http://cafr1.com/ Two sets of books, all 54,000 government entities, goes
back to 1947,big mafia operation, lots of folks need to go to jail, not just resign or get fired, these people are
all traitors and big time criminals. Wake up folks and do your homework, this 54 million is chump change,
audit every city, town, school district, etc., start with Calif. and then expand to every other state as all 54,000
have the same set of 2nd (and sometimes a 3rd) set of books, mass arrests are necessary here, NOW. Get off
your posterior and get involved, it is (was) your money, they stole it from you, your parents and probably your
grandparents! Unbelievable corruption and the only people who go to jail are you and me, all our 'leaders'
seem to have been immune..at least up until now. Time to straighten this out. Both parties are involved,
different sides of the same coin, they are ALL criminals in 3 piece suits.
republidemotarian at 4:40 PM July 23, 2012
We now have a state agency misrepresenting their books to a state legislature who habitually misrepresents
their books to the People of California. This is what forty years of Democratic Party rule has done to our state.
Governor Brown fearmongers and threatens us with cuts to education if we don't agree to his tax proposal
because he is too lazy and incompetent to manage his own party in the state legislature.
Just another great reason to vote NO ON PROP 30!
Corrupt-O-Crats at 6:13 PM July 23, 2012
I remember there was such an outrage when Enorn, Tyco, Aldephia were busted doing the exact same thing.
So what's changed ??? Why aren't the supporters of the democrats showing the same emotions/rage ????
Some here have even tries to blame the republicans...
latimes2000 at 11:49 AM July 22, 2012
Whoops! While Jerry Brown is trying to shut down state parks to "save money", he signs
Democratic legislation to build a train that will cost every person in this state $5300.
So how much other money is being stashed?
WalterBurien at 7:34 AM July 22, 2012
Clint Richardson does a pretty good job of listing just on the California "state level" the different primary
investment funds as of 2012 - http://realitybloger.wordpress.com/2012/05/25/california-government-hides-
billions-from-taxpayers
Allison Hunt at 12:32 AM July 22, 2012
It's not just MoonBeam Jerry. Texas has trillions.
Allison Hunt at 12:17 AM July 22, 2012
It's just a form of graft. Follow the money. Somebody has been making huge fees by managing that $54
million account. Somebody in government gave that private money manager his job. There are your two
thieves.
sandworm105 at 9:59 PM July 21, 2012
I am very happy to hear about the resignation of california dept of parks and recreation director Ruth
Coleman, I thought it was odd that they spent more than $40,000 in litigation costs fighting the nudists that
use san onofre trail 6 beach when they were supposedly going broke.
http://www.ocregister.com/articles/complaints-221364-kramer-nudity.html
Now they need to finish cleaning house and get rid of the rest of those Corrupt Puppets of Fascism (ie; Rich
Hayden, Ken Kramer, Roy stearns, Mike storey and more) what comes around goes around!!!
JJMcCall at 8:29 AM July 22, 2012
Don't forget Mary Nichols of CARB, and her newly created DELAWARE Corporation to avoid CA's "open
meeting" laws!
JJMcCall at 9:24 AM July 22, 2012
More on Mary Nichols (CARB) & Sacramento's complicity to subvert CA's "Open Meeting" from
http://www.capoliticalreview.com/top-stories/new-law-exempts-cap-and-trade-from-open-meetings/
"On the afternoon the state budget was signed into law last Wednesday I received an email from a local
activist informing me that hidden in a trailer bill titled SB 1018 was a provision exempting the upcoming cap
and trade auction from open meeting rules.
CARB formed a company called WESTERN CLIMATE INITIATIVE Inc (WCI), to manage its upcoming cap and
trade auction. This shadowy corporation, registered in DELAWARE, will be responsible for imposing billions
in hidden energy taxes on California ratepayers and small businesses without public scrutiny or
accountability.
SB 1018 was a “gut and amend” bill, with over 100 pages inserted the day before the bill was signed into
law along with the state budget. This legislation did not go through one committee hearing and most
legislators probably never had a chance to read it. But buried in this bill in Section 12894(b)(2) is a line
exempting WCI from a critical provision of the California Constitution, known as the Bagley-Keene Act,
which provides meetings be open to public scrutiny.
Small business owners and citizen energy consumers care about protecting the environment, but CARB
continually behaves as if it has something to hide."
latimes2000 at 11:51 AM July 22, 2012
JJMcCall, I'm saving your post. Unfortunately, it does not surprise me that CARB is engaged in more
underhanded deeds. The phoney CO2 study by the guy with the fake degree wasn't enough.
I have to ask, what does CARB do with the $0.6 BILLION it spends every year that the EPA doesn't do?
Nothing, but pad their own bank accounts.
WalterBurien at 6:19 PM July 21, 2012
No excuses not to look:
To view and review the California State Comprehensive Annual Financial Reports from 1999 to 2011 go to:
http://www.sco.ca.gov/ard_state_cafr.html
To review your local government City; County; School District; enterprise; Community College; State
University; or Government Pension fund CAFR just Google them. Put in the search line using quotes as an
example for a city: "City of X" "Annual Financial Report"
JJMcCall at 3:00 PM July 21, 2012
Too bad no such audit will be performed on CARB, the CA Air Resources Board. That CO2 cap'n'trade-
responsible STATE organization just created a Delaware Corporation to meet on and implement cap'n'trade
revenue policy without "open meeting" oversight, as required by CA state law. The Delaware Corporation
implementing CA policy is shielded from open meetings by a law just passed 27JUN12 as a rider to the budget,
which Gov Brown signed. This little state sanctioned evasion will dwarf the Parks Department chicanery...the
$$$ involved is in the billion$.
Where's the uproar on that? CA's doomed to repeat the mistakes of the past!
-------------------------------------------------------------------------------------------------------------------------------------------------
Parks scandal: Incompetence or trickery?
Published 07:49 p.m., Sunday, July 22, 2012
The Wolf House Ruins at Jack London State Park in Glen Ellen, Calif., is seen on Friday, July 13th, 2012. Photo: John Storey, Special To The
Chronicle / SF
For the last few years, California parks lived under threat of the budget ax. Up to 70 sites almost were closed
to save the state $22 million in a brutal budget year, a threat that was mostly lifted. Now it turns out that the
parks system was sitting on $54 million in hidden funds.
The public energy, fundraising and pledges of help that went into preserving the campgrounds, beaches and
forests? It wasn't necessary.
Sacramento already had the money, hidden away from budget writers and the public. It's not yet clear
whether parks bureaucrats even knew about the funds.
It's a financial disaster on multiple levels. The public was deceived into thinking the parks were in dire financial
straits. State Parks Director Ruth Coleman and her top aide have departed abruptly, worsening morale
and direction.
Looking ahead, Gov. Jerry Brown's team must be worried that the scandal will dim chances for a tax-increase
measure on the November ballot, put there amid pleadings that the state desperately needs new revenue to
avoid draconian cuts.
The missing money, unearthed in an investigation by the Sacramento Bee, must be explained. The funds sat in
two accounts, $20 million in the Parks and Recreation Fund created by public fees for overnight stays, day
visits and the like, and $34 million in the Off-Highway Vehicle Fund, also paid by the public. The two sums
reportedly sat unused for more than a decade for unknown reasons, and neither figure was reported to the
state Finance Department, which tracks the dollars collected by Sacramento.
The state attorney general's office has opened an inquiry into the missing money. The millions are expected to
go back to the Legislature, which could return it for parks or other programs.
A full explanation for the financial fumbling is one thing, but Californians have a right to feel misled. Voters
have faced a string of park bond measures and a proposed vehicle fee, all designed to bail out a popular state
department depicted as short of funds. Now it turns out that such a hard-luck appeal wasn't warranted, at
least to the tune of $54 million.
Elizabeth Goldstein, director of the California State Parks Foundation, was taken entirely by surprise by the
newly discovered money. "It's terribly disheartening and pretty appalling, and I'm angry about it," she said.
She's not the only one. When Sacramento pleads poverty, voters are entitled to facts and clear numbers, with
nothing hidden. In presenting a bare-bones budget and then suggesting closures, state leaders depended on
public acceptance that the figures were accurate.
Was this debacle the result of incompetence or chicanery? Either way, restoration of the public's faith in
government's stewardship of our money won't be easy.
Comments
Carl_Herman
6:27 AM on July 26, 2012
CAFR (Comprehensive Annual Financial Report) for the state of California shows $600 BILLION in taxpayer
surplus accounts similar to these examples for $54 million. These go unreported, except for independent
journalists' reports. For documentation of the colossal CAFR funds, search this title:
CAFR summary: why can't a $600B 'fund' fund $27B pension, $16B budget deficit?
Excerpt (hyperlinks live at source):
Let's summarize what we've documented so far about the data of California's 2011 Comprehensive Annual
Financial Report (CAFR) and what it means for the state's 12 million households (22-minute television
interview of my explanation here):
Officials and corporate media never remind taxpayers, but California holds $600 billion in taxpayer cash and
investments ($50,000 non-disclosed assets per household).
California's ~14,000 various government entities' CAFRs have a sampled-data total estimate of $8 trillion in
surplus taxpayer assets ($650,000 non-disclosed assets per household). For examples, page 63 of L.A. County's
2011 CAFR shows $66 billion in cash and investments; page 58 of the City of L.A. CAFR shows $38 billion.
The state's $600 billion cash and investment fund is explained as designated for funding state pensions. The
CAFR data show the opposite: $27 billion in pension cost receives only $1 billion income from $600 billion in
withheld taxpayer assets.
Californians are taxed $19 billion to pay for pensions (95% of the public cost) while also losing $50,000 in
assets the state withholds in cash and investments.
The $600 billion fund in cash and investments contributed 4% of the state's $27 billion pension costs, but since
2008 has been "managed" to cost taxpayers more than the net income it produces, in 2011 provided over
twice the net income to its investment "managers" than to California's pensions, and the massive $68 billion
increase in "fair value" of stock ownership did not translate to significant pension funding.
Governor Brown is silent about the $600 billion in surplus cash and investments, claiming the $16 billion
budget deficit can only be addressed by austerity - massive funding cuts to our essential infrastructure ($16
billion is a 2.8% divestment of the fund).
http://www.sfgate.com/opinion/editorials/articleComments/Parks-scandal-Incompetence-or-trickery-
3726684.php?gta=commentlistpos#commentlistpos
2 Billion In California Taxpayer Money
In Special Funds
July 27, 2012 9:09 AM
SACRAMENTO, Calif. (CBS13/AP) — More than $2 billion in California taxpayer money is apparently stashed in
more than 500 special funds shielded from the Department of Finance, according to a new report.
An examination by the San Jose Mercury News of 500-plus special fund accounts, like the $54 million
discrepancy in state parks money, shows a $2.3 billion “discrepancy” between state controller and
Department of Finance numbers.
No one checks the controller’s figures so the difference wasn’t caught.
At least 17 accounts appear to have significantly more reserve cash than what was reported to the finance
department.
Gov. Jerry Brown and legislators used the lower amount when they put together the budget.
The violent crime victim restitution fund, for instance, was off by $29 million, and a low-cost child health
insurance fund was off by $30 million.
Last week, Ruth Coleman, director of the state Department of Parks and Recreation, stepped down, and chief
deputy Michael Harris was let go amid questions about underreported funds in their department.
The director of California’s state parks resigned and a deputy was fired Friday after officials learned the
department sat on nearly $54 million in surplus money for years while parks were threatened with closure
over budget cuts.
Coleman said she was unaware of the surplus but accepted responsibility for the accounting problem.
“I am personally appalled to learn that our documents were not accurate,” she wrote in her resignation letter
released by the governor’s office.
The shake-up comes at a time when state lawmakers and park advocates have been trying to find ways to
keep most parks open despite ongoing budget cuts. Last month, park officials announced most of the 70 state
parks once slated to close would remain open.
It’s not clear why the accounts weren’t properly reported.
A preliminary investigation shows the parks department underreported two funds as far back as 2000.
The state parks and recreation fund, which is generated from park fees and rentals, held $20.4 million more
than was reported. The off-highway vehicle fund, which is generated from registering ATVs and similar types
of vehicles, held $33.5 million more than reported.
(TM and © Copyright 2012 CBS Radio Inc. The Associated Press contributed to this report.)
http://sacramento.cbslocal.com/2012/07/27/2-billion-in-california-taxpayer-money-in-special-funds/
Parks Department corruption not isolated
July 27, 2012
By Katy Grimes
The recent scandal inside of the State Parks and Recreation Department is no
surprise to anyone, but the levels of corruption, schemes and deceit, is.
The agency director, Ruth Coleman, resigned. But as she resigned, she tried to
distance herself from the vacation buyout scheme, and the $54 million surplus
hidden away in two accounts. As the parks department was making cuts,
threatening to close 70 state parks, and claiming to need to make $22 million in
cuts, Coleman was accepting private donations.
I wrote about my sources at the state who say that Coleman’s fingerprints are all over the evidence, and now
we see that the agency attorney, Ann Malcolm, resigned, as did Colemen’s special assistant, Jay Walsh.
But these people are resigning–they weren’t fired. They will keep their taxpayer paid benefits, and taxpayer-
paid pensions, and probably get hired elsewhere by the state at some point.
Meanwhile, Gov. Jerry Brown is publicly playing down the scandal, glibly saying that it was the first time the
government is in trouble for saving money. “When somebody comes and says, ‘Hey, guess what, we have
some money over here,’ that’s better than saying ‘Whoops we don’t have the money.’”
Arrogance in high places
Former Assemblyman Chuck DeVore, R-Irvine, had a few run-ins of his own
with Parks Director Ruth Coleman.
During his time in the Assembly, DeVore found that there were Parks
Department employees and Fish and Game employees and volunteers
living on state property, paying no rent or nominal rent, far below fair market value.
The Bureau of State Audits was already investigating the Fish and Game employees in 2003, when DeVore
presented evidence of Parks employees doing the same.
DeVore said that he was a freshman Assemblyman when his office discovered this. He contacted Coleman and
invited her to meet with him. But DeVore said that Coleman appeared unconcerned, which DeVore attributed
to term limits. “She knew I’d be gone at some point,” DeVore explained, “and that this would probably blow
over.”
But during the investigation, the state auditor found that there were 13 state departments which own
property and had employees living rent-free and not reporting, or were underreporting this. “Additionally,
because departments charged employees rent at rates far below market value, the State may have failed
to capture as much as $8.3 million in potential rental revenue in 2003,” the report stated.
According to the state auditor’s report, the Parks and Recreation department was the biggest offender
with 487 housing units available for state employees.
If rented at fair market value, the income to the state should have been more than $4.7 million.
But the Parks and Recreation agency took in only $763,488 of actual rent charged to state employees or
volunteers, losing the state more than $4 million in revenue.
The taxable fringe benefit should have been $373,198. The unreported taxable fringe benefit amounted
to $3,641,810.
And Coleman was unconcerned with these findings, according to DeVore.
Legislating a resolution with AB 1708
Undeterred, DeVore authored a bill to address this specific problem. Democratic Assemblyman Alberto Torrico
signed on as a co-author, and AB 1708 passed through the Legislature and was signed into law.
Under AB 1708, the state would be required to charge state employees renting housing on state property on a
sliding scale, depending on location. Prior to AB 1708, departments only charged $148 a month per unit, and
did not differentiate between prime beachfront locations or inland locations. DeVore said that, at the time of
his bill, approximately 443 parks employees lived in park housing, but that the number fluctuates based on
season.
AB 1708 requires the Director of the Department of Personnel Administration to determine, by rule, the fair
and reasonable value of maintenance, living quarters, housing, lodging, board, meals, food, household
supplies, fuel, laundry, and other services furnished by the state as an employer of its employees.
But DeVore said that he is concerned that the law is not being enforced.
Investigations
There have been several calls for additional audits of the Parks and Recreation Department.
Assemblywoman Beth Gaines, R-Rocklin, called for a special audit of the agency. As members of the Budget
Committee, Gaines and Assemblyman Jim Nielsen, R-Gerber, appear to be pursuing this corruption.
The California State Parks Foundation submitted a letter to the governor and Legislature asking for an
investigation, as well. The non-profit foundation has been a partner with the state, and surely must be feeling
the sting of Director Coleman’s and the agency’s deceit.
“On behalf of the California State Parks Foundation, our 130,000 members statewide, and our 43 year history
of enhancing, protecting and advocating for California’s state parks, I cannot convey enough how deeply
shocked and dismayed we have been to learn of the irregularities that have surfaced from the Department of
Parks and Recreation (DPR) in the last several days,” Parks Foundation President Elizabeth Goldstein wrote.
“The news of the unauthorized vacation buyout program, coupled with the discovery of more than $50 million
in 12 year fund balances that should have been disclosed and directed to parks and recreation operations, has
affected our members, our partners, and the public’s trust in our state park system.”
The foundation was working with Coleman to get volunteers to help work at the parks, and asking for
donations.
HERE is the letter from the Parks foundation.
http://www.calwatchdog.com/2012/07/27/parks-dept-corruption-not-isolated/
Ending Taxation - "The Only Game in Town" 2011
The way our government can and should be. (UPDATED)
Uploaded by CAFR1 on Oct 31, 2011
Watch the video free: www.youtube.com/watch?v=bn3hUcmNDdA
The documentary "The First Cut" was uploaded to YouTube on October 31st 2011 and is essential for
viewing by every American.
This documentary will fill in the biggest piece of the puzzle that has been kept from the public intentionally,
by a control structure for over 100-years. No longer will the population be left in the dark or be "the mark"
for the controllers with the release of this video and the comprehension learned through it.
If you have an email list for AARP, financial planners, education groups, news services, member associations
of firemen - police - teachers - military - taxpayers, please send the link for all of them to view.
After viewing the please don't forget to click "like" and comment on the documentary.
Walter Burien - CAFR1.com, P. O. Box 2112, Saint Johns, AZ 85936, Tel. (928) 458-5854
Any local government can be restructured to meet their annual budget needs "without" taxes. TRF (Tax
Retirement Funds) paying for every city, county, state's annual budgetary needs! What is taxation?
ANSWER: A revenue source. What is investment income and enterprise income? ANSWER: A revenue
source. It’s time to replace one revenue source with another. Taxation is not needed; TRF today and no
taxation for tomorrow.
To automatically subscribe to CAFR1 NATIONAL posts -http://CAFR1.com/phplist/?p=subscribe
CAFR reviews and the path to ending taxation
progresses. Ready for a "real" change?
Submitted by CAFR1 on Fri, 02/03/2012 - 01:57
in
Two Counties in the US are looking at and will
be launching the TRF funding principle that
generates the revenue required to satisfy the
general purpose operating budgets within that
venue. The names of the counties will be kept
confidential until just before launch.
With the designated purpose of generating the
revenue needed to meet general purpose operating budgets, the TRF in its operation systematically
allows for elimination of taxation on the County level as well as for all cities, townships, and school
districts in the county. One revenue source (taxation) is replaced with another (return from the
TRF)as they develop and grow and thus taxation is not needed.
When the TRF launches CAFR1 will use software that will access numerous data banks to compile
all of the financial managers that now will become members of the TRFA (Tax Retirement Fund
Association). The data bank will have each managers fund performance record going back 20 years.
Any local government (Miami, FL for example) who wishes to implement the TRF fund
management principle, with a keystroke at this end the top fund managers in the Miami area are
identified, the fund management team is compiled, and their collective fund management
performance record is seen predicating their assignment.
The team will now do the audit of the local venues; implement the TRF program under specific
standardized guidelines of consolidation and growth to phase out X tax, and then X tax until all
taxation is eliminated from that venue. Personal, sales, property, and corporate.
The software will also monitor each TRF fund's performance to identify and maximize compliance
with TRF objectives and set timelines for compliance with the objectives in each specific venue at
the stroke of the keyboard.
The data processing company that gets the TRF data management contract could develop that
contract into their #1 client especially being that their is a potential for 136,000 local governments
in the US and then many more in Canada for their participation with the TRFA. Additionally
included in the monitoring is the performance of up to 150,000 fund managers that may be
involved from the US and Canada from the get-go.
I note that they, government and everyone else "will" inevitably implement TRF operations being
that it satisfies that age-old aspect of the greed and opportunity principle for all three power
groups in a "true" mutually beneficial symbiotic relationship;
The Public = no taxation and they build their wealth as the "First Line Beneficiaries" of the
investment return of the TRF through the elimination of taxation. The public now with greater
prosperity can feed that beast by their own commerce activity and benefits each and every time
they do;
Government gets their same truckloads of cash rolling in from the returns on the TRF funds and in
time more cash rolling in than what they now are getting from taxation being eliminated out of the
picture;
The financial cartels / industrial complex will have more "stable" equity for capital reinvestment
under management then they do now or ever ever dreamed about.. A win-win for all involved and
a prosperous and "stable" economy to boot for the next 1000-years. You see satisfying that ever
driving force of the greed and oppertunity principle for one-and-all makes it work and makes it
happen as far as time goes, "in the blink of an eye".
For the last 5000 years government's intent going back to the days of the Pharaohs has viewed the
population as being a productivity resource to be drained and managed. That has never been a
good thing nor will it ever be a good thing.
Under the TRF management principle the most important aspect is "it changes government's intent
towards the population". The population is no longer viewed as being a productivity resource to be
drained and managed, government's intent now transitions into wanting to see the population as
wealthy and as prosperous as possible.
You see the more wealthy and prosperous the population is, the more goods, products, and
services the population is purchasing and thus more truckloads of cash rolling into the
government's coffers from the investment return being generated from the TRFs. Again, a win-win
for all involved.
I wonder what Mr. Paul would say to the above? :<) Big ventures require strong, sincere, and
persevering minds / spirits to get the job done.
To view a basic video presentation per the above please watch the documentary The Only Game in
Town - 2012 The Only Game the public, government, and the financial / corporate sector should be
playing with that being "ending taxation.. We are talking all taxation, personal and corporate. An
economy based on cash and investment only.. taxation cut out of the equation for all time to come.
Walter J. Burien, Jr. - CAFR1.com, Saint Johns, AZ, Tel. (928) 458-5854
www.dailypaul.com/210731/cafr-reviews-and-the-path-to-ending-taxation-progresses-ready-for-a-real-change
Visit: www.larouchePAC.com
Walter Burien: CA CAFRs show $8 trillion in potential
tax surpluses, what we should do
Carl Herman
June 5, 2012
Nonpartisan Examiner
Walter Burien is the pioneer for communicating that government claimed budget deficits are criminal lies of
omission when compared with colossal tax surpluses revealed in their Comprehensive Annual Financial
Reports (CAFR).
For example, California Governor Brown claims the state budget deficit of $16 billion requires austerity,
when the state CAFR reveals $600 billion in cash and investments. The crime of economic fraud is a state
governor with fiduciary responsibility failing to clearly communicate this tax surplus over 35 times the
claimed deficit, and to submit this data for independent economic cost-benefit analyses for public
consideration of all our options.
When all California local governments’ CAFR surplus accounts are totaled, Californians have been overtaxed
by $8 trillion dollars in a sampled study of the ~14,000 government entities.
The criminal fraud expands with Governor Brown vetoing a bill that would document the state’s ability to
create at-cost credit through a state bank, and failing to communicate the success of North Dakota’s state-
owned bank producing increasing budget surpluses.
Most Americans are unaware that this is really how the “1%” play the game of power and control. My 18
years’ experience working with both parties’ “leadership” in attempt to end domestic and global poverty
proved that they will break every promise (public and private), and lie through corporate media control.
The objective and independently verifiable facts disclosed in public CAFRs require no belief, just verification
of the data. The endgame of this massive manipulation of the 1% is the 99%’s recognition that the facts
prove the 1%’s crimes, demanding their arrests, and then having good-faith public consideration how we
can best build a brighter future.
Walter explains the purpose of this “game” (slightly edited), with a proposed solution that can, and should,
be considered by independent cost-benefit analyses to fully understand our options (10-minute video here):
Diversification and achieving the highest rates of return has always been the-name-of-the-game for the
inside players.
History has proven time and time again that wars, recessions, depressions, boom or gloom has always been
very profitable for the select gang of controllers calling the shots and orchestrating events.
The off-shore game of taking advantage of 3rd World cheap labor started into full swing back in 1982 with
CALPERS going into CALPERS International.
I note that all local government fund managers coast to coast were sent a communication recommendation
back in 1982/3 to participate with CALPERS International with it noted they could bypass their own local
government fund management restrictions per participation in derivatives and foreign investments by doing
so.
From the get-go taking advantage of cheap foreign labor and manipulating of foreign governments through
what I call massive Global Management Funds was VERY profitable. Trade policy such as NAFTA, GATT, etc.
were designed specifically to accentuate those profits. Mexico was the first target at the end of the 80's,
then the Soviet block countries in the 90's, and then the big cherry China starting in 2000.
It all boils down to "Greed" and "Opportunity" "Unrestrained."
No ifs, ands, or buts involved; only closed door discussions on the next acquisition takeover for massive
profit. Appeasing, entertaining, misdirecting, and distracting the population from viewing or having any
basic cognitive thinking per the wealth amassing within government on all levels was worked into a fine-
tuned Stradivarius violin concerto.
The public has always been the mark for the last 10,000-years. The how and method by the financial /
industrial complex in cooperation with government controllers has just been refined as the ticking of the
clock continues. The public has not stood an ice-cube's chance in hell with the financial/industrial complex
teamed up with government to utilize the public as a productivity resource to be drained and managed.
Social engineering has been designed to facilitate the conditioning of the public to shut-up, follow
instructions, and do what they are told.
The problem with you, I, and all the rest is having been conditioned to not cutting-out the clutter and
distractions where our focus is broken from the fundamental basics of allowing government operatives,
others to build their fortunes from within government to the population's severe disadvantage.
A basic example is in California: The "County" of LA had a budgetary basis in 2007 of 17.5 billion dollars.
From 2008 to 2011 the county of LA promoted how they were pulling-in the belt and cutting back expenses.
Stories of lack of funds flew through the news and political party streams. The realty of the situation was
from 2007 to 2012 (five-years) LA County as seen in their CAFR increased their budgetary income from 17.5
billion to 25.8 billion dollars, an increase of 8.3 billion or a 47% increase as they promoted to the population
they were in dire-straits and cutting-back.
It does not take a genius to see the basics at work here per the local government of LA County's wealth-base
increase of annual income as the population is driven further into poverty. To allow the public to be
distracted or misdirected away from such an overwhelming basic fundamental is unacceptable in any
light.
We are all working on trying to bring the "basics" of the wealth involved ever building within government
into view. We all have done our part as megaphones attempting to kick the public in the ass to wake-up and
look.
Looking is one thing. Comprehending is another. With that next step being the hardest of all: Correcting the
situation in the "Public's" behalf.
I know all too well that it will NEVER happen as long as the financial/industrial complex is teamed up with
government to utilize the public as a productivity resource to be drained and managed.
The ONLY way the force necessary to modify the situation is accomplished is to put the public, the
financial/industrial complex, and government all on the same page with the same common objective. That
scenario has not existed from the get-go.
The common denominator that makes it happen is by making the population the "First-Line-Beneficiary" of
the investment arena returns through and by utilizing that massive and ever-growing government
investment return as a "written in stone" objective to meet governments’ general purpose operating
budgets as ALL taxation is incrementally and systematically phased out. Government has its own
management teams in place today to make this happen tomorrow.
With this being done, all three power structures are now on the same page, with the same common
objective being a prosperous economy for one-and-all.
Government's intent in relative transition changes towards the population from one of: Draining and
managing, to one of wanting to see the population as wealthy and prosperous as they can be. In doing so,
all prosper and not just the financial/industrial complex in joint partnership with government.
With the population as the first-line-beneficiary with the set objective being the elimination of taxation
through investment return / enterprise contribution, the "playing field" is leveled for the first time in
history, of which in most probabilities will lead to a thousand-years of prosperity for one-and-all.
The end of 2012 will be the beginning of a new world with the first local government venues establishing
the principle of eliminating taxation through what I have called the TRF (Tax Retirement Funds). The TRF
prospectuses will have what I call the twelve-points that will be in effect written in stone as core principles
not to be deviated from. The basics of the first four-points simplified are:
1. Systematically within set parameters meeting operating costs for a local government from the returns
generated from the TRF management teams assigned. (One revenue source taxation is replaced in its
entirety with another revenue source investment return combined with a percentage contributed from
Enterprise income)
2. Non-Tax fees; fines; service charges are capped and then targeted for reduction by being supplemented
with revenue generated from TRF operation.
3. A local government's operating financial annual growth shall not exceed the financial growth of the local
venue's population.
4. Financial penalties and sanctions will be levied against a local government operating under the TRF
funding principle if governmental authority is utilized to take revenue from the public that violates the
principle of the public being the "first-line-beneficiary" from wealth being generated by that local venue.
- - - -
What the country faces under the last several decades’ course within government is economic collapse.
TRFs bursting forward coast-to-coast building what would be virtual unlimited capital reinvestment under
sound principles opens the door for true growth and "stable" economic prosperity.
Sent FYI and for your positive thinking: thinking poised to give birth for the millennium promised to one-
and-all from across the land.
Sincerely and truly yours,
Walter Burien - CAFR1
Readers: please note the counters for “like” and sharing are constantly reset to zero for my articles, and
comments are disappeared. This is usual for people who present facts that refute the 1%’s war and looting
lies and crimes. Look-up Operation Mockingbird and “Mass media information center” at
www.wanttoknow.info
http://www.examiner.com/article/walter-burien-ca-cafrs-show-8-trillion-tax-surpluses-what-we-should-do
Watch FIAT EMPIRE:
Why the Federal Reserve
Violates the U.S. Constitution
FIAT EMPIRE was one of the first films to come out on
the Federal Reserve System providing a valuable primer
on a complex subject. This 60-minute documentary
explores why some feel the "Fed" is a "bunch of
organized crooks" (as John Adams put it) and others feel
some of its practices "are in violation of the U.S.
Constitution." Discover why experts agree the Fed is a banking cartel that benefits mainly bankers, their clients in need of "easy
money" and bailouts, and a Congress that would rather go deeper in debt than seek funding from its constituents. Long-term studies
indicate the Federal Reserve System encourages war, destabilizes the economy (by causing boom and bust cycles), generates
inflation (a hidden tax) and is the supreme instrument of unjust enrichment for a select group of insiders. If you are fed up with an
ever-expanding state and corporations that are "too-big-to-fail," look no farther than the fiat currency printed by the Federal
Reserve System.
Watch the video: www.youtube.com/watch?v=5K41O2QfpjA
HOW YOUR MONEY REALLY WORKS ... watch
“The American Dream”
The AMERICAN DREAM is a 30 minute animated film that
shows you how you've been scammed by the most basic
elements of our government system. All of us Americans strive
for the American Dream, and this film shows you why your
dream is getting farther and farther away. Do you know how
your money is created? Or how banking works? Why did
housing prices skyrocket and then plunge? Do you really know
what the Federal Reserve System is and how it affects you
every single day? THE AMERICAN DREAM takes an
entertaining but hard hitting look at how the problems we
have today are nothing new, and why leaders throughout our
history have warned us and fought against the current type of financial system we have in America today. You
will be challenged to investigate some very entrenched and powerful institutions in this nation, and hopefully
encouraged to help get our nation back on track.
The video creators understand that how the monetary system works can be very confusing to some and have
done a brilliant job in explaining how the whole system is set up to keep you forever in debt. This is not what
the original founding fathers of America had in mind.
Also, this is not just an American problem. It's the same scam in nearly all countries around the world
Watch the video: www.youtube.com/watch?v=ZPWH5TlbloU&feature=BF&list=FL9K0CkVCpvbE&index=4
Determined to find the law that requires American citizens to pay income tax, producer Aaron Russo (Bette Midler's The Rose,
Trading Places) set out on a journey to find the evidence. Neither left nor right-wing, this startling examination of government
exposes the systematic erosion of civil liberties in America since 1913 when the Federal Reserve System was fraudulently created.
Through interviews with two U.S. Congressmen, former IRS Commissioner and former IRS and FBI agents, tax attorneys and
authors, Russo connects the dots between money creation, federal income tax, and the national identity card, which becomes
law in May 2008 and will use Radio Frequency Identification (RFID) technology.
Watch America: Freedom to Fascism: www.youtube.com/watch?v=uNNeVu8wUak
OUT OF THE MOUTHS OF BABES:
TWELVE-YEAR-OLD MONEY REFORMER TOPS A MILLION VIEWS
Ellen Brown
May 29, 2012
The youtube video of 12 year old Victoria Grant speaking at the Public Banking in America conference in
April has gone viral, topping a million views on various websites.
Monetary reform—the contention that governments, not banks, should create and lend a nation’s money—
has rarely even made the news, so this is a first. Either the times they are a’changin’, or Victoria managed to
frame the message in a way that was so simple and clear that even a child could understand it.
Basically, her message is that banks create money “out of thin air” and lend it to people and governments at
interest. If governments borrowed from their own banks, they could keep the interest and save a lot of
money for the taxpayers.
She said her own country of Canada actually did this, from 1939 to 1974. During that time, the government’s
debt was low and sustainable, and it funded all sorts of remarkable things. Only when the government
switched to borrowing privately did it acquire a crippling national debt.
Borrowing privately means selling bonds at market rates of interest (which in Canada quickly shot up to
22%), and the money for these bonds is ultimately created by private banks. For the latter point, Victoria
quoted Graham Towers, head of the Bank of Canada for the first twenty years of its history. He said:
Each and every time a bank makes a loan, new bank credit is created — new deposits — brand new money.
Broadly speaking, all new money comes out of a Bank in the form of loans. As loans are debts, then under
the present system all money is debt.
Towers was asked, “Will you tell me why a government with power to create money, should give that
power away to a private monopoly, and then borrow that which parliament can create itself, back at
interest, to the point of national bankruptcy?” He replied, “If Parliament wants to change the form of
operating the banking system, then certainly that is within the power of Parliament.”
In other words, said Victoria, “If the Canadian government needs money, they can borrow it directly from
the Bank of Canada. The people would then pay fair taxes to repay the Bank of Canada. This tax money
would in turn get injected back into the economic infrastructure and the debt would be wiped out.
Canadians would again prosper with real money as the foundation of our economic structure and not debt
money. Regarding the debt money owed to the private banks such as the Royal Bank, we would simply have
the Bank of Canada print the money owing, hand it over to the private banks, and then clear the debt to the
Bank of Canada.”
Problem solved; case closed.
But critics said, “Not so fast.” Victoria might be charming, but she was naïve.
One critic was William Watson, writing in the Canadian newspaper The National Post in an article titled “No,
Victoria, There Is No Money Monster.” Interestingly, he did not deny Victoria’s contention that “When you
take out a mortgage, the bank creates the money by clicking on a key and generating ‘fake money out of
thin air.’” Watson acknowledged:
Well, yes, that’s true of any “fractional-reserve” banking system. Even before they
were regulated, even before there was a Bank of Canada, banks understood they
didn’t have to keep reserves equal to the total amount of money they’d lent out:
They could count on most depositors most of the time not showing up to take out
their money all at once. Which means, as any introduction to monetary economics
will tell you, banks can indeed “create”money.
What he disputed was that the Canadian government’s monster debt was the result of paying high interest
rates to banks. Rather, he said:
We have a big public debt because, starting in the early 1970s and continuing for
three full decades, our governments spent more on all sorts of things, including
interest, than they collected in taxes. . . . The problem was the idea, still widely
popular, from the Greek parliament to the streets of Montreal, that governments
needn’t pay their bills.
That contention is countered, however, by the Canadian government’s own Auditor General (the nation's
top accountant, who reviews the government’s books). In 1993, the Auditor General noted in his annual
report:
[The] cost of borrowing and its compounding effect have a significant impact on
Canada's annual deficits. From Confederation up to 1991-92, the federal
government accumulated a net debt of $423 billion. Of this, $37 billion represents
the accumulated shortfall in meeting the cost of government programs since
Confederation. The remainder, $386 billion, represents the amount the government
has borrowed to service the debt created by previous annual shortfalls.
In other words, 91% of the debt consists of compounded interest charges. Subtract those and the
government would have a debt of only C$37 billion, very low and sustainable, just as it was before 1974.
Mr. Watson’s final argument was that borrowing from the government’s own bank would be inflationary.
He wrote:
Victoria’s solution is that instead of paying market rates the government should
borrow directly from the Bank of Canada and pay only token rates of interest.
Because the government owns the bank, the tax revenues it raises in order to pay
that interest would then somehow be injected directly back into the economy. In
other words, money literally printed to cover the government’s deficit would be put
into circulation. But how is that not inflationary?
Let’s see. The government can borrow money that ultimately comes from private banks, which admittedly
create it out of thin air, and soak the taxpayers for a whopping interest bill; or it can borrow from its own
bank, which also creates the money out of thin air, and avoid the interest.
Even a 12 year old can see how this argument is going to come out.
www.webofdebt.com/articles/outofthemouths.php
Ellen Brown is an attorney and president of the Public Banking Institute, http://PublicBankingInstitute.org. In Web of Debt, her
latest of eleven books, she shows how a private cartel has usurped the power to create money from the people themselves, and
how we the people can get it back. Her websites are http://WebofDebt.com and http://EllenBrown.com.
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
The Empowered Man by Jon McNaughton
There is something simmering deep inside the soul of all Americans. We want to know that we are a free people; that
the government acknowledges our individual rights; that fiscal responsibility is an absolute requirement. We want our
presidents and politicians to mean what they say when they take the oath of office…”to defend the Constitution of
the United States!”
Do we have freedom when half the country pays taxes to support the other half? Do we have freedom when
government regulates every aspect of our lives?
Do we have freedom when our currency is controlled by a corporation that has no accountability to the American
people?
Do we have freedom when we have more debt than can possibly be repaid?
The government bureaucracy is to a point where it is no longer worth what the tax payer is required to maintain it. I
wonder how many Americans realize they have sold our God given freedoms for a mess of pottage.
I hope everyone will see themselves as the Empowered Man. It makes no difference whether you are a man or
woman, how old you are, or the color of your skin. You must decide to no longer be silent, to get off your bench, pick
up that Constitution and hold it high in the air as a standard for the world to see. Don’t hold back! Don’t be silent! You
are the future of this nation and without YOU, the American dream will perish. Jon McNaughton, a political artist
www.mcnaughtonart.com
Click on the cover to get a free E-book
Shared by: Alternative News Net
Alternative News Net
Exposing & Destroying The New World Order
Infowarrior Truth S...
The Daily Awakening
About
To The Readers of my article post I’ve put documentary links in the articles so you can watch what other researchers have found anything highlighted in blue or green are hyper links in the articles but since hyper links are not ac
(More...)tive on this site But you can download the pdf document and then you can click on hyper links or copy and paste the name of the documentary's in you're search bar and you'll find it what I post is truth that has been hidden from us by the powers that be (the elite) I've been doing research on the financial situation we face and the cause the banking cartel called the federal reserve and the elite power structure who are really in control of my country the united states and the world these elites are pure evil they don't care about you or me or human life for that matter all they care about is power and control over humanity to enslave us all in a one world planetary prison they also want your mind in that prison its time for humanity to awaken from the trance they've put us in if we don't wake up they will completely enslave all of humanity and to kill as many of us as possible in the process through GMO'S,destroying the environment,and blaming human beings for global warming and mean while their spraying chemtrails in the sky poisoning our soil where we grow food these are their goals that is the reason I post these article's to inform humanity of what's going on so you can know the truth don't believe me do your own research on this information and come to your own conclusion this information is everywhere why do you think the government wants to control the Internet this is devastating information about the elite's this is the reason why the government wants to clap down on the Internet it has nothing to do with piracy it has to do with the control of this information and about their crimes against humanity that's why I say do your own research go to infowars.com everything you've ever wanted to know about what the government has been hiding from us is on the net or if you want to know why life and the world is the way it is its out their but its up to you to look for it I can only show you the path you've gotta walk it and dig for this info that rabbit hole goes deep humanity is in real trouble all our lives are at stake this is not a joke this is life and death will you help inform humanity and spread this information by tweeting or downloading the article and re posting it some where else talk to people about what your reading Before they kill the free web here are a few movies to watch these movies will open your eyes all are a must watch the movies below free on youtube copy and paste
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EndGame Blue Print to Global Enslavement
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Terror Storm: A History of Government Sponsored Terrorism
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Loose Change
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Invisible Empire A New World Order Defined
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A foot note on The Federal Reserve but first a Question have you even heard of The Federal Reserve in school or in life and even if you did hear about it how much do you know my guess not a whole lot and that’s the point the system doesn't want you to know about it because they are the real controllers of government behind the scenes they bribe our politicians with money lush bonuses and political favours to vote a certain way and in doing so they have corrupted our system of government it doesn't matter who you elect or who you kick out of office we don't get to vote out the federal reserve it will still be there that’s why nothing changes for the better no matter who is elected the fed has got to be audited and abolished asap if we as a country really want to prosper ending the Feds money monopoly has to be a priority for the american people the fed destroys wealth you lend them 50 bucks they'll give you 30 back they're crooks they're loan sharks they charge us interest on our own money when we can create debt free money backed by silver Lincoln did it so did JFK with Executive Order 11110 look it up so if the U.S economy collapses it will be because of The Federal Reserve if you have lost your job your house or car or anything important to you because of the state of the economy it is because of The Federal Reserve system because this is the economy they The Federal Reserve have created and having done so they have enslaved the american people and humanity with institutions like the federal reserve ,IMF ,THE WORLD BANK ETC..these systems have destroyed lives and country’s all around the world through this debt based money system they bailout there buddy’s on wall street and the tax payers pick up the bill this is unfair the system is rigged on purpose to destroy society so they can profit off our misery The Federal Reserve is a private Banking cartel that only seeks profit and gain and control over government to push there own agenda regardless of human loss this system is the reason for our financial difficulties in the united states in the 100 years of their existence they have looted we the American people of our wealth they print excessive amounts of money which in turn it steals the value from the money already in existence and put it into the economy causing inflation so when you go get gasoline,clothes,you get less and pay more when you go food shopping you pay more and get less food so the federal reserve is literally taking food out of you’re mouth and you're family’s mouths and they also put you in a state of stress that you would've not been in if the federal reserve didn't exist just think about that... think of the evil of that and they the federal reserve knows this and they don't care they profit off of wars,death,misery,and the suffering of humanity go to youtube type in The Federal Reserve to see the truth for you’re selves this system has to be abolished sooner rather then later END THE FED!!!!!!!! AND THE WORLD WOULD BE A BETTER PLACE GO HERE http://www.auditthefed.com/ SIGN THE PETITION COPY & PASTE TO YOU'RE SEARCH BAR AND CONTACT YOU'RE CONGRESSPERSON LET THEM KNOW YOU WANT THE FED AUDITED
copy paste this movie 1.Fiat Empire: Why The Federal Reserve Violates The U.S.
Constitution 2.Zeitgeist Addendum to you're search or to youtube watch it to know the truth about The Federal Reserve's Debt Mafia and how they've destroyed america's wealth through debt
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