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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)
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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.
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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:
“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.
LINK–> http://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 nonmajor 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
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TOTAL IN SPECIAL REVENUE FUNDS = $20,648,388,000
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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
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TOTAL IN DEBT SERVICE FUNDS = $484,712,000
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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
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TOTAL IN CAPITAL PROJECTS FUNDS = $1,589,456,000
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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
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TOTAL IN BUILDING AUTHORITY FUNDS = $86,174,000
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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
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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
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TOTAL IN ENTERPRISE FUNDS = $3,612,964,000
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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
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TOTAL IN PRIVATE PURPOSE TRUST FUNDS = $4,625,181,000
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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
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TOTAL IN PENSION/EMPLOYEE BENEFIT FUNDS = $409,623,766,000
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Agency funds – (Page 238) – account for the receipt and disbursement of various taxes, deposits, deductions, and property collected by the State, 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
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TOTAL IN AGENCY FUNDS = $18,444,563,000
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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
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TOTAL IN NONMAJOR COMPONENT UNITS = $2,874,358,000
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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
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TOTAL IN MAJOR GOVT FUNDS = $7,888,786,000
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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
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TOTAL IN PROPRIETARY FUNDS = $-2,806,744,000 (deficit)
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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
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TOTAL IN MAJOR COMPONENT UNIT FUNDS = $91,319,843,000
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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.
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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
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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
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CEA – TOTAL AVAILABLE CAPITAL (after liabilities) = $3,753,367,495
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Source – CAE CAFR – http://www.earthquakeauthority.com/UserFiles/File/Publications%20&%20Brochures/Annual%20Report%20to%20the%20Legislature%20-%20Reporting%20Year%202010-FINAL.pdf
Main Website – http://www.earthquakeauthority.com/CEAIndex.aspx
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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
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BATA – TOTAL FUND BALANCES (Page 45) = $3,175,070,238
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Source CAFR – http://www.mtc.ca.gov/library/AnnualReport-08/MTC_AR_2008-pages/index.html
Main Website – http://bata.mtc.ca.gov/
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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.
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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!!!
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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)
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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…
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For a deep explanation of the Pension Fund System, watch this:
Other websites for CAFR info:
CAFR1.com
TaxRetirement.com
TheCorporationNation.com
RealityBloger.wordpress.com
CAFRMAN.com
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–Clint Richardson (realitybloger.wordpress.com)
–Friday, May 25, 2012
REALITY BLOG 
gene
/ May 25, 2012Once again a slam dunk by Clint… I hope the Californians will confront their lawmakers with these numbers.
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Doug Herich
/ May 25, 2012No need to “CONFRONT” anyone here! Educating the people is all that is necessary and the rest will take care of itself. When the people discover all they need to do to separate themselves from government, they will realize that the ONLY way to end this corrupt system is to learn what YOU need to do…NOT what government employees need to do. The territorial limitations of ALL government will prevent ANY government employee from pushing you around but FIRST you need to understand what happened over 223 years ago when the Organic Laws of the United States of America created the foundation for ALL written law in the united States.
The truth will make you free and when collectively shared, it will force government to comply with its own written law…because government employees have NO OTHER CHOICE!
http://www.edrivera.com
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gene
/ May 26, 2012Clint Richardson, Walter Burien and many other groups are taking these numbers to “confront” their state and county boards and comptrollers… the word confront may be scary to you but it is the right word and the right thing to do…
The confrontation as the weekly meeting should be handled politely as a citizen speaking to its city or county board and videotaped and uploaded to youtube….
The first video Clint produced shows this process and how effective it is…
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Walter Burien
/ May 27, 2012Folks:
Ever hear the expression: “Don’t bring a knife to a gun fight” ?
Well, the humorous aspect of the way things exist today is that government has convinced us all to: “Bring paper to a gun fight”
They arbitrarily ignore, wear us down, take our wealth, pay themselves more for doing so, make their decisions in their own favor, and then If we do not like it, they use the guns against us.
It is all about greed and opportunity unrestrained. Want an even playing field that restores your wealth and creates a few REAL checks and balances? See and learn about the TRF noted as follows:
With the TRF established (Tax Retirement Funds – http://TaxRetirement.com ) systematically replacing the revenue source of taxation, venue after venue there will, or would there be any need for taxation ever again.
The TRF will also will be structured to cap and then lower fees and service charges now in place within government.
Happy Memorial Day!
Walter Burien – CAFR1
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Walter Burien
/ May 25, 2012Clint:
Good Job!
I give extreme emphasis to your following comment in your article:
“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.”
Yes, “collective totals” from all, the 10,000 + local governments operations not shown “in” California dwarf the state totals shown.
The World (and the reality of our government operations) is a much different reality then we are led to believe: “Due to the massive money and control involved”
Walter Burien – CAFR1.com
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Doug Herich
/ May 25, 2012What more is it going to take? How can Americans continue to bleed and sit there doing NOTHING? I am doing what I can to educate the naive public that is unknowingly contributing to its own demise. The truth about the “REAL” territorial limitations of ALL government is hidden in plain sight as well! Ed Rivera has uncovered what happened in that “secret constitutional convention” that has resulted in what is happening today and he also provides remedy. The facts you have provided were found by you after a forensic analysis os the CAFR…Dr. Rivera is a legal expert and he performed the same kind of forensic analysis on the Organic Laws of the United States of America. It exposes the truth about the creation of the “United States” and how George Washington played a key role in hiding something that is easily found in written law. I urge you to learn what Ed is teaching and I will help you learn if you express an interest. I think we should combine our efforts to educate the people as THIS alone is all we need to do to save ourselves from getting sucked down with everyone else. Our collective knowledge can make sense of this mess and provide remedy at the same time.
Thanks again for your great work, all Americans will benefit from your efforts so keep it up Walter!
regards,
Doug
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Doug Herich
/ May 25, 2012Clint, check the date you posted on your blog: “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, 2001). I think you meant to write “2012” instead of “2001”. Thank you for this informative post. Now I want to share what I have learned about government and how we can reign these criminals in with knowledge of the territorial limitations of ALL government and its employees. Go here and start reading: http://www.edrivera.com
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realitybloger
/ May 25, 2012Big Thanks!
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nonviolentconflict
/ May 25, 2012Reblogged this on NonviolentConflict.
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stonecatcher
/ May 25, 2012There is more to the chicanery. Look at the way Spain is being protrayed [important to know if europe has a similar CAFR system] in the “financial” news.
Debt [that’s total debt] to GNP a staggering 1:3:1. IF my D to Income were 1.3:1, I would be rejoicing. More importantly–what is Spain’s Debt to Equity–that’s the real measure of financial health. What is Spain current maket value? How about $70 trillion. So $1.8Trill in accumulative debt divided by $70Trill in market value = D/E of .03:1. Don’t be sad, not so bad. How about the interest rates on it’s long term sovereign debt of 7%. Hey, I can remember when the prime rate in the US hit 22%. Again, not so bad.
So what–pray tell–is going on? It’s called a credit scam. Because Spain is not meeting up to the contrived metrics of the Central Bankers [we all know who they are]–the country is being “downgraded”–by the world’s inglorious rating agencies. This in turn makes the country’s cost of doing business greater [more perceived risk/higher interest rates] but the end-game is the contraction of the money supply. It’s play ball acording to our dictates or we’ll take away your capacity to conduct commerce.
The solution–repudiate the bogus debt [it’s fiat and it’s toxic] and print your own currency: As did Lincoln, as did Hitler, as JFK threatened and as did Saddam Hussein. It’s time to throw the Khazaric mongols out to the temple.
Peace,
GaryS
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Adam
/ May 28, 2012“More importantly–what is Spain’s Debt to Equity–that’s the real measure of financial health.”
No, it’s not, for two important reasons. First, “default” is not what happens when debt exceeds equity. Default is what happens when the cost of servicing a given debt load exceeds the ability to meet such payments. So your original statistic was the correct one….1.3:1.
Secondly, and this is related to the first point, both measures (debt vs equity & debt vs GDP) are fatally flawed, since they make the assumption that the indebted entity will be able to beg, borrow, or steal everything in sight. Do you really want to make the ridiculous assertion that any government’s revenue can even approach 100% of GDP? Do you really want to make the argument that the entire nation’s equity can be ripped up and sold off to cover the debts of the sovereign?
Far more accurate is the measure of debt servicing vs government income — which, for the US, is already about 10%, and is only going to grow as we go forward.
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Wm g Thompson
/ May 28, 2012JFK Did print his own currency, but we know what happened next. So it never saw the light of day, nor his dream of exposing those involved in his demise.
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Michael Marino
/ May 25, 2012Thank You Walter Burien for persistently bringing this to the attention of the world year after year. In our difficult and depressing economic times it’s difficult to understand why not one State representative brings this to the floor for discussion. I suppose it’s not surprising though when we consider the much worse things that we have also been deceived about since 1913 when the FED was was enacted. These concerns might soon be dwarfed by the events unfolding in the country we used Nuclear Bombs on in 1945. Best Wishes for a Miracle.
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gene
/ May 26, 2012This is Clint Richardson’s work, though he learned from Walter..
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Chuck
/ May 25, 2012Kudos to Walter Burien, the King of the CAFR!
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gene
/ May 26, 2012Once again the credit for this extensive work belongs to Clint Richardson, this is his blog and his name is signed to it. Walter Burien was the pioneer but someone like Clint who I deem to be the best truther in the country, someone who produces real tools for the rest of us and real results needs to be held in the highest esteem in this movement. I am sensitive to how many people on the internet are not really paying attention to significant details and splintering the good works by dropping the baton…reporting who is responsible for a work is not a minor detail… I am surprised the galactic federation didn’t get the credit for this article.
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Walter Burien
/ May 27, 2012Yes, this is Clint’s article and I am proud of him in doing a good job.
I started mentoring Clint in 2009 about the CAFR and the structure behind it. For the last three-years he has listened well and has taken the ball and run with it making one touchdown after another.
An economist Carl Herman from CA has done the same – http://www.examiner.com/article/ca-cafr-shows-600-billion-tax-surplus-1-criminals-cover-up-demand-austerity
I wish more responsible Americans with good comprehensible abilities would do the same.
The syndicate continues business as usual by the “Silence is Golden Rule” and by extensive distraction / misdirection exerted on the population. They are VERY effective at having done so over the last 100-years.
Times are changing though out of necessity.. so be prepared for the visceral reaction when the syndicate gets backed into a corner as more and more Americans learn how effectively the syndicate has liberated them of their wealth over the last sixty-years.
The syndicate has many guns; trained SWAT teams; almost unlimited cash flow; and the full cooperation of their primary partner in crime / the bought off and paid for media.
At this time the syndicate laughs behind closed doors at the ease of playing the population. When the laughter stops, real and dangerous confrontation begins. Their side is paid well with our money bled from us all.
But, as has been the case in all of history, when true confrontation from the masses begins, the winner has always been those that fight without pay and do so out of conviction of life itself.
Ask, and see from history the Russians, the French, or the Americans who freed us all from British rule. When the envelope is pushed to far out of greed and oppertunity unrestrained, the people have the final word in the matter..
The Russians: “Drag em out in the streets and execute them. The French: “Off with their heads”. The Americans: “Let’s swarm them and take em out” For all three it didn’t work to well at the start, but as the conviction grew all three sayings in end effect had meaning and final effectiveness.
Over the decades and centuries complacency has always been the case that allows the errors of the past to repeat themselves. Final say of the people? Coming closer every day.
Walter Burien – CAFR1
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gene
/ May 30, 2012I have been producing media for the White Hats voluntarily for 1.5 years plus involved in other causes…. I promote both Clint and Walter’s work regularly because it is the smartest no brainer red handed weapon we have to topple the pyramid…. I don’t really have roots in any local community since I travel a lot but I hand your work to people I know such as in Madison Wisconsin. My link above is new and may lead to a huge investigation beginning with England and Interpol. We do all of this because to do nothing is unacceptable. I admire both you Walter and Clint and anyone with the guts to get off their asses and worry later. Just wanted to make sure people give Clint his due.
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MountainHome
/ May 25, 2012What? My government is lying to me? I just cannot believe it!
Great article and informative for all 50 states and not just California. Someone has really done some excellent research.
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howardtlewisiiii
/ May 25, 2012California has been quasi-colonized by The City of London through the domination of the legislature by the American Bar Association, the American branch of the London Lawyers Guild, a commercial organization of attorneys who service the City of London.
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torchwood12
/ March 23, 2013your right we are waking up as you can see.
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torchwood12
/ March 23, 2013LikeLike
Rick Carufel
/ May 26, 2012Great report. What you failed to mention was that this is the case with every state and the federal government. It is a conspiracy to destroy prosperity for Americans. Rampant corporatism and the banksters see economic ruin as a means to reduce the population and to get complete control. This is war. Dig them out of their safe little havens. End the Federal Reserve banks and financial institutions that are too big to fail, what else can be done with them that isn’t going to destroy America?
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Tex
/ May 26, 2012The article did mention it. There is a lot to read so maybe you missed where it says,
“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.”
and it says:
“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.”
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Daniel Noel
/ May 26, 2012So many conspiracies, so lilttle time…But this CAFR scandal is not amazing. What can be expected from senior public servants who are incapable of understanding the striking resemblance between Building 7’s disintegration by an office fire and a controlled demolitiion?
Love,
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realitybloger
/ May 26, 2012So an actual provable conspiracy isn’t amazing? In fact, its our only hope!
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Daniel Noel
/ May 27, 2012An actual provable conspiracy, our only hope? Quite possible. But CAFR, assuming it does gain traction, will be dismissed and mocked by the watchdogs who should have barked about it a long time ago but have not done so, probably intentionally, like the Howard Jarvis crowd and the public sector unions.
In order to break the walls of Plato’s cave, the conspiracy has be not only provable, but also compelling enough so the general public have no choice but to embrace it. CAFR is welcome to enter the friendly competition for the conspiracy that gives the sheeple their “aha” moment.
Love,
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Blair T. Longley
/ May 26, 2012EVERYWHERE WE LOOK,
DIFFERENCES BETWEEN
HUGE LIES AND REALITY
WERE GETTING BIGGER!
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Mick
/ May 26, 2012Great explanation!! Everyone in California needs to see this.
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Hatha Sunahara
/ May 27, 2012This gives much substance to the notion that taxes are theft.
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Kenneth
/ May 28, 2012There is a difference between your annual budget and your net worth. California’s shortfall is in it’s budget. We spend more than we collect in taxes, earn on investment or save annually. Therefore, in 2011, we spent $15.6 billion more than we earned. Sound familiar? It’s happening at the state level, national level, corporate level and most importantly, the individual level. Only the individual and corporate level carries risk. Consider this. California will NOT have to sell it’s valuable land, universities, public hospitals and all the other assets to pay it’s bills. The individual on the other hand will be forced to liquidate assets when their annual budget is not met. So would any corporation until bankruptcy is the final outcome.
I wouldn’t worry about California being able to pay it’s bills. The biggest obstacle is the TOTAL AND COMPLETE AVERSION to raise taxes. Only governments can generate revenue through higher taxes. Until we become of the mind to actually pay for the things we want, with fair and equitable tax structures, spending deficits will continue by all stripes of government. Vote for tax increases not bond sales to pay for projects like high speed rail. Most voters don’t even know what a bond is! There’s plenty of blame to go around but hardly any civil discussion of how to pay for programs we want without mortgaging the future.
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Daniel Noel
/ May 28, 2012Excuse me, but you are veering off-topic. This article purports to make the case that:
* the top managers of the California state goverment knowingly cook their books
* they hide considerable amounts of money (CAFR) that the California state government owns
* they leverage the public’s ignorance of CAFR into a “choose between more debt, more taxes and less services” lose-lose curse
* if they had some sense of morality and included CAFR in the accounting they share with “us the gullible people,” the above-mentioned curse would invert into some “choose between less debt, less taxes and more services” win-win blessing
* they seem committed to knowingly hide CAFR against the common good.
Accordingly, your plea for tax increase is incoherent with this article…unless you rationally demonstrate that CAFR is just another nutty and worthless conspiracy theory. And beware that the “public employees unions and Howard Jarvis would be all up in arms” is unconvincing, as these entities are as capable of grand obfuscation as the state capitol crowd. Instead, kindly accept a challenge to point to the verifiable major error, omission or distortion in Richardson’s analysis. All reasonable skeptics on this forum will welcome your success and will invite Richardson to carefully take it into account.
Love,
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realitybloger
/ May 30, 2012Here, here!
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AA CA
/ May 28, 2012Thank you for your research and for bringing this information out in the open for all Californians to see. I, for one, am sending this to everyone I know, especially my congressman (not that he will care or even understand). It is hard to fathom that we are living in these times and even harder to fathom that most people seem content to watch Dancing with the Stars, rather than do enough research to gain an understanding of what is going on around us. It is all, very simply, the destruction of the middle class and global financial terrorism. Just a few days ago, I read that the taxpayers will now be on the hook for the derivatives debacle. Also, I read a very interesting article today that, while unrelated to the topic in this post, is critically important for all of us to understand. Here are the links to both articles…
http://www.washingtonsblog.com/2012/05/as-an-encore-to-bailing-out-the-big-banks-government-to-backstop-derivativees-clearinghouses-in-the-u-s-and-abroad.html
http://www.marketoracle.co.uk/Article34819.html
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David Merrill
/ May 28, 2012This would start a cascade of redemption and subsequently a run. I am not saying that is bad.
Do you recall Arnold spent three weeks being shuttled back and forth from the Broadmoor Hotel and the Center for Creative Leadership? My hunch is that is where he learned that he cannot liquidate the CAFR investments – even a little. Chain reaction!
Before the visit though, he became Governor by promising to balance the budget and get California out of debt. So therefore my theory. He was voted to solve California’s financial woes and never has touched these investments.
Here is a little tour:
http://Friends-n-Family-Research.info/FFR/Merrill_Center_for_Creative_Leadership.wmv
I am pretty convinced my theory is correct – that when the first state governor dips into the CAFR then all the state governors are going to race to liquidate this overinflated bubble!
Regards,
David Merrill.
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David Merrill
/ May 29, 2012This is a bubble of nomenclature – the distinction between a party of interest and a party in interest.
Get a closer look!
http://www.suijurisforum.com/real-party-of-interest-t2280.html#p15214
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Carl Herman
/ May 29, 2012Great work, Clint; thank you. I wrote about your documentation at Washington’s Blog, Daily Censored, and Examiner.com. Prison Planet reposted, and so did others as the last search site below shows (including Ron Paul’s Forum):
http://www.examiner.com/article/ca-cafr-shows-600-billion-tax-surplus-1-criminals-cover-up-demand-austerity
http://www.dailycensored.com/2012/05/27/ca-cafr-shows-600-billion-tax-surplus-1-criminals-cover-up-and-demand-austerity/
http://www.washingtonsblog.com/2012/05/ca-cafr-shows-600-billion-tax-surplus-1-criminals-cover-up-demand-austerity.html
http://www.prisonplanet.com/ca-cafr-shows-600-billion-tax-surplus-1-criminals-cover-up-demand-‘austerity’.html
http://www.google.com/search?client=safari&rls=en&q=%22CA+CAFR+shows+$600+billion%22&ie=UTF-8&oe=UTF-8
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realitybloger
/ May 29, 2012I appreciate it. I wish more would follow your lead!!!
-Clint-
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Jonathan
/ May 29, 2012Aren’t those monies designated for special purposes and can’t be used for anything else?
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realitybloger
/ May 29, 2012Think about what you are asking… Is that $577 billion in liquid assets (investments in stocks and bonds, real estate, foreign currency, etc…) designated for other special purposes? Of course it is! Organized criminals aren’t stupid!!!
But this would mean that 577 billion is not being used for taxpayer services (i.e. to pay off the state debt) which is only 166 billion. The question is ridiculous when you look at it rationally. We are so conditioned to think that government has our best interests at heart that we can’t see the complete crime even when it is right in front of us – staring us in the face.
Holding half a trillion in wealth while taxes are raised and people are starving… no question you ask and no “designation” or “earmark” is an acceptable one.
Think about it…
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Carl Herman
/ May 29, 2012Jonathan: you have a choice to have the 1% tell you what policy will be despite the facts that prove you’re being used as animal labor, OR you can be responsible for the point that a 1% engages in massive economic fraud to loot literally trillions of our dollars and pretend that this is in the public interest.
Readers: I do recommend you become comfortable with the endgame of the 99% standing for justice and arresting the 1%.
Walter Burien is correct (as he personally discovered) that the 1% will attempt to use law enforcement for their dictatorship. And that said, this is what Occupy is about: recognizing the crimes, ending them, and having policy for 100% of humanity.
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Jonathan
/ May 29, 2012I know that, but I’m asking because I’m trying to figure out a way to bring it up to professors at school. I was talking to the chair of the accounting department today, who teaches governmental accounting, and that was her response. She, like most faculty members, believe that the government has our best interest in mind and I want to discuss it with her and other faculty members without coming off as anti-government because of repercussions since I’m still looking for a full-time job after I graduate.
The CSU system is being hit hard and I want to get people at my school thinking about this issue without being labeled anti-government. Classes here are being cut and enrollment caps are in effect. Our school is being threatened with a $7 million fine if we over-enroll student which is absolutely ridiculous since more people are wanting to attend CSU schools because of the higher costs of the UC system.
How should I bring this up in a “politically correct” way?
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Carl Herman
/ May 30, 2012The pro-government response is to explore the specific designations in a cost-benefit analysis. The typical response of funding retirement benefits is specious given the data and practical options that save hundreds of billions of our dollars. You might want to ask the question: How is $600 billion in investments justified given the option to pay as you go for retirement benefits?
Here’s some more that might help from this: http://www.examiner.com/article/cafr-us-agencies-have-billions-trillions-investments-while-crying-budget-deficits
The misleading information on pages 154-155 suggests retirement funds are not fully funded. However: over $300 billion is held in investments for $1.8 billion in net benefits. How many votes do you think our present policy would receive from the California public given the alternative of receiving ~$15,000 now and paying a $50 tax every year? The boom to California’s economy through refund and/or investment in jobs would more than cover this $1.8 billion through increased revenue.
The investments: $143 billion in “equity securities” (stocks), $92 billion in debt securities (page 83-84). $72 billion is dependent upon foreign markets (page 88). This means that we “invest” in the scraps from corporate Board members’ votes for stock dividend, and transfer the interest cost of debt instruments from one set of taxpayers to another, but minus their management cost. This means that buying government debt is a net loss to taxpayers and not an investment at all. And yes, you should be outraged by this “emperor has no clothes” fact. The contrasting method is pay-as-you-go with tax and/or fiat money-creation for shortfalls. This is among many of the obvious solutions.
The UC system had a budget deficit for this ending school year of $0.65 billion. The policy response was to deny 2,300 students enrollment, lay-off over 2,000 faculty and staff, furlough teaching days and cut 10% salaries, and raise tuition by 32%. For less than one-third of one percent of the investment total of California, UC would have been fully-funded and those reductions eliminated.
California’s 20,000 laid-off teachers could be rehired at $70,000/year for $3.4 billion; less than 1% of these three CAFR “investments” total.
One cost of this deception: Governor Schwarzenegger announced a 41 percent cut for the 2010 budget in “general government” services including elimination of CALWORKS (welfare to work and child-care program, which will affect 1.4 million people, two thirds of them children), and sharp decreases in health and welfare programs for single mothers, low-income children, foster youth, the disabled, and senior citizens.
Los Angeles County has $52 billion in investments (pages 61-63), the City of Los Angeles has $36 billion (page 80). Both have drastically cut programs. Both have pension plans underfunded by current members by less than 2% of their investment totals.
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realitybloger
/ May 30, 2012email me at clint@cafr1.com if you’d like to talk, Jon
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Joe Cesanieu
/ May 30, 2012This info should be in the hands of KFI hosts John and Ken. They would ignite a revolution with it.
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realitybloger
/ May 30, 2012Please, do pass it on. Revolution is the goal!
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Carl Herman
/ May 30, 2012Good idea, Joe. I just e-mailed them with info and invitation to take it on.
Everyone, here’s their e-mail: johnken640@kfi640.com
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Carl Herman
/ May 31, 2012I wrote a longer article I’m sharing with local papers: http://www.examiner.com/article/does-california-need-a-600-billion-investment-fund-given-our-austerity
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Rick
/ June 1, 2012I heard you on the Power Hour. You did a great job! But they’re huge Ron Paul supporters, so I was shocked that they let you on. Did they tell you not to mention him? If so, it was worth it just to get the information out there. People can figure out for themselves that Ron Paul is a fraud from that info.
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realitybloger
/ June 3, 2012I was surprised to get the call as well, but very happy. I do like Joyce Riley very much. Problem-reaction-solution requires not just right and left, but middle too. Ron Paul is the lesser of three evils. But evil begets evil. Control all sides, and control all choices. I am just pleased that the CAFR info and ALEC got to syndicated radio. Doesn’t happen often…
Thanks man,
-Clint-
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please send link to the presentation of the CA school district annual financial report/CAFR scamt
/ June 8, 2012HI,
A month ago I was interrupted while viewing your lengthy expose of the CAFR report on a small school district (something like Top of the World) outside and NE of LA. Rather wonderful but I would like to view the rest of it.
can you send me a link? I cannot find it on your website.
Thanks,
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realitybloger
/ June 8, 2012Or you can go to TheCorporationNation.com
Thanks – Clint
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Dave
/ June 18, 2012So Clint, you are proposing to raid the investment funds of the CALPERS pension fund? I hear day in and day out that it is UNDERFUNDED and we must slash the retirees pensions! Pete Wilson right wing cronies have tried to do that twice now. There is no EXTRA in that fund to rob to pay for day to day operations. All the other funds you listed were mostly voted in under the initiative process, so the taxpayers of California wanted those funds there for their intended purpose! Roads, clean water, tobacco education etc… Sacramento cannot legally tap them. That is what the taxpayers voted for. You think you have uncovered some vast conspiracy, but this is just normal business in a state that is the worlds 7th largest economy.
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realitybloger
/ June 18, 2012This hardly deserves a response, but I for one (a former Californian) don’t appriciate that double or triple amount of tax-payer money (besides employee contributions)is being dumped into the pension system. Why should all people pay via taxation for a minority to retire? Even a pensioner must be able to see the folley in that, especially when over 12 billion was taken from taxpayers while the State tells them about its 16 billion deficit. So no, I would not feel guilty if the tax-base provided by taxpayers (not employees) was taken back and equally divided or used in a more organized way to pay for government services to all people, not just government employees.
As for the rest of your rediculous notions, you’ve got a lot more studying to do. If “normal” is ok with you, then you should block my blog – cause normal is the problem that needs a fixin.
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Dave
/ June 18, 2012Clint and Carl, you claim to be economist yet seem to lack a basic understanding of the history of pensions in the United States. If you recall, the large corporations lobbied congress to allow for them not to pay collected money into the actual pension plans for up to years. After many years of this during the high inflation 70’s and 80’s the pension plans were all grossly under funded. The second blow was when Reagan sat on his thumbs while “Corporate Raiders” from Wall Street hedge funds bought up companies, parted them out and stole the pension plans. Grandma lost everything. After 5 + years of this, 21 billion was stolen from private pensions and funneled to the top. The dead carcass pensions were dumped on the Pension Benefit Guaranty Corp, which paid the retiree’s 10 cents on the dollar. By 1986, the private pension was mostly dead and everyone was pushed into 401ks. Now that brings us to today. There is a vicious attack from the absolute top of the food chain against middle class public workers. They have redistributed the wealth of the middle class to the top. They have outsourced and in-sourced all the good paying jobs out of the US under the name of globalization. Globalization was suppose to lift up the third world and benefit our economy as the poor country’s could now afford to buy our goods. It did not happen. Workers in Mexico, Indonesia, China and India are nothing more than indentured servants working for 3 dollars a day. The last piece of the middle class left is the public sector and they want us gone and access to the trillions in our pension. The global elite are parasites jumping to host to host. Public workers are the last host. The public campaign against them is disgusting, they are the sacrificial lambs to divert attention away from the thieving Wall Street bankers who collapsed the world economy with their quadrillion in debt and derivatives. Congress is completely complicit. You guys are useful idiots to the elites who are letting you beat the war drum against the last of the middle class. I paid a ton into my pension and my employer matched it. It is part of my compensation. Whether you want to believe it or not, Police, firefighters, teachers, judges, garbage collectors, street workers, doctors, nurses, lawyers, and administrators will not work for free. The state and local governments have to pay them, and the taxpayers of California expect a certain level of service. CALPERS puts out public actuaries every month that show how much money is in the accounts, this is not a hidden conspiracy. If you want to get mad, get mad at the right people. Not some 40,000 a year cop!
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Carl Herman
/ June 18, 2012Dave: third request to read the data and answer how a $600 cash and investment fund is helpful when California’s $27 billion pension cost receives just 4% of its funding from that “fund”. Members contributed $7 billion. Taxpayers $19 billion. What do you have against public knowledge of these monies and independent cost-benefit analyses to maximize benefits for cops and teachers?
2nd issue: I’m a leading writer in support of Occupy to recognize the crimes of the 1% centering in war and money, arrest the obvious criminals, and engage in good faith policy for 100% of Earth’s inhabitants: http://www.examiner.com/article/why-occupy-a-government-economics-teacher-explains
And again, don’t make me ask you a 4th time to LOOK FOR YOURSELF the lie you’re being told as to the purpose of the cash and “investment” funds.
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Carl Herman
/ June 18, 2012You posted the exact same lies at the link below, Dave. I answered you by repeating the info in the link that the California pension fund cost $27 billion, and the $577 billion “pension fund” contributed a net of $1 billion.
So $577 billion pays 4% of pensions, and you say reconsideration of that money is “raiding”???
Rather than addressing the facts, you repeat the lie here for Clint.
Hmmm, I guess being a minion must have a nice pension plan for you to tolerate such reprehensible work. Ooops, I guess “pension” in the long-term is the karma/judgement you face. Those benefits will be necessary for you to receive, but I don’t think you’ll enjoy them.
Again, Dave: better take a “Scrooge conversion” while you have time.
http://www.washingtonsblog.com/2012/06/cafr-summary-if-600b-fund-cant-fund-27b-pension-16b-budget-deficit-why-have-it.html
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Dave
/ June 18, 2012I gave my stance on this above, but responding directly to the pensions being OVERFUNDED, could you please send a letter stating that to The California Republican Party, and David Koch? They all feel that it is severely under-funded and are currently spending millions to reform it and cut all the pensioners benefits. I hope you are successful in convincing them, because this is getting old!
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Dave
/ June 18, 2012BTW guys, I am a public employee, a fiscal conservative and a 28 year Republican. Any public employee who is not a fiscal conservative is an idiot, because our paycheck depends on the solvency of the government entity that we work for, and we all pay the same taxes and hate it. We are not the enemy.
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Carl Herman
/ June 18, 2012Dave, with all respect, anyone and especially you should use the link, understand a few lines on the CAFR, then you can see for yourself and communicate with whomever you wish. The Rep “leadership” is the right arm of one fascist/1% political body. They do not want our success; they want our obedience to ask them what to do and to believe them when they demand our austerity and debt slavery.
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starvebitchitshollywood
/ June 19, 2012Reblogged this on STARVEBITCHITSHOLLYWOOD.
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usedtobesupermom
/ June 22, 2012You’ve done it again! Thank you for all you do!
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Aruba
/ June 23, 2012An impressive share! I’ve just forwarded this onto a friend who has been conducting a little research on this. And he actually ordered me dinner due to the fact that I discovered it for him… lol. So let me reword this…. Thanks for the meal!! But yeah, thanks for spending time to talk about this topic here on your web site.
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John B. Egan
/ December 8, 2012I’m not up on all those amounts or programs, but the ones I am aware of seem reasonable and probably shouldn’t be touched. Is the author suggesting the State should take over the Calpers Pension fund which is supposed to be invested for returns that pay for retirement? Or the Earthquake fund which does the same to pay for future claims? Various building funds to pay for future construction and maintenance? Maybe I’m missing something in the article. Interesting nonetheless.
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realitybloger
/ December 8, 2012The State already owns the pension fund, not the people or employees. Those billions are not employee contribution (which go to pay benefits) but are the taxpayer contributions that are forced to be paid through taxation. (See “The Great Pension Fund Hoax” on youtube). Does it take 600 billion to pay 2 billion in benefits?
These funds are nothing but a way to avert taxpayer monies into investments, which then go to prop up foreign and domestic corporations through corporate bonds, etc. So yes, the author is suggesting that government is mismanaging funds.
My new documentary will explain the whole game, due out in the near future.
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Carl Herman
/ December 8, 2012Yes, “John B. Egan,” you are not “up” on this topic and haven’t done your homework. The 2011 California pension cost was $27 billion, with their ~$450 billion “investment” fund providing just $1 billion net income to the $27 billion cost. Therefore, these funds should be highlighted to the public and professionally and publicly reconsidered.
Documentation of the pension cost portion of the CA CAFR here: http://www.washingtonsblog.com/2012/06/cafr-summary-if-600b-fund-cant-fund-27b-pension-16b-budget-deficit-why-have-it.html
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CarlosMurphy
/ December 9, 2012Reblogged this on alternative economics.
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fjerins
/ February 22, 2013The sad part of this is that no one really gives a damn. why? It’s their money and all they can think about is how am I going to make my house payment, car payment and etc. If they would take the time, I think we would have a Revolution in this state.
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Richard Charles
/ February 28, 2013Harassed by CA FTB for years claiming thousands in interest, penalties and taxes due and would like to send you informative related letters cc’s to FTB, AG, Speaker, and Governor, thanks…
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realitybloger
/ February 28, 2013Sure thing… though honestly not sure I can help.
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Richard Charles
/ March 1, 2013Thanks, attached…
Richard Charles 1994 Candidate for US Congress 2012 Candidate for US Senate, Nevada 2014 Candidate for US Representative, Nevada
“I have sworn upon the altar of God eternal hostility against every form of tyranny over the mind of man.” Jefferson drafted the Declaration of Independence at 33. TJ gradually assumed leadership of the Democratic-Republicans. He slashed government waste, cut the budget, eliminated the tax on whiskey, and reduced the national debt by a third. He served two terms and founded a university… We can do this or better today…
http://usnvrepcan.blogspot.com/
On Thu, Feb 28, 2013 at 5:34 PM, REALITY BLOG wrote:
> ** > realitybloger commented: “Sure thing… though honestly not sure I can > help.”
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Richard Charles
/ March 1, 2013Now that CA is the highest tax state in the land,
let’s look at what’s happening to the largest wealth creators:
http://www.cabusinessdefense.org/
http://www.forbes.com/sites/travisbrown/2013/02/28/for-entrepreneurs-californias-tax-code-becomes-the-roach-motel/
Could this have anything to do with the CA Governor elected by the unions bosses and the CA Speaker of the Assembly a union boss from LA?…
Will the last billionaire out please turn off the lights?
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torchwood12
/ March 23, 2013California Government Hides Billions From Taxpayers he should be arrested by police or the people.
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Peter Wije
/ April 3, 2013I was looking through the list of funds, and I can clearly see why some are not considered part of the annual budget. Take the pension funds. These can not and should not be considered part of the annual budget because these are liabilities. If we take money out of future liabilities to fill gaps now, we are left with underfunded liabilities for the future. I can see some funds that are also allocated per California propositions etc. There are still some funds I cannot understand.
So from where I stand if we blindly look at the numbers it looks like the governor is hiding 500+ billion from the California. But if you really look at the numbers he is not.
Now if one wants to talk about whether California state and cities should promise pensions to people that is a different question. But assuming that we can use pension funds to balance budgets or assume that is actual assets that can be used to balance budgets now that is a whole different thing. So how have we done using Social Security Trust fund to balance our Countries budget? You see the problem, now we have a Social Security Trust fund with Trillions in paper, but its already spent.
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realitybloger
/ April 3, 2013I understand your concern, and even understand why your opinion is as it is, for this is the lie that is propagated to the public about the nature of pension funds. I would suggest you watch my documentary, The Great Pension Fund Hoax for a detailed look at pension funds.
In reality, the 270 billion dollars that is invested in CalPERS and the 200 billion that is in CalSTRS pension funds has nothing to do with paying for benefits, which total about 9 billion each year.
Calpers made a 27 billion gain in its investment pool after all benefits were paid to employees and retirees. So do you still think that these assets as investment funds (pension funds) are “liabilities:? How can they be liabilities if they are making massive profits after all liabilities are paid???
The truth is that pension funds grab TAXPAYER money out of the taxpayer base in order to “match” or pay for pension obligations – laws created to steal money and put it in the pension system. For every employee of the State, more money gets exacted from the public to pay into the pension system.
But here is the kicker… the employee has no equity in that money! While he or she can quit or get fired and take back what he contributed to the fund, the entire taxpayer contribution stays in the fund, and the employee cannot touch it. millions and millions of federal and state employees, each one supported by taxpayer money, and some pension funds do not require employee contributions, only government (the people) fund them with taxmoney. Ive seen the ration of contribution from 100% matching of employee funds to 45oo% of matched employee funds from the tax base. The employer is government and government is funded by taxmoney.
Now, with that said, it is your perception that is the problem. You perceive the good intentions of the pension system, and don’t comprehend the true corporate nature of it. You find justification for the above to support “retirement”, even though the purpose of pension funds was to extract taxmoney and invest it worldwide to build up the entire global economy for which pension funds are the largest holder of stock. And you, who may or may not receive a pension, believe that I (who does not recieve a pension) should pay for those employees who do. Why should I pay tax money to support a pension system that does not benefit me in any way, shape, or form, and in fact harms me by consolidating power and wealth into government hands?
Finally, you should know that if (or when) States begin to declare bankruptcy, which in my opinion is part of the master plan to rape the people once again, the pension system for that State will be taken, and no employees will see any of that money for retirement. Remember, a “contribution” is literally the act of giving away your money voluntarily. You do not own the money you have contributed, and can only get it back if you live long enough (which the fund hopes you don’t) and if the corporation doesn’t go bankrupt.
Again, the pension fund balances are not liabilities. The fund does what is called projections to guess what future liabilities will be. But as of today, any funds within the pension fund are profit.
I hope this helps…
-Clint-
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Rich
/ April 6, 2013Nice to see someone else who comprehends the big picture.
Really. the only solution in Ron Paul’s:
accumulating copper, silver and gold in hand as Constitutional real sound money…
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Carl Herman
/ April 3, 2013California’s declared budget deficit is ~$16 billion. Of the ~$600 billion CAFR surplus assets, ~$100 billion are liquid and non-pension. For the ~$500 billion so-called “pension fund”, CAFR data show that the net income of California’s “investment” strategy for 2011 was just one billion: one fifth of one percent net return. The pension cost I found for 2011 was $27 billion.
Documentation with CAFR page numbers: http://www.examiner.com/article/ca-cafr-600-billion-pension-investment-fund-nets-just-1-billion?no_cache=1365004406
My best summary of CAFR info, all started from Clint’s excellent work to document the CA CAFR in this article, and having three solutions to our situation in reforms of money, credit, and cost-benefit analyses of the total CAFR trillions: http://www.washingtonsblog.com/2012/06/cafr-summary-if-600b-fund-cant-fund-27b-pension-16b-budget-deficit-why-have-it.html
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Larry
/ December 14, 2014Good information Clint, The state says they have more liabilities than assets they say. So what if the state has over 240 billion dollars in investments, the state has 400 billion dollars in liabilities, the state says. What’s your response? How much is the states liabilities for its pension fund? I didn’t see that in this article. Its in your video i know, but i don’t have 4 hours to watch a video. Whats the short answer? Thanks.
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Walter Burien
/ May 27, 2012Carl put out a good article. The one thing I disagree with said in his article is: “Until the 99% demand arrests and justice, the 1% will continue to loot, lie, and demand we accept austerity on our knees.”
I will repeat what I said above in this string:
“”Ever hear the expression: “Don’t bring a knife to a gun fight” ?
Well, the humorous aspect of the way things exist today is that government has convinced us all to: “Bring paper to a gun fight”
They arbitrarily ignore, wear us down, take our wealth, pay themselves more for doing so, make their decisions in their own favor, and then If we do not like it, they use the guns against us.””
Walter Burien – CAFR1
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Let's Get Honest
/ December 10, 2012That was a pingback from my blog. RE: Public Workers — they come in different stripes, but you are not the final host. Some of the bottom of the food chain are parents being ground through the court system — which is being run, in reality, by PRIVATE not for profit trade associations which organize to lobby for changes to the law (literally) which favor their colleagues.
While on the street level, it’s getting worse, and more people being put on the street. I’m talking literally — we never had a real shot at even expecting pensions, some of us, in this scenario. And that includes some formerly middle-class professionals.
Please go and re-read Walter Burien’s Apr 2012 post on how the Government Bypasses its own Monopoly Laws. (http://cafr1.com/Monopoly.html). But not before reviewing the 1, 2, and 3 of the main page: Taxation, Investment Returns, and Enterprise Operations exist to generate revenue sources. It’s basically centralize the wealth, control it in private hands (the nonprofit trade associations of public employees), and presume that the dumbed-down public has no real need to know about government operations, or processes.
The conflict you are going to continue having is with those who believe that it’s in all our best interest to continue letting the largest owner of the world’s infrastructure and wager of wars continue to direct our own economic futures. It’s simply not. Period!
NB: One thing I caught several mediation (court-related) groups, with big mouths, doing — is forming multiple EIN#s under one basic trade name. They are functioning as nonprofits, some get grants, some are privately sponsored, and it’s a maze to figure out. No one usually has the persistence to, and if a person had the persistence, they wouldn’t have access to the best tools to do so.
How many examples of fraud over how many years are needed to figure out something isn’t right about it, and perhaps we are trying to be friendly and socially acceptable with the wrong group of people?
We do have slave labor in this country (prison population) and child-trafficking through the courts, and a lot of things that are “not nice” to talk about in public society. Talking about them might cost something in professional status, I can understand why looking for a middle ground is more appealing.
However ,for some of us, there is no more “middle ground,” to stand on, nor do we have more pieces of our lives to sell off a chunk of in hopes that it will appease the government entities which don’t have our best interests at heart now, and haven’t all along.
From the site posting a 1999 letter from G. Klatt to Mr. Burien:
Click to access 1KLATT1999-Read.pdf
“…all prior and currently active government representatives: Governors, Senators, Congress, City Councils, County Board of Commissioners, State treasurers, School Commissioners, not one that I am aware of brought forward for public consumption a CAFR review. Over the decades, all government representatives cooperated and are still cooperating with the “silence is golden” rule and in “fact” they never have made simple and conspicuous public mention of the CAFR. Gerald was “the FIRST” to do so. True force in breaking the syndicate’s non-disclosure, is needed here.”
“Please let the fact of Gerald’s effort and the cooperative silence of all others within government; syndicated media; and political arenas sink into your minds and cognitive thinking to genuinely realize the “scope” and “size” of the massive corruption involved whereby this organized silence has been and continues to be the standard across the land
.. . .
“In plain and simple language: Over the decades they were sneaking cookies from the cookie jars. With the population learning about hidden cookie jars, the syndicate is moving full force to move; mask; and keep all of the cookies in their control.”
Everything I was researching independently before hearing about this, and have been seeing since, seems to affirm this — our own government is being run as a criminal racket — because we didn’t know where to look, and, now that we do, people are not willing to make the correct attitude switch, complete with indignation at having had vital information withheld (needlessly) and a determination that this will no longer represent “business as usual.”
~ ~ I’ll continue posting as I can. As an abuse survivor, I know that the most dangerous times is when you begin “outing” it and standing up, speaking back, etc. I hope that registers — the time is now to figure finish posting this information and figure out — then move on — logical responses to it. From what I can see, Walter’s TRF idea makes a lot of sense. But it requires a consensus, and there are decades of dumbed-down, over-educated “take it on faith” employees not willing to face the overall facts.
People still do die under mysterious circumstances, and given who owns the media, I take reporting on it with a grain of salt. I recommend organizing and reporting with people you actually know, individually — not just on-line.
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