Detroit: The Latest Bankruptcy Lie

In case you haven’t heard, municipal bankruptcy is now all the rage. When smaller municipal corporations (only corporations can declare bankruptcy) had little resistance as test cases for these outrageous claims of fraudulent bankruptcy and default, the larger municipalities gained the confidence that the financially illiterate cesspool of people as citizens don’t know there heads from a hole in the wall when it comes to the financial reporting apparatus of government. The people were determined to be sufficiently ignorant of even the basic checking account balance of the general fund in their local governments and school districts, let alone the massive collective government investment scam robbing them of the entirety of their wealth, making it reasonable to assume that these municipal corporation’s financial position would likely never be challenged by that clueless mass of the indentured. And so the latest trend of conspiracy and fraud against those debt-slaves continues… this time in the not so great City of Detroit.

Considering its checkered past; riddled with the disappearance of industry to U.S. funded infrastructure economies like Mexico and China, it would seem to the average citizen that Detroit should have done this bankruptcy thing long ago. Of course, the fact that it did not declare its bankruptcy at all was because this municipal corporation has never been bankrupt, and certainly is not anywhere near being able to claim that legitimate legal declaration today.

And yet here it is, making that very declaration…

This is very important because the legal statement of bankruptcy means nothing as a mere “declaration” until a government court makes that determination to cause it to be official. Thus, the obvious conspiracy of a government appealing to government to get government permission to default on its debt should not be lost on the reader; though in general this governance of government by government itself seems perfectly normal to most people – a regulatory body operating in a completely unregulated fashion as organized crime. Inherently, of course, this self-governance and self-regulation by government and its BAR judicial is nothing if not a breeding ground for the worst kind of corruption and greed at the expense of the governed. For the people in their state of fear, entertainment, and confusion are certainly not regulating those regulators…

And a corporate judge of the International BAR Association will decide, not the people being defaulted upon.


ALIPAC printed the following “facts” facts about Detroit that on the surface are absolutely mind-blowing…

1 – Detroit was once the fourth-largest city in the United States, and in 1960 Detroit had the highest per-capita income in the entire nation.
2 – Over the past 60 years, the population of Detroit has fallen by 63 percent.
3 – At this point, approximately 40 percent of all the streetlights in the city don’t work.
4 – Some ambulances in the city of Detroit have been used for so long that they have more than 250,000 miles on them.
5 – 210 of the 317 public parks in the city of Detroit have been permanently closed down.
6 – According to the New York Times, there are now approximately 70,000 abandoned buildings in Detroit.
7 – Approximately one-third of Detroit’s 140 square miles is either vacant or derelict.
8Less than half of the residents of Detroit over the age of 16 are working at this point.
9 – If you can believe it, 60 percent of all children in the city of Detroit are living in poverty.
10 – According to one very shocking report, 47 percent of the residents of Detroit are functionally illiterate.
11 – Today, police solve less than 10 percent of the crimes that are committed in Detroit.
12 – Ten years ago, there were approximately 5,000 police officers in the city of Detroit. Today, there are only about 2,500 and another 100 are scheduled to be eliminated from the force soon.
13 – Due to budget cutbacks, most police stations in Detroit are now closed to the public for 16 hours a day.
14 – The murder rate in Detroit is 11 times higher than it is in New York City.
15 – Crime has gotten so bad in Detroit that even the police are telling people to “enter Detroit at your own risk“.
16 – Right now, the city of Detroit is facing $20 billion in debt and unfunded liabilities. That breaks down to more than $25,000 per resident… As Detroit Emergency Manager Kevyn Orr noted last week, it took a very long time for Detroit to get into this condition…


Of course, this article like all others doesn’t mention the legal crime operating behind these horrific scenes and reported in the Comprehensive Annual Financial Report (CAFR) – what I have nicknamed the “Achilles Heel” of government. While these facts and figures are certainly important as to the physical state of Detroit, the absence of public information on the actual financial state of that fictional municipal corporation government called “City of Detroit” is never discussed due to the overwhelming lack of exposure and coverage by every news outlet in America about the financial statements required by Federal law for every government entity and corporation in the United States. The greatest open secret in fascist history remains open and secret. In short, these municipalities across the nation in every State have exacted, extorted, and excavated all of the wealth of the people for its organized and collective investment schemes that, not ironically, are only disclosed in the CAFR of government. And collectively the over 230,000 local and state government entities across the nation have been legally required to funnel taxpayer money into investment funds that ultimately never benefit these local or state governments or their people. Instead, they invest in “emerging markets” in countries like Mexico and China  – which soon will become the largest economy in the world thanks to the ignorance of the very citizens of the United States that have no idea this has been happening for over 70 years.

One would in general look at the above factoids about Detroit and justifiably assume that the decaying state of that City is a direct reflection of the similar financial state of the government corporation that controls that area. This, however, is patently false – a fallacy built up through media and political misrepresentation.

The true culprit of that misrepresentation is in the form of the hand selected “budget report” that is delivered to the people publicly each year. The people are never told that this “budget” is actually not the original and main financial statement that is created by governments and audited by independent accounting firms. You see, the budget report is nothing but an intentionally dumbed-down version of the Comprehensive Annual Financial Report (CAFR), which is filed each year as a requirement of the Federal and State legal codes.

What does this mean?

It means that the budget is merely a reflection of what I call the “creative accounting” that is applied to the audited CAFR report so as to make the budget report appear to be in a state of decay, debt, default, and loss. While the CAFR may show assets of millions or billions in cash and investments, the budget report will be creatively manipulated by this special creative accounting process to create an illusionist “balance sheet” that somehow, incredibly, and magically turns an asset into a liability.

Detroit is of course no exception to this rule. For the decaying state of this city has very little to do with the financial state of this municipal corporation. But the fallacy remains that as the city decays so too does the financial state of its government.

Here is a link to the City of Detroit’s 2012 CAFR:

**Note that this website takes you to the Detroit government (.gov) website.

While I will not go into the full detail of how this corrupt Municipal Corporation of organized crime has gotten to this point, I will just point out the most important factor in determining whether or not this corporation is actually bankrupt – a factor that I guarantee will be ignored by the government court and bankruptcy judge in this case if the people do not finally rise up and demand that Detroit pay its debt today instead of defaulting on it. That factoid is the promotion of its future debt payments as a current liability effecting today’s balance sheet. The fact is that 99% of the entire structure of municipalities across the nation could be out of debt tomorrow and still have money and investments to spare (be in the black) if it weren’t for the fact that governments enjoy, promote, and profit from the interest (usury) created by debt. In other words, instead of using the money it holds today for services in its investment funds, a government will create a municipal bond and pay that loan off over 20-50 years at interest. Sometimes it is other governments across the nation that are funding those bonds, sometimes banks, and sometimes Public Private Partnerships (PPP) are created in agreement for the loan by private or publicly traded corporations. Ironically, that money that government could have used in lieu of that loan to pay for that service is often invested in such things as corporate bonds – loans to governments, banks, and private and publicly traded corporations. And these bonds are bundled and sold as securities on the bond markets as commodities – debt contracts worth a future value. And the investment scam continues while televisions pump digital airwaves of Stars dancing and Idols singing.

On page 41 of this CAFR we see the illusion blatantly spelled out for us in the basic “Statement of Net Assets”. Of course, this is not the full disclosure of investment fund totals for the City because of other creative accounting within the CAFR designed to minimize those balances shown on this chart, but it shows the scam very well in its full corrupt glory.

The City claims to have over $10.6 billion in liabilities, which it then “balances” against about $10.3 billion in assets. This leaves a “balance” of assets that gets shown to the people of a negative $3oo million dollars.

Just one problem though…

You see, most people would simply consider this balance as the cash balance of the government, having no clue about the investment scam their government has participated in for decades that funnels taxpayer monies out of the taxpayer base and into governments investment funds.

This CAFR is for the 2011-2012 fiscal year, ending June 30,2012.

But it reports for the fiscal year 2012-2013, which will have ended in the month of June this year (2013), the actual current liabilities (due within one year as of June 2012) – which represent debt payments for that fiscal year that would be paid in that 2013 fiscal year ending June 2013. And that “current” debt for the fiscal year only amounts to about $309 million TOTAL.

This means that the other $9.1 billion dollars listed here as “due after one year” is all future debt payments that will basically amount to somewhere around a $300-500 million dollar amortization schedule for the next fiscal year and so on. In other words, for the 2013-2014 fiscal year, Detroit’s actual “current liabilities” are only $300-500 million dollars. The rest of that $9.1 billion still is not due until future payments are made in 5, 10, 20, and up to 50 years in the future!!!

If this is not clear, this means that the over $9 billion in future debt payments to be made has absolutely nothing to do with the financial state of the government today, or even within one year of today.

And yet those payments and future debts are somehow effecting the current balance of today (June 2012)?

Can you say creative accounting?

Can you say FRAUD?

Can you imagine if you told the IRS that you have earned no money this year because you have future debts to pay in 10 years?

You’d go to jail… but this is legal for government!

The trick here is that, as with all municipalities across the nation, by law these governments are able to and encouraged to not include future assets in the form or fees and taxes that will be collected in those future years that will certainly pay for those future debt payments. So here we see that government is claiming a future liability as a current liability, and yet conveniently disregarding the projected future assets it will receive in the future as current assets to balance the future liabilities.


So what is the true financial position of the government of Detroit?

It can pay off, if it chooses to, all of its future debt today with its current assets.

Of course, this would mean that the interest charges on that future debt and bonds would not be accrued in the future and therefore would not be paid out, bringing the actual total liabilities due today (without future interest charges attached) significantly down it total, since by paying off that future debt today no interest would be charged for anywhere from the next 10-50 years.

For an in depth explanation of this creative accounting trick and how you can identify it on your own municipal CAFR, see my research here:

And check this out to see where your tax dollars really go:

And so here we stand, another high profile municipality pretending to bite the dust while hiding its real wealth under false accounting principles that are allowed at the very top level of the federal government. Detroit City will act upon the purpose of its incorporation by utilizing the “limited liability” function of that privilege – a privilege once only granted to honorable men who sought to improve and strengthen all men, not just themselves. And this protection of government called incorporation now protects crime instead of the people who are harmed by that crime. For all of government is naught but a limited liability corporation collectively organized in harming the people.


At this point it has been reported that the Detroit government is tearing down up to 350 abandoned homes and buildings per day in that city. Its plan is to create a “model” Agenda 21 city; a green city; one that is built towards the sky with compartmentalized condo housing instead of sprawling out from its center where land may be enjoyed by single family dwellings. This re-imagining of city life will become a beacon of the future of “smart growth” and the “smart grid”, matching lifestyle and technology to create the perfect Orwellian fit for those who love to love their biometric servitude and love to be on camera. It will be a model city built on retracting individual rights in lieu of the collective good of the citizenry as is laid out in the U.N.’s Declaration of Human Rights that has all but usurped the constitution of the United States – this is the future of Detroit Rock City and likely a city near you…

The economic fallacy that growth equals a good economy ultimately and ironically requires the destruction and pestilence we see in Detroit. And so, in order to grow the new city, the old one must be destroyed to make way for the ever-growing economy. It is in the best interests of the government corporation and its investment scheme for this to happen. And even more frightening to contemplate is that bridges, roads, tunnels, buildings, sewers, water, electrical, and other infrastructure is more profitable in decay for that investment scam than it is as a well-maintained infrastructure. Destruction and decay requires investment and promotes growth. This is the model of government and its “economy”.

Detroit is not bankrupt. It has created the illusion of bankruptcy by such common financial trickery as pension pre-funding – where future debt payments must be paid in advance so that government can invest that taxpayer money instead of using it to fix up the broken City. Congress used this same trick to make it appear that the Federal Post Office is broke, while in really it just created legislation that forced the post office to borrow money from government and corporate sources to pre-fund the Federal Pension funds instead of paying the normal contributions over time. In other words, government is forcing itself to pay future liabilities today – which just happens to have the good-for-government and bad-for-the-people side effect of creating the unnecessary illusion that bankruptcy is needed. And so government is now the largest defaulting entity in history. And the people blindly support what they don’t understand, allowing that fraudulent government machine to place the responsibility for its actions upon the backs of those people in the form of sheer usurious debt, while laughing all the way to the bank.

Imagine such greed and opportunity that would make men in the public trust force the bankruptcy of a city just because they don’t want to wait to receive their pension payments by taxpayers in the future. While this would seem counter-intuitive (destroying a city to support city employee pensions), the truth is that this is just business as usual. For government is not in the business of helping people. It is a financial mega-corporation with branches in every square mile of the United States – with investments in the entire world economy.

How many times do I have to say it…?

Government is nothing but the organization of crime. For a government that creates, adjudicates, enforces, and exempts itself from its own laws is thus lawless – a mafia above its own prescribed laws. When the law is lawless, there is no law.


–Clint Richardson (
–Saturday, July 20th, 2013

Leave a comment


  1. Reblogged this on Scanned Retina Blog and commented:
    This problem is much greater than most are prepared to accept. The deception is simply beyond comprehension.


  2. In your ending statement you said: “a mafia above its own prescribed laws. ”


    They still have a code of honor and ethics.

    Additionally you will not find elected and appointed attorneys primarily running the show as you will in Government. The Mafia hires attorneys as consultants only. They know better than to let them run the show.


    • Clint: PS: So if “income” was now extended out 25-30 years as they are doing with their liabilities, after accounting for normal operating costs, how many billions in the black are they at year 25?

      Also, without accounting for “projected” liability 25-30 years out, what is their “standing” wealth base in billions of dollars at this time?


    • AloneInTheCrowd

       /  July 24, 2013

      hi walter

      i really appreciate the work you have done (and clint’s as well)

      at you site, there is no email to contact you, are you available for contact?



  3. I read the pdf file for Detroit’s 2012 CAFR
    and I must say they have made the effort to overwhelm and hide the financial investments. Help us out Clint, with an analysis of this with a detailed investigation of the Detroit CAFR.
    I note the $5.1Billion total investments on the Statement of Fiduciary Net Assets, Fiduciary Funds page.
    What “Fiduciary” cash and convertible to cash assets can be immediately made available to the Detroit People?

    Thank you, Clint, again for sharing the information.


  4. Thanks, Clint. You’re among the heroes for humanity.

    It’s an odd life, but what can we do but explain, document, and prove obvious crimes of fraud in the collective trillions while inviting public recognition of the obvious.

    Step-by-step, brother; as best we can see the path forward.


  5. So in simple terms, if the cool kids can roll Detroit and get away with it, they’ll just keep keeping on… Kevin Orr, it’s down to you Mr to clock what’s happening and “wake up and smell the coffee” and if you can’t, I think Kathryn needs to take her investigative skills and clean up that city

    Why does this have some cartoon superhero feel about it… this is real fecking life people!


  6. The bankruptcy in Detroit is complete B.S. I got curious when the NY Times story came out and so looked up their CAFR 2012. Anyway, there’s $5B in the Detroit pension fund alone. The claim is that it is $9B short, but that includes liabilities years out, since the payouts are only half a billion that year. So, at a roughly consistent rate of payout, and assuming no increase in the pension fund (not so hard to believe since the fund lost $.4B from 2011- 2012, even while the stock market went up nearly 20%. WTF!), it would take 10 years to fully exhaust the fund at that rate, and then, there’s a little matter of additional money in the form of taxes (remember those) during that 10 years too.
    First, the pension fund returns are awful, and THAT, and not the payouts, is the real story here. But no one will take on Wall Street money (mis)managers (see below).
    Second, a Public Bank would be a much better, and counter-cyclical, investment, that would invest in the city/state.
    Third, no one wants to withdraw money from Wall Street brokerage houses, least of all Comptrollers and Treasurers who want a job there later.
    All of this is on page 178. I especially like this line:
    General Firemen
    Retirement Retirement
    System System
    Amount Due to Broker for Securities Lending $137,864,912 $336,556,836

    Nearly half a billion due to brokers for “securities lending” whatever the hell that is…
    Of course, this doesn’t even count money in other Detroit agencies, and State agencies and pensions….
    And it doesn’t address the fact that Detroit is surrounded by some of the richest counties in America, according to an article just today by Robert Reich: Are some of those residents holders of Detroit bonds? Of Detroit land (for future development once they clear away those pesky poor people)? Follow the money…

    Clint & Walter – I’m going to use your excellent information and write my own much shorter article for Opednews. You guys really have to get to the point faster!


    • Clint & Walter:

      I’m going to be blunt and to the point: I’ve read your CAFR articles over the years–and the articles don’t prove themselves–only because they’re poorly constructed. In short: you need an Editor.

      If you were writing a novel–I couldn’t follow it. I kind of get what you’re saying–but you lose me.

      Call me an idiot, but actually I’m smart enough to understand more complex scenarios in IT (or computer networking). Trust me when I say, that if I can’t figure out what you’re saying–most will not. Most will just give up and say, “there’s something there to that CAFR…but I don’t see it”.

      I’m willing to help you edit (I’m no official editor but was a very effective computer trainer due to the fact I could communicate extremely well, and to the point).

      I know I’m not alone with my appeal to you to get an editor to essentially “prove” your CAFR idea. To me, and most, it’s just an idea (CAFR) until you can prove it in an easy to understand (and short–to the point–document).

      Until you can produce such an document–CAFR will never catch on.

      Contact me by email if you like. I’m not going to debate you on this subject, as it’s my responsibility as a reader–to tell you “I don’t follow what you’re saying”–and it’s your responsibility–as the “trainer”–to change your approach until I do follow you. That was my attitude as a trainer, and it worked wonders. In short, the trainer’s real job is to adjust their communication until the student “gets it”.

      Thanks very much,



      • We all do what we can, how we can, with what we have and what we don’t.

        In my experience, if it’s easy to understand, you are probably not on the right path to understanding.

        While I appreciate the comment, and agree and would love an editor, editing will not make the information any easier to compute. When a conspiracy is so vast and so well hidden, nothing that is easy will ever uncover it. And after almost 4 years, I’m still trying to figure it out. Only difference is that I don’t give up.




        • Dayna

           /  July 24, 2013

          Agreed! Read more and all will begin to make sense. It’s a matter of understanding how language is used to manipulate, confuse, coherse etc. I think your work is perfect as is Clint!


          • Clint, I agree with both of you on this one. It is not easy to understand… because the subject matter is, in the end, quite difficult. You can change it sure, perhaps it would make sense to one crowd to do that, but for others it may make it a bit harder. Question is… simple math… We all know it like the back of our hand… but how long did it take for us to learn? That being said… simple math… many really have no idea how to do simple addition, multiplication etc. Long division? NOBODY knows how to do that. So there are many forces at play. The difficulty of the subject matter IS the reason it doesn’t catch on as fast. If there is no footballs, naked women, pictures of celebrities etc. Then people have a hard time with it. I am the same with this subject, it is hard, but slowly it comes around, as clint stated… it has taken him years. Just like the public. Look at the fact we KNOW smoking kills… but people still do it. We look at the fact that none of this is on the news, and, for all intents and purposes 2 people are onto this subject out of…. 7 billion. Thus, we may want to point to other factors. Clint, my advice, show some football hilites and pics of celebs mixed in here and there, perhaps allow beer and coffee refills while people read your stuff.


      • Yes, I agree. I’ve been an economic reform activist for 5 years now – proposing Sovereign Money (debt-free, the way U.S. Notes were, and coins still are), Land Value Tax reform (1/3 of the GDP is in rent-seeking, mostly on land and related resources, including location and pollution), Public Banking (to return tax dollars to the state to create its own interest and not to fund TBTF banks that need bailouts), and finally, CAFR reform (to reallocate money the government has already invested, back to the citizenry as a permanent dividend or even refund. It is highly questionable whether the government should act as our collective “investment adviser.”)
        It’s not hard to explain these concepts succinctly. I did it for all of these, plus one more: offshore tax repatriation, in a one-page flyer I handed out to hundreds of people, and posted as an article on HuffPo and Opednews:
        with appropriate links for followup.
        Some points to keep in mind when writing on complex subjects:
        1. Decide on your point early on, and don’t stray from it.
        2. Don’t rant. Trust the readers’ intelligence to understand the injustice without being beaten on the head about it. It’s OK to show emotion – and good, in fact – in writing, but a rant soon becomes boring and COTO.
        3. Don’t repeat. If you made your point, move on.
        4. Provide links to more research, but don’t bury a new reader in endless details. Most people new to a subject won’t want such detail.
        5. One thought, maybe two, to a sentence (one is much better).
        6. Short paragraphs.
        7. If you can’t express the idea of reform in 2-3 lines, it is too complex to ever be enacted (see above for examples).
        8. Use graphs, charts and stats sparingly, but effectively. A picture is worth a thousand words. Make sure they are the words you want to convey.
        9. Use personal examples. People will identify with the businessman who loses his business due to high and unnecessary taxes, more than with broad over-reaching statements like “they are coming to take it all away!” It’s just the way humans are wired. Get used to it. (I have to watch this one more myself).
        10. Take the reader on a journey by leading up to a conclusion, step by step. Don’t assume knowledge up front and then rant about it for pages.

        CAFR reform is one of the biggest economic reforms available to us, but it unfortunately requires tedious forensic accounting to understand (I’ve done some of this myself and the public banking people, at least, want me to serve as a sort of “expert” on it for using that money to create public banks). A few more real-world examples, and a lot less “bang the drum” would be very helpful.


  7. wayne

     /  July 21, 2013

    Walter! Great to see you here…I study both you and Clint very closely and appreciate the diligence and hard work it takes to sift through the vast amount of BS to uncover the scheme perpetrated by sociopaths. I’m sure by now you two have it down to a science, but I can truly attest to the effort, knowledge and patience it takes to see the “light,” and most importantly, within the complex, convoluted legal structure, understand the matrix that compels us to serfdom. Much like the barons, it is our duty to hold these people accountable. As noble as this sounds and with the information and knowledge you prepare for us, I am concerned with society’s ability to comprehend and enforce principled resolution or legal remedy. And from the deepest part of my soul, I thank the both of you for your patronage to our country; not the corporate cesspool of scum that have taken advantage of a principled republic. Or at least that’s what it could have been.


  8. sara

     /  July 24, 2013

    What happened to all the people, did they move to Oklahoma or California? The place is miserble and lifeless with trees and no birds,a sad fate of a once thriveing city, now gone. tata


  9. You are doing such incredibly important work Clint. Talk about taking the red pill!


  10. CalDre

     /  July 24, 2013

    So much to comment, so little time …

    “Governemnt” comes from “govern” and suffix “-ment”, which is used to convert a verb to a noun, implying “the state of” (compare, e.g., internment, confinement, debasement). See

    Any entity type (corporation, partnership, LLC, trust) or any individual can declare bankruptcy. Some chapters are reserved to particular types of entities (e.g., Chapter 9 is limited to municipalities, rather than “corporations”). See

    “Debt-slaves” – well as “slavery” does not permit emancipation by simple declaration, obviously citizens who can declare bankruptcy through their municipality aren’t debt-slaves.

    Well, trying to make sense of this rambling diatribe will stretch any logician’s capacities to the core – better to ignore it. But yet I commented ;).


    • LOL!!! I clicked on your wiki link and the first thing its says about the word ment: From Latin ment-, stem of mēns (“mind”).

      Shall I go on…?

      Simply the act of calling a “municipal corporation” just a “municipality” does not in any way change the corporate structure of the municipal corporation. Perhaps you should get your little wiki out and type in the words “municipal corporation” and learn a bit. And while you are at it, you can also look at the corporate “charter” for your municipal corporation. That’s explained in the wiki-verse as well.

      A chapter 9 bankruptcy is for municipal corporations, not citizens. Citizens do not benefit in any direct way from a municipal bankruptcy. In fact, government can do things that are totally illegal for citizens to do, which is what Detroit is doing. A citizen would go to jail for making Detroit’s false claims. Government defined the word insolvent differently for you and I compared to governments.

      A debt-slave refers to the dollar itself, and the interest and debt attached to it before it is ever even circulated. Bankruptcy is a legal status for corporations (including persons) for personal debt. This has nothing to do with the national debt. And again, citizens do not declare bankruptcy through their municipality, it’s federal (interstate commerce is effected) because artificial persons (citizens) are federal, not municipal. It is not the man, but the corporate person that attains the legal status of bankrupt. The man is surety to the person.

      I can see where, if you have not read my blog and other posts on the CAFR, including the 250 page breakdown of the Stockton Bankruptcy, you would think this is diatribe and rambling.

      Perhaps you would be a good candidate for Infowars?

      Any more comments?



      • CalDre

         /  July 24, 2013

        On definition of “-ment”, are you looking under English, as opposed to Catalan language? As I noted, the suffix “ment” is used in countless words in English – internment, debasement, confinement, retirement, placement, etc. – and in no case does it mean “mind”, but rather, refers to being in the state of the preceding verb (e.g., “debasement” means in the state of being “debased”; retirement to the state of being “retired”; confinement to the state of being “confined”, etc.

        If you cannot wrap your head around this basic etymology, then clearly any time spent trying to convince you of anything else is time best spent on other pursuits.

        As to bankruptcy, individuals can file under chapters 7, 11 (rarely) and 13. Chapter 9 is special and reserved to municipalities. See Code Section 109(c) ( “Municipality” is defined in the Code as a “political subdivision or public agency or instrumentality of a State”. See Code Sec. 101(40) ( While many states do organize cities as corporations, not all do (e.g., counties, school districts, municipal utlities, townships, villages); and even when they are “corporations”, they are not the same type of “corporations” (i.e., not governed by the same laws) which you or I may form but special ones authorized under state law. See . For example, in California, private corporations are governed by the California Corporations Code, whereas municipal corporations are governed by separate statutes (see

        Citizens do benefit from a Chapter 9 bankruptcy in an obvious way: post-bankruptcy, municipal revenues (such as taxes and fees) can be used to provide new services to citizens, as opposed to being used to re-pay pre-existing debts or other obligations.

        Making false claims in a court filing may subject the filing party to contempt o
        f court. Of course many court filings contain false claims, some intentional, s
        ome not. It is up to the adverse party to prove or disprove a claim. As it is
        a condition to the filing that Detroits is in fact bankrupt, as defined in Code
        Sec. 101(32)(C), a creditor of Detroit may have the bankruptcy petition dismisse
        d by proving the city is not “insolvent”. I am sure that some of the larger cre
        ditors would pay you a reasonable fee for your analysis of why the Detroit bankr
        uptcy filing should be dismissed, if you are able to prove it to the bankruptcy judge’s satisfaction.

        As to use of the term slave, there is nothing which legally prevents you from le
        aving the United States, renouncing your citizenship and stopping use of the dollar, While I realize it is impractical, the availability of this option proves you are not a “slave” – as a slave cannot unilaterally escape slavery simply be reouncing his bond to his master. The foregoing assumes that use of the US dollar DOES make you a slave, which is far from a given (I am familiar with the fact that the US dollar is a debt-based fiat currency, but this in itself does not make the user a slave, as easily proven by the fact that many users have far more dollars than they personally owe and these dollars empower them greatly, rather than enslave them). What would more likely make you a “debt slave”, as you put it, is the government’s power of taxation, which presumably it could use to take all your dollars; however it cannot use the power of taxation to force you to work and generate dollars you do not otherwise have, and in any case does not make you a slave (in terms of lacking any civil rights and being another individual’s property) in the historical usage of the term.

        As to pension funding, I think the rules actually make sense from an accounting perspective – it is obligatory to fund a retiree’s expected pension liabilities while that retiree is employed. The idea being, that if the employer ceases to exist in the future, or ceases to generate sufficient future revenues to fund its future pension or other benefit obligations, the retiree will still have access to the promised benefits. I.e., the goal is to avoid under-funding, which is a far larger problem with both private corporations and government entities. It is akin to a “sinking fund”. See


        • CalDre

           /  July 25, 2013

          PLEASE NOTE: I noticed you just approved my posting from yesterday as I was fixing some ambiguities and such; I attach these updates anyway below, please just replace what you approved with the below or just read it yourself if you have questions about what I wrote:

          On the definition of “-ment” in the Wiktionary page, please look under “English”, not the Catalan or other language. As I observed, the suffix “-ment” is used in countless words in English – such as internment, debasement, confinement, retirement, placement, embankment, derailment, etc. – and in no case I can think of does it mean “mind”, but rather, refers to the noun form, or being in the state of, the preceding verb (e.g., “debasement” means being “debased”; retirement to being “retired”; confinement means being “confined”, and “government” means being governed (controlled) (expanded usage of “the government” to refer to the State itself, rather than a system of control, is a normal linguistic development).

          As to bankruptcy, individuals may file under chapters 7, 11 (rarely) and 13 of the federal bankruptch code. Chapter 9 is special and reserved to municipalities. See Code Section 109(c) ( “Municipality” is defined in the Code as a “political subdivision or public agency or instrumentality of a State”. See Code Sec. 101(40) ( While many states do organize cities as corporations, not all do, and not all municipalities are cities (the term includes counties, school districts, municipal utlities, townships, and villages); and even when they are “municipal corporations”, they are not the same type of “corporations” (i.e., not governed by the same laws) which govern private corporations you or I may form, but special ones authorized under state law. See . For example, in California, private corporations are governed by the California Corporations Code,
          whereas municipal corporations are governed by separate statutes (see Note that “corporation” simply refers to a non-natural “entity” recognized as having separate legal existence under applicable law, and is conceptually indistinguishable from any other legal entity (be it a trust, partnership, or government agency) other than a natural person. See .

          Citizens do benefit from a Chapter 9 bankruptcy in an obvious way: post-bankruptcy, municipal revenues (such as taxes and fees) can be used to provide new services to citizens, as opposed to being used to re-pay pre-existing debts or other obligations. This may be more apparent to you if you live in Detroil and are lacking such services as streetlights, snow removal, trash collection, public transportation, and police and firefighting services.

          Making false claims in a court filing may subject the filing party to contempt of court and other sanctions. Of course many court filings contain false claims, some intentional, some not. It is up to the adverse party to prove or disprove a claim. As it is a condition to the filing that Detroits is in fact “insolvent”, as defined in Code Sec. 101(32)(C), a creditor of Detroit may have the bankruptcy petition dismissed by proving the city is not “insolvent”. I am sure that some of the larger creditors, such as the unions, would pay you a reasonable fee for your analysis of why the Detroit bankruptcy filing should be dismissed, if you are able to prove it to the bankruptcy judge’s satisfaction.

          As to use of the term slave, there is nothing which legally prevents you from leaving the United States, renouncing your citizenship and stopping use of the dollar, While I realize it is impractical, I raise this point as the availability of this option definitively proves that you are not a “slave” (as by definition a slave cannot unilaterally escape slavery simply be fleeing the plantation and reouncing his servitude to his master). The foregoing assumes that use of the US dollar DOES make you a slave, which is far from a given (I am familiar with the fact that the US dollar is a debt-based fiat currency, but this in itself does not make the user a slave, as easily proven by the fact that many users, both foreign and domestic, have far more dollars than they personally owe and these dollars empower them greatly, rather than enslave them). What would more likely make you a “debt slave”, as you put it, is the government’s power of taxation, which presumably it could use to take all your dollars; however
          it cannot properly use the power of taxation to force you to work and generate dollars you do not otherwise have, and in any case does not make you a slave (in the historical terms of lacking civil rights and being another individual’s property).

          As to pension funding, I think the rules actually make sense from an accounting perspective – from what I understand of Detroit’s pension obligations, under state law it is obligatory for Detroit to fund a retiree’s expected pension liabilities while that retiree is employed (and so for accounting purporses, it becomes a liabiity when the pre-funding is due). There are two conceptual foundations for such rules: the first being, that if the employer ceases to exist in the future, or ceases to generate sufficient future revenues to fund its future pension or other benefit obligations (e.g., as is now the case with Detroit), the retiree will still have access to the promised benefits. The second one being, that the current beneficiaries of state services should pay for the *full* cost of current services, including future pension obligations, rather than passing a portion of those costs onto future taxpayers (e.g., their children). I.e., the goal of “pre-funding” is to assure the employer meets future
          obligations and to avoid “passing the buck” to future generations. It is akin to a “sinking fund”. See . Under-funding is a far larger problem with both private corporations and government entities.


          • So you believe that English came before Latin? Really? Or that English is not based on Latin?

            Intern the mind, debase the mind, confine the mind, retire the mind, place the mind… Take away or jail the body, and the mind and soul atrophies. Your mind is compartmentalized, suffering from belief.

            You believe leaving the United States and becoming a citizen elsewhere (cattle on another farm called a country) is less enslaved?

            You believe that to live in America, you must be a citizen of Washington D.C.

            Do you know anything about the U.S. military rule under the Lieber Code since the Civil War (i.e. Martials of law under order 100 by Lincoln)?

            Do you understand that government’s definition of insolvent is not the same definition that you may use in court, and that for you this form of “insolvency” is illegal and fraud?

            Do you know anything about pension funds, CAFR’s, or the GAAP government accounting standards created by private non-governmental associations?

            For you, sir, may I recommend that you read my 250 page breakdown of the Stockton CAFR and its fraudulent bankruptcy, so that you may step out of your compartmentalized perceptions of government? I was not prepared to do this kind of explanation for Detroit, but it will make things clear for you if you can suspend your beliefs long enough.




            • AloneInTheCrowd

               /  July 25, 2013



            • Clint – the realityblogger,
              You are correct in your ideas and statements.
              Cal Dre is arguing from a narrow perspective: he selects definitions literally and defends his arguments with them instead of extending the essence of the definition to other things. : for him a “slave” is a person who is forced to work for nothing, although given food, shelter and clothing by the slave owner. For Cal Dre it is nothing more.
              It is not the sword that kills, but the person using that sword. Same with guns. Cal Dre would say that it is the sword that kills because you can not be killed with an imaginary sword. That would be true but also not complete. You can not be killed with an imaginary sword but you can be killed with bare hands, a club, etc. ”
              Dal Dre would not extend his logic or understanding to my example of logic. But upon reading my words, he might have a change of mind. So it is not the word that controls life’s meanings; meanings control words; words are a quick way of trying to determine meaning but the dictionary is only a starting place for discussion. The dictionary could be wrong or not clear. “He is a slave to pleasure, a slave to narcotics, a slave to gambling. ” Are we “slaves” to a government? The meaning is “we have no control, either in our “minds” or in our bodies.
              There is no such thing as a real “government”. It is imaginary, like corporations. Does Cal Dre realize that the “government” defines individuals as “corporations”. Citizens as “taxable persons”, Persons as “persona having rights and duties”. etc. And we, the people, have accepted those definitions instead of rejecting them and demanding a common sense, common law meaning. Judges, Municipalities, etc are all corporations.
              A few people know that in a pretrial brief, a defendant can “deny the existence of a corporation and demand that the state prosecutor prove that such a corporation exists in reality? How can the state or anyone prove that a corporation exists? by pointing to a piece of paper? Sorry, the paper only says that such exists in the minds of those who agree that it exists. It thereby becomes a religion. And we know how difficult it is to prove that a little green man exists who is standing next to me. So the state loses its case because it can’t prove that a corporation exists. For a state, through its court system, to say that a corporation does exist and punish a person according to the corporations rules is to force a state religion upon people. Imagine some early Christians or Catholics saying “Yes, a witch does exist, the devil exist in you and we will burn it out of you. ” Thank god for our freedom of religion.
              Does Cal Dre realize that he is not extending the ESSENCE of the meanings of slave, corporations, etc. to such things as “economic slave”. What does that mean? It means that “a person is not free from paying taxes to the government. It means much more. That he does not know the truth which can set him “free” . For example, it is a “silently accepted judicial fact by judges”, that a person standing before a judge in a tax court is a citizen of the “federal UNITED STATES” ( a corporation ) until he proves by documentation that he has denied being such. Because of that “fact of citizenship”, he will be “found guilty of failing to file” and of failing to pay his taxes, because Congress ( another corporation) has the right to tax it’s “citizens” or “members” or “participants” for its corporate privileges and immunities. This does not mean that we do not have unalienable rights apart from corporations; we do; common law rights.
              Finally, all knowledge is subject to proof. And all logic hinges on the need for proving the existence of a thing; not needing to prove that such a thing does not exist. Reason: if we accepted the other proposition, that all exists until proven not to exist, then we would be living in a totally insane world.
              Cal Dire says, ” It is up to the adverse party to prove or disprove a claim.” Not completely true and therefore logically false. It is up to any party seeking a remedy that he prove that he was wronged. He does not disprove the claim of the government, that he is not guilty for the same logic that I gave relating to a totally insane world. The government must prove that he is guilty. All that need be proven about a CAFR1 report is that it is deception, a fraud and that the people , the manager operating that corporation can be sued for “fraud by a government official”. You don’t sue the corporation because it does not exists. You sue the people, the human beings who are using that corporation for conducting fraudulent, common law actions.
              In law, the special case by the government, because they hold an illusion of power and a real, physical force, is that they don’t need to prove that you are a citizen. It is assumed. You must prove them false by “proving that your own real documents disclaim all elements of being “their citizen.” So they don’t operate exactly like you on one hand, that of the “assumptions”. On the other hand, they must prove their assumption that you are guilty. On your side, you must deny their corporate existence, because ( except for common law offenses) it is a corporation with its statues that is attacking you.
              Of course this goes beyond the topic under discussion, but again it is underlying all of they problems that we have with governments.
              Comments are welcome. But not “ad hominum” type, no criticisms of the man, only his logic or facts.
              Humbly yours,
              Student Philosopher,


              • “Abolish Illegal Slavery” (translation) “Begin Legal Slavery” I would have to say if someone uses ‘wiki’ as some form of definite truth, red flags come up immediately, this should be known by many. Second ‘Caldre’ misses the point altogether. I do applaud Clint for posting his ramblings on the subject in the essence of free speech though! As such, suspending beliefs, even momentarily can often lead to great realizations, first, that you can be completely wrong on a subject that you may believe you are completely right on. The issue becomes the admitting you are wrong. Then, further to such, the issue becomes IMMEDIATE responsibility for what system is in place. Clint and others could have walked LONG ago, because denial is the easy path. Most embarking on this or subjects like it are not afraid of truth and freedom. If we look around the world, this is exactly what we see. People afraid of truth and freedom. Being a slave removes responsibility and enters the most common state of man… BLAME. It is the left wing, right wing, liberals, labour party…. bla bla bla… yet the system stands. No amount of actionless blame will change a thing…ever.

                If a system is broke (literally) and you do not move to find out why, you, in all reality cannot open your mouth, sit around with your family and buddies getting loaded and whining and complaining.
                But, this is the human way, complaining is the easy way out of responsibility. Denial is the quickest step to preserving ones reality. Remember, at all times, the 2 scariest things on this planet are truth and freedom BOTH to governments/institutions etc. and to the very slaves that they control.


            • pigalleycat

               /  September 18, 2014

              Clint, you have truly enlightened me. As in illuminated my thinking, rational mind. This person does not understand that etymology does not mean definition. But as you know, our language, and many others, are being debased. We have all been suckered by our confusion of legal definitions and everyday meanings of words. In France where I am living, the verb “mentir” means “to lie”, “ment” is 3rd person singular. One sees “GOUVERNE-MENT” graffed on walls all over the country. Not etymologically correct perhaps, but the French know what it means.
              Keep up the good work.


              • Thanks so much, pig-cat. lol. Words themselves aren’t just words, they are concepts. They are placed together to form longer words which produce ever more conceptual notions. And then those are put together in sentences to produce whole legal constructs that simply don’t exist anywhere but in the fiction of the mind. And now the digital age is taking over, and those sentences are becoming click-able icons, which ironically brings us right back into the old ages of symbology and hieroglyphics, where one symbol acts as a 5,000 word meaning. In this way, again in the strangest of ironies, we are digitizing ourselves back to those times. And this is why it is called a “revolution”. To revolve is to never evolve past the same ancient system of pledging that has been around before the written word. Change the format and syntax (sin-tax) every so often, and the plebes may never learn of their disposition, and instead revolution themselves into the same damn thing over and over and call it V for Victory. The Matrix resets itself and the new illusion of reality sets in – same as the old one but with a new set of symbols.

                Take care of yourself over there, pig, for we are all in the same simulation.



                • pigalleycat

                   /  September 22, 2014

                  thanks for your reply, Clint. We really are in this together, conveniently illustrated Sunday with the worldwide climate extravaganza in cities worldwide, to whip up fear and ignorance in advance of the climate summit. “Inconvenient truth” takes on a whole new meaning! I called my sister in Seattle (it was her birthday) and she had spent the afternoon at the cliemate (oops) rally, then gone out to dinner and drinks with her husband. She was feeling like she had done her part to “save the planet”. It made me sad to see the result of her 9-5 existence at subsistence level state job. Only able to react emotionally to this subject, and deny it when I pointed it out to her. When I told her AGW was a hoax, with science to back it up, her only reaction was to heap scorn on me, like “ok, let’s not do anything, the whole west coast will be ablaze by next year, because of people like me we’ve already past the point of no return, I’m full of shit, etc. Or, when I would mention for ex. that the sea ice is covering more surface the last few years and that Gore’s predictions are history, she was “oh, that makes me so happy! But I heard that a chunk of ice the size of Rhode Island falls of Anartica every week”, you get the point. I sent her some articles from Forbes by James Taylor about the latest IPCC report and the MSM attempt to spin it or ignore it and keep on lying. I have a feeling that they don’t want a repeat of their Copenhagen failure a few years ago, I wonder what they have up their sleeve to avoid a repeat. I’m just rambling, I look forward to you new blogs, and just discovered your radio show. Keep the faith, pigalleycat.


          • Detroit is funding a $450 Million Ball Stadium…..hardly broke.
            Zionist Wall street owners now get to pick and choose what and when to liquidate once their hooks are in.

            Far as slavery, slaves have always been able to vacate and attempt to make a better life, whether in the North or across the Mason Dixon line or after serving a supposed sentence issued by a fraudulent maritime admiralty court by an official in some satanci black robe..
            It doesnt change the fact that they are slaves bound to a system or master that controls them.

            In early America, more white Irish Catholics were enslaved than blacks.
            Read of it here on my blog.


  11. Jay

     /  July 24, 2013

    Outstanding article on the fraudulent demise od Detroit….


  12. Linked with 100 years of repeated financial sodomy inflicted by the criminals at the Federal Reserve Bank, this rigged accounting stands not just as simple fraud, but an act of war against the American People.

    To hollow out the Republic by destroying not only the Dollar, but to endlessly circuit disposable local monies into pools of foreign investments and leave the People living like refugees in their own land requires a people’s revolt, not declared bankruptcy.

    The debt template used by the Central Banking thugs has destroyed Europe, and in the U.S. we have extended ourselves beyond any capacity to cover the hundreds of trillions of dollars encumbered by the derivative madness played by the hedge fund lunatics under the cover of the Federal Reserve Banks’ Magic Money Tent.

    The whole of it – all of it – City, State and Federal is odious debt, created by fraud, duplicity and chicanery, to be totally repudiated by the People as the ultimate accounting fix.


  13. findawheigh

     /  July 24, 2013

    Clint, and especially Walter, thank you so much for your work. America owes you a debt of gratitude for your understanding and attention to detail.
    You’ll notice comments from your readers that are telling you something that you don’t seem to understand, and that is that you approach this subject from the perspective of accountants, forensic accountants at that. Obviously, most people don’t have that background and therefore much of the detail that you document is lost on them. Another way to put it is that if you were writing a story for a literature professor, he’d flunk you. If you were a comedian, you’d be killing your punchline.
    While many who read what you write agree with you, they can’t repeat it to their friends, and so the message effectively gets lost by the messenger.
    I recommend that you try to have other writers condense your overall message as succinctly as possible, so as to “popularize” it.

    I would also like to emphasize what you only allude to about the BAR (British Accreditation Registry). The lawyers, judges, and the entire court system is a creation of the BAR. It is they who are responsible for this filthy and fraudulent scam perpetrated against the public. Does the word “Brith’ ish” sound familiar??


    • I appreciate and agree with your point.

      Here is what irks both me and Walter…

      I have repeatedly asked for anyone and everyone to take my work and do exactly what you suggest – to condense it and make it “????” – whatever it is that you think it should be. I welcome any constructive criticism, as yours is and is well taken, but then you yourself don’t do what it is that your are telling me to do despite the 4-8 hours a day I spend figuring it all out – something that absolutely cannot be explained in easy to understand terms on a 1 sided document. I openly command people that my work is not copyrighted in any way, shape, or form and to please reprint, alter, or do whatever it takes to get it out there. And yet only one person has done this to my knowledge, even as dozens have stated that “someone” should. Remember, I have made exactly $0 dollars from every effort, article, speech, confrontation, activism, and movie I’ve created. Without funding I can’t have an editor let alone anything else. I have no sponsors, though thankfully I have great folks doing the only thing I do ask, which is to re-post and spread my work.

      Put this frustration with the fact that this CAFR info is taboo in any main-stream function, including within congress and municipal governments, and you have an impossible and impenetrable media wall that only folks like myself and Walter can even comprehend exists. In this way, a person who wishes to understand what I or Walter is saying cannot just go to government or the library to get “evidence” that it is true.

      How can you get short, direct, simple evidence of a conspiracy so vast that it would take 1,000 pages to explain it all in layman’s terms?

      By all means, take the info and run.

      In the meantime I am gonna keep documenting our own enslavement.

      Thanks for your candor, and again I don’t disagree. But the amount of people who do compared to the amount of people who complain about the doers is at a ratio of at least 1,000,000 to 1



      • Clint:

        I adore your passion and Walter’s passion.

        I have offered to help you. You have not taken the offer. BTW I wasn’t going to charge you anything for the offer. I’m not offering to write a book with you both, but I am offering to help you two produce a document that “proves” your premise. We would need to work together, and for starts, we’d need to have a verbal discussion about it, say a conference call.

        I can tell you’ve both put a lot of sweat equity into your project. But what you are having difficulty doing is successfully communicating aspects of your project, and ultimately “proving the premise (a more detailed form of concept)”–to your audience. If you have members of your audience asking for clarification–then that’s a big sign you need to rewrite at least some of your information.

        I disagree with your beliefs that “if it’s easy to understand…” it essentially won’t be an accurate representation of your topic (premise). Your field isn’t any more complex than computer networking, and that field communicates fine, especially if good grammatical editing procedures have been done. Good editing is nothing more than rewriting several paragraphs so that the intended knowledge is understood–by the reader. That’s your goal, is it not? To be understood and thus having your CAFR premise accepted?

        The way I see it, is that your CAFR premise is: Contrary to popular belief, governments of any size in the USA are financially abundant, and this can be proven by using the information in each government’s CAFR that is available to the public.

        From there, you need to prove your premise starting with what the CAFR is and is not (keep it succinct), and after that–you will show how read a CAFR with the intention of discovering the “hidden” financial abundance. This is only done effectively through examples. The goal here is to quickly get to the “hidden money”. “Show Me the Money” will get people on board.

        As for the “conspiracy”–I would leave that for another chapter or document. Proving the premise of CAFR is to prove the money exists. If the CAFR says a ton of money is in investments, then ideally it would be desirable to see if those investments can be shown to have a value from some account. Otherwise, it’s just a claim that an investment is worth X (but it’s start).

        Myself, I’d have to see the logic of how the funds in a CAFR could be used to pay off a government’s debts and to be used for funding proactive work. Treat the example as if it were a person, say Bob, who said he was broke and needed to go bankrupt–but low and behold, we found a CAFR report that shows Bob is rich! Fine, show us how Bob is rich, how he pays his debts off, and gets his life on track.




        • Kerry:

          Don’t “understand how”? I think you should watch this short 3-min YouTube from 2009 of Oregon Rep. Bruce Hanna –

          You will find the answer to that question. This is an example of many. This video was suppressed by YouTube to redact the hit counter and keep it off the search engines.

          What he says is applicable to every State, City, County, and School District in the country. Tens of millions should have watched but with the YouTube redacting we will never know how many actually did.

          And Kerry, you say you want to write for easy comprehension. Well then, do a Google under Clint’s or my articles and go at it. Would love to see the results of your restructuring. Two or three individuals have done so with my prior articles cleaning up verbiage and presentation. I thought they did OK. So, go at it and let us know how you do..

          Walter Burien – CAFR1


      • Jeff Passmore

         /  June 28, 2014

        Clint, In my attempts to explain the concepts and the CAFR the hole always seems to be the “Bad Guy” or who profits and to what gain. I try to explain everything they do is legal, but it is very hard to get the idea across. There have been times when both you and Walter have come very close to the simple idea or sound bite that get attention.


        • I know the feeling. It cannot be explained in sheep-talk. One does not learn the open-secret financial structure and standards of government by simple conversation. Don’t beat yourself up for other’s complacency. Just remember that all the power, including the money, is in the public sector. No one owns it. Government owns is, and government is not a man. People except the financial terrorism simply because it’s public, not private.


  14. Doug

     /  July 24, 2013

    Clint, thanks for the article, amazing information. It’s a real uphill battle trying to educate the dumbed-own masses, most of which take no interest in such serious matters, but we all need to keep spreading the word and hopefully one day take back control of this once great country that is being stolen from under our feet. keep fighting the good fight!


  15. Edwin

     /  July 24, 2013

    I don’t want to be insulting but it’s not clear to me you understand the legal system.

    Let’s go back to civics class. There are 3 branches of government 1) executive 2) legislative 3) judiciary. They check and balance each other.

    The City of Detroit is an entity that has legisaltive and executive functions. The entity is declaring bankruptcy meaning it doesn’t think it can pay its bills any longer.

    The Court (the judiciary) will listen to the arguments by the City and evryone the City owes money to. They will have to come up with a plan that makes everyone happy. The Court will make this plan official.


    • Oh yeah… I remember that fairy tail from government funded and forced school!

      #1 The judicial is not a Branch. It is a statutory court, created by statute in the Judicial Act of 1789. Read your constitution to see it was not created by that constitution, but by Congress. The BAR is the court, and all court functions are now within the Department of Justice – an Executive Branch Cabinet.

      #2 The Executive is no longer bound by the constitution, for the office has been in a state of declared national emergency since 1933. The constitution is officially subverted and for intents and purposes suspended. Anyone with half a brain should be able to decipher that when a president can invade countries on a whim as CIC, without a congressional declaration of war, the president is not bound by the constitution. And the same with Executive Orders naming you a terrorist. Those have no power without an emergency or war (i.e. War Powers Act).

      #3 Congress is responsible for allowing the president and itself to be in that emergency state, per its 1973 report which you should probably avail yourself.

      Here is what that report states, from congress, in the congressional record:

      Senate Report 93-549, “Special Committee on the Termination of the National Emergency”.


      “Since March the 9th, 1933, the United States has been in a state of declared national emergency… A majority of the people of the United States have lived all their lives under emergency rule… For 40 years, freedoms and governmental procedures guaranteed by the Constitution have, in varying degrees, been abridged by laws brought into force by states of national emergency… And, in the United States, actions taken by the government in times of great crisis have ­ from, at least, the Civil War ­ in important ways shaped the present phenomenon of a permanent state of national emergency.”

      The “Act of March 9, 1933” as written into Congressional law states:

      “Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled, that the Congress hereby declares that a serious emergency exists and that it is imperatively necessary speedily to put into effect remedies of uniform national application.”

      Congressman James M. Beck spoke on this state of emergency from the Congressional Record, quiting congress the next year by giving the reason “merely a rubber stamp for the Executive”:

      “I think of all the damnable heresies that have ever been suggested in connection with the Constitution, the doctrine of emergency is the worst. It means that when Congress declares an emergency, there is no Constitution. This means its death. It is the very doctrine that the German chancellor is invoking today in the dying hours of the parliamentary body of the German republic, namely, that because of an emergency, it should grant to the German chancellor absolute power to pass any law, even though the law contradicts the Constitution of the German republic. Chancellor Hitler is at least frank about it. We pay the Constitution lip-service, but the result is the same… the Constitution of the United States, as a restraining influence in keeping the federal government within the carefully prescribed channels of power, is moribund, if not dead. We are witnessing its death-agonies, for when this bill becomes a law, if unhappily it becomes a law, there is no longer any workable Constitution to keep the Congress within the limits of its Constitutional powers… This vast range of powers, taken together, confer enough authority to rule the country without reference to normal constitutional processes. Under the powers delegated by these statutes, the President may: seize property; organize and control the means of production; seize commodities, assign military forces abroad; institute martial law; seize and control all transportation and communication; regulate the operation of private enterprise; restrict travel; and, in a plethora of particular ways, control the lives of all American citizens.”

      Nine years after 9/11, President Obama declared a continuation of Bush’s original National Emergency, as posted on the Federal website:

      “Letter from the President on the Continuation of the National Emergency with Respect to Certain Terrorist Attacks”

      September 10, 2010

      Dear Madam Speaker: (Dear Mr. President:)

      “Section 202(d) of the National Emergencies Act, 50 U.S.C. 1622(d), provides for the automatic termination of a national emergency unless, prior to the anniversary date of its declaration, the President publishes in the Federal Register and transmits to the Congress a notice stating that the emergency is to continue in effect beyond the anniversary date. Consistent with this provision, I have sent to the Federal Register the enclosed notice, stating that the emergency declared with respect to the terrorist attacks on the United States of September 11, 2001, is to continue in effect for an additional year.

      The terrorist threat that led to the declaration on September 14, 2001, of a national emergency continues. For this reason, I have determined that it is necessary to continue in effect after September 14, 2010, the national emergency with respect to the terrorist threat.”



      So my friend, your fairy tale illusion is laughable to a researcher such as myself. It’s time you see beyond what you are told to believe – one of the most difficult things a slave can do.



  16. Edwin

     /  July 24, 2013

    Similarly, I don’t think you undestand Accounting. there are 3 main financial statements: 1) Income Statement 2) Balance Sheet and 3) Statement of Cash Flows.

    The money that is owed in the future for pensions is a liabilty. It is owed by the city. This shows as an obligation under the Balance Sheet. It is good to have more assets than liabilities. It is bad to have more liabilities than assets.

    Compare to the Income Statment and the Statement of Cashflows. This is where you will see money coming in and money going out in a given year. For the City that is taxes andf ees and then spending for the public good (mainly compensation and benefits). No business can survive, though, if it continues to spend more than it brings in. It just doesn’t work.

    It is not a surprise that the simplifed budget shown to the public is different than the technical CAFR that is filed. Only accountants and finance folks would understand it.

    In any event, what we have here is a city looking at the money coming in and going out and acknowleding that it will not be able to make payments to the people and entitites it owes money to.

    Bankruptcy allows a fresh start.


    • Again, I can only laugh at your surface response here and refer you to my 4 years of writings, research, and many documentary films on this subject. And then perhaps you may want to look at Walter Burien at, and Mr. Gerald Klatt – Mr. Klatt being a man murdered for showing people the truth about CAFR’s.

      Watch my 4 hour documentary entitled “The Great Pension Fund Hoax” for which you are a victim of at “”


    • Edwin:

      Here are a few pointers to you FYI:

      1. They are projecting out their liability 35 years out and their income 1 year out. If Bill Gates did the same he would look like he was on financials death’s door.

      2. A CAFR in no way, shape, or form is a “Budget”. It is a statement of net worth covering a period from the inception of that local government. Could be accumulation covering over 200-years.You may have an annual budget to run your house that could be 40K a year. But your statement of net worth which shows the results of your lifetime may be 2.4 million. Big difference between the two and why the CAFR is never mentioned and there has been a cooperative effort in no mention of it for the last 70-years. You could have a city saying they were 75 million in the red on their budget but a look at their CAFR could show they were 1.5 billion in the black.

      3. Separation of the 3-Branches of government.. What a joke.. The attorney complex took over all three years ago. All three are primarily run by and administered by elected and appointed attorneys all belonging to the same club. There is only one branch at present: The Attorney Complex fronting for in name sake of the three branches now networked as one.

      4. The government gets most of its CAFR accounting personnel from a University out side of McClain, VA. That School specializes in CAFR accounting. Their are over 170,000 accountants involved with preparation of their local and federal Annual Financial Report accounting each year. AFR, or as large government operations call it with one word added: Comprehensive Annual Financial report. The CAFR being “THE STATEMENT OF NET WORTH” the Holy Grail of accounting for government, similar in religious terms to the Bible for the Catholic Church, not a mention from the media, political parties, etc. Why? Is there a cooperative effort in play here for over 70-years to feed the population mushrooms and keep them in the dark? Do the players depend on the population to not have a clue? You bet your damn bitty. DUE TO THE COLLECTIVE WEALTH, INCOME, AND OWNERSHIP involved!

      5. But then government and those with their hands in the till have managed quite effectively to pull it off over the last 70-years by the vacuum and void maintained of the basics. Not a mention, not a peep, and the deer in the headlights look when it is mentioned. Works out well for them as they laugh all the way down to the bank. Will things change? We will see..

      Walter Burien – CAFR1



      • Edwin:

        And one last note on those pensions: They project out 25 – 30 years as to what that employee will be making then at retirement to get 80% of their salary. So, the gov employee getting 50K now, 30-years from now they may say will be getting 220K at retirement, or a pension fund liability for that one (1) EMPLOYEE at retirement of 178K (80%)

        So, at a 5% rate of return that is $3,520,000 million dollars they put aside today to be 100% funded just on the pension payout not considering what is factored in for guaranteed health care at time of retirement which could amount to substantially more.

        It is all an actuarial projection game. Why? ANSWER: The larger the fund balance the larger the power base. Where those funds are invested GLOBALLY can make or break fortunes. They will always use “projections” that will increase their power base at hand. The employees and the taxpayer are a distant secondary thought…

        Walter Burien – CAFR1



  17. Edwin

     /  July 24, 2013

    One more detail:

    Pension liability is what they currently owe. They are on the hook now for it, even though they don’t have to make the payment until some time in the future.

    What if the City hired more people next year? where would that go? Well, then the liability would go up next year. does that help clarify why the liability is booked now?

    Future collection of taxes and fees is not booked as an asset. It is not obligated yet.

    I guess the difference here is between expected and currently legally obligated. It seems nuanced but there is a difference.


    • So let me get this straight…

      According to your obvious expertise, the payment is not due “until sometime in the future” and therefore the pension fund “currently owes” that payment?

      GREAT!!! By your calculations, every single person in America is officially bankrupt!

      At this point I’m just going to ask you to walk away with any pride you may have left…


    • Edwin – this is the whole problem with “recognized accounting” done by the municipalities these days (BTW, just who is making these rules for them? The same firms that “manage” their money, perhaps? The ones who are taking real assets when they “default”? Nice work if you can get it, and apparently the very richest can).
      To count all liabilities until an infinite point of time, while only counting revenues booked in the current year is a guaranteed way to make us all bankrupt, as realitybloger says.
      Also, some real numbers: there is over $5B in pension assets shown on page 178 of the 2012 CAFR, but only half a B spent in 2012. That makes me more comfortable as to the solvency of the fund.
      The NY Times article (one of them anyway: links to a report that claims there is $3.5B in liabilities in the pension fund that, as the Times article says, “appeared out of nowhere.” It was when the $3.5B appeared out of nowhere that the city changed course and prepared for bankruptcy. I’m so far unable to find where that figure even comes from, even tracing it to the source. More work is necessary. Walter/Clint/whomever, if you find the source, please let me know.
      I have some links from speculators salivating over “investing” in Detroit too, once it is cleared of poor people and their vacant houses, of course.
      I hope to finish this article next week.


      • Honestly Scott, I’m just pleased someone else is looking You are to be commended.

        The $3.5 billion will likely be a pension pre-funding obligation created by the congress of that state. This means that the taxpayer money that usually is collected over many years or decades must be fronted now. As with the post office, it will need to borrow money to pre-fund the pensions, or just declare bankruptcy. The post office reached its debt limit due to borrowing to pay its pre-funding requirements by Congress, per the CAFR for the post office.

        Just more accounting tricks to make it appear broke.



        • Clint –
          I am still researching this and in particular the idea that pension funding liabilities are calculated several/many years out and income revenues only for the current year. In fact, I called Moody’s Press Office about a recent report on this yesterday after reading this article:–PR_276663
          They called me back and we had a nice chat. Moody’s – a major bond rating agency that Electeds rely on to calculate pension fund viability, and the market relies on to price municipal bonds – has made a new rule recently that A) standardizes the liability outlook to 20 years for ALL states (prior to this, each state was calculated for a different range of years, making comparisons nearly impossible), but B) they either use just the current year’s assets OR they extrapolate the current year (2011 in this case) revenues into the future. Frankly, the AVP – Communications Strategist, Public Finance Group, said it was a good and simple question but he didn’t have a simple answer (whether it was a good one I am still trying to determine by reading the related reports he sent me). If you’d like to see the reports, email me directly at A day after this Moody’s article came out, a reporter form Reuter’s took them to task on their calculations , saying they “were all over the place” and unrealistic in this low interest rate environment. Here is that article too: “”
          We need to get to the bottom of the calculations. Given the depth of the clickthroughs you have to do, and the intricacy of the supporting material, I am almost positive no mainstream media journalist is going to do this, so it’s up to unpaid alternative researchers like us.
          My article will appear in Opednews (a top 100 blog), where I am a Senior Editor and Blogger, and, if I can create a shortened version, in Huffington Post and Daily Kos. It may be worth sending it out to Detroit media too.
          Already, I know that there is $5.1B in the Detroit pension fund alone, and about $5B more in various city and “Authority” funds. The yearly pension payout is less than $0.5B. Calculating the liabilities, as you know, is more difficult than calculating the assets, because these may not be due just that year, unlike the assets, which are for a point in time. This is where the obfuscation comes in the most. I’m using this 2012 Detroit CAFR for analysis:

          Click to access Final%202012%20Detroit%20Financial%20Statements.pdf


          • Hey Scott,

            I think the hardest part of all this is to stop thinking that there is a logical or reasonable reason for doing what they do – to stop thinking of pension funds as in any way altruistic other than in name only. Once you get to this point, you can see that these are just investment funds (power bases) of organized criminals and nothing more. The benefits they pay out to employees are nothing but a way to make the whole thing appear legitimate.

            When referring to corporations like Moody’s (all corporations, really), you mustn’t forget who the main share holder of that company is – the very governments and pension funds for whom it is in charge of giving bond ratings. I cover this in my movie – “The Great Pension Fund Hoax”. And wrote about it here:


            The article shows just the New York Pension System stock holdings as:

            NYSE Euronext 1,044,464 shares $18,695,906
            NASDAQ OMX Group Inc 539,840 shares $10,570,067
            Moody’s Corp 769,534 shares $17,637,719
            Barclays plc 1,278,276 shares $2,711,681

            And so the government regulates the very stock market (private corporations) for which it owns majority shares in – a complete conflict of interest.

            Of course, it also owns shares in the supposed “independent auditing firms” that it hires to audit its CAFR’s – another conflict of interest.

            This type of fascism is not obvious until one actually reads the CAFR’s.

            And when they do their future projections for which they call “actuarial projections”, they make up anything they want as a future liability to hide current assets. After all, they regulate themselves!

            I’ll help you in any way I can, just let me know…



            • Quite right. This is why I also advocate for Sovereign Money. This sounds superficially like it would just give gov’t even more power, but really, our gov’t is so corporatized (BTW, the father of fascism, Mussolini, when interviewed, said fascism should have been called corporatism) that divorcing gov’t from the Money Power of the corporation would actually make it so they would work more for the people. We can do this by following the constitution’s Art. 1, Sec 8 and allowing Congress to “coin Money.”
              But I digress.
              The main thing I want to understand is how Moody’s and orgs like them calculate the pension liabilities, and how they take into account revenue in the out years, if at all. When I questioned the fellow at Moody’s yesterday, he seemed to agree that they only projected liabilities out 20 years, but not revenues, even when I pointed out the obvious, that that would put any city into deficit (just like the POst Office and its pre-funding requirement does). If you can look at the article and want to see the files, let me know what you find. I’ll work on this some more next week.


        • I spent a good part of the day yesterday working on this. I had to dig a lot to find what the $3.5B represents – the mainstream media just takes this figure from Emergency Manager Kevyn Orr as if it came from Moses from the Mountain. It’s actually the projected liability of the pension funds (combined) from FY 2012 – FY 2017. It’s also based on a yet-to-be-implemented GASB accounting rule change that Orr has decided to use anyway. Otherwise the liability, even according to his report, would be just $2B. Less clear is how they get projected revenues, though they are right not to expect 7.9% ROI over this time period, as the funds have fallen short of that mark for some time. Nevertheless, there is $5.1B in the pension funds, and only a $0.5B payout in 2012. There are another set of deductions adding up to $0.5B as well, one of which is questionable to be included as pension fund deductions, I think: $317,388,978 for “Premiums to Insurers and Damage Claims.” Is this the sort of thing pension funds ought to be paying for?
          Even with all that, a billion in payouts a year would deplete the fund in 5 years, if no further payments were made into it, at present rates, and assuming no ROI. But there was $453m in contributions in 2012 too, though the ROI is truly awful and even corrupt, and the funds lost (Net Depreciation) $203m! The funds really will go broke that way, but this is because of gross mismanagement, even criminal behavior (the former Mayor is scheduled to go to jail for this).
          I have to admit, I am not seeing piles of assets for the city to fall back on, though it is their own fault for investing in some pretty shady real estate deals etc.


          • To get the more full picture, you should be looking at the individually (discretely) presented fund balances, which also use creative accounting. These fund balances are then placed into the final net assets after future liabilities are considered.

            Page 50-53 Enterprise funds =

            Total current assets – $7,065,834,682
            Total current liabilities – $ 503,209,822
            Total noncurrent liabilities – $6,254,198,203\
            Total assets – $ 308,426,657

            Over $3 billion of that is “Bonds and Notes Payable – Net”, meaning future payments more than one year away.

            So looky there, here is $7 billion being held that is being reported as only $308 million in the final report. Did ya miss that?

            As you go through the report, you will find this trick applied…

            As for the pension fund, the true travesty is reported as:

            Employer Contributions $ 378,356,067
            Plan Member Contributions $64,545,425

            “Employer contributions” are taxpayer money.
            “Plan Members” are the workers.

            Pension funds are just a way to strip taxpayer money and invest it, using employee benefits and retirement as a lame excuse to collect taxpayer money (as debt).

            Actual pension assets (investments) total another $5.1 billion.

            My friend, that means we are already sitting at over $12 billion in current assets, despite the CAFR statement of net assets claiming only $11 billion. And we’ve only looked at two types of funds.

            How about the “discretely presented component units” (page 62-63)? They have assets of over $500 million, long-term debt of $166,728,140, and only reported as $214,130,890 or less than half their asset value.

            Then you can read how some tricks work in the “Notes to financial statements”:

            (j) Deferred Revenue

            Deferred revenue represents revenues received, but for which the revenue recognition criteria have not been met. Accordingly, these revenues are deferred until such time as the revenue recognition criteria is met.

            (So why don’t they refer liabilities until they are actually current liabilities?)

            (k) Bond Premiums, Discounts, Issuance Costs, and Deferred Amounts on Refunding

            In the government-wide and proprietary fund financial statements, bond premiums and discounts are deferred and amortized using the effective interest method. Issuance costs (deferred charges) and gains and losses(deferred amounts) on refunding are deferred and amortized over the life of the bonds using the straight-line method.

            In other words, the liabilities reflect things like interest, so the actual liabilities of today are much less without future interest charges.

            On page as “Interest paid on Bonds, Notes, and Leases”, we see interest on just Enterprise funds at ($224,029,617).

            I suggest reading the notes section.


            • Thanks, Clint. With your permission, I’d like to quote your comment in my upcoming article, in its entirety. My article is already 6 single-spaced pages – long by Opednews standards, but not exceptionally so. and you’ve said succinctly some very important facts. I’ve been focusing on the so-called pension deficit because frankly, my sympathies lean more towards hapless city pensioners who earn $19k/year on average, than on rent-seeking bond-holders. But you’ve brought out this very important set of shenanigans that benefit them as well.


            • Thanks for this additional info, Clint. I am going to include it in my upcoming article, though I admit to not having the time and resources to delve into this as it deserves. However, it is important to get this information out beyond this blog and a few other places aimed at the “converted.” Just yesterday, the NY Times published another editorial on how pension funds should be “bailed out” by creating yet another pension fund guarantee, this time on a national level. With this kind of “rescuing” we’ll all be drowning in debt pretty soon. All except the pension funds, which seem to have enough money already!
              I received some helpful advice from Burien which I can include too. Thanks again.


  18. Interest rates are set TO RISE! And will soon.
    There is No way can Detroit make it then or now.

    Its a cess pool and is close to 90% majority Negro Black Population, not mentioned in the article. Every major city or nation with a majority of Negroes is an abysmal failure. Its not hate its the truth. White flight was the kiss of death.
    Detroit suffered a major riot when an illegal bar was closed! Yep, thats the facts…they went wild and burned the city down like spoiled children.

    Detroit manufacturers were Closing and moving Offshore while reporting record profits.
    Their reasons were greed motivated and blaming unions is a facade.
    The UAW has been around since the 1930s and GM made the best cars in the nation until Affirmative Action forced them to hire blacks and accept sub standard work. But even the 1960s, they still put out great products.

    But now with Whites gone, jobs gone and negroes in charge, it is a 3rd world city, literally and figuratively.


  19. It would be helpful to follow a line of statements and replies if the repliers would address their reply to the person who is being replied to.


  20. Judy

     /  July 28, 2013

    I’ve sent information on the CAFR to those running for office as Independents & Libertarians thinking they might be more willing to check out the information. Nothing! I don’t believe anybody really cares….to not even look at this is totally unacceptable to me……candidates are falling off my support list very quickly.


    • Ron Paul is one of those, unfortunately. His response was that he CAN’T acknowledge it because he’s got a family and career to protect. Talking about it is political suicide.

      This is why for years now I’ve been trying to get people to bypass the representative government and start acting on their own. The people can change the law through initiative, proposition, etc. if they could ever get organized.


      • Try Rocky Anderson. When I asked him at an event if he supported auditing the CAFRs, he not only knew what they were but answered with a resounding “Yes, I do.” He agrees that there is lots of unaccounted for money in there that needs to be made public. Anderson was the Justice Party candidate for president in 2012.


      • Judy

         /  July 29, 2013

        A good explanation of the federal government & CAFR’s is here….
        You have done an excellent job with getting out the information…..have you thought about doing an online class that we could pay for to get a clear understanding of the cafr’s that we deal we personally deal with.


        • Judy

           /  July 29, 2013

          that we personally deal with?


        • I’d be happy to do that, if someone can organize it, pay or not.


          • Judy

             /  July 29, 2013

            If I knew what to do I would do it….does anybody on here have any ideas?……perhaps using blog radio or something & we work on our own local CAFR ( maybe a school which might be smaller) to train ourselves with Clint’s help. We could share ideas & questions. I’ll also post this on Walter’s FB page. Clint, could you send out an inquiry to your list? I understand what is being done, but am not confident enough to go to a bunch of political hacks & present this. I did get a meeting together of a lawyer, an accountant, a concerned citizen & was led to believe that I didn’t know what I was talking about. Perhaps others have the same problem & something like this would help.


          • famousbeef

             /  July 29, 2013

            well clint

            i want to thank you again for your work (and walt’s and the late mr klatt’s)

            your videos (and walt’s) are very good and informative. They do lack a certain something though in the way of presentation. Public speaking is not your forte’ and their is no shame in that, lol.

            Its just that they come off as a little dry and while completely fascinating they are not very entertaining or engaging.

            I can help with that part of it and offer my talents toward that end.

            do you have a steam account? i tried to email you at cafr1 but it got rejected.


            • AloneInTheCrowd

               /  July 29, 2013

              dammit, i can’t get the hang of this commenting system, somehow my display name keeps getting changed

              also, their = there in my above post as beef


            • Thanks, and no thanks.


              • AloneInTheCrowd

                 /  July 30, 2013

                no worries, i will continue to spread the word about CAFRs, your site and walter’s, regardless.

                This stolen wealth hidden in plain site through is the missing link that ties the global collective corporate state oligarchy together.

                apologies if you took offense from remark about not being “entertaining and engaging”

                It isn’t necessarily true that just by building a better mousetrap the world will beat a path to your door.

                Walter and you both have the superior mousetrap as far as the root of the collective corporate state goes, yet I have been all over the web since the mid 90s at all the usual and unusual anti-state sites and just found about these CAFRs a couple months ago.

                You are very good researcher and writer, yet not so good at marketing and sales, again no offense intended.

                Look at how well the politicians sell their “product” of theft and murder. They literally have people lined up to “buy” their own ruin and enslavement. Yes, its true their apparatus is much larger, yet that is not the key to their “success”

                good luck, i look forward to your future articles.


  21. Judy

     /  July 30, 2013

    Clint, We have a few people interested in the CAFR posting on Walter’s FB page & we were wondering if you would join the conversation. Anybody else is welcome to join the conversation, hopefully Walter will take notice & join in. A friend from his page has offered to work on a plan to set up a group page so that we could help each other. I’ll post more on that when I have more information.


    • I would be interested in this too. I just took a tour of Walter’s CAFR FB page, including the Federal CAFR link. Had a hard time coming up with the trillions in liquid assets Walter talks about though – mostly in the 10s and hundreds of billions, and that is mostly committed to various programs. The largest number in the 2011 CAFR was ~$10T, but that is liabilities on Treasuries and similar instruments. What am I missing?
      Still working on Detroit’s CAFR, but it is tough sledding with it unclear how far out liabilities extend.


  22. Judy O'Hare

     /  July 31, 2013

    Scott…..go to the FB page & join in, hopefully, the more we can get there the more successful we will be in getting educated on this. When called or receiving mail for political contributions, I’m letting the caller know that when the candidate starts speaking about the CAFR, I may support them….until then, not….thru putting up with the lies & manipulation.


  23. Super writing, I can’t write worth a damn, but I got a long list of those involved and how they are all involved. Maybe you or someone can help me say it correctly?To bring it to the people in some organized fashion. This group has been operating for years! Thanks to Scott Rothstein!The fraud on the people is so sick I just about puke when I see who is involved.


  24. cgchi13

     /  December 3, 2013


    November 26, 2013 • 3:23PM

    Federal Bankruptcy Judge Steven Rhodes said in a court filing yesterday, that on Dec. 3, he will hold a hearing at 9 am to discuss his verdict on whether to authorize the Ch. 9 bankrupcty filing by the city of Detroit; his written statement will be made available later. Rhodes’ action is considered highly unusual, compared to standard law practice; he is expected to speak very carefully on the record, in order to avoid grounds for appeal.
    In citation of a debt of $18 billion, the Detroit bankruptcy filing is the largest in U.S. history, but is also one of the most blatant trans-Atlantic examples, of the gutting of the physical economy, and the predations by a swarm of mega-banks, which foisted swaps and other financial rip-offs of city finances. Detroit’s situation alone exemplifies why there must be a re-institution of the Glass-Steagall law, and a bankruptcy-reorganization of the national economy.
    The Detroit bankrupcty filing was made in July by a cohort of those desiring to gut the city, including the governor and state appointed emergency manager Kevin Orr. The filing is contested by city workers and constituents on various grounds, including that there has been no good faith approach to the public good, in the negotiations, in the assertions of insolvency, and in the demands by the city emergency proposals to cut city worker pensions, sell assets and otherwise demolish what remains of Detroit.
    There are thousands of other cities, counties and various local governments in extreme, impossible financial circumstances, in particular throughout the cities of the former industrial heartland of North America—the Great Lakes states.
    In Pennsylvania, for example, there are 21 localities on the state’s “financially distressed” roster, mostly in the beaten-down former coal and steel counties. Dozens of cities and townships, including the state capital, have called on Washington, D.C. to re-instate Glass-Steagall and re-start the economy.
    In 1987, “Act 47” was passed by Pennsylvania, under which the state could declare a locality in financial trouble, and impose severe austerity measures, called “restructuring.” The roster (and date of listing) includes Pittsburgh (2003) and many nearby Allegheny County former heavy industry centers: Clairton (1988), Duquesne (1991), Rankin (1989), Braddock (1988); as well as Johnstown (1992), in the coal county of Cambria; Altoona (2012), a former rail-machining center; and many of the old eastern coal centers, West Hazelton (2003), Nanticoke (2006), Scranton (1992), and finally, Harrisburg (2010), the state capital. ”

    ” …….Some experts are now estimating that the payments to the megabanks UBS and Bank of America, which Detroit faces on the “interest-rate swaps” derivatives it was conned into buying, may even be considerably larger than the $225 million reported in EIR’s “Detroit Facts”. According to both the Financial Times and columnist Yves Smith’s Naked Capitalism blog, the city may face immediate looting of $700 million, on top of more than $100 million a year lost to the city for the past eight years on these derivatives bets. The appointment of Kevyn Orr as emergency manager by Gov. Rick Snyder on March 14, was itself a “credit event” potentially triggering a $400 million derivatives payment by the city, one which Orr and the banks may be “not bringing up” until bankruptcy court hearings start…….”

    ” Cities and counties are, however, beginning to pay the costs of Detroit “emergency manager” Kevyn Orr’s dirty work for UBS, Bank of America, and their ilk, in steadily rising municipal bond interest rates. Orr said in an early interview that he “didn’t care” what impact his actions had on municipal bond rates, as long as he made the cuts in Detroit. Already, four Michigan counties/cities have had to withdraw bond issues in the past week: Genessee County (A2 rating), $53 million issue; Saginaw County (Aa3 rating), $60 million issue; Battle Creek (AA) $16 million school bond issue; and Hamtramck, a school bond issue. All were contemplating exorbitant rates of 6% or higher. Chicago’s treasurer announced on Aug. 6 that the city’s annual interest cost estimates have risen by $2 million in past two weeks.”

    BANK OF AMERICA is also connected with the person of Warren Buffet a friend of JACOB ROTHSCHILD and EVELYN DE ROTHSCHILD.
    JACOB ROTHSCHILD “Hosted the European Economic Round Table conference in 2002 at Waddesdon Manor, attended by such figures as James Wolfensohn, Nicky Oppenheimer, Warren Buffet, and Arnold Schwarzenegger ”
    Bank Of America and Merrill Lynch ( subsidiary of Bank of America ) are also related with the Edmond De Rothschild, owned by BENJAMIN DE ROTHSCHILD and ARIANE DE ROTHSCHILD, through the persons of Gerald Levy, Matthieu Walterspiler, Barbara Colombo, Beate Bakker, etc…


    ” From his headquarters in St James’s Place in London, Jacob Rothschild has cultivated an influential set of clients, business associates and friends who have extended his interests far beyond the normal scope of a banker. ”,_4th_Baron_Rothschild
    EVELYN DE ROTHSCHILD SPEAKS VERY WELL ABOUT UBS: ” don’t forget that one of the biggest examples of a bank which – to me – was highlighted, is the wonderful, most prominent banking institution in the world, was UBS. ”
    ” Stefano Rossi that in a famous interview speaks of virtuous countries and of the impending crisis of Greece and of Spain, is CEO of EDMOND DE ROTHSCHILD and began his career in London in 1988. In 1989 he returned to Italy to join Citibank.
    In 1991 he moved to S.G. Warburg and subsequently, with the company’s acquisition by SBC and the subsequent merger with UBS, was promoted in 1996 to Head of Sales at UBS. Appointed in 2001 stock market Manager and Managing Director of UBS SIM, Rossi holds the position of CEO of the italian SIM OF UBS until June 2007. During his career at UBS SIM, Stefano Rossi and his team have been elected for eight times better Italian StockBroker from the Institutional Investors Survey.”

    ” The fight for a Glass-Steagall type banking sepearation in Switzerland is now reaching the boiling point, with the Swiss Banking Association being forced to come out in the open and attack proposed legislation in Switzerland for Bank Separation, while a grouping of political forces are now consolidating their fight to force the legislation. ………………………….
    UBS chief Sergio Ermotti, on the contrary, chose to declare war in an interview with the economic magazine L’Agefi. While the apparent subject of the interview was the UBS gains from its investments in Vodafone, his remarks came down to an attack on the bank separation initiative, and, in particular, on SPP leader Christoph Blocher. In view of those financial gains, Ermotti said, it is understandable why people who want to strengthen the Swiss financial center and its banks, keep pushing bank separation. “It is also fundamentally difficult to carry out a professional discussion on the issue,” he protested….. ”
    ( More Evidence of How the British Looted Detroit to Death )
    ( Detroit: Pensions or Derivatives? Glass-Steagall Would Have Made the Choice )
    ( UBS, Scared by Glass-Steagall, Announces Fake Pre-Emptive ‘Separation’



  25. Corruption in governement is nothing new and rarely leads to good things for the people goverened by corruption. I hope for best for Detroit, though, it is a beautiful city with wonderful good people. Negative press makes it all worse, not better.


  26. Hi All,

    I am working with The Public Banking Institute to put on a large event in the fall of this year, 2014. We are looking for speakers, venues, volunteers, donors and lists to promote the event to. Please consider helping us with this very important educational forum on public banking. Time is of the essence, as the TBTF are bound to tank us again!


  27. Judith Pecho

     /  January 15, 2015

    They are not bankrupt and neither are any of our cities and counties. Educate yourself on the Comprehensive Annual Financial Reports that Federal Law requires all levels of government to report, and at the end of each you will find the report of the invested tax dollars that the government has at it’s disposal. One city in Arizona is operating on the annual interest alone not placing tax on it’s citizens. Google Walter Burien, CARF1 and you will find pages and youtube videos about this. This is not a scam folks. No it is not.
    Do not talk to your governments without a few people to support you as they could go after individuals who look vulnerable. Walter Burien suggests that people form committees that will watch over these funds and see what is distributed. There is no need for increased tax to keep libraries open or music classes in your schools.
    Why do you think the Governor of MI appointed a corporate man to replace the elected mayor? That money may not be there if you do not start getting smart and put time into this.
    Please people wake up as this information has been available for quite a while. I have asked my local papers to write on this and the editor told me they never heard of it and would look into it. Well he apparently did and decided he would not publicize it. They don’t want you to know about it, but the information is there in front of your face. Do it NOW.


  28. Judith Pecho

     /  January 15, 2015

    Gosh I looked for comment and did not see any and after it was sent it seems a new section opened?? You have mentioned the CAFR1 money. Good so what is happening in Detroit when people cannot afford water in their houses. Why can’t the CAFR! money be used to help in this urgent matter.


  29. Jim Gattuso

     /  December 17, 2015

    Hi Clint,

    I’m afraid there’s been some change in the Detroit CAFR file since the last time I looked. It would be great if you guys would take a look.

    Oh, and thanks so much for your awesome work.


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