(NEW) Endgame: Globalism Through Public Pension Ponzi Schemes Now Manifesting… CalPERS and News Outlets Caught Lying To The Public Again!


UPDATE: Note to my readers: This is a new post with the same title as my last one. That last unedited, incomplete version was posted accidentally by myself a few weeks ago without my realization. It should be as of today read again due to so much more background and information that has been added and now finished. For those that commented on the last post I apologize for those being lost. Sorry for the confusion, and please know that I consider this to be one of the most important blog essays I have put out to date. It really explains in detail all the pieces involved in our collective societal breakdown, with the intent to start the “New World Order” or world government we all hear about but can’t quite see how it has been constructed. This is the blueprint. I give it to you now.

–Clint, Friday, May 11th, 2018

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“In order that all men may be taught to speak truth,
it is necessary that all likewise should learn to hear it.”

–Samuel Johnson

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This will be my last entry with regards to The Great Pension Fund Hoax and all it entails. Quite frankly, there is nothing more to reveal. The gig is up. The endgame is apparent. Unless all current, un-retired members of all pension funds withdraw what they have voluntarily given (contributed) as the law allows before their actual retirement, and until taxpayers collectively stop allowing their local, state, and federal taxpayer dollars to be funneled away (as required municipal corporation pension contributions) so as to destroy any support in this global investment scheme with the goal of total, centrally organized control and corporate governance worldwide, there is no way to prevent what is and always was the intent of these pension schemes toward globalism and world government. The transference of wealth as the collective possession and ownership of the majority of corporate shareholder stock has now sufficiently been passed into collective, international government hands through these public investment schemes. I’ll waste no more time warning and calling upon deaf ears nor hopelessly believing that anyone will bite the corporate, governmental hand that feeds them. This is therefore my last ditch, last minute attempt to spell out in the greatest of detail and foundational understanding the whole plot of this international public pension ponzi scheme and why it is and has been the number one financial stone supporting this modern move to global governance. This is not just some empty statement to frighten you, though it should, but is merely a statement of known fact. The time for willful ignorance is over. For we must come to understand that through many decades of continuously taxpayer supported pension fund investments, governments around the world are the majority shareholders of nearly all corporations, with very few exceptions.

This doesn’t merely spell socialism or communism, but complete global corporate governance by the world’s governments acting collectively under the unified laws of private, non-governmental associations (NGO’s) and other private functionaries and sets of non-governmental law. These rules have already been put into place, and the financial reporting structures of governments by the CAFR system is in full effect. While the names change from nation to nation, the accounting structure for all governments and organizations, including pension funds, are now being set to a globalized standardization. Social Security is also now in over 140 countries, coordinated through the United Nations and World Bank by the International Social Security Association (ISSA). The full list of International Social Security Association member countries can be seen here: https://www.issa.int/en_GB/directories/organization. And yes, this does in fact mean that communist China has the same “Social Security” system as the United States, United Kingdom, and most other countries, and yes the system has been globalized to entrap all common people into a digital identity and complete dependence upon international investment pension schemes such as these. The goal:

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16.9 – “By 2030, provide legal identity for all, including birth registration.

—United Nations Sustainable Development 2030 Target Goal 16.9

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No community should be considered to be outside the span of this new agenda. Whatever your ethnicity, whatever your livelihood, whatever your lifestyle or location, all of you are inside the agenda. We need to inform everyone that these goals are the heart of a plan for the future of the worlds people, as well as for the planet itselfPeace and security, human rights and justice, and sustainable development, brought together within this 2030 agenda.”

—David Nabarro, Special Representative of the UN Secretary-General of the United Nations, from a speech on April 15th, 2016

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World Bank:

“Overview: Providing legal identity for all (including birth registration) by 2030 is a target shared by the international community as part of the Sustainable Development Goals (target 16.9). The World Bank Group (WBG) has launched the Identification for Development (ID4D) cross-practice initiative to help our client countries achieve this goal and with the vision of making everyone count: ensure a unique legal identity and enable digital ID-based services to all.

—United Nations 2030 Agenda, from a World Bank publication entitled, “Identification for Development”

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For when they shall say, Peace and safety; then sudden destruction cometh upon them, as travail upon a woman with child; and they shall not escape… so warns the Bible.

Birth certificates (the creation of legal persons/artificial identities) are printed on bank notes. The certificate assigned to myself is printed by “Midwest Bank Note Company.” You can look it up for yourself, though Midwest has now merged with Colonial Banknote Company, here: http://colonialbanknote.com

To understand why this is so, we must only look at the definition of this banking term of art. What is a certificate?

CERTIFICATEPaper establishing an ownership claim(—Barron’s Dictionary of Banking Terms)

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Why that’s what we do for our dogs and cats, isn’t it? We certify them through registration as property? We chip them with digital identity! But just who is establishing ownership of our vital statistics turned fictional persona (legal status)?

Perhaps you’ve never noticed that there is no line item on a birth certificate that establishes paternity rights or ownership of the child itself? This is not a form filled out by a parent to declare property of the child, but is a certified abandonment of the illegitimate child and paternal rights to the nation state by an “informant” as its ward, usually the mother, while witnessed and signed by “doctors” like former congressman Ron Paul. The birth certificate has nothing to do with the actual child, and is not attached to the child in any way until the parents invoke that legal entity that is created thereof, the person (status) of a United States citizenship. Once this use of the name, number, signature, and other benefits is utilized by the parents until the age of consent, the child is then brainwashed into believing he or she actually is that person, that status, that legal name, and that he or she is in fact identified by a pension number called Social Security like a marked beast of burden, like cattle. Once adulthood is reached, the infant carries on in that false, legal identity so as to function in the false, legal realm of interstate commerce controlled and policed by the United States and its agencies and municipal corporations. We cannot know any better because our parents didn’t know any better. We become volunteers under the strict legal matrix code without even realizing it, aging from 17 to 18 in an unnoticeable moment upon the artificial Roman calendric timeline, and we simply continue using the name and number (mark) of citizenship to the United States as if it were perfectly natural and morally correct. We are even taught to believe this to be the sign of freedom, even as they call us subjects, tenants, consumers, taxpayers, and customers. Out intention is made express by our action of using the status of US citizenship, signing in its name, and receiving its benefits and consumer protections. This is how we become agents, and potentially the enemy of everyone else. For in the legal realm, the law is competition, greed, and amorality. We exist therefore in complete opposition to Nature and Its Law, lost in the circular matrix of legal fiction. Hell, we are even tricked into praying for money (mammon)!

Of course the fictional persona (legal status) assigned from the vital statistics of each man (male or female) at birth is a creation of the United States (the principal) under its agency, and so of course a birth certificate must be established to both prove identity (fictional persona, legal sameness) and also claim original ownership upon that newly, artificially created entity of the legal fiction. The person (status) thus created at this birth certification process is like the car or shoe avatar on the monopoly board — we use it and are responsible for its credits, debts, titles, fees, and taxes. But in the end all the pieces and all the money (credit) go back in the box — back to the central bank (government). We are not the words (vital statistics) printed on these birth certificates, for words are form without substance, existing nowhere in Nature, purely the artful creations of man. Of course, no man of flesh and blood is born from a birth certificate, only a digital copy to be operated commercially in the legal, commercial matrix. Persons have no blood. Persons are not men, though men may choose to pretend to be bond and surety of persons. Insured commercial persons, not men, are then hired under flattering titles like bank teller, doctor, or fireman. Men cannot be hired in the United States without first possessing a fictional, legal identity (personhood) under bond and surety within the United States. No person, no contract. No person, no signature. And of course, on the inverse, with no contract the devil (legal fiction/artifice) has no power.

To be a hireling is not a good thing. We are all being used by devils in suits and ties and nothing else… but some of us get better rewards for it, say, like the illogical, unreasonable, completely artificial interest and gains (usury and engrossment) created in the purely fictional stock and bond “markets” from the investments in public pensions.

HIRE –verb transitive – 1.To procure from another person and for temporary use, at a certain price, or for a stipulated or reasonable equivalent; as, to hire a farm for a year; to hire a horse for a day; to hire money at legal interest2. To engage in service for a stipulated reward; to contract with for a compensation; as, to hire a servant for a year; to hirelaborers by the day or month. 3.To bribe; to engage in immoral or illegal service for a reward. To hire out one’s self, to let; to engage one’s service to another for a reward. They have hired out themselves for bread. 1 Samuel 2:5. To hire or to hire out, to let; to lease; to grant the temporary use of a thing for a compensation. He has hired out his house or his farm. – noun – 1.The price, reward or compensation paid or contracted to be given for the temporary use of any thing2.Wages; the reward or recompense paid for personal service.The laborer is worthy of his hire.Luke 10:7. (–Webster’s Dictionary of the English Language, 1828)

PROSTITUTE – verb transitive – [Latin prostituo; pro and statuo, to set.] 1.To offer freely to a lewd use, or to indiscriminate lewdness. Do not prostitute thy daughter. Leviticus 19:292.To give up to any vile or infamous purpose; to devote to any thing base; to sell to wickedness; as, to prostitute talents to the propagation of infidel principles, to prostitute the press to the publication of blasphemy. 3. To offer or expose upon vile terms or to unworthy personsadjective – Openly devoted to lewdness; sold to wickedness or to infamous purposes. Made bold by want and prostitute for bread. – noun – 1. A base hireling; a mercenary; one who offers himself to infamous employments for hire. (–Webster’s Dictionary of the English Language, 1828)

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You see, the word hire is not just defined as working for money, it is defined as the very form of money to be paid, be it wages or some other reward or compensation, as trading favors for favors. We are all prostitutes in this sense, and its time we stop denying it. Even the word soldier in its etymology comes from the name of a Roman coin, for a soldier of the nation is a mercenary that protects the corporate nation against the States (People) that created it, just as it was in the civil war. But I must also truthfully ask, though I doubt I’ll like the answer, just how many reading this would give up their legal (artificial) contracted “rights” to the rewards of Social Security payments or other public welfare like public pensions, including the standing armies of the United States and its completely corrupt Veterans Administration, despite the knowledge that it is literally the carrot on a stick leading us all into the very mark of the beast/global slave system forewarned about in the Revelation? To be a hireling is to work for mammon and the gods (magistrates) that create, credit, and administer it. This is a self-evident truth. We can deny it no longer.

After all, what is the one thing that defines a nation? It’s unique currency and the valuation of that currency internationally, of course. Government owns the money, owns the printing presses, owns the copyright, owns the central bank to which all others are subservient members, and it owns the ability to set the statutory value of that currency while controlling the markets that set the artificial, commercially driven “market” value. Governments are the only actual bank, the only actual source of money. All others are merely users of governments main product — money. And as we can see, each government uses its citizenry (persons) as the source of money creation. They call us collectively as human capital, the word capital coming from the Latin capita, meaning by the head. This is how a rancher counts his herd of cattle, by the head, within his own fences that create a capitalist society of captured and subservient cows. This is an excellent synonym for what is the typical public status of each US (national) citizenship.

But I work for the post office, you say… how can I possibly be considered a prostitute; a mercenary?

Don’t shoot the messenger. I am not judging anyone, lest I judge myself. I am merely defining terms as they are, not as I want them to be or falsely, patriotically believe they are or should be. We must learn to speak these truths about ourselves, about our own actions, and therefore we must first hear the truth without prejudice and with a neutral mindset. We must admit our own defeat and open-air internment before we can free ourselves. We must learn the language of the creators of fiction, of artifice, of lies, for only then may we protect ourselves from their artful terms. We must be sincere in all things, never allowing what is the Real thing to be fictionalized and thus legalized into the empty name or title of that thing, so we may be always in harmony with Nature, with self-existent Truth, with God, which are invariably the same words (meanings).

All “employees” of all corporations are hirelings, prostituting themselves as workers for hire (mercenaries). Remember, these are neutral terms, not meant to evoke emotion, only Truth. An employee is an agent of its principal, without exception. A public (national) citizen is an agent of its principal in franchise (legal freedom). Both exist to benefit the mother (creator of person/status) corporation. Another word for mother is matrix, an artificial womb offering false security and safety, but never Natural (True) Freedom. A citizenship of the United States is in prostitution to the United States, a foreigner to the 50 States holding no land (territory), always in modern, feudalistic tenancy by contract. One cannot be a national citizenship and also have perfect title to any land in any State. Why? Because anything registered in a United States person (name) is property thereby of the United States. The user (agent/employee) is never the allodial owner, and can therefore only hold anything (as registered property) through the legal name of its principal. The principal holds, the agent uses and pays taxes for that right to use. And this process of rebirthing men into persons of the United States is how the land was stolen from ourselves and our forefathers that were tricked into placing their legitimate children into an illegitimate national citizenship (wardship/apprenticeship). In total neutrality, as a definition of terms, this cannot be disputed. Emotion and personal opinion have no place in legality, nor in its language. There is no love, no devotion, no care, no charity, and no patriotism in the legal realm nor in its terms of art. It is strict and applied strictly. And most importantly, the constitution does not apply to or protect United States public citizenships (subjects), only private “People” in the several States. And so as a pensioner, you should know that there is no constitutional law that will protect your contributions (gifts) given when they start declaring municipal bankruptcy and start taking it away. You fell into a financial trap, and you must either live with the consequences or remove now what you have “contributed” while the corporate law of these organized criminals still allows it. That law can change tomorrow, as you tacitly agreed to when you started contributing.

And hey, by the way, government’s most important office is in fact the Post Office and System, for through that corporate structure its official summons, informations, and notices of corruptions like foreclosures are delivered to helpless victims of the very money and investment schemes we are speaking of now. The post office is like a court without a bar, where preliminary business can be conducted and contracts can be signed and delivered. It is where most people get bad news, where they are informed of their audits and seizures from the illegitimate (de facto) IRS, and where banks warrant and deliver their interest and fees (usury), a criminal activity made legal by man’s law and ultimately protected by the sheriff (executive branch of the state) as our homes and possessions are sold at auction in “sheriff’s sales” on behalf of these banks while we end up homeless on the streets… To protect commerce and serve summons.

But you are just a lowly post office worker, the automaton we interact with, right? No responsibility there, right?

If one thing has been stripped from our society it is indeed the ability to consider and self-actualize responsibility for our own actions, for just doing our “jobs” as mercenary prostitutes for hire, and for treating each other with respect and dignity. We pretend to be lowly even though we are like bolts holding the machine together and the fuel causing it all to operate. The legal system and its support and protection of mammon as its life-blood is the foundation of this curse. We are agents for government, be it in citizenship or in employment. All we do is in support of it and its global corporate investment schemes.

Ask yourself this question: Would you continue to do your current job if you were no longer paid to do it? Of course not. You do it only because you are paid, because that’s what prostitutes do. Charity is our Natural State of Being, and I am willing to bet that every single reader of this essay would seek a more charitable engagement if no money were involved so as to help other men rather than suffer another day at whatever one’s current, corporate job is tracking, using, selling, and all-around harming their customers per capita with a capitalist fake-smile and in the most inventive of propagandist comforts. Only through monetary compensation can we be made to work, labor, toil, and fix that which is against Nature and our own moral compass. We are as of late working for the AI, doing its bidding to make it stronger, mining its digital currency, and giving it all our personal, private information to share publicly and build upon our digital identity. But some of us tell ourselves and others how much we love our jobs as wage-slaves, perhaps the greatest self-deceit we’ve been programmed to endure. To this self-aggrandizing lie I call bullshit every time, and refer back to the original question. If you Truly love it, you’d do it for free, in love, charity, and good will. You don’t love the job, you love the money. And it is the love of money that is the root of all evil, the very lifeblood of mammon.

I didn’t say the Truth doesn’t hurt. But it really hurts for those living their own lies. Truth is the best medicine for all disease, especially the chronic liar and idolator.

One may not believe that working for the “state” is a lewd or vulgar use of one’s time and labor at all, and may find some agentic comfort or even some reprehensible sense of moral superiority by their temporarily granted, hireling flattering titles. The house-slave, after all, is quite content and even proud of his flattering title of slave status as long as he is the limited master of at least some of his fellow slaves. Ah, the idiocracy of that middle management cess pool…

The popular reputation of the typical DMV employee is certainly a sign of how such flattering titles in prostitution (employment) utterly destroy any notion of dignity, respect, and charity to ones fellow man. For these employees do not deal with men, they deal with men acting in persona (mask/status) seeking benefits they believe are rightful and even of God (Natural), and whom often are equal in their contempt for the DMV employee by nature of their own low but delusional worshiped status, that of a US citizenship. Slaves that believe they are free even as the stand in line to pay extortion fees and taxes to the DMV. LOL! Imagine if God exacted taxes for each breath of life and each blade of grass? Taxes and fees are self-evidently not a part of Nature, and DMV fees and charges certainly don’t come from heaven. Let us be clear — ONLY PERSONS CAN BE FORCED TO PAY TAXES. And this is why the scriptural Law teaches never to respect or act as a person (status) other than thyself. The reason for this highest and moral Law of Nature, again, is self-evident. For a person is never of a source in Nature. A person is always a creation of man, and men will always rule over persons, just as Nature and Its Law will always be Highest without exception. For without Nature and Its Law, there would be no men, and with no men, there would be no government, no lies, and no fictional (legal) law that opposes Nature and Its Law. This we call the Law or Word of God, not because some anthropomorphized version of religious art supposing the form of God spoke these words, but because God (Jehovah) is actually defined as “God is Truth.”  Whatever is spoken by any man that is self-evident Truth of Existence in Nature, in the Universe, and not the concepts of man, is speaking the Word of God. The metaphor cannot be mistaken as literalism, lest the Truth be lost as it is today behind kings, popes, and presidents (false gods).

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“Of a truth, God will not do wickedly, and the Almighty will not pervert justice.”

–Job 34:12 

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To avoid wrath, live in Truth, never acting against Nature and Its Law. How simple can it be?

Nature and Its Law is the only Truth. Nature is the epitome of neutrality. It is not good and it is not evil, which are only the conceptions of man. It is Existence. It just Is, as I AM. I Exist without words, without names, without numbers. And this is how God (Jehovah – Lord in English, JHVH in Hebrew, Deus in Latin and Portuguese, etc.) is defined, as a verb of All Being that is the Universe, all of self-existence, and most importantly all that is not an artificial creation of man. If only this aspect of what is God is understood, then the Law of Nature can be almost completely understood. Art (artifice) and Reality are never the same, and always oppose one another even in their simulation. Likewise, the legal name, title, number, and identity of everything in Nature is a creation of man, recreated solely for the intent to control all of Nature and Its Creation (man and other Creatures, etc.) outside of the Law of Nature, to pull everything away from its Source. The demonization of the Bible was the most important step in this process, for the Bible is provably the very foundation of the “unwritten” common law system, where to break that Law of Nature as total self-governance and total charity and forgiveness to others is to enter into the legal matrix system and its false code (law). To obfuscate and replace the Bible Law, they created corporate (organized) religions and caused the public minded commoners to believe that the Bible is religion, not the Law of Nature. And it worked like a charm… literally. The Truth was hidden behind priests and judges in long robes, and religions were thus incorporated under the state, despite the fact that the Bible Law is to be under or replaced by no other doctrine (law of men). And so, as we will discover, moral action against immoral legalism was made illegal. The church and state are inseparable.

All we need to do is to go back to the Truth. This is another way of saying back to God. Sadly, no matter how well I explain this, many will have stopped reading this at the mere mention of these words Bible and God, which is proof positive of how conditioned we all are to remain as the low, vulgar beasts of burden we are currently acting as — consumers akin to a swarm of insatiable locusts, a cancerous growth that denies itself any remedy that might interfere with its pointless, unspiritual growth. We are killing ourselves surely but slowly, and all because we refuse to accept and Live in and as part of the Truth (God). Jehovah (JHVH) is a verb, not a person, place, or thing (noun). And in our Natural State of Being, so too are we nameless and pure and therefore immune from man’s law of legal fiction. For the laws of men only rule over the persons, places, and things (nouns) that man creates, which are always fiction. There are no words in Nature. And this is the ultimate of occulted knowledge. Without words, men are as helpless as animals. For without words men are neutered, having True Born equality in Nature. Only respected names and titles (nouns, as persons places and things) can cause inequity, which is why they are strictly forbidden under the Law of Nature, for without words, there can be no contracts, the tool of the devils (evil geniuses) that men have become. This, again, is self-evident.

Our sole problem is that everything we do, everything we work for, everything we strive to achieve or manifest, is valued in money. We live for the lie that is valuation, in the god of mammon we trust. This wicked disease is so simple to cure, and yet the cure has been made so elusive to us by those who keep us in the darkness of legalism and valuation (mammon). The cure is simply Truth. Life without fiction and lies, which can only be accomplished by total self-government by all men upon themselves. This is the Law. And all governments recognize this fact, which is why they do everything to keep us regulated and sedated from the Truth, from the Bible as Law (not religion), and from a self-governing mentality.

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It is impossible to enslave, mentally or socially, a bible-reading people.
The principles of the bible are the groundwork of human freedom.”

—Horace Greeley, founding editor of ‘The New-Yorker’ and ‘New York Tribune’ newspapers

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“Today, not only in philosophy but in politics, government,
and individual morality, our generation sees solutions
in terms of synthesis and not absolutes.
When this happens, truth, as people have always thought of truth, has died.”  

— Francis Schaeffer

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“I believe that in the end the truth will conquer.”

–John Wycliffe

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“Let us rejoice in the truth, wherever we find its lamp burning.” 

–Albert Schweitzer

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“Never let us be guilty of sacrificing any portion of truth on the altar of peace.” 

–J. C. Ryle

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“As a matter of honor, one man owes it to another to manifest the truth.”

–Thomas Aquinas

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To suggest that Truth will prevail or conquer is almost immature or self-evident, for of course nature will continue long after the lies, fictions, and arts of men die. Truth (Nature, the Universe) is the permanent foundation of all things, even lies and liars, while man’s inventions therein are always temporary. So yes, it is a 100% safe bet to say that Truth will conquer. For no lie can exist without the very Truth it pretends and emulates in darkness. What is a lie without some Truth to harm or obfuscate? Truth is, of course, the very Real source of every lie. What lie can exist without some Truth to defy? What would be the point? Truth (God) will prevail. The Universe (God) will continue unending. And unfortunately, that means with or without us. It is our own power of choice by the gift (or curse) of free will that shall ultimately decide our own fate. And most, even the self-proclaimed, flatteringly titled “atheists” will ironically blame God instead of themselves for the consequences of the choices they individually and collectively made, while the Christians will in turn blame the Atheists (absence of God), even though they never followed the Law of God themselves, lost in their false (flattering) title and idolatry, never acting “christian” in any way and thus offering no example that the atheist would seek to emulate. But what is God by definition but the Nature of the Universe Itself in a state of reclamation, reclaiming that which stands opposed and in disharmony with Its structure and Law?

Unless we choose to always speak in what is called as the Word of God, which is nothing more than the Pure and self-evident (not man-made) Truth of all things at all times, and unless we act only upon that Word as Truth, then not only our fictional creations but also ourselves shall perish from this Earth. Some would call this God’s wrath, but It’s really just Nature taking its reasonable course, like the body’s immune system fights an infections disease. To impose a pretended “religious” conscious and intent to Nature (God) is only useful for the blame game, for blaming God when we each are the problem together. Call it what you will… the Truth will remain as hopefully will that remnant of the meek Living in It as inheritors.

To manifest the Truth is to manifest the example of a man following God’s Law, which is of course Jesus the Christos (anointed). This, again, is not religion. It simply means that the “return of christ” will happen when men start acting christ-like. This is the True message of the Bible hidden from us. And so, as soon as we begin manifesting the Truth and Its Law through our own responsible actions, we shall be witness to the return of the Son (Law/Word) of God. Thus, the Bible instructs us to become the “sons of God” as well, meaning that we should follow the example and heed the Law of Truth (God). You see, eventually one realizes that all of these terms are defined as the same thing, the same concept. God is Truth (the Universe), Jesus is Truth manifested as a man following the Word/Law of God, and so man is to become each and every one a son of God as well, by emulating the example, not by worshiping it as an idol as the corporate church does. The story of God’s Law personified through Jesus Christ’s example doesn’t seek fans, but followers. This, again, is self-evident. To follow Christ is to Follow the Law (Son/Word) of God. It’s not rocket science, and it aint even religion. Just common, Natural sense. Religion is nothing but incorporated idolatry; a big, multi-cultural, inter-denominational, membership only fan club for sinners. The Bible is Law. Its followers are sons of God, True and self-governing Christians.

All of this is explained and detailed from the lexicons and concordances and Bible dictionaries in my book, Strawman: The Real Story Of Your Artificial Person. Please download it for free, here.

Now, let us examine this agentic delusion more closely so that we may understand the nature of pension payments as a reward for our prostitution to the legal, corporate, de facto (illegitimate) state…

A cop, for instance, may believe he or she is acting lawfully while at the same time exacting his fellow citizens through tickets, though this is obviously an extortion and unlawful summons to appear. One may even state that, well, my department is good compared to the others, as if government is not a complete and whole entity, and as if working for the part is not prostitution of ones self for the well-being of the whole.

A checkout employee at the local grocery store may believe he is acting lawfully, morally, merely doing the simple job description he is paid for. He or she may even do it with a smile, with “service” above and beyond his employee handbook, getting his picture on the wall of shame as employee of the month. Imagine that: prostitute of the month… Little does he or she contemplate that in fact every action taken and every hour worked on behalf of that “grocery” store or other “retail” story was once a crime against all people, before it was made a protected criminal activity by government license. The word retail is a feudalistic term, of course, referring to the profits of landlords over their vassals. But what exactly is a grocer, just what is this modern form of retail sales, and most importantly, why do we accept it as completely normal, reasonable, customary, and even lawful?

GROSS – Great; culpable. General. Absolute. A thing in gross exists in its own right, and not as an appendage to another thing.

GROCER – In old English law, a merchant or trader who engrossed all vendible merchandise; an engrosser. See Engrosser. (–Black’s Law Dictionary, 4th Edition)

ENGROSSER – One who engrosses or writes on parchment in a large, fair hand. One who purchases large quantities of any commodity in order to acquire a monopoly, and to sell them again at high prices.(–Black’s Law Dictionary, 4th Edition)

ENGROSS – To copy the rude draft of an instrument in a fair, large hand. To write out, in a large, fair hand, on parchment. In old criminal law. To buy up so much of a commodity on the market as to obtain a monopoly and sell again at a forced price.(–Black’s Law Dictionary, 4th Edition)

ENGROSSING – In English law. The getting in to one’s possession, or buying up, large quantities of corn, or other dead victuals, with intent to sell them again. The total engrossing of any other commodity, with intent to sell it at an unreasonable price. This was a misdemeanor, punishable by fine and imprisonment. (–Black’s Law Dictionary, 4th Edition)

HIGHWAY ROBBERY Theft taking place on a public road. Slang for a transaction where one party has such leverage over the other and can demand such a high price so that it is akin to a robbery taking place.(–Black’s Law Dictionary, 2th Edition)

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This certainly gives new perspective to our “friendly neighborhood grocer” now doesn’t it? America: the land of engrossment. What a gross situation, literally!

It actually makes some sort of vile, reprobate logical sense to us in our entrained, educated, entertained public-mindedness to sell or buy something at more than its actual value. It’s built into the economy. It is, in fact, custom. But even “customs” have been made into a taxable, commercial, legal thing – the customs house. Yes, they found a way even to tax customs, for today, all of our customs (even Christmas) are valued in the usury of mammon! Yet this action of engrossment is perhaps the single source of all our problems! Simply stated, engrossment is the opposite of charity, and charity is one of the Highest of all the Laws of Nature. Engrossment only exists where some form of money (mammon) exists. And in truth, the same thing can be said about needless suffering, poverty, and inequity, which cannot exist without such gross behavior and custom. Even more to the point, the flattery of titles of nobility are as well pointless without the control and hoarding from others (engrossing) of the money supply, whatever it is that is called as money. In other words, without money, there is no purpose for a de facto (illegitimate) government as the “United States” corporation and its district as a monopoly. For money is in fact a non-governmental tool, meaning not a de jure (lawful/legitimate) reason for the existence of any government, especially one claiming the God of the Bible as its excuse for existing!

What was once considered the public crime of engrossing is now made legal (licensed) in corporations that government holds significant or controlling shares of stock in through its pensions and other investment schemes… does this not ring of a conflict of interest to your ears? And not just a mere conflict of interest, but the ultimate one.

The point here is that whatever we do as an employee (agent) of this government-owned and regulated corporate structure, we have been entrained to overlook or to be completely ignorant of the harm we all do and the pain we continuously cause to each other. The “economy” thrives on this societal ignorance of greed, usury, engrossment, and extortion (exaction) toward each other. We literally call it customer service as we rape each other. And government calls us not as taxpayers but as customers, because most of what municipal governments do nowadays is labeled in the CAFR (audit) as non-governmental, for profit commerce, from golf courses to water and sewer districts. And even the most pointless or seemingly harmless and redundant jobs we partake in cannot be excused morally just because we are not CEO’s or Boards of Directors or even managers of the collective corporations we agree to prostitute ourselves to. They could not exist without us grunts, which is why they are pushing to replace us with AI and robotic labor, with self-checkouts and self-paying tickets, with a cashless world society where all men are required to have the mark of digital identity to even purchase or be in possession of a smart-dusted loaf of bread. The harsh reality is that we (the public) are doing this to ourselves, for not one part of this global system could be implemented and carried on without the base hireling at the ground floor selling, fixing, maintaining, servicing, and assimilating us into that which we are prostituting ourselves in mammon (money) to support. It just our jobs. We are paid to screw each other in every way possible, ignoring in every respect the scriptural, moral law that opposes it.

But I digress…

Only persons (legal status) are borne from such a certificate. That we choose to carry that legal identity (sameness) throughout childhood and into adulthood (legalized adultery) is voluntary (avoidable). But the use of that birthed, certified legal identity (name, title, number, mark, signature, etc.), as the property of government, causes us to act in agency under a contractual relationship with government, as virtual employees, and thus to act in accordance and under the administration of its laws. The creator (principal) controls its creation (agent). The user of a creation stands always subservient to its creator. Thus the avoidable use becomes an unavoidable debt, called a performance debt because the user must perform by the law of the person he or she uses. Enforcement of that legal system and law of persons is thus authorized by the volunteer, just as anyone that joins the military as a volunteer agrees to the violent and mental oppression that will be delivered after volunteering (contracting). And this concept is the cause of all our problems, for pension funds are created by government, not us. We are mere users and taxpayers. Of course, one only can be made to pay taxes when one uses that which belongs to another. In the end, all that we do as common US citizens is in persona, in the property of government, which means that in Reality (Nature) we own nothing. What is done or purchased in person belongs to government, for the person is certified by government as property. This is how everything was stolen from us — by tricking us all into acting as that which we are not, as a fictional person of (belonging to) the “United Sates” corporation. We are as art; cartoon characters controlled by the hand of legal artists, for a person is made of words and can only exist by words. Persons exist and have artificial life only in legal jurisdictions, the equivalent of an imaginary cartoon realm. It is in this imaginary, fictional legal realm that all money and property exist as well, for there is no such things as these in Nature.

Don’t believe it? LOL! Whose name is your home registered in? Your automobile? Your children?

When you work as an employee, do you think you own the title you use, or is it an agency (property) and office of the corporation (principal) that hired you?

Simply put, if you don’t own your public, legal name (status), which of course you Lawfully cannot, then you don’t own anything purchased or registered as property in that name either. To register a car in that certified (state-owned) birth name and number (legal identity) in exchange for an empty certificate of title is to claim ownership of that vehicle in a person (status in agency) owned by the United States (principal). Likewise, to contribute to a pension fund, being a taxpayer or pensioner, is to do so while acting as and in the property (persona) of the United States. As a man (male or female), you have no right to that which was contributed in the person (property) of another, any more than an employee can claim ownership of an employers product or property. This will become more clear as we progress, but should be at least basically understood here so as to comprehend the complete picture of how and why these pension funds were set up for “public” purposes. What is public is property of government, to be used and enjoyed by its proprietary citizens but never owned by its citizens. Citizens are public, are property, for citizens are fictional persons created and certified by the United States. What is public is never property of any one person, but of the principal that offers it in contract. Citizenship is a contractual relationship offered and accepted. Our use of the signature in the persona (status) is prima facie proof of our individual consent to the law of persons.

The title “pensioner” is as well property of the state, as is the title and office that employs the federal, legal persona you voluntarily use. And guess what? The state would not hire you without a legal persona it can control and extort taxation from! For every person of the United States is required to pledge allegiance to it and its constitution, its law, and all its de facto (illegitimate) corporate structure. Of course, this allegiance is not a choice, but a character built into the person (status). A man that accepts and uses this status (person) is presumed to understand all of this, though most stand as merely unaware users that never question or bite the feeding hand of their chosen legal masters (false gods).

When we speak of this term “government” in its present, de facto (illegitimate) form we are not speaking of those traditional institutions romanticized from history, but the current corporate, public structure under uniform commercial rules in the administration of international and interstate commerce and trade. We are talking about the universal incorporation of all the world’s corporations under one body politic, controlled by an internationally assembled, unelected, governing body of private, non-governmental associations. E Pluribus Unum… out of many one. For corporations are persons too, remember?

Look at any board of directors today, and you will find nothing less than the representatives of corporations and corporate interests. But it’s how these corporate executives arrive in such positions of authority, as electing board members, that we must come to understand. For if government is the main shareholder of any corporation, and shareholders vote to elect by proxy shareholder voting rules the board members of all the corporations they hold stock for in pension and other investment funds, then government is by default the major holder and thus collective electorate of all boards of directors of all stock-owned corporations in the world. Its really simple math, though with a globalist twist…

If you own votable corporate stock, you get a vote. Done.

As simple as this seems, this is the very heart of globalism, basically defined. And only through these pension fund schemes could this total control and collection of corporate stock have been pulled off. Why? First, they tricked us all into voluntarily contributing to their globalist investment goal, which is the most brilliant deceit imaginable. So there is no illegality here. We let it happen without a whimper. Secondly, they prevented each of us from investing on our own in good conscious, in moral causes or charities, or even in good companies run by good and moral men, in effect causing us to trust them to invest for us, on our behalf. This is called a legal trust, not to be confused with Trust (faith) in God. All legal words are opposite to their Natural counterparts.

They stole our choice with our expressed, contributing consent, and in turn invested in the worst of the worst corporations and elitist investment groups, those that most of us would protest against and hate if we cared to examine them close enough. Today, we continue to let this happen, and now the endgame is apparent. Global corporate governance is key to governance of all economies and social structures. For to control the entire commercial structure of the world is to control the harvesting, resource management, manufacturing, wholesale, resale, price-fixing, and the power of monopoly creation and trust building. For when the lawmaker, the regulator, is also the corporate owner bound by that law, then in effect there is no Real law or regulation, only a global system of organized (legalized) crime through extortion, exaction, engrossment, taxation, and usury. This we call as “government.” And as main shareholder, government’s main purpose is by government law to make a profit for each corporation’s shareholders, which again is mostly government. I can think of no worse situation to be in than this, for laws will be passed to ensure corporate health and welfare (profit) over consumer health (Nature) every time. This is indeed a crisis of unimaginable proportions. But we must remember that government is in control of corporations, never the other way around. The total power and authority lies with government in every way.

Now, when you hear shock-jocks and news outlets make claims that “government is owned by corporations,” you may understand that this is so far from the provable facts that it is laughable. However, you also must realize that it is in the best interest of both corporations and government to let such lies be as prevalent and apparently true and accepted as they are. The fact is, corporations cannot own government, because government has no ownership stock. This, again, is a self-evident Truth. The synthesis of government and corporations, on the other hand, is very concerning, to the point that to be a politician (regulator) is not much different that being a general board member on all corporations. For the regulator is the owner of that which it regulates, meaning that the regulator is bound by law to ensure profitability to each corporation, and thus may not pass laws to cause unprofitability.

So… do you now comprehend why oil spills aren’t cleaned up, why government doesn’t force oil companies to go broke in cleaning up their messes, or why pharmaceuticals are allowed to charge 300,000% markups on drugs that often maim or kill those that take them? This is the very nature of the global, corporate governance world we are allowing to be built all around us.

What is somehow not well-known publicly, though it appears fairly obvious, is that all governments from the district, city, county,  state, and federal level are also municipal or other corporations. Artificial persons. Thus, I named my first documentary and website as The Corporation Nation. If this is hard to believe, just look at your city, county, or state seal:

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Why is this important? Consider this… when under a corporation, one is not self-governing but instead under a contract to perform under strict (contract) law. There is no room for moral diversion or disobedience in a contractual performance debt such as citizenship. The maxims of law state clearly and without confusion that the contract makes the law. That’s why the allegory of the devil is said to be powerless over men without a contract, for in no other way may the devil turn good men away from the protections of God’s Law. In other words, while you are made to believe that you are under the constitutional and common law systems through entertainment and public education, you are in actuality under the public laws of municipal corporations governed by the state in interstate commerce, not the constitutions or so-called “law of the land,” as they say, which is just a romantic term for due process of law. These are, in other words, creations of government, illegitimate corporations created by government, not the legitimate governmental (constitutional) institution itself. Ignorance of this fact is key. A municep or provincial citizen was of course the name of a common Roman without respected higher status. As synonyms for what a provincial or municep is we find peasant, rustic, one-horse, unsophisticated, hick, jerkwater, and bumpkin. You may wear a suit to work as well, but you are no less unsophisticated in your status than anyone else, just a bit more brain-washable and controllable. You may seek to emulate and follow the corrupt example of your false, legal, corporate gods by dressing like them, because you seek to be like them, to earn their income and share in their pensions and bonuses, but to do this you certainly must leave Jesus in the dust of any righteous path.

MUNICIPAL CORPORATION – A public corporationcreated by government for political purposes, and having subordinate and local powers of legislation(–Black’s Law Dictionary, 4th Edition)

MUNICIPAL FUNCTION – One created or granted for the special benefit and advantage of the urban community embraced within the corporate boundaries. Sometimes called a private function, as distinguished from a public or governmental function, which is one conferred or imposed on the municipality as a local agency of limited and prescribed jurisdiction to be employed in administering the affairs of the state, and promoting the public welfare generally. (–Black’s Law Dictionary, 4th Edition)

MUNICIPAL AFFAIRS – A term referring to the internal business affairs of a municipality. (–Black’s Law Dictionary, 4th Edition)

CORPORATE LEGAL INDIVIDUALMunicipal corporation possesses two kinds of power, governmental and public, and proprietary and private, and in exercise of former, corporation is amunicipal government,” while as to latter, it is a corporate legal individual.” (–Black’s Law Dictionary, 4th Edition)

POLITICAL CORPORATIONA public or municipal corporation; one created for political purposes, and having for its object the administration of governmental powers of a subordinate or local nature(–Black’s Law Dictionary, 4th Edition)

ENFRANCHISE – To make free; to incorporate a man in a society or body politic.

DISSOLUTION (Of Corporations) – The dissolution of a corporation is the termination of its existence as a body politic. This may take place in several ways; as by act of the legislature, where that is constitutional; by surrender or forfeiture of its charter; by expiration of its charter by lapse of time; by proceedings for winding it up under the law; by loss of all its members or their reductian below the statutory limit….

GUILDHALL – The hall or place of meeting of a guild, or gild. The place of meeting of a municipal corporation. The mercantile or commercial gilds of the Saxons are supposed to have given rise to the present municipal corporations of England, whose place of meeting is still called the “Guildhall.” (–Black’s Law Dictionary, 4th Edition)

GUILDA voluntary association of persons pursuing the same trade, art, profession, or business, such as printers, goldsmiths, wool merchants, etc, united under a distinct organization of their ownanalogous to that of a corporation, regulating the affairs of their trade or business by their own laws and rules, and aiming, by co-operation and organization, to protect and promote the interests of their common vocation. In medieval history these fraternities or guilds played an important part in the government of some states; as at Florence, in the thirteenth and following centuries, where they chose the council of government of the city. The word is said to be derived from the Anglo-Saxon ”gild” or “geld,” a tax or tribute, because each member of the society was required to pay a tax towards its support. (–Black’s Law Dictionary, 4th Edition)

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Not a government, but a voluntary guild for commerce (federal and state business, enterprise), a municipal corporation granted subservient administrative powers…

But wait, government isn’t a corporation, it’s a body politic, isn’t it? How much clearer can it get, man? Did you miss the definition above as to how a body politic (corporation) dissolved?

The question you should be asking is, how did I become a member of my local municipal body politic (corporation)? How the hell did that happen? And the answer, again, is that you are not. Your assigned legal identity (persona) is. And because of that, you (the user but not owner of that person/status) must follow the laws of membership in bond and surety to it. For together, we all constitute an artificial person in law, called a body politic. Congratulations on your unwitting collaboration with this very tricky legal system. And every bad thing that municipal corporation does is in mine and your name, every war and illegal occupation done in our name as one body politic with only one voice, out of many one, E Pluribus Unum.

Yes, corporations are persons too. So don’t feel very special about being an “individual” person. Many natural or individual persons make up a single artificial person but with little or no individual responsibility for the corporations actions or harms. An artificial person (corporation, association, etc.) is never made of only one natural person, except as a corporation sole such as the corporations of the Queen of England and the United Kingdom, the Pope, and the Mormon “corporation of the president.” All of us are just the taxpaying tributes of the municipalities, no different that those of Caesar’s realm. Anything goes and any Law of Nature can be pretended to be broken here in legal land. Where else can men pretend to have limited liability for the damages they cause other men while pretending to be protected behind a corporate name and persona (mask), LLC? Where can doctors practice really bad medicine freely and without consequence unless they have limited liability through the malpractice insurance of a corporation (person) that represents them, allowing those doctors and their fleet of vaccine wielding nurses to harm and kill without consequence or even censure? And where can priests molest freely their trusted non-consenting, underage membership without the corporate protection and veil of the artifice of legal church sanctity? The priest is only one part of the corporation, after all, not the whole. We shouldn’t blame the whole person (corporation) for the actions of just one individual, or at least that’s the bullshit we are taught to accept because its supposedly a sacred institution. LOL!

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“I prayed for a bicycle until I realized God doesn’t work that way.
So, I stole a bicycle and then prayed for forgiveness.”

–Emo Philips

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What is a government issued license? Permission to and forgiveness of committing a crime.

Though the difference here between legitimate and illegitimate governmental structures may seem subtle, I assure you that this is the difference between having that now dead American dream of self-governing Liberty under God, and basic, feudalistic serfdom. But oh, to put this into comprehendible terms… What government creates (e.g. independent municipal corporations and religious corporations) are automatically subordinate, beneath, and therefore subject to that creator (source) government and its false, legal (anti-God) law. Thus the magistrates of governments throughout history have been labeled as “gods,” having nothing to do with religion and everything to do with undue authority. The word god, in fact, is a generic term, used often in law, the Bible, and in history to describe men with higher legal standing and with illegitimate power or authority, as kings, popes, judges, governors, etc. This is general knowledge, though perhaps not commonly known, which well be discussed and qualified (proven) further as we progress.

The same rule of language and Law is to be said about Nature, as all that is not man-made, being a “Creation” of God. Insurance policies, for instance, may or may not pay for an “Act of God,” meaning any Natural disaster or what is not caused by the agency and interference of man. This stands as absolute proof that government recognizes a higher power than man, and thus a higher and more authoritative Law of Nature. This provable fact is all we need to know for our purposes, that this Higher Law and its God cannot be defeated. Unfortunately, most common men have lost this knowledge and understanding to modern religious institutionalism and false doctrines (laws). Here the maxim of law states simply that the creator controls. Thus, to be under such a subordinate municipal corporation (city, county, state, district, etc.) created by the already (legally) existing government, which all municipalities (cities, counties, etc.) are, the public US citizen-ship is automatically and from the beginning so subjected as indirectly governed municeps under that municipal, independent, districted corporation. This common, public status is to be under and subject to that government, not to be the creator and power over government. To be under a municipal government is to be or carry a public status, not private. It is voluntary servitude to the false gods (magistrates) of government.

In a nutshell, this equates to the doctrine and law of agency. Just as an employee is an agent for his or her principal employer, so too is a municipal corporation (city, county, state, etc.) an agent for the principal government that created it. To be under the agent is to be under the principal and law of that agent. For more on agency, check out my book free @ StrawmanStory.info.

And so a pension fund member, for instance, is completely subservient to that fund and its management over its own affairs, just as every other public citizenship has no control over the Social Security Fund most contribute to. When government is higher in status than the people (acting as persons) it governs, then only tyranny and corruption can take hold. A free, self-governing man is foreign (private) to any and all governments, not under their public law but in standing as the private creator of it. We call these “the People,” or in other words, the private States (People) united, which are each foreign (private) to the corporation nation called “United States.” For detailed info on this subject, please get a copy of my book at the link just provided.

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“A thing is private which is not common.

—RES PROPRIA EST QUAE COMMUNIS NON EST. Le Breton v. Miles, 8 Paige (N.Y.) 261, 270. (Black4)

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“A ‘US Citizen’ upon leaving the District of Columbia becomes involved in ‘interstate commerce, as a ‘resident‘ does not have the common-law right to travel, of a Citizen of one of the several states.”

–Hendrick v. Maryland S.C. Reporter’s Rd. 610-625. (1914)

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“The term resident and citizen of the United States is distinguished from a Citizen of one of the several states, in that the former is a special class of citizen created by Congress.

–U.S. v. Anthony 24 Fed. 829 (1873)

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The Importance of the Birth Certificate – Birth Registrar Certification

Do you know the purpose of a birth certificate?

“The legal portion of the birth certificate shows the child’s name, date of birth, and parents’ names, among other things. It establishes Texas RESIDENCY and US CITIZENSHIP. It provides legal identity. A birth certificate is required for Social Security, Medicaid, school enrollment, driver’s license, social services such as a marriage license, and more. In addition, it serves as proof of relationship to parents, which is required for child support services, inheritance, and eligibility for benefits…”

Source –> Texas Government website: http://www.dshs.texas.gov/vs/field/brc/importanceofBC.shtm

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“The governments of the United States and of each of the several States are distinct from one another. The rights of a citizen under one may be quite different from those which he has under the other…”

Colgate v. Harvey, 296 U.S. 404 at 429

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“The distinction between citizenship of the United States and citizenship of a State  is clearly recognized and established. Not only may a man be a citizen of the United States without being a citizen of a State,  but an important element is necessary to convert the former into the latter.  He must reside within the State to make him a citizen of it, but it is only necessary  that he should be born or naturalized in the United States to be a citizen of the Union.”

—Mr. Justice Miller, 16 Wall. 83 U. S. 72, in treating of the first clause of the Fourteenth Amendment, as quoted in United States v. Wong Kim Ark 169 U.S. 649 (1898)

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I could go on and on, but the story is told in just these few official quotes. The birth certificate establishes residency, not citizenship, in the State. It establishes citizenship (domicile) in the Nation, the district of the United States de facto corporation structure and jurisdiction, but not in the State. In other words, to be born in that which is called the United States jurisdiction is to be born in a place (jurisdiction/district) foreign to whatever State (People) inhabits that territory. There is no land in the United States, in the public, just like on the monopoly board, and we go round and round without ever touching any land of our own. US citizenships are foreigners in all 50 States.

Another word for private is foreign. In short, to be common is to be non-private; to be a property of another. To be a common citizen of the United States is to belong (as property) to the United States. To be common is to be public property. There is no Real privacy, only that which is revokable as granted by the authority of the legal gods (creators) of these strawmen, these public persons (legal statuses). And this means one very important thing… all common US citizens are foreigners to the State in which they reside. This is why US “federal” law always trumps state law regarding public, common persons (status). All of the several States are also by law foreign (private) to each other. The “United States” in Washington DC is as well private (foreign) to all 50 States. In this way the federal states’ (municipal) worker public pension scheme we are exposing here can be executed without a hitch. Foreigners have no protected rights in states, and it is in fact illegal for a state to interfere with the forced rights and laws governing US citizens (as properties of the United States corporation). These common rights are not a good thing — not the God-given or Natural Rights of man we believe them to be. The rights of the legal fictions (natural persons) we call as public citizenships are not optional, are forced and enforced at gunpoint, and exist only in the status (persona), never the man. The private (foreign) States cannot protect US citizens against the very fraud being conducted by the federal areas known as “states” and municipal governments thereof. To deny a US citizenship its required and enforced rights per that legal US status would be to break the US constitution and federal law. Protection is an illusion, as is peace and safety (security). Its a well-laid legal trap, a cold comfort based on status (legal personhood), and we have all been caught up in it. Pensioners, however, get an extra bonus, a retirement (death) retainer to keep them quite and numb despite their equal status with all the other common citizenry. They are paid off as prostituting state hirelings to betray their country, to destroy the posterity of their own people in favor of the federal (global) state government and its corporate, de facto municipal structure. And yet it seems that most have no idea they are doing so, standing instead within the arrogance of ignorance caused by public education and entertainment, exactly what we should expect from the common, vulgar class that we have allowed ourselves to become. They’re just doing their jobs, as we say, and as if that slave mentality is some legitimate excuse for total irresponsibility of our actions while employed (in agency).

COMMONadjective – 1. Belonging equally to more than one, or to many indefinitely; as, life and sense are common to man and beast; the common privileges of citizens; the common wants of men. 2. Belonging to the public; having no separate owner. The right to a highway is common 3. General; serving for the use of all; as the common prayer. 4. Universal; belonging to all; as, the earth is said to be the common mother of mankind. 5. Public; general; frequent; as common report. 6. Usual; ordinary; as the common operations of nature; the common forms of conveyance; the common rules of civility. 7. Of no rank or superior excellence; ordinary. Applied to men, it signifies, not noble, not distinguished by noble descent, or not distinguished by office, character or talents; as a common man; a common soldier. Applied to things, it signifies, not distinguished by excellence or superiority; as a common essay; a common exertion. It however is not generally equivalent to mean, which expresses something lower in rank or estimation. 8. Prostitute; lewd; as a common woman… Common in gross or at large, is annexed to a man’s person,being granted to him and his heirs by deed; or it may be claimed by prescriptive right, as by a parson of a church or other corporation sole. (–Webster’s 1828 Dictionary of the American Language)

COMMONSThe class of subjects in Great Britain exclusive of the royal family and the nobility. They are represented in parliament by the house of commons. Part of the demesne land of a manor, (or land the property of which was in the lord), which, being uncultivated, was termed thelord’s waste,” and served for public roads and for common of pasture to the lord and his tenants. Squares; pleasure grounds and spaces or open places for public use or public recreation owned by towns; in modern usage usually called “parks.” (–Black’s Law Dictionary 4th Edition)

VULGAR – noun – The common people. [It has no plural termination, but has often a plural verb.] The vulgar imagine the pretender to have been a child imposed on the nation. – adjective – 1.Pertaining to the common unlettered people;as vulgar life2. Used or practiced by common people; as vulgar sports. 3.Vernacular; national. It might be more useful to the English reader, to write in our vulgar language4.Common; used by all classes of people; as the vulgar version of the scriptures. 5.Public; as vulgar report. 6.Mean; rustic; rude; low; unrefined; as vulgar ninds; vulgar manners. 7.Consisting of common persons. In reading an account of a battle, we follow the hero with our whole attention, but seldom reflect on the vulgar heaps of slaughter. Vulgar fractions, in arithmetic, fractions expressed by a numerator and denominator; thus 2/5. (–Webster’s 1828 Dictionary of the American Language)

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Do not miss the most important aspect of being common as listed above. We are always represented, either by a legislature, municipality, or by an attorney in court, never self-governing or self-responsible. We exist not in a constitutional system but an administrative system. Public persons are always administered, for public persons are under strict law, having no legal right or standing to make moral choices. We are all wards of the state by birth certification (abandonment). But what you likely don’t know is that to be represented by another (agent/attorney) is a sign of incompetence, of a vulgar mind, or one not regenerate or versed in the law or higher functions — in other words, one that is not self-governed. This is not merely the author’s opinion, this is the structure of legal, US law. If you don’t know the legal language, you cannot be free from its clutches and trickery.

The following quotes and citations tell the story of how the common citizen is considered by his low, mean, vulgar status in public, legal persona:

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“The practice of Law is an occupation of common right.

–Sims v. Aherns, 71 S.W. 720 (1925)

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“The practice of Law CAN NOT be licensed by any state/State.

–Schwarz v. Board of Examiners, 353 U.S. 238,239

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“Between 75% to 90% of all lawyers are either incompetent, dishonest, or both.” 

—Earl Warren, former Chief Justice of the US Supreme Court

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“(a) The controlling rule is that “absent a knowing and intelligent waiver, no person may be imprisoned for any offenseunless he was represented by counsel at his trial.

–Atgersinger, 407 U.S., at 37. Pp. 5-6. —Alabama v Shelton 535 U.S. 654

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“…the trial of a misdemeanor starts that no imprisonment may be imposed, even though local law permits it, unless the accused is represented by counsel.

–Argersinger v. Hamlin, 407 U.S. 25, 40 (1971)

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“He is however in a sense an officer of the state with an obligation to the court His first duty is to the courts and to the public, not to the client, and whenever his duties to his client conflict with those as an officer of the court, in the administration of justice, the former must yield to the later. Clients are also called ‘wards of the court‘…” 

—7 Corpus Juris Secundum, Section 4, on “Attorneys”

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“His (an attorney’s/public defender’s) first duty is to the courtsnot to the client.” 

—U.S.v Franks D.C.N.J. 53F.2d 128. 

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Clients are also calledwards of the courtin regard to their relationship with their attorneys.” 

—Spilker v. Hansin, 158 F.2d 35, 58U.S.App.D.C. 206. 

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“Wards of court – Infants and persons of unsound mind.” 

—Davis Committee v. Lonny, 290 Ky. 644, 162 S.W.2d 189, 190.

—=—

If you can’t practice law as your public right because you are ignorant of its terms and usage, then you are of unsound mind, which means you must be represented and placed in wardship. This is 99.9% of all US citizenships. Ignorance of law, both of God and of the legal state, and the resulting ineptness that ignorance causes, is key to the whole administrative, corporate state’s existence and business model.

The practice of law is a common right, meaning it belongs to the public. In other words, you give up that right the second you hire an attorney to re-present you. Only incompetent, unlearned, unregenerate men (acting as public persons) need representation. In other words, the second you contract an attorney, you become a ward of the court, for the attorney cannot act on your behalf unless the attorney is hired. Yes, attorneys are the ultimate prostitutes of the corporate state. It’s their job description. They do not work for you, the client, they work for the court, the state, and its profitable interest. This is to say that the second that attorney speaks on your behalf within a court (at bar), this very action sets the jurisdiction and status of the client (you). Once the first word is officially spoken, the client becomes a ward of court. The attorney literally cannot speak and would not unless the assumption of that courts jurisdiction was upon himself as your representative. To put it even clearer, to be a ward is to be subject. In other words, you lose the second you receive and accept representation. You are lost in the legal matrix code at this point. And as we can read, this step is crucial for the administrative process, for it cannot in its de facto (illegitimate) state of commerce and contract law do anything to you unless you accept representation. It cannot throw you in a for-profit prison without representation. There are no exceptions to this rule. So remain ignorant of the law that governs your person at your own peril.

I cannot relay unto you how you and I have been tricked and robbed of all natural right and dignity unless I can cause you to understand that everything we have been tricked into doing, into acting, and into speaking, is vulgar (common). We speak the vulgar language called English, which is also known as the vulgarity of dog-Latin. We therefore read the Bible in English, which is referred to above as the vulgar version. We act in the lowest and thus most vulgar of legal status (persona), which is a common, national citizenship instead of a private, self-governing Statehood (People). Another word for national is listed above as common, which again is why US citizens are not part of the private States we reside in. And we interact in every way and with everything in the most vulgar of intent and purpose, which is on the behalf of money and this artificial value system that can only be expressed via the monetary revaluation of all Reality, and which is referred to as mammon — where all things and all men (under status) have a price, including our own morality, dignity, posterity, choice, and fate. In mammon, even the acknowledgement of Truth can be sold to lies. We have been devolved into this state, even as we are tricked into the delusion that US citizenship is an elevation in status. In fact, there is no lower status than national (commercial) citizenship. We can get no lower, for we can get no farther from being a moral, self-governing people. With this understanding as the basis of exactly what we have been voluntarily subjected to, only then may we come to understand these pension and other financial schemes and why they are created and executed in the distinct and corrupt way they are. Volunteerism, that is, choice, is everything, for it is simply the choice between the Law of God (Nature) or the legal law mammon (money). What is priceless (i.e. a Creation of God) is legally recreated (corrupted) by men into that which carries a price, a valuation in artifice, the fiction of law that is currency, credit, and debt.

This essay is not merely focused on the subject of its title, as should be apparent at this point, but stands as a summation of all my previous exposures of the CAFR accounting system and global pension fund schemes, as well as my free documentary films and CAFR School articles and videos found on this blog and at my other website: TheCorporationNation.com. It also reflects the years of research that went into my book series on law entitled Strawman. It’s now been eight years since I released my first documentary film, aptly entitled, The Corporation Nation, with the in depth follow-up called, The Great Pension Fund Hoax, with CAFR School made shortly thereafter. And, in looking back at this seemingly fruitless adventure in attempting public exposure and action, it’s this authors resulting opinion that we are approaching a time when all these plans heretofore exposed by yours Truly have now reached their pinnacle, a boiling-over point, finally proving themselves as the ponzi schemes they have always been, and thus finally coming to their intended fruition. We are entering into the climax of the story, the end as it was always planned by the authors of these pension “plans.” I offer this essay now not because I feel there is still a time to ward off what is to come, but for the purposes of providing a clearer understanding of the complete story, to leave at least a documentary essay of this almost inconceivable puzzle as a whole, as the incontrovertible truth in all its pieces to those few souls that seek to discover it no matter how uncomfortable and self-damning it may be to those brave enough to comprehend it and thus take equal responsibility for it.

I can only suggest that we have already entered into that not long ago foretold Orwellian time of a dystopian hell on earth, where telling the truth is a revolutionary act, and where, as Arthur Schopenhauer once predicated:

–=–

All truth passes through three stages. First, it is ridiculed.
Second, it is violently opposed.
Third, it is accepted as being self-evident.

–=–

What I present to you herein is exactly that, being the self-evident truth of our collective, societal disposition under a not-so-new globalist or “one-world” government and just how it has happened – but more importantly how it could not have happened without this globalist pension fund hoax (scheme) and why it was all perfectly “legal.” My name and efforts have been ridiculed and violently opposed by many that have a stake in such pension schemes, as should be expected, even while we are experiencing the reality of its undeniable truths today. Those who shall have their so-called “retirements” washed away into eventual nothingness will watch it all disappear like a ship sailing off into the horizon, a modern great flood caused by the angry and zealous demi-gods of money, the de facto government itself.

Yet make no mistake here, for all of us are complicit. All of us are to blame, myself included. Nothing stated in this essay does not include myself nor dismisses my own publicly imposed ignorance on the subject, which I have happily corrected and at least tempted to share with you. Why is this True? We have all contributed voluntarily to our own collective dystopian transformation into globalism, a corporate new world order, and even now the intolerable consequences of our collective ignorance and inaction are nigh. There is no need to utilize or promote fear, for that time has passed. Fear is only useful for cause or prevention, not for the already manifest consequences of purposeful ignorance. If anything, the reader may find merely a purpose for preparation against what is this globalist scheme. I offer within this exposure no hope, just the truth. For when the truth is known and adhered to, no hope is needed, and no lie can defeat us. I do not hold out any hope that things will change from within this system, only without. And deep down we all know that only each of us alone can change, stop participating, and stop contributing to our own economic enslavement. But this most essential key of the realization and actualization of self-responsibility has been stolen from us, reeducated away from us, to the point where at all times and in all events, everyone else is to blame but never ones self.

In essence, this is exactly the dependent mindset and lifestyle desired and designed for us by those who seek to control us. And so far, it’s been a flawless execution, as we have performed our parts (as debtors) with graceless fanaticism and strangely misplaced patriotism.

The easy version of this essay is simply that all governmental corporations, from the city to the state and national level, have unofficially merged. Not the common people, just the artificial persons (e.g municipal corporations). We must understand though that these are but tools, agents of the actual governmental structure, being incorporated entities thereof and under its umbrella of international law. In other words, these are not governments in and of themselves. Yet they are tasked by the source, de jure (legitimate) government to stand in its place, in its name, and under its law. Chicago, or the incorporated City of Chicago, is not an independent government, but one completely subservient to its creator (state/nation) its law. These, including the so-called “United States” municipal corporation located outside of and foreign to the 50 States united in Washington D.C., are called de facto governments. One seldom if ever finds a system of government in any nation that does not have both, the legitimate always justifying and creating the illegitimate due to reasons such as war and emergency, where constitutional law is all but suspended.

But don’t take my word for it, just read what Congress had to say about it:

Since March 9, 1933, the United States has been in a state of declared national emergency… These proclamations give force to 470 provisions of Federal law. These hundreds of statutes delegate to the President extraordinary powers, ordinarily exercised by the Congress, which affect the lives of American citizens in a host of all-encompassing manners. 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.

–93d Congress 1st Session – SENATE Report No. 93-549 EMERGENCY POWERS STATUTES: Provisions of Federal Law Now in Effect Delegating to the Executive Extraordinary Authority in Time of National Emergency – introduction section of the REPORT OF THE SPECIAL COMMITTEE ON THE TERMINATION OF THE NATIONAL EMERGENCY UNITED STATES SENATE NOVEMBER 19, 1973. Link–> https://archive.org/stream/senate-report-93-549/senate-report-93-549_djvu.txt

–=–

Now stop and think about these statements by Congress for a moment before we move on… and no, they did not fix this problem. In fact, they are quite content with it because it takes any responsibility out of their hands. They can pretend that their hands are tied while the president runs rampant. And no, nothing has changed since this congressional publication, though it has gotten much, much worse.

What, in peace time, controls such things as property management, production, commodity storage and distribution, transportation and communication, private enterprise, travel, and all the other plethora of commercial activity of American citizens?

Why corporations, of course. Why is this true? Because corporations are creations of and under government law. As fictional, legal, artificial persons (corporations), they simply cannot exist without their fictional, governmental source. But most importantly, in peace time, we must ask who owns these corporations that run the commercial world? The answer to that question is the entire basis and intent of the creation of the pension fund scheme. For he that owns stock in a corporation, owns that part of the corporation. Through pension funds, government is now the owner and thus controller of most corporations worldwide not merely in war or emergency, but in peacetime (which is just another word for free-flowing international and interstate commerce). And this is how the illegitimate governmental structure, a creation of the legitimate constituted government, took over its creator in both war (emergency) and peace times. For the distinction between what is a time of war and emergency and what is peace has been so blurred that most common folks have no idea that no war has ever been declared legitimately by congress since World War II, and that all military actions since have been illegitimate Executive Branch (presidential) actions done through the doctrine of emergency, through Presidential Directives and Executive Orders. All that death and destruction on both sides was all done despite Congress, or in other words, without the representatives of the States. And that’s just how they like it.

NATIONAL EMERGENCY – A state of national crisis; a situation demanding immediate and extraordinary national or federal action. Congress has made little or no distinction between astate of national emergencyand astate of war.” (Black’s Law Dictionary)

DE FACTO – In fact, in deed, actually. This phrase is used to characterize an officer, a government, a past action, or a state of affairs which exists actually and must be accepted for all practical purposes, but which is illegal or illegitimate. In this sense it is the contrary of de jure, which means rightful,legitimate, just, or constitutional. Thus, an officer, king, or government de facto is one who is in actual possession of the office or supreme power, but by usurpation, or without respect to lawful title; while an officer, king, or governor de jure is one who has just claim and rightful title to the office or power, but who has never had plenary possession of the same, or is not now in actual possession. So a wife de facto is one whose marriage is voidable by decree, as distinguished from a wife de jure, or lawful wife. But the term is also frequently used independently of any distinction from de jure; thus a blockade de facto is a blockade which is actually maintained, as distinguished from a mere paper blockade. As to de facto “Corporation,” “Court,” “Domicile,” “Government,” and “Officer,” see those titles. In old English law. De facto means respecting or concerning the principal act of a murder, which was technically denominated fact. (–Black’s Law Dictionary 2nd Edition)

–=–

So how does a ruler that is unrightfully a dictator at heart, that is, a president or bloodline of rulers that hold only non-plenary (non-possessive) positions in a legitimate government, as non-landholders, become the opposite, as illegitimate plenary holders of that over which they govern? Simple. Turn all legitimate government agencies into illegitimate ones, all established cities into incorporated tools of the dictator (bloodline). In other words, incorporate the world! Turn all Real things into artificial persons, places, and things (nouns) by legal status and place them under your system of law… including all the common people. All common people must become “natural persons” of the illegitimate, incorporated district government, the corporation called “United States,” while at the same time still be made to believe they are part of the source, of the legitimate People of the foreign (private) 50 States united. But the “United States” district corporation is foreign to each state, just as each state is foreign to all others, also called private or several. Please see my free-to-download book, Strawman, for a full, neutral breakdown of these legal facts. They are not disputable but by the ignorant, patriotic believer that holds no evidence for those beliefs.

Whatever you may think your “government” is as it manifests in these corporate, municipal entities, I assure you, they are not the same as what you are taught in history class or political science. Education is a process of dumbing down, not a lifting up. Nor is the securities and exchange scam and pension fund ponzi scheme in any way a legitimate governmental operation. In essence, we have allowed over many dumbed down, tricked generations, the de jure form of government to manifest itself within its own evermore de facto shadow, to the point where the original and rightful government and its constitution sits absentee from most commercial, international operations of its de facto corporations and municipal districts, standing only when it need to justify its shadow in the light of scrutiny, as is the honorary position of all so-called “rightful” kings (legal gods). Congress is too busy with the management of its created, de facto, corporate empire called “United States” to bother with anything legitimate (de jure) anymore. And the reason for this is quite clear and simple… the common people have lost the art and ability to govern themselves, and have become completely dependent and in love with the illegitimate money, credit, and commerce system created by congress into this de facto (illegitimate), non-governmental structure of international and administrative law. By turning the legal status of all men and all things (properties) legally illegitimate (artificial) as well, including our de facto marriages that can be suspended by decree (divorce), causing all our children to be re-born without recognition of blood-right into this de facto district of the corporate municipal states (federal areas/districts) and under that corporate “United States” through birth certification, and leaving us all standing only as national (corporate) foreigners in the States (territory/land) we reside (without ownership).

Yet we still believe that as incorporated, contracted, completely commercial and subservient US citizens that we’re somehow also “Free” as “We, the People.” But those “People” only exist in the States, not in the corporation nation. This, of course, is why Federal (“United States”) commercial (interstate) law trumps state law in every way, for a US citizenship is not protected in any way from “United States” because that legal, national status belongs to its creator, the “United States” corporation and district. This is not a self-governing status in Nature, in blood, but a fictional persona (mask) worn by common (vulgar) people that cannot govern themselves or has been so dumbed-down that self-governing is impossible.

To be clear, there are two forms of freedom. The first is Natural Freedom, being a state of spiritual Being self-governed under the Law of Nature (God), being totally self-responsible, and without legal protection or respect of anything artificial (creations of men). The opposite version is citizenship, or political freedom, called by the legal terminology as freedom, which is defined as enfranchisement – to be free in a legal, public, open-air prison called a district (e.g. that of the District of Columbia). The slaves were not freed naturally, but nationalized by enfranchisement. They were made US citizenships (persons), given protective legal status. But with protection comes subjection, a maxim of law. US citizens, white or black, believe they are naturally free (self-governed) under subjection to God’s Law (the Law of Nature) when in fact they are enfranchised (legally free) under subjection to false, legal gods (magistrates) and their army of administrative agents. And so to understand these international pension fund and globalism schemes, this difference between what is Natural and what is artificial (legal) and political must be understood. For a subject has no rights under God (Nature) as a man, carrying only the contracted to legal rights assigned to his person (legal status) in society, in agency (enfranchisement). Only the self-governing man under the Law of Nature (God’s Law) is and can be Naturally Free. Again, this is not disputable, and stands as the foundation of law. More importantly, we must know that by law and even logically, a person (status) cannot be Truly Free in Nature, for a person is not of Nature, not of the God of Nature. A person (legal status) is a creation of man, not a Creation of God (Nature). Nothing that is legal is of Reality, of Nature. This is self-evident, though it may be ridiculed and violently opposed by those so corrupted by their own legal person-hood that they believe they Truly are that persona. You may believe that you are the mask (persona) you wear (use), but you are not. You are Reality, part of Nature, and nothing of fiction is of Nature nor of man. Pension funds are created and administered on behalf of persons, not men. Men have no right to pension benefits, only persons do. But persons have no rights other than what is bestowed them contractually. This is how men are taken from their Natural element and “God-given” Rights of blood inheritance and rebirth into the legal realm of fiction. In other words, men have no Natural Right to claim anything of the legal fiction, for Natural Rights are said to be God-given and thus unalienable. To make legal claims to fictional properties (persons, places, and things), one must subject themselves to such a status as is recognized by the de facto state (district), which is opposed to Nature and thus Nature’s God (Creator). Remember, this is not religion, but there very essence and structure of law. The legal gods cannot control men of (Creations of) God unless they turn away from God’s Nature and accept legal fiction as their false reality. And this is the whole essence of the Bible and why it is accepted as the foundation of law. Once the Bible (moral) law is broken by men that accept personhood (legal status) for gain in mammon (commerce, money, etc), then the Law of Nature is broken, and the man no longer has the unwritten protection of God’s Law. In other words, he can no longer be self-governing under God’s Law of Nature because he is using the artificial property (fictional title/name/number) of another man’s recreation, not that of God’s Creation of Nature (Reality).

—=—

The true name of Satan, the Cabalists say, is that of Yahveh reversed; for Satan is not a black god, but the negation of God. The devil is the personification of Atheism or Idolatry. For the Initiates, this is not a Person, but a Force, created for good, but which may serve for evil. It is the instrument of Liberty for Free Will.

—Albert Pike, ‘Morals and Dogma,’ Page 102

—=—

“May the Force be with you…”

—Line from Star Wars, a proverb spoken universally by Jedi on both the light and dark side

—=—

It’s all about using the force, a power created by the negation of God and Its Law and Laws of Nature. Power without Law, without God. In other words Super (above) natural power. Authority without conscious or moral checks. What appears as the light leads irrevocably to the dark side and back again, for the light is artificial. And even Satan (darkness) appears as if the light, lies as if Truth.

All sound familiar? Did you actually think the Star Wars saga was a good thing?

Better read between the lines to see the real agenda…

—=—

“…We stand on the threshold of a new beginning. In order to ensure our security and continuing stability, the Republic will be reorganized into the first Galactic Empire, for a safe and secure society, which I assure you will last for ten thousand years. An Empire that will continue to be ruled by this august body and a sovereign ruler chosen for life. An Empire ruled by the majority, ruled by a new constitution!

By bringing the entire galaxy under one law, one language, and the enlightened guidance of one individual, the corruption that plagued the Republic in its later years will never take root. Regional governors will eliminate the bureaucracy that allowed the Separatist movement to grow unchecked. A strong and growing military will ensure the rule of law.

Under the Empire’s New Order, our most cherished beliefs will be safeguarded. We will defend our ideals by force of arms. We will give no ground to our enemies and will stand together against attacks from within or without. Let the enemies of the Empire take heed: those who challenge Imperial resolve will be crushed

—The Declaration of a New Order,
a proclamation by Supreme Chancellor Palpatine
as an Extraordinary Session of the Galactic Senate
and then to the general populace,
proclaiming himself Emperor of the galaxy:
from the science fiction movie series ‘Star Wars’

–=–

Very familiar indeed. Agenda 2030 as an organized world government within the United Nations is expressed here in its bitter totality. Be it a galaxy of planets or a world of nations, the goal is the same. UN Peacekeeping forces will and certainly are enforcing international law even as we speak. But just does it work?

“The UN has no military forces of its own, and Member States provide, on a voluntary basis, the military and police personnel required for each peacekeeping operation.

Peacekeeping soldiers are paid by their own Governments according to their own national rank and salary scale. Countries volunteering uniformed personnel to peacekeeping operations are reimbursed by the UN at a standard rate, approved by the General Assembly, of a little over US$1,332 per soldier per month.

Police and other civilian personnel are paid from the peacekeeping budgets established for each operation.

The UN also reimburses Member States for providing equipment, personnel and support services to military or police contingents.”

Link–> https://peacekeeping.un.org/en/how-we-are-funded

–=–

When the public subjects (contracted, money-driven agents) can be convinced to militarily force-govern themselves to follow a foreign international law, the law of nations and declarations of the United Nations (global governance), and actually believe that this false offering from the legal gods of “peace and security” is a good thing, then any scrap of private sovereignty and freedom is lost. The national military of the United States (a de facto standing army in peacetime) now contracts and works for an outside force, which was the biggest complaint within the Declaration of Independence.

The typical fool that is the common US citizen would call this unconstitutional, never realizing that the corporate “United States” is strictly an un-constituted commercial entity, and thus already wholly unconstitutional (de facto). The constitution established a union between States (People), not a corporation. Congress created the “United States” later, eventually moving the seat of government to the foreign district of Washington DC, while wearing two very different hats.

What is artificial? It’s a simple equation, really. Artifice is anything created by man. Be it words or inventions or devices, what is man-made is necessarily opposed to Nature and Its Law, designed either to harness it inharmoniously or thwart it altogether. This too is self-evident. It is neither good nor bad, it just is. The Law of Nature only protects that which is belongs to and emirates from (as a Creation of) Nature, which is said to be the continuous Creation of the Living God. Again, this is not religion, but stands as the basic foundation of law as used in all nations. Man’s law only governs man’s inventions (creations) and nothing else, and this includes the names/nouns of all persons, places, and things, for names don’t ever occur naturally, being always manmade. A fox is not born into nature as a “fox” but as a nameless, priceless (without mammon) Creature (Creation) of God and nothing else, as is each man and each flower and each tree. Once the foundation of Law (the Bible) is ignored, one of the most important of those Laws of Nature (God) stating over and over throughout the scriptures that man should never act in or respect persons (names/nouns) or flattering titles (names/nouns) over the Reality they represent, then man can no longer claim any Natural Rights as listed in the Declaration of Independence. For Natural independence and Freedom requires men (male and female) to be self-governing under the Law of Nature (God). Once again, this is a self-evident Truth. One cannot be owned as property and also be Free and Naturally independent of its owner. And the only thing that proves Natural Freedom is the Law a man follows. To this, we may use the correct verbiage of the word religion, where man follows the Law of God (Nature) religiously without err. All religions are legal corporations with their own constituted doctrine (law) against that of the Bible. Again, the Bible is not religion, but is a Book of Law to be followed religiously, just as one might religiously drink a cup of coffee every morning. Religions, as corporations (artificial persons), are property of the state and thus under the legal law. And why is this important? Because the legal law stands only in direct opposition of the Bible as a Book of Law. That’s the whole point. Choice. Volunteerism. De jure and de facto. Religion is a legal replacement for spirituality, causing us to never act according to the Bible Law, but instead paying mammon to a corporation to conduct legal charity. Charity is part of spiritual self-responsibility, not a thing to be passed to another. It is a spiritual action, not a legal property.

For total understanding of these fact, we only need understand just what the totally misunderstood legal term “freedom of religion” actually means as applied to legal law. For this, I refer to my own book, wherein I have already broken down these terms of art (artifice) for what they truly mean:

Begin Excerpt:

To get a clear comprehension of how a man acting in the incorporation and agency of legal persona necessarily and by law chooses government as his religion over that of God’s Law in scriptural teachings, we must understand what it means to have True “Religious Freedom” as a reserved Natural Right as opposed to its adversarial legalese word-magic of positive law terms of art licensing generally the legal right of “freedom of religion.” Just a simple rearrangement of words and the whole meaning changes. Here we find the substance of Religious Freedom juxtaposed to its adversarial legal form of freedom of religion as a purely legal concept of the franchise of public servitude. This positive law recreation of a negative law absolute is reworded and redefined as legal (anti-God) law in the United States district specifically for public performance debtors, as the legal right and obligations of voluntarily enslaved “citizen-ships” (vessels in prostitution to the gods of the nation), which are the subjects of government and its false gods. And these false gods will allow no other gods before themselves, for their law is opposed to the Law of God’s Nature. The choice is clear, Reality with self-control as self-governance under the Natural Law or fiction with military rule and forced governance under the artificial law of gods of mammon.

This is one of the most important lessons in this work. Please ensure full comprehension between these two very different “freedoms” before you proceed with this work. For as a citizenship of the United States, the attachment to your strawman as property under the law of persons only allows you to fall under the “freedom of religion” as a limited legal outlet of commercial franchise. In other words, “Religious Freedom” is against the law of the United States for its subjects (persons). Notice the different phraseology and how important they are here. For remember, to have the “freedom of” anything in a legal society means to have the “franchise of” the altered, fictional concept of whatever that government allows.

RELIGIOUS FREEDOMWithin constitution embraces not only the right to worship God according to the dictates of one’s conscience, but also the right to do, or forbear to do, any act, for conscience sake,the doing or forbearing of which is not inimical to the peace, good order, and morals of society. (Black4)

FREEDOM OF RELIGION – Embraces the concept of freedom to believe and freedom to act, the first of which(belief)is absolute, but the second of which(action based on belief)remains subject to regulation for protection of society.(Black4)

—=—

Now you tell me, what good is religious, moral belief if you are not allowed to act upon it? To be clear, this state of confusion at bar is the very purpose of nations, to prevent self-governing, moral standing in men. For no moral man would allow a nation as this to continue in its abhorrent actions against God (Nature) and man. But the moral man is cowed and pacified by his surety to the law of his persona (mask), afraid to bite the hand that feeds it. We are so smitten and proud of our nationality (false identity), our personality (reputation) in public that we don’t dare risk doing what is Right and Lawful in and under the Law of God (Nature). This is unmistakably and self-evidently the work of the devil (the attorney class) and its scribes.

These are completely separate definitions, on separate pages of the dictionary. They are not at all the same thing. As citizenships of the “United States” corporation, you better damn well know the difference before proceeding herein, and before you try and act morally in a society that strictly forbids moral actions without artificial, legal license from the state.

Freedom of moral thought, but not freedom to act upon that conscious moral thought… This is what public, legal freedom (franchise) is when defined by the commercial gods — a legal corporation called government. It is not the Natural  Freedom of religion under God, but franchise of religion under the legal state. These are as the rules set for employees (agents) by their employer (principal). This is not Natural freedom under God, which is described above as Religious Freedom. This is tyranny named (noun) as “freedom,” where the ability to practice religion is confounded and limited to the franchise it belongs to (of), as freedom (franchise) of (belonging to) religion (memberships to legal corporations, as the legal, anti-God definition of religion as an artificial person in law). In the “United States,” the very opposing lack of a moral standing in God’s Law (religious, spiritual Life) is the official state religion, as an enforced, amoral lack of It. Legal freedom is only a franchise allowed to fictional persons. Governments cannot control in totality your thought processes, only your actions (anti-pro-verb) while in its property. Specifically, we must recognize absolutely that the purpose of the legal law and the institution of corporate (state licensed) religions is to prevent man from acting upon his moral thoughts and beliefs

—=—

“No one is punished for his thoughts.” 

—COGITATIONIS PAENAM NEMO PATITUR. Dig. 48, 19,18. (Black4)

—=—

“It’s impossible to have religious freedom in any nation where churches are licensed to the government.

—Congressman George Hansen, quoted from “In Caesar’s Grip,” by Peter Kershaw

—=—

“The framers of our Constitution meant we were to have freedom of religion, not freedom from religion.”

—Billy Graham

–=–

End Excerpt.

Which one of these is listed as a Natural Right protected also in the constitution? Religious freedom.

Which one of these is a legal right of US citizenships? Freedom of religion.

Freedom belonging to (of) religion is the more correct way of saying it, meaning to be under the legal sanction and false liberties of the false doctrines of corporate religion, all of which pay homage and tribute to the legal law of the land over the Law of God, as opposed to the True and moral God-given Freedom to express religiously the Law of God as the highest moral law that causes True Freedom from man’s devices. “Freedom of religion” is a noun (in name only), while “religious freedom” is a verb (action). This difference is everything, and it applies to those so-called freedoms of speech, press, ect. These are but well-told lies. And as Orwell deduced, freedom within and under the government corporation is certainly just slavery by another (legal) name.

Here is a perfect example from history that shows what freedom of speech really is, and how the Executive Order is used against any legitimate practice or congressional approval of law:

—=—

You will take possession by military force of the printing establishments of the New York World and Journal of Commerce… and prohibit any further publication thereof You are therefore commanded forthwith to arrest and imprisonthe editors, proprietors and publishers of the aforementioned newspapers.

—Executive Order by President Lincoln, May 18, 1864

—=—

And that, ladies and gentlemen of the goyim, common class, is a True look at the actual history of how freedom of the press is just another patriotic fallacy.

Oh, but Lincoln was a hero, right? That’s just more idolatry of this bloodline of false, legal, flatteringly titled gods (magistrates). There is only one hero, one you can emulate and become just like. And Jesus wasn’t even super (above) nature like the rest of the superheros. His powers came only from Nature (God), not above it. Wow! So can yours, if you learn and follow the example.

Or you can pray that your pensions stay outrageously and unreasonable secure. Yep, pray to God for more money. Pray to Nature to invoke its nemesis, mammon. Ask Reality for fiction. That’s the answer… Yet turn on any evangelist on television and that’s exactly what they are instructing the vast wasteland and idocracy of false christians to do!

And you dare to ask why society has degraded as it has? This legal “right” of not being allowed to express your thoughts applies to all moral concepts and scriptural, spiritual Laws, regardless of origin. So declaring oneself an atheist will cause no change in this rule, but rather strengthens the fact that one needs to be a ward in public servitude, for an atheist necessarily decries the Bible as common Law, an act that actually used to be unlawful in public. What would you do with such an idiot that would publicly declare himself to be against the very foundation of law? You’d make him a ward, of course, or perhaps in other countries you’d publicly execute him or her as an infidel and a devil. Ironically, it is the law that protects the lawless from themselves. And from what I’ve seen, every self-proclaimed atheist may dress the part, but acts as a good little citizen complete with driver’s license and social security number. Like the corporate Christian wearing a cross, the title nor the clothing nor the bearing of symbols and idols make the man. One either follows the Law or one follows the anti-law (legalism). There is no in-between, despite what you may call yourself. Again, the Truth may hurt, but only if you live in a lie. Like it or not, my statements here are not only neutral, but backed up by the Bible and the legal system. I forgive any who choose to shoot the messenger instead of facing Reality.

To stand openly in non-belief of “God” is still a religious belief, unprovable and misguided as it may be. The legal law is strict and does not allow moral opposition in action, only in thought. That’s why most religions are called protestants. They protest, but don’t anything about it. Protestors seldom accomplish anything, including the incorporated religions designated by that title. And so to declare that your morals come from a source or no source at all, they are still illegal to act upon. So a public declaration of being “Christian” or “atheist” is in fact, in law, a mute point. Even if it were true, you wouldn’t be allowed to practice your beliefs (or non-beliefs) if they conflict with the legal law. The only Truth is that we are all in this together as duped, contracted common US citizens, regardless of what flattering title (Christian, atheist, etc.) we call ourselves. The Bible does not tell us to be Christians, only to follow the Law by example of Christ. We are not to to be fans (idolators). A slave is a slave by any other name. And that’s why the Bible Law is so adamant that we never call our True Self as anything but a part of the Whole, part of God’s Nature, for the law of man only applies to legalistic names and titles not originating in Nature. This is so simple, so self-evident, that I am astounded we have all been so utterly tricked into worshiping legalism (fiction, artifice) over Reality (Nature, God), and also that it took me so long to figure it all out by untangling this web of deceit and its terms of art.

Let me be clear that there are many men acting as gods (government and church magistrates) in the Bible, all given the name of “god” by the English King’s transliterators.

We merely need to read the Bible itself to understand this:

–=–

“Now I know that the LORD (translation: Jehovah) is greater than all gods (translation: elohiym): for in the thing wherein they dealt proudly he was above them.

–Exodus 18:11, KJB

–=–

Natures God is always highest, thus so is Its Law. We can plainly read the comparison of these two different notions of just what a god or lord is. Each use of the word god in the Bible carries up to 20 different meanings, most of them referring to men acting as kings and magistrates (legal gods). Yet those that read the Bible are convince that only the God of Nature is referred to therein with each usage of the generic word. And so God (Nature) in its neutral existence is blamed for the evils of men acting as legal gods, as popes and kings and judges. Why is this important? Because we are worshiping our own false gods, in president Trump and in congress and in the administrative judicial and supreme court. They are lords. Gods. But I assure you that each of them know well their inferiority to the God of Nature and Its Law, which their legal designs and opinions can never defeat. This is not religion, but is the essence of our system of law. Only the self-governing, Bible-reading, Spiritually Lawful man (son of God) may defeat these false, legal gods and their designs by not participating in their schemes. But the deed is now done. This is our story. His-story. It is the entire structure of our system of law. To ignore it is to volunteer to legal enslavement. I don’t desire to cause you to believe in any God, for God is defined as Existence, and so to not believe in God is literally to be a nihilist, to believe that existence does not exist. This is the foolishness of atheism, yet another well-laid and completely irrational legal trap, almost as clever as corporate membership Christianity by a flattering title in idol worship under membership. The de facto (illegitimate) commercial governmental structure can not thrive without causing total ignorance of the Bible (foundational) Law, which is total moral, spiritual, and temporal self-governance in and under Truth (God).

To be clear, if one acts upon the moral, scriptural law, this is considered in the legal realm as a thought crime. The state acts always immoral, or at best, amoral (without moral consideration). The legal law is amoral, while the scripture is purely moral. The two cannot be mixed, only used to prove or disprove the other, or as a check and balance. To act legally is to act against God’s Law of Nature, for what is legal is not of Nature and thus cannot be controlled by Its Law. This is once again a self-evident Truth. This is the very essence of choice, which legally is called volunteerism, or the doctrine of Master and Servant. One is either a servant of God’s Creation of Nature and Its Law or a servant of man’s creation of artifice and its administration (legal law). If the reader cannot somehow accept this because of a lifetime of indoctrination in public schooling and entertainments designed to keep this knowledge from us all, then the reader should consider him or herself a success and should stop reading this and get back to the dissimulation of persona we have been brainwashed to be accustomed to. For those that can get past the metaphor to realize the moral story and its application to Reality, then pleas proceed to get the full story of how we’ve all been duped by false, legal gods (magistrates) of the legal realm, the re-creators of mammon.

Here we stand, unified in our collective ignorance while the entirety of the earth is fictionalized (renamed as legal nouns – persons, places, and things) and purchased (legally conquered) out from under us through such schemes as the world-wide public pension and Social Security systems, the globalism of which would be impossible without the modern creation of digital identity – a global matrix of commercial, legal (artificial) life represented as digital information in what is quickly becoming the central AI, the internet of all legal (artificial) persons, places, and things (names/nouns). We are experiencing its emergent growing pains with every cry of de facto corporate government oppression and mismanagement.

For the purposes of this essay and lesson on CAFR (government audit) reporting and this collective public pension fund scheme designed to rob the middle class government employee and the entirety of the collective taxpayer base that supports them, the following three quotes strike a fatal resemblance to our currently staged, so-called financial crisis.

–=–

“If a nation values anything more than freedom, it will lose its freedom;
and the irony of it is that if it is comfort or money that it values more,
it will lose that too.”

W. S. Maugham, English playwright, novelist and short story writer

–=–

“The study of money, above all other fields in economics, is one
in which complexity is used to disguise truth or to evade truth, not to reveal it.
The process by which banks create money is so simple the mind is repelled.
With something so important, a deeper mystery seems only decent.”

—John Kenneth Galbraith, Canadian-born economist,
Harvard professor, from ‘Money: Whence It Came, Where It Went’ (1975)

–=–

“The king bankers put in motion, in 1907, a great scheme. They had gambled and speculated on Wall Street  until so many watered stocks and bonds had been manufactured The king bankers knew the condition and informed the favored of their friends what was to come. There was to be a panic in the fall of 1907 that would be advertised as the result of our bad banking and currency laws.

 —Charles Lindbergh, Congressman from Minnesota (1907-1917)

–=–

History doesn’t simply repeat as if it was a sentient entity or programmed mechanical contraption. Good history at its best is but a well-told lie by the victors, by the contrivers and schemers, the conspirators behind the story. As an excuse, history is a perfect scapegoat and a wonderfully powerful obfuscation. Only the moral man substantially learns from history. The immoral man seeks to represent it in its sameness under the disguise of modern technique and dress. Thus the value of history to its teller is as a treasure map, a blueprint of criminal design, while to its listener it is merely a form of religious, unprovable belief understood only in the most vulgar of terms, just as a dog understands the simplistic commands of yes and no. History is a game card that is played over and over again under slightly different disguises. For a scheme by any other name is still a scheme. And yet, even though pension funds are literally and popularly known as pension fund “schemes,” this perfect description seems to be ignored by its idyllic worshipers — its members and contributors. But let us be clear… other words as synonyms for the word scheme are contrivance, plan, conspiracy, plot, a waiting game, to connive, a bubble, a falsehood, and an untruth. The judicial system, as well as our current and past economic and social systems, and any other form of social organization, are also called as schemes.

What is a conspiracy but a plan between two or more people to do harm to another?

Hey, we’re so dumbed down that we don’t even understand this country was founded on a conspiracy!

CONSPIRACY – Criminal law, torts. An agreement between two or more persons to do an unlawful act, or an act which may become by the combination injurious to others(Bouv1856)

CONFEDERACY – Criminal law. An agreement between two or more persons to do an unlawful act, or an act, which though not unlawful in itself, becomes so by the confederacy. The technical term usually employed to signify this offense, is conspiracy.(Bouvier’s Dictionary of Law, 1856)

–=–

The great scheme is not necessarily the details and schematics of these legal and monetary systems and plans themselves, but rather the control of public opinion. If the end of conspiracy (confederation, combination) is to condition the public hive-mind to believe that usury (interest), grocery (retail), and direct taxes, fines, and fees (exaction, extortion) is somehow not harmful to the public good, or at least not a crime if government does it “constitutionally” or makes it legal (licensed) for corporations to have such privy, and thus to ignore the fact that these are all absolutely crimes against the Law of Nature in every religious, spiritual, and moral teaching (except of course Judaism), then any technical scheme created after this mass social conditioning will likely succeed without even a whimper. What is a nation but a conspiracy? Perhaps you haven’t read the Articles of Confederation (conspiracy)?

A federal government is a state formed by means of a league or confederation. What else needs to be said?

This can only lead to the grossest of behavior and custom…

This word grocer, being the act or organization (incorporation) of the crime of grocery, is a perfect example of how social conditioning schemes (including nationhood) play a most important role in the perfection of such technical schemes as pension funds (i.e. ponzi schemes). We are sold on the idea that we should purchase our food and supplies at our “Friendly Neighborhood Grocer” as if this is a wonderful privilege and convenience (sometimes even called as convenience stores), and as if the grocery store is somehow our friend. But when we uncover the mystery of this word grocer, we suddenly realize how truly dumbed-down we have all been made, how socially organized and schematically controlled we actually are.

We may also discover that the word retail means something quite sinister as well, much akin to usury and extortion:

GROCER – In old English law, a merchant or trader who engrossed all vendible merchandise; an engrosser. See Engrosser. (Black’s Law Dictionary, 4th Edition)

ENGROSSER – One who engrosses or writes on parchment in a large, fair hand. One who purchases large quantities of any commodity in order to acquire a monopoly, and to sell them again at high prices.(Black4)

ENGROSS – To copy the rude draft of an instrument in a fair, large hand. To write out, in a large, fair hand, on parchment. In old criminal law. To buy up so much of a commodity on the market as to obtain a monopoly and sell again at a forced price.(Black4)

ENGROSSING – In English law. The getting in to one’s possession, or buying up, large quantities of corn, or other dead victuals, with intent to sell them again. The total engrossing of any other commodity, with intent to sell it at an unreasonable priceTHIS WAS A MISDEMEANOR, PUNISHABLE BY FINE OR IMPRISONMENT. (Black4)

HIGHWAY ROBBERY Theft taking place on a public road. Slang for a transaction where one party has such leverage over the other and can demand such a high price so that it is akin to a robbery taking place.(Black2)

TAIL – Fee-tail, as descriptive of an estate in lands, was borrowed from the feudists, among whom it signified any mutilated or truncated inheritance from which the heirs general werecut off. (Black4)

–=–

Every retail store is committing a crime called engrossment. This is not in any way up for dispute, nor is it denied by the self-proclaimed “retail store.” One cannot engross without adding a tail (fee), or re-tailing the products they sell.

So how do they get away with it, and why do we accept it as somehow normal (customary)?

Oh, pardon me. Didn’t I mention that government is the main investor in all grocery and retail chains? This is where your contributions, as a member and a taxpayer go to after all, through not only pension funds but all municipal corporations (governments and districts). Thus, it is understandable that these retail engrossers have permission from government to screw us all, considering not only the return on stock investment and corporate bonds (low or no interest loans) for government, but as well the exorbitant amount of taxation generated from such inflated prices. For government, it’s a win-win!

Let us be clear… when a crime is licensed (made permissive to a certain few) by government, the crime is wedged into the delusion of public opinion as being socially acceptable and even seemingly normal, though still obviously, morally outrageous. Usury as well becomes just an apparent part of our lives, which is the most ridiculous concept imaginable when usury is understood as the anchiently recognized crime it is. This trickery, this educated state of accepted victimhood under organized crime (corporate governance), in a nutshell, is the story of our lives. This is exactly how we are conditioned socially to accept such technical economic and financial schemes as the globalist pension fund ponzi scheme we have all been unwittingly contributing to as taxpayers for decades. We support, in other words, our own victimization without comprehension of the causal, social influence that clouds the reality of the consequences of not merely our individual but collective (pooled) actions in ignorance. Such causalities defeat any modicum of moral or even lawful choice we may otherwise manifest. We choose not only to ignore the truth purposefully, but to suppress it even in our familial relationships with our children and friends (as unorganized and organized social groups). Today, the topics of religion and politics are practically taboo amongst the superficiality of public gatherings. Yet these two topics were considered to be the measure of a man in the former generations and centuries now past.

Of course, public school doesn’t even touch on these topics, for public school is specifically designed to teach and keep us all public minded. This, as well, is self-evident.

–=–

Education is useless without the Bible.”

—Noah Webster

–=–

I don’t want a nation of thinkers. I want a nation of workers.

–John D. Rockefeller, who created the General Education Board (GEB)
in 1903 to dispense Rockefeller funds to “education.”

–=–

The aim of public education is not to spread enlightenment at allit is simply to reduce as many individuals as possible to the same safe level, to breed and train a standardized citizenry, to put down dissent and originality.”

–H.L. Mencken

–=–

The quality of education given to the lower class must be of the poorest sort, so that the moat of ignorance isolating the inferior class from the superior class is and remains incomprehensible to the inferior class. With such an initial handicap, even bright lower class individuals have little if any hope of extricating themselves their assigned lot in life. This form of slavery is essential to maintain some measure of social order, peace, and tranquility for the ruling upper class.”

–“Silent Weapons for Quiet Wars,” page 7

–=–

A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coercedbecause they love their servitude. To make them love it is the task assigned, in present-day totalitarian states, to ministries of propagandanewspaper editors and SCHOOLTEACHERS”…Most men and women will grow up to love their servitude and will never dream of revolution…”

–Aldus Huxley

–=–

“There is no authority for the common statement that the primary sense of education is to ‘draw out or unfold the powers of the mind.”

–Century Dictionary

–=–

“Education” is not the word you think it is, as usual, and certainly not what parents are entrained from childhood to believe it is. Etymologically, we find that the words education and training are similar, and that under no pretense should it be assumed that public education is designed to allow free forming thought, moral aptitude, or the ability to self-govern. Education, from etymonline.com, is a noun from the: 1530s, “childrearing,” also “the training of animals,” from Middle French education (14c.) and directly from Latin educationem (nominative educatio) “a rearing, training,” noun of action from past participle stem of educare (see educate). Originally of instruction in social codes and manners; meaning “systematic schooling and training for work” is from 1610s.

We are trained for a life of useless labor and technical nonsense, filled with information that is not knowledge of anything Real, merely technical training (empty information) to fix and maintain the fictional legal matrix that contains us, just as the lower slave-classes that built the ancient stone megaliths, tombs, and pyramids to their own detriment, in honor of their own ruling class of gods. Today, however, we are being trained (tricked) into building the very fictional, cashless control grid and social construct that enslaves us, much of it completely intangible, existing only as pure information and code in the now global computer mainframe and internet of things. Form without substance — a digital world without (outside of) reality, without foundation. We are but “animals,” even according to the US CODE and various registered patents.

But why is this important? Why is being labeled by mans law an “animal” a bad thing? After all, technically it’s true, right?

In fact, no. Remember, words are not Reality, and tyranny only exists when words (nouns) are given respect over their Reality (verb/adjective) the represent. One must understand intent behind all things, and the intent of those gods of government is to be “gods” over their own creation. To be a god, all others must be made lower in status. And since all men under God (in Nature) are said under the law to be “Created equal,” there is only one way to break with that Law of Nature. Men must be assigned persons. A person is always form without substance. A person is always only a status, never the actual man (male or female).

—=—

“The fact that the human being can have the representationIraises him infinitely above all the other beings on earth. By this he is a personthat is, a being altogether different in rank and dignity from things, such as irrational animals, with which one may deal and dispose at one’s discretion.

—Immanuel Kant (between 1772-1789), Lectures on Anthropology, Akademie-Textausgabe, Berlin. Reprint Cambridge University (2012)

—=—

Here are a few examples of the “Man or other animal” (MOOA) declaration of legal status in the US Code for US citizenships, keeping in mind that the “Pure Food and Drug Act” of 1906 in Section 6 defines the words “food” and “drugs” to apply to “man or other animals,” and precedes to define man to be in fact “animal” for the purposes of that code:

—=—

“(2)(b) Food – The term “food” means (1) articles used for food or drink for man or other animals, (2) chewing gum, and (3) articles used for components of any such article.”

“(2)(g)(1) – The term “drug” means (A) articles recognized in the official United States Pharmacopoeia, official Homoeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement to any of them; and (B) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; and (C) articles (other than food) intended to affect the structure or any function of the body of man or other animals

“(d) Animal – The termanimalmeans all vertebrate and invertebrate species, including but not limited to man and other mammals, birds, fish, and shellfish.”

—21 U.S. Code § 321 – Definitions; generally
—15 U.S. Code § 55 – Additional definitions
—7 US Code § 136 – Definitions

—=—

These definitions are clearly defining man as animal, as equal to “other animals.” Not man, but man-kind, as hu-man beings. Adam… meaning the fallen man or hu-man. In other words, we are considered as mere soulless beasts of burden by these lawmakers of the nobility and majesty of the god corporation (We, the People as a singular entity/voice). This concept of lowering common men in rank and status has been at the center of debate before even Plato, and is what amounts to institutional slavery (voluntary servitude).

What status (persona) is a public citizenship? Well, what is it that separates the human animal from the mammal, the reptile, and the crustacean? The answer to this question, in man’s written law, has no moral Source. The answer, my fellow educated mass of illiterates, is purely one of legal status (person-hood) in fiction. It is them, the self-aggrandized nobility of blood, against us. One cannot be a god without subjecting all others to being a lesser animal. And the best way to accomplish this is to educate men that citizenship raises ones status in society instead of lowering it. Nations, by definition, are the domain of the goyim. For the law of legalism is as well but a scheme by its creators, a conspiracy of the pretended legal gods.

To be clear, the opposite of the word scheme is truth, or a truism. Public (free) education is of course a scheme designed to create workers, not thinkers. It’s just that we are never told that the legal definition for the word “free” is a franchise. To be free in a nation (district) is to have liberty in an open-air debtor’s prison (the public) to pursue ones own course, as long as the organized criminal government gets its cut (tail). We receive a franchise education, and it is certainly paid for through forced taxation (extortion such as property tax). Everything becomes clear when the actual legal (fictional) meaning and intent of words is discovered and correctly applied. My own and your  own personal opinion means nothing, for you we are simply not the creator of this legal system or the terms of its language (terms of art). You are but a user, a citizen (subject), and it (they) your master. Never forget this legal maxim of law, that protection requires subjection, and that the creator of anything controls and defines that thing and the law that controls it. The user of another’s property (persona/legal status) is bound to the creator of and thus lawmaker of that property. A citizenship belongs to government. The user of that citizen-ship is using the property of government, like renting a car (vessel), in order to conduct commercial activity and carry insurance therein. The law is attached only to the person, causing the man bearing (carrying) that mask (public persona) to then perform under that law in person (mask). This is called bond and surety.

To be clear, no member of any pension scheme (municipal corporation) owns the money or equal investment device (stock, bond) in any pension fund. Whatever money was contributed was severed from the person at that point of voluntarily contribution. A contribution is a gift, not an investment. The pension fund accepts the gift and then invests it, offering a reward for such stupid behavior so as to entice one into the scheme, like cheese for a rat into the pension cage, making ultimately impossible promises of future prosperity and wealth.

So what is a contribution?

Well, the root of this word is TRIBUTE!

CONTRIBUTETo lend assistance or aid, or give something, to a common purpose; to have a share in any act or effect; to discharge a joint obligation. (Black’s Law Dictionary, 4th Edition)

–=–

The synonyms for the word contribution are gift, donation, and offering. So tell me, what do you think your contribution is? When you donate to a political party, do you then have property in that party? NO! When you make an offering in church, do you then have property in that church? NO! When you give a gift at Christmas or on a birthday, do you do so with the intent of keeping any ownership in that gift? NO! So then, when you contribute to a pension fund, what in the hell makes you think you have property or equity in that fund?

Now perhaps you can see the value of a public education… not so much for your own self, but as a benefit for these schemers in the organized criminal government that keep you ignorant through a lack of such knowledge, information, and moral checks and balances?

Botom line: you’ve been tricked. What you have given to pension funds is not yours. And so whatever benefits you receive can disappear at any time. This is the nature of contributory membership. The church, the political party, and the pension fund can close its doors to you at any time with a simple declaration of municipal bankruptcy.

But we are getting ahead of ourselves…

In this expose’ we shall now examine the particular truths about the scheme we call as public pension funds. To do this, many aspects of law and government must obviously also be examined. For this, we must face not only the harsh facts about pensions and their not-so-hidden intent, but as well we must reveal the most uncomfortable self-evident truths about ourselves, both individually and as a collective, ignorant hoard ripe for the raping and pillaging of our posterity, prosperity, and abundance.

To know thyself is to know thy own worst enemy.

And so we begin…

–=–
CAFR’s, CalPERS, And The Great Political Lie Machine
–=–

Nothing disturbs a primary researcher like myself more than when so-called mainstream and alternative “news” outlets report quotes and so-called “facts” without verifying their veracity, or for that matter even bothering to comparatively vet them at all to any primary source. Such irresponsible reporting in an open, public fashion is exactly what Mr. Galbraith warns us about above, causing the simple and verifiable truth to be disguised by rhetoric. A lie well placed can do wonders in the promotion of public illiteracy towards government and its financial schemes.

There exists today, despite my own exhaustive efforts and documentary research, a strangely apparent and seemingly willing denial of the audited information located and easily accessible in the CalPERS pension fund Comprehensive Annual Financial Report (CAFR) published each fiscal year, and for that matter the same audited report disclosing all government agencies and municipal corporations (cities, counties, districts, states, federal, pension funds, etc.) in their financial standing. All governments and independent agencies of government everywhere are required to complete a CAFR, which shows not only the yearly budget (income/outcome balance) as the more common annual budget report does, but as well all investments and extranious funding for each specific government since its inception — since any government was first municipally incorporated. If the yearly budget report were only the accounting report of the checking account of each government, the CAFR would comparatively be the total or “comprehensive” reporting of the checking, savings, investment portfolio, and any and every other asset not necessarily shown on the budget report. To purposefully ignore the CAFR when speaking of anything regarding the financial markets worldwide is like Helen Keller trying to describe an elephant she can’t touch, see, or hear. Without even a basic understanding of the CAFR accounting system, especially in public pension funds, no one can possibly comprehend the rational behind the purposeful fluctuation and seemingly out-of-control stock market in any way (as ordered chaos), since government is the main investor and thus proxy shareholder voter in all corporations through control of domestic and international equities, mutual funds, mortgage-backed securities, bonds, foreign currencies, precious metals, real estate and real estate investment funds (REITs), bundled debt instruments and loans, and other toxic-debt-type financial “products” of these financial markets and of their own making. To exclude the CAFR from any and all reporting whatsoever about the commercial, governmental, and financial world, the CAFR being the audited financial statements of all corporations including all governments, equates to a blatant, blanket lack of vetting and verification of any and all information emanating from any source, news agency, or other propagandist. Its not just bad reporting, it’s patent laziness and profound, often purposeful ignorance.

Case in point… I was sent a recent link (below) to just that type of irresponsible reporting. As expected, none of the quoted “facts” presented by the CalPERS board member and propagandist were fact-checked. No sign of the CAFR (audit) was presented or referenced in any way, though the subject of that publicly disclosed information can be found easily in the CAFR, which completely debunks those callous, legally protected public lies presented as political “facts.”

Unfortunately, the fear porn industry is alive and well, especially when it comes to finance and public/private pensions. You can’t scare the public with the truth about this global pension scheme, for the truth reveals nothing but massive profits and gains within public pensions. In order to first hide and then legally exact more money for governments’ massive, combined, globalist investment schemes, it takes everything but the truth according to the audited source, including political punditry and pandering. Fear missed with ignorance of facts is the only trick that creates this kind of wind funnel designed for the “legally” extortive strip-funding of the taxpayer base fed into this global pension fund scheme.

From a recent “report” by ZeroHedge.com entitled CalPERS Is Near Insolvency; It Needs A Bailout Soon” – Former Board Member Makes Stunning Admission we get a first hand look at just such second-hand reporting. Even the title is full of anticipation and dread — a real click-baited eye-catcher! And this type of reporting is the perfect example of why you should never trust a politicians’ public rhetoric when his federally required, independent audit is so readily available to expose his blatant lies. And this is the perfect example of why the CAFR is never discussed and never utilized by such armchair reporters, and certainly rarely if never referred to publicly by any politician. Audits are boring, complete, neutral, and without emotion or much speculation. They state the facts with blatant, required accuracy required by law. So why would anyone bother fact-checking their spin-jobs in such a proper fashion?

Well that’s what I do. Call me crazy… or just a bore. Anal? Fine. But I gotta know the truth at all costs!

Now, this statement shouldn’t lead one to assume that one should ever trust a politician or attorney in any situation, that is, in any public situation. Go to the source — the audit, not the puppet mouth-piece. The source is what is required by the highest legal authority under oath, as written in the federal law, which is the CAFR (audit) and only the CAFR. One only need do a token bit of research to discover that, while lying to congress or any government agency or administrative court under oath is a punishable crime of perjury, lying to the public is no crime at all! So a fund manager for the largest pension fund in the United States, for instance, can say anything he wants about the fund he manages and represents, as long as he is not “under oath” to tell the “truth” about his fictional accounting numbers — say, like to some self-proclaimed reporter or when “tweeting” on Twitter. All the public forums are a stage, and the stage is where actors and magicians go to perform their lies and illusions under the illusion of prestige.

PRESTIGESnoun – [Latin proestigioe.] Juggling tricks; impostures. (–Webster’s Dictionary of the English Language, 1828)

PRESTIGIATIONnoun – [Latin proestigioe, tricks.] The playing of legerdemain tricks; a juggling(–Webster’s Dictionary of the English Language, 1828)

PRESTIGIATORnounA juggler; a cheat. (–Webster’s Dictionary of the English Language, 1828)

PRESTIGIATORYadjectiveJuggling; consisting of impostures. (–Webster’s Dictionary of the English Language, 1828)

PRESTIGIOUSadjectivePracticing tricks; juggling. (–Webster’s Dictionary of the English Language, 1828)

IMPOSTUREnoun – [Latin impostura. See Impose.] Deception practiced under a false or assumed character; fraud or imposition practiced by a false pretender. –Form new legends, And fill the world with follies and impostures. (–Webster’s Dictionary of the English Language, 1828)

LEGERDEMAINnoun – [See Light.] Slight of hand; a deceptive performance which depends on dexterity of hand; a trick performed with such art and adroitness, that the manner or art eludes observation. The word is sometimes used adjectively; as a legerdemain trick. (Webs1828)

–=–

Yes, universities are ranked by prestige, and so is the papacy. But then so are doctors, lawyers, judges, congressmen, and presidents. And lets not forget actors (professional, paid liars), say, like Ronald Reagan, actor and spokesmodel extraordinaire!

—=—

“I’m sending Chesterfields to all my friends, that’s the merriest Christmas any smoker can have—Chesterfield mildness plus no unpleasant after taste – Ronald Reagan.”

—Excerpt from a 1940’s magazine advertisement for ‘Chesterfield’ brand cigarettes, including a picture of a young Mr. Reagan employed to smoke a cigarette as he writes his Christmas cards with a huge smile on his face as he sells smokable chemical poisons.

—=—

But presidents aren’t just actors, are they? Wake up, man… even George Jr. was a fantastic and intelligent orator and debater before acting as the lame-brain president we were tricked into believing:


Holy crap, Batman! Bush speaks normal.

–=–

The CAFR report is submitted to government under a prestigious oath by its employees and the verified (audited) by independent auditing firms, which in all cases will be charged with the serious crime of defrauding the federal government if they knowingly and inaccurately report their financial position and holdings. A politician, on the other hand, while speaking publicly, to a reporter, or to the public at large and thus not “under oath,” can basically lie through his fake, perma-smile teeth until the cows come home (whatever that means). And so the purposeful, occultist (secretiveness) obfuscation (silence) and confusion (lies) put forward in the public about the audited, verified information within the CAFR will never be part of the typical politicians’ rhetoric, either on or off the public stage. There is no law that requires that “truth” be told to the general public, and there’s no court that will charge anyone for lying to the public, including every news agency out there, unless it causes some consequence or harm. That harmful consequence, though, doesn’t include the incredible profits and gains governments created for their organized criminal activity. For Mr. Bush, there is certainly no law preventing him from acting like an idiot while being quite the opposite, a wolf in sheeps’ clothing.

–=–

FabiansSocialists_oligarchical-collectivismThe original Coat of Arms of the Fabian Society, a wolf in sheeps’ clothing

–=–

This is not to say there aren’t problems with the CAFR when considering its difficult-to-read, highly specialized, coveted terms of art. It is only to say that, like any other field or profession of expertise, anyone that learns the art in order to spot those problems by studying the accounting language they are written in, which we can call collectively as the “creative accounting” non-governmental, private practices that are legalized and required only for government corporations under permissive licensure, will most certainly find what one seeks. The simple reality is that the CAFR, like the UCC, the stock market, and so many other commercialized and centralized systems, were not created for or to benefit the average, common citizen (goyim). They aren’t meant to be read by the public, though required to be publicly available for the one in a million that actually do read it. In fact it’s quite the opposite. Government agents and bankers play by different rules than the public citizenry. And so to pretend knowledge of government finance, the stock market, or for that matter any and everything governmentally regulated without learning to read its audited financial statements and the terms of art they are written in is like playing the game of Monopoly without knowing the rules, the player pieces (agentic avatars), or what the fake-money (an oxymoron) is worth. To then predict its future happenstance… well that is nothing but a purist form of sophism – the prediction of fictional events! And this describes just about every source for “news” and “speculation” out there, including this one.

WORDS (TERMS) OF ARTThe vocabulary or terminology of a particular art or science, and especially those expressions which are idiomatic or peculiar to it. (Black’s Law Dictionary, 4th Edition)

–=–

For accountants in government and in private corporations, the main rule of the game is quite basic: simply hide any assets behind any and all possible and even faked liabilities. To be more exact, the goal of the game is to hide any current assets as to their current monetary valuation by comparing them (balancing their numbers) to imaginarily predicted future actuarial debt amortization schedules with no foundation in reality. And what if they can’t find any liabilities? Easy-peasy, just make some up. Start a new investment fund, say for a possible future bridge to be built, that you have no intention of using the funds for it building, and then just transfer the value to another investment fund ten years later after collecting millions or billions. There are many, many ways to cheat with legerdemain trickery and juggling of monetary valuation the unwitting, ignorant public through non-governmental schemes.

Now, to get started here, let’s first read the stated quotes and commentary utilized in this stylized fear-porn reporting job posted on ZeroHedge.com, so that we may then discover the repeated and unchecked lies provided by quite simply looking them up to verify their veracity in the CAFR for CalPERS (or any other local or national government municipal corporation, agency, district, or pension fund). Remember, the CAFR is the AUDIT of every incorporated government entity out there, no matter how big or how small, no matter where it is located, and is a requirement of congress as federal law to be accurate under penalty of perjury. That’s every city, county, state, district, and pension in legal, corporate existence. They can’t lie in this singular case, and that makes the CAFR the biggest open secret of these organized criminals in government. Be mindful that the majority of city council and other common political persons are unaware of what is in the very CAFR (Audit) they vote to pass each year. They have unelected accountants and city managers for that. The councils are just yes-men, often completely ignorant of what they actually vote for.

And yes, by the way, the CAFR of the Federal Reserve is the official and federally required audit of the Federal Reserve, and quite easy to find. The entire End The Fed and Audit The Fed mythos is built on what appears to be nothing more than a purposeful, shared set of lies and ignorance of its CAFR (audit) and of the law that created and maintains it, which has been reported and publicly published and easily accessible for many decades. Omission of fact, and worse, the purposeful ignorance and thus omission of this legally required and easily accessible source of fact that is the audit, is to this author the greatest of journalistic crimes. The blind trust put into politicians like pork-master Ron Paul, who never revealed in any substantial way the official AUDIT of the Fed, in the form of the CAFR, is a perfect example of how lying, and especially omission of the most relevant fact, is rampant and effective, causing good people to become activists trying to achieve pointlessly what is already required by law, an audit (CAFR) of the Fed. To this author, this is just a perfection of “alternative” mass mind control.

Here is a link to the CAFRs (audits) for the Federal Reserve Board and Banks.

Link–>https://www.federalreserve.gov/monetarypolicy/bst_fedfinancials.htm

–=–

Please note that the Fed even lists this report on the Federal Reserve Board website link above as the “audited annual financial statements,” another common name for the Comprehensive Annual Financial Report [CAFR]. And yes, everything you are told by that Audit and End the Fed movement that apparently isn’t audited is plainly reported in the CAFR (audit), as required by federal Law. It’s even on a Fed webpage called “Audit.” This is where the insert of a “LOL” would be well-deserved, but then I’d be laughing at my former, foolish self and any other fool that has been caught up in such frivolous, pointless activism against something that isn’t even true, without doing research into my own borrowed, blankly parroted opinion.

Here’s the congressional law requiring the audited CAFR:

Link–> https://www.federalreserve.gov/regreform/audit.htm

Link–> https://www.law.cornell.edu/uscode/text/31/714

–=–

Please take notice of the title of this quite old, already existing code: “31 U.S. Code § 714 – AUDIT of Financial Institutions Examination Council, Federal Reserve Board, Federal reserve banks, Federal Deposit Insurance Corporation, and Office of Comptroller of the Currency.” Also notice that this audit, of course, goes straight to the hands of Congress, meaning that Congress is fully aware and in control of everything the Federal Reserve is doing. But they will do anything to cause you to think they have no control over their own created corporations, including, you guessed it, lie directly to and confuse the public, which is perfectly legal and in the best interest of such state secrets. A government is nothing without its secrets and the appointed (not voted for) state and other federal Department secret-aries that keep them.

Listed below are my own depths of primary, sourced research articles about the Fed, serving as both a correction and a heavy criticism upon all who continue to parrot such nonsense for no other reason than the peer pressure of its shock-jock popularity.

Link–> Stop The Religion Of The Fed –>  https://realitybloger.wordpress.com/2014/10/27/stop-the-religion-of-the-fed/

Link–> The Incontrovertible Conundrum Of Dr. Ron Paul –> https://realitybloger.wordpress.com/2012/06/23/the-incontrovertible-conundrum-of-dr-ron-paul/

Link–> Today’s Creatures From Jekyll Island –> https://realitybloger.wordpress.com/2012/09/01/todays-creatures-from-jekyll-island/

–=–

Yes, you’ve been lied to by omission this whole time, by the likes of Ron Paul, Alex Jones, G. Edward Griffen, and collectively anyone else that is a false prophet or believer in and supports the End The Fed and Audit The Fed campaigns. Many of the quotes you’ve been hungrily fed to support your unfounded, unsourced mindset, including my own, surrounding the Federal Reserve and its creation through radio, poorly researched documentaries, and from badly, secondarily-sourced books are provably false. The lies are passed from one documentary source to the next, solidifying the lie into the public-minded and yes “alternative” consciousness, where celebrity is used in replacement of vetted reliability. You’ve thus been led to unwittingly lie to yourself and others as false-prophet-activists! Why? Because it is no crime to lie to the public, especially when it happens to be in the best interest of protecting Congress from taking the blame for the actions of the elitist, organized criminal corporations and independent boards it creates, like the Federal Reserve System, of which congress has total control over as its lawmaker, as a congressional incorporate creation. The lie is so powerful that the reader might even now find him or her self actually defending the lie, defending what the programed perception of the Fed is instead of fact-checking ones own beliefs with primary instead of secondary and word-of-mouth sources. And so just as it was in the early 1900s, as the stock market was sucked dry (crashed) by profiteers (government pirates) while being blamed on bad banking practices, the Fed is being used just as then to be the pretended bad guy, the apparently out-of-control banking industry head that is the main cause of the artificial market and its inevitable downturn. And the supposed evil Fed will be blamed instead of those profiteers behind it, just as it was when Mr. Lindbergh was quoted from above — before the central bank was once again recreated after its previous defeat to control the then out-of-control banking industry. Now we have controlled, organized crime instead of just that common, individual crime networks (gangs). The crime of usury was nationalized, and all members get a cut.

In fact, congress even passed its own law over itself limiting its own ability in public congressional forums and inquiries only (but not private/closed ones) from questioning the Fed director, so that no information would be disclosed to the public in public forums, and so that the illusion of natural “independence,” as quasi-sovereign privacy, political separation, and even competition in government could be maintained, as if the congress (the gods/lawmakers of the United States) somehow does not have control over its own creation. More sophistry. Lie after lie after lie… and it works still to this day, despite my own continuous exposure of the 100% required CAFR auditing system by all government entities and agencies, including the Fed and its board and banks.

But I digress, for all these proofs are in my former research articles listed above.

Today, while fear excites and sells…

The boring but piercing truth sleeps. The fear-killer that the CAFR is simply cannot be used to foment misinformation and crime, for it disproves the tactics used to cause that fear.

Why this particular website (ZeroHedge.com) is even referred to as an alternative news site is unclear, since it seems to merely be “predicting” the future by suckling from the creamy mainstream rags and political propaganda we can all get at any Piggly Wiggly or television station, and then saying I told you so… For instance, the state-wide mainstream newspaper The Sacramento Bee also recently reported:

California public pension shortfall one of nation’s largest

BY DAN WALTERS

May 02, 2017 05:10 PM (Updated May 03, 2017 07:50 AM)

Throughout California, local government and school district officials are writing new budgets and confronting rapidly rising costs of pensions.

Many have seen their costs double in the last few years, largely consuming revenue increases that the state’s expanding economy have produced. For instance, a projected $1 billion increase in school districts’ teacher pension costs in 2017-18 will more than equal projected revenue gains.

However, as the old rock song says, “You ain’t seen nothing yet.”…

Link–> http://www.sacbee.com/news/politics-government/politics-columns-blogs/dan-walters/article148181774.html

–=–

Yes, I’ll take the Fear-Blue-Plate-Dinner special with a side of irrational predictive programming scariness, please. Oh, and on the side, could you provide no supporting or counter-evidence please? Audits just ruins the taste of a good piece of fear.

But is it true? Or rather, are the facts behind all of this true or even provided? For like everyone else, it seems the Sacramento Bee does not report on the CAFR audit to the public. I was informed long ago by Walter Burien at CAFR1.com that all the major news agencies are fully aware of the CAFR, but are required to keep the open secret at the highest levels when it comes to this type of reporting – that is, the long con, the big non-governmental taxpayer investment and pension fund scheme. Why? Because government is the main investor, voter, and regulator of the media, of course! Thus, it is rare that one might find such audited information that completely counters such blatantly one-sided reporting. And of course the lies have that infamous trickle down effect, bleeding into all of the alternative sources out there. And in the end, it turns out not one agency, news outlet, or armchair blogger has actually checked the only required-to-be-credible source — the audited Comprehensive Annual Financial Report (CAFR).

Thus web trafic is increased, as is advertising. It’s like watching moths nosedive wide-eyed and entranced into a flame. People pay money to be scared in the movie theatre, and apparently it’s the same with their news source. Everyone screws everyone in their own subtle way, not merely carrying the lies but spinning them to suit the needs of their particular platform and commercial (capitalist) sales model. Lying is legal. Who needs morals? For the art of the lie is the very foundational nature of a capitalist (value per head) government and those in its citizenry hopelessly caught up by its corruption and greed.

From the absolutely unverified and un-vetted ZeroHedge.com report we read the following quotes:

Tweet: @SteveWestly

The pension crisis is inching closer by the day. @CalPERS just voted to increase the amount cities must pay to the agency. Cities point to possible insolvency if payments keep rising but CalPERS is near insolvency itself. It may be reform or bailout soon.http://ow.ly/CQGw30iyLko

–=–

The preceding tagline for this tweet as a commentary by ZeroHedge.com states:

“…having reported over and over and over (and over, and over) again that public pensions are in deep trouble, two days ago none other than Steve Westly, former California controller and Calpers board member – manager of the largest public pension fund in the US, made a stunning admission, confirming everything

–=–

This is obviously and admittedly not the first time such fear tactics have been reported by ZeroHedge.com about the so-called “public pension crisis” while calling it as news. It continuously pretends to be in the know while in fact knowing nothing but what other news outlets, politicians, and market analysts publicly report (lie) and tweet. Round and round the parrots repeat each other, spinning their opinions while imagining their own not-at-all uniquely re-reported perspectives are somehow actually to each their own original analysis, just as the bird in a cage fallaciously squaks “hello” over and over without any substance or experiential knowledge of what that term actually means. This type of reporting is akin to a see, I told you so mentality, reporting over and over the glib and often false or even planned predictions that others make, in order to put forward the illusion of ones own newsworthy correctness over that which is not at all demonstrable or predictable.

If I say it will happen in the future because other “experts” do, then chances are it will, at least in some inevitable form or the other and in an unlimited time period, and I can then say I told you so… This is the same reason one might invest in the stock market, because Warren Buffet says I should. Of course this only benefits those already invested, driving up the price of the stock in the short term as the public lemmings emulate their false financial gods.

Predicting an up or down boom in these volatile financial markets sometime in the future is like predicting a politician will lie to the public. It’s a self-evident certainty, and ultimately just a matter of time… Of course it will crash, dummy! Of course it will rise, idiot! For these are the only two possible options that can actually happen! And so by predicting both will eventually happen, one really can’t lose. It’s like predicting the sun will rise. And so another false guru is thrust on the unwitting public telling us so.

But therein lies the very heart of the game…

You see, they bet against it before it gains or crashes. They cover their bets, their options, and they reinsure what they already have insured. They can’t loose, man! The market must go artificially up so that it can then be brought artificially down. The lemon must grow to ripeness before it can be squeezed to make lemonade and the seed replanted for the next squeeze. This is basic organized crime 101. There is no right or wrong prediction. It’s a continuum; a fractal without totality, without sum, a cancer that keeps growing and being cut back down ad infinity. But more importantly… it’s without (outside of/opposed to) Reality. Super-natural. It’s fiction. And in any fiction, the artist (creator) creates the future, not the neutral randomness of Nature, and certainly not those reporting on its history.

For those that don’t quite understand the basic con game of reinsurance and its various forms, let me give you a generic example of what happens behind the scenes:

  1. In the U.S. (or any nation) I (through government) legally collect taxpayer money (or other capital from any and all willing, ignorant suckers) by incrementally placing taxpayer money into a public investment fund.
  2. When I reach $10 million in my local or state investment fund, it is now time to “legally” steal that money from the public.
  3. I now open a dummy corporation in Zimbabwe, where I place $10 million in capital.
  4. Back in the US, my $10 million of taxpayer money is enterprise fund (non-governmentally) invested in or “bet” on a certain stock or portfolio thereof in the similarly performing stocks.
  5. I, of course, have inside knowledge (or create it) that the stock market or certain sectors thereof will take a nosedive or “crash” soon, as planned. And so its time to extract the excess wealth from these now purposefully over-priced companies.
  6. I then invest that $10 million from my obscure, unreported dummy corporation in Africa into the American stock market. But I bet against (via put options) the same stock I invested public funds in back home, just like they bet against airline stocks for the day of 9/11/2001 with apparent pre-knowledge of the “event.”
  7. The market crashes, just as I fully expected and have planned (insured and reinsured) for.
  8. I lose $10 million of my governmental taxpayer fund balance in the United States, and look to the taxpayers to bail out my apparent mistake, pretending (lying to the public about) a total loss, and may even have the gall to ask for bailouts or bonds (government sponsored loans) to cover it.
  9. But at the same time I gain that same $10 million (or much more) in Zimbabwe, and cash out.
  10. In the market itself, nothing looks suspicious. Just business as usual, where a few win, most lose. Some, however, play both sides. The loser always pays the winner.
  11. I launder and convert my holdings, pay my accomplish in Africa the value of $1 million under the table, and simply close that dummy corporation so it cannot be traced back to me. And no one in the idiocracy of the public, taxpayer base is ever the wiser. The balance has not changed. One bet pays another. The criminals protect each others private prospects. This is merely a laundering of money from the taxpayer base into an offshore account, done within the appearance of (de facto) “illegitimately legal” legitimacy using this organized criminal platform called the worldwide stock markets. What is constantly exacted as investment-based and other losses from these public funds is constantly being gained somewhere else. It’s a quite basic, completely legal con job.
  12. And this is why our incestuous, nepotistic congressmen within their familial accomplices (the People) have vacation homes and investment properties all over the world, sitting arrogantly on each other’s boards and laughing all the way to their offshore banks.

–=–

On a micro/macro-cosmic scale, this same model is the basis for both the wealth of the organized criminals calling themselves as a de facto (illegitimate/militarized) “government” in pretended legitimacy compared to the absolutely controlled poverty level (called “welfare”) of the common class. If I insure one thing I reinsure it in the background. In other words, I insure against the insurance, betting against what the original policy or other investment pays out for. Thus disaster or no disaster, I am covered and will come out ahead, especially if I can cause the law to require and sanction taxpayer funding of one of my bets and coverage (bailout) of any losses. For the financially illiterate goyim, as the limited common citizenry, there is only the gamble of insurance or no insurance. Yes or no. But for this upper class, all bets are covered. There is no easier way to explain this. But this is also why there is no easy way to explain the ups and downs of all financial markets, for we are not allowed to see their game-plans, their blueprints for the continual, perpetual destruction and rebuilding of their own artificial markets. They care not the value of corporate stock, only that they have the majority and thus control of it and the company it represents. They and their corporate funders are the beneficiaries of the financial phoenix they create and recreate as it burns and is reborn with every click of the market ticker and every computer-generated, purposeful flaw they take precise advantage of through techniques in arbitrage.

ARBITRAGE – Transactions of bankers and mercantile houses by which stocks or bills are bought in one market and sold in another for the sake of the profit arisirg from a difference in price in the two markets. (–Black’s Law Dictionary, 4th Edition)

–=–

Why do pension funds and government investment funds hold so much in all foreign currencies traded on all different (foreign) markets/exchanges? Because of arbitrage, a constant buying and selling so as to capitalize upon the continuous, minuscule mistakes in pricing from exchange to exchange. Of course high-speed computers are set up to catch every single mistake as it happens, as what is ultimately missed by human disadvantage. The action of an arbitrage exchange can happen in a 10th of a second, multiple times — beyond what the human eye could possibly track.

They buy yen for one dollar on one exchange and sell it at the same time on another foreign exchange for $1.01 before the two exchanges have registered the change, and they can do this all day and all night long in various 24 hour time zones. Sound illegal? Remember, it’s government taking advantage of these little cheats.

Who ya gonna call?

While we watch that impressively complicated shit-storm, distracted by the volatile and fiery inferno of constant market activity that upon appearance means nothing to us, they are profiting from every change in market valuation. The magicians, the illusionists always work by the art of distraction, keeping their audience the fools and stranding them behind their own wonder and awe, amazed by their own ignorance of what lies behind each trick and yet utterly confident that something just ain’t right here. Yet still we need to believe it’s all real, even legitimate, and not just the long-con Ponzi scheme it always has been…

But what we do have access to out here in la-la land is the CAFR. We can see what they did after the fact each year and on a continuing basis. This audited report is a thorn in their side, of course, and yet their collective crimes cannot be “organized” without it. It is a necessary evil, or necessary good, depending on whose hands it gets in to. In my hands, for instance, the CAFR is their Achilles Heel, the shining light to their projections of darkness through lies. The CARF simply cannot be denied, though they certainly try. It can, however, be ignored and made publicly invisible by simply never referring to it in any public forum, including congress. For the CAFR is the great false mystery that is the holy grail of government accounting; that metaphoric, governmental fountain of youth (rejuvenation) that are these collective, extortive investment funds kept out of the public spotlight.

Let’s read from this latest CAFR, for instance, about how CalPERS invests, holds, and profits from one of the most toxic debt instruments ever invented:

7. DERIVATIVES

“CalPERS holds investments in swaps, options, futures, rights, and warrants and enters into forward foreign currency exchange contracts… The fair value of international currency forwards represents the unrealized gain or loss on the related contracts, which is calculated as the difference between the contract exchange rate and the exchange rate at the end of the reporting period.”

–=–

Do pensioners care what their governmental or private pension fund invests in? Well, I cannot in good conscious venture to guess what this group of dependents on state and federal welfare for the middle class personally care or don’t care about. However, in appearance, it seems that as long as their extortion and usury-based retirement checks keep coming in, they certainly appear to not have a care in the world just what their collective contributions are invested in, let alone the resulting globalist control or illegal, permanent state of occupational world war it causes. Hell, most have no idea where to even find the list of corporations and holdings invested in! Many have never even logged in to the CalPERS website, let alone contemplated that their own retirement payments necessarily represent nothing but mass profiteering and pirating from the worst of the worst companies from around the world, as well as the debt of most of their fellow citizens. They have no idea they are handing the entire control structure of corporations around the world to government.

I invite you, the “pensioner,” and you, the “taxpayer,” to pull up this investment holdings report for CalPERS, with the understanding that this is just one of many thousands of such pension investment funds worldwide. Look at the stock holdings and the market values, and allow yourself to grasp the importance of being the collective holder of so many shares of stock in any and all substantial corporations around the world. Imagine the power of being the main shareholder through collective bargaining and proxy voting, while at the same time being the government, lawmaker, and regulator (and de-regulator) of all corporations, having the ability to ruin any rogue, moral, uncooperative company in the world.

One cannot imagine the scope and size of this organized criminal network until this particular report is seen for oneself. Look up the worst corporation imaginable and it is there. Look up the main banks, investment firms, and corporations in communist China and other supposedly “enemy” countries, and there you will find massive, controlling, United States and other globalist government pension and other organized fund investments. Like it or not, this applies to all of us, for whether you are a pensioner or a taxpayer or both, you individually are equally complicit in this self-destructive, globalist scheme. Ignorance is no excuse. If you do not look, you will never believe that you have been played as the fool. If you are a pensioner and do not look, you will never contemplate just how much your own false piece of mind in such a false sense of security as this retirement scheme in mammon has caused the entire world population. You will never imagine your benefits are gained solely at the expense of everyone else in the world, let alone your fellow majority of extorted taxpaying citizens. And you will never understand just how this monstrous, monopolistic, corporate world governance structure came into power as it has.

Seriously… do a search in this report for the word China. You think America imports cheap Chinese crap from just Chinese companies? Well, I have news for you sunshine… those corporations in China were built with American investment capital from such investment funds as your own. The proof is undeniable, listed right here in this investment holdings report:

Link–> https://www.calpers.ca.gov/docs/forms-publications/annual-investment-report-2016.pdf

Where do you buy food? Governments own the majority share of its corporate stock and by collective shareholder proxy votes for its board of directors, etc.

Where do you buy clothes? Governments own the majority share of its corporate stock and by collective shareholder proxy votes for its board of directors, etc.

Where do you bank, get gas, and what television news, magazines, and newspapers do you subscribe to? Governments own the majority share of their corporate stock and by collective shareholder proxy votes for its board of directors, etc.

Of course the board of directors of each corporation elects the CEO and other officers, in accordance to what government collectively desires. After all, the board does the shareholders’ bidding, and its even the government’s law regarding these for profit corporations that that corporation’s board must make profits and gains for the shareholders (governments) its top goal.

Again, no corporation owns government, as the empty rhetoric of propagandists and alternative newsie parrots have been conditioned to believe. By law, and by evidence of stock certificates and participation in mutual fund activities, government provably owns shares in all corporations and expresses its will through proxy shareholder voting, and this cannot be disputed.

In fact, there is a whole section of the CAFR and the website for CalPERS devoted to its activities in “corporate governance,” the general term used to describe such governance of corporations through stockholder voting, or in this case, governmental agency stock-holders.

From the CalPERS website we read (links active):

As a long-term shareowner, CalPERS sees voting our proxies as the primary way we can influence a company’s operations and corporate governance. This is why it’s important for shareowners to vote and make their decisions based on a full understanding of publicly available information.

For more information on CalPERS proxy voting, read the CalPERS Governance & Sustainability Principles (PDF).

Proxy Voting Decisions

To view a record of all CalPERS global proxy voting activity, visit Global Proxy Voting Decisions.

CalPERS also publishes additional voting information for high profile votes and company-specific shareowner campaigns. Visit Key Decisions for additional details. All votes are provided for informational purposes only and do not constitute investment advice.

For more information, read the related article Proxy Access Gains Ground as Companies Reach Pacts with Shareholder Proponents.

Link–>https://www.calpers.ca.gov/page/investments/governance/proxy-voting

And for their corporate governance page, see here:

Link–> https://www.calpers.ca.gov/page/investments/governance

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Note that CalPERS admits here to being a “long-term” shareholder and voter of its invested in corporations. Yet it openly obfuscates this fact when reporting on bad years in the stock market, as if the yearly performance of a stock or portfolio thereof is somehow its infinite state of valuation, as if one year accounts for the past or next 50 years of performance while that stock is held in the long-term. More trickery… for what goes up will come down, and what goes down will go up again. But oh the propaganda and falsified taxpayer bailouts they can create in between.

When we take a photo on vacation, do we believe somehow that this single snapshot is the entirety of our experience, or do we consider the whole vacation before we assign such a valuation? The snapshot is the budget, while the whole vacation experience, with all its ups and downs, is the CAFR. A budget report is like the accountant’s voluntary, monetary alzheimer’s disease. Selective statistics are used to prevent accurate information in the yearly budget alone.

To be clear, all bad news that these accounting magicians report to the public is always of the short-term or budgetary (yearly), but never of the long-term or comprehensive (from inception). This is the essence of word magic, the delusion of creative accounting at its best. The temporary, short-term results can always be used to hide the long-term Truth by omission of long-term facts and totals, or by simply hiding those long-term results from the public discourse, from the yearly budget. And this is especially the greatest difference between the budget report and the CAFR. There is no hiding anything in the CAFR, for all assets must be reported, even if that reporting standard is done so in what I call creative accounting language. As with any commercial art, one must learn the language, the terms of art, and accounting tricks before one may fully grasp the scheme. And it is perhaps this fact alone, the lack of proper use and understanding of terms of art, that wholly disqualifies just about all reporters and alternative websites on the planet. Public ignorance of the accounting and legal languages is key to success.

One never teaches ones slaves ones private language, lest the slave become equal with the master, for words are the only chains that bond us in surety.

Here we read that CalPERS uses “global proxy voting activity” to “influence a company’s operations and corporate governance…” In other words, this is the definition of global governance. Globalism – the Order in the New World of centrally controlled, fictional finance.

Can you dig?

In fact, I here and now defy you to find a public corporation not listed as a government-held US or international equity on this report! Maybe then you may begin to comprehend just how the world of finance and corporate governance actually works — besides what those government owned news outlets publicly report to you. Maybe you’ll get why the practice of usury (interest) and grocery (retail) is so accepted and protected by government, for the profiteer is after all always government and those who suck upon its teat the hardest. After all, and as we will discuss in a moment, government is also the largest holder of toxic debt instruments and loans. Debt, it turns out, is one of the most profitable investments one can make! Investing in debt is how billionaires are generally made. And yes, these are also listed in that asset holdings report, for debt is certainly an asset to the purchaser, and thus by proxy, the creditor.

CONTRACT SYSTEM – As applied to state prisons, this phrase signifies that the labor of the prisoners is utilized by private persons or contractors, who thus secure the profits of such labor. (–Black’s Law Dictionary, 4th Edition)

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What happens when eventually, through these investment schemes, government purchases all our debts, both corporate and personal? Why debtor’s prisons, of course. For the lawmakers and their prescriptive legal laws can only become more corrupt as more and more industry is subsumed by the master corporation nation that are organized (united) national and world governments. As the main shareholder, it is in the best interest of government to pass laws allowing debtors to be imprisoned, as forced labor. As the regulator of corporations, which by law must make a profit for its shareholders (i.e. government), government must create ways to extort money from debtors that cannot pay their debts, and thus again debtor’s prisons are a logical solution. This is the purest construction of conflict of interest.

I was shocked to learn that the “Made In America” symbol is placed on products made in US prisons. And to me, nothing could be more telling of our societal and moral degradation and ignorance than that! But then again, the 13th Amendment to the US constitution did make “involuntary slavery” perfectly legal for punishment of crimes, so this would be the logical conclusion. Oh, and you thought it fired the slaves? LOL! It nationalized slavery in the form of the 14th Amendment citizen and allowed prisoners to be used as labor force. If that’s your idea of freedom then just shoot me now.

In any case, what we are most certainly witnessing today in the public sphere is the mass-induced fruition of such quotes and warnings as these:

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“Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity.

–Martin Luther King, Jr.

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“There are two ways to be fooled. One is to believe what isn’t true; the other is to refuse to believe what is true.

―Søren Kierkegaard

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“Real knowledge is to know the extent of one’s ignorance.

–Confucius

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“We are all born ignorant, but one must work hard to remain stupid.

―Benjamin Franklin

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Facts do not cease to exist because they are ignored.

–Aldous Huxley

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“Sometimes a man wants to be stupid if it lets him do a thing his cleverness forbids.”

–John Steinbeck

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“The two pillars of ‘political correctness‘ are, a) willful ignorance, and b) a steadfast refusal to face the truth.

–George MacDonald Fraser

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But you can’t make people listen. They have to come round in their own time, wondering what happened and why the world blew up around them. It can’t last.”

―Ray Bradbury, Fahrenheit 451

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“No drug, not even alcohol, causes the fundamental ills of society. If we’re looking for the source of our troubles, we shouldn’t test people for drugs, we should test them for stupidity, ignorance, greed, and love of power.”

―P.J. O’Rourke

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There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means thatmy ignorance is just as good as your knowledge.

―Isaac Asimov

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“Any formal attack on ignorance is bound to fail because the masses are always ready to defend their most precious possessiontheir ignorance.

―Hendrik Willem van Loon

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“The vast majority of human beings dislike and even actually dread all notions with which they are not familiar… Hence it comes about that at their first appearance innovators have generally been persecuted, and always derided as fools and madmen.”

―Aldous Huxley

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Blind party loyalty will be our downfall. We must follow the truth wherever it leads.”

―DaShanne Stokes

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“He didn’t believe that, surely.” “Of course not! But he had to pretend he did, as otherwise he would have had no choice but to be insulted. And since there would be nothing he could do about that, being insulted would only lead to humiliation. And since he didn’t want that, the simplest path to follow was to believe what I said.”

―Isaac Asimov, Foundation’s Edge

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“The moral complexity of the situation had grown past his ability to process it, so he just relaxed in the warm glow of victory instead.”

―James S.A. Corey, Leviathan Wakes

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“The more you can escape from how horrible things really are, the less it’s going to bother you…and then, the worse things get.

―Frank Zappa

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“The hardest thing to explain is the glaringly evident which everybody has decided not to see.

―Ayn Rand, The Fountainhead

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“The greatest obstacle to discovery is not ignorance – it is the illusion of knowledge.

–Daniel J. Boorstin

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“Willful ignorance and endless laws become the replacement for self-education and self-restraint, because ignorance and laws are easy.

―Holly Lisle

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“Five percent of the people think; ten percent of the people think they think; and the other eighty-five percent would rather die than think.

―Thomas A. Edison

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And so the armchair bloggers and digital alternative newsies call out in their illiterate, parroted spin with the type of arrogant ignorance only an unlearned conspiracy theorist could love. But in reality these are just useful idiots helping in the spread of these lying fear campaigns created by those seeking to spread such propaganda for their own benefit, turning the self-proclaimed “alternative” reporter into a valuable mouth-piece for the opposition, into a necessary tool (unwitting agent) for the accidental spread of perfected misinformation. Problem, reaction, solution.

And when the trigger is pulled, this cushioning effect of so many parroted reports and warnings about bankruptcy, insolvency, and the undefined “pension crisis” will allow these organized criminals in government to steal what was promised to the collectively foolish pensioners and taxpayers that voluntarily contributed to these funds in legal trust. The cushion of constant fear and threat in effect causes pitchforks, and for that matter guns, to remain locked up instead of used in revolt against such corruption in government. Like good, patriotic subjects of the state, the mass of middle class fools in their love of servitude will once again outweigh the loss of financial security in retirement once promised by the slave masters. The constant fear propaganda softens the blow, so that revolt or revolution appears to be too little, too late, even as the globalist government mafia laughs all the way to the bank. To live in fear and anticipation is to accept that which is feared and expected when its planned fruition commences. This is simple, Orwellian dystopia mixed with Bernaysian propaganda and public relations.

Ever asked why a government needs public relations? Why the military has commercials?

Ever considered that only that which keeps secrets, lies, and seeks to mislead or cheat the public would possibly need a public relations office?

One that tells the Truth relates the Truth at all times, and therefore needs no agency.

This insanity of an idiocracy seems to mirror the American and Italian propagandists in their support of the leftist social democrats, being labeled as quite “useful idiots” for their then blind support of foreign communism, while the similar term “useful innocents” was used by the Austrian-American economist Ludwig von Mises in his 1940’s pro-war book entitled Planned Chaos, a term that was used by communists for liberals, whom von Mises describes as “confused and misguided sympathizers.” In the end, such blind support and repeated spreading of these emotional and fear-driven public perceptions as political “facts” (legal fiction), though they are easily provable lies, ends up helping the organized criminals cause instead of harming it. And after so many years of being in the middle of this cornucopia of “alternative news” armchair reporters and disinformation websites and radio networks, some innocent and some not so innocent, this spreading of lies seems to be the entire unintended, oppositionally-controlled purpose and certainly the result of the so-called alternative truth movements. We ultimately and without reason serve to expose without any consequence whatsoever of that exposure, except to further excite false information and reveal public actors as agent provocateur personalities as if they are the actual players behind the crimes. We then say simply, I told you so… No one gets busted because no truth, no secrets are being reported to the organized criminals in government. Only lies are given, which are then imagined to be facts by that public, alternative or mainstream. And so we all end up believing this is exactly what was supposed to happen, no matter how obviously criminal its design.

Again, the “truth” about the Fed is the perfect example — so many empty lies that with just a token bit of research are destroyed as patriotic myths designed to re-direct blame away from the legislative gods (creators/lawmakers) of all governmental agencies, corporations, and banks, which is the “United States” corporation Congress (a de facto board of directors).

This alternative network of ineffective reporting is like solving a Rubick’s Cube. One solves the puzzle and puts the pieces together in a pattern, only to realize later that there are 5 other sides to solve at the same time. And when one correctly, finally puts all those sides together, one realizes that there now sits a solved puzzle, one which serves no purpose except in its perfect representation of a perfectly played out plan. When all sides are seen, then one may finally see that what was apparently broken or out of order wasn’t broken at all, but is instead a well-oiled and perfectly operating machine. In governments case, as the premier purveyor of police and military protected, organized crime, the ability to read the CAFR through all its creative accounting and terms of art is like solving that Rubick’s Cube. And so one comes finally to the only accurate conclusion one can, which is that this is all legal. They make the rules. They set the standards. They lie to the public with their own permissions and protection. And they have organized and are currently playing out the end of one of the biggest ponzi schemes in the history of all scams. And its all legal, because those perpetrating the scheme are also the lawmakers, law enforcers, and beneficiaries that would otherwise stop such a crime.

And what is the end? Why, its not the end at all, just a transitionary stage with severe growing pains. For what is the end for us is just the beginning of a totally controlled globalist government modeled after this one. Same scheme but on a world-wide scale. Thus all men must be marked with a digital, biometric, legal identity and forced into the global social security pension fund scheme in order to continue the grand ponzi scheme. And those willing to cooperate will of course be given the opportunity to do it all over again, to contribute into new globally managed pension funds in exchange for global taxation on all global taxpayers to further purchase the controlling share of all corporations world-wide.

Don’t you realize that congress is the bank, and that all corporations calling themselves as banks and men as corporate bankers are under the unified umbrella and law of the only actual bank that exists — government?

Who prints the money? Government.

Who holds copyright on the money? Government.

Who controls that money’s circulation? Government.

Who allows and disproves banks to participate as members of the Federal Reserve? Government.

Who passes all laws regarding money? Government.

And don’t forget that Nelson, Jay, Winthrop, and Winthrop P (Jr.) Rockefeller and of course the Rothschild cousins were also politicians, not just bankers… and they pretend to be both Democrats and Republicans!

So what don’t you understand?

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“Those who manipulate the organized habits and opinions of the masses constitute an invisible government which is the true ruling power of the country… It remains a fact that in almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by this relatively small number of persons… It is they who pull the wires which control the public mind, who harness old social forces and contrive new ways to bind and guide the world As civilization has become more complex, and as the need for invisible government has been increasingly demonstrated, the technical means have been invented and developed by which opinion may be regimented.
 
Edward Bernays (18911995), Author, Propaganda, and Chief Advisor to William Paley, who founded CBS in 1928
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Is it really so difficult to imagine this, even as we watch with every new administration the same corporate shills and CEOs flowing freely in and out of public and corporate office, only to later be hired or rehired back under the same or higher office and title that he or she was before responsible in regulating (read de-regulating)? When bankers become Fed Chairmen, Monsanto executives become head of the FDA, and even when only Zionist, duel-citizen, warmongering Israeli “Jews” become chiefs of staff and sole advisors in trust for strictly Arab nations, we can see there is a grave fault in this regulatory, legal, and political system. A fault, indeed, but not to those organized criminals in tow. For again, the system is running as smoothly as can be imagined from an extortive, criminally minded perspective, the litmus test being not only these obvious rewarding and stratigic corporate moves in and out of government, but the exact control of public opinion and purposeful ignorance spoken of above.

Consider this: what was and still is a “bank” before these very modern buildings we have so named as such were constructed, before fiat currency and digital credit systems? Just like the church is not a building created by the hands of men but is the righteous people thereof, so too is a bank not just a building built by men, but the incorporated persons thereof. The bank is government! For all corporations are under, registered to, and premised by government. A bank only exists because government says it can, and for no other reason. Always has been this way, always will be, for there is no purpose or power to any legalistic, corporate government without control of commerce and its monetary tools.

BANK – A bench or seat; the bench of justicethe bench or tribunal occupied by the judges; the seat of judgment; a court. The full bench, or full court; the assembly of all the judges of a court… (Black’s Law Dictionary 4th Edition)

FIAT – [Latin from fio.] Let it be done; a decree; a command to do something(Webster’s 1828 Dictionary of the English Language)

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“A banker is one who makes merchandise of money
An act to be done by a bank means an act to be done
by those who have the authority to do it.”

–W.C. Anderson’s Dictionary of Law, 1889, Definition of Bank

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The root of all evil is not money itself as a tool of exchange, but making money from money and changing that which is valued in money into merchandise. The money-changer is evil because he changes the intention of money into that of usury (interest) and grocery (retail). If money and its creation were at all times and by law not for profit, most of the worlds problems would be solved. Mammon would have no cloths. And none of this cancerous, out of control, never payable growth and debt would be possible. To be clear, without debt (contract), no man or government would ever have power over another. This will become very clear as we proceed.

Most use the word fiat as attached to any currency without knowing its actual meaning. Of course, a fiat currency is simply the will of the king or head of the church and state, or in our modern sense, the “government” as defined and constituted. The government (under the head magistrates of congress and president) writes (appropriates) a bill, and out of thin air valuation (mammon) is created by these false gods (creators of artifice), a fictional value to be later manifested by and represented as fiat currency, with the caveat that this creation from nothing is actually a debt upon the entire public realm, which in Reality can never actually be paid without destroying the “economy.” Once the negative value is positively placed (balanced) into the legal accounting or doomsday book, it can then be printed into some form of certificate of debt, as legal tender.

It is said that only a god can create something from nothing. Well, government is a legally constituted god you fools! It is master over what it creates…

One only need understand one’s own disposition in court to understand the master (god) and servant relationship between a citizen and a magistrate (judge). For today we may use the word plea or plead in official standing, but it still means the same as it did from its inception. The citizen can know only one, legal god, for the citizen is not of Nature and thus not part of or under the Law of Nature.

When we plead to a judge, we are actually, legally, praying to a god (magistrate). The fact that the reader may deny this in any way shows how ignorant, how “imbecilic” we have all been made as to the very law system that governs our persons.

PRAYER – The request contained in a bill in equity that the court will grant the process, aid, or relief which the complainant desires. Also, by extension, the term is applied to that part of the bill which contains this request. (–Black’s Law Dictionary, 1st Edition)

PRAY IN AID – In old English practice. To call upon for assistance. In real actions, the tenant might pray in aid or call for assistance of another, to help him to plead, because of the feebleness or imbecility of his own estate. (–Black’s Law Dictionary, 1st Edition)

PRAYER OP PROCESS – is a petition with which a bill in equity used to conclude, to the effect that a writ of subpoena might issue against the defendant to compel him to answer upon oath all the matters charged against him in the bill. (–Black’s Law Dictionary, 1st Edition)

PRAYER OF PROCESS – chancery. Plead.That part of a bill which prays that the defendant be compelled to appear and answer the bill, and abide the determination of the court on the subject, is called prayer of process. This prayer must contain the name’s of all Persons who are intended to be made parties(–Bouvier’s Law Dictionary, 1856)

PRAYER FOR RELIEF – chancery. Pleading. This is the name of that part of the bill, which, as the phrase imports, prays for relief. This prayer is either general or special but the general course is for the plaintiff to make a special prayer for particular relief to which he thinks himself entitled, and then to conclude with a prayer of general relief at the discretion of the court. (–Bouvier’s Law Dictionary, 1856)

PRAYverb intransitive – [Latin precor; proco; this word belongs to the same family as preach and reproach; Hebrew, to bless, to reproach; rendered in Job 2:9, to curse; properly, to reproach, to rail at or upbraid. In Latin the word precor signifies to supplicate good or evil, and precis signifies a prayer and a curse. See Imprecate.] 1. To ask with earnestness or zeal, as for a favor, or for something desirable; to entreat; to supplicate. Pray for them who despitefully use you and persecute you. Matthew 5:44. 2. To petition; to ask, as for a favor; as in application to a legislative body. 3. In worship, to address the Supreme Being with solemnity and reverence, with adoration, confession of sins, supplication for mercy, and thanksgiving for blessings received. When thou prayest, enter into thy closet, and when thou hast shut thy door, pray to thy Father who is in secret, and thy Father who seeth in secret, shall reward thee openly. Matthew 6:5. 4. I pray that is, I pray you tell me, or let me know, is a common mode of introducing a question.verb transitiveTo supplicate; to entreat; to urge. We pray you in Christ’s stead, be ye reconciled to God. 2 Corinthians 5:20. 1. In worship, to supplicate; to implore; to ask with reverence and humility. Repent therefore of this thy wickedness, and pray God, if perhaps the thought of thy heart may be forgiven thee. Acts 8:22. 2. To petition. The plaintiff prays judgment of the court. He that will have the benefit of this act, must pray a prohibition before a sentence in the ecclesiastical court. 3. To ask or intreat in ceremony or form. Pray my colleague Antonius I may speak with him. [In most instances, this verb is transitive only by ellipsis. To pray God, is used for to pray to God; to pray a prohibition, is to pray for a prohibition, etc.] To pray in aid, in law, is to call in for help one who has interest in the cause. (–Webster’s Dictionary of the English Language, 1828)

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Like being so lost in The Matrix virtual reality simulation that you have no idea you are even in it, so too have we been tricked and deceived into calling these men in uniform dress and code as our false gods (magistrates/judges) without realizing what we are doing. You pray to these magistrate gods with every question, with every answer, and with every supplication (solicitation) to any government functionary or agency. And this is exactly how the Bible instructs us we will be deceived, by the love of false gods (idolatry). There is no mystery here, just the love of fiction over Nature (Reality). This is not colloquial, not metaphor, and not to be taken lightly. For it establishes the doctrine of master and servant, meaning we voluntarily worship, pray to, and thus are fallen through contract under government oppression and extortion. It is new feudalism by contract law, for the contract makes the law. This is the legal meaning of volunteerism. And what is most misunderstood about volunteerism is that, just like in the military after one has voluntarily joined, the coercion and violence happens only after one has volunteered, not before. In other words, the fallacy of involuntarily or unwillingly receiving services at the barrel of a gun is completely misconstrued, for the service can only be forced once volunteerism, as the doctrine of master and servant, has been contracted (e.g. public, US citizenship). Once under contract (use of person), the contract makes the law, and he who makes the contract makes the law of the contract, and thus is the god over anyone under the contractual relationship (as a user of anothers property). If you use the name, number, signature, or any other mark of identity (sameness) of any legal creation, then you are bound to perform as that legal persona (mask) and pray to these false legal gods for everything. It is they that permit you to fish and hunt and drive on their public lands, feud style. If you have received any such license, then you received it voluntarily by praying (applying for permission) to a magistrate (legal god) for it.

It’s time we are re-taught that the word god is a generic, general term meaning nothing until qualified, and that this word god in its legal sense applies to many political positions (persons/flattering titles) of men. While today we use the words plea (plead) to the judge (lord) of the court, the court records of just 100 years ago show a very different and honest language, revealing clearly that we prayed to the god of the court, which was the judge (magistrate). Even today in rare court cases can we find the word prayer instead of plea. It is even law in England that certain high-ranking judges be called as “lords.” And so we must realize that this word god is not merely a religious one, but also a term of the legal art. A god (lower case) is therefor a construct of the legal matrix, having no authority except over that which it creates and governs as property. And whether you care to admit it or not, your gods are certainly well-defined for you, especially if you are a pensioner.

GODnoun – …2. A false god; a heathen deity; an idol. Fear not the gods of the Amorites. Judges 6:10. 3. A prince; a ruler; a MAGISTRATE OR JUDGE an angel. Thou shalt not revile the gods, nor curse the ruler of thy people. Exodus 22:28. Psalms 97:7… 4. Any person or thing exalted too much in estimation, or deified and honored as the chief good. Whose god is their belly. Philippians 3:19. – verb transitiveTo deify (–Webster’s Dictionary of the English Language, 1828)

MAGISTRATEnoun – [Latin magistratus, from magister, master;magis, major, and ster, Teutonic steora, a director; steoran, to steer; the principal director.] A public civil officer, invested with the executive government or some branch of it. In this sense, a king is the highest or first magistrate as is the President of the United States. But the word is more particularly applied to subordinate officers, as governors, intendants, prefects, mayors, justices of the peace, and the like. The magistrate must have his reverence; the laws their authority. (–Webster’s Dictionary of the English Language, 1828)

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You may not like religion, but you have chosen your anti (false) gods and worship them daily because you have chosen citizenship under them and their legal system. You vote for them and honor them as if you are castrated, sacrificial goats. You allow them power over you in surety of their offered citizenship in personhood and they accept your voluntary sacrifice and thus reward you justly with debt-slavery in the credit form of fiat currency, allowing you freedom (commercial franchise) within their district (open-air debtors prison).

But then, I wouldn’t expect the average joe to know what it is to be confined (interned) in a district, what the word means, and why it is the foundation of debt-slavery as a citizen to it:

DISTRICTnoun – [Latin, to press hard, to bind. See Distrain.] 1. Properly, a limited extent of country; a circuit within which power, right or authority may be exercised, and to which it is restrained; a word applicable to any portion of land or country, or to any part of a city or town, which is defined by law or agreement. A governor, a prefect, or a judge may have his district… (–Webster’s Dictionary of the English Language, 1828)

DISTRAINverb transitive – [Latin dis and stringo. See Strain. Blackstone writes distrein.] 1. To seize for debt; to take a personal chatel from the possession of a wrong-doer into the possession of the injured party, to satisfy a demand, or compel the performance of a duty; as, to distrain goods from rent, or for an amercement. 2. To rend; to tear.verb intransitiveTo make seizure of goods. On whom I cannot distrain for debt. For neglecting to do suit to the lords court, or other personal service, the lord may distrain of common right. [In this phrase however some word seems to be understood; as, to distrain goods.] (–Webster’s Dictionary of the English Language, 1828)

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And that’s what you are patriotic about, carelessly and without conscious understanding as to why, waving the US flag of your particular district of Caesar?

The question you should be asking is not when but when aren’t you in the district of the Untied States and its gods (magistrates) and administrative law? The answer, my friend, is never. Why? It’s really simple. Just like a cartoon can’t exist outside of the cartoon realm, nether can a citizen (person/status) exist outside of the fictional district (jurisdiction) that created it. You cannot pretend to be a US citizen-ship unless you worship the law and authority of its gods. So stop pretending you aren’t a volunteer, a servant, and for once in your life acknowledge your free will choice and where it has led you. And don’t you dare call yourself a “Christian” or any other religious flattering title while acting under these false gods under their law and while idolizing them and their system of schemes in mammon with legal “freedom of religion.” If you can’t act like a follower of Christ by penalty of law, then you cannot call yourself as a son of God. You don’t qualify. You aren’t acting the part. Just stop!

IDOLATRYnoun – [Latin idololatria. Gr. idol, and to worship or serve.] 1. The worship of idols, images, or any thing made by hands, or which is not God. Idolatry is of two kinds; the worship of images, statues, pictures, etc., made by hands; and the worship of the heavenly bodies, the sun, moon and stars, or of demons, angels, men and animals. 2. Excessive attachment or veneration for any thing, or that which borders on adoration. (Webs1828)

IDOLATERnoun – [Latin idololatra. See Idolatry.] 1. A worshiper of idols; one who pays divine honors to images, statues, or representations of any thing made by hands; one who worships as a deity that which is not God; a pagan. 2. An adorer; a great admirer. (Webs1828)

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Why do so many religions cause you to worship angels and saints with halos of light above their heads? Do you know that there are no halos in the Bible, and that the halo appeared upon pre-christian era art of the Egyptian god of Ra, the rays of the sun god? It is idolatry to worship saints (sinners), not the least of all because “saint” is a flattering title, to which the Bible says to never respect. But then, who reads the source of their religion anymore to find out everything they are doing and worshiping and praying for is indeed against Nature’s God and Law.

Whose portrait (image) is on money? Why, its the most celebrated, idolized heads of past magistrate gods, of course — the presidents of the Untied States!

In god(s) we trust… Really?

It would be easier to point out the few things we are not committing idolatry on a daily basis than to point to each instance.

But hey, you don’t believe in God (all of self-Existence/Nature/the Universe)? Then why have you manifestly chosen a replacement, anti-god (president, king, pope) for your idolatrous worship? Why the worship of money and its false existence and valuation (mammon)? Which is more ridiculous, to worship all of Nature as on (monotheist) God, or to worship all things fictional as Real, as a replacement system for Nature and its Law? How can you prove or even consider that God doesn’t exist (i.e. trying to prove a negative, which is impossible) when you have voluntarily voted for so many false, replacement gods in government in Its stead? How can we call ourselves anything but fools in this regard? To be clear, this taking of a false god signifies one and only one thing, an abandonment of God and thus what is called God’s Law, or the Law of Nature, which is where all Natural Rights of men are said to come from even by these legal gods. You do not need to be religious in any way to understand what this means, nor that it is a choice. Only a fool would write this off as just religion when in fact it is all recognized as the foundation and opposing force of (and salvation from) the legal law. It is the common law. For you must realize above all else that the legal system and its false creator gods (magistrates) not only believe in but wholly acknowledge in their law the existence of a higher, uncontrollable power called as “God.” And if they acknowledge it as master, thus so do you as their servant. Again, you have no choice, for they are the lawmakers, administrators, and masters of the persona (property) you pretend to be and use as a districted citizenship.

ACT OF GODInevitable accident;vis major. Any misadventure or casualty is said to be caused by theact of God when it happens by the direct, immediate, and exclusive operation of the forces of NATURE, uncontrolled or uninfluenced by the power of man and without human intervention, and is of such a character that it could not have been prevented or escaped from by any amount of foresight or prudence, or by any reasonable degree of care or diligence, or by the aid of any appliances which the situation of the party might reasonably require him to use. Inevitable accident, or casualty; any accident produced by any physical cause which is irresistible, such as lightning, tempests, perils of the seas, an inundation, or earthquake; and also the sudden illness or death of persons. Under the term “act of God” are comprehended all misfortunes and accidents arising from inevitable necessity, which human prudence could not foresee or prevent. (Black1)

ACT OF STATE An act done by the sovereign power of a COUNTRY, or by its delegate, within the limits of the power vested in him. An act of state cannot be questioned or made the subject of legal proceedings in a court of law.(Black1)

ACT OF LAWThe operation of fixed LEGAL rules upon given FACTS or occurrences, producing consequences independent of the design or will of the parties concerned; as distinguished fromact of parties.” (Black1)

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Stop for a moment and imagine the evil grin upon the face of any judge (false god) towards any fool that stands before him, literally praying (pleading) to him, while claiming at the same time to be an atheist. LOL! Imagine contacting an insurance agency only to be told that an “Act of God” isn’t covered because it’s not a legally sanctioned act of man. To then claim the non-Existence of God would be like dying of thirst because you believe your body needs no water. The author asks not here for the reader to suddenly grasp religion, for religion is not of God (Nature). Religion is a creation of man alone. I simply warn you that only a fool would go down the path of claiming a negative, that God doesn’t Exist, knowing that a negative cannot ever be proven, while at the same time subscribing to a government that not only believes in and acknowledges the power and authority of a God that’s higher than it, but also directly tells you that your only True rights come from God, and that giving up those rights is a necessity to be a citizen in its district.

If it isn’t clear by now, all these things aren’t an effort to attempt to vainly prove that God Exists or does not Exist, but instead to establish the foundation of the entire fiction that is the legal system, which clearly admits of and legislates based on said Existence (God). To participate in such a system while denying the Existence of the very concept and definition of “God” as the source of all things in and as the Universe, in and as Nature (the Universe), and of course the source of all “natural rights” is about as stupid an action as anyone can possibly take. To deny Source is to deny ones own Existence, and that borders on insanity. To deny God is to deny Existence Itself, as nihilism, which in the eyes of any government that bases its entire law and foundational superstructure on the God (verb/action/Existence/Being) of Nature, The Law of God, on self-Existence in self-responsibility, is to necessarily deny the Law of Nature and instead embrace its opposite, the legal law system (doctrine) of man. To declare “atheism” publicly is to declare publicly the need to be enslaved, which is why those that did in recent history were shunned, banished and imprisoned.

Even if this is all fiction, and God doesn’t Exist, I want you to consider that this entire legal, governmental and non-governmental system and its insurances is still based on the fiction, and you are still under that fictional story. It makes no sense whatsoever either way to deny “God” when government elevates “God” as Source and the reason for its existence (opposition). In fact, its really the dumbest “public” thing you can espouse.

I am not spouting my own opinion here, but giving you the definition of God (Jehovah) as it was intended to be read in the Bible and other scriptural (Truthful) sources, and as can be found in the concordances, lexicons, Bible dictionaries, and all other sources. To read the Bible without the definition of God is perhaps the most idiotic thing anyone can do. But then, that’s exactly what we’ve been taught to do, and then to actually debate with each other on whether or not Existence Itself exists? LOL! Brilliant. Oh, the idiocracy we have become…

But then, isn’t that congenial with the whole point of this essay, the mostly unwitting and often purposeful ignorance and irrationality of the public mindset, which can be tricked into actually and publicly not believing in Self-Existence, in what is the self-evident Truth, which is the very definition of God used in the Bible? Not a man in the clouds or a burning bush as used metaphorically to tell a story, but in Nature and all the Universe as a “Living God…” What is God. Its simple. All that is not man-made, including words. Thus “God is Truth.”

Inversely and really quite amazingly, at the same time we have also been completely stupefied and have lost all contemplation that our rulers are our acting replacement gods, or even that as replacement (anti) gods this must necessarily mean that a Higher God must be acknowledge even by them. There is no replacement (anti) without some Source to be opposed to or in the stead of. There can be no alternative immoral (anti-moral), legal law unless first and Highest there is a foundational moral Law. Are these Truths not as well self-evident? We pretend that the current queens (kings), popes, and other rulers are descended from those Kings, Pharaohs and Caesars of old, that nothing has changed accept the ridiculous delusion of active democracy. We are tricked quite handily into voting, or not voting, a wonderfully deceiving false choice. For there is never a choice to vote no. To not vote is a just to abstain, which members of congress do all the time, though the bills the abstain from voting on still get passed. It’s all a trick designed to manufacture at least the illusion of mass consent. And as we now see, the real voting that actually counts — votes for boards of directors and for millions of unelected Executive offices and agency employees in the federal government, which the president appoints — happens behind closed doors without public consent. For the only consent needed is volunteerism. The entirely useless public vote only strengthens the delusion of servitude to these gods. To vote yes or no is to constant to that which you are voting for, no matter the outcome. Thus, a no vote or not voting at all is always counted as a consensual yes vote.

Perhaps the greatest tomfoolery we still suffer to day is the illusion that the public vote ever actually elects the president of the United States. I spent many months dissecting the electoral college process as implemented by the constitution, and attempted to explain it in a short and what I thought would be fun and entertaining documentary with a bit of facial recognition software, which today is all the rage. But, to my chagrin, I mostly received the ultimate fallacy, the ad hominem, a bad case of shoot the messenger. Try something new or different in this crowd, be prepared to be attacked. For there is little brotherly love or organization in the alternative media, just continuous insult and disorganization, the hallmark of any losing side. Try and tell those who believe they have a choice that in reality they don’t, and prepare to be pummeled with belief (faith) based nonsense and insults. But for educational purposes, and if you want to prove to anyone, including yourself, the entire fraud that is our voting system, here it is for better of for worse. This is very important to understand, for it proves without a doubt that the public vote does not count and is never used in federal elections for president. It proves not only our collective idiocracy, but also our idolatry towards candidates (men):

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We are so dumbed down that we don’t even realize that political parties are private, non-governmental associations (artificial persons), which steal our choice away from us.

POLITICAL PARTY – A number of persons united in opinion and organized in the manner usual to the then existing political parties. An unincorporated, voluntary association of persons sponsoring certain ideas of government or maintaining certain political principles or beliefs in public policies of government, not a governmental agency or instrumentality. (–Black’s Law Dictionary, 4th Edition)

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Anyone that actually goes to vote for president that has seen and understands this documentary can only be called a complete fool!

Anyone that is still a member of any political party after seeing this documentary and reading this definition should be institutionalized — oh wait, that’s what US public citizenship is! Open-air internment (prison). Political parties, not voters, decide who will be the candidates, and then the electoral college actually elects one of those party members, not you. Does this really make sense to you? Is this what you thought happens? Did you really think your vote was counted? Think again. You are not “the People,” dude! You are a common subject (plebe), not an elector (elite).

Do you actually think that President Donald Trump is not your god as a US citizenship? Silly rabbits… tricks really are for infants (wards). If you use the money and credit (property) and name and number of another, then by default you agree to and accept such a false god (creator) and its legal (false) law governing the use of that property. Like it or not, you’ve already volunteered to be a Trump supporter as a “democrat,” or for that matter, any and everyone and every party member that is president, even “socialists” or “communists.” Remember, no is yes! It is not the man but the office that is a false god, the flattering legal title (mask). It’s all fiction, remember. But you’re actions and participation make it your own virtual reality. It thus controls your actions and keeps you in the legal mindset of this legal matrix and its amoral code.

Perhaps you think that change in your pocket actually belongs to you, that you are not just a user of another’s property?

Perhaps you think that money (mammon) is not the ultimate tool of false judgement, rewarding the criminal element while obfuscating the meek and the charitable? You think the fact that everything Real and artificial being estimated into a fictional, monetary value happened naturally, as if God has a price-gun and marks all things in Nature as commercial products for sale and domination through false valuation (mammon) and inflation in man-made currency?

You think any of this is an Act of the God of Nature? If it was, then government could not control it or tax it, you fool!

You think that government controls us all, including banks, by any other tool than its own persona and money creation and retraction system to create a total welfare state? You think welfare (including pensions) are designed as anything else than to keep you exactly where you are at — middle class or abject poverty, without the power of God’s Law or self-government, and thus in complete and utter dependence and subservience to the government gods that give you your greedy allowance each month because you are to irresponsible to self-govern and do it yourself?

CAPTIO – In old English law and practice. A taking or seizure; arrest; receiving; holding of court.(Black’s Law Dictionary 4th Edition)

CLERIC – noun – A clerk or clergyman. (Webster’s 1828 Dictionary of the English Language)

CLERICUS – In old English law. A clerk or priest; a person in holy orders; a secular priesta clerk of a court. An officer of the royal household, having charge of the receipt and payment of moneys, etc… In Roman law. A minister of religion in the Christian church; an ecclesiastic or priest. A general term, including bishops, priests, deacons, and others of inferior order. Also of the amanuenses of the judges or courts of the king.(Black’s Law Dictionary 4th Edition)

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Congress, to be exact, is the creator and controller of all these functions regarding the established monetary and financial network. Contrary to the conspiratorial diatribe that floats around the alternative wavelengths and literature like a never-dissipating fart, there is no evil set of “bankers” that control government or its money. If you believe this propaganda, then the real banker that is government can easily get away with its organized crime schemes while you spend all your time looking for that which does not exist. To be clear, by law and even by reason alone, no bank or “banker” (agent) is higher in authority than government (principal), nor is such a status even possible, since that which creates a legal status cannot create such a status that is higher than itself. This is a maxim of law and again self-evident. What is lower cannot create what is higher.

Of course, it was Congress that created the “Securities and Exchange Commission” as an independent agency of government, just as it did the “Federal Reserved System.” All agencies are but government corporations created as congressional aids in the day-to-day business of government (organized crime). One simply cannot be a “banker” unless one receives permissive licensure from government to use that title and benefit to participate in the funny money (fiat) monopoly scheme that is the banking, securities, and stock exchange scam. Again, no person or man may have a status higher than government, than that which creates statuses, for government cannot grant to any man or corporation anything higher than itself. This is a self-evident limitation of all gods and magistrates, though lost on most people. And all maxims of law certainly agree, for the law never requires or allows what is impossible. In more simple terms, the creation can never be higher in status or authority than the creator/inventor. The part is never higher than the whole. The image (idol) cannot actually be greater than the Source.

But the propaganda that some shadowy bankers rule the world is sure a handy cover for the real bankers (world government congresses/legislators) to operate under the cover of public idiocracy, for without even trying they hide their operation under that which cannot exist by their own law!

I bet right now many readers are defending these so-called enemy “bankers” like they defend the central enemy called “the Fed” as they cling to their needed lies and fallacies, for it is much easier to create fictional villains that operate outside of the system than to admit that the true villains are those we ourselves pretend to vote into authority as our gods within the system. And it’s certainly much easier to elect false gods and be subject to the legal law as debt slaves than to follow the Law of Nature and be free from such monetary devices and traps. The self-governing Free man under God — the very concept this country was built upon — is today few and far between.

Just what do you think a banker is?

BANKER – noun – One who keeps a bank; one who trafficks in money, receives and remits money, negotiates bills of exchange, etc. (–Webster’s Dictionary of the English Language, 1828)

ARGENTARIUS (plural, Argentarii) – In the Roman law, a money lender or broker; a dealer in moneya banker. Argentarium, the instrument of the loan, similar to the modern word “bond” or “note.” (–Black’s Law Dictionary, 4th Edition)

ARGENTEUS – An old French coin, answering nearly to the English shilling. (–Black’s Law Dictionary, 4th Edition)

ARGENTUM – Silver; money. (–Black’s Law Dictionary, 4th Edition)

ARGENTUM ALBUM – Bullion; uncoined silver; common silver coin; silver coin worn smooth. (–Black’s Law Dictionary, 4th Edition)

ARGENTUM DEI – God’s money; God’s penny; money given as earnest in making a bargain. (–Black’s Law Dictionary, 4th Edition)

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The corruption of money and bankers is not new, and have never been separate from the church and state. They operate with license from state and forgiveness from church. Ridiculous! There is nothing new under the sun... We are still under the Roman Law as national citizens under Caesar, a word/title that also means district. Again, history hasn’t repeated, for history has no end. History is merely something we talk about as we walk upon its never-ending timeline. Today is tomorrows history. Time is money. As the Eagle’s sang, you can spend all your time making money, or you can spend all your money making time. In the end, they’re the same thing — fiction. Poor and middle class serve time for their crimes, while the wealthy elite pay money instead of giving their time. Time is a creation of man, not God (Nature), for Nature is the unchanging Existence, the God of (Existing as) the permanence of All things. Nature is priceless and timeless. And only in this timeless, priceless garden may men find peace and tranquility.

Government keeps the Fed while the Fed is designated by government to keeps all banks.

Government traffics in money, for the word traffic simply means commerce, trade, and buying and selling of market commodities, and it does so through its independent agency, the Fed, which is and always has been under the authority and law of congress without exception. Any freedoms or independence the Fed or any other agency of government has is because congress made it so. It is ridiculous to believe anything else when all the facts are presented and the shock-jocks and false profit authors are shown to be frauds.

Government is the great negotiator of bills of exchange, being the very creator of the Securities and Exchange system, the stock market, whose corporations are also creations of and under the laws of government.

You will not find a definition for banker that refers to anything but this. The only difference between a “private banker” and an “individual banker” is that the private banker (legal person) is not incorporated as a bank, and is thus merely a trafficker (commercial agent) in mammon by license of government. Both operate within the system and UNDER its laws, and both are required to report their taxable operations to government. And yes, the government is god (creator and lawmaker) of the Fed. There is no mystery here. They are not higher than that which regulates their trade. Government is the only banker (creator), and all other “bankers” fall under its purview and authority. Again, this is self-evident if for no other reason than the very financial reporting requirements we are unveiling here. All so-called “bankers” report to government in one way or the other.

Even the financial and political god “Donald Trump” files tax returns to government, for the name “Donald Trump” and its incorporated conglomerates by that same legal surname only exist inside of government (jurisdiction, corporate limit), not outside. Donald Trump, the person (legal status), simply does not exist in Nature, and neither does your person (legal status). But remember, this is all fiction. None of it is real. It just a trick. It is designed to control you. For there is only one entity in the world that is not controlled by money, and that is its creator, which is government. Money is strictly a tool to bind all men under one false, incorporated god (as a body politic). Money is debt.

The point here is that if you invest in the stock market, stop calling it anything that what it is: gambling. Quit pretending to know what you are doing, and quit pretending that if you happen to do the right thing by chance or even by strategic planning in the markets, you are doing nothing more than supporting this massive scheme to take over the entire corporate structure of the world, especially if you are a pensioner (dependent). For while you may gain some profits in money temporarily, we all lose when in the near-term future the end of these financial schemes comes to fruition and the entire world economy and all its corporation are majority owned by government and thus completely controlled by government in absolute communist style, all the while masquerading as artificial freedom and democracy (i.e. volunteerism).

In essence, pensioners are colloquially like lemmings collectively running while blindfolded towards the edge of a cliff with the rest of us commoners caught in the way, with no other place to go than down. But then, this has always been the goal of implementing a democracy into an other wise self-governing, moral nation.

Don’t like the truth?

Well, don’t shoot this messenger unless you shoot these as well:

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Democracy is the road to socialism.

—Karl Marx

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Democracy is indispensable to socialism.

Socialism is merely state-capitalist monopoly which is made to serve the interests of the whole people…”

—Vladimir Ilyich Lenin, (seperate quotes), excerpted from the pamphlet ‘The Impending Catastrophe and How to Combat it, September 1917’ as Lenin’s Collected Works, Progress Publishers, 1977, Moscow, Volume 25, from Lenin Internet Archive. 

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Dictatorship naturally arises out of democracy, and the most aggravated form of tyranny and slavery out of the most extreme liberty.”

—Plato

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A pure democracy is generally a very bad government. It is often the most tyrannical government on earth; for a multitude is often rash, and will not hear reason.”

—Noah Webster

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“Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide.

—John Adams

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“The best way to destroy the capitalist system is to debauch the currency.”

—Vladimir Ilyich Lenin

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Our program necessarily includes the propaganda of atheism.

—Vladimir Ilyich Lenin

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There are no morals in politics; there is only expedience. A scoundrel may be of use to us just because he is a scoundrel.”

—Vladimir Ilyich Lenin

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The oppressed are allowed once every few years to decide which particular representatives of the oppressing class are to represent and repress them in parliament.”

—Vladimir Ilyich Lenin

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“The best argument against democracy is a five-minute conversation with the average voter.”

—Winston Churchill

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What is the pension fund system? Democracy in action. For it is when the government and the populace figures out they can vote for themselves personal, vast riches from the public coffers that the true nature of democracy rears its ugly head. And we are watching the consequences even now, as it wastes, exhausts, and murders itself. Yet the average pensioner will sink with the ship rather than repent from that public pension welfare check, as any scoundrel would be expected to do. United we stand MY ASS!

Now, getting back to our subject at hand…

Predicting the stock market, of course, is like predicting a hurricane. Like helpless weathermen with their inept technology designed to somehow fathom the nature of what they call “chaos” (i.e. the unknowable Design of God), these self-proclaimed market gurus report with confidence bleeding into arrogance that which they have no idea is true or false information (the unknowable design of the legal gods in government finance). They attempt to analyze this completely planned, organized, and loosely controlled chaotic system as if they are on the inside — as if they are or at least somehow theosophically have the perspective of its gods. But in reality they are as caught up in the winds of random change in that storm as anyone of us that put our faith (trust) in their apparently magical, even theosophical (god-like) ability to know the direction of the unknown. Yet the chaotic flareups caused by that giant hemorrhoid of a market that keeps growing and shrinking when we least expect it has no readily apparent (public) rhyme or reason, anymore than the Wizard of Oz’s true grand master plan can be understood without revealing the man behind the curtain. Predicting that the stock market will go down (crash) or go up (boom) is like predicting that a tree will eventually grow and die. The guru uses no date, no time, and no reasoning, merely empty time frames and publicly disclosed connections smothered in fallacious logic with no apologies for being wrong in their vague forethoughts or vague timeframes, instead continuously putting forward new possibilities upon the commercial time-line presented on behalf of the latest rhetoric (and now tweets) of market propagandists, who are legally justified, protected, and encouraged to lie to the public.

To this end, we have seemingly trapped ourselves inside our own bubble of shared belief in these publicly disclosed lies. By first respecting the lies by treating them as facts, and then by publicly spreading those lies to others while promoting them as facts, the master plan behind those lies is allowed to come to fruition despite being built upon provable lies and through omission of neutralizing facts. In other words, our mutual lie factories called the mainstream and alternative media feed us not opposing lies, but lies created to suit the disposition and apparent helplessness of the audience. The logical fallacy may go something like this: the mainstream media lies, therefore the alternative media must be true, or, the puppet acting as criminal manager of a pension fund said it publicly, therefore it must be true. It’s not so much that the lie is accepted as truth as much as it is accepted as an excuse. And yet the whole concept behind these audited financial statements is very much to eliminate such public excuses. The CAFR is simply a report of the audited facts and the stated reasons behind those facts. Thus, as we will see, while this pension fund manager of CalPERS is publicly declaring near insolvency for his managed fund through omission of the comparison of any contrary fact, the CAFR says quite the opposite.

But the most horrific part about this is that the rest of us are not really surprised with each new epoch of criminal activity, extortion, and outright pilferage of what was the taxes we paid collectively for what we expected to be taxpayer services. A quick look at just the “non-governmental” investment fund totals for all governments out there, and it’s easy to feel the giant, perfectly designed screw burrowing all the way up our collective, dumb asses.

For now, let us count down the so-called “facts” as publicly presented so far…

  1. CalPERS is somehow near insolvency.
  2. A “pension fund crisis” (future doom) is apparent and seemingly inevitable.
  3. Therefore, CalPERS pension fund (and others) may need a taxpayer reform or bailout soon.
  4. This is apparently true and “confirmed” because of the public heresy spoken by a board member of CalPERS on a tweet and from other publicly spun rhetoric.

You see, while you believe that the public is merely made to bail out banks as private institutions from government when they are caught making bad investments, the truth is that the public is made to bail out government-held and proxy-vote controlled institutions of its own. It is the principal bailing out its agents through public debt, for the sole purposes of continued corporate existence (continuity of government) and to keep the shareholders (mostly government and elite) happy. Now you have the full picture. You are bailing out government’s stock position, not just those corporations, for it is law to make the shareholders profit. Can you say conflict of interest?

Before we address these fallacious fear-porn talking points as completely falsified, designed nonsense, let’s get a little more information about the reasons behind such unverified, veiled public heresy and this all around bad reporting of it. Why lie?

Continuing with the ZeroHedge publicly parroted report:

“Westly was referring to an editorial laying out “the essence” of California’s pension crisis, exposed last week when the $350 billion California Public Employees Retirement System (CalPERS) made arelatively small changein its amortization policy

Specifically, the CalPERS board voted to change the period for recouping future investment losses from 30 years to 20 years. While this may not sound like much, the bottom line is that it would require the California state government and thousands of local government agencies and school districtsto ramp up their mandatory contributions to the huge trust fund.”

As author Dan Walters observes, with client agencies – cities, particularly – already complaining that double-digit annual increases in CalPERS payments are driving some of them towards insolvency, the new policy – which kicks in next year – will raise those payments even more.

What we are trying to avoid is a situation where we have a city that is already on the brink, and applying a 20-year amortization schedule would put them over the edge,” a representative of the League of California Cities, Dane Hutchings, told the CalPERS board before its vote.”

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I dare anyone to find me a city that is actually “on the brink…” not by its public commentary (propaganda) and yearly budgetary nonsense and lack of disclosure, but based on its CAFR audit report? Anyone?

Amazingly, the whole scheme is plotted here in just a couple of sentences, and yet the public seems unable to put the pieces together…

If the reader has not put two and two together yet, you should know that when this article states that the “California state government and thousands of local government agencies and school districts” must “ramp up their mandatory contributions to the huge trust fund,” you must realize that there is only one source of funding for all of these governments — and that’s you. And me. And all other public taxes and fees paid by everyone else in every state and the nation. Yes, that’s right, your taxpayer money is placed into investment funds like this instead of being used for what you imagined it would be used for. But then, who really needs taxpayer services anyway, right? Who doesn’t want nothing for something, after all? Who doesn’t like paying for what you don’t get? And who doesn’t think it’s perfectly reasonable that local governments should bail out a pension fund when it takes a temporary loss on its gambling habits, even if it will cause them to go bankrupt?

It’s the American way…

At this point though, one would think that even the pensioners themselves, those taking benefits, money, insurance, etc. from this fund, would realize the insanity behind such a plan. But then, in the free wage-slave capitalist system, one doesn’t bite the hand that both feeds them and chokes them and their family, neighbors, and friends at the same time. The pensioner is first in line, of course, to support any excuse (public lie) that comes along so that government can extort from the rest of us to support themselves. This is the curse of mammon.

If only the pensioners themselves understood that insolvency means reorganization, and that reorganization means pension fund cuts and the decrease or death of their meager benefits. This lot of loosely organized pensioners is like a parasite that starts eating itself once all the meat and organs of the host are devoured! Not ironically, the pensioner sees him or her self no longer as a taxpayer but as a government-employed pensioner, exactly as a unionized laborer imaginarily sees him or her self as part of that communistically designed, semi-elitist club that artificially raises ones status in commercial society and feeds the ego with flattery of title and benefits unequal to all others not in or allowed to be in the club. We forget, collectively, that we are all in the same boat, paying the same taxes as subjects and hoping for a responsible, honest, and dependable government in exchange for voluntarily extorted taxes. Instead, we are turned against each other and made completely irrational, competitive, and cold-hearted, caught up in whatever mutual excuse the party, union, or group publicly supports to justify our artificial existence as its member. Their continuous flow of money-for-nothing at the expense of all others in their regular and “early” retirement is apparently more important than their support of a stable and mutually beneficial local government.

I pay taxes for potholes to be repaired. They pay taxes to support their own pensions while potholes continue to grow unchecked due to lack of taxpayer money that is instead exacted into keeping the pension fund’s appearance of future solvency based on false actuarial projections in 20-30 years.

The greatest delusion of all here is that pension funds are funded by and strictly for the employees that are members. They are not. They are globalist, governmental investment schemes that are responsible more than any other financial tool in existence for globalism and for unprecedented corporate funding of the worst possible corporations by government-controlled investments. They are a constant flow of required taxpayer money being invested into the future state of global, centralized governance of all corporations, on stock purchase at a time. The pensioner has no stake whatsoever in the funds, which is why what they invest into the pension fund is called a “contribution.” Once a contribution (gift) is made, it is not retainable. The pensioner can only hope they die before the ultimate end-game happens — the sacking of the fund due to military or corporate takeover or bankruptcy reorganization. PENSIONERS HAVE NO EQUITY IN THESE FUNDS.

To be clear, contributions to these funds are an imposition, not a right. The problem with the collective delusion of pensioners is that they don’t realize they are themselves considered as unable to care for themselves, and thus completely dependent on the system the contribute to. Dependence is certainly not in any way freedom, though they’ll sell you that it is.

IMPOSE – To levy or exact as by authority; to lay as a burden, tax, duty or charge. (–Blacks Law Dictionary, 4th Edition)

IMPOSITION – An impost; tax; contribution(–Blacks Law Dictionary, 4th Edition)

CONTRIBUTORYnounA person liable to contribute to the assets of a company which is being wound up, as being a member or (in some cases) a past member thereof. (–Webster’s Dictionary of the American Language, 1828)

CONTRIBUTORYadjectiveJoining in the promotion of a given purpose; lending assistance to the production of a given result. (–Webster’s Dictionary of the American Language, 1828)

CONTRIBUTION – In the civil law. A partition by which the creditors of an insolvent debtor divide among themselves the proceeds of his property proportionably to the amount of their respective credits. Division which is made among the heirs of the succession of the debts with which the succession is charged, according to the proportion which each is bound to bear. In common law. The sharing of a loss or payment among several. The act of any one or several of a number of co-debtors, co-sureties, etc., in reimbursing one of their number who has paid the whole debt or suffered the whole liability, each to the extent of his proportionate share(–Blacks Law Dictionary, 4th Edition)

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They take your contribution and divide it among themselves (between persons, for corporations are persons too), and in return for your blind support of their combination of globalist corporate empire, they give you a return on your blanket share and according to its value. But this return is secondary in every way to the plan itself, being only the excuse that allows them to exact from you and from I and all other taxpayers to support globalization and one world “corporate governance.” The pensioner is made to feel as a beneficiary, when in reality he or she is a victim of his or her own blind greed and unreasonable consideration of just what there pension funds really are — tools of total corporate globalization and centralization of all corporations into and under government control through stock ownership and collective shareholder proxy voting. In other words, the main collective shareholder gets to vote for whom is elected as boards of directors for all corporations worldwide. It gets to vote on whether mergers and acquisitions will or will not be allowed. And most importantly, the board it elects then appoints the CEO (president) of the company.

And so your millions and millions of individual little contributions matched and tripled by taxpayer (government-funded) contributions have indeed created such a monster that one cannot even imagine its size, for like The Matrix simulation, it represents the entire corporate structure of the world. It represents every chain-store you shop at, every bank on every corner, every investment firm, every pharmaceutical conglomerate, every car brand and dealer out there, and every war and weapons manufacturer in existence, everywhere. This mix of government and commercial corporations essentially places all citizens into a company store, where government prints the money we earn, taxes and imposes upon us what it desires, allows us to spend what’s left of that money in one of its investment-held corporations as they legally engross us all (charge outrageously high prices/commit legal usury by license), and then allow us to deposit, save, and invest any leftovers in their stock-owned and completely controlled system of international banks.

In other words, we are workers that spend our corporate-earned money in the collective company store, since all companies are not government held and governed. Thus, we are engrossed, extorted, and made to suffer all sorts of usury by such a monopoly.

If you are not familiar with how government agencies like CalPERS proxy votes in corporations, either watch my over 4 hour documentary, The Great Pension Fund Hoax, or just let CalPERS explain from its own website (active links):

Proxy Voting

As a long-term share ownerCalPERS sees voting our proxies as the primary way we can influence a company’s operations and corporate governance. This is why it’s important for shareowners to vote and make their decisions based on a full understanding of publicly available information.

For more information on CalPERS proxy voting, read the CalPERS Governance & Sustainability Principles (PDF).

Proxy Voting Decisions

To view a record of all CalPERS global proxy voting activity, visit Global Proxy Voting Decisions.

CalPERS also publishes additional voting information for high profile votes and company-specific shareowner campaigns. Visit Key Decisions for additional details. All votes are provided for informational purposes only and do not constitute investment advice.

For more information, read the related article Proxy Access Gains Ground as Companies Reach Pacts with Shareholder Proponents.

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NOTE: IF YOU UNDERSTAND THIS PROXY VOTING SYSTEM OF CORPORATE SHAREHOLDERS LIKE CALPERS, WHILE AT THE SAME TIME YOU UNDERSTAND THAT, COLLECTIVELY, ALL GOVERNMENTS ARE THE COLLECTIVE MAJORITY SHAREHOLDERS THROUGH PENSIONS AND MUTUAL FUND INVESTMENTS IN ALL CORPORATIONS, THEN YOU UNDERSTAND HOW THE ACTUAL FINANCIAL WORLD REALLY WORKS.

While no one government is a majority shareholder, when all governments pool their votes collectively through private, non-governmental associations, then as a single force governments (share-holders) become as one voice, and are when combined as shareholder proxy voters the largest by far of all institutional holders of corporate stock.  E Pluribus Unum, out of many one. So the next time you hear that congress is colloquially owned by corporations as some mainstream or alternative idiot-box news outlet talking point, you’ll laugh as you are one of the few who actually know that the opposite is true, that congress has no ownership stock to be owned, and that all corporations are staffed and operated through collective, organized, government shareholders. And so if you haven’t figured it out yet, through the illusion of competition, corporations are part of (majority share owned by) government. In other words, this spells organized crime to the fullest degree. Some might go a step further and call it socialism, or fascism. But then, this is always the hidden goal of instilling a democracy – total ownership of the commercial world by government. It’s even a plank of the Communist Manifesto, of which all ten planks have been made law in some form in the United States.

For more information, watch The Great Pension Fund Hoax, always free on Youtube and at TheCorporationNation.com

But again, I digress…

Let’s address the first glaringly obvious lie listed in the above publicly claimed list of supposedly fearful facts and talking points, at least obvious to any thinking, reasonable man (male or female) that picks up an audited financial statement to verify such publicly reported rhetoric and is able therefore to neutrally put the pieces together. First, let’s find the un-hidable truth. I’d like to point out right here that when they say that the CalPERS investment fund is currently managing $350 billion in assets, we are talking about 350,000 individual bundles of $1 million dollars. One trillion equals a million million. Can you even imagine what that would look like in your head? And so this notion of being on the brink of insolvency is almost laughable when this alone is considered. I mean, seriously, they are saying $350 billion in continuous, overall gains for the life of the fund and also insolvency in the same sentence here!

But perhaps the reader won’t comprehend the laughable obfuscation here until we uncover all the facts as to why this lie is so hilarious. Moving on…

If CalPERS has 2 million members, then at $350 billion in current assets, that means it has $175,000 extra for each member already invested, aside from its yearly costs and pension plan obligations. In other words, these funds are completely separate and have nothing to do with the budgetary requirements of this pension fund and the “contributions” it receives from members and from governments (taxpayers) shown on the budget report. And remember, this is the figure after all expenses and obligations are payed each year to each member. And this gain balance keeps getting exponentially larger each year (on average), while at the same time this board member is claiming the fund is somehow also near insolvency.

In order to understand the gross magnitude of this particular public (unofficial) lie, we must have a look at what this fund’s investment value was less than 5 short years ago before passing any judgements on its performance and possible insolvency. Again, while we can plainly see in the CAFR audit that the fund balance and valuation of the CalPERS portfolio of assets are in truth skyrocketing up and up and up on an overall yearly average, these propagandists are at the same time publicly claiming the opposite is true, that the fund is somehow insolvent. One of these facts is true, documented, and reported in the audited CAFR. One is complete heresy, backed only by artificially projected, actuarial predictions created by attorneys and accountants designed with the purpose to deceive the public and cause an excuse and justification of financial bailouts with taxpayer money. One is in an actual audited accounting while one is certainly not. Yet in the same breath, we find that this fund is being said to contain an increase in investment assets that currently stands at $350 billion while also being close to insolvency.

If you understand this, then you understand the difference between the yearly budget and the comprehensive (from the beginning) audit called the CAFR. The budget is merely an incomplete, dumbed down (public) version of the CAFR. The budget cannot be fully understood, in fact, without the CAFR, and the budget refers to the CAFR when full public disclosures are undesired. In short, the budget is in no way comprehensive, just as most publicly disclosed information is generally incomplete and designed to deceive through obfuscation and omission of all facts involved. But this is not illegal in any way, for what is comprehensive, the audit itself, is made “publicly available.” The lawmakers are the organized crime syndicate (congress) and its legion of non-governmental organizations, like the private Government Accounting Standards Board (GASB). In other words, the beneficiaries of the crime and of the fees and tax-extortion makes the rules.

But what use is published information in a dumbed down society? The constitution of the United States and of each state are also publicly available, as is the entirety of the US Code and state laws. Does that mean that most people actually know the full, comprehensive law? Does that mean the common citizenry has any idea what the constitution actually states and intends in its rhetoric? Absolutely not, as I have harshly and painfully uncovered in past endeavors. For if they (we) did, they (we) would not voluntarily be contracted in surety to a United States citizenship unless they (we) were actually insane or inept, which not ironically is exactly what such a national citizenship represents — idiocy, wardship, dependence, and a total lack of the ability to self-govern. This is not so different than membership in a pension fund — dependency on government and its law, benefits and restrictions, due to the lack of ability to self-govern ones own financial situation, which is seen by government agencies as the same form of idiocy. Like children, pensioners and employees are given monthly allowances because they could not possibly handle or responsibly manage their own full estate. Even the state lottery schemes are set up to pay its slave-minded winners in default yearly stipends while each lottery fund run by and benefiting government invests for itself the unpaid remainder (lump sum), taking for itself what would be the interest and investment returns that would have gone to the winner if he or she could handle such a  responsibility!

But they don’t teach this stuff in public school, now do they?

And yes, again, this multifaceted, duplicitous lie is perfectly legal on the public front. It is your fault if you believe the propaganda without verifying its source documentation and audit. You have no excuse, and neither do those re-reporting this crap and thus inevitably, often unwittingly and unintentionally supporting the oppositional plan behind it all.

The truth hurts… I get it. But at the same time the Truth is the only Real thing that can set anyone free. For the truth may only harm or offend those living in or protected by a lie. Is the pain worth it? In Truth, this is all nothing if not the very self-evident nature and consequence of mammon, and why this love of money (belief in the artificial valuation in money of all things) is the root of all this evil. At this point in this essay, one either accepts their own disposition as accurate (as devised by government through trickery and temptation) or one shoots the messenger for telling the Truth. The ill-informed, extorted, and victimized taxpayer or the ill-informed, exacted from, but also monetarily (artificially) rewarded pensioner… which one are you?

Or are you both? You can’t be one (a pensioner) without being the other (a taxpayer) it seems.

Now, let’s add to our list of ever growing fear-based, unsubstantiated concerns here — some true, some not so much:

  1. CalPERS is somehow publicly stated to be near insolvency.
  2. A “pension fund crisis” (doom) is apparent and seemingly inevitable.
  3. Therefore, CalPERS pension fund may need a taxpayer reform or bailout soon.
  4. This is true and “confirmed” by the public heresy spoken by a board member of CalPERS while not under oath.
  5. CapPERS investment fund value is up to around $350 billion in current assets as of this copied  tweet at , an increase from the previous fiscal year CAFR reported and audited earnings of about $25 billion so far for this fiscal year. (Note: the fiscal year for CalPERS ends June 30 each year, so that’s a $25 billion gain in less than 8 months, with four more months of performance gains to go, placing it well over or even double the projected actuarially needed investment gain expectations for the year.)
  6. Despite this, its manager claims the need to possibly recoup from previous years the investment losses from taxpayers (as government funded bailouts for bad investments), ignoring completely the good years that not only make up for it, like this current one, but completely ignoring the fact that the fund is solvent and growing by multi-billions on average every year. The goal is to never publicly reveal these positive, over-expected averages by hiding the CAFR through utter silence about its existence.
  7. Taxpayers already pay for (fund) these pensions with their taxpayer money, called as “government contributions,” listed here as “mandatory contributions,” and now they want more, even if it bankrupts local governments to do so.
  8. Because taxpayer money must be collected and used to pay for these pensions, and despite the fact that these pensions are strictly for government employees and do not benefit the vast majority (around 40 million Californians) as average, common, non-pensioned taxpayers in any way whatsoever, the local governments of all common people may go insolvent because these governments (corporations) cannot pay for their other obligations to those other 38 million or so taxpayers.
  9. To be clear, cities, counties, school districts, etc. may declare a special bankruptcy for municipal corporations because they cannot pay for pension fund contributions using taxpayer money, because the rules of the congress of the United States and of the corporate states require pre-funding of pension funds based on artificial, completely unreasonable actuarial reports by corrupt pension fund managers themselves, which are the cause of any appearance (lie) of any shortage offuture funding.

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If this last part is not clear, I would point you to my previous exposure of this idiocracy of an investment scam from several years ago, which will bring not only clarity but allow you to do the same simple research into your own local governments within their sourced CAFR audits. You can obtain a city or county CAFR online or at your local library along with the budget report, usually at the resource desk, or as a digital copy online. The amount of assets hidden from each of us by the purposefully obfuscating and inadequate yearly budget report when put in comparison to this full and comprehensive report each year is staggering to say the least. There is literally no such thing as an insolvent government in the United States, including Detroit and Stockton, when considering each governments legally required and CAFR-audited investment funds. But you won’t discover this by reading only the yearly budget, which ignores such accumulated investments returns and interest. There are instead congressional and state laws that purposefully prevent your taxpayer money from being used for taxpayer purposes, even when they are needed. Instead, our taxpayer collections are labeled as “restricted” (for limited use only) by being placed in specialized investment funds, often labeled specifically as “non-governmental” and as “enterprise” funds. The existence of these reserved investment funds is strictly for the purpose of keeping them from being used for any other taxpayer services — to keep them out of the “general fund” (used for “unrestricted” taxpayer use). There is no excuse to not use what is in the general fund, and so these many schemes, pension funds, and other non-governmental (non-taxpayer) and enterprise funds are created to cause funds in the general fund to be transferred out and into those funds that, by law, cannot be used for general purposes (i.e. taxpayer services).

Learn how to quickly spot this “legal” scheme here:

Link–>https://realitybloger.wordpress.com/2013/02/27/unmasking-the-cafr-scam-in-every-city-usa/

And if you wonder whether this author, that is, myself, is qualified to speak of such things, you can see all of my CAFR research here (many links), including my over 6 hours of documentaries on the subject entitled as The Corporation Nation Part 1 and Part 2: The Great Pension Fund Hoax:

Link–> https://realitybloger.wordpress.com/2014/01/20/cafr-school-week-on-the-corporation-nation-radio/

For our purposes, note here that the budget is in no way an official or full audit. The big difference between a basic yearly budget report and this full or “comprehensive” annual report (audit) is that while the CAFR shows everything for every past year as one continuous fund, the budget report shows only assets and liabilities and gains or losses for that particular year. And so one may use that one bad year as an artificially presented and singular public spectacle while ignoring all other average, good, or even extremely great and over-profitable years in between, in order to show falsely that, while over all the fund is incredibly successful and meeting its long-term goals, that one bad year is all they want you to see. If they can focus you on that bad year, and maybe the expected, cyclical bad year from seven years ago due to bad market conditions, thus causing you (the public) to ignore the CAFR report of all good and bad years in balanced combination, then I can cause a fear-based reaction so as to extort even more taxpayer funds while putting forward the scary publictruth (lie) that the fund is in danger of a false-insolvency in the future. Ignore that $350 billion in investments, for you see, through our trickery, it is already somehow pretended to be spent 30 years from now. Nothing to see here…

So that you may see exactly what amounts to the burden for California taxpayers to fund not only these 2 million or so members of the CalPERS system, but the 2,945 CalPERS employees and the over $1 billion paid just as “commissions and fees” to the many, many banks and fund managers involved in this globalist pension investment scheme whether this CalPERS fund wins or loses, let’s take a look at the CAFR (Audit) for both the 2012 and the 2017 fiscal year, and using the currently stated figure above, showing $350 billion in current CalPERS assets.

Firstly, here is an excerpt from one of my older blog entries. In this CAFR-verified report we read:

Press Release
July 16, 2012
External Affairs Branch

CalPERS Reports Preliminary 2011-12 Fiscal Year Performance of 1 Percent.

Real estate portfolio earns nearly 16 percent exceeding benchmark

SACRAMENTO, CA – The California Public Employees’ Retirement System (CalPERS) today reported a 1 PERCENT RETURN on investments for the 12 MONTHS that ended June 30, 2012, falling SHORT of its benchmark that returned 1.7 percent.CalPERS assets at the end of the fiscal year stood at more than $233 BILLION.

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You see, this was labeled as a “bad year,” for the fund only because it was a bad year for the never-ending stock market. This is of course on the surface a seemingly logical though completely fallacious conclusion. For let’s be clear that this CalPERS fund admittedly still gained a 1% profit after all obligations were met! That’s 1% on the over 220 billion they already possess! So they only gained in profit 2.2 billion that year. How sad for them… And so it’s not that the fund lost money or even really did poorly considering the market conditions and over $2 billion of profit it made after all expenses and obligations were paid. No, it’s only that the fund didn’t reach its actuarially (artificially) projected goal set out by purposefully deceitful accountants, attorneys, and politicians, in order to completely deceive the public and raise contributory taxes collected from all local and state governments. It made a profit, but not according to its goals. Thus they report to the public they did not meet their margins, though still gaining a fortune after all benefits and obligations are paid. So the fund publicly lost, even though it privately gained. See how that works? Imagine if you reported a loss to the IRS when in fact you obviously and without question made such a huge profit?

And trust me, the taxpayers or pensioners never get a refund for these extra gains because of the next great or outstanding year in returns, say when the gains are in the 10’s of billions. In fact, if you do the math, this fund literally has enough value listed here that it could pay benefits for 30 years as it stands, and more when considering the death statistics for current employees and retirees.

Meanwhile, on the back page of the news, thousands of California children are starving in the streets.

And so we can see that a gain is being cleverly reported as somehow being a loss. This, again, is done through the magic trick of actuarial prediction (projection). The con goes like this… Our gain is a loss because in the very far off future we predict without proof that we will use that gain of today for expenses in 30 or 40 years. Why? Because we say so. Our paid, corrupt, professional consensus of accountants and attorneys agree and have gave their paid for and therefore completely biased OPINION that within this fiscal year, in fact, instead of making an over $2 billion dollar gain in reality, the fund in fact had an imaginary future loss, which means we must consider actual gains in asset value as a current loss based on future, imaginary projections made by us. Get it?

This is the organized criminal lie called actuarial predictions. And it is what government uses in every case to hide any surplus of taxpayer monies, by sticking it all into investment funds that will pay for projected but often non-existent or revokable future expenses or bond issues, thereby declaring that those funds are unusable today for taxpayer purposes. It’s a brilliant scheme, which is why pension and other government funds are literally called as “schemes.” And this future liability compared to current asset scheme is the sole reason used to declare that governments and government pension funds are “insolvent.” It’s not just a lie, its an incredibly well laid out plan to “legally” (by their own law and license) defraud and steal from all of us while at the same time first building and then depleting these funds for their own globalist gains and total control of the majority stock and thus shareholder votes in all corporations across the globe.

This 2013 report continues by stating something very important… something that seems to be lost on or purposefully ignored by any and everyone victimized by this con game:

CalPERS 1 percent return is below the fund’s discount rate of 7.5 percent,a long-term hurdle lowered recently in response to a steady decline in inflation and as part of CalPERS routine evaluation of economic assumptions. CalPERS 20-year investment return is 7.7 percent.”

It’s important to remember that CalPERS is a long-term investor and one year of performance should not be interpreted as a signal about our ability to achieve our investment goals over the long-term,” said Henry Jones, Chair of CalPERS Investment Committee…”

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And therein lies the very root of all these fear tactics and lies. This is not a publicly made statement, for the public is not supposed to be aware of let alone read the CAFR, let alone be able to understand it and its mystery of schema and terminology. Here we can see that over 20 years, CalPERS is exactly on track with its projected earnings, attaining a 7.7 percent long-term investment return over that time period, which is .7% more than it projects as its goal for total success and indeed sweet, sweet solvency. In other words, as of this 2013 report, there is absolutely no problem whatsoever with the fund itself regarding its entire, long-term or short-term existence. The fund’s criminal mismanagement, on the other hand, is a totally different topic.

Please understand that this is the essential difference between the CAFR and the budget report. The CAFR is the audit for the life (long-term) of the fund, while the budget is merely a yearly report that excludes long-term information such as this. And it is this distinction, this exclusion of vital information, that allows them to lie and raise taxes while hoarding and hiding taxpayer monies (government funds). Obfuscation of facts is everything. As such, here we show conclusive proof in the CAFR that the fund is over-performing beyond actuarial projections, the opposite of what is being publicly reported in a public (global) con to not only raise taxes but cause insolvency in local governments, an act that will inevitably, even necessarily effect the contracts between those local governments and the CalPERS fund, meaning that contracts will be canceled or rewritten so that the pension fund can renege on its promised obligations — the very benefits paid to contributing and non-contributing retirees. The goal is not to save the pension fund, but to cause it even more profits by lowering its obligations through renegotiations with the very cities, districts, counties and other local governments the fund-board is causing to go insolvent. And you wonder why it’s called pension scheme? Same old ponzi under a different name, folks. This is the very essence of “legal” organized crime by government.

To show the purposeful and sometimes even legally (federally) required mismanagement of this pension investment fund, we need not look into the daily routines of its management team, we only need verify whether or not the actual, stated goals of CalPERS investment returns are being met on a long-term basis. If they are, and we find that this fund is still in 2018 holding on to its long-term (20 year) goal of a 7% return on investment, then we know instantly that all of this fear porn and fallacious rhetoric is a big fat budgetary (public) lie designed to cause chaos at the local and state level – a scam to raise and exact more taxpayer money for government investment funds. For remember, if a city, county, district, or other government municipal corporation declares bankruptcy (insolvency), only then can CalPERS and that local government break with its pension contracts and obligations to its members, lowering or cancelling altogether any retirement payments in the interest of becoming a solvent corporation once again.

It’s a scam, folks. It’s a scam I’ve been uncovering for 7 years! I’m going to write a whole book on the subject, perhaps including this essay. In fact, here is a primer for that book, a look at Stockton, Ca and its artificial crisis and fear of bankruptcy, as an in depth examination of the whole scene and public lies accompanying municipal bankruptcy declarations. The municipal world is indeed by a stage for actors to professionally lie.

Link:https://realitybloger.wordpress.com/2013/04/07/the-stockton-bankruptcy-lie/

If you want to understand the game, this is a very long and detailed look into the lie being perpetrated on us all, using pensions and other non-governmental funding means to declare insolvency and renege on contractual obligations to taxpayers and tax-paying pensioners. And all of this is reported every year right in the CAFR (audit) of the Stockton municipal corporation government. They don’t hide their organized crime, they report it openly. They merely don’t speak of the CAFR, so no one bothers to look. It’s the great open secret, the holy grail of government accounting, and no politician lasts long when he either discovers or speaks honestly about it in public forums.

But let’s get back to our artificial California pension problem, shall we? For we have some new facts to compare.

Here’s our list again, which we will expose as a blatant stack of lies:

  1. CalPERS is near insolvency.
  2. A “pension crisis” is apparent.
  3. CalPERS pension fund may need a reform or bailout soon.
  4. This is “confirmed” by the heresy spoken by a board member of CalPERS.
  5. CapPERS investment fund value is up to around $350 billion
  6. Despite this, it recoups investment losses from taxpayers (as government funded bailouts for bad investments).
  7. Taxpayers already pay for (fund) these pensions with taxpayer money, called as government contributions, and listed here as mandatory contributions.
  8. Because taxpayer money must be collected and used to pay for these pensions, and though these pensions for government employees benefit the vast majority (30 million) average non-pensioned taxpayers in no way whatsoever, local governments may go insolvent because they cannot pay for their other obligations to those same taxpayers.
  9. To be clear, cities, counties, school districts, etc. may go bankrupt because they cannot pay for pension fund contributions using taxpayer money.

Now let’s start a new list of that which we can confirm from the CAFR as the audited facts that completely dispute what has been lied to us in the public and parroted in the so-called news of mainstream and alternative rags:

1. CalPERS assets at the end of the fiscal year (in the 2012 CAFR) stood at more than $233 billion.
2. The CalPERS fund’s discount rate or target rate of return is  over 7.5% over a long-term or 20 year time period.
3. As of 2012, CalPERS 20-year investment return was reported in the 2012 CAFR at 7.7 percent, .2% higher than needed to meet its future obligations of today.
4. There is absolutely nothing wrong with this fund as of 2012…

At this point we should be able to take this acquired data and compare it to the most recently published CAFR (audit report) in 2017 (five years later) and according to its currently reported assets ($350 billion in 2018) so as to verify whether or not CalPERS itself is having any problems, as loosely reported by ZeroHedge and based only on quotes from its managers, whom by the way it serves well to have a misinformed public not only ignorant of the actual performance of the fund and its management, but also of the very CAFR (Audit) that would expose their blatant lies and purposeful trickery and misrepresentations.

Hint: The fund has grown by over $117 billion in its asset valuation in only 5 and a half years!

Here is a quote directly from the 2013 CAFR:

CalPERS investments rebounded with a solid net return of 13.2 percent in the 2012-13 Fiscal Year, which is WELL ABOVE our long-term annual average assumption of 7.5 percentOur 20-year average annual return is 7 6 percent, and our 30-year average is 9.4 percent.

As of June 30, 2013, net position for the Public Employees’ Retirement Fund (PERF) was $262 billion,A GAIN OF $25 BILLION over the previous 12 months.”

Hold up just a minute!

So the 30-year return is actually a whole 1.9% higher than your projected long-term goals? Holy Cow! This thing’s running smoother than a baby’s butt! Obviously this “good” year more than made up for the previous “bad” year, eh? But in the interests of obfuscation towards a public idiocracy, they only publicly used the “bad” year’s temporary results, pretending that the fund is not reaching its long-term goals by focusing attention like a magician on their left hand, only the short-term goal and losses for that one “bad” year while stealing us blind with your right hand, a fully and in fact well over-funded pension plan?

Very clever…

Yet ZeroHedge.com parrots the following “public” (unaudited) information, which stand completely opposite to and absolutely discredited by what is shown in the easy to verify CAFR audit report, if only a bit of due diligence was done before reporting such blatant lies as truths:

“Ironically, it was just a decade ago that CalPERS’ lofty equity allocation resulted in a staggering losses, and the current dead end. The trust fund lost about $100 billion in the Great Recession and never has fully recovered

Never fully recovered…? (Insert LOL here)

And what exactly does that mean? What is recovery defined as, anyway? Is the fund short a penny or billions of dollars? Or is this just absolute hogwash? What is that loss based on, exactly? Reality or fiction (actuarial predictions)? Or is this like marking up a resale product only to put it on sale for the same price it already was before its markup? Is this just the grand illusion of future liabilities erasing actual, current assets again? Of course it is…

We just read that this fund is in fact officially reported and audited to be standing far above its short and long-term targeted goals, being completely solvent. So what gives?  Something smells very fishy here, and I am confident that I need not hedge my bet that that smell is coming from the empty, unverified yet arrogantly confident rhetoric over at ZeroHedge.com and all other “news” outlets while calling it the facts.

This one’s easy. Let’s test the theory, this empty and ridiculous proposition, that the CalPERS fund lost and has not recovered 100 billion in its portfolio. For we already know that the scene is above target with its long term goals, a fact that alone disproves this lie.

But let’s simply look at the totals again…

To be clear, the fund has indeed risen since 2006, a year or two before this so-called “Great Recession” where the market was drained, monetized, and rewarded to the financial elite (organized criminals). But a “good” that more than makes up for a “bad” year or “recession” they simply don’t like to talk about. This empty statement of the CalPERS fund not being able to recover from the “Great Recession” is just a flat out lie, completely unable to be substantiated in any way, and therefore absolutely ridiculous in every way. But don’t take my word for it. Remember, look at the audit (CAFR), not the public news and dime-a-dozen websites that parrot each other as if they are primarily sourced. These sites are the very reason there is no truth in the truth movement!

From the 2006 CAFR we read:

“Fiscal year 2005-06 was a year of progress for our organization. In November 2005, we reached a milestone of $200 billion in assets. This remarkable achievement reflects our diversified investment strategy and the diligence of our investment staff…”

CalPERS in 2010 – 13.3 % increase with a $23.2 billion gain in net assets after all benefits paid.

“The California Public Employees’ Retirement System, the largest U.S. public pension, earned a 12.5 percent return in 2010, led by gains in private equity and U.S. stocks, Chief Investment Officer John Dear said.

The $228 billion pension fund earned 17.3 percent from domestic equity and 21.5 percent in alternative investments such as private equity, Dear said today. Its real-estate portfolio lost 5 percent while its fixed-income investments gained 12 percent.

(Source –> http://www.bloomberg.com/news/2011-01-20/calpers-earned-12-5-return-in-2010-chief-investment-officer-dear-says.html)

To be clear, in 2010, just 2 years after the so-called “Great Recession,” the CalPERS pension fund is showing a $28 Billion dollar gain in its asset portfolio. Yet the ZeroHedge.com report states clearly that “The trust fund lost about $100 billion in the Great Recession and never has fully recovered,” even though ZeroHedge.com in the same report shows the funds current assets for 2018 standing at #350 Billion, a well over $120 billion gain since then. What gives? How can such irresponsible reporting be accepted by these ZeroHedge.com “fans,” when such an obvious and blatant contradiction is reported in the same article? Amazing…

CalPERS  in 2011 – $41.1 billion gain in net assets after all benefits paid in just this one year.

CalPERS reports 20.7% investment return for fiscal year

“The California Public Employees Retirement System (CalPERS) reported a 20.7 percent return on investments in preliminary estimates for the one-year period that ended June 30, 2011.

This is our best annual performance in 14 years, said Rob Feckner, CalPERS Board President. For the second straight fiscal year, the Pension Fund exceeded its long-term annualized earnings target of 7.75 percent.

(Source–> http://www.opalesque.com/IndustryUpdates/1880/CalPERS_reports_investment_return_for_fiscal_year188.html)

In the 2016 CAFR, we read also that:

CalPERS investments rebounded with a solid net return of 13.2 percent in the 2012-13 Fiscal Year, which is WELL ABOVE our long-term annual average assumption of 7.5 percent.–Page 4

It’s all about balance, you see? Little reported good years are the cure for over-reported bad years, and there are many more good years than bad years. In fact, it’s so good that CalPERS nest egg has met and overreached all of its long-term goals, despite the open lies (public statements) it tells the public. All one needs to understand is within these audited CAFRs FOR EVERY GOVERNMENT CORPORATION!

But let’s go a step farther here. Let’s look at the 2017 result for the CalPERS fund as quoted in its CAFR (required audit). Here’s the opening statement by its controller to its corporate board:

“November 16, 2017

“Members of the CalPERS Board of Administration:

“I am pleased to present the California Public Employees’ Retirement System (CalPERS or the System) Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2017.

“Since coming to CalPERS as the new CEO in October 2016, I have focused on ensuring the LONG-TERM sustainability of the System. During this past fiscal year, we took a number of important steps to strengthen the Public Employees’ Retirement Fund (PERF) and move toward our overall goal of fully funding pension benefits promised to members.

With that goal in mind, I’m pleased to report that as the financial markets have improved, so have our assets. Our investment assets increased by more than $24 billion and stood at $326 billion as of June 30, 2017, compared with $302 billion as of June 30, 2016. The PERF realized a strong 11.2 percent overall net return on investments in Fiscal Year 2016-17 primarily due to the strong performance of financial markets. Our public equity investments had a 19.6 percent net return, followed by a double-digit return of 13.9 percent for private equity investments, and a 7.4 percent return in real assets.”

Oops! That sounds like a good year! Shhhhh! Don’t talk about it to the plebes…

At this point, the reader of this should be extremely pissed off. I mean out of control, torches and pitchforks pissed. But for some reason all I see is calm. Unfortunately, I cannot explain this phenomenon within the confines of this essay, other than to say the Music Man has sold us instruments without teaching us to play them, though we continue to believe we know. Perhaps if we get band uniforms?

Let’s not forget that the beginning of this so-called “news” report (above) shows current totals for 2018 standing at over $350 billion. I remind you that this is up about $48 billion in profit from just 2016 totals, which is less than 2 years. Does that sound like insolvency to you? Where’s the crisis? Where’s the source of all this fear?

Oh, right. There isn’t any. But the board can use government-only accounting principles and future actuarial projections of artificial debt to cause todays profits to just disappear from the balance sheet, which is what we then see on the stripped-down, dumbed-down, yearly budget report. But remember, the individual year means nothing. Just like all of you, at least I hope, you have some savings and/or investments, even your precious gold and silver, to offset these few bad years. The very fact that you have a surplus is the whole point here.

Because so does government! A massive one. And that’s why it invests in so much debt. Debt is not liquid. It can’t be used for taxpayer services. It’s restricted, as are its returns. To invest in debt is to invest in future assets not ready-at-hand today. Thus, as I’ve reported so often in the past, each government invests in each others’ debts, carries loans, and buys up all the toxic debt both public and private it can. To the average goyim citizen, this sounds insane. But ask most billionaires what they invested in to become the billionaires they are, and the answer will most often be “debt.” Government is a collective debt broker, debt investor, and debt forgiver all in one, running debt prisons under private-contract management for all of us credit-hungry morons in the public purview.

But don’t take my word for it, listen to the Donald himself, here with author of Rich Dad Poor Dad, where Trump says it like it is and hints to you how he made his fortune, just like the scheme that all government agencies and elite continue to practice:

–=–


“Debt is a great thing, and to be big and to be very successful,
debt is a very useful weapon.”
–Donald Trump, 2010

–=–

Yep, that’s your hero president showing his true, cowardly, feudalistic colors, a false god of gods. That hair must contain magic properties or something…

This form of passive income, the income earned by interest on future debt payments, is what makes or breaks these tycoons and sycophants both in and out of government. Debt is of course a massive tool and hiding place for taxpayer money for pension funds and other government investments on a global scale.

Why? Because investments stuck in future debt cannot be spent today, not until the payments are made on each debt contract, which often barely covers the interest charged. Liquidity is avoided so as to obfuscate taxpayer liabilities. Meanwhile, the interest payments keep pouring in, some even interest only, to the holder of all these loans and debt instruments. And the main holder of debt is government. Perhaps you’ve heard that most of the Social Security fund investments are held through debt instruments? And perhaps you think this is a bad thing? Silly debtor, tricks aren’t just for kids! They’re G-R-E-A-T! Just not for you…

To put this into perspective, while the wealthy elite and government fund managers teach the public through education, entertainment, and outrageously immoral custom to pay our debts at any cost, even towards our own financial well-being, these guys are getting stinking rich off being the holders of the public’s debt. Conflict of interest, perhaps? Of course it is. The entire financial system and its players are a cornucopia of conflicting interests. What exactly do you think organized crime is but the working hand in hand of those who have conflicting interest, hidden behind the publicly displayed illusion of competition?

And all they have to do is passively wait for the payments to come in every month from a completely illiterate, indebted public while they play the moral agents instructing us from birth to be good debt-slaves, to pay our debts, and to respect the authority behind those debts. While they greedily love, purchase, and worship all other’s debt, we the debt-slaves are indoctrinated to despise it and believe that our morality depends upon continuing to struggle to pay the ultimately un-payable interest and fees, as if this will bring financial freedom. We forget that as part of the public, we are under the collective burden of public debt and required to perform accordingly as citizens, while at the same time we are convinced that no personal debt equals freedom. It’s a cosmic, global joke on each of us, since we never seem to understand that we are the punchline. Yet the real version of such personally debt-free financial freedom literally requires exactly what they have created, a completely indebted public brainwashed to pay perpetual (passive) interest payments to fat cats that do nothing but purchase debt contracts (as financial instruments) for profit and passively reap that interest over many years. This is so-called financial freedom (franchise) — the financial enslavement of as many others as possible, sold to the public with a bit of hope that one day (probably in old age) you too can  be personally debt free. But your public (performance) debt can never be paid any more than a puppet can perform without its strings.

The income potential here as a debt-contract holder has no limits, except of course what government itself, as the main investor in these same debt securities and other financial instruments, loans, bonds, and mortgages, set and regulate for itself. This, of course, is the ultimate conflict of interest. And public and private pension funds as well as these collective governments in general, are in fact the main investors in all of these toxic and non-toxic debt instruments. They then “legally” combine them, bundle them, sell them, bet on them, use them as collateral, and even give them fancy names. But most important to our topic… they use them exactly as Trump described — as great, financial weapons against all of us.

Perhaps that’s why the call them mortgages. Mort (dead) engagement (pledge). A mortgage is defined as a dead pledge. Of course it is, because the mort-gage is not actually attached to the home. It’s a promise to pay, nothing more. And guess who is the largest investor in mortgage debt and toxic mortgage securities? You got it. Collective government through pension fund and other investment schemes.

If you’d like to see what CalPERS invests in this category, take a look at its investment report again. You’ll be amazed…

And you wonder why Trump is president? The United States is a business, man. It’s just commerce, silly! And your very civil life is an actuarial commercial projection in a fictional commercial district that cons, extorts, exacts, engrosses, taxes, and uses (employs) you at every step.

Now, let us do some quick calculations to see what the numbers above actually represent, when these last few years are accounted for as one continuous fund balance, as shown in the CAFR, where the good years and the bad years are balanced over the total, long-term existence (legal life) of the fund.

In essence, the fund has gained in value from 2013 (a good year), when it stood at $262 billion, and in 2018 the CalPERS portfolio now reportedly stands at $350 billion in its investment value. A bit of simple math means that this fund has had an increase in value since 2013 fiscal year of approximately $88 billion dollars and counting in just this five year period. That works out to be an average of about $17.6 billion gain per year! And remember, this is the amount after all obligations, fees, salaries, and all the other organized criminal activity is paid off.

But does $17.6 billion a year average from this starting point of 2013 cover the goal of a 7.0 growth rate in investment return to meet the long-term (20-year) artificial goals?

Well, 7.0% of the 2013 valuation of the fund ($262 billion) would be, according to my basic, handy-dandy calculator, exactly $18.34 billion. In other words, every year, the stock of corporations and valuation (in mammon) of other combined investments has to magically create an extra revaluation out of thin air of over $18.34 billion dollars in order for CalPERS to meet its artificially projected, actuarial-based (i.e. out of thin air, bullshit) goals.

OMG! This means that the actuarial (out of thin air) projections are off by over 700 million dollars! The sky must certainly be falling!

But wait a minute. This is just a snapshot of 5 years, not 20, or 30 years.

If I look again, I can see that the fund made a $24 billion gain just in 2017, which represents, as the report clearly states: “a strong 11.2 percent overall net return on investments in Fiscal Year 2016-17 primarily due to the strong performance of financial markets.”

  • “The Public Employees’ Retirement Fund (PERF) realized a money-weighted rate of return (MWRR) of 11.2 percent in Fiscal Year 2016-17 resulting from positive performance across most globally diversified asset classes. Drivers of the PERF’s investment return include strong performances from public equity, private equity and real assets investments. Additionally, fixed income and liquidity asset classes outperformed their respective benchmarks.–Page 20
  • Net investment income increased from $1.4 billion in Fiscal Year 2015-16 to $33.0 billion in Fiscal Year 2016-17, as returns were higher due to strengthened market conditions.” –Page 22
  • The PERF net position increased by $27.8 billion or 9.3 percent compared with the prior year primarily due to favorable market conditions.”  –Page 22

–=–

Well now, that’s a whole 4.2% over the target year goal, now isn’t it? So this was apparently one of those extra good years we aren’t supposed to talk about in the news, right? It messes up the fear equation of only looking at the bad ones.

As a side note, I want people to understand what is happening here. The entire success or failure of these pension funds around the world relies on the stock market. Therefore, they rely on the continuous growth of that stock market worldwide. This means ALL SECTORS must grow, inducing military weapons manufacturing for the profitable war machine and illegal arms sales by our government to its enemies. This means Monsanto and other companies must grow, which means all food must be patented through genetic reorganization and modification, so that the stock can have some legitimate avenue to also artificially grow and cause inflation and other side effects of patenting and monopolization of basic, God-given necessities. And the list goes on. For this pension to grow, so too must corporations, at what is approaching an exponential rate that, while sustainable for the growing pension fund, is wholly unnatural for this polluted earth and its poisoned people. This means more pointless pollution, more waste, more consumption, more credit (debt), and thus more poverty and class division — all in the name of profiteering from corporate investments. This means an unfathomable expansion in the valuation of the money supply — not just the worship of it, but the incremental construction and reinforcement of this system of mammon.

Oh, and by the way, it is actuarially speaking in the best interest of the “plan” that you die at an early age, so that you don’t collect on your retirement benefits. Not ironically, pension funds of course hold huge investments in the pharmaceutical, medical, and food production corporations that will very likely get that actuarially projected job of murder by injection and poisoned food and water intake done, through what these fund managers call and keep as its non-industrial death statistics. It’s sorta like racially motivated genocide, but for age-related funding liability purposes. So it’s pretty much like we are all “contributing” to your own necessarily planned and organized, unnatural demise.

Incidentally though, you’ll be happy to know that “industrial deaths” are extremely low. After all, we don’t want our wage slaves dying until after they retire or get too old to work. It’s not ironic at all that the word retire is a synonym for death, now is it?

To be clear, this thing was designed to fail and thus doomed to fail from the beginning, as any such uncontrollable cancer that grows to live will eventually deplete its resources like a parasite and finally outgrow and kill its host’s ability to keep it alive — just like any ponzi scheme is so designed.

At the very least ZeroHedge.com has figured this part of the game out:

“Last In December we also reported that the increasingly panicked fund, decided to boost its stock allocation to 50% in order to raise its FUTURE LIABILITY discount rate to 7%, as any reduction in stock allocations would also lead to a lower discount rate which in turn which would require more contributions from cities, towns, school districts, etc. and could bring the whole ponzi crashing down. Amusingly, one Calpers board member argued to raise the equity allocation even higher, to 60%, so that the discount rate was greater than the current 7% in order to make the books appears “better.”

–=–

No comment on the grammar, since I self-edit. But come on!

You see, the pieces are all there, but the author of this report just hasn’t put them together because he isn’t looking at the source (CAFR). It’s all about appearances. Form without substance, as any lie is built upon. It sounds good. It causes fear, and that’s all that matters. But think about it, if they can raise the discount rate by just manually altering the actuarial projections of what will be future liabilities, and can cause the books appear better than they are by the same method, then we instantly know the whole thing is a lie. We know instantly that they are fudging the actuarial numbers in an effort to hide current assets and massive gains for the fund for the sole purpose of extracting even more “contributions” from taxpayers, through mandatory funding of governmental pensions by cities, counties, districts, states, etc.

The ZeroHedge.com author at least gets it right here when he refers to the psychopathy and sophistry of the average pensioner in defense of that which feeds or will feed their passive lives and incomes based on bankrupting their own local and state governments, where he states:

“However, the CalPERS board, dominated by public employee organizations and sympathetic politicians, has spurned such pleas: it is almost as if, once promised generous retirement benefitspublic workers would rather take the entire system down, than see their own pensions reduced, even modestly.

–=–

Again, this attitude of the average pensioner is a parasitic, even narcasistic mentality. It is best described as the opinion of a completely dependent wage-slave that knows not or callously dismisses the burden he puts on others to fulfill  his goals. The hardest thing for a pensioner to hear is that pensions are nothing but welfare for the middle class, and that to fulfill these pension schemes just for federal employees, cost taxpayers nationally over $1 trillion dollars, more than even the taxes for education.

For the harsh truth, see my essay on the welfare system itself as compared to pensioners, whom even as they receive their taxpayer funded, passive retirement (welfare) checks each month, are the loudest criers of “foul” towards the extremely underfunded and relatively tiny public taxpayer funds used to support the actual “Welfare system” in the United States. It’s shocking to see and compare these statistics, and is certainly a destruction of any egotistic, fallacious arguments made by pensioners and fund managers:

Link–>https://realitybloger.wordpress.com/2013/04/21/public-pensions-welfare-for-the-middle-class/

It’s a simple equation, really, that anything that must grow to survive will eventually overgrow its available resources, and thus must be destroyed or allowed to destroy that which feeds it. It’s your basic parasite/host model, really, with accountants, attorneys, and brokers leading the charge. And so the fear porn we are seeing now is more to nip this exponential, actuarially projected growth in the butt before it actually begins to cause a serious problem and expose pensions for the scam (scheme) they are. And so they will suck this fund dry and leave all of us out to dry, pensioners and taxpayers alike. We are all the unwitting victims of this ponzi scheme, and bankruptcy is the most logical and “legally” legitimate move they can make. But remember, de facto means illegitimate, and that’s what our United States and State governments are as municipal corporations. So we shouldn’t be at all surprised.

And that makes me wonder if the CAFR tells us wether or not the 20-year goal is still over its projected target, which would mean all of this fear is for nought!

Well of course it does:

SOLVENCY TEST

“Exhibit B, Funding Progress — Solvency Test, demonstrates System solvency as measured using the System’s own assumptions and liability calculation methods.–Page 119

So the fund is quite solvent after all. What a shocker…

Where’s this information in your many fearful reports and warnings, Mr. Zero Hedge, and for that matter every other news outlet that supports this artificial, nihilistic pension scheme propaganda?

But how does this possibly compute, considering our CalPERS board member is blathering and waxing philosophically quite the opposite in his public account (lies), that the fund is inexplicably, dangerously close to insolvency and that we should all be very, very afraid?

What kind of test is this inside, system-wide “solvency test” anyway?

From the CAFR:

“A short-term solvency test is one means of checking a system’s funding progress. In a short-term solvency test, the plan’s present assets (investments and cash) are compared with 1) member contributions on deposit, 2) the liabilities for future benefits to persons who have retired or terminated, and 3) the liabilities for projected benefits for service already rendered by active members. In a system that employs level contribution rate financing, the liabilities for member contributions on deposit (liability 1) and the liabilities for future benefits to present retirees (liability 2) will be fully covered by present assets, except in rare circumstances.”

“In addition, the liabilities for service already rendered by members (liability 3) will be partially covered by the remainder of present assets. Generally, if the System has been using level contribution rate financing, the funded portion of liability 3 will increase over time.” –Page 121

So according to the audited reporting of current assets, that is, when current assets are taken into consideration instead of being magically ignored, then suddenly everything is right as rain.

For the 10 or so years I’ve been following this particular pension fund, I now can report that I have seen it grow by over $120 billion dollars. And yet all the while its agents have stated time and again that somehow the fund is also, at the same time it grows, dangerously close to being a problem. As I uncovered above and in my previous research on this blog, it’s actually a really simple concept. Just hide what assets you have today by claiming that they magically disappear when considering the debts of tomorrow. But only government can do this type of quirky accounting. Imagine if you told the IRS that the $60,000 dollars you earned as your paycheck couldn’t be counted as assets today because of all your future payments you’ll have to make on your home, car, and kids college fund over the next twenty or thirty years. Well, that’s exactly what government gets to do with its actuarial projective nonsense. Its law is its own. It’s all about balance… that is balancing billions and billions of dollars today by pre-spending them as future liabilities.

You can read all about this little trick here:

It’s not like this is the first time, nor will it be the last, that the accounting gurus at CalPERS use the bad year scenario to try and ramrod even more mandatory contributions and the false flag fear of insolvency down the publics throat.

In fact, I started my article out with exactly this same scenario back in 2013, when the newspaper rags were reporting exactly what this present article is demonstrating. This is called predictive programming. There is no surprise. They did exactly what they warned they would do, using these same fear tactics back then.

Here’s my blog from 2013:

USA Today put out the following story in 2012, which was of course originally printed from the false-news clearing house, Associated Press (AP):

“SACRAMENTO, Calif. – The nation’s largest public pension fund collected a dismal 1% annual return on its investments, a figure far short of projections that will likely bring pressure on California’s state and local governments to contribute more money, officials said Monday.

The return reported by the California Public Employees’ Retirement System was well below its projected return of 7.5% for the fiscal year that ended June 30.

The investment returns are critical BECAUSE TAXPAYERS ARE ON THE HOOK FOR THE DIFFERENCE if the pension funds fail to meet their performance targets.

The last 12 months were a challenging period for all investors as the ongoing European debt crisis and slowing global economic growth increased market volatility and reduced equity returns,” said chief investment officer Joe Dear. “It’s a clear reminder that we must remain focused on performance, risk and internal controls in today’s financial environment.”

The fund was most impacted by a negative -7% return on global equities. Half the pension’s assets are in equities, Dear said.

The fund, known as CalPERS, runs a $234 billion pension system for more than 1.6 million state employees, school employees and local government workers…”

–=–

In this first three paragraphs we can see the entire scam (scheme) spelled out in front of us, as told from a master story-teller who is trying to sell sunglasses to a blind man. But even a blind man should be able to read between the lines here…

So far, we have learned that the CalPERS Pension fund has earned a 1% increase in its investment portfolio, which for this now past year would have been over $2.2 billion dollar in gains on investments. Yes, that’s $2,200,000,000 when spelled out properly. And this is of course reported as bad news!

–=–

Sound familiar? Same scary pig, different scary lipstick. Same rhetoric, same threats, same lies.

And gee, look what happened. Exactly what they predictively programmed us would happen. Local governments ended up paying more taxpayer money to the pensions instead of to taxpayer services as it should. All this because pensioners don’t fund their own retirement, and instead rely on all of us to keep them comfy as they do nothing but expect more salary in retirement than most taxpayers make while working. Isn’t that nice.

Hey, dummy, it was planned this way from the beginning!

Never forget, this is organized crime, disguised as legitimate government.

When you lose they win. When you win, they win.

In another 5 or 6 years we will look back at this “news” report and have a good laugh again at how we were predictively programmed as to what would happen and did nothing to stop it. And the fund will probably be up to over $400 billion by then, even as we will find board its members still claim to be in fear of insolvency, while we find ourselves in the middle of the largest collective local governments bankruptcy scheme in history, while these pensioners find themselves up shit creak without a paddle or toilet paper.

What was it that Samuel Johnson defined pensioners as back in the pre-United States corporation 1700’s?

PENSIONAn allowance made to any one without an equivalent. In England, it is generally understood to mean pay given to a state hireling for treason to his country. (Samuel Johnson’s Dictionary of the English Language, 1755)

–=–

Could extortion and exaction of taxpayer money from all the resident, common people in each territorial State as citizenships of the nation to pay for all state hireling pensioners retirement benefits be considered as treason to ones country? I’ll leave you to decide that one. {Hint: your country is your State (land) and people thereof, not your nation (district), though they call the nation colloquially as “the state.” And all local and state governments are under federal (national) law and funding. You do the math.}

In the notes to financial statements section we find some pieces of the root cause of what in public appears to be some issues with the fund, but in reality (when audited) we find they are all just made up actuarial projections and unnecessary contractual obligations.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates

RISKS AND UNCERTAINTIES

…The total pension liabilities and net pension liabilities disclosed in Note 8 to the Basic Financial Statements for the cost-sharing multiple-employer and single-employer defined benefit pension plans are measured based on certain assumptions, including the long-term rate of return on pension investmentsinflation ratesand employee demographicsall of which are subject to change

Due to uncertainties inherent in the estimations and assumptions processes described in this section, it is at least reasonably possible that changes in these estimates and assumptions in the near term would be material to the financial statements

Upon initial investment with a general partnerCalPERS commits to a certain funding level for the duration of the contract. At will, partners may request that CalPERS fund a portion of this amount.

TOTAL ADMINISTRATIVE EXPENSES — ALL FUNDS: $818,667,000

Total Management Fees: $513,556,000

Total Management and Performance Fees: $598,795,000

Total Consultant and Professional Services Expenses $331,645

–=–

Did I mention that all these banks, brokerage houses, and other “administrative” and “management” corporations are also stock-owned corporations held by this very pension fund? This gets ridiculous after a while… and predictable.

So let’s put this into the proper long-term perspective, which is the whole point of this integral CAFR auditing report system:

In 2017, local and state governments paid $12.4 billion in “mandatory contributions” from taxpayer money into just the fiduciary funds of this one government pension scheme (Page 40 of 2017 CalPERS CAFR), which was increased around $10 billion from just the previous year!

Now lets compare this number, which represents non-pensioner taxpayer money from ALL Californian residents (taxpayers) as government contributions to this one fund, to the reported budget deficit (another lie when researched in the CAFR) reportedly suffered by California taxpayer base. Could there possibly be a correlation? LOL!

How can taxpayers sit back and watch as the same amounts they are paying to fund pension funds are causing, at the same time, the budget report to be short by that same amount or more? This is group insanity.

Here is yet another very recent example of this completely fallacious and unchecked, unverified fear porn being pushed to support this false flag bankruptcy scam and bailout of a well-over-funded pension plans. Nowhere, of course, is the CAFR mentioned within this article. Notice right off that it states pensions are under water by $1.4 trillion, even while our CalPERS alone reports assets that equal almost 30% of 1.4 trillion. There are thousands of public pension plans across the United States, big and small, and all of them are as successful as CalPERS because they all are essentially required to invest the same. So where is this great flood and crisis? It simply does’t exist.

America’s Sinking Public Pension Plans Are Now $1.4 Trillion Underwater

Taxpayer contributions to pension plans have doubled in the past decade, but pension debt continues to increase.

After several years of steady investment growth and higher contributions from taxpayers,most of America’s public sector pension plans are still awash in red ink.

(**Authors note: this is a totally contradicting statement! We are highly successful but also a failure. LOL!)

According to a new reportfrom the Pew Charitable Trusts, the states collectively carry more than $1.4 trillion in pension debt—and only four states have at least 90 percent of the assets necessary to meet their long-term obligations to retirees. The Pew paper, which is based on states’ 2016 financial reports, shows that pension debt increased by about $295 billion since the previous year, making 2016 the 15th consecutive year in which state-level pension debt increased.

(**Authors note: Yet according to those CAFR’s this is a completely impossible statement… unless the problem isn’t the massive profits and gains, but that the actuarial reporting and projections are where the whole scam exists. It matters not how much they make, the accountants can always make their projections higher than their profit model. In this way, we will never see any recovery, because even though it has already fully recovered, they can change their actuaries to show the opposite. In other words, you, the taxpayers, can’t win. This is ultimate corruption.)

The really scary part is that pension debt keeps increasing despite the fact that taxpayers’ contributions to state-level pension plans have doubled as a share of state revenue in the past decade. Also worrisome: Pension plans are chasing increasingly risky investments. The gap between returns on safe investments and state pension plan investment assumptions was the highest in decades, the Pew researchers note, leaving pensions more vulnerable to market volatility and raising concerns that another downturn could drive already deeply indebted systems over a cliff.

(**Authors note: Key word: SCARY! But untrue, just the same. Pension debt does not keep increasing, obviously, because these profits reported in the CAFR are after all obligations are paid. There is only actuarial false projections that cannot be met, made completely out of thin air without reference to reality, that causes the appearance of debt 30 years in the future. Today, however, there is absolutely zero debt, or there would be no profits and gains over that which the fund is obligated to pay out as liabilities each year. This is all a big fat lie based on creative accounting tricks — the hiding of current, tangible assets with the projection of future debts that do not exist today and that will not be paid (amortization schedule) for 30 years! Now imagine again if you told the IRS that you cannot pay them today because you will have to pay them way in the future, which counts against your assets today? You’d be put in jail for fraud! To be clear, the system is not indebted, but the opposite, it is the holder of others debt instruments as a profit model.)

Higher contributions from taxpayers and good returns in the market should bring well-structured pension plans back to good health. But only four states—New York, South Dakota, Tennessee, and Wisconsin—have at least 90 percent of the necessary assets to cover their retirement liabilities, Pew says.

(**Authors note: At this point, they are just talking out of their ass, with nothing backing up their statements but the lies they create.)

There are two problems here. One is embedded in the very design of public sector pension plans. The other involves the politicians who are trusted to keep those plans funded properly….

(**Authors note: Finally, something everyone can agree on!)

The systemic problem is that pension plans generally assume unrealistic investment returns…

Of course, every dollar spend on public pensions is a dollar that state’s can’t spend on roads, schools, or anything else

Removing politicians from the equation is a major benefit of transitioning away from traditional defined benefit pension plans and into 401(k)-style plans where individual workers control their retirement accounts. That also helps get taxpayers off the hook for having to make up the difference when markets or political will falls short of pension plans’ expectations.

But for now, taxpayers will continue to pay more to finance public sector workers’ retirements—and another recession could be a catastrophic blow for all involved.

Link–>https://reason.com/r/1vvc

 

–=–

The Pew Research Center was founded originally as the Times Mirror Company, a newspaper conglomerate, and thus a corporation that is majority owned by stock investment by government. Round and round… you get the picture.

There is a maxim of law that applies to each of us, at every moment of every day, and especially to this scheme happening right out in the open.

–=–

“Let him who wishes to be deceived, be deceived.”

–Qui vult decipi, decipiatur. (–Black’s Law Dictionary, 4th Edition)

–=–

“One cannot complain of having been deceived when he knew the fact and gave his consent.”

–Nemo videtur fraudare eos qui sciunt, et consentiunt. Dig. 50, 17, 145. (–Black’s Law Dictionary, 4th Edition)

–=–

 “He is not deceived who knows himself to be deceived.”

–Non decipitur qui scit se decipi. 5 co. 60. (–Black’s Law Dictionary, 4th Edition)

–=–

Now you know, but knowing is only half the battle, as G. I. Joe reminds us.

We are deceived not merely through trickery and word (and number) magic, but because most of us are happy in our deceit — happy because we have not foreseen the consequences of our purposeful ignorance and inaction.

Now I could go on and on rehashing what I’ve already reported in my countless CAFR articles, movies, and radio shows, but there is really no point. If you don’t get it after this, then you simply won’t ever get it.

Here at the end is where people ask for solutions. I tell them time and again there is no such thing in the legal world, and that the word solution means one and only one thing — the end of contract. This global takeover will not be fixed from within their own system that they control and make the law over, and it will not be solved by you or any other contracted citizenship acting in the property (person) of government. It will only stop when you stop respecting it, stop contracting with its agents, stop using its money (property) and relishing in its debt, stop preforming under its contractual law of citizenship, and start self-governing without such artificial means, the only means that governments can provide.

Globalism is upon us, and I have just laid out its financial and control-grid blueprint and why each of us is personally responsible for making it happen. It cannot be defeated, for it is not ours to defeat or change. But it can be avoided, as can national and global citizenship, the digital ID in the virtual world of this coming Beast system. One thing is for sure, their network of financial enslavement will never die until the common citizenry stop allowing themselves to be deceived by it, stop participating in it, and most importantly, stop respecting any value whatsoever in its currencies, stocks, and instruments.

I won’t hold my breath…

Hell, I can’t even get an interview anymore, for no-one wants to hear the truth.

And so I leave this wealth of knowledge and collective research is here for posterity, so that someone may know that at least there were some that tried to change the course of these gods. But alas, Huxley’s Brave New World model shines true, so I think I’ll just grab a bong and a lawn chair and watch the shitshow play out.

See you on the other side, if you figure out the code.

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–Clint < richard-son (Realitybloger.wordpress.com)
–Friday, May 11th, 2018

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Previously left comments copied here:

  1. Everything is backwards

    /  April 21, 2018  /  Edit

    What a fantastic article! Scary as hell. I have know about the retirement scheme for some time (CalPers). Anyone who doesn’t take this seriously and protect themselves are fools. Thank you for your research and time. I will post of FB, and send email in Sacramento.

    Reply

  2. Wonder Ann

    /  April 21, 2018  /  Edit

    thank you for this document which shows more of the fraud and theft against the government employees of CA. There is a video on youtube about the actual way that the CalPERS is rigged to hid the excess money from the pensioners. It is about 3-4 hours of detailed evidence of the fraud.

  3. Maxx

    /  April 23, 2018  /  Edit

    After much reflection on over 25 years of “trying to wake people up” Ive decided that %90 of Americans, of all races are “autistic” (too medically/neurologically damaged) and will never understand the predicament they are in. In other words we are talking to brick walls.

    • Everything is backwards

      /  April 23, 2018  /  Edit

      Thank you for your comment. You are absolutely correct. I’m seeing it, but didn’t know quite how to say it.

  4. tonyj1947@gmail.com

    /  April 24, 2018  /  Edit

    What I mentioned a little while ago. Have a look when you’ve some time to use up

    From me

  5. Randy

    /  May 8, 2018  /  Edit

    http://gasb.org/cs/ContentServer?c=Page&cid=1176156669308&d=&pagename=GASB%2FPage%2FGASBSectionPage

    Hey Clint I was just reading some of this and one thing for sure the proof of the coverup or hiding of the our money is all laid out for us. we just got to figure out how to get the zombified people of this country to do anything! you’ve probably already seen this stuff, but please keep up the good work. and man I know you got to be burnt out on this stuff, it is exhausting Ive been into this “truth” crap for about 25 years now and it can kinda make’s you numb. thank you.

    • Randy

      /  May 8, 2018  /  Edit

      sorry i forgot to title that comment , history of the accounting standards to help cover up and hide the theft of our money in cafr’s

  • GET THE BOOK! CLICK HERE:

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CAFR School Week On The Corporation Nation Radio


For those interested in the subject of the Comprehensive Annual Financial Report (CAFR) of government (in any country or nation), I’ll be doing an extensive in depth history of and explanation of governments audited financial statements. I’ll take phone calls with questions about your own individual line items and balance sheets and help with your comprehension of the terms used in this organized criminal “creative accounting” fraud.

————————————————————————————————

Tune in to The Corporation Nation radio show
this Monday, Tuesday, and Wednesday for CAFR School!!!

Mon-Fri
5-7 Pacific
8-10 Eastern

Listen live!
http://republicbroadcasting.org/

Call in: (800) 313 – 9443

Commercial Free Radio Archives
http://corporationnationradioarchives.wordpress.com/

Also On Youtube
http://www.youtube.com/user/cnrarchives

Shows will be posted here!

CAFR SCHOOL Part 1 –

Download –> http://corporationnationradioarchives.files.wordpress.com/2014/01/show61_jan20.mp3

CAFR SCHOOL Part 2 –

Download –> http://corporationnationradioarchives.files.wordpress.com/2014/01/show62_jan21.mp3

CAFR SCHOOL Part 3 – coming soon!

————————————————————————————————–

The following are links to study materials and films from all my previous research posted to this blog, some of which I’ll be using for the show. Here lies an immerse learning library representing my now greying hair!

Government’s Conflict Of Interest
https://realitybloger.wordpress.com/2011/05/06/why/

U.S. Government In Debt To Itself
https://realitybloger.wordpress.com/2012/02/02/u-s-government-in-debt-to-itself/

Unmasking The CAFR Scam In Every City, USA
https://realitybloger.wordpress.com/2013/02/27/unmasking-the-cafr-scam-in-every-city-usa/

CAFR Investment Scheme In The United Kingdom
https://realitybloger.wordpress.com/2013/03/04/cafr-investment-scheme-in-the-united-kingdom/

The World CAFR Accounting System
https://realitybloger.wordpress.com/2011/12/22/the-world-cafr-system/

CAFR SCHOOL: How Corporations Are Funded By Taxpayers
https://realitybloger.wordpress.com/2012/07/10/cafr-school-how-corporations-are-funded-by-taxpayers/

The Sheriff Who Sold His County
https://realitybloger.wordpress.com/2011/05/22/the-sheriff-who-sold-his-county/

California Fools Californians Into Higher Taxes Again
https://realitybloger.wordpress.com/2012/07/21/california-fools-californians-into-higher-taxes-again/

The Stockton Bankruptcy Lie (250 page lesson – Highly Recommended)
https://realitybloger.wordpress.com/2013/04/07/the-stockton-bankruptcy-lie/

Detroit Bankruptcy Lie
https://realitybloger.wordpress.com/2013/07/20/detroit-the-latest-bankruptcy-lie/

Chicago CAFR And The Lying Mayor Emanuel
https://realitybloger.wordpress.com/2013/10/24/rahm-emanuel-once-chief-of-liars-now-mayor-of-lies/

Federal Reserve Pays Treasury $75 Billion in Profit
https://realitybloger.wordpress.com/2013/10/15/federal-reserve-pays-treasury-75-billion-in-profit/

Obama-Care: An Investment Scam
https://realitybloger.wordpress.com/2013/06/19/obama-care-an-investment-scam/

Public Pensions: Welfare For The Middle Class
https://realitybloger.wordpress.com/2013/04/21/public-pensions-welfare-for-the-middle-class/

CAFR School: The Vatican Is Broke?
https://realitybloger.wordpress.com/2012/07/13/cafr-school-the-vatican-is-broke/

CAFR School: The Public Reading Of The CAFR
https://realitybloger.wordpress.com/2012/02/21/cafr-school-the-public-reading-of-the-cafr/

CAFR School Part 1 – Wisconsin State CAFR
https://realitybloger.wordpress.com/2011/03/01/wisconsins-real-financial-situation-explained/

CAFR School Part 2 – On City CAFR’s
https://realitybloger.wordpress.com/2011/03/03/cafr-school-a-lesson-in-financial-accounting/

CAFR School Part 3 – Minnesota State CAFR
https://realitybloger.wordpress.com/2011/03/03/cafr-school-a-lesson-in-financial-accounting/

The Senate: How Much Does It Cost?
https://realitybloger.wordpress.com/2011/04/04/the-senate-how-much-does-it-cost/

The United States: A Corporation
https://realitybloger.wordpress.com/2010/12/18/the-united-states-a-corporation/

National Ask Ron Paul About The CAFR Month
https://realitybloger.wordpress.com/2011/11/06/national-ask-ron-paul-about-the-cafr-month/

CORE: Making Children Stupider Around The World
https://realitybloger.wordpress.com/2013/08/29/core-making-children-stupider-around-the-world/

Your Taxes Are Already Spent
https://realitybloger.wordpress.com/2013/04/23/your-taxes-are-already-spent/

The Incontrovertible Conundrum Of Dr. Ron Paul
https://realitybloger.wordpress.com/2012/06/23/the-incontrovertible-conundrum-of-dr-ron-paul/

Today’s Creatures From Jeckyll Island
https://realitybloger.wordpress.com/2012/09/01/todays-creatures-from-jekyll-island/

Federal Reserve Notes Are Backed By Gold
https://realitybloger.wordpress.com/2011/11/21/federal-reserve-notes-are-backed-by-gold/

What Is JP Morgan Chase
https://realitybloger.wordpress.com/2010/11/16/what-is-jp-morgan-chase/

The Government Casino
https://realitybloger.wordpress.com/2010/03/08/the-government-casino/

The Fallacy Of The Dollar Crash
https://realitybloger.wordpress.com/2012/03/20/the-fallacy-of-the-dollar-crash/

Social Security Fund Tops $2.6 Trillion
https://realitybloger.wordpress.com/2012/01/27/social-security-trust-fund-tops-2-6-trillion/

The Biggest Game In Town: Walter Burien And The CAFR
https://realitybloger.wordpress.com/2010/01/09/the-biggest-game-in-town-walter-burien-and-comprehensive-annual-financial-reports/

CAFR’s And TRF’s -vs- Everything Else!
https://realitybloger.wordpress.com/2010/01/11/comprehensive-annual-financial-reports-and-trfs-vs-common-natural-maritime-and-ucc-law-which-takes-precedence-right-now/

C L I N T ‘ S   V I D E O S / F I L M O G R A P H Y

(FILM) THE CORPORATION NATION –
http://www.youtube.com/watch?playnext=1&index=0&feature=&v=yX8UhqyHKZk&list=PL6D032AA2E55759C1

(FILM) THE GREAT PENSION FUND HOAX –
http://www.youtube.com/watch?v=fhkWueEjewM

(FILM) CAFR SCHOOL: SCHOOL DISTRICTS AND THE LOTTERY
https://realitybloger.wordpress.com/2011/12/14/cafr-school-school-districts-and-the-lottery/

(FILM/LECTURE) SPECIAL TAX DISTRICTS (THE SHERIFF WHO SOLD HIS COUNTY) –
http://www.youtube.com/watch?v=6_-XMTauRsA

(FILM) THE ONLY GAME IN TOWN –
https://realitybloger.wordpress.com/2011/11/01/walter-burien-the-only-game-in-town/

(FILM) CAFR SCHOOL What is Wall Street? –
http://www.youtube.com/watch?v=2__ZsQSQirc

(FILM/AUDIOBLOG) The Truth About The “Audit The Fed” Bill
https://realitybloger.wordpress.com/2011/11/17/the-truth-about-the-audit-the-fed-bill/

(RADIO) MAYOR OF SALT LAKE ADMITS TO CAFR #1
http://www.youtube.com/watch?v=ve2WFZYo1KY&feature=player_embedded

(RADIO) MAYOR OF SALT LAKE ADMITS TO CAFR #2
http://www.youtube.com/watch?v=D4WbhvD-0no&feature=related

(FILM) CAFR SCHOOL Commingled Funds
http://www.youtube.com/watch?v=XIl5QJqX2Lo

————————————————————————————————–

Special thanks to Walter Burien at CAFR1.com.

.

–Clint Richardson (realitybloger.wordpress.com)
–Monday, January 20, 2014

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:

http://www.detroitmi.gov/Portals/0/docs/finance/CAFR/Final%202012%20Detroit%20Financial%20Statements.pdf

**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.

This “creative accounting” trick is used by all governments – BECAUSE IT IS THE RECOMMENDED STANDARD OF PRACTICE BY GOVERNMENT TO FUND THE COLLECTIVE ORGANIZED INVESTMENT SCAM ACROSS THE UNITED STATES!!!

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: https://realitybloger.wordpress.com/2013/02/27/unmasking-the-cafr-scam-in-every-city-usa/

And check this out to see where your tax dollars really go: https://realitybloger.wordpress.com/2012/07/10/cafr-school-how-corporations-are-funded-by-taxpayers/

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 (realitybloger.wordpress.com)
–Saturday, July 20th, 2013

A Conversation With A Friend


One of my better radio interviews I thought folks might enjoy…

Listen:

Download–> http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=128766&cmd=tc

Thanks to John Friend at the Realist Report at:

Link –>http://www.john-friend.net/

.

–Clint Richardson (realitybloger.wordpress.com)
–Friday, July 19th, 2013

The Stockton Bankruptcy Lie


Is the City of Stockton municipal corporation really Bankrupt?

No. Absolutely, 100% not.

But upon further examination, this is not quite the correct question to ask regarding the financial state of City of Stockton.

The correct question is…

Which financial statements are being used in the Stockton bankruptcy proceedings, and which are being hidden or exempt?

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An Introduction To Financial Terrorism
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The following text is an excerpt from a future book that I am writing, where the City of Stockton CAFR was my main learning tool. You are absolutely free to share and re-post without limitations the following information with no restrictions, with the understanding that all rights are reserved for my future publishing. Due to the timing of current news, I feel this information should be given to the public for immediate consideration, and that we should fight the current falsified string of bankruptcy that is sweeping the nation at dyer consequences. If we don’t physically stop this one falsified bankruptcy then others will certainly follow, as well as the pain and suffering caused to the people and creditors of governments. While many of those creditors are banks, many are also smaller companies, construction corporations, pensioners, ect… all of which will be defaulted upon through a completely fraudulent bankruptcy declaration based upon a lie of omission of financial data.

This is the perfect timing for City of Stockton or any other supposedly failing City, County, District, or State to hire/implement Walter Burien and his TRF program into their venue – a complete audit and restructure of the accounting laws and a complete financial audit of any municipal corporation (city, county, State, districts, etc) by the demand and vote of the people (the true authority of the land). Stockton is hiding well over a billion dollars in liquid investments from the people by omitting those fund balances from their limited budget report, and is fraudulently claiming bankruptcy within the complicit actions of the bankruptcy court while ignoring the full audit of City of Stockton – the Comprehensive Annual Financial Report (CAFR). This is the greatest possible moment to date to show the lie of obfuscation that is the budget report – to not only raise awareness of the CAFR investment wealth of all governments across America (none of which are even close to bankruptcy despite their public outcry), but also to charge those perpetrating the lie with criminal charges of fraud and misconduct of taxmoney while in the public trust.

Once again, this is not a “publication” of this information, but instead an excerpt from my future work in book form. I retain all rights, but permit any and all reproduction of this information for the greater good and in order to give the people the learning and evidential tool to squash this deception before it starts on a national level, and before the pension system is pilfered. Naturally, the length of this presentation is due to the inclusion of a large section of the printed Stockton Comprehensive Annual Financial Report (CAFR), followed by my layman’s explanations of what the real financial situation is in City of Stockton. The reader should consider this a full immersion into the CAFR and into the world of completely corrupt government accounting practices, and a lesson on the very purposeful obfuscations and word trickery of government financial reporting by government corporations. This is total CAFR understanding, and with over 200 pages of financial and statistical gobbledygook, the length of this article is necessarily long, even for my standards! The reason for this fact is both to help the reader by not referring to another report but instead including the facts within, and of course to accurately present the true financial position of City of Stockton for the purposes of being presented as evidence into the court of public record so as to stop this current lie by that City. I will personally introduce this CAFR and essay into evidence of the court if someone will support my efforts.

Please share, re-post, and start acting – for with this teaching tool, you can stop your own government entity from fraudulently declaring bankruptcy and in fact show that any City, County,  District, or State has enough “reserves” and “investment funds” to completely pay off all of their bonded indebtedness tomorrow, and still be well in the black. The entire country could literally be out of debt tomorrow on the State and local level. In other words… the whole government could be free of debt tomorrow, if the people would rise up and demand that the laws be changed to do so with current assets. Do not let this opportunity to both learn and expose the lie go to waste, and thank you for reading…

Note: **This is an unedited draft by the author. Anyone interested in helping me to publish this as of yet self-published work, as well as two other books that I am writing, please do contact me.

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Chapter 1:
The Big Bankruptcy Lie…
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Stockton, California has been in the news lately.

The “City of Stockton“, a municipal corporation, is claiming to be broke. In fact, the Stockton corporation was recently approved by its own City Council for Chapter 9 bankruptcy proceedings, and now is in the news again…

(Reuters) – A U.S. federal judge on Monday approved the city of Stockton’s petition for bankruptcy in a case that sets the stage for a lengthy battle between bondholders and the California pension system.

In a case being studied by other cash-strapped American cities including Detroit, U.S. Bankruptcy Court Judge Christopher Klein’s decision was a setback for bondholders and insurers who had resisted the California city’s bankruptcy filing. Stockton is the largest U.S. city ever to file for bankruptcy…

The decision on Stockton marks the start of a lengthy restructuring of the obligations that currently overwhelm its finances, which were crippled by the housing crisis and recession.

Investors in the $3.7 trillion municipal bond market are concerned that if Stockton is able to avoid paying bondholders in full without cutting pension payments, other cities will pursue a similar strategy as they struggle to cope with budget shortfalls…

In a lengthy preamble to his ruling, Klein delivered a stinging rebuke to the so-called capital market creditors – mainly the insurers for bondholders who own hundreds of millions of dollars of Stockton debt – who had opposed the bankruptcy filing.

He rejected the arguments of bondholders and insurers that Stockton was not truly insolvent when it sought Chapter 9 bankruptcy protection last summer and that it had improperly failed to seek relief from its pension obligations…

Bob Deis, the Stockton city manager who is largely responsible for managing the bankruptcy process, called the judge’s verdict a “vindication” of the city’s position.

He criticized the “scorched-earth” legal strategy of the bond creditors as a waste of time and money, and said the city had already spent $6 million to $7 million on the mediation and legal costs…

Throughout his two hours of comments, the judge made it clear that he thought the city had done everything it could to avoid bankruptcy. He noted that sharp cost-cutting had begun years ago, and that 77 percent of the city’s budget was devoted to already-diminished police and fire services.

Klein agreed that further cuts in public safety and other services were not options.”

(Source: http://www.reuters.com/article/2013/04/02/stockton-bankruptcy-idUSL2N0CO1AU20130402)

In another article, the amounts were disclosed:

The city made $90m in cuts to city services to pay its bills, reducing the police force by 25 per cent and the fire department by 30 per cent. But it still faced a $26m shortfall on its $512m annual budget heading into the 2012-13 fiscal year. It filed for bankruptcy protection in June of last year (2012)…

In a proposal the city issued in May 2012, during the mediation process that preceded the bankruptcy filing, it suggested paying the bondholders 17 or 18 cents on the dollar of its debts, leaving bondholders to face a collective loss of up to $136.6m.

The city did not seek any concessions from Calpers before declaring bankruptcy, a decision city officials must defend in court this week.

The city argued that  CalPERS is not a “creditor” in the same sense as the bondholders, and, because of state law, has no power to renegotiate its liabilities outside of a bankruptcy proceeding.

“Referring to Calpers as a creditor is a misnomer,” said Bob Deis, Stockton’s city manager, during cross-examination on Monday. “It’s more a conduit . . . They don’t create or generate money. They take money from us, they invest it, and they give it to our retirees.”

Mr Deis testified that Calpers is “front in line to all other creditors”. If the city had tried to leave the Calpers system, it would have faced a $1bn liability, and a legally binding claim placed on all its assets.

(Source: http://www.ft.com/cms/s/0/88378fc0-95ee-11e2-b8dd-00144feabdc0.html#axzz2PcQb2sxP)

And the official declaration of bankruptcy is highlighted here: http://www.caeb.uscourts.gov/Stockton/Default.aspx

Now, from these articles we have gleaned some very important information – all of which will be greatly expounded upon here.

We know that City of Stockton Municipal Corporation’s City Manager – an appointed (not voted) official – is claiming poverty within its public budget report in the midst of massive undisclosed and misrepresented investment funds that are only disclosed in the purposefully unmentioned CAFR report – much like the rest of the country’s city’s, districts, counties, and state government corporations; all wealthy beyond the public’s imagination. And we know that the judge presiding over this bankruptcy case is also not taking into consideration that actual audited financial statements of this City – it’s Comprehensive Annual Financial Report (CAFR) – and that this judge is very likely and openly lying under oath when he felt that “the city had done everything it could to avoid bankruptcy” even though the large City investment funds shown only in the CAFR could be liquidated to pay off any and all debt owed to bondholders and pension obligations.

Wait a minute… Stockton is a corporation, you ask?

Well, yes! The “City Of Stockton” was incorporated on July 25, 1850 under the general laws of the State corporation of California. And its corporate charter was adopted in 1923.

Link to Stockton City Charter –> http://qcode.us/codes/stockton/view.php?topic=the_charter_of_the_city_of_stockton&frames=on

Within its corporate charter, Section 300 states:

SECTION 300. Name and General Grant of Powers.

The municipal corporation now existing and known as the City of Stockton shall remain and continue to exist as a municipal corporation under its present name of “City of Stockton.”

The City of Stockton shall have the power to make and enforce all ordinances and regulations in respect to municipal affairs, subject only to the restrictions and limitations provided in this Charter, the Constitution of the State of California, and the Constitution of the United States. It shall also have the power to exercise or act pursuant to any and all rights, privileges, powers, or procedures heretofore or hereafter established, granted or prescribed by any law of the State, by this Charter, or by other lawful authority, or which a municipal corporation might or could exercise under the Constitution of the State of California and the Constitution of the United States.

The enumeration in this Charter of any particular power shall not be held to be exclusive of, or any limitation upon, the generality of the foregoing provisions.

SECTION 301. Succession.

The City of Stockton shall continue to own, possess, and control all rights and property of every kind and nature, owned, possessed or controlled by it at the time this Charter takes effect and shall be subject to all its debts, obligations and liabilities.

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In this presentation, we will be looking at the fiscal year 2010 Comprehensive Annual Financial Report (CAFR) of the municipal corporation called “City of Stockton” – because the “City” has been purposefully negligent of its own corporate charter. It has broken its own laws and rules by not delivering its own required CAFR for fiscal year 2011 even close to on time… even as it declares a budgetary shortfall and bankruptcy. How can the people, as represented in the bankruptcy courts, know “City of Stockton’s” financial situation if there is no audit for public viewing? And how then can it declare bankruptcy without presenting its financial statements for public and legal scrutiny, and for the declaration of bankruptcy?

The corporate charter is very clear about this:

SECTION 1901. Fiscal Year.

The fiscal year of the City of Stockton shall commence upon the first day of July of each year or such other time as may be fixed by ordinance.

This charter also requires the Comprehensive Annual Financial Report (CAFR), referred to here as the “annual financial statement”:

SECTION 1910. Annual Financial Statement.

At the conclusion of each fiscal year, a comprehensive Annual Financial Statement shall be prepared in sufficient detail to show the financial condition of the City’s funds for the preceding year. Such Annual Financial Statement shall be prepared in accordance with generally accepted accounting principles.

Generally Accepted Accounting Principles (GAAP) are the uniform commercial codes that all government corporations follow according to State and Federal laws. Uniformity is key in this type of government organized crime, as these reports are considered the full audit of government – for the over 230,000 local, state, and federal corporate governments and other incorporated government entities across the United States.

GAAP even gives out awards for the best presentation of a CAFR. “City of Stockton” corporation received a “Certificate of Achievement for Excellence in Financial Reporting” for its 2009 CAFR report, presented by the Government Financial Officers Association (GFOA) – just one of many 100% non-governmental organization (NGO) private associations that, chances are, the financial officers of your own city hall are members of.

SECTION 1911. Annual Audit

As soon as practical after the close of the fiscal year, an Annual Audit shall be made of all accounts of the City. Such audit shall be made by a firm of certified public accountants selected by the City Council. The audit shall be made in accordance with generally accepted audit standards for audits of public agencies.

Note that fiscal year 2011 for “City of Stockton”, beginning June 1, 2010 and ending June 30, 2010, has long since passed. The audit referred to in the charter above is in fact the audit of the City’s Annual Financial Statement (CAFR), and this is referred to within the CAFR itself. Thus, an audit has not been publicly released as is required within the regulations of the corporate charter of “City of Stockton”. This is malfeasance. And this newer CAFR is absolutely necessary in any so-called bankruptcy proceeding. Without it, there is no accounting of government investments and true wealth, as the annual budget report is nothing if not a wholy incomplete and hand-selected presentation of only small parts of any government’s actual holdings and investments presented in the full CAFR report.

Now, since we cannot view the 2011 CAFR due to its obviously poor, inept, and likely purposefully deceptive city management (Bob Deis), we can only pull up the last (fiscal year 2010) Comprehensive Annual Financial Report for the corporation known as “City of Stockton” and see what this corrupt government corporation is hiding from the public in this bankruptcy proceeding…

Link to Stockton CAFR –> http://www.stocktongov.com/government/departments/adminServices/finRep.html

On page V we find a cover letter addressed to the “Honorable Mayor, Members of the City Council and Citizens of the City of Stockton, California”. The letter is dated February 16, 2011 – which is a reasonable time-frame for the collection of all financial data from which to create, independently audit, publish and release the CAFR for a municipal corporation. 6-8 months after the fiscal year end is an average time-frame for a CAFR to be released. For “City of Stockton”, however, they are about 12 months late!

Quite convenient, wouldn’t you say?

The cover letter states:

“The Stockton City Charter and California state law require that the City of Stockton, California (City) publish a compete set of financial statements presented in conformance with generally accepted accounting principles (GAAP) and audited by a firm of licensed certified public accountants. Pursuant to that requirement, it is with pleasure that we submit the Comprehensive Annual Financial Report (CAFR) of the City of Stockton for the fiscal year ended June 30, 2010.

The Governmental Accounting Standards Board (GASB) establishes the formal accounting standards for all local and state governments in the United States and Canada, and its counterpart in the private-sector is the Financial Accounting Standards Board (FASB). Both GASB and FASB require that financial transactions follow generally accepted accounting principles, referred to as GAAP…

INDEPENDENT AUDIT

The City Charter, Article XIX, Section 1911 requires each fiscal year that an independent audit be made of all City accounts by certified public accountants. The City of Stockton’s financial statements have been audited by Macias Gini & O’Connell LLP, an independent firm of licensed certified public accountants…”

Note here that these uniform standards are created by 100% private associations (GASB, FASB, GFOA, GAAP), which are delegated this authority by congress. Also note that the same accounting standards and practices are used by both the United States and Canada. This should alarm you. In fact, the GASB and FASB, as well as other non-governmental organizations and associations have been recently talking about creating an international accounting standards platform through the United Nations. This should really, really set your alarm bells a-ringing. For this is globalism knocking at your door – using your own taxpayer money!

Page VI of the CAFR continues:

PROFILE OF THE GOVERNMENT

“The City encompasses 60 square miles and has an estimated population of approximately 292,133 making it the 13th largest city in California…”

GOVERNMENT STRUCTURE AND TYPES OF SERVICES

“…The current Charter under which the City operates was approved by the voters in November 1922. This Charter, enacted in 1923, changed the City from a commission form of government to the current City Council – City Manager from of government.  The City Charter has been amended over 100 times since its original approval in 1922.

Under the Council-Manager form of government, policy-making and legislative authority are entrusted to the City Council. The mayor and representatives from six districts are chosen by city-wide election for staggered four year terms, with a two term limit. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for appointing department heads, and overseeing the operation of the City. The City Manager, City Attorney, City Auditor, and City Clerk are appointed by the City Council…”

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Question: If something has been amended over 100 times, is it still what was “approved by voters” almost 90 years ago? Me thinks the answer to be no…

It is important for people reading this to understand the difference between a democracy and a legislative democracy.

In a democracy, the people would read and vote for the laws that their delegates (congress/councils) create.

In a legislative democracy, the people vote for congressmen who create or have created for them by other entities, NGO’s, and other forms of corporate associations the laws and then vote on these laws themselves – often without reading them – on behalf of the people (as representatives of the people, not delegates of the people).

In other words… the people of Stockton (or anywhere in America) do not vote for the laws that bind them or their government corporation. This is stated above by: policy-making and legislative authority are entrusted to the City Council. The council votes, not the people – despite the people, in fact.

The power of the people is concentrated within their representatives, and is sucked and drained more and more with each passing year… And yet ironically the people still believe that they have “a voice”.

Even more disturbing is the described role of the “City Manager”. The City Manager is APPOINTED by the City Council and Mayor. Simply stated, the people do not elect this office. The people elect the City Council – and the elected Council then appoints the City Manager without voter approval. But this unelected official – an employee of the “City of Stockton” corporation – then appoints the corporation’s “department heads” and “oversees the operation of the City”.

Remember, the role and position of City Manager was created by a 100% private association almost a century ago in an attempt to bypass the written law and adhere to a “higher” law. Voting public not needed!!!

This is legislative democracy…

Almost the entire structure of Federal, State, and local/district government has been handed over to appointed officers (employees) and private associations by this legislative democracy process. Most government functions are now written and administrated by 100% non-governmental private associations. Even the electoral college process of electing the President of the United States is handled by the 100% private associations called the Democratic and Republican “Parties”. The people do not vote for president in any way. The president is elected by 538 electors appointed by these private corporate political parties and according to the constitution, with the full consent of our representative congress.

And just like the corruption of the “City of Stockton” government goes for the most part unseen, so too does the fact that the president of the United States corporation is not elected by the people. Over 100 million votes are cast in America for president every 4 years, and not a one of them count towards the actual election of that office. One can only conclude that this information is kept as a big open secret by government, as billions are spent keeping up the appearance of the “popular” election process every four years.

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“In reality, when the voters of North Carolina voted this past November, they were actually voting to pick this slate of electors instead of voting directly for the president and the vice-president.”

–Elaine Marshall, Secretary of State of North Carolina,
speaking at the 2012 Electoral College ceremony.

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Learn more about the Electoral College, here: LINK- https://realitybloger.wordpress.com/2012/12/24/understanding-the-2012-electoral-college/

Likewise, the Comprehensive Annual Financial Report is the best kept open secret from the general population within all individual governments  – and even from the majority of council members and local government workers (employees).

I chuckle every time a councilman contacts me to help them not only locate their own City CAFR, but to even begin to read and comprehend what is printed within its pages. It is important to note that most government workers, including many councilmen, are nothing but useful idiots (some even innocents) when it comes to the CAFR and the well-oiled extortion racket that takes place right under their noses. If they are only shown the budget report by the City Manager and the Mayor, and are then told that they may only utilize the figures inside of that budget report as opposed to the full CAFR report, then it is difficult to claim that they are in on the game or even benefiting from the lie. I’ve personally shown CAFR’s to several wide-eyed councilmen who were beside themselves when they found out that all debt could be paid off tomorrow with plenty left over – the standard financial position of most if not all governments, including City of Stockton. Trust me, the look of amazement when I show these CAFR figures and graphical information to a councilperson outside of the organized criminal gang; that look in his or her now wide-with-surprise eye sockets is worth the trouble to show them. Their crash back down to reality when they understand they can’t do much about it without losing their council-ship in the next rigged election is another story, and their inaction because of this is certainly uniform throughout… In this way, I suppose – the fact that they are not screaming at the top of their lungs about this to the people they represent – makes them just as complicit as the rest.

In point of fact, Stockton’s legislative process is in no way “democratic” at all… And it certainly isn’t a republican form of government as set out within the original constitution for America.

Section XII of the Stockton City Charter states the following about the City Manager:

SECTION 1200. Nomination.

The Mayor shall nominate one (1) or more candidates for Council consideration for appointment to the position of City Manager. The City Manager shall be appointed by the Council for an indefinite term and shall not be removed from office except by a vote of a majority of the members of the Council; provided, however, that the City Manager shall not be removed from office within twelve (12) months from the date his or her duties are assumed, except for incompetence, malfeasance, misfeasance, or neglect of duty

(Note here that the “people” cannot vote out the City corporation employee called the City Manager, only the council and Mayor can. Again, legislative democracy where the people truly have no voice.)

SECTION 1201. Chief Administrative Officer.

The City Manager shall be the chief administrative officer of the City. He or she shall be responsible to the Council for the efficient administration of all the affairs of the City placed in his or her charge by or under this Charter. Without limiting the foregoing general grant of powers, responsibilities and duties, the City Manager shall have the following powers and duties:

(a) Except as otherwise provided elsewhere in this Charter, the City Manager shall appoint all officers and employees of the City; and, when he or she deems it necessary for the good of the service, the City Manager may, subject to the above-mentioned limitations, suspend without pay, demote, discharge, remove or discipline any City officer or employee whom under this Charter is appointed by the City Manager

(b) Except as otherwise provided elsewhere by this Charter, the City Manager shall direct and supervise the administration of all departments, offices and agencies of the City;

(c) The City Manager shall attend all regular and special meetings of the Council… but not to vote…

(d) The City Manager shall be responsible for the faithful execution of all laws, provisions of this Charter, and acts of the Council which are subject to enforcement by the City Manager or by officers who are under the City Manager’s direction and supervision;

(e) The City Manager shall prepare and submit the annual budget to the Council in accordance with the provisions of Article XIX of this Charter;

(f) The City Manager shall recommend to the Council for adoption such measures and ordinances as the City Manager may deem necessary or expedient;

(g) The City Manager may make and execute contracts and authorize expenditures of less than twenty thousand ($20,000) dollars, or in such amounts as are established pursuant to SECTION 2002 of this Charter, on behalf of the City;

(Note that the term “on behalf of the City” really means on behalf of all the people of the City – and that includes you.)

(h) The City Manager shall submit an annual report on the finances and administrative activities of the City as of the end of the preceding fiscal year to the Council at a public meeting to be held within thirty days following receipt of the Annual Financial Statement. The annual report, which shall be personally certified by the City Manager to be accurate and complete, shall contain a statement indicating:

(1) Whether the revenues budgeted for the preceding fiscal year were actually received, and an explanation concerning any material differences between the total revenues budgeted and the revenues actually received;

(2) The extent to which expenditures budgeted actually were incurred, and an explanation for any material variance between budgeted expenditures and actual expenditures;

(3) The amount of the financial reserves of the city;

(4) All other information which, in the opinion of the City Manager, is necessary to provide an accurate and complete picture of the fiscal status and condition of the city. The report shall be in a form which is susceptible to confirmation by audit. It shall be made available to the public in the Office of the City Clerk.

(i) The City Manager shall make such other reports as the Council from time to time may request concerning the operations of City departments, offices and agencies subject to his or her direction and supervision; shall keep the Council fully advised as to the financial condition and future needs of the City; and make such recommendations to the Council concerning the affairs of the City as he or she deems desirable or as requested by Council;

(j) The City Manager shall appoint such advisory boards and committees as may be necessary or desirable to advise and assist in the work of the City Manager; provided, however, that the members of such boards shall not receive any compensation.

(k) The City Manager shall exercise such other powers, and shall perform such other duties, as are specified in this Charter or as authorized or required by the Council.

Now you might be asking yourself… What in the hell does the City Council and Mayor do while the appointed City Manager and his appointed staff do all of the work?
Besides running reelection campaigns and kissing babies for photo-ops, apparently not so much. They do however sign the statutes that the City Manager creates (or is given by…?) and receive pensions and a paycheck. The less intelligent and honorable the better, I’m guessing. And the less they know about accounting or the CAFR – even better.
This delegation of the powers by the council and mayor that were voted upon by the people to represent them is a blatant disregard for duty, and very much a part of the Agenda 21 and United Nations international accounting system currently being placed around the world in all governments as a world-wide investment scheme with public funds. And we must remember that each of these financial and planning officers, including the City Manager, are also members of NGO private associations that direct their accounting principles and actions – meaning that they are as much automatons as many of the councilmen are.
Walter Burien of (CAFR1.com) tells a wonderfully descriptive and enlightening allegory about how a mayor might hire his City Manager, auditor, or other accountants and attorneys:

Three accountants are sitting outside of the mayor’s office waiting to be interviewed for City Manager. The first one has a brilliant resume’ and decades of experience, dressed in an expensive suit and over-shined shoes. After a short question and answer session, the mayor asks the accountant one final question: What does 1 + 1 equal? The experienced and honest accountant states that the answer is of course 2. The mayor then tells the man: Thank you very much, we will be in touch.

The second and slightly less experienced accountant goes through the same interview process, and answers the same 1 + 1 question as well with the answer of 2. Thank you very much, we’ll be in touch.

The third gentleman was nowhere nearly as qualified as the other two candidates, and was dressed just barely adequately for this interview. His shoes were not shined and his hair  uncombed. His past work history included the most corrupt and disreputable firms imaginable, as well as the mafia. His answers to the interview questions were less than favorable, and a slight odor arose from his garments. And so the unimpressed but keen mayor asked his final question: What does 1 + 1 equal? The man gave pause for a moment, and then stated fervently: What do you want it to equal?

The mayor then smiled, stood up to shook hands, and said: Can you start Monday?

But with regards to the powers appointed to this City Manager, this is nothing when we consider the ramifications of this next section of the Stockton corporate charter:
SECTION 1800. Emergency Plans.
In order to provide for continuity of City government during any emergency declared by the City Council or otherwise declared pursuant to federal or state law, resulting from conditions of disaster or of extreme peril to the safety of persons and property within the territorial limits of the City of Stockton, caused by such conditions as air pollution, fire, flood, storm, epidemic, riot, drought, sudden and severe energy shortage, plant or animal infestation or disease, the Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or other condition, or other disaster of whatever nature, the City Council shall by ordinance:
(a) Establish a City of Stockton Disaster Council which shall develop and recommend for adoption by the City Council, emergency and mutual aid plans and agreements and such ordinances, resolutions, rules, and regulations as necessary to implement such plans and agreements.
(b) Designate the City Manager as the Director of Emergency Services and establish the powers and duties for that position.
(c) Authorize the City Manager, only as necessary to protect the public health, safety and welfare, to waive any purchasing and employment provisions of this Charter, or any ordinances, resolutions, rules, and/or regulations applicable thereto during the existence of any emergency that has been declared by the City Council or the state pursuant to federal, state or local law.
Notwithstanding any other provision of this Charter, the City Council may enact any ordinances or resolutions, or establish any rules and regulations for the purpose of dealing with such emergency.
In case you missed that, Section 1800 is a contingency plan for pre-approved martial law!!!
The charter makes the APPOINTED City Manager into a virtual General (Marshal of Law) – with all Federal Executive Order powers at his disposal. And the City Council, according to the last sentence, is free to create “any law under a declared “emergency”.
Please remember that this is a standard (uniform) municipal corporation charter, and chances are that you are under the same type of legal language of control, lawlessness, and martial law under an appointed manager, as well as on the county and State level.
Again, this is legislative democracy… and no other kind.

–=–
Chapter 2:
You Are A Customer Of Government
With Services At The Barrel Of A Gun
–=–

The 2010 CAFR report for City of Stockton corporation continues:

“The City provides a full range of municipal services. These services include: public safety (police and fire), community development, community revitalization, public works and street maintenance, parks, recreational services, libraries, water utility, sanitation services (wastewater and stormwater utility), solid waste disposal and recycling, and general administrative services.

Certain community development/revitalization activities and infrastructure construction are provided through the Stockton Redevelopment Agency, a legally separate entity. The City Council sits as the Stockton Redevelopment Agency’s board, and the Agency functions as a department of the City.

This report includes the financial activity of separate legal entities whose activities the City controls. these entities include:

  • Stockton Redevelopment Agency, and
  • Stockton Public Financing Authority

A component unit (stand-alone) report is available for the Stockton Redevelopment Agency on the City’s website.”

As we explore further into this CAFR report, we will see that many of these “services” as referred to above are actually what is called “enterprise operations” – businesses for which the citizens and taxpayers are not anymore “people” or body politic of the government but are indeed “customers” of the government for-profit corporation. And these services are actually not a choice in some cases, but instead are a “service” at the barrel of a gun via a government approved and investment held monopoly and/or trust. For indeed, if you do not pay your fees and taxes, a lien can be placed on your home or property and it can be taken away through legal and eminent domain confiscation.

Remember… property tax is an exaction.

An “exaction” is defined as legal “extortion”.

Exaction is a legal “civil right” of the people.

Do you understand???

To grasp how this is true, I’d like to introduce you to one of the most difficult to comprehend concepts for any citizen of the United States. As 14th amendment “persons”, we often misunderstand the definition of what a legal “right” is, as rights are granted to persons as revocable privileges. This is called a “political” or “positive” right, having nothing whatsoever to do with “natural”, “God-given”, or “negative” rights.

A natural or negative right simply means that you have the right not to have privileges, services, laws, and other tyrannies forced upon you. Thus, a free man would consider himself to live under God’s law or in nature, and his duty to his fellow man is to simply do no harm to him or his property. So a negative right is simply the freedom to not have rights forced upon you.

Enter government…

Political rights are positive in that they require an action to be taken against you, whereas negative rights are those reserved to say no to the same action. With the protections these rights afford as granted by government, the citizen must also accept the pains and punishments that government also grants as your positive “rights”, all of which can only be acquired in a contractual nature. Examples of these are the enumerated codes which allow the right to drive, the right to vote, and the right to free speech – all of which are political, governmental, and revocable rights (privileges) granted to its contracted 14th amendment citizens, who volunteer and consent to be contractually obligated under these rights.

Sounds confusing, doesn’t it?

In a moment you will understand with perfect clarity, I assure you.

These political rights are written in U.S. and State CODE, the legal codes of government. When considering these codes, government does not refer to men as natural beings, but rather as corporate “persons”. Whereas a natural man can only have natural rights, the fictional person attached to man is a corporation and can only have political rights granted by the government. This “person” is the name on your driver’s license, your social security card, and any other contracts with government, banks, etc. The person is your citizen. When in breach of contract or in violation of DMV or other government codes, it is this fictional person that is in violation or breach. The man attached to the artificial person is the surety for this dualistic relationship, and the courts must establish this connection in order to force positive rights upon you – like the right to pay fines and taxes and the right to go to jail.

Obviously, the use of the words positive and negative can be misleading here…

Black’s law 2nd Edition defines surety as:

A promise to fulfill a contract. Or a party who will take the liability for the original party in a bond.

And it defines the word person as a “thing”, not a living man:

A man considered according to the rank he holds in society, with all the rights to which the place he holds entitles him, and the duties which it imposes. A human being considered as capable of having rights and of being charged with duties; while a “thing” is the object over which rights may be exercised.

Interestingly, the word “impersonate” stems from this legal title of person.

Bouvier’s Law Dictionary, 1856 defines the word “personate” as:

TO PERSONATE, criminal law. The act of assuming the character of another without lawful authority, and, in such character, doing something to his prejudice, or to the prejudice of another, without his will or consent.

And in Black’s Law 2nd Edition:

Personate: In criminal law. To assume the person (character) of another, without his consent or knowledge, in order to deceive others, and, in such feigned character, to fraudulently do some act or gain some advantage, to the harm or prejudice of the person counterfeited.

In this way, the modern term “identity theft” can be explained. For when a thief steals your identity, he steals your artificial person – the contract name on your credit cards and bank accounts. He doesn’t need you (the flesh and blood man) in any way, and needs not even know what you look like. The thief can take upon himself your person (identity and character) without your knowledge or consent, thereby showing the complete separation of a man and his artificial person (identity) that he is a surety of. And while thousands of dollars are being drained from your various personal accounts, and while credit cards are used to purchase products from all over the world (and the world-wide web), the natural man may remain clueless of the theft of his corporate person (identity) for many days, weeks, or months. And yet the debt and punishment will by law assume the man as being responsible for his artificial person as surety, not the thief.

It is this person/identity that Black’s Law Dictionary also attributes to both the natural man’s “character” and his “status”.

And if you think about that for a moment, you understand that a man’s public status and character is defined by the actions of his artificial person – his “STRAWMAN”. Let’s take the credit rating agencies as an example. These databases keep track of the “credit status” of all persons, though they know nothing of the circumstances of the natural man who is the surety of that person. For it is not the man that has credit, but the fictional person attached to the man – the artificial character of that man.

Thus, the credit rating agencies can only measure the very limited participation of the corporate person within the corporate world of commerce (via the Social Security Number, etc.), but can never truly measure the actions or true intent of the man himself. And so while thieves and con-men may work extra hard to keep a high credit rating for themselves even as they steal, cheat, and commit illegal identity theft of other persons, their own credit score may show that they have perfect credit (character) as corporate persons. And these credit-rating agencies will recommend the worse criminal elements out there as being wholly trustworthy by whomever seeks the measure of the character of that man through a glimpse at his artificial person – his credit report. This is the paradox of the business world, where good men fall pray to a system set up to honor bad men, simply because the measure of those same men is determined by a literal lie – by their artificial persons.

Now apply this to government, where government investment held corporations give government municipal corporations (Cities) and Pension Funds excellent credit ratings based on their character and good faith and credit – allowing them to borrow or create “bonds” based on that character of being a public agency. The only problem is that the good faith and credit of government is supposed to be within the people it represents. But this is just not the case, and instead we have government extorting public funds from the people and into the investment schemes it promotes and regulates. And it is alowed to create much more money in bonds than it has the legal ability to pay – not unlike the very reason the 2009 mortgage crisis happened, where loans were made to people who could in no way afford to pay them.

The only difference is that government has used the good character of the people to procure bonds (loans) that, though it has the ability to pay off at any time, it restricts itself from doing so by hiding and restricting the public funds into investment funds that cannot be used to pay off debt.

In this authors opinion, this is the ultimate form of identity theft – the theft of the good name of the people of America!

Bouvier’s goes on to define just what a person is that can indeed be impersonated:

PERSON. This word is applied to men, women and children, who are called natural persons. In law, man and person are not exactly synonymous terms. Any human being is a man, whether he be a member of society or not, whatever may be the rank he holds, or whatever may be his age, sex. A person is a man considered according to the rank he holds in society, with all the rights to which the place he holds entitles him, and the duties which it imposes.

2. It is also used to denote a corporation which is an artificial person.

3. But when the word “Persons” is spoken of in legislative acts, natural persons will be intended, unless something appear in the context to show that it applies to artificial persons.

The 14th Amendment created just such a context, ensuring that all natural men are also artificial persons called “citizens”.

Bouvier’s details how the natural man is attached to the person/citizen in commerce by defining surety:

SURETY, contracts. A person who binds himself for the payment of a sum of money or for the performance of something else, for another, who is already bound for the same. A surety differs from a guarantor, and the latter cannot be sued until after a suit against the principal.

2. The surety differs from bail in this, that the latter actually has, or is by law presumed to have, the custody of his principal, while the former (surety) has no control over him. The bail may surrender his principal in discharge of his obligation; the surety cannot be discharged by such surrender.

3. …in general a creditor may resort to the surety for the payment of his debt in the first place, without applying to the principal.

 So as a contractual citizen acting as a person in commerce, you are responsible for your persons actions and debts, and are contractually obligated while acting as an artificial person to submit to all of the positive rights that government forces upon you.

Let’s look at what this means…

As stated above, property tax is involuntary and paid by all “persons”. This and most all other taxation schemes are literally extortion by government from the people as citizens. But government calls this taxation scheme by another word… exaction.

Exaction is a legal “civil right” of the people, as defined in US CODE here:

42 USC § 1981 – Equal rights under the law

(a)    Statement of equal rights

All persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts, to sue, be parties, give evidence, and to the full and equal benefit of all laws and proceedings for the security of persons and property as is enjoyed by white citizens, and shall be subject to like punishment, pains, penalties, taxes, licenses, and exactions of every kind, and to no other.

An “exaction” is simply defined as legal “extortion”.

Not all rights are necessarily beneficial to men, and every action has a reaction. As we can read above, the civil “right” to be exacted, taxed, punished, and put in pain is equal (an equal right) with the rights of life, liberty, and property.

In other words, the right to own property is no more paramount than the right to have that property stolen away by government via the takings clause of the 5th Amendment. It is your positive right to have your property and money exacted from you. If you carried natural rights as an artificial person, then this taxation and confiscation would be a choice by you and an offer by government instead of a required demand as it is today.

The right of freedom is no more powerful than the right of punishment, pain, and penalties – for in legal language the word freedom literally means “to obey the law”, and the opposite reaction is punishment, pain, exaction (extortion) and incarceration.

And the right to representation is no stronger than the right to be taxed and extorted from without any representation.

Rights are not at all what I grew up thinking they were. And I’m betting right about now you are feeling the same way. In truth, only natural mankind has rights, and can accept or deny what he wishes. Everything else is artificial and contractual, especially if derived from government, and is truly what I call services at the barrel of a gun.

And as a person/citizen in a legislative democracy you have no natural rights, any more than you do as an employee of McDonald’s Corporation. You’re freedom is only as tangible as what it is to obey the law/rules of the corporation, and to receive the good and bad benefits and entitlements that comes with that freedom to obey.

Do you understand that the general people have no real representation in government, and that the only real people in America are the politicians who act on your behalf and are exempt from their own laws???

–=–
Chapter 3:
The Government Investment Scheme
–=–

Now let’s see just what happens to all of your hard earned tax-money within these municipal corporations by understanding the investment standards and practices of this City.

The most important lesson for you to learn today as applied to the supposed bankrupcy of City of Stockton or any other government entity – all tax and enterprise money collected by government is first and foremost diverted into local, State, and Federal investment funds, even if it will be spent the very next week.

The second most important lesson?

Most of these funds are reported in the CAFR, but not in the budget report – which is just a small portion of the CAFR.

And the budget report is what is being considered in this bankruptcy court!

Continuing with the 2010 CAFR:

(Page XI) RESERVE POLICIES

The City Council has adopted policies establishing minimum target levels of unassigned fund balance to be maintained in the various funds. These target amounts protect the City’s financial exposure to severe unforeseen emergencies and economic uncertainties, and are an important component of the City’s long-term financial management. The following are examples of such policies for different funds:

General Fund: 5% of appropriations for catastrophic events and 5% for economic contingency/budget uncertainty.

Measure W: 25% of anticipated annual revenue; and

Municipal Utilities: Six months of operational expense.

DEBT POLICIES

The City’s debt policies are reviewed by the Debt Policy Committee and adopted by the City Council. These policies are the Capital Financing and Debt Management Policy and the Policies and Proceedures for Land Secured Financing.

Remember, the City Manager creates these committees and appoints their leaders (heads), who in turn write these policies… as the councilmen twiddle their thumbs and pretend to be important upon their thrones. The City is required to keep a small percentage of future taxpayer and debt obligations – usually 3-6% of the “budget” – which in and of itself is not a bad policy, at least for the taxpayer services they provide. But by calling these fund balances a “reserve” and labeling them as “restricted” funds for future obligations and “debt servicing”, they do not need to report those funds on the budget report, as they are not to be considered in the spendable cash on hand of City of Stockton corporation for the annual budgetary needs of the government and people.

The budget report is simply an edited and cut down version of the full report called the CAFR. Same books, but the budget excludes most of the investment wealth within governmental and non-governmental (enterprise/customer-based) funds. Consider the budget as the City’s checking account for the last year, and the CAFR as the City’s combined checking AND SAVINGS ACCOUNT for the last 162 years…

INVESTMENT POLICIES

The City adopts an investment policy annually that provides guidelines for the prudent investment of the City’s cash balances. In late 2006 with the support of the Budget, Finance and Economic Development Committee, the City Council authorized the Administrative Services Department to contract for investment portfolio services. Effective July 1, 2007, the City entered into an agreement with Chandler Asset Management for management of the City’s long-term investment portfolio. Both the City’s long-term investment portfolio management and daily liquid cash requirements are overseen by the Department of Administrative Services.

And the City Manager oversees, creates, and appoints this department, its head, and the committees that control and audit it. Clearly we can read here the “City of Stockton” has lots of investments that are “long-term” – and they are not capital assets (buildings, equipment, land, etc.). No, these are liquid investments

CASH AND INVESTMENTS

The California government code and City policy stipulate how the City’s temporary idle cash is to be invested, and outlines the policies to assist in maximizing the efficiency of the City’s cash management system while meeting the daily cash flow demands of the City. The average rate of return on investments not held by fiscal agents for the fiscal year ending June 30, 2010 was 3.29%. The estimated effective rate of return on investments not held by fiscal agents for fiscal year 2010-11 is 2.35%. As of December 30, 2010, the market value for the City’s operational reserve and liquid portfolio investments, excluding cash for fiscal agents, totaled $208.5 million.

Additional information on cash management can be found in Notes 1 and 2 in the notes to the financial statements.

What? $208 million dollars in just some liquid asset investments – and that’s not including cash?

How can a corporation claim bankruptcy if it has $208.5 million dollars in liquid assets at market value? Could I also declare bankruptcy if I don’t tell the courts or the people about my savings account and liquid investments?

But that ain’t all folks! For we are just scratching the surface when it comes to the hidden wealth and investment totals of “City of Stockton”. And wait until you see the accounting tricks they use uniformly throughout all governments to hide all of these investment totals!

Let’s keep reading…

(Page XIII) BUDGET CONTROLS

The annual budget serves as the foundation for the City’s financial planning and control. The City adopts a budget on an annual basis, and maintains a system of budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions as to the recording of revenues and expenditure of the revenues.

In accordance with the City Charter, the City Manager prepares and the City Council adopts a budget prior to June 30 for each subsequent fiscal year. Each department is given expenditure targets based on projected General Fund resources, and is required to develop operational plans within these targets to accomplish Council goals. The budget is submitted to the City Council for review 45 days prior to the beginning of each fiscal year.

There you have it.

The government departments are told to work within the “General Fund” and its resources. The General Fund is the main investment fund where most incoming tax and enterprise (customer) monies are transferred into before quickly being diverted to other investment funds for other specific purposes – which cannot be used for general purpose operating expenditures as required to be used by the departments mentioned above.

So to be clear… tax-money is removed from the General Fund and placed elsewhere so that it is restricted from being used for taxpayer obligations.

And it is invested in long-term accounts never to be utilized for the benefit of the people (taxpayers)…

So this is telling you that the budget report only tells the Council and the people about taxpayer money earned through taxation as revenue, and it tells of the spending (expenditure) of that taxpayer revenue for taxpayer obligations and debt. But again, the budget report only refers to the General Fund and some other investment funds, ignoring many of the other enterprise (non-governmental) investment funds that are only listed in the CAFR.

And the government officials must only use the General Fund to ballance the “budget”.

This would be like me giving you an almost empty cup of water and telling you to fill up three other cups of equal size and proportion. Since I already removed most of the water and put it into restricted cups out of sight from the budget committee so that they cannot be used to balance the budget, the committee headed by the City Manager that is in charge of this whole scheme pretends to not have enough water and tells the council (the people represented) that they must approve a bond measure or default on their debt. Meanwhile, millions of gallons of water sit in 100’s of different investment cups that are never reported to the budget committee or to the people.

This is the way all governments work, by law, as recommended by private NGO associations that your elected and appointed officials are members of. And this is happening in every-City, County, State, USA.

Please also note the word “annual” when referring to the yearly budget report. One of the biggest distinctions between the CAFR and the Budget report is that the CAFR is a full accounting of all finances for the entirety of the time that the City corporation has been open. But the budget only focuses on a yearly basis, and what happens within that year. So in the budget report, last years profits are not necessary to include within this years budget, for the budget is only accounting for this year. And this means that the council and Manager are not “required” to use the fund balances of today that were gained yesterday, for they are not part of the “budget”. Yet another obfuscation tool to hide the real wealth of the City. This is also why you see so many graphs and reports in the CAFR making it so confusing – for the current assets must be separated from the past assets so as to create a hand-selected budget from the CAFR. Remember, the budget is only a small selection of what is already written in the CAFR. They are of the same body, but the budget report has no arms or legs, the tentacles of investment capital that are only shown in the CAFR.

CAFR (Budget Controls) Continued…

Budgetary control is at the department level within each City fund, and revisions to increase appropriation authority above a given department’s original adopted budget require City Council approval. Fund Transfers within like categories of the same department require a City Manager approval.

Now you might understand why so many elected City Council members are not familiar with, don’t care about, and don’t use in their jobs the Comprehensive Annual Financial Report. They are mostly on a need to know basis!

Stated above, only the “budget” is considered by the council. The investment accounts which are these “funds” do not require the City Council’s approval for “fund transfers” – only for appropriations for increases of a “department’s original adopted budget”. And so again we see that the City Council is nothing more than a signatory for the whims of the City Manager and his control over all things investment and CAFR. They are about exactly as useful as the United States Congress is – passing legislation without reading it, while knowing that it was written by private associations like the American Legislative Exchange Council, which represents corporations, not people.

And every two or four years, the people of the “City” line up in droves to vote for the next politicians to take their natural rights away and pass laws that serve no purpose other than to tax them and force more exaction upon them – by creating so many ordinances and rules that most people break the law every day without even knowing it!

And the more money extorted, the more money can be invested…

–=–
(CAFR, Page 3)
Management’s Discussion And Analysis (MD&A)
Financial Highlights
–=–

The MD&A is generally a misleading statement by the management of the corporation – in this case the “City Manager” – placed at the beginning of the CAFR so as to throw most people off of the scent of where the real money is hidden within. This CAFR refers to it as the “narrative overview” of the CAFR info.

Of course the narrator is the City Manager, who got us here in the first place!

It is this author’s general opinion that the MD&A is placed into the CAFR to obfuscate and confuse most unofficial readers of the CAFR. The financial information given here is severely contradictory as to what the actual totals are for fund balances and net/gross assets. Such things as “future liabilities”, “Debt Servicing”, and “depreciation” are what I call “creative accounting” – tricks and word magic used to cause the illusion of debt in the midst of large-scale gains in investment fund capital. For the totals presented within this MD&A are the totals that were tallied after this “creative accounting” was applied, in graphs and illusions many pages below this section that do not fairly represent even closely to the actual investment totals of government. And these false totals are presented here at the beginning, covering up the true nature of the massive investment schemes played out by government in the background. These tricks will be talked about in depth as we go through this CAFR…

One of the first items to pop out is this sentence:

“On May 26, 2010, the City Council declared a State of Emergency and directed the City Manager to take appropriate and lawful measures to achieve a balanced budget for fiscal year 2010-11…”

Now I don’t know about you, but that just sent a chill up and down my spine. Remember what happens in a City Council-declared State of Emergency?

What this spells out in so many words is literally financial martial law, where the “laws” are suspended in order to address and combat the emergency.

And the people of Stockton have no clue about this outrageous power that was granted to this City Manager almost a century ago by now-dead relatives and former unwitting “citizens”.

The “Financial Highlights” section continues:

“The assets of the City of Stockton exceed its liabilities at the close of the 2010 fiscal year by $1,136.4 million (net assets). Of this amount, $1,015.1 million is invested in capital assets, net of related debt and 219.4 million is restricted for specific purposes (restricted net assets), leaving a deficit $98.1 million (unrestricted net assets).”

(To be clear… the City Manager states here that $219.4 million equals a $98.1 million deficit, simply because this money is legally “restricted” for other projects in other investment funds other than the General Fund. THIS IS CREATIVE ACCOUNTING!!!)

“The City’s total net assets decreased by $50 million compared to 2009 total net assets. This is the third year in which the City’s net assets have declined. While business-type activities reported a slight decrease of $4.0 million, governmental activities reported a decrease of $46.0 million that amounted to 92% of the total net asset decline. The key drivers in the governmental activities decrease are the $27.0 million increase in net other post-employment obligation (OPEB) retiree health insurance liabilities, $17.2 million in additional net asset deficits incurred in the other insurance and benefits internal service funds, and 1.8 million in deficits in other areas of governmental activities. The continuing downturn of the economy, depressed housing and construction markets and reduced consumer spending have challenged the City’s ability to generate revenues sufficient to meet its employee and retiree benefit obligations.”

Note to taxpayers: This last paragraph should infuriate you. But in case you just don’t get it from reading this gobbledygook, your taxpayer money is being drained into the pension fund system. The government tells you that this is for the benefit of the employees of the City corporation, but the taxpayers receive absolutely nothing in return for their involuntary funding of these pension funds. And the taxpayer money portion that is invested or “matched” into the fund cannot be claimed by the employees for whom it was invested for in the pension system. Taxpayer money stays in the government pension funds even if the employee is fired or quits. Employees have no equity in this money, and neither do the taxpayers who were exacted for it.

Please understand that this states the problem is not that the City owes current or past pension payments to the State Pension Funds, but instead owes money in FUTURE years as “future liabilities” which, by law passed both Federally and State-wide, must be paid into the pension system today so that it can be invested for the future. This is tomorrows debt forced to be paid today (this fiscal year).

Does it make sense to you to go broke today so that investments for tomorrow can be made today? It does if you are a greedy pension trustee or comptroller making profits from this pre-funding model!

Please note that in my documentary, “The Great Pension Fund Hoax”, I covered this pre-funding scheme with the Federal Post Office, which has been borrowing every year to cover the expense of pre-funding its pension obligations and is now in financial trouble and collapse. I maintain today as I did in 2010 when that film was made that this effort is a purposeful attempt to falsely claim bankruptcy for these government entities by the Federal government – whom at any time can eliminate this pre-funding requirement as they created it in the first place. This is just one tactic being used to drive illusionist distress and cause for “financial estates of emergency” in governments that are not in any way in financial trouble. Make no mistake, pre-funding is government’s financial weapon of terrorism.

Notice that the last sentence above states that the downturn in economy, depressed housing and construction markets, and reduced consumer spending have challenged the City’s ability to generate revenue to meet its pension obligations. This is a serious lesson to be learned. Firstly, the government should not be hurt or even effected by the “economy”, as it is supposed to be solely dependent upon taxpayer money by its consenting citizens to fund it and make it bigger or smaller depending on the size of the population. But in modern times, government literally is the economy.

These obligations are taxpayer obligations. The employees pay their contributions automatically out of their own paychecks. The obligation is the matching and higher contributions given by the employees employer – which is government. And what funds government? Taxpayer money. This scheme has played out the the point that just the CalPERS pension fund in California has net investment assets of over $250 billion dollars market value as of last year.

So of the $50 million in decreased assets (deficit), $46 million was strictly due to:

“…additional long-term liabilities related to City employee and retiree benefits, worker’s compensation and other related liabilities.”

“The City reports $75.8 million in net OPEB obligation this fiscal year.”

So it’s not $46 million, its $75.8 million?

And the actual $46 million is not really a current liability, but instead is one that is due in the future with future assets – but by law is being required to be paid today with only current assets?

Sounds like a financial weapon to me…

“The City’s governmental activities report pension assets of $130.7 million for fiscal year 2010. Proceeds of the pension obligation bonds issued in 2007 prepaid the annual required contributions to the California Public Employees’ Retirement System (CalPERS). The increase of $2.3 million in pension assets during the year is due to contributions exceeding annual pension costs, and investment earnings exceeding the amortization of pension assets. Department contributions also fund the pension obligation bonds debt service.”

So we go back to the bond thing. Instead of paying future liabilities with future assets, we borrow money through a municipal bond to pay those future liabilities today.

This is the a look into government’s love, addiction and profiteering from debt.

–=–
Chapter 4:
Debt Servicing: The Promotion of Indebtedness
–=–

So what is this term we keep seeing, called “Debt Service”?

Simply put, it is the servicing of debt! Pretty simple, really. But hard to comprehend because it is completely illogical to the average man – but is the perfect crime for those who benefit in government and in the private sector…

You see, the government is very interested in debt.

It likes debt very much!

Debt is profitable for government, since government borrows for the most part from itself and pays itself back with taxpayer/customer money. It does so despite the fact that it has more than adequate assets to pay for anything it wishes to do today. Instead it creates “Debt Service Funds” to place your taxpayer money into and invest it. It then holds on to that money and services (pays) future debt payments with that money. Thus the money can be labeled as “restricted” funds that cannot be used for other purposes without council approval.

Generally, governments will have more money (liquid assets) in their investment funds than they hold in debt from revenue bonds – the money they borrow from their own future taxation and revenue collections as collateral. Thus, the money just sits in an investment fund and either collects interest or capital gains, and is used by the State commingled funds to invest in Federal securities and international investments to build up the international markets and corporations. We will discuss these State Treasurer’s Investment Funds further into this presentation.

But this begs the question…

If the City keeps taking out loans against future revenues gathered from the people for the City, how will the City ever get out of debt?

This is perpetual debt – creating revenue bonds which take today what would otherwise have been earned (taxed) tomorrow. This would mean that any revenues collected tomorrow, would still be paying for yesterdays bonds, creating the necessity to create more revenue bonds as a “loan” from the future revenues that will be earned the day after tomorrow, which will have to be used to pay for today’s bond (loan) debt.

And this vicious circle is perpetually drawn with every signature of the Mayor and City Council’s pen, keeping the people in an increasingly hopeless state until, like in “City of Stockton”, the economy goes bad, corporations move away, and unemployment skyrockets.

Mismanagement of a City will do that to an economy…

And so we are subject to a government that seeks to put its citizens into debt for future assets instead of paying off all of its debt with today’s assets and never-ever needing to borrow from itself again.

To put this squarely into your comprehension, the City continuously collects revenue and places it into “Debt Service Funds” and “Internal Service Funds”. But this money is invested and thus restricted for this sole purpose of paying future debt, and cannot be used for anything else. Once placed into these restricted investment funds, this tax money is now only able to legally be used to pay for future liabilities as (bond) debt payments. In other words, while millions or billions sit in these investment funds, the debt gains interest and more debt is piled upon old bonded debt because the money that would otherwise be used to pay off all of this debt is legally restricted solely for the purpose of making amortized debt payments for decades to come. If the total balance of the debt to be paid today was $100 million, and the “Debt Service Fund” has $125 million in it today, the government is not allowed because of purposeful legal codes to pay off all of its debt today, but must invest that money in order to allow the interest to accrue over 10-30 years and only make scheduled payments. Government cannot bypass the interest charges (usury) applied to its contracted bonded indebtedness to itself, creating a continuous and uniform flow of profitable interest across the board.

And of course, even with enough money sitting in these funds to “service future debt”, that money cannot be used in lieu of borrowing more money to be serviced later. So government cannot use restricted funds but must borrow and service that bond debt instead. Again, government by its own rules and codes literally cannot pay off its debt, but is instead required to pay the full interest over many decades and be stuck with that “future liability”. This will become a very important part of our “creative accounting” later on – and the best and biggest way that government hides its wealth from the taxpayers… the biggest con of all! Stay tuned…

Again, government loves to be in debt, and creates bonds for this purpose – both to restrict current assets in order to invest them, and to perpetually keep the books (budget) in the red so as to create the false “creative accounting” illusion that the City has no money to pay for today’s budgetary needs.

And you vote for this representation at every election…

And each year new and more creative taxation (exaction) methods and bonded indebtedness are created to extort the taxpayer base in order to flood more money into the government investment scheme – because all the money gets transferred into “restricted” investment fund balances, which cannot be used to pay down or pay off that debt, only to service the amortized payment structure under contract agreement.

Remember, as a general rule, government borrows from itself (other governments and funds).

CAFR continued:

“As of June 30, 2010, the City’s governmental funds report combined ending fund balances of $258.7 million, a decrease of $3.5 million, or decline of 1.3%, from 2009. This is composed of decreases of $5.1 million in General Fund, $1.5 million in Capital Improvement Fund, $33.1 million in Redevelopment Agency Fund; offset by increases of $12.9 million in the Public Facilities Impact Fees Fund and $23.2 million in Other Governmental Funds.”

But wait a minute, just above the City stated that it had only $208 million in investment funds, excluding cash.

What gives?

How many “other” governmental and non-governmental funds are there in City of Stockton corporation?

You will find contradiction after contradiction in these financial statements. These contradictions are designed to confuse you and send you away frustrated and unsatisfied, in the hopes that you will just give up trying to read another CAFR ever again.

Do not let that happen. Remember, we are still reading from the Managements Discussion and Analysis section of the CAFR, and haven’t even begun to explore the actual hidden wealth that is excluded even from this section of the report, and that of the “creative accounting” mentioned above.

Your logical and reasonable conclusion is to start reading this report from the top down, as would make sense with any document or novel that wishes to tell a true story, and build to upon that story until total clarity is reached by the climax and end of that writing.

But the CAFR is not designed in this way, for the CAFR is specifically designed to mislead the reader at every turn. The CAFR is not intended to be read by the average citizen.

The CAFR is split into several sections that are completely dependent upon each other for total comprehension of the subject and figures at hand, and yet are completely separate and out of order within the report. Again, this is a purposeful subterfuge with the goal of confusion and utter frustration in your mind.

Stay tuned, for this purposeful obfuscation will turn into clarity when all aspects of this CAFR are considered and explained in layman’s terms.

In fact, the CAFR goes on to state here on (page 4) that this is the case; that this MD&A is incomplete and must be explained in greater detail within the other sections of the CAFR.

It states:

“This Management’s Discussion and Analysis is intended as an introduction to the City of Stockton’s basic financial statements. The basic financial statements are comprised of three components: 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to the financial statements. In addition to the basic financial statements, this report includes other supplementary information.”

Hmmm… so these are only the “basic” financial statements. So there must be more “advanced” explanations in here too, right?

“Government-wide Financial Statements

“Government-wide financial statements are designed to provide readers with a broad overview of the City’s finances and information about the activities of the City as a whole, in a manner similar to a private-sector business. The Government-wide financial statements include 1) the statements of net assets, and 2) the statement of activities. Both of these government financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include public safety, public works, libraries, parks and recreation programs, and general governmental services. The business-type activities of the City include the water utility, wastewater utility, stormwater utility, central parking district, golf courses, as well as the solid waste operation.

The government-wide financial statements include the governmental activities of the Redevelopment Agency (Agency) and the Stockton Public Financing Authority (SPFA).”

Ah, so there are two financial statements being presented in the same Comprehensive Annual Financial Report?

We have one for governmental services to taxpayers and one for government’s businesses (enterprises) where the people are customers of government.

Now why would governments across the country put out more than one report? Wouldn’t it be the most logical course to simply place all assets into one easy to read statement so that one and all of the citizenry can easily comprehend the massive investment wealth and transfers of that wealth, that build up the corporate structure of America and the world and allow government to expand its organized crime into foreign lands even as its own people are starving and destitute, and while those governments are now declaring bankruptcy – all in the name of FREEDOM???

Oh, I see… government doesn’t really want the people to know what it’s doing with their hard-earned taxpayer money, and so government creates many sets of financial accounting books, only showing the taxpayers the governmental funds and balances while keeping the “non-governmental activities” – here referred to as “business activities” – and their fund balances out of the public’s comprehension. No wonder this darn report is so confusing. The people aren’t meant to grasp what it says. If they did, they’d probably get very angry and revert back to the good old days of hanging criminals in the public square from the nearest tree.

And so we now know that government not only keeps two sets of books – the budget report and the CAFR – but we also now know that government also keeps two kinds of people – one as a taxpayer for governmental activities that are funded by taxpayer money and shown in the budget report as non-profit ventures for taxpayers; while at the same time, those same people as taxpayers wear another hat as “customers” of the government corporations in their for-profit “business activities”, which are not necesarily reported on the budget report because they are not funded by “taxpayers”, but by “customers”.

You see, government has created legal trusts and monopolies on what it calls its business-type activities. Water, sewers, storm-water, parking, golf courses, solid waste operations, and many other “services” are what taxpaying “customers” have come to expect from their government. In fact, all of these infrastructure assets of government were built with taxpayer money. But they didn’t stay in the taxpayer budget as governmental activities, and instead were placed by government into non-taxpayer funded “business activities” called enterprises. In this way, government now has the only water, sewer, and other utilities available to the taxpayers, and has the legal authority to charge “service” fees and collect for-profit revenue for their monopolistic utilities and other for-profit businesses.

Lotteries and alcohol monopolies are other forms of this organized crime. What used to be in prohibition and run by the mob is now a legal organized business enterprise of government.

And if the “taxpayers” don’t like it… well, too bad. They must pay their bills to these utility and business/service monopolies of government as “customers” of government – wearing both hats at the same time – or they might find themselves without power, water, gas, or other necessities of life. And they might even suddenly find themselves without a roof over their heads, since government allows itself to steal a forced customer’s home if they don’t pay their “service” fees and bills. These services, which are essential services provided by the government corporation – and which are essentially “essential services” provided at the barrel of a municipal police department’s gun – have little to no competition. Therefore, these private “separate” for-profit business entities are free to raise their rates and fees at their own whim. No competition equals no choice. And no choice equals no quality control. For the government writes the laws which control the uniformity and quality of the services provided by its own utilities. And so the taxpayers – as “customers” – can only complain to the very owners, operators, and regulators of these government monopolies – their own government.

And the controlled media portrays “off-grid-ers” as lone nut-balls that might just crack one day, hoarding food and water, utilizing the sun for power, getting their own water from a homemade well, and having the nerve to quote the constitution for America – the land now covered by the United States corporation and its may jurisdictions, which legally protects these municipal corporations like “City of Stockton” and allows them to do exactly what it is doing now – declaring bankruptcy while hiding 100’s of millions of dollars in business-type investment funds and assets.

–=–
Chapter 5:
Government-Wide Financial Statements, Or,
How To Hide Half Of Your Wealth In One Single Report!
–=–

So let’s go forward into the report to (Page 40) and take a look at the Government-wide financial statement as it is described here.

This graph is split up into three sections – Assets, Liabilities, and total Net Assets.

The total Net Asset section is the difference between the Assets and the Liabilities sections. This is basic addition/subtraction accounting.

On the surface this seems like a basic accounting chart of what this corporation is actually holding in net assets. But when we look closer, we can see our first good example of “creative accounting”, designed to hide the actual value of the current assets as of this particular day, June 30, 2010, as reported on this end of fiscal year chart.

In other words, this chart is designed to show exactly what the balance of this government’s assets were on this particular day – June 30, 2010. This is the purpose of the CAFR – to show current asset balances as of the end of a single fiscal year, which covers all previous years as well for a total accounting of wealth and investment. Future assets to be received and future payments to be made should not be considered, since this is supposed to be an accurate look at the financial position of this City as of, no sooner than, and no later than June 30, 2010.

So let’s see what it says…

Under the ASSETS section we can see such things as cash and investments, restricted cash and investments, interest receivable, loans to property owners, pension assets, capital assets, ect. In other words, these are the assets that “City of Stockton” was either in possession of or had loaned away and will get that money back with interest in the near future. This is not future assets in the form of revenue that will be earned or fees to be charged, but are the actual current assets for this day at the end of Fiscal year 2010. Note that “loans” can be called in at any time, and so their value is included as a current asset – real assets that are on loan.

Now let’s look at the LIABILITIES section, and see if any of that “creative accounting” is taking place.

Under this section, we have accounts payable and already accrued expenses, already accrued payroll and benefits to be paid, already accrued interest (on bonds), and pension obligations for the year. Note here that these items are fairly reported current liabilities for this fiscal year, and I have no issue thus far with City of Stockton’s reporting of its actual current liabilities.

But there is one other thing in this LIABILITIES section that is perhaps the ultimate deceit when it comes to government financial reporting. And every government uses this trick of creative accounting to hide trillions of dollars across the country.

That creative accounting trick is what is listed here as “Long-term liabilities“.

——————————————————————————–

“Total Assets”………………………………………$2,096,730,000

“Liabilities…”

Due within one year“……………………..$33,048,000

Due in more than one year“…………$796,458,000

“Total liabilities”……………………………………..$960,302,000

“Total Net Assets”…………………………………..$1,136,428,000

(Total Net Assets after all current and future liabilities are subtracted)

——————————————————————————–

There it is – creative accounting in the flesh! Do you see how this works? Let’s break it down so that everyone understands this corruption.

Remember, this Comprehensive Annual Financial Report (CAFR) is a statement of current assets as listed for the end of fiscal year, June 30, 2010. Thus, the assets listed are supposed to represent the actual fund and any other balances of assets for that particular day. The assets section reflects the capital assets and cash and investments of “City of Stockton” that were either held by the City, invested elsewhere, or are loaned to other entities as of June 30, 2010. Therefore, they are real, tangible liquid assets in the fact that they can be called in and cashed in for their listed “market value”.

The “Liabilities” section represents money that is, in the very short term (within a month), already designated due to transactions within the fiscal year of this CAFR report for either debt payments or current liabilities.

But the “Long-term liabilities” section represents payments that will be made in the future – some of it 30 years or more into the future!!!

And yet, here they are listed along side the current liabilities. And here they are affecting the reported totals of the current net assets of the City on this date. These future liabilities are not tangible or liquid. In fact, they do not even exist yet. They are no different than your own personal future credit card or loan payments. And most importantly, these future liabilities will be paid with future assets – what government refers to as (future) revenues.

But when we look at the assets section, we can see that no “long-term” assets or “future revenues” have been listed to offset those future liabilities of debt payments.

Remember those debt servicing funds that are restricted to paying future liabilities? While those fund balances are actual current assets held by the City of Stockton in liquid investments, these “future liabilities” are in no way a part of the “assets” of today.

To clarify this creative accounting even further, let’s consider your own checking account…

1) Let’s say that you have $10,000 in your checking account. This is your “current assets”, and what you make your budget from.

2) Now lets say that you have a car payment of $500 due this month. This is your current liabilities.

3) On your budget, you know that after all current liabilities are paid, your Net Assets are $9,500 dollars. This is your total net assets for this day. These are your “current” assets.

4) But let’s say that it is tax time, and you are reporting to the IRS (a private corporation of government) your net assets. What will you do so that you don’t have to pay taxes on your $9,500 of income that you earned (your revenue) that is so obviously sitting right in your checking account and so easily verifiable by the IRS (or by looking at government’s CAFR)?

5) The answer is to do exactly what government does… except in your case, it is illegal and you will be fined and go to jail for your own version of “creative accounting”.

6) And so you create future liabilities that can be added to your current assets today by taking your future car payments and adding those to your current assets. Brilliant!! At $500 per month, it will take exactly 19 payments at $500 dollars to equal your total loan (bond) amount of $9,500 dollars. And so you take your future car payments and report them as “future liabilities” to the IRS, which brings your current net assets that you are reporting as of today on your IRS form down to $0 dollars.

In effect, you have just reported to the IRS that you have no money in your checking account – despite the fact that it is holding $9,500!

7) If you wanted to gain even more legal benefit from this creative accounting style like government does, you could claim other future liabilities such as future home loan payments, future electricity, water, and gas utility payments, future movies you are going to see, etc. And so you could report to the IRS that you have an extra, let’s say $80,000 of debt payments as future liabilities.

8) And just like “City of Stockton”, you could also declare bankruptcy based on your future debt while completely hiding your current $9,500 dollars of assets, and of course, any savings or investments you might also be holding.

Welcome to government’s world of creative accounting. Or you could call this extremely well-organized but legal crime.

The only difference between government’s creative accounting and your own personal ability to do the same is that you will personally go to jail for defrauding the government as the surety of your tax ID (person), while government wont. Government is a limited liability corporation.

After all, government isn’t going to punish itself, no more than a king would, and no matter how much the taxpayers/customers cry foul.

But then, the appointed City Manager is just doing his job according to State and Federal CODES, and according to the corporate charter of  “City of Stockton”. They might even use the excuse that the voters voted for the charter and for the Council almost 100 years ago (without mentioning it had been amended over 100 times), lending credibility and support to this whole criminal scheme.

But we can’t just blame the City Manager for this crime of omission and creative accounting, for the City Council and the Mayor are also complicit in this legal, organized, uniform, criminal activity. After all, the Council must sign their name to these CAFR reports. The Council must approve what the City Manager and all of his appointed departments and department heads do. And it was the council that just approved plans for Chapter 9 bankruptcy proceedings for their own municipal corporation.

What is it government tells us… ignorance of the law is no excuse

Be it purposeful or ignorant, the City Council and Mayor of “City of Stockton” have approved and signed their names to a fraudulent scheme to defraud the people who reside in “City of Stockton” in bankruptcy proceedings and to its bondholders.

Well I say to the Council and every City official involved, “Ignorance of the people to your organized crime and lies by omission is no excuse”.

The people should collectively throw you all in jail for fraud – from the court judge to every offending appointed and elected officer of Stockton Municipal Corporation. And then tomorrow, the people of Stockton can pay off all debt and never have need for a bond again.

Oh, but we need to show that the money and investments are there to do this. Ah yes…

So, if we were to properly report the Government-wide Net Assets, removing the creative accounting of “future liabilities”, the graph would look more like this:

——————————————————————————–

“Total Assets”…………………………………………$2,096,730,000

“Total liabilities”…………………………………….$130,796,000

“Total Net Assets”…………………………………..$1,965,934,000

(After all current liabilities are subtracted from current assets)

——————————————————————————–

Conclusion: “City of Stockton” is hiding at least $829 million dollars worth of cash and investments via its “creative accounting” of the Net Assets in its Government-wide financial statements.

In other words, to hide its current physical assets of today (June 30, 2010), City of Stockton is using future (virtual) payments to hide current (actual) assets without including the future revenues (taxation and fees) that will pay for that future debt.

To put this into perfect clarity: If every person or household in America were able to utilize this type of financial reporting, using future car, credit card, and mortgage payments as current liabilities to hide their current assets, then probably 70-80% of all Americans would qualify to declare bankruptcy. And if you added the “national debt” onto this as a future liability, and for that matter all other taxation and “customer” fees and charges that will be charged to us in the future, and if we the people were allowed to report that future taxation as a liability without reporting the future assets we will earn that will actually pay for those future liabilities, then that figure would rise up to about 99% of all people in America that are legally bankrupt according to the Government Accepted Accounting Principles (GAAP) as referred to in this CAFR report.

Do you think this is a coincidence… that only the 1% would not be bankrupt and would be able to pay for the national debt? Do you really?

–=–

Noting that we were just looking at the actual financial statements of City of Stockton, we will now Go back to (Page 7) within the MD&A.

But please not that what is reported in the MD&A (Manager’s Discussion and Analysis) as compared to the actual financial statements within the CAFR 35 pages away is what the Manager tells the people after such “creative accounting” principles have been implemented within the financial status of the City. In other words, the MD&A is on of the last sections to be written, for the Manager cannot lie to the people and the council until all of its investment wealth is hidden by such things as “future liabilities”. And this is why understanding of the entire structure of the CAFR is so important, and why one should not be fooled by the “discussion and analysis” of the City Manager…

And this is why a bankruptcy proceeding should not be allowed to proceed on the word of an appointed and corrupt City Manager and without full disclosure of the CAFR.

1 + 1 = ???,???,???

We are now reading the “GOVERNMENT-WIDE FINANCIAL ANALYSIS” section back within the Management’s Discussion and Analysis.

Here, we find something else very interesting…

This graph is entitled “City of Stockton’s Net Assets”. It shows the difference in net assets between fiscal year 2009 and 2010. And though in its budget report, “City of Stockton” claims to be in a deficit, we see a different picture presented on the government-wide statement.

In the “Assets” section, current and other assets went up by over $104 million dollars, while capital assets gained in total value by over $88 million, for total assets of over $192 million more than fiscal year 2009. Does this sound like the City is in financial trouble?

But wait, we must also consider the “Liabilities” section and subtract those from the current assets.

So let’s take a look at these liabilities and see if we find any creative accounting going on here as well…

Long-term Liabilities also increased by over $304 million dollars.

And so total liabilities increased by over $241 million dollars, thanks to the “creative accounting” of future liabilities.

And so, because of this creative accounting, the “Total Net Assets” of “City of Stockton” corporation are being reported here at a decrease of over $50 million dollars compared to fiscal year 2009. That’s current assets being effected by future liabilities without consideration of the future assets that will pay for those future liabilities.

Once again, we can see the lie. This corporation has turned a $192 million gain in current net assets into a $50 million loss in current net assets. And you ain’t seen nothing yet!

Continuing on (Page 7) the CAFR also explains to us how to understand this little morsel of accounting trickery:

“Net Assets of the City”

“Net Assets serve as a useful indicator of a government’s financial position. In the case of the City of Stockton, assets exceed liabilities by $1,136.4 million ($1.1 billion) at the close of the fiscal year, which is a $50 million decrease, or 4.2%, from 2009 total net assets. Of this decrease, $46.0 million is attributable to governmental activities (taxpayers) and $4.0 million to business-type activities (customers)…”

Isn’t it funny how the major deficits always seem to occur within the taxpayer budget, as opposed to the for-profit business ventures and enterprise operations (business-type activities) where taxpayers are “customers”?

Here we see that creative accounting being put to use again in a blanket statement. Remember, this 46 million “deficit” and decrease was due from future liabilities of pension payments that must be paid today. These types of statements are criminal and disturbingly deceitful once we actually look at the true financial statements that they refer to.

Assets exceed liabilities by over $1 billion means the City had a loss of $50 million how Orwellian can you get?

Continued…

“Capital assets… (e.g. land and easements, buildings and improvements, infrastructure, intangible assets and equipment)… traditionally account for significant growth in the City’s net assets. The City uses these capital assets to provide services to the citizens; consequently, these are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be liquidated to reduce these liabilities.”

Did you catch that?

What a perfect system of organized legal crime!

This just told you that your taxpayer dollars are used to pay for the “capital assets” (buildings, equipment, and such) that are used to provide taxpayers the “services” that the government provides and reports in its “business-type activities” financial statements. And yet, the “resources” collected by these for-profit sub-corporations of “City of Stockton” can and will not be used to pay for their construction or purchasing. No, that debt that was accumulated by “City of Stockton” to build these capital assets must be paid out of the “taxpayer” base – the “governmental activities” revenues that are collected as taxation. The fees and other forms of revenue that are charged to taxpayers as “customers” of these government businesses and utilities who utilize and profit from these capital assets (buildings, vehicles, etc.) are not used to pay for their construction or purchasing.

Is this clear?

Imagine if the taxpayers collectively paid for every single product that is purchased by Walmart and subsequently placed back on the shelves of Walmart to be re-purchased by the taxpayers as customers of Walmart. And also imagine that the taxpayers collectively paid for the construction of each Walmart building (capital asset) with their collective taxation (property tax, sales tax, etc.). And then imagine that these taxpayer monies were not in cash, but instead, all of this was purchased with future taxation in the form of debt as “revenue bonds” to be paid out of the taxpayer revenues that will be collected in the future.

Of course, that will mean that taxes will have to be raised in order to pay for future regular governmental taxpayer services because most of the future taxation has already been pledged (in reserved or restricted funds) to pay for the debt accrued for the taxpayer funding of Walmart (capital assets).

Now imagine that when the taxpayers go shopping at Walmart, none – I repeat, NONE of the money collected from the taxpayer customers for the purchasing these products of Walmart corporation or any sub-corporate hubs of Walmart and its products would actually go to the paying off of the taxpayer debt that was used to construct and stock those Walmarts and their shelves in the first place.

Replace the name Walmart with the name City of Stockton non-governmental business-type activities, and your imagination just became a reality!!!

Carrying on with the CAFR:

“An additional portion of the City’s net assets, $219.4 million or 19.3%, represents resources that are subject to various external restrictions on how they may be used. These two segments of capital assets and restricted assets amount to more than 100%, reflecting the fact that, in aggregate, the City’s resources are entirely committed in capital assets or are restricted in their uses. The net result is a deficit $98.1 million in unrestricted net assets for the City.”

There you have it… “City of Stockton’s” taxation revenues (taxes collected) are entirely committed to paying for its capital assets (for-profit enterprises) or are restricted for other future liabilities.

Welcome to Walmart sir, may I help you find what you are looking for?

Yeah… how the hell do I get outta here?

Well sir, you could leave our wonderful Walmart enterprise, but you’ll soon discover that wherever you move to; no matter what city, county, or state you choose, you’ll find a friendly Walmart there to greet you and take your money for the collective. Have a nice day!

No matter where you go… no matter how free you may think you may be… you will always be in debt to the corporation and its sub-corporations. Sales tax, property tax, gas tax, licensing fees, tickets and citations, and a host of 100’s of different taxation methods will always be there to greet you wherever you go, just like those Walmart greeters.

And you’ll certainly find that “the City’s net assets… are subject to various external restrictions on how they may be used”, and that your hard earned money taken by taxation will not necessarily be used to benefit you the txpayer.

–=–

Moving through the MD&A, we see page after page of bad news. Decreases here, lost revenues there, less interest earnings here, bad conditions there, and more taxpayers paying less taxes everywhere. Instead of reading these to you here; like a 1950’s science fiction story that is oh so unbelievable with our new knowledge of this Manager’s creative accounting methods, I’ll just leave you with this thought…

If a business is doing that badly on behalf of the people… why in the hell do the people keep supporting it and bailing it out with bonds?

We wouldn’t do that with Walmart!

Though we did do it with the banks…

–=–

On (Page 21) we see a perfect example to prove the point that future liabilities will be paid with future assets.

The CAFR states:

“The Redevelopment Agency Fund total fund balance deficit of $6.2 million at the end of the fiscal year includes $12.4 million in restricted fund balance for ongoing and future capital projects, $2.7 million in committed fund balance, and a deficit unassigned balance of $21.3 million. The deficit unassigned fund balance is a result of the prior year’s level of available cash of which was dedicated for the Marina project of which was completed in this fiscal year and its asset was capitalized. The deficit unassigned fund balance will be funded by future property tax increment revenue to be received in future years.

We must ask again, why is a future liability that the City admits will be paid with future assets being reported as current liability against current assets?

And perhaps you might have noticed that the City is reporting that it has a $6.2 million dollar deficit, while in the same sentence stating that it has $12.4 million, $2.7 million, and $21.3 million in current liquid investment fund balances. What this is really stating is that the Redevelopment Agency Fund has $46.4 million dollars in investments (enough to cover any deficit), but that money is legally bound by restrictions to be used for other things that don’t even exist yet. This money is restricted for “future projects” that will represent “future liabilities” but that aren’t real yet… Now that is what I call creative accounting!

Now, let’s talk about Proprietary Funds, more often called enterprise funds and service funds.

“Proprietary Funds”

Proprietary funds consist of enterprise funds and internal service funds. The proprietary funds’ financial statements provide additional detailed information than found in the Government-wide financial statements. Both presentations are accounted for on the full accrual accounting basis. Each funds’ financial transactions, both near-term and historic, is provided in the statement of net assets and the statement of revenues, expenses and changes in net assets.

Wait, wait, wait a minute here. We already found two reporting methods… first we had the limited “basic financial statements”, and then we had the more broad view in the “government-wide financial statements”, so now you’re going to tell us that there is an even more detailed report also included within the Comprehensive Annual Financial Report? Come on, really???

Yep. It’s written right there, in black and white:

“The proprietary funds’ financial statements provide additional information than found in government-wide financial statements”.

So then… what we just looked at was incomplete? It wasn’t really a “government-wide” overview of all funds in government?

Nope.

You see, ‘City of Stockton” just gave you a big clue as to the difference between what it reports to the people in the budget and what it actually holds in its funds as reported in the CAFR. Do you see the magic word…?

The word “accrual” means the adding together of interest or different investments over a period of time. Here, the City states that the balances on these enterprise and service funds are now going to be reported even better, for they will be reported based on the accrual method of accounting. It then states that accrual accounting means that the fund balances are shown for both the current fiscal year and for all of the years prior to that fiscal year (near-term and historic).

In other words, it is the full accounting of that fund since its inception in the 1800’s.

Imagine checking your bank account balance without considering over 99% of all past transactions on your account. There would be no starting balance to go by, so how could you know the balance after your current transactions? Answer: you wouldn’t. Unless you had a second or now third set of detailed record books (financial statements) that you keep out of sight from public consuption.

And so now we finally see a full disclosure of all facts pertaining to something tangible in the CAFR. We see that even the fund balance sheets have more information and creative accounting within them, meaning that the figures used in the “Government-wide” financial statements are pulled from these totals after their own creative accounting was already applied! This is the importance of having multiple methods of reporting, all of which “trickle down” into the next statement after having been stripped of some of the vital information each time it falls into a new, less accurate report, until finally it falls into the hands of the public in the budget report and the people have no clue what the hell happened to all of their hard earned taxpayer money.

And now we see the purposeful obfuscation and confusion set into place within the CAFR to drive people away without reading further into it further and discovering things like this truth in reporting.

It then states that this complete historic accrued information can be found in the “Statement of revenue, expenses, and changes in fund balances”. But this graph isn’t here on this page or even the next ten pages. Instead, this chart is in the back part of this long CAFR, where hopefully no uninformed citizen will get far enough past the pitfalls and roadblocks of the MD&A and the Government-wide financial statements to comprehend what this chart even says.

So we must jump from (page 22) to (page 150) to begin to see the actual full accrual basis accounting of “City of Stockton’s” investment fund balances. And these proprietary and other funds don’t actually even appear until (page 166) of the CAFR! Surely most people would have given up trying to understand all of this by page 40, and would have just been confused when skimming through these complicated charts in the back of the CAFR. And this is exactly the goal of government accounting.

But if you’ve gotten this far into this presentation, then I’ve got to figure that you must want to learn how to read the true financial accounting of government, and how to quit being government’s bitch!

–=–
Chapter 6:
How Investment Funds Changed The World
–=–

What is a fund, anyway?

To understand this question, we must go to a different section of the CAFR report. On (Page 44) we find the section called and describing the “Fund Financial Statements“. This is not the actual detailed financial statements, but rather an explanation of what these funds are and what is within them. You see, it is beneficial to descriptively report these investment funds in a separate report, though still within the full CAFR, so as to utilize more creative accounting principles approved by government. By separating the more detailed descriptions and charts form the other financial statements in the CAFR, the basic financial statements can then report through the budget report to the people only the final balances of these funds, after all creative accounting tools have been utilized to hide the actual current balances of the funds themselves with long-term liabilities, depreciation, capital losses, and other misleading restrictions – utilization of the “trickle down” waterfall effect.

For our purposes, and so as to understand the fund structure of all governments, let’s consider the fact that government only really has one bank account. But this one account is sub-divided into many different partitions – very much like a single disk drive can be partitioned into multiple separate storage spaces, though all of these are still on the same single disk. Or, for those not so computer savvy, we can picture it like a single office space that can be partitioned with “cubicles”, each work space accomplishing different or separate tasks for the operations of the whole office space., but still all happening within one single space (account).

And so government takes all revenues from (taxpayers and customers) and first places that revenue into its General Fund. Let’s consider the general fund the entryway to a house. From this fund we have access to all other hallways and rooms in the house, and so government can transfer anything it wishes from the General Fund to any other fund, or room in the house. It can then close the doors to those rooms and hang a sign on the doorknob that says “reserved” or “restricted” for something else, or “assigned” for future debt and liabilities (debt servicing). These doorways are often one-way doors into these fund account partitions, and once the transfer is complete, the money stays in that fund account “storage room” and is invested into the many stock and bond markets available to the government by State and Federal laws until the day it is actually spent. Sometimes, these funds can be locked away for a very, very long time… in 30-50 year bond or loan contracts or other types of investments. And as we’ve discussed, government has passed laws that force those bonds to be paid in scheduled amortization payments that cannot be paid off early.

But when these funds are reported publicly to the people each year, many of the hallways to these storage rooms are blocked off from public viewing. Creative accounting is used here to hide the true value of these fund partitions, so as to create the illusion of a deficit on the annual budget report to the people. Meanwhile, the unobtrusive and clear view of all of these partition fund rooms can only be found in the Comprehensive Annual Financial Report. Of course, most people are to busy working three jobs in order to support the rising taxation that keeps being placed on them to keep this organized legal crime syndicate called government going with its investment schemes, not to mention the increased utility and other service fees that the government corporation has monopolized and passed legislation to allow increased and ridiculous rates, service charges and fees for these essential “services” at the barrel of a gun.

It is also important to note that the funds we are talking about here – the ones that the City of Stockton is hiding from the people as it declares bankruptcy – the government does not consider these investment fund fair market values as a taxpayer money surplus. This is a critical point to comprehend, for the entire investment scheme is dependent on this law.

These fund balances certainly sound like they are a taxpayer money “surplus” as they appear in government “investment funds”, which can and should be used for “governmental” operations to support taxpayer needs. This would be a logical conclusion by most people, and this illusion of government is most people’s opinion. But then, most people aren’t organized legal criminals out to create massive investment wealth at the expense of other people. We have to remember that part as we look into these fund balances. And we must not ever create empathy towards government that any of this is not well-organized criminal behavior. We must be ruthless and keen, not giving in to feelings that innocence of any kind has taken place. When another man lies to you, especially one who has been place into the public trust, under no circumstances should your trust ever be given again to that man.

Interestingly, it is Walter Burien’s plan to change and create new laws so that no trust is needed within government. For intent is only as good as the law which requires it. Thus, removing these creative accounting standards of practice and exemptions from law and making the actual person (politician) in public trust responsible and punishable for any and all criminal activity they commit, no criminal would even think of entering into government. Imagine a world like that…

Much of this stated investment fund revenue is not in the taxpayer realm or used for “taxpayer services”.

A “Golf Course Fund” for instance, benefits the golf course alone when put into financial application. A golf course is a private sub-corporation of the main “City” or “County” municipal corporation, which is often called an “enterprise” operation. It usually charges a fee for the use of its infrastructure – thus it is operating in a for-profit capacity, collecting fees from the taxpayers who funded it’s construction. Stadiums and sports arenas are other examples of this taxpayer-funded infrastructure that is often sold or placed into public private partnerships with private corporations, who in turn benefit from what the taxpayers paid for and built by charging fees for use of our own infrastructure.

Government has “governmental” and “non-governmental” functions, referred to in the financial statements as business-type activities. Government municipal corporations run two types of businesses; one as the corporately chartered government for the citizens/taxpayers using taxpayer money (where tax surpluses are put into governmental funds and invested but are restricted in their use – meaning they are no longer surpluses in a legal sense), and the other as a for-profit enterprise corporation that sells products and services to people, who also just happen to be taxpayers. These two forms of “government” are separate, and therefore, they are reported separately within the financial cornucopia of financial and budgetary statements. This perpetuates the lies of government by omission. And this is why “City of Stockton” is declaring bankruptcy – a lie by omission made legal by Federal and State Government Accepted Accounting Principles (GAAP).

“Governmental” is defined as taxpayer activities.

“Non-governmental” is defined as non-taxpayer business activities.

The difference?

Government funds are for “taxpayers”.

Non-governmental funds are for “customers”.

Governmental funds are non-profit.

Non-governmental funds are for-profit.

How do you hide profits in a non-profit government? You keep those profits within investment funds. Just as you will never profit from your stock or other investments until you sell that stock, government never shows a profit because it never actually liquifies its investments. Instead, it borrows against the equity of its own investments, and loans credit to other municipalities and corporations through combined governmental agencies for which it mutually invests these gains. This is how government borrows from itself. And this is how your not-for-profit government hides massive profits legally from the public’s comprehension.

And so, huge deficits are shown on the budget report in governmental funds while the non-governmental, enterprise and business-type funds are flourishing. But these enterprise and service funds are not designated for the benefit of the taxpayers, only for the non-taxpayer funded infrastructure and enterprise operations that sell “services” to anyone who buys them as “customers”, not just the taxpayers of the “City”, “County”, “District” or “State”.

Thus, while there may indeed be a bit of a taxpayer money surplus in the governmental funds, government does not necessarily consider the non-governmental funds in that equation as “taxpayer surplus”. As these investment funds are reported at the fair market value of the investments they hold, the coinciding investment returns are also not taxpayer money surpluses. Government earned that money, not the taxpayers. And those surpluses are actually only “potential” surpluses due to the fact that they are reported mostly as investments that are usually restricted or designated to future liabilities and are reported again at fair market value of investment. These are liquid investments, but are not tangible unless liquidated. Thus, they would need to be liquidated before they could be used as a cash (taxpayer) surplus. So the balances of these funds are generally transferred between funds without being liquidated, and they are locked up in the little partitions never to be used to truly benefit the taxpayers.

They are used to increase governments capital assets – to build and improve the already existing business-type, for-profit, customer-based infrastructure that charges fees for its use. All other funds, as reported on the budget report, go to public infrastructure like free roads, parks, snow removal, and other non-fee based services provided by the governmental (taxpayer funded) portion of the City, County, State, District, etc…

Government knows that it must always be perceived by the people (citizens) as a non-profit entity through media and through its budget report, and so the financial accounting is obviously made confusing and almost impossible for the average taxpayer to understand what the heck is happening in these financial reports and within the government’s for-profit ventures. Investment funds were the answer to this dilemma, as these funds could be designated as restricted funds and off limits to taxpayers for budgetary obligations, thus used for other purposes besides taxpayer services.

And perhaps the most important concept to understand here is that with the snap of a finger, any investment fund can be created by any government for any legal purpose. In other words, new partitions can be placed any time they want and any amount of tax money can be placed within.

What this really means that at any time where the government has an actual legally designated surplus of taxpayer money (unrestricted funds), the government can literally create a “liability” account that is then credited with this tax surplus – removing it from the unrestricted fund balance of the General Fund and partitioning it off as a restricted fund for future use (unrealized future liabilities). And so in one easy and painless step, any taxpayer surplus (current asset) can be instantly transformed into a future liability through the use of this investment fund structure, even if no liability yet exists.

We will discuss this in more detail later. But a good example of this would be the City of Stockton investment fund called the “Redevelopment Fund”, where money is held and restricted for future governmental and non-governmental buildings to be built, even as the homeless population in Stockton increases daily from foreclosures and just general economic depression.

–=–

Now that we have a fairly clear distinction and understanding of this investment fund structure, and the difference between governmental and business-type activities, let’s take a look at just how much investment wealth is sitting in these government funds for “City of Stockton” corporation:

Now instead of going to the actual fund financial statements, let’s take a long trip to the back half of the CAFR again, to (Page 143). Here, we find the section called “Required Supplementary Information“, which is followed by many pages of charts showing the “Combining And Individual Fund Statements And Schedules“.

On (page 147) we read:

BUDGET

Enterprise and internal service funds are accounted for on a cost of service (net income) or capital maintenance measurement focus. The City is not legally mandated to report the results of operations for these fund types on a budgetary comparison basis; therefore, budgetary data related to these funds has not been presented.”

Proving what we have learned thus far, we see here an admission by the City that it is not required by Federal and State law to report its non-governmental business-type activities (enterprises) with regards to any profits (gains) in the revenues it collects to the taxpayers on the budget report. In other words, City of Stockton will not dip into its own private enterprise funds to help support the taxpayer budget or the taxpayers themselves. It is declaring bankruptcy on its selectively reported budget and future liabilities – not these enterprise funds and their liquid investments and current assets.

The report then goes on to say:

“If expenditures exceed appropriations, the City Manager is authorized to transfer budgeted amounts between line items within any fund. During the year, the City Council approves supplemental appropriations and, by resolution, has also authorized the City Manager to transfer fund balances to applicable appropriation accounts, or to transfer between funds, when necessary to continue purposes approved by the City Council in the current year, adopted budget, or subsequent action. Amounts reported as final budget in the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – on a Budgetary Basis include amendments authorized throughout the year.”

Wow! So much was said here in such unclear rhetoric. Let’s break this down in common people-speak:

This contrived statement just told you that the Council has the authority to transfer amounts within these restricted funds in any way it sees fit. And so the Council may at any time use any governmental or business-type funds to support any deficit or pay of any debt that it legally can. This is simply stating that the rule-makers can change the rules. The Council is only tied by its own chains (statutes). And so, full circle, an amount equal to or greater could in fact be transferred back into the General Fund by one of the customer-based business-type funds today for the so-called deficit that is being reported in the budget report of “City of Stockton” corporation. And suddenly, the City would be out of debt.

And yet, the City Manager, the Mayor, and the City Councilmen from municipal corporations all over the country will continually use the excuse that their hands are tied; that the fund balances are restricted for their declared purposes, and that they will not transfer funds from business-type funds to budgetary governmental funds to benefit the taxpayers and the budget deficit or to avoin bankruptcy by paying off all debt.

Can you believe that government actually passed laws that force City’s to sustain and “service” debt instead of paying it off?

Do you wonder what would happen if a City suddenly decided to break the law and actually pay off all bonds and other debt and be free and clear of all of this bureaucracy and create a thriving economy without the need for most taxation as it exists? Would they go to jail for breaking the law?

Even Orwell must be turning over in his grave…

It then tells us that, during the 2010 fiscal year, it has indeed re-appropriated and transferred fund balances between funds when the City Council approves such transfers and re-appropriations.

And finally, it reaffirms that the financial statements regarding the Fund Balances are reported in two ways… one regarding the Budget report and one regarding the Actual balance of the funds after these transfers and re-appropriations are conducted with the approval of the council.

He who has the gold makes the rules…

We find the same language about Debt Service Funds:

“Formal budgetary integration is not employed for the debt service funds because effective budgetary control is alternatively achieved through bond indenture provisions.”

Though hard to understand, this is a fancy way of stating that through creative accounting practices, “City of Stockton” does not report to the taxpayers an easy to comprehend line item as to how much investment wealth is within these Debt Service Funds.

Perhaps this is a good time to explain what the term “Debt Service” actually means.

Imagine if you will that you have $100,000 in your savings account, earning a measly 2% interest rate.

Now imagine that you have $50,000 worth of credit card and other debt, which probably isn’t too hard to conceive for most Americans now days. And let’s pretend that you are paying an interest rate on your credit and debt of an average of about 15% per year.

And finally, let’s say that you have set up your savings account with that $100,000 in it to be a “Debt Service Fund”, specifically for your $50,000 worth of credit debt.

Now, over the next 30 years, you will be paying only the minimum payments required to pay off your debt. And you’ll only be using your Debt Service Account (savings account) of $100,000 in order to pay that debt.

Here’s what would happen…

Over a 30 year amortization payment schedule, on your $50,000 of debt (revenue bonds and loans), you will make monthly principal and interest payments of $632.22, for a total of 360 payments of that 30 year time-frame. By the time you pay that loan (bond) off at the end of that 30 year period, you will have paid a total of $227,599.92, with the interest paid totaling $177,599.92.

But to offset this insane interest, you have set up your debt service account. So let’s see what happened with this investment fund (your savings account)…

Over a 30 year amortization payment schedule, on your $100,000 savings account which you have designated solely as your “Debt Service Fund”, you will earn monthly interest of approximately $200 per year, for a total of 30 years. By the time you have paid off your debt using this savings account, your savings account would have disappeared sometime between 10-15 years into the debt servicing period (the 30 years of debt) – unless you kept adding money into that account (debt service fund).

If you would have left that savings account alone, allowing it to accrue interest at 2% per year, the most that investment fund (savings account) would have earned was $82,200 in interest, for a total principle and interest on your debt servicing fund of $182,207.84 after 30 years.

While the interest rate differences might be exaggerated in this example, this is a perfect example of what Debt Servicing accomplishes.

When government services a debt, it invests municipal corporation assets for future payments on that debt, instead of paying off that debt today!

And once again we must be clear that the profiteer of all of this interest is wither another government agency or a bank or corporations that is funding the bond. So in no way do taxpayers benefit by this legally binding process of debt servicing, and if it isn’t obvious to you by now, this is legal organized crime that extorts from all the people of the United States.

In the example above, you personally could have paid off your $50,000 debt with $50,000 of your $100,000 savings account balance (total of all fund {partition/storage room} balances of one account), and still would have had $50,000 to use for taxpayer services.

So why would any logical and sane person (or government) wish to service a debt over many years when it could pay off that debt today with its available funds?

Ah… understanding the answer to this question gives us an understanding of the whole government investment scheme.

You see, government promotes debt. In fact, government has a virtual love affair with debt. It hides its assets from the taxpayers in its projected budget report specifically for the purpose of creating more debt – because that gives government the perfect excuse to increase taxes and, in the end, attain even more debt through municipal bonds and other tax-based instruments!

The goal is to show that the budget for taxpayer services is continuously in a deficit, despite the fact that each year governments grow in scope and size within their capital assets and investment funds as shown in the CAFR, and thus this charade shows that government is 100% justified in the taxpaying citizen’s eyes for government’s rampant and continual raising of the citizen’s taxes. And through coercion and legal theft tactics called foreclosure and eminent domain, the government gets what it wants. It will simply take your home if you do not pay your taxes.

And it is important to note that for this game to be played out, governments must continuously promote “economic growth” as the excuse for the need for more revenue. Expansion requires taxation. Thus, you will never hear a government state that it has achieved perfection and now must just maintain what capital assets it already has. Instead, it will tear down and continuously rebuild and improve buildings and infrastructure that do not need to be torn down or improved.

In short, government can never be satisfied, for satisfaction would put a halt to increased taxes and to the entire investment scheme.

Are you starting to understand the game?

Are you getting angry yet?

If not, let’s continue on (Page 148) of this CAFR report, and get a further explanation of the purposeful incompleteness of the budget report. Still under the “BUDGET” section we read:

“Budgetary Basis of Accounting”

“The City adopts budgets each fiscal year on a basis of accounting, which is different from accounting principles generally accepted in the United States of America (GAAP).

The Statements of revenues, expenditures and changes in fund balances have been prepared on the modified accrual basis of accounting in accordance with GAAP. The schedules of revenues, expenditures and changes in fund balances – budget and actual – on a budgetary basis have been prepared on the budgetary basis, which is different from GAAP.”

LOL! Now I don’t know about you, but just this one sentence would make me fold up this report and place it gently into my nearest incinerator. No wonder the good taxpaying people of America don’t read these things!

What this paradoxical statement is uniquely attempting to tell you is simply that the budget report is reported to the taxpayers differently than the other financial statements as they appear in this CAFR. Statements are reported, though they are modified to again obfuscate the true net and especially the gross asset presentation – which is A-OK with your 100% private association rules of government accounting called GAAP. And the schedules are presented in two forms – budget report totals and actual totals – but are presented to the taxpayers only on the budgetary basis, which is again not according to GAAP. As confusing as this sounds… rest assured it is absolutely designed to confuse you.

The report goes on:

“Certain funds of the City contain capital projects, grant projects, loan programs or other programs that are budgeted on a multi-year or project length basis. The amounts of the projects and programs budgeted on a multi-year basis are significant compared to the items budgeted on an annual basis; therefore, a comparison of budget to actual for the fund would not be meaningful. As a result, such funds are excluded from budgetary reporting.”

And finally, we have the admission here by government that future assets are not reported on the budget report, despite the fact that future liabilities are reported and will be paid by those future assets (funds). And we see here that there is indeed an admitted and “significant” difference between an annual report on these funds (as in the budget report) and that in the progressive past and future “multi-year” reporting of the entirety of these future asset funds (CAFR).

And with that conclusion, we have reached the “comprehensive” presentation of “City of Stockton’s” investment fund balances for the end of fiscal year 2010.

–=–
Chapter 7:
Fund Financial Statements
Where All The Money Is Hiding
–=–

Starting on (Page 151), we get a glimpse of the actual foundation of this government corporation – the comprehensive disclosure of its investment funds.

Please remember… these are all in one account (investment fund) that is partitioned into the following individual funds for the purposes of restricting these monies for specific purposes other than taxpayer obligations and needs.

First up:

NONMAJOR GOVERNMENTAL FUNDS (taxpayer or governmental-type):

Type 1 – SPECIAL REVENUE FUNDS – “Special revenue funds are used to account for specific governmental revenue sources that are restricted, committed or assigned to expenditures for specified purposes other than debt service or capital projects.”

Special Grants Fund – $196,000

Solid Waste and Recycling Fund – $2,139,000

Gas Tax Fund – $181,000

Measure K Streets Sales Tax Fund – $4,450,000

Measure W Public Safety Tax Fund – $814,000

Special Assessments Fund – $10,435,000

Low- and Moderate-Income Housing RDA Loans Fund – $51,760,000

Community Development Block Grant (CDBG) Programs Fund – $32,585,000

Neighborhood Stabilization Loan Program Fund – $7,843,000

Housing Grants and Loans Program Fund – $1,490,000

HOME Program Fund – $24,580,000

Emergency Communication (Fund) – $0.0

City Administration Building Fund – $1,815,000

Development Services Fund – $1,116,000

Other Special Revenue Fund – $5,344,000

.

Type 2 – DEBT SERVICE FUNDS – “Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest on long-term debt.”

Redevelopment Agency Debt Service Fund – $12,405,000

Stockton Public Financing Authority Debt Service Fund – $4,092,000

.

Type 3 – PERMANENT FUND – “The Permanent Fund reports resources that are legally restricted to the extent that only earnings, and not principal, can be spent. Permanent Fund resources help support designated arts, recreation, library and public safety programs.”

Miscellaneous Fund – $2,002,000

.

TOTALS – ALL NONMAJOR GOVERNMENTAL FUND BALANCES:

TOTAL FOR 2010 – $163,247,000

TOTAL FOR 2009 – $140,012,000

TOTAL INCREASE/DECREASE IN ONE FISCAL YEAR – $23,235,000

–=–

In the midst of economic depression, recession, compression, and everything else –sion, here we have the investment funds of City of Stockton making investment gains of over $23 million dollars. Does this sound like a bankrupt corporation to you?

After the descriptions, we have two charts that show net assets for these funds both individually and as a group of “Nonmajor Governmental Funds”. The amounts listed above for each fund are for the second chart entitled,

Combining Statement of Revenues, expenditures and Changes in Fund Balances – Nonmajor Governmental Funds For the Year Ended June 30, 2010 (with comparative totals for the year ended June 30, 2009)

This chart shows the fund balances as compare to the totals of last fiscal year, and lists either the gain or deficit compared to the last reported Net Asset totals for each fund balance.

If we look at the “BALANCE SHEET” chart directly above this chart, we see that “City of Stockton” reports actual total fund balances at $176,566,000 – over $13 million more assets than what was on this chart. They just can’t help themselves can they…?

We also see that over $24 million of the liabilities affecting these fund balances are in the form of “Debt Servicing“, which as we remember is in fact a long-term, not current liability.

Creative accounting strikes again!

And so we must also add this to our total current total of net assets bringing these fund balances to over $200 million dollars in liquid investments.

–=–

(Page 166) brings us to the listed “NONMAJOR ENTERPRISE FUNDS” (business-type investment funds):

Solid Waste Enterprise Fund – $-141,000

“To account for residual activities as a result of final transition and outsourcing of garden refuse collection services.”

Downtown Marina Enterprise Fund – $-231,000

“To account for resources and activities associated with the improvement, operation and maintenance of the Downtown Stockton Marina Facilities.”

Golf Courses Enterprise Fund – $318,000

“To account for resources and activities associated with the improvement, operation and maintenance of the Swenson and Van Buskirk golf courses.”

.

TOTALS – ALL NONMAJOR NONMAJOR ENTERPRISE FUND BALANCES:

TOTAL FOR 2010 – $-54,000

TOTAL FOR 2009 – $477,000

TOTAL INCREASE/DECREASE IN ONE FISCAL YEAR – $-531,000

–=–

At first glance, this seems like a strange chart. Why are the enterprise operations doing so poorly?

Of course the answer is as it always will be the creative accounting of “non-current liabilities“…

The “Combining Statement of Net Assets” chart on (Page 166) shows us that noncurrent liabilities are in the form of “loans from other funds“, meaning that this government is loaning money to itself and creating a liability to be paid back to itself, and are listed as:

Downtown Marina Enterprise Fund – $500,000

Golf Courses Enterprise Fund – $764,000

If we once again take these long-term liabilities away, suddenly we see a whole different picture.

If $1.264 million in “future assets” that will pay for $-531,000 deficit of future liabilities are added together, then we technically have “future net assets” of $733,000.

If I take $100 dollars out of my savings account and place it into my checking account, do I really owe myself $100 dollars?

If you are government, the answer by law is yes. And you create a liability that can be used to obfuscate even more fund balances. Imagine if I told the IRS that I owe myself money so I can’t pay the IRS… LOL!

But in order for us to see the full picture, we must remember one of the most important concepts in the universe…

–=–

“For every action there is an equal and opposite reaction”
–Sir Isaac Newton

–=–

So what is the opposite reaction to one government fund borrowing money from another fund in the same government corporation out of the same investment accounts (savings account)?

These loans will be paid back!

This means that while one fund is showing a deficit, the other will show an asset – just not on the budget report! When one asset investment fund borrows assets from the other, no assets have been lost – for those assets will eventually be paid back!!!

In other words, while one fund reports a liability in the form of total loan payments to be paid in the future, the other fund should be reporting an asset in the form of those same loan payments being received from the other fund back to it.

Remember, these funds are like one giant checking account that is partitioned into individual sections of the whole. Together, these funds are just pieces that make one government as a whole – separate but equal…

–=–

(Page 169) brings us to “INTERNAL SERVICE FUNDS

“Internal service funds are a type of proprietary fund used to report any activity that provides goods and services on a cost-reimbursement bases to other funds, departments, or agencies of the primary government and its component units, or to other governments.”

It is important to define the legal term “proprietary” here before we move on.

Proprietary – (adj.) 1. belonging to a proprietor. 2. being a proprietor; holding property: the proprietary class. 3. pertaining to property or ownership: proprietary wealth. 4. belonging or controlled as property. 5. manufactured and sold only by the owner of the patent, formula, brand name, or trademark associated with the product: proprietary medicine. 6. privately owned and operated for profit: proprietary hospitals.
Proprietary – (noun) 7. an owner or proprietor. 8. a body of proprietors. 9. American History; the grantee or owner, or one of the grantees or owners, of a proprietary colony. 10. ownership. 11. something owned, especially real estate.

Origin: 1400–50; late Middle English  (noun) < Medieval Latin proprietārius owner, noun use of Late Latin:  of an owner, of ownership. See propriety

Source: Random House Dictionary, © Random House, Inc. 2012.

UNITED STATES OF AMERICA – …5. The United States of America are a corporation endowed with the capacity to sue and be sued, to convey and receive property

Source: Bouvier’s Law Dictionary, 1856

COLONY – n. 1. A company [i.e. legal corporation] or body of people transplanted from their mother country to a remote province or country to cultivate and inhabit it, and remaining subject to the jurisdiction of the parent state; as the British colonies in America or the Indies; the Spanish colonies in South America.

Source: Webster’s 1828 Dictionary.

So when the government corporation of “City of Stockton” (a sub-colony of the United States colony corporation), or any municipal or other government corporation refers to these funds as “proprietary”, they are referring to them as property – and to the municipal corporation as owner of that property. And so the funds that support those “proprietary properties”, which government calls “component units”, are set up as investment funds to fund government owned capital assets with rightfully taxpayer monies, and then charge those taxpayers fees to use those so-called “public” properties. They are not people-owned, but are municipal corporation-owned.

Now, let’s have a look at these proprietary funds and the “component units” they serve, without serving the people…

(Page 170)

“The City’s Internal Service Funds include:

General Liability Insurance Fund – $-3,526,000

Worker’s Compensation Insurance Fund – $-32,511,000

Employee Health Insurance Fund – $-6,024,000

Retiree Health Insurance Fund – $-75,854,000

Retirement Benefits Fund – $10,845,000

Other Benefits and Insurance Fund – $-3,541,000

Vehicle Fleet Equipment Fund – $10,423,000

Computer Equipment Fund – $4,909,000

Radio Equipment Fund – $1,974,000

Other Equipment Fund – $258,000

.

TOTALS – ALL INTERNAL SERVICE FUND BALANCES:

TOTAL FOR 2010 – $-93,047,000

TOTAL FOR 2009 – $-47,353,000

TOTAL INCREASE/DECREASE IN ONE FISCAL YEAR – $-45,694,000

–=–

These funds, utilized to internally service proprietary component units of the “City”, are surprisingly in a deficit. But really, this is no surprise at all…

Listed again here as future or “noncurrent” liabilities, we see compensated absences, self-insurance claims and adjustments, Capital lease obligations, bonds payable, and net OPEB (pension) obligations.

Total long-term or noncurrent (long-term) liabilities are reported here for 2010 at – $248,986,000.

Total for all liabilities, including current and noncurrent liabilities are reported at – $272,328,000.

And so the legitimate “current” liabilities that actually affect the fiscal year’s total net assets for these proprietary funds is actually – $23,342,000.

Therefore, the actual value of net assets as of June 30, 2010 for “City of Stockton’s” proprietary fund balances equal a positive balance instead of a deficit of $203,292,000 – the difference between the reported net assets (including long term payments) and the actual current net asset balances of these funds.

And so we see the continuous creative accounting lie being uniformly told throughout this entire report.

It is important to note here that this chart also reports future assets as “noncurrent assets”. But we must understand the difference between these two types of noncurent descriptions. For liabilities, this noncurrent description means future payments to be made on future debt, and in no way represents a current liability against current assets. Inversely, a noncurrent asset is an actual asset held by this government that has been loaned out or invested with other governments or within its own books (transfers between funds). Therefore, a noncurrent asset represents an actual asset that is either restricted in its use or is being held by some other entity. It is a tangible asset. In this case, of the $143,414,000 in “noncurrent” assets listed under this category, $132,173,000 of that amount are listed as “pension assets”.

Therefore, since these assets are within the pension fund system and invested in tangible assets, securities, or bonds, they are included on the net asset balance as real liquid assets that have restrictions of availability for the immediate future. But understand that these represent real liquid assets, whereas future liabilities represent future payments made with future earned investment return or collected revenues. One is tangible and the other is intangible. One is an asset and one is a ghost.

Other future assets or “noncurrent” assets include restricted assets (cash and investments with fiscal agents), advances to other funds (which are all the same [partitioned] bank/investment account/fund, government making loans/bonds to itself and then charging itself/taxpayers the interest), differed charges (insurance or other payments that have not been made to the corporation but are owed to it by its employees/contractors), Capital assets (referring to real assets in the form of currently owned vehicles, computer equipment, radio equipment, or other equipment that are considered capital assets owned by “City of Stockton” that are not liquid), and accumulated depreciation (another creative accounting principle which lowers the over-all value of total net assets by showing that these non-liquid capital assets are worth less than the previous years – thus decreasing the stated overall value of all assets reported. Automobiles and their blue-book values are a good example of this, which inherently go down in value each year.

Capital asset depreciation accounts for $-31,232,000 of these noncurrent assets – reported as a liability here.

And so we could give this government a bit of credit and state here that a few million of these reported “noncurrent” assets are actually not liquid as of June 30, 2010, or could not be called in as a loan on this day.

All in all, this is just more creative accounting designed to hide 100’s of millions of dollars worth of assets from the taxpayers of “City of Stockton”.

–=–

Moving to (page 78) we come to another type of investment fund.

AGENCY FUNDS

“Agency funds are a type of fiduciary fund used to account for assets held in an agency capacity for parties outside the City. The resources of these funds cannot be used to support the City’s own programs.”

Agency Funds are another creative accounting tool. For despite the fact that these monies are invested by this City corporation and receive both interest and other investment returns, this City corporation can legally state publicly that it is invested on behalf of other entities or government corporations. In this way, the profits and investment returns can once again be legally removed from the total presented “Net Assets” statement to the citizens of “City of Stockton”. Once again, we present assets as liabilities, by presenting positives as negatives through creative accounting. War is peace; love is hate; assets are liabilities, and profit is loss…

In the quite long chart entitled “STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES”, we see that the government corporation reports these Agency Funds as both an asset and a liability at the same time. Each asset balance is canceled out by a liability balance of equal amount as the balance is owed elsewhere. So despite the fact that these Agency funds show that these balances represent “cash and investments”, some of those with “fiscal agents”, and the fact that they also show an investment/interest return, meaning that these funds must be held for a period of time in order to collect that interest and investment return, the “City” corporation lists all of these agency funds as having a zero balance through the creative accounting practice of holding onto these funds for other agencies.

To put this into perspective… if you get caught tomorrow holding 50 pounds of marijuana or cocaine in nicely packaged and preserved packages, you’d be arrested and carted off to jail. But in governments case, these municipal corporations and districts can pretend otherwise through legal exemptions. If government were caught with the same amounts of pot and blow, they would tell the police and the courts that they were simply holding onto these drugs “on behalf of a friend” in another municipal or public corporation, and therefore, since those drugs are ultimately repayable and owed to our friends, we aren’t actually holding these drugs. Our drug possession is at a zero balance. See, even though we have an asset of 50 pounds of drugs, our balance sheet shows a liability of 50 pounds of drugs. Therefore, we have no drugs. You can’t arrest us for drug possession, because you can’t prove that we are in possession of drugs!

This is creative accounting gone wild!!!

But remember, the government makes the rules and enforces its own rules. Usually, the government places loopholes in all rules it makes, so that it can continue with its organized crime and never punish itself. What a world…

In this way, tax benefits are created for the actual owners of these funds, keeping them in the non-profit world of government accounting and ensuring the safest insured form of investing anyone could ask for. So one might call these Agency Funds (agencies of the Stockton or California State government) nothing but a tax shelter for a for-profit venture by a non-profit government.

Note that these are not private entities, but all other government agencies.

So how much money does City of Stockton have in someone else’s “Agency Funds”?

Agency Funds are listed here on (pages-177-179) as follows:

Land Secured Financing Agency Fund – $58,489,000

Employee Withholdings Agency Fund – $380,000

Area of Benefit Fees Agency Fund – $12,335,000

Public Facilities Fees Agency Fund – $1,147,000

Miscellaneous Agency Fund – $6,770,000

All Other Agency Funds – $438,000

.

TOTALS – ALL AGENCY FUND BALANCES:

TOTAL FOR 2010 – $79,559,000

TOTAL FOR 2009 – $86,166,000

TOTAL INCREASE/DECREASE IN ONE FISCAL YEAR – $-6,607,000

–=–

So, while these Agency Funds are showing a decrease in total fund balances, this does not in any way reflect a decrease in assets of the City corporation. These funds are special purpose funds that are held for other entities, remember. So no net asset in the total investment funds of the government-wide statements should be inferred here.

Also, listed in the Total Liabilities section, we can see that $78 million out of that $79 million is listed as “Deposits and other liabilities”. Again we see government treating an asset as a liability, despite the fact that it is holding and in possession of these funds and actively investing from them, and despite the fact that it is making a gain off of holding these funds.

But only a little over $1 million is actually “currently” owed to other governments or listed in the current payable to to other accounts “Accounts Payable” section. The rest will continue to be held as an asset by this City corporation until those assets actually become liabilities – when this government is required to actually pay those fund balances to these other entities. Until that point in the future, these are assets. But to hide their value as assets held by “City of Stockton”, the fact that at some unknown time in the future these assets will have to be given back as liabilities is exploited in the financial reporting of these assets.

This time-honored tradition of cross-pollination of the holding of other government agencies’ funds clandestinely is nothing if not a common practice of a corrupt government.

–=–
Chapter 8:
Everyday Life On The Municipal Farm
–=–

Now, there are two other important sections that need to be covered here. One is entitled the “Notes To The Financial Statements” section, and we’ll get to that in a moment.

But for now, let’s take a quick look at the “Statistical Section” starting on (page 180).

“The Statistical Section provides financial statement users with additional historical perspective, contest and detail to assist in using the information in the financial statements, notes to financial statements, and required supplementary information to understand and assess a government’s economic condition.

The Statistical Section is required by the Governmental Accounting Standards Board (GASB) to be reported in the following sections:

Financial Trends Information

Revenue Capacity Information

Debt Capacity Information

Demographic and Economic Information

Operating Information

You may wish to read the descriptions for each item, but there is also a very simple way to understand what is in this statistical section – by comparing it to a farm!

If one is planning out the future for a group of people (a body politic), such as within such a corporate municipality as “City of Stockton”, A “City Manager” must take into consideration many different aspects of those people and what it will take to manage those people as both taxpayers and customers.

This is also done by farmers…

The life expectancy of the different forms of livestock is taken into consideration, as well as the amount of water, hay and grains it will take to manage successfully and profitably those livestock. In a cow’s life, for instance, it will have a certain number of prime years that it can be exploited for its milk, fertilizer, and finally its meat. Its total consumption of hay, grains, medical supplies and attention must be accounted for in order to determine its profit potential, as well as the other services for which the farmer must utilize on its behalf for the health and well-being of that cow. The sufficiently-fed cow never knows that his government (the farmer) is conducting these types of census studies on the herd, which is based on many generations of experience, research, and record keeping, as well as the introduction of new variables and environmental changes. And so the cow is never really concerned with what the farmer is doing when he is out of the sight of the herd. The cow can smell and is disturbed by the blood, but has never been witness to the slaughter. The cow knows deep in his rather large heart that something is deeply wrong with its disposition, and this is transferred to his multiple stomachs in the form of butterflies with a foreboding confusion. But he is entertained both sexually and mentally enough to not think about it too much.

The ratio of cow to hey and grain is very important within the farmer’s corporate structure – the farm. If a cow uses more of the farmer’s services than that cow will fetch for its current and future milk and meat profits, the farmer will likely thin the herd, or the economic conditions of the farm may worsen. Of course, the farmer is there to make a profit. And so much of the income that is raised by the farmer for the sale of the labor and production of those cows is used for other non-cow services and investments.

The infrastructure must be maintained, and new fences and barns must eventually be built. The farmer sometimes gets grants and loans from government programs as well, which come with contractual requirements to use that money for certain governmental purposes, most of which do not benefit the cows, but instead will somehow benefit the government and the local farmer together, creating gains upon these investments. But for the most part, the farmer sets aside different funds on his balance sheet in order to maintain different parts of the farm that need repair, always with the eye to create new infrastructure that will benefit the farmer, while maintaining the basic poverty-level livelihood and welfare of the majority of cows. By setting up investment funds for the future building and construction of new farm and personal infrastructure, this means that the cows don’t benefit from that money (the fruits of their labor) today. Of course, most of the farmer’s money goes into the farmer’s own personal empire; his home, his food, his credit payments, and of course to purchase new toys for his own pleasure.

But the cows don’t really see this happening from through their government built walls and fences, and the cows feel that there are always greener pastures just around the corner. And so the conditions for which the cows must live is maintained, though not necessarily improved on a permanent basis. For there just wouldn’t be enough capital gains to keep things running if the farm infrastructure was always in its best possible condition. In other words, the farmer would be sinking all of his money into cows, and using none of that wealth to benefit his own lifestyle and non-farm business ventures. While some areas of the farm are occasionally improved, others go to waste. The farmer is of course responsible for the upkeep of the farm in the public trust of the citizens of the farm (livestock), and uses some of the profits made on behalf of the cows to maintain the poverty level of the cows. But the cows don’t complain much, and think to themselves, “well, that’s just the way it is. Always has been, and always will be…“, and on to seemingly greener pastures the heard roams. But they stay within the jurisdiction of the farmer, for the farmer owns the property of the cows – though the cows ignorantly assume that the barn and other cow things are their own. Of course, the cows know full well that the farmer can come into their yard at any time and eminent domain anything he wishes, and the cows have no one but the farmer to complain to about this tyranny by the farmer. The problem is that the cows speak only conversational cow, and do not know the secret legal and accounting/legal language of the farmer. To them it sounds no different that the chirping of a bird or the barking of a dog.

In the end, in order to run a successful farm corporation, a farmer must know the average lifespan, the average income (potential as well as actual) of each cow, the mental and physical state of each cow on average and if they are employed in a particular task, the value of the property and possessions of each cow, the number of children (future cows) that the farmer will be able to extract income from, the number of elderly cows over a certain age (useless eaters) that the farmer must pay retirement and medical benefits to in order to sustain life, the likely income generated from each cow, and the average cost to service each cow without dipping into the profits and financial gains of the farm corporation. A farmer must consider these cows not as sentient lifeforms with their own free will, but as for-profit commodities to be utilized and extorted for the profit potential of the corporation, as well as the mother corporation.

After all, the main tenet and goal of a corporation is always to make a profit.

And so, the statistical section is a necessary part of the financial statements of each government corporation – each farm. The farmers must collect this type of data about all of its commodities so that it can ensure the livestock welfare system remains intact; welfare being the system of services provided in order to keep the people alive in order to tax them and generate income from the services provided to them.

Insurance companies, banks, and other corporations also create these statistics on their “customers” in order to ensure their current and future profit potential as well. Of course, for some reason, the poorer the person, the more interest is charged and the harder it is to get credit. Those who need help must pay a higher price for that help, while those who don’t need help get tax-breaks and credits.

Is the model of the farm so different from the model of benefits and entitlements granted by government in the City, County, State, Pension Funds, etc?

On (page 194) we see a chart called “TABLE 6 – ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY“.

Listed here is the government’s statistical valuation of the people’s land, personal property, and improvements made to that land and property. For 2010, “City of Stockton” places the value of $18,461,195,000 on all combined land and property.

Note here that this chart shows that in 2001, that same land and property was only estimated to be worth $8,631,886,000.

So the assets of the people of City of Stockton has increased by 125% in just 11 fiscal years?

I wonder how that happened…

Ah, in the notes section it states that property taxes are limited by Proposition 13 from the year 1978, when the people of California voted to limit property tax to a maximum taxation rate of 1% of the assessed value of the property being taxed. And it states that each year, the assessed value of property may be increased by an “inflation factor” (limited to a maximum increase of 2%).

Have you ever wondered why property values have blown sky high in California, and indeed around the country?

Is it because California is so special? Is it because the materials to build a home in California are more expensive than in other States?

No… It’s because unwitting Californians voted to make a public law that created a situation that says: only if property values are increased can government get more tax out of the people and their property.

Tax, tax, and more tax.

Instead of ending the legal organized crime that is a property tax, the people of California were fooled into allowing government to justify its property tax collection at the barrel of a gun – and even allowed it to be 1% of the value of their property! What fools the people can be. Of course government will wish to create inflationary pricing on the home market so as to collect more property tax. And so the housing bubble was created across America – and the property tax potential was and is incredible!

In the next graph on (page 196) the notes state that:

“Proposition 13 (Amendment XIIA to the California Constitution) limits the taxing power of California Public Agencies. The California legislature enacted legislation to implement Article XIIIA (Statutes of 1978, Chapter 292, as amended) providing that local agencies may not levy any property tax except to pay debt service on indebtedness approved by voters prior to July 1, 1978, and that each county will levy the maximum tax permitted of $1.00 per $100.00 of full assessed value.”

So let’s think about this for a moment. The voters approved the government to raise property taxes on the governments bonded indebtedness. And the voters approved that each county should go ahead and levy the full 100% possible property taxation on all personal property to pay for that bonded indebtedness in order to service that debt.

Is it possible that we just answered our previous question?

Is this yet another reason why government doesn’t pay off all of its debt immediately with its current assets – simply because the voters were foolish enough to give government the incentive not to pay off its debt, but instead to “service” that debt? Do you mean to tell me that government purposefully stays in debt because it can collect more revenue from the taxpayers according to the more money it owes in revenue bonded indebtedness? Are you serious?

No wonder property values have gone through the roof.

No wonder government creates new future revenue bonds to pay for things that it already has current assets to pay for.

Government can only raise property taxes to pay for its bonded indebtedness, folks. You made that happen. So what do you expect government to do? Of course, in order to raise more revenue in the form of property tax (extortion), government is going to create as much unnecessary bonded debt as it can, even though it doesn’t need a bond

And on a side note, since property values are only assessed when that property is bought and sold, no wonder the trend of turning houses around by quickly buying and selling them has been made so popular by the media, with dozens of reality shows showcasing this business of turning homes. Not only is government getting sales and other taxes regarding the selling of each home, but it is also able to reassess the properties value as it artificially inflates the real estate market! And when the artificial market bubble collapses a bit due to these ridiculous tax value assessments, people are either stuck paying high taxes (since the property can’t be reassessed and nobody wants to buy for what it was worth when you bought it) or they can sell that house for less than its worth (which brings a whole other set of taxation, profits, and capital gains taxation to banks and other government and private institutions).

The volatility of the real estate market is very profitable for government – problem, reaction, solution… In fact, it continues to build new homes by securing them with bonds even as thousands upon thousands of older homes sit for sale or are vacant across the City or County. This too is easy to explain. New homes equals new property taxes. New bonds equals new debt, which equals new debt servicing which equals even more property and other taxes.

Another note on (page 198) states:

“Per agreement with San Joaquin County, the County provides the City of Stockton with 100% of the amount owed to the City of Stockton for secured properties, regardless of collection status. In exchange, the County is entitled to 100% of revenues collected.”

What is a secured property?

Also, on (page 190) the notes state:

“Beginning fiscal year 2006, land secured financing was removed from capital projects and debt service funds and are reported in the Land Secured Financing Agency Fund.”

Remember, Proposition 13 (Amendment XIIA to the California Constitution) limits the taxing power of California Public Agencies, EXCEPT for debt servicing. Therefore, as a business model, it would make sense to take land-secured financing away from capital projects funds and to place them into an “Agency”. In this way, “City of Stockton” may charge property taxes on this debt servicing without requiring a new amendment voted upon by the people of the State! For the City corporation is required by the taxpayers to levy the maximum 1% property tax assessment to cover the transferred capital projects debt servicing, but only in “Agencies”, not in “funds”.

The people fell into a humongous fiscal trap! And government is just doing what the people unwittingly voted for…

Also note that on (page 190), the notes state:

“Some prior year balances may have been restated from previous CAFR’s to reflect new GASB implementations or prior period adjustments.”

“Note: Beginning with fiscal year 2006, land secured financings were removed from government-wide financial statements. For comparative purposes, 2005 balances have been restated to reflect this change… The City of Stockton implemented GASB S-34 for the fiscal year ended June 30, 2002; information prior to that is not available.”

Now I shouldn’t have to say this again, but why would any entity need these types of rules and regulations for the selective and deceiving presentation of its financial position – unless it was not really interested in letting the people know what its actual financial position actually is? In short, the government constantly changes its reporting requirements in order to hide trillions from the people in ever more creative ways; trillions that would otherwise be used on behalf of the people that are instead used to further governments grip on almost the entirety of what we still refer to as the “economy”. When all the cards are laid on the table, and all government investments are considered, government for all intents and purposes is the economy.

A good example of this is the chart on (page 199) entitled “WATER SOLD BY CUSTOMER TYPE”.

Here we see that government is indeed selling something that it has laid claim to; a natural resource that flows freely from the sky and through the veins of the Earth, and that was once enjoyed by all the people of earth freely, without pain and suffering, and without extortion through exaction and taxation.

The four “Customer Types” are listed as Residential, Institutional, Commercial/Industrial, and Irrigation.

As I explained earlier, you are a customer and a taxpayer – two different hats.

By far, government’s biggest “customer” is its residential base of taxpayers – the ones who paid for the infrastructure of this municipal corporation’s dams, flood-gates, wells, pipes, fire hydrants, sewers, and every other facet of the City corporation’s infrastructure that “City of Stockton” utilizes to block and control that very water from flowing naturally and freely to all peoples – and instead selling it to the people who funded that infrastructure. And they even pass statutes that make it illegal to utilize that water by digging your own well. Even the farmers must pay for their irrigation water (untreated water) that feeds their crops and feeds their livestock – just as government’s residential-commodities as “customers” must pay for their drinking water, so to must other farms pay for this privilege to obtain otherwise free-flowing water to live and thrive.

We can then go to the next chart on (page 200) and get a good idea of what happens when a government corporation has a monopoly on one of its services that it provides by force to the taxpaying customers who need it.

In Table 11, titled “WATER AND WASTEWATER UTILITY RATES – LAST TEN YEARS”, we can see those monopolistic effects in action. For the reaction of a monopoly without competition will without exception be tyrannical price increases.

In 2001, the monthly base rate of treated water for City of Stockton customers was $13.79 per month, with each additional 100 cubic feet (748 gallons) of water involuntarily costing the taxpayers as “customers” and extra $0.67 cents.

As we flash forward 9 years into 2010 fiscal year, we can see that the cost for treated water in the City of Stockton monopoly has reached $17.65 per month, with each extra 100 cubic feet costing $1.02.

This represents an almost 30% rise in the fees charged for this business activity of government for its taxpaying customers, charged as a “service” at the barrel of a gun.

And in the notes listed below this chart, it states that “The Utility charges an excess use rate above normal demand”. So expect to pay extra for committing the crime of excess water usage…

We also see that wastewater charges have raised by about 12% per year since the 2001 fiscal year – this being a product that comes right from the ground without any form of processing.

It reminds me of free dirt…

–=–

(Page 209) gives us a look at the importance of government’s tracking of every facet of every citizens life and financial status. Based on the population of “City of Stockton”, Table 17 is entitled “DEMOGRAPHIC AND ECONOMIC STATISTICS”.

This chart lists the status of the City corporation’s herd of citizens, including their personal income, per capita income, unemployment rate, labor force, total housing units, household average income, medium family income, and school enrollment.

You see, in order for your financial officers and city planners, as well as the City Manager and his appointed staff, to figure out what a tax burden the City corporation can force involuntarily upon the populace of “City of Stockton”, these overlords must take into consideration the facts presented through these census statistics. After all, government doesn’t collect this kind of personal and financial information from its involuntary taxpaying customers just because its fun. The cattle of the farm must be kept in a state of welfare that is just above poverty, so as to ensure that there is no revolt or strike endangering the continuity of the government corporation. The maintenance of such a welfare system is impossible without the collection of income data per capita that can be used for more future debt obligations and collections of future taxation.

The notes state that:

“Personal income is the income received by all persons from all sources. Personal income is the sum of net earnings by place of residence, rental income of persons, personal dividend income, personal interest income, and personal current transfer receipts.

Per capita personal income is calculated as the personal income of residents of a given area divided by the resident population of the area. In computing per capita personal income, Bureau of Economic Analysis uses the Census Bureau’s annual midyear population estimates.”

What, did you think the Federal government corporation wants your income tax returns just for itself? No… this is how Cities and Counties, Districts and States calculate exactly how much taxation they can extract, exact, and extort from you with out a revolt.

Statistics run the world, my friends…

Sources for this statistical data are listed as:

City of Stockton (Municipal) Department of Administrative Services and Community Development Department

CA (State) Dept of Finance and Employment Development Department

US (Federal) Dept of Commerce, Burough of Economic Analysis

US (Federal) Department of Housing and Urban Development

CA (State) Department of Educations

So that’s what all of those redundant departments are doing with all of our personal information! Its as if we are all branded like cattle according to our income, what City, County, and State we live in, and what our future debt payments and taxation contributions will be.

Hmmm… I feel suddenly the need to chew my cud and be milked.

–=–

(Page 210) shows us the chart of the “PRINCIPAL EMPLOYERS” of City of Stockton’s resident citizens. Notice here that government is the largest employer of the people of this City corporation, listing San Joaquin County and Stockton Unified School District as the top two employers in the City, with over 7% of the people employed within government in just these two government entities. Also listed in the top 10 is the Division of Juvenile Justice, the City of Stockton, and the North California Youth Center.

Apparently, the Unified School systems are creating plenty of prisoners for the Division of Juvenile Justice – perhaps a hint that something just isn’t right with America’s public schools…

Now, let’s not forget who pays for the salaries, pension, and health care of all government employees. It’s the taxpayers, of course! Every job that is created within government means more taxation and higher customer fees are needed to pay for those government employees, and the pension investment funds make out like bandits!

And on a personal note… You know its got to be a pretty dreary situation when the 5th largest employer in your City is a jail for children, ahead of Diamond Walnut and Del Monte Foods.

 –=–
Chapter 9:

The Government Accounting Standards Board (GASB)
And The Privatization Of Government
–=–

Before we go on, I think it’s paramount for the people to understand just what the Government Accounting Standards Board (GASB) really is.

With a 100% unelected group of board members participating in a 100% private association, the GASB sets national standards for government accounting practices. In other words, the GASB creates creative accounting ideas and standards for organized crime within City, County, District, and State governments.

So let’s take a look at this non-governmental organization that sets government standards, and perhaps then we can begin to understand just how things got so uniformly screwed up around this country.

On November 18, 2011, the following article was published quite outside of the public’s perception, explaining and introducing the newly appointed members of the GASB special committees on legal, organized crime.

FAF Appoints 13 to FASAC, 5 to GASAC

The Financial Accounting Foundation’s board of trustees has appointed 13 new members to the Financial Accounting Standards Advisory Council and five new members to the Governmental Accounting Standards Advisory Council, effective January 1.

The FASAC is responsible for advising the Financial Accounting Standards Board on technical issues, project priorities, and other matters that affect accounting standard setting. The GASAC is responsible for advising the Governmental Accounting Standards Board on technical issues, project priorities, and other matters that affect standard setting for state and local governments’ accounting and financial reporting. The FAF oversees both FASB and GASB. The FAF also recently named three new members to its board of trustees.

Members of the FASAC are chosen from a cross-section of FASB’s constituents, including users, preparers, practitioners, associations, academics, and other parties interested or involved in financial reporting. FASAC members are chosen based on their professional expertise and their ability to broaden the base of constituent views on the Council.

The following new members will begin their term on the FASAC:

User (Investor) Community

•    Kay Ryan Booth, Managing Director, Golden Seeds Fund
•    Adam G. Hurwich, Portfolio Manager, Ulysses Management LLC
•    Joseph Longino, Principal – Investment Strategy, Sandler O’Neill + Partners, L.P.

Preparer (Corporate) Community

•    Peter Carlson, Executive Vice President and Chief Accounting Officer, MetLife
•    Patrick T. Mulva, Vice President and Controller, Exxon Mobil Corporation

Practitioner (Audit) Community

•    Cynthia M. Fornelli, Executive Director, Center for Audit Quality
•    Jan Hauser, Partner, PricewaterhouseCoopers
•    James R. Taylor, Partner in Charge – Assurance, Hogan Taylor LLP

Association

•    Susan S. Coffey, Senior Vice President – Public Practice and Global Alliances, American Institute of CPAs (AICPA)
•    Kenneth Daly, President and Chief Executive Officer, National Association of Corporate Directors (NACD)

Other

•    Anthony J. Dowd, Chief of Staff and Special Assistant to the Chairman – President’s Economic Recovery Advisory Board, Office of Paul A. Volcker
•    Patrick E. Hopkins, Professor of Accounting and Deloitte Foundation Accounting Faculty Fellow, Kelley School of Business, Indiana University
•    John W. White, Partner, Cravath, Swaine & Moore LLP

Members of the GASAC are chosen from a cross-section of GASB’s state and local government constituencies, including users, preparers, and attestors of financial information. GASAC members are selected on the basis of their professional expertise and the depth and variety of experience they bring to their work on the Council.

The following is a list of the newly appointed members and the constituent organizations that nominated them:

•    Jacqueline L. Reck, James E. Rooks and C. Ellis Rooks Distinguished Professor of Accounting, School of Accountancy, University of South Florida (nominated by the American Accounting Association)
•    Odd Stalebrink, Associate Professor of Public Administration, School of Public Affairs, Pennsylvania State University (nominated by the Association for Budgeting and Financial Management)
•    Joseph Stefko, Director of Public Finance, Center for Governmental Research (nominated by the Governmental Research Association)
•    Charles A. Tegen, Comptroller, Clemson University (nominated by the National Association of College and University Business Officers)
•    Glen Whitley, Tarant County Judge, Texas (nominated by the National Association of Counties)

The FAF also said Wednesday that Paul G. Camell, W. Daniel Ebersole, and Michelle R. Seitz have been appointed to the FAF board of trustees. Camell is executive vice president of mergers and acquisitions and chief administrative officer for CDM, a global consulting, engineering, construction, and operations firm. He previously served as the firm’s chief financial officer and senior vice president of finance.

Ebersole served as the state treasurer for the state of Georgia from 1997 to 2010, and was responsible for investing more than $14 billion of state and local government funds and administering two local government investment pools. He has more than 30 years of experience in both the executive and legislative branches of Georgia state government and served as a member of the Governmental Accounting Standards Advisory Council from 2003 to 2010. He was chairman of the group from 2008 until 2010.

Seitz is a member of the executive committee of William Blair & Company, L.L.C. She has more than 24 years of investment experience and leads William Blair Investment Management, consisting of the institutional, mutual fund, and private wealth management businesses. All three trustees will serve a five-year term that begins January 1.

(Source –> http://www.accountingtoday.com/news/FAF-Appoints-FASAC-GASAC-Members-60835-1.html)

As you can see, the entirety of government has been handed over to these private associations by appointment by other private associations. They in turn nominate and elect members of private corporations to sit on these boards without the approval or even the basic comprehension of the people of America. This is how corporations have sidestepped the so-called democracy and elections in the United States, and have become the power players in government without even a whimper from the general population – the people who must live under the rules and regulations of these private association boards that write the rules of “creative accounting” and who fleece billions of dollars out of each state in the form of investments in the private sector using taxpayer money.

Think about it… do you want the CEO of an investment firm or accounting corporation to set the rules of how investment firms and accountants declare their financial statements and holdings in government? How about the vice-president of Exxon Mobile???

In another article dated in 2008, we can really get a clear view of the inherent axiom of dangers of having private associations full of corporate executives writing government accounting and financial standards.

Bevy of New Projects on Tap for GASB

The GASB’s technical plan is a document that lays out the projects that the Board members will be deliberating and the staff will be researching over the next couple of years. It is reviewed three times a year by the Board members, who take into account feedback received from the Governmental Accounting Standards Advisory Council (GASAC) and constituents in general before the final agenda decisions are reached by the GASB chairman.

A typical GASB project begins in a list of potential projects suggested by constituents, GASAC members, Board members, or staff. The project moves to the research agenda when sufficient resources are available and it is deemed to be a high enough priority to command the use of those resources. After research is completed, if standards setting is needed and it is deemed a high enough priority, then the project will move to the current agenda—the list of projects that are being actively discussed by the Board…

GASB Chairman Bob Attmore announced that three major projects and three practice issues were being added to the current agenda, and three projects were being added to the research agenda. This article briefly describes the new projects and considers their potential impact on the information presented in state and local government financial reports.

Current Agenda Projects

Three projects added to the current agenda are considered major projects; that is, they are likely to result in significant changes to current accounting and financial reporting standards. The three new major projects are Postemployment Benefit Accounting and Financial Reporting, Public/Private Partnerships, and Reporting Unit Presentations/Statement 14 Reexamination…

Public/private partnerships 

 Recent years have been marked by greater attention to arrangements referred to as “public/private partnerships” or P3’s. Although this term has been applied to a wide variety of transactions (from contracting out of social service programs to complete privatization of public assets), this project was initially prompted by increasing interest in arrangements through which a government enters a long-term contract (perhaps 50 to 100 years) with a private company to operate and maintain (and sometimes to build) a major public facility or piece of infrastructure, such as a sewage treatment plant or a toll road. This project will consider whether existing standards provide sufficient guidance on how to account for P3 transactions, or if new standards need to be developed.

Likely impact on financial reports: One key issue to be resolved is who reports the asset when long-term arrangements are entered into. Should it continue to appear on the government’s statement of net assets, or should the company report it? Another issue relates to up-front payments made by the company to the government. Should these payments be recognized as revenue right away, or should they be recognized in increments over the period of the agreement?

(Source–> http://www.gasb.org/cs/ContentServer?c=GASBContent_C&pagename=GASB%2FGASBContent_C%2FUsersArticlePage&cid=1176156735521)

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Of course the correct answer is none of the above!

Government should not be selling off its infrastructure to private corporations – and the people should certainly not stand for it! But they do… And government should not be obtaining pennies on the dollar today for what that infrastructure asset would have brought in over many years or decades into the taxpayer services base. And no GASB, you should not be allowed to make rules and regulations on how governments report these transactions – BECAUSE YOUR MEMBERSHIP IS SOME OF THE SAME CORPORATIONS THAT WILL BENEFIT FROM THESE PUBLIC PRIVATE PARTNERSHIPS!!!

The plain truth: a private corporation can only obtain a monopoly that is legal under government law if that private corporations is partners with government. The PPP is the pathway to total monopolization of public services by the private sector.

Continued…

Reporting unit presentations and Statement 14 reexamination 

This project has two distinct but related parts. The first part reexamines GASB Statement No. 14, The Financial Reporting Entity, which governs what parts of a government appear in its financial statements. Most notably, it established the criteria for determining if legally separate entities—component units—should be included in a government’s reporting entity, as well as how to report joint ventures, jointly governed organizations, and other arrangements. These standards have been in place for about 15 years.

The other part of the project will consider whether to establish generally accepted accounting principles (GAAP) for parts of a government that are less than a complete legal entity, such as individual departments or funds. This type of reporting already occurs, but in fact there are no standards for doing so; governments and their auditors do their best to apply the standards for entire governments to these individual parts. Consequently, there are plenty of unresolved questions, such as how to allocate specific capital assets or long-term debts.

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In other words, GASB wishes to establish generally accepted accounting principles (GAAP) for the creative accounting act of hiding government assets by calling them “separate” or “not quite completely legal” entities of the main government, or “component units”, as well as utilizing those separate entities to transfer taxpayer wealth and fund balances into as a separate reporting entity.

“City of Stockton” has a few of those if I recall…

This means that these agencies’ fund balances would not be reported in the CAFR for the government. Thus, all investment funds would be completely hidden from public consumption within the Annual Financial Reports of  individual governments.

It is also interesting to note here that the Government Accounting Standards Board (GASB) is a very opinionated private association. We must remember that the rules of financial reporting for governments across the country are created within this entity. And that means that most of these creative accounting ideas that hide the real wealth of government are coming from the GASB and its corporate board members as well, which are then required to be followed by local and State governments.

In a recent “white paper” report released by the GASB, it had this to say about government corporation -vs- private corporation financial accounting:

Why Governmental Accounting and Financial Reporting Is – and Should Be – Different

Governments are fundamentally different from for-profit business enterprises in several important ways. They have different purposes, processes of generating revenues, stakeholders, budgetary obligations, and propensity for longevity. These differences require separate accounting and financial reporting standards in order to provide information to meet the needs of stakeholders to assess government accountability and to make political, social, and economic decisions. Although state and local governments in the United States have had separate standards for over 100 years, occasionally the question is raised: Why can’t general purpose governments (cities and counties, for example) simply apply the standards established for business enterprises?

(In other words, why can’t government just be honest and straight forward with its accounting and financial statement presentation, and be punished or incarcerated for lying like private corporations?)

The following questions and answers briefly address that issue, and the accompanying paper and its appendixes provide an expanded discussion.

Why Are Separate Accounting and Financial Reporting Standards Essential for Governments?

Separate accounting and financial reporting standards are essential because the needs of users of financial reports of governments and business enterprises differ. Due to their unique operating environment, governments have a responsibility to be accountable for the use of resources that is significantly different from business enterprises. Although businesses receive revenues from a voluntary exchange between a willing buyer and seller, governments obtain resources primarily from the involuntary payment of taxes. Taxes paid by an individual taxpayer often bear little direct relationship to the services received by that taxpayer. Overall, taxpayers collectively focus on assessing the value received from the resources they provide to government. Governmental accounting and financial reporting standards aim to address this need for public accountability information by helping stakeholders assess how public resources are acquired and used, whether current resources were sufficient to meet current service costs or whether some costs were shifted to future taxpayers, and whether the government’s ability to provide services improved or deteriorated from the previous year.

The longevity of government and its role to maintain and enhance the well-being of citizens through the provision of public services also result in information demands that differ from those of business enterprises. For example, governments do not operate in a competitive marketplace, face virtually no threat of liquidation, and do not have equity owners. Consequently, information on fair values of capital assets is of limited value and measures of net income and earnings per share have no meaning to users of governmental financial reports. Instead, users need information to assess the government’s stewardship of public resources, including information to evaluate the manner and extent to which resources are devoted to specific services and the costs of providing those services. Users also need information to determine compliance with legally authorized spending authority. Creditors of both businesses and governments are interested in information on the ability to repay debt. However, government creditors focus more on information regarding the government’s ongoing ability to raise taxes and the costs of activities that could compete for those resources, rather than on information about how earnings are generated.

How Do Existing Accounting and Financial Reporting Standards  Reflect the Different Needs of Stakeholders?

The needs of the users of governmental financial reports are reflected in differences in the components of the conceptual framework for accounting standards and in individual accounting standards. Although investors and creditors are important constituencies of every standards-setting organization, the Governmental Accounting Standards Board’s (GASB) conceptual framework also places priority on addressing the informational needs of citizens and elected representatives, two constituencies not identified as users of business enterprise financial statements by the Financial Accounting Standards Board (FASB). Consequently, the GASB’s financial reporting objectives consider public accountability to be the cornerstone on which all other financial reporting objectives should be built.

Some of the most significant GASB standards that address differences in governmental and business financial reporting include (1) the measurement and recognition of certain types of revenues (for example, taxes and grants), (2) the view that capital assets provide services to citizens rather than contribute to future cash flows, (3) the use of fund accounting and budgetary reporting to meet public accountability needs, (4) the use of accountability principles rather than equity control to define the financial reporting entity, and (5) the treatment of pensions and other postemployment benefits to allocate cost of services equitably to applicable periods. These and other accounting and reporting differences are described more fully beginning on page 11 and in Appendix B.

Why Is There an Ongoing Need to Set Additional Governmental Accounting Standards?

Since its inception in 1984, the GASB has strived to meet the needs of the users of governmental financial reports by issuing a number of important standards. Although the GASB has made progress, the need to develop and improve accounting standards for governments still exists. For example, additional components of the conceptual framework, which enhances consistency in setting government standards, are still being addressed. In addition, there are many important types of transactions, such as those associated with derivatives and intangible assets, for which there are no existing standards or for which existing standards are not comprehensive. The GASB’s research agenda also includes, for example, a project to address additional ways to communicate results of government activities. Finally, over time governments and the governmental environment continue to change, resulting in an ongoing need to update existing standards and to adopt new standards.

1 The term business enterprise is used to refer to private-sector entities organized for the purpose of earning profit. Business enterprises in the United States apply accounting pronouncements of the Financial Accounting Standards Board. Business enterprise does not refer to and should not be confused with business-type activities of governments.

(Source –> http://gasb.org/cs/ContentServer?c=Page&pagename=GASB%2FPage%2FGASBSectionPage&cid=1176156741271)

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At least the GASB acknowledges that the citizens of the government corporations are just the same as the cows of the farm corporations! Just as cows and chickens involuntarily give up their milk and eggs (and flesh), so too do the people involuntarily give up the fruits of their labor; and if they resist, their private property is stolen as punishment. The farm provides services to its livestock at the barrel of a gun just as the government provides services to its citizens at the barrel of a gun.

Welcome to the farm, people!

It also tells us here that governments operate in a completely non-competitive market, verifying the fact that governments have created a monopoly in those services it provides at the barrel of a gun. The fact that governments have no equity owners means that there are no shareholders watching over the corporation, and no chance of liquidation of the corporation’s stock due to bad business practices, as is the case with other major private corporations. In other words, the only supervision and punishment of government and its organized legal crime is… government itself.

Imagine if the elected Sheriffs of the land actually acted as real men; overseeing the law of the land and arresting criminal bankers and politicians for their organized criminal behavior. Instead, these officers of legal code have become the enforcers of the government’s extortion (exaction) and collection methods as created by the courts, and show up to forcibly sell your assets and property when you don’t pay your taxes to government. In short, there is no law in government, only the administration of legal tyranny. And the Sheriff and his deputies and bailiffs are the strong-arm of the courts. For without an enforcement police force, the courts decisions would have no power! This is why municipal police – the corporate officers who enforce municipal codes against the people – have progressively become more and more militarized; driving armored vehicles and carrying machine guns, spying through traffic cameras, and consistently being trained for “civil unrest”, which simply means that the people no longer want to be forced to be “citizens” if it means paying involuntary taxes to these government corporations with nothing in return. Municipal police are no different than the security guards at a bank; they are there to keep the peace, so that when the bank informs you that they are foreclosing on your home you don’t get out of hand and cause a scene. Confiscation of property, after all, is perfectly legal for government. And of course government made its own wonderful little banking rules so that property confiscation is perfectly legal for banks too. Police are not required to and do not protect and serve the people. They are hired to protect and serve the corporate interests and continuity of the municipal corporation and State, who pays their salaries with involuntarily collected taxpayer money. We pay for the cops who beat us up, taze us, and force us into jail for non-cooperation of municipal codes and fines – or for trying to protect our children.

While we will not be covering the budget report for 2012-2013 in this presentation, I do think it is important to point out just a couple of items listed in the budget report.

On (Page A-9) of the budget plan, we read the following:

“Police

The Police Department is responsible for six funds: Asset Seizure, COPS State Block Grant, Special Revenue Grant, Police State COPS, Police Measure W and Police Special Revenue.  Notable elements of the 2012-13 proposed budgets for these funds include the following:

In the Asset Seizure Fund revenues continue to decline and the available funds will be used to fund safety equipment and supplies.

The COPS fund will continue to pay salaries and benefits for six Community Service Officers…”

So even within these “departments” of the City corporation we see more investment funds hiding wealth from the people.

This “Asset Seizure” fund is one of those instances where I would think that logically, the people of the City corporation should have a very angry and questioning response. But instead, there seems to be an “as long as it doesn’t happen to me…” response, where the people do not stand up for each others’ rights. This is a true  travesty in the general population of America, and one of the many badges of shame through inaction that the citizens of America must wear because of their purposeful ignorance of these tyrannies.

What is the “Asset Seizure” fund?

This is where the municipal corporation police – the officers of the corporation who enforce the rules and statutes passed by the so-called “government” of that so-called “City” – this is the fund where these so-called “police” place the private property that they literally steal from the people of the City, a practice legally called confiscation or asset seizure. This is the so-called “service” that the City provides at the barrel of the gun from these police officers of the corporation. Confiscation is freedom. Theft of personal property is for your mutual benefit as a citizens of the “city” corporation. Individual rights are squashed for the collective… the collective being the City of Stockton corporation.

Remember, asset seizure is your political civil right (a positive right) as a citizen of the United States. You have the right to be exacted from according to US CODE.

It should also be noted that this budget report states that the “revenues” for this fund continue to decline. Is this good or bad? It’s hard to tell with this “City”. But any entity in the public trust that considers the taking of private property from that public as a “revenue” source for that entity can’t be considered good in my book…

On (page A-12) of this “budget report”, we also read the following:

Economic Development

The Economic Development Department is responsible for 10 Housing funds, as well as the City Administration Building, Central Parking District, and Downtown Marina Complex funds.  The department formerly oversaw the Redevelopment  Agency funds prior to the dissolution of the AgencyThe General Fund will be required to fund administrative and overhead costs for the Successor Agency, due to the fall-off in tax increment proceeds. Those costs, estimated at $1.6
million, are included in the General Fund revised Baseline Budget. The Successor Agency budget is not included in this document.  Notable elements of the 2012-13 proposed budget for this department’s funds include the following…

The Central Parking District Fund proposed budget reflects the changes necessitated by the possession of the Market Street, Coy and Arena garages by Wells Fargo.  No increases to monthly or hourly fees are planned for next fiscal year.  Monthly rates will, however, be established for surface lots that presently do not offer monthly parking.

Did you get that?

“City of Stockton” has entered into a public private partnership (PPP, P3) with Wells Fargo Bank, allowing the revenues of the parking structures mentioned here to go to that bank. And they plan on offering more for-profit Wells Fargo parking services on behalf of the City in the near future on this taxpayer infrastructure!

What is it going to take for the people to say enough is enough?

For even as Wells Fargo and other private institutions privatize your City services as customers at the barrel of a gun, you are still paying as a collective indentured and involuntary tax base for the building and maintenance of these parking and other structures that forcibly service you. This privatization is happening across the country, and has been for over 4 decades.

The promising of future tax and business type revenues to private corporations is the government of the future… and that means that the monopolistic nature of government services offered at the barrel of a gun are also being transferred into private banks and other private corporate hands.

The City Manager, Bob Deis, leaves us with this statement in his transmittal letter; a foreshadowing future look at exactly what Wells Fargo has already been allowed to accomplish in City of Stockton corporation today:

“The future will be bright, but the transition will be difficult. When given accurate information you have made the difficult decisions that other governmental agencies refuse to make…”

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In another report from the GASB, we get even more important information on the “accidental” financial accounting mishaps of many governments when it comes to their reporting of fund balances:

“Most respondents to a GASB survey of financial statement users did not understand that fund balance was intended be interpreted within its fund. Only three out of ten respondents correctly answered that a limitation consistent with the purpose of the fund, but not more specific, does not lead to reserved fund balance. But they were not alone. When asked to describe the criteria they use to decide when fund balance should be reported as reserved, very few of the government finance officers surveyed recognized the distinction either.

The consequences of this misunderstanding can be seen in financial statements. A review by the GASB of nearly 200 financial reports found that more than half of the governments reserved the entire fund balance of at least one fund and more than one-third did so for two or more funds. To appropriately reserve all of a fund’s fund balance, the fund would have to be broadly defined and all of the resources it contains would have to be legally limited to more specific purposes. For instance, if a government has a single capital projects fund to report all of its capital construction activity and all of the resources in the fund are legally limited to being used for particular individual capital projects (a specific bridge project or the purchase of a fire truck) or types of capital projects (bridge reconstruction projects or firefighting equipment), then it would reserve all of that fund’s fund balance. However, such circumstances are more the exception than the norm. Therefore, it is likely that most of those governments that reserved all of a fund’s fund balance were not aware that the broader level of use limitation should be inferred from the fund itself. Of course, this misunderstanding could be traced to a lack of clarity in the current standards.

Although this issue may seem esoteric, it can have a significant impact on the user of the financial statements. If the accounting standards are applied based on the intent described above, a financial statement user should not conclude that unreserved fund balance in any fund other than the general fund can be used for any purpose. One should realize that those resources are available only for the purpose of the fund they are reported in. If a government reserves all of a fund’s fund balance, the reader of the balance sheet may come away believing there is no flexibility in how those resources can be used, when in fact there is.

So, could the GASB solve these problems simply by clarifying this point? While doing that might be helpful, it would be a partial solution. The users of financial statements look to the fund balances of governmental funds because they know from experience that they can find generally available resources there. It is popularly believed that some governments transfer resources from the general fund to another governmental fund although they do not intend to use the resources for the purpose of that fund. This may be done in order to minimize the size of the fund balance in the general fund.

It is very difficult to identify when this has happened by looking at the financial statements; even if such resources are reported as unreserved, you cannot distinguish between the available resources that belong in the fund and those that reside there temporarily. The public may be helped by a provision of GASB Statement No. 38, Certain Financial Statement Note Disclosures, requiring governments to provide information about the resources they transfer between funds…”

(Source –> http://gasb.org/cs/ContentServer?c=GASBContent_C&pagename=GASB%2FGASBContent_C%2FUsersArticlePage&cid=1176156737123)

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So that you understand what is being spelled out here by this very private association called GASB, which creates these rules of financial reporting (creative accounting) that all governments follow, this is telling you that governments across the country are literally transferring cash and investment balances out of the general taxpayer-use fund called the “General Fund” and into their other individual enterprise-use funds because that is the only way they can put legal restrictions on that cash and investment wealth according to GASB standards. You see, in the general fund, all of that fund balance is designated by default as unrestricted unless pre-designated, meaning it can be used for any liability or taxpayer obligation that needs to be paid… that is, if the mayor and council actually wish to use it to benefit the people. Well, government can’t have that! And so the government corporation transfers that general fund balance into specially compartmentalized holding cells in the form of other governmental and business-type funds so that they can place specific restrictions on those liquid investment funds and ensure that they are used to promote the debt of the citizens to the government – which brings in more revenue through debt servicing – which allows more general purpose fund money to be transferred into debt servicing funds… And on and on and on the merry-go-round of legal organized crime goes, while the people look on with confusion and disdain, but never with comprehension of the real shell game being played.

It then states that governments are knowingly breaking the GASB rules, either through ignorance or due to purposeful malfeasance, by placing restrictions on fund balances that should not have restrictions placed on them by law. If there is anyone still reading this presentation who thinks that anywhere close to a majority of these fund transfers and the illegitimate restrictions placed upon those investment funds for such things as “debt servicing” is being done by accident, well then let me show you my fine selection of rare pet rocks for sale at $50,000 per rock.

Once again, the GASB states:

It is popularly believed that some governments transfer resources from the general fund to another governmental fund although they do not intend to use the resources for the purpose of that fund. This may be done in order to minimize the size of the fund balance in the general fund. It is very difficult to identify when this has happened by looking at the financial statements; even if such resources are reported as unreserved, you cannot distinguish between the available resources that belong in the fund and those that reside there temporarily…”

So riddle me this, GASB… if well-trained government accountants like yourself, who use the CAFR reports on a regular basis and who is trained in this type of financial reporting can’t figure this stuff out, how in the hell are the people of America, and indeed the people of City of Stockton supposed to figure it out?

Well get ready, because hopefully after this information gets passed around, you are going to have a whole lot of angry, involuntary tax payers asking the same question…

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Chapter 10:
The Notes To The Financial Statements
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For our final understanding of how all Comprehensive Annual Financial Report’s are put together, we must read and comprehend how the “Notes to the Financial Statements” section ties all of these charts and creative accounting principals together. While the charts and statements show a basic accounting of much of the asset totals of the City corporation, most of the pertinent explanations of the information presented in these charts and figures must be accompanied by these Notes to the Financial Statements for a more full and detailed understanding of those charts.

In many reference books, as well as in educational and non-fiction novels, there will often be these types of notes referenced by numbers, which refer the reader to either the bottom of the current page or to the back of the book to obtain more information on the current term, phrase, or fact used. These notes expand the readers knowledge of concepts and definitions of certain words or concepts for which the author of that book presumes the knowledge of his reader. Government presumes that you, the people, will not be reading the CAFR, and so these notes are equally difficult to decipher their true meanings. The Notes to the Financial Statements are perhaps the most important part of the CAFR because they shed certain alternative light on the facts and figures that are discretely presented in the Financial Statements themselves. Thus, this essential information is not listed with the charts or statements in real time or on the same page, and it is government’s hope that you the people do not get far enough past these confusing and obfuscating financial statements to want to read these notes that accompany them.

But without them, total comprehension cannot be attained by the reader of the government’s financial statements. And this is the main difference here, for in an educational book the author is trying to educate the reader; while in a CAFR report the author is trying to obfuscate the information presented. These Notes to the financial statements are only presented because there is a federal law that requires it.

These “notes” are referred to often throughout the CAFR, with statements like this one on (page XII) where it states:

“Additional information on cash management can be found in Notes 1 and 2 in the notes to the financial statements.”

And within the government-wide financial statements, under the statement of net assets chart where it states:

“The notes to the financial statements are an integral part of this statement.”

Also, the balance sheet for governmental funds on (page 43), as well as the reconciliation of fund balance on (page 45) and the statement of changes in fund balance chart on (page 46) all state the same thing:

“The notes to the financial statements are an integral part of this statement.”

Translation: These financial statements are incomplete without these notes.

As we go down the pages of financial statements and charts we see the same reference to these notes as being an integral part of your comprehension of these  incomplete facts and figures being presented herein, that can only be explained with further notation, in the notes to the financial statements section. This of course is why they are listed separately from the actual financial data they represent.

Smoke and mirrors…

And so , starting on (page 60) and carrying all the way to (page 142) – almost half (about 40%) of the entire CAFR report presented, we come to these “Notes to the financial statements“.

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(Page 60-62) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

–=–

“The City of Stockton (City) was incorporated on July 25, 1850, under the general laws of the State of California. Under the charter adopted in 1923, the City operates under a Council-Manager form of government…

AS REQUIRED by accounting principles generally accepted (GAAP) in the United States and Governmental Accounting Standards Board (GASB)…

Component units are legally separate entities for which the government is considered to be financially accountable. Additionally, blended component units can be organizations for which the primary government’s exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

**In other words, the component unit is part of the city, so it should be reported as such. But the City likes to pretend that these are separate entities as discussed above.

The following is a brief overview of the component units included in the City’s accompanying financial statements. Financial information for these component units can be obtained from the City’s Administrative Services Department. Each blended component unit has a June 30th year-end.

The Redevelopment Agency of the City (Agency) was formed in February 1975 to prepare and carry out plans for improvement, rehabilitation and redevelopment of blighted areas within the City of Stockton. City Council members in concurrent sessions serve as the governing board of the Agency, and all accounting and administrative functions are performed by the City. The Agency is reported in the City’s fund financial statements as a special revenue fund, debt service fund, and a major capital projects fund, as well as in the City’s government-wide financial statements.

**This agency is nothing more than a way to keep taxpayer money out of the general fund, so that the City corporation can justify raising taxes. In other words, the Council is servicing debt in this agency with taxpayer money instead of paying off debt with that same taxpayer money or using it for taxpayer services.

The Stockton Public Financing Authority (SPFAJ) was created in June 1990 and carries out lease debt financing for the City’s General Fund, Redevelopment Agency, Water Utility, Waste-water Utility, and Central ‘Parking District. The members of the City Council also serve as the governing board of the SPFA. SPFAJ’s reported in the City’s fund financial statements in the debt service funds, capital projects funds, enterprise funds, and the internal service funds, as well as in the City’s government-wide financial statements…

**Again, debt servicing… for leases of taxpayer funded infrastructure. It is unclear how this agency is not considered a usurious central bank for the City corporation, very much like the Federal Reserve that loans money to the Federal government. This is government leasing it own infrastructure to either itself or other governments or private corporations through debt contracts. That means taxpayers of other governments are paying this government to lease the public infrastructure, and that the taxpayers of City of Stockton are paying to lease other governmental structures. Why should governments be charging other governments (taxpayer money) when they are all the same government of the people? The answer, of course, to every similar question you might ask, is simply $ revenue generation $ at the expense of taxpayers.

Consistent with the National Council on Govemmental Accounting (NCGA) Statement No.5 and GASB Statement No. 14, capital leases between the primary government and blended component units are eliminated. The debt and assets are reported in the primary government. The SPFA also issues various land secured debt financings with no City commitment. This activity is reported in the fiduciary funds.

Because the City Council serves as the governing body of the Agency and SPFA, the financial activities of these entities are integrally related to those of the City and are “blended” with those of the City.

I’ll give you one guess as to whose land is being secured by the City in these “various land secured debt financing with no City commitment“. Hint, its your home!

Continued…

An additional governmental agency in which the City participates is the San Joaquin Area Flood Control Agency (SJAFCA) which is Jointly governed by the City and the County of San Joaquin (County). The City retains neither an on-going financial interest in, nor obligation to SJAFCA, therefore financial information for the SJAFCA is not included in the accompanying financial statements.”

**Assets which are in this agency are not reported as assets of the City of Stockton. And yet the liabilities are drawn from the City (the people), through taxation.

Once again we see that this City corporation has several sub-corporations for which it likes to utilize in the obfuscation process of reporting its actual financial position. We can again compare this to a corporation like Microsoft and its annual financial reporting of its several national and international sub-corporate entities, though they are all just pieces of the main mother corporation, which is the “Microsoft Corporation”. If you were to invest in one of these sub-corporations, you are in reality investing in part of the mother corporation, no matter how you or Microsoft reports it. The point here is that these are separate entities or “component units” of Microsoft, and their profits and losses are directly related to the health and financial welfare of the main unit, Microsoft Corporation. Likewise, “City of Stockton” like all other governments has transferred some of its functions and taxpayer funds into some of these component units/agencies (sub-corporations). It then utilizes these separate entities of government in its deceptive practice of creative accounting in its financial reporting, especially on its hand-selected budgetary reporting each year to the people, in order to claim that the wealth and investment funds that are located or transferred within these component units are restricted for those funds or separate units and not available for general purpose or taxpayer operating funds. In other words, the value of these assets is not for the taxpayers, but for the City corporation and its “customers”, created via taxpayer debt.

The notes go on to say:

–=–
(Page 62-65) Basis of Accounting and Measurement Focus
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Government-wide and Fund Financial Statements – The government-wide financial statements include a statement of net assets and a statement of activities. These statements present summaries of governmental and business-type activities for the City. Fiduciary activities of the City are not included in these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

**Here again, the difference between you being a taxpayer and a customer of government.

The statement of activities demonstrates the degree to which the direct expenses of a given function or program is offset by program revenues. Direct expenses are those expenses specifically associated with a service, program, or department and, are clearly identifiable with a specific function or program. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter is excluded from the government-wide financial statements. Major individual governmental funds and enterprise funds are reported as separate columns in the fund financial statements.”

**Here again, Stockton City corporation is revealing not only the fact that it must create fees, charges, fines, and other “revenues” besides lawful taxation in order to provide services and “privileges” to its “customers” – which is you, the taxpayer, as well as other governments and private corporations. It then states clearly again that it does not report these revenues in all financial reports, especially the budget report, which does not necessarily take into consideration these profitable ventures that must extort and exact “program revenues” outside of the taxation methods as reported on the budget report, through fines, citations, tickets, charges, fares, fees, and anything else they can think of.

“The govemment-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied…”

**Again, we must understand what this sentence says here… Revenues are recorded (placed in the report as assets) when earned – meaning that future payments that will be received on bonds or other known or guaranteed future income does not get recorded in the financial statements. But inversely, expenses are recorded (placed into the report as liabilities) as soon as a contract is signed or a bond is passed for that liability – even if the payment of that bond will be paid for with future revenues that aren’t being recorded immediately. And so we now have it right out of the government’s mouth that it purposefully uses future liabilities and debt payments to wipe off the charts today any current assets or revenues. Remember the car payment analogy we used earlier, hiding current assets with future liabilities? Remember, you can’t report things this way to government, so why should government get away with reporting things this way to you?

**Notice in the following paragraph the major differences between what we just read, and the very different way that the Governmental fund financial statements are reported:

“Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers intergovemmental revenues, which are primarily grants and subventions, received as reimbursement for specific purposes or projects to be available if they are expected to be received within the upcoming year to repay interfund liabilities incurred as a result of borrowing the cash in order to pay the expenditures. Other major revenues in accordance with GASB Statement No. 22, Accounting for Taxpayer Assessed Tax Revenues in Governmental Funds are considered to be available if they are collected within 60 days of the end of the current fiscal period. Revenues considered to be available include property taxes, sales and use tax, gas, utility user and hotel/motel room taxes, franchise fees, interest, and intergovernmental revenues, which are virtually unrestricted as to purpose of expenditure and revocable only for failure to meet prescribed compliance requirements. All other revenue items, such as business licenses and fines and penalties, are considered to be measurable and available only when received by the City.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments are recorded only when payment is due.

**An expenditure that is “recorded only when payment is due” is a simple description of what you and I do every month when we pay our monthly bills – we pay our current liability in the form of a debt payment with our current assets that are in our bank account. We, the People, do not have the luxury, as government does, to show that we have already paid future payments on that debt and are counting that as a current liability to hide our current assets. In other words, government is pretending and reporting that it has already paid its full liability to this debt that it owes in 30 years or more – with make believe money it doesn’t actually have. It is then stating that it doesn’t have enough current money (assets) to pay for current taxpayer services because all current assets are tied up for future debt, as if the current assets have already been spent, which obviously they have not.

**If this is difficult for you to understand, don’t worry about it. Only a criminal and usurious mind is designed to understand this type of language for these types of criminal and usurious concepts. The fact that this sounds absolutely absurd to the point of disbelief and disillusion is a sign that you are not a criminal… and that is a good thing, I assure you. Read this presentation a couple of times. You will get it eventually. But you won’t like it!

“Deferred revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records deferred revenue related to uncollected estimated special assessments not yet payable and intergovernmental revenues (primarily grants and subventions) received but not earned.”

**A deferred revenue is 100% the same thing as a future (deferred) liability – a deferred liability or payment due in the future. A mortgage amortization schedule is a good example of a deferred revenue for the bank that gave you the mortgage on your home. The bank has deferred your payments over a 30 year period or so, meaning that the revenue it collects from you is differed until a future date (one part per monthly mortgage payment). This mortgage contract and payments over 30 years represents for the bank a future (differed) asset, and is equally representative of a future (deferred) liability to you. City of Stockton states here that the recognition of a future (deferred) asset (revenue) must meet what it calls “revenue recognition criteria”. And yet, apparently, there are little to no such “recognition criteria” requirements on what the City corporation might call deferred liability (future liability payments). And as we read in the next paragraph,  we can once again see that these criteria are coming from a central uniform source: the private association called the GASB.

“With respect to both the business-type activities in the government-wide financial statements and the proprietary fund financial statements of the City, as required by GASB Statement 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary Fund Accounting, the City continues to apply all applicable GASB pronouncements as well as Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedure issued on or before November 30, 1989, unless those pronouncements conflict or contradict GASB pronouncements. The City has elected under GASB Statement No. 20 not to apply all FASB Statements and Interpretations issued after November 30, 1989.”

**Just how many 100% unelected private associations are there out there telling government how it should fool the people and steal their wealth simply because the people never knew that wealth existed in the first place? We, the People, may never know…

“Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.”

**Now is it just me, or is anyone else out there a bit disturbed and disconcerted that City of Stockton corporation keeps stating the fact that it charges the taxpayers and collects revenues for State granted “privileges“. Remember, a “privilege” was something once given to slaves by their masters… Here again, the distinct difference between general (taxpayer) revenues and program (customer) revenues is made, and of course that they are reported differently to the people. We will cover what the word “contribution” actually represents coming up soon in these notes. And remember above that the GASB stated in its “white paper” that taxes are involuntary. I seem to remember some famous event that the term “no taxation without representation” was uttered, followed by a bit of bloodshed and revolution…

“Proprietary funds distinguish operating from non-operating revenues and expenses. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.”

**Again, for-profit corporations have customers. Non-profit corporations have members or supporters. Government just happens to have both. And its supporters as taxpayers just happen to also be its customers for its monopolies and trusts. Once again, we see non-governmental revenues in the form of “non-operational” revenues, which are reported differently than operational (government) revenues. This, again, is the difference between the budget report and the annual financial report. The CAFR is the audit of government and non-governmental assets, while the budget is just governmental functions and is merely proposed (a guess) and is in fact, mostly unaudited. And the budget is collated and presented to you by non other than your unelected City Manager.

“On the government-wide financial statements, when both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources, as they are needed.”

**While this is fairly self-explanatory, it does help us to understand the will of government to turn as many “unrestricted” resources into “restricted” resources. They wouldn’t want any extra money or liquid assets floating around government in an unrestricted state of being, for it would be very hard for government to explain why that resource wasn’t used for where it was “needed” – like paying off future liabilities that are supposedly causing a bankruptcy for the City. Placing restrictions on unrestricted fund balances keeps unrestricted fund balances from being spent on all of you needful and dependent taxpayers and the services and privileges you deserve. So it’s much better for business to stow those resources away where the council can’t touch them, according to their own laws that government makes to ensure that taxpayer money is not used for taxpayer services. Services are for customers, after all. And so these unrestricted resources must be locked up and restricted for the promotion of customer based-services and privileges, not freebee taxpayer services that turn no profit. Are you starting to understand?

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(Page 65) Fund Descriptions
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“Fund Descriptions

(Nonmajor funds)

Special Revenue Funds

Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. The term “proceeds of specific revenue sources” establishes that one or more specific restricted, committed revenues should be the foundation for a special revenue fund. Restricted or committed specific revenue sources should comprise a substantial portion of fund’s resources, but the fund also may include other restricted, committed, and assigned resources. Transfers into a fund are not considered to be revenue. All of the City’s special revenue funds are classified as nonmajor. A description of the purpose for each of the nonmajor special revenue funds, and their primary revenues or resources, is provided in the supplementary information nonmajor governmental funds section of this report.

Capital Project Funds

Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

Debt Service Funds

Debt service funds are used to report financial resources that are restricted, committed, or assigned to expenditures for principal and interest on long-term debt.

Enterprise Funds

Activities are required to be reported as enterprise funds when (1) the primary revenue sources of the activity are financed with debt that is secured solely by a pledge of the net revenues from fees and charges of the activity, (2) laws or regulations require that the activity’s cost of providing services, including capital costs (such as depreciation or debt service), be recovered with fees and charges, rather than with taxes or similar revenues, or (3) fees and charges are designed to recover the costs of the activity, including capital costs.”

So again, enterprise funds are customer-based funds holding restricted assets to pay for the enterprise itself or for its construction or improvements, debt servicing, or special revenue needed to build the customer based enterprises. The enterprise is usually created through debt, and the debt is paid through debt servicing. Taxpayer dollars are transferred into these funds so as to continuously support the customer-based infrastructure and services of government, while the taxpayer (non-customer) services usually suffer from budget cuts because the taxpayer resources are “restricted” for customer-based enterprises. Add in the public-private-partnership and the privatization of government services, and you can foresee the government of the future – private corporations providing customer-based services to the very taxpayers whose taxes go to support the infrastructure that allow the private corporations to provide the services back to the taxpayers – and profit heavily off of this privatization and contractual relationship with government. Essentially corporations are becoming the government, the police, the prisons, the schools, the tollways, the water, sewer, and electric, and any other service of government… and are protected by government laws.

And all of this is coming from United Nations sustainable development policies that are being promoted and uniformly placed into action by the GASB and other private associations out there all around the world, writing the laws, policies, and accounting standards in your municipal corporation, county, district, and State. If you can’t see that this is already happening all around you, I suggest that you open your eyes and take a panoramic look around your own City corporation. And if you still can’t see, well, your belief in tyranny is not required for that tyranny to flourish. In fact, it prefers it.

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“Financial Statement Presentation

The City’s funds are categorized and reported by major and nonmajor funds based on criteria established pursuant to GASB Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis – for State and Local Governments.

In the 2009/10 fiscal year, the City reports the following major governmental funds:

General Fund is the primary operating fund of the City. It accounts for normal recurring activities traditionally associated with government, which are not required to be accounted for in another fund (unrestricted). These activities are funded primarily by property taxes, utility user taxes, sales and use taxes, franchise fees, business licenses, state grants, charges for services, and interest and rental income.

Public Facilities Impact Fees Capital Projects Fund accounts for the collection of and expenditure of fees imposed as a condition of new development within the City, in compliance with California Government Code Section 66006 (AS 1600). Impact fees were established in July 1988 by Ordinance No. 56-88 C.S. for traffic signals, street improvements, community recreation centers, city office space, fire stations, libraries, poUce stations, parkland and street tree/street signs, street light in-lieu, air quality mitigation, and public facilities fees administration.

Capital Improvement Capital Projects Fund accounts for the acquisition (eminent domain), construction and improvement of capital facilities financed by grants and transfers from other City funds.

Redevelopment Agency Capital Projects Fund accounts for the acquisition, relocation, demolition, and sale of land for those portions of the City earmarked for redevelopment. Projects are financed from bond proceeds, loans from other City funds, and property tax increment revenue.

The remainder of the City’s governmental funds are reported as nonmajor funds in the financial statements.”

Here government states that it receives loans from other City funds. Government restricts funds so that other unrestricted funds like the General Fund are short, borrows from itself from other restricted funds, charges interest to itself, and the taxpayers pay the principle and interest of those loans or bonds. It makes this necessary, again, by restricting unrestricted general fund balances so as to create the absence of legally usable revenue.

But let’s think logically about this for a moment…

If you had a checking and a savings account, and your checking was empty, you would naturally transfer money out of your savings account and into your checking account so as to use the funds available in your savings account. In this way, we could compare your savings account to the governments “restricted fund balances”. Thus, if it chose to, government could simply un-restrict those restricted fund balances (its savings account) and use those funds to pay for what it needs.

But instead, it takes out a loan against the restricted money that it is already in possession of, and services that debt with other restricted funds and future taxpayer and customer revenues. You would have just transferred money from your savings into your checking, write a check, and go lay by the pool without any worries. But government, in its continuing effort to promote debt and interest onto the people due to the usurious profit potential of that debt and interest, instead chooses to borrow money from its own savings account, pay itself back interest on its own money (taxpayer money), and then tells the people that it needs to raise their taxes, fines, service fees, and anything else they can come up with so as to pay themselves back the debt that they owe to themselves in perpetuity. And yet, all this could have been avoided by the simple act of using current assets to pay current and future liabilities (debt) off completely today. Illogical, irrational, and yet in the end, extremely profitable.

“The following funds comprise the City’s nonmajor governmental funds:

Special Revenue Funds – Special Grants, Solid Waste and Recycling, Gas Tax, Measure K Streets Sales Tax, MeasureW Public Safety Tax, Special Assessments, Low-Moderate Income Housing RDA Loans, Community Development Block Grant (CDBG) Programs, Neighborhood Stabilization Loan Program (NSLP), Housing GrantiLoan Programs, HOME Program, Emergency Communication, City Administration Building, Development Services, and Other Special Revenue funds;

Debt Service Funds – Redevelopment Agency and Stockton Public Financing Authority; and

Permanent Fund – Miscellaneous

Several financial statement presentation adjustments have been made in this report. The Community Development Block Grant (CDBG) Program Fund in this report is the combined or merged financial activities of the formerly presented Urban Development Action Grant, Community Development Block Grant, ‘Community Development Loan, and CDBG Revolving loan funds. Both the Low-Moderate Income Housing RDA Loans and the- Housing Grant I Loan Programs funds presented in this report were formerly called the Redevelopment Agency Loan Fund and the Special Grants and Loan Programs Fund, respectively. These fund mergers and title changes were made to clarify the financial activities of these funds. Additionally, at the end of the current fiscal year, the Emergency Communication Fund was closed and combined with the General Fund due to discontinuation of the specific 911 fee revenue source previously dedicated for the activity recorded in this fund.

In the 2009/10 fiscal year, the City reports the following major enterprise funds:

Water Utility Fund accounts for activities associated with the acquisition or construction of water facilities, production, distribution and transmission of potable water to users.

Wastewater Utility Fund accounts for activities associated with the acquisition or construction, and operation and maintenance of wastewater facilities for collection, treatment, and disposal of wastewater.

Stormwater Utility Fund accounts for activities associated with the acquisition or construction, and operation and maintenance of stormwater facilities for drainage and disposal of stormwater.

Central Parking District Fund accounts for activities associated with the acquisition or construction, operation and maintenance of off-street parking facilities.

The remainder of the City’s enterprise funds are reported as nonmajor funds in the financial statements.

Additionally, the City reports the following fund types:

Internal Service Funds

Internal service funds are a type of proprietary fund used to report any activity that provides goods and services to other funds, departments, or agencies of the primary government and its component units, or to other governments, on a cost reimbursement basis.

The City’s internal service funds are the General Liability Insurance, Workers’ Compensation Insurance, Employee Health Insurance, Retiree Health Insurance, Retirement Benefits, Other Benefits and Insurance, Vehicle Fleet Equipment,
Computer Equipment, Radio Equipment, and Other Equipment funds. Several financial statement presentation adjustments have been made to the Internal Service Funds financial statement section of this report from the prior year. The former Health Benefits Insurance Fund is now presented as two separate funds; the Employee Health Insurance Fund and the Retiree Health Insurance Fund. Vehicle Fleet Equipment Fund was formerly named Central Garage Fund. The Other Benefits & Insurance Fund was formerly named the Other Benefits Fund. These changes and the separation of the financial activity of the health insurance function were made to clarify the financial activities of the respective funds.

Agency Funds

Agency Funds, a fiduciary fund type, are used to account for assets held in an agency capacity for parties outside the City. The resources of these funds cannot be used to support the City’s own programs. The agency funds are custodial in nature and do not involve measurement of results of operations.

The City acts as an agent for individuals, private organizations and/or other govemmental units such as for land secured financing, employee payroll withholdings, area of benefit fees, public facilities fees, and other miscellaneous items.”

Now, there is one thing here that is very important for your comprehension.

When I read the term “land-secured financing”, I was certain that this term was more devious than I could imagine. And I was right!

When I checked to see what land secured financing actually meant, I found out that there are literally 100’s of private corporations all across the country that offer this private banking service to local governments. But what I was shocked to find was the fact that when governments get financing from these private non-governmental corporations, they are required to put up something as collateral for that loan. Care to take a wild guess at what that little something is?

This brochure from “William Blair & Company” based in Chicago explains this process well:

Land-secured bonds are used to finance the basic public infrastructure required for both new development and existing communities. Most often, these bonds are issued through – or for the benefit of – special tax districts. The bonds generally are non-rated and exempt from federal income taxes

Owners of properties that benefit from the bond-funded infrastructure agree to a lien on their homes (or commercial property) that is paid off over time through an annual special tax or assessment. That tax or assessment is used to pay debt service on the bonds, which are secured further by the underlying taxed or assessed property as collateral. The special tax or assessment constitutes a senior lien on the property, meaning it is superior to private liens such as construction or mortgage loans.

Did you catch that? For this above all else reveals the true nature of your corporate municipal “government”. And it proves without a doubt that you, the people, are not the owner of your land, your home, or your property. In fact fyou are registered, deeded tenants; living in government-owned property. How else would your government be able to put what you thought was your own home and land (property) up as collateral any time it chooses for these “secured bonds” and “land secured financing” in order to build public infrastructure to “serve” you?

The brochure continues:

Land-secured bonds are used to finance many types of public infrastructure. For example, for transportation, bond proceeds can fund streets, sidewalks, traffic signals, highway interchanges, public parking, public landscaping, and street lights. For utilities and related infrastructure, the bonds can fund water supply, storage, treatment, and distribution facilities; wastewater collection, treatment, and disposal facilities; and storm drain systems. For economic development, the bonds can finance public infrastructure associated with shopping centers, business parks, and industrial parks. In addition, land-secured municipal bonds can fund flood control, recreational facilities, parks, and open space. What constitutes an eligible project is subject to specific state statutes, but in many locales the possibilities are expansive.

In short, land-secured bond financing can be used to fund the cost of public infrastructure for almost every kind of real estate development: existing urban and suburban neighborhoods, new master-planned communities, local and regional commercial districts, retail malls, big-box commercial centers, office and business parks, industrial complexes, redevelopment project areas, affordable-housing projects, and military bases being converted to civilian use.

So that you understand what is going on here, these corporate ventures funded by taxpayer bonds will be utilized for building commercial and for-profit real estate projects. These are not necessarily for taxpayer services as much for enterprise operation customers. These are real estate projects for sale to customers. These are malls, grocery stores, movie theaters, and department stores being built by using your own home and that of the real estate being built as collateral for a private corporation to finance the capital project, often under a P3 lease agreement. And this is what a capital projects fund is used for.

As the brochure continues, this private corporation literally promotes for sale to governments how to bypass the laws that require voter approval.

Continued…

In various states, a voter referendum is required to raise property taxes. This makes it difficult for local governments to cost-effectively finance new projects and existing infrastructure upgrades when they are needed… Consequently, a cash-flow mismatch exists between the up-front costs of public projects and generation of tax revenue. To fill this gap, land-secured bond financing was created so governments can fund infrastructure directly and developers can fund the public-use components of new neighborhoods before the improvements are conveyed to municipalities.

In other words… these bonds are created to bypass the lawful voting procedure that would otherwise be required of the people to raise property taxes. The government can “fund infrastructure directly” – which means it can create anything without voter approval; directly by contract and lease agreement with private corporations, who then earn the fees and customer charges for this direct contract with government and not the people. This is literally “taxation without representation”. And government creates what are called “Special Financing Districts” in order to do just that – to bypass the legal voting system. Special Finance Districts are bestowed with the power not to tax, but to create fees and charges for “services” they provide, which can then later be levied on property tax and be responsible for the confiscation of the property if not paid. This is how an unconstitutional and unlawful customer fee becomes a tax.

And perhaps the worse consideration of all… when government invests into these investment funds and commingled State funds, one way they do so is by offering “corporate bonds” (low interest loans) to private corporations. So ultimately, the money being used to enter into lease agreements with government by private corporations outside of voter approval is very likely taxpayer money that has been bonded (loaned) to the corporation by the very taxpayers and government who will agree to give all of its revenue to that corporations – because the taxpayers are merely customers and have no vote. This is ironic to say the least… And perhaps next time you park in a parking garage you’ll think about which bank or corporation is actually getting your parking fees under a lease agreement with government.

The brochure continues:

“Land-secured bonds generally are not rated by the rating agencies because they are considered riskier than other municipal bonds and are unlikely to receive investment-grade ratings. As home-builders have come to understand, however, as long as all goes according to plan, the risks lessen over time. Risks are highest as development begins and the project is still dirt’ risk then declines as the project reaches its full potential, builds out, and establishes a diversified tax base with a record of special tax or assessment payments. The annual tax or assessment levy is generally part of the owner’s property tax bill so payment can be routine.

The creative use of land-secured municipal financing through special tax and special assessment districts offers an opportunity for home-builders and real estate developers to partner with local governments to bring new development to fruition.”

(Source Link: www.cdfa.net/cdfa/cdfaweb…/WilliamBlair-SpecialTaxDistrictFinancing.pdf)

I am assuming that this answers the question as to why cities and counties across the country are building new housing, strip-malls, mega shopping centers, and business complexes all over the place in “planned communities”, while empty businesses and homes stockpile in the rest of the cities and counties as banks continue their siege of foreclosures on the clueless people.

The more buildings government builds, the more taxation can be brought into the government Special Financing District!

And it is perhaps important to note here that the City of Stockton bankruptcy victims might be the very corporations that will be defaulted by this Chapter 9 proceeding, and may have been operating under this type of Land-Secured financing – which means that the homes of voters (customers) may very well be collateral for this default!

Special District Services, Inc – A private, non-governmental Florida company – describes “Special Taxing Districts” as:

Special District Services, Inc. creates and manages special taxing districts throughout the State of Florida. SDS was organized to meet the growing demand for urban services and provide a public financing vehicle to serve community infrastructure and service needs in a timely and cost-effective manner. SDS is a results-oriented company with the philosophy that a Public-Private Partnership is an essential ingredient for the successful delivery of public infrastructure through the use of special districts. The basic concept being that growth pays for itself. We are committed to tailoring services to provide essential planning, organization, management, financing and construction of public facilities through the use of special taxing districts.”

The importance of this statement cannot be overstated!

Here you have a private corporation entering into a Public-Private-Partnership with governments “throughout the State of Florida” through the utilization of State created “Special Districts”. This company also states that it is “creating, planning, organizing, managing, financing, and constructing public facilities through the use of special taxing districts“.

So perhaps you might be asking the same question that I am… What in the hell is government doing, if it is contracting out all of its “public services and infrastructure construction and management” to private corporations through PPP’s?

Why not just cut out the middle man and have private corporations be the government?

Well, in case you haven’t noticed, that is exactly the plan – the incremental privatization of all governmental functions into outside private corporation hands, using private associations sanctioned by the Federal Government and the United Nations to make this transition one of uniform legal organized crime. But the real trick for government is to be able to do this without the taxpayers even knowing it is happening, keeping them distracted and entertained by “Monday Night Football” and “Dancing With The Stars”, while working two jobs in order to pay their taxes and never even comprehending that they are customers. You see, the people – if ever they actually wake up, look around, and actually see what is happening ; that governments across the country and indeed the world are all but giving away everything that the taxpayers of America have built to private corporations (including football stadiums), while at the same time being the main investor into those same private corporations through the majority stock ownership of them in government investment funds – the people would surely revolt tomorrow! But without this knowledge, and without even the slightest comprehension that this is all happening right under our collective noses, this well-oiled organized crime machine just keeps on taking everything. And as long as this true nature of this collective government municipal corporation remains unseen by the people; as long as public-private-partnerships, special districts, and the very Comprehensive Annual Financial Report that I am reading from is kept out of the realm of comprehension by the vast majority of the masses of the people, there will literally be nothing left in this world that is truly owned by and in the name of the people. The world will be officially a colony of indentured, enslaved, and indebted servants with nothing but what government provides for them in monopolistic fashion. This is the planned future of world government. And these are the tools that are being used to implement that plan, even as the GASB and other private associations are implementing “global financial accounting standards” in order to make uniform the worlds governments in accounting practices.

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(Page 69-70) Assets, Liabilities and Net Assets or Equity
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At some point in history, the goal of governments changed, and the earning of money within now legal, organized crime became the new goal…

The Stockton CAFR explains:

Cash and Investments

Except for certain bond proceeds, the City pools cash from all funds in order to maximize interest from investment activities. Money market investments and certain nonparticipating guaranteed investment contracts are carried at cost. All other investments are stated at fair value, which is based on published market prices

**Here again we see that earning interest on investment is the main objective of government, not filling in your potholes.

The City participates in an investment pool managed by the State of California, the Local Agency Investment Fund (LAIF), which has invested a portion of the pooled funds in structured notes and asset-backed securities. Based on information obtained from the State of California, the investment in LAIF has been recorded at fair value.

**These State investment pools are called “commingled funds”, and are generally invested in by all cities, counties, and school districts within a State as a requirement by law. In 2011, the California State Treasurer’s Investment Fund (STIF), which includes the LAIF, stood at over $64 billion in liquid investments. And you wonder where all of your tax dollars go…

“Interest income on pooled investments is allocated on the basis of average daily cash balances in the General Fund, certain special revenue funds, debt service funds, capital projects funds, Water Utility Fund, Wastewater Utility Fund, Stormwater Utility Fund, Central Parking District Fund, internal service self-insurance funds, and the Agency Funds, as required by law or as directed by the City Council adopted budget. The remainder of interest income is allocated to the General Fund as required by California Government Code.

For purposes of the statement of cash flows, the City reports as cash and cash equivalents all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased, LAIF and other money market investments, and cash held by fiscal agents. Investments that are held with fiscal agents with a maturity greater than three months are not reported as cash and cash equivalents.”

It is important to note here that it is indeed the legal requirements of Cities and counties to invest their funds into the State commingled funds. The comprehension of this is paramount, for it is indeed the law (statutes, codes, etc) that forced this financial tyranny to happen. And so the important point is that in order to change this so that the taxpayers once again are the main beneficiaries of their own taxation and customer fees, the fact is that the laws must be changed and recreated.

Again, this is the goal of Mr. Walter Burien and his Tax Retirement Funds. And this is the perfect reason and opportunity for the people of stockted to stand up and vote for Mr. Burien’s plan to end taxation and make government for the people again. But the important thing to consider is that until the laws are changed, and until the laws state that this type of behavior and financial terrorism is illegal, your public officials and appointed employees of government will continue in this organized legal crime – BECAUSE IT IS LEGAL AND DONE ON BEHALF OF THE PEOPLE WITH THEIR VIRTUALLY UNKNOWN INFORMED CONSENT!!!

Often, council members of local governments have no idea that much of this investment wealth even exists, and are never really told about it. For the most part, the majority of council persons are only there as a formailty, so as to fulfill the legal requirement of a council vote to approve the projects that are schemed up by such appointed positions as the Stockton City corporation’s “City Manager” and Mayor. The more clueless, financially uneducated, and arrogant the better.

Of course, the City Managers and Mayors have their own private associations for which they are also members of, like:

The United States Conference of Mayors (http://usmayors.org/)

The voice of America’s Mayors in Washington D.C.

The organization sets policy as the collective voice of municipalities and their leaders. Committees and task forces develop policies that the entire body votes on before sending their resolutions to elected leaders in Washington. They also undertake studies on issues related to their special interests and fund grants and awards to incent execution of their ideals. The group has continuously evaluated the landscape of public policy and has current issues related to homeland security and economic recovery…

By standing as a unified voice through this organization, municipal leaders have influenced United States Presidents and United States Congresses to enact legislation that has provided a legacy of benefits to cities.”

LINK–>(http://en.wikipedia.org/wiki/Conference_of_Mayors)

The National Conference of Democratic Mayors (http://democraticmayors.org/)

“The National Conference of Democratic Mayors (NCDM) is an exciting organization which represents a strategic network of Democratic Mayors across the country – CEO’s of cities (corporations) from Los Angeles to Baltimore and Seattle to Orlando. We are on the front lines of addressing some of the nation’s most critical issues and creating innovative solutions every day.

There are more than 500 Democratic Mayors nationwide ~ with Democratic Mayors leading 37 of the 50 largest cities and 39 of the Capital cities.”
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The International City/County Management Association (ICMA) (http://icma.org/en/icma/about/organization_overview)

ICMA’s mission is to create excellence in local governance by fostering professional management worldwide.”

“ICMA, the International City/County Management Association, develops and advances professional local government management to create sustainable communities that improve lives worldwide. ICMA provides member support; publications; data and information; peer and results-oriented assistance; and training and professional development to nearly 9,000 city, town, and county experts and other individuals and organizations throughout the worldThe management decisions made by ICMA’s members affect millions of individuals living in thousands of communities, from small villages and towns to large metropolitan areas.”

**Dare I ask how the whole “local helps worldwide” thing works? Creating sustainable communities is basic code for Agenda 21 Sustainable Development, via the Rio Summit of the United Nations, by the way…

The California City Management Foundation (http://www.cacitymanagers.org/whats-city-managers)

“Since 1924, City Managers have adhered to a Code of Ethics developed by the International City/County Management Association (ICMA). Revised most recently in 2004, this code outlines concepts of effective and democratic local governments in an effort to provide consistently excellent public service.”

**Note: There is a City Managers Association branch of ICMA in all 50 states.

**Also note that this says nothing about adhering to the code of ethics of the founding of America or any other country or constitution… since 1924!

Municipal Management Association Of Northern California (http://www.mmanc.org/)

“The League of California Cities is a partner with MMANC and both are members of the Cal-ICMA Consortium. In 2008, MMANC will have one appointment to each of the eight League Policy Committees, which are composed of city officials from around the state. The committees help to make League policy by reviewing legislation, studying key issues impacting cities, and suggesting broad policy guidelines. This is an excellent opportunity for MMANC to be aware of and involved in key statewide issues facing cities.”

The League of California Cities (http://www.cacities.org/index.jsp)

“The League’s online bill search makes it easy for city officials and others to track the League’s position on bills, view letters that the League has sent to legislators or contact the League lobbyist working on a bill. League positions and lobbyist assignments are available for all League-tracked current session bills… The League’s federal page has information on federal bills and sample letters.

“Big Win on AB 1551 Accident Liability Bill, AB 2451 Death Benefits Bill Moves to Assembly – It was a big win for cities Thursday when League-opposed hot bill AB 1551 (Torres) was amended to address an unrelated housing issue. While AB 2451 (Pérez) another priority bill is still moving after being passed in the Senate this week.”
League Removes Opposition on Bill Amending Public Records Act – The League has removed its opposition and taken a neutral position on SB 1002 (Yee) after it was amended on Monday, Aug. 20.”
“SB 1186 Addressing ADA Lawsuits Expected to Move Quickly Through the Legislature – For the better part of a year, the League has been involved in a working group assembled to address issues surrounding the abuse of ADA lawsuits. SB 1186 (Steinberg), the vehicle for these solutions, will most likely be amended today and heard in the Assembly Judiciary Committee on Tuesday or Wednesday next week.”
“Moody’s Report on California Cities’ Fiscal Vulnerability Issued – Moody’s Investor Services issued a report on Aug. 17 entitled, “Why Some California Cities Are Choosing Bankruptcy,” that examines the growing fiscal pressure on California cities that have prompted four cities (out of 482) to seek Chapter 9 federal bankruptcy protection recently — three in the last few months.”

California ICMA (http://icma.org/en/ca/home)

“Seven years ago, California created a new model for its affiliation on a state level with ICMA.  Cal-ICMA, is a collaboration of the California City Managers’ Department (CMD); the California City Managers Foundation (CCMF); the two assistants groups (MMANC and MMASC); the County CAOs; the COG Directors; along with members of the academic community and from all of the other ICMA membership categories. Cal-ICMA is the “official” state affiliate with ICMA and is inclusive of all ICMA members without creating another “organization” with a separate dues structure.

Cal-ICMA coordinates member service activities for California, including: professional development and training; new member recruitment and member retention; response to “ethics issues” relating to ICMA members; and appointments to ICMA committees, task forces, and nominees for the ICMA Executive Board.

This collaborative maintains a strong relationship between ICMA and its members in California and creates a broader base of collaboration between all local government management professionals in the state, particularly in the area of professional development and training.

Cal-ICMA Leadership and Staffing

Cal-ICMA has a 15-member Board of Directors composed of representatives from the various groups of ICMA members within the state.”

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Now, if the reason for treason is lost on you here, let me explain what all of this means. It means that your City Manager is likely a member of an national or international private non-governmental association that has no allegiance to America or any other country. It means that your City Manager is being told what to do by this private association, uniformly, with most other significant City Managers out there. It means that this private association is influencing the creation, amendment, and voting process for local, State and Federal legislature, and has its own lobbyists – which is strange when you consider that this means that government is essentially lobbying itself (!?!). It means that your City Manager does not have your best interest at heart, nor is he or she required to, since he or she was not elected by you in the first place. And, if you haven’t figured it out yet, this means that basically your whole government has been outsourced to international interests, organizations, and private corporations under P3 agreements who profit globally from your ignorance of what is actually going on here. This is your America, your State, your County, and your Municipal Corporation that you call your “city” and your home.

Perhaps most important to understand here is that these private associations of unelected officials are lobbying for themselves, not for the people. The City and other governments are like any other corporation when it lobby’s – doing so without consideration of its “customers” in its attempts to gain benefits and entitlements for itself. Thus, it creates and pushes for laws to limit such groups who may fall under the American With Disabilities Act, as seen above, so as to limit or avoid lawsuits that may benefit the people.

Continuing on with the CAFR and its “Notes”:

“Restricted Cash and Investments

Proceeds from debt and other cash and investments held by fiscal agents by agreement are classified as restricted assets in the proprietary fund and government-wide financial statements.”

**Remember, in order to gain “proceeds from debt”, it means that this City corporation or one of its agents must have loaned money and is receiving payments on those bonds/loans. Why is government acting as a banking or lending institution? Is that what you voted for? Oh, that’s right, the CEO isn’t elected by you!

“Receivables/Payables

Short-term interfund loan receivables and payables are reported as “due from other funds” and “due to other funds,” respectively. Long-term interfund loan receivables and payables are reported as “loans to other funds” and “loans from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”

“Loans to property owners” represent loans for repairs to low-income’ owner and tenant-occupied households throughout the City. These loans are to be repaid over an extended period of time; therefore, the vast majority of the year-end balance will not be repaid within the next year…”

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And here again we can see the intrafund transfers and loans between funds coming into play. These fund-to-fund loans are listed as future liabilities in the fund that received the loan from the other fund, in the full amount of the loan. But again, the full loan amount that is an asset because it will be paid back by the other fund that received the loan, is not reported in full as a future asset affecting the total asset balance of the fund today. Short and long-term liabilities affect the fund that borrowed the money, but only short-term assets (payments on the loan) affect the fund that loaned the money. And here the term “internal balances” represents the difference between government (taxpayer) balances and business-type (customer-based) balances – the difference between these two being the internal balance. But remember… we are only talking about one bank account here, partitioned into different investment funds so as to hide that wealth in restricted partitions and profit from that wealth through investment return and, as seen here, interest paid by government, to government – which really means by taxpayers to government, whom might use that interest for taxpayer services, but probably wont.

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Long-Term Obligations

In the govemment-wide and proprietary fund financial statements, long-term debt and other long term obligations are reported as liabilities in the governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums, discounts, deferred amounts on refunding, as well as bond issuance costs, are deferred and amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium, discount or deferred amount on refunding. Bond issuance costs are reported as deferred charges.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

**This is stating once more that items are reported differently depending upon which statements you are looking at. Here we can see stated once more that long-term debt – the face value of the bonds – are instantly reported as a liability in the full amount of the bond. And yet the premiums or discounts (gains from interest and dividends) is reported up front, being “deferred and amortized over the life of the bonds”. Thus government is once again promoting future debt while hiding future assets. And yet in the fund financial statements, we see that they report the current premiums and discounts, but call them different things. Of course, the fund financial statements are not included in the budget report that taxpayers see and which councils and mayors promote to the taxpayers.

Capital Contributions

Capital contributions are comprised of cash and assets donated from developers (private persons or industry). Connection fees are recorded as capital contributions in the Water Utility and Wastewater Utility enterprise funds.

**A capital contribution in the form of money, real estate, or other asset generally comes from a non-governmental source. These contributions usually include an “operating agreement” in the form of a contract, meaning that government is accepting gifts and then contracting with private persons, governments, or corporations. These can be used as well in public private partnerships, as when say a parking garage or the capital to build that garage is financed via a capital contribution from say J.P. Morgan Chase. Of course the income earned on this “public capital infrastructure” may well be contracted through this private agreement with government to go into the pockets of J.P. Morgan Chase instead of to the taxpayers who use that “donated” capital. Thus, capital donations aren’t generally just an altruistic notion by such entities as big banks. There are of course exceptions, and generally the donation of true charitable capital will include in the agreement that that capital or capital infrastructure must be used for public purposes and protected as such. Water, sewer, power, and gas utilities are also examples of cases where a private corporation builds public infrastructure and benefits from the use of that infrastructure through government contract (taxpayers as customers using those services provided by the donated capital assets).

Property Taxes

Property taxes receivable are recorded in the fiscal year for which the tax is levied. In governmental funds, revenue is recognized when measureable and available. The County levies, bills and collects property taxes for the City. Property taxes paid to the City by the County within 60 days after the end of the fiscal year are “available” and are, therefore, recognized as revenue. Secured and unsecured property taxes are levied based on the assessed value as of January 1, the lien date, of the preceding fiscal year. Secured property tax is levied on October 1 and February 1. Collection dates are December 10 and April 10, which are also the delinquent dates. under the Teeter Plan, the County pays the City 100% of the tax that is levied. The County assumes responsibility for collecting any delinquent amounts and retains penalties and interest for those amounts.

Property taxes are extortion by government and are not at all what most would call “constitutional” – though its origins are from the “Takings Clause” of the 5th Amendment. Don’t pay your property taxes, and government takes (collects) your property to pay those delinquent taxes. This is just one more way of knowing that property is not and never has been owned by the people – because government can take that property and sell it whenever it so chooses. It can take your children and your motor vehicle in the same way. And all of this because you consent to it in contract with the United States. You are a tenant… you own no property, but are allowed the privilege of caring for and controlling government owned property as a “registered” citizen.

Here’s what congress has to say about it:

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“The new money is issued to the banks in return for Government obligations, bills of exchange, drafts, notes, trade acceptances, and banker’s acceptances. The new money will be worth 100 cents on the dollar, because it is backed by the credit of the nation. It will represent a mortgage on all the homes and other property of all the people in the Nation.
–Senate Document No. 43, 73rd Congressional Record, 1st Session, 1933–

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Net Assets

In the government-wide financial statements, net assets are reported in one of three categories:

Invested in Capital Assets, Net of Related Debt – This category consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.

• Restricted Net Assets – External creditors, grantors, contributors, or laws or regulations of other governments restrict this amount.

• Unrestricted Net Assets – This category consists of all net assets that do not meet the definition of “invested in capital assets, net of related debt” or “restricted net assets.”

The City’s government-wide statement of net assets reports $208,502,000 of restricted net assets, of which $96,095,000 is restricted for enabling legislation.

Fund Balance

Fund balances presented in the governmental fund financial statements represent the difference between assets and liabilities. GAS’S Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds. This new standard has substantially changed the categories and terminology used to describe the components of fund balance. As of June 30, 2009, the City categorized fund balances in the Balance Sheet as reserved and unreserved. GASB Statement No. 54 requires that the fund balances be classified into categories based upon the type of restrictions imposed on the use of funds. The City evaluated each of its funds at June 30, 2010 and classified fund balances into the following five categories:

• Nonspendable – Amounts that cannot be spent because they are (1) not in spendable form, such as prepaid items, inventories and long-term receivables for which the payment of proceeds are not restricted or committed with respect to the nature of the specific expenditures of that fund or (2) legally or contractually required to be maintained intact.

**Ah, so the fact that future assets in the form of long-term assets are not immediately “spendable” today, they are not included as assets to meet future liabilities – even though those future liabilities are reported as a negative balance today, and even though they cannot be spent today, by law… How convenient! Three words that are not used in this report? Honesty; integrity; ethics.

• Restricted – Amounts that are restricted by external parties such as creditors or imposed by grants, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. The City has legislative restrictions on amounts collected and reported in the City’s various governmental funds. As a result, these restrictions have been classified as restricted for community development, debt service reserve, general government, housing projects/loans, libraries and arts, parks and recreation, public safety, redevelopment projects, solid waste/recycling and streets, transit and traffic.

• Committed – Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action by the entity’s “highest level of decisionmaking authority“; which the City considers to be the Stockton City Council governing body legislative actions. This level of approval has been reported in the governmental funds in establishing the commitments within the various functional categories.

• Assigned – Amounts that have been allocated by action of an official authorized by the Stockton City Council in which the City’s intent is to use the funds for a specific purpose. The City considers this level of authority to be with the City Manager of the City of Stockton.

**Remember, the word intent is a fictional tale told by the government. No law requires that intent to come to fruition. The only way to guarantee that the intent of something or someone is true is through a law or signed contract stating the intent as a requirement. The classic falacy among Americans is to continuously bring up the intent of the Founding Fathers and their constitution… though intent has nothing to do with the actual law and how it is interpreted. A government based on intent is a government based on lies and deceipt by nature. Thus, changing the law and exercizing punishment for breaking that law will be the only way to guarantee the intent.

• Unassigned – Amounts that constitute the residual balances that have no restrictions placed upon them. As restrictions exceed available resources at June 30~ 2010, only deficit amounts are reported in the unassigned category.

**One might ask, as a taxpayer who is stuck with the responsibility to pay off that incurred debt of the council and City Manager of the corporation of Stockton City, why isn’t there a restriction on debt? Why are we allowing you to spend more than you earn in taxes and fees? Why are you hiding unrestricted funds under the premise of “intent to use” or “use for specific purposes” in liquid investment funds, while putting the general-use fund in a deficit? And why aren’t we stringing y’all up from the nearest tree, for fraud and embezzlement?

The City reduces restricted amounts first when expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned or unassigned) amounts are available. The City reduced committed amounts first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. Additional information concerning the nature of the City’s fund balances pursuant to GASS Statement No. 54 is provided in Note 8 – Fund Balance, beginning on page 113.

**So for you in the Council and your City Manager… a question for you: How is it that you have oodles of restricted funds while at the same time you have no or negative unrestricted funds, if your own report and rules state that you must spend restricted funds before unrestricted ones? This is yet another financial paradox you have somehow been able to make possible through your very clever “creative accounting”. How can you possibly have restricted fund balances in the black if you have unrestricted fund balances in the red? Unless you committed organized, criminal fraud that is…

**Well, let’s do as the Notes suggest, and fast forward to Note 8 to take a quick look at the graph presented on (Page 113)…

8. FUND BALANCE

“A summary of the composition of the City’s reported nonspendable, restricted, committed, assigned and unassigned fund balance amounts as reported in the City’s Governmental Funds balance sheet at June 30,2010 is as follows (dollar amounts in thousands):”

**Interesting to note here is the line item for “loan receivables”. Notice that for the general fund, $11,688,000 of future loan payments (receivables) are listed in the “Nonspendable” category. This represents almost half of the entirety of the general fund balance. In other words, almost half of the general fund balance is restricted as “Nonspendable” simply because the council and City Manager saw fit to loan that fund balance away. But unlike long-term liabilities in the form of future loan payments (spend-ables) which are shown as liabilities against current assets, these future assets in the form of loan payments cannot be considered or used to pay or offset current liabilities, nor to show those liabilities as paid on the balance sheets. The use of general purpose operating funds are restricted in their use as future assets (receivables) for payment of current or future liabilities, even though current and future payments for other loans affect the value of current assets so that those current assets cannot be used to pay current or future liabilities. Is the shell game starting to be clear? Does this sound honest to you?

Accounting for Escheat Property

The City is in compliance with GASS Statement No. 21, Accounting for Escheat Property, and accounts for these assets in the General Fund when the assets are subject to escheatment in accordance with California state law.

Please understand that an “escheat property” is defined as the entitlement of the State, by virtue of its (self-proclaimed) sovereignty, as being the original and ultimate proprietor of all the lands within its jurisdiction.

Bouvier’s Law Dictionary of 1856 states that: this seems to be the universal rule of civilized society, that when the deceased owner has left no heirs, it should vest in the public, and be at the disposal of the government. Of course, since government’s universal rule is to profit from everything it can, it will certainly take that property and sell it to contractors or to one of its its taxpaying customers.

And of course, this feeds right into the congressional record, which as you remember stated: The new moneywill represent a mortgage on all the homes and other property of all the people in the Nation.”

So if you die, and you have no heirs, or if you loose your “property” through “asset seizure”, the government will simply take what it considers as rightfully its own – your land, your property, and your legacy! This is a wonderful reason for government to convict innocent men of crimes. And if you do have heirs, it will tax your estate a 50% death or “orphan” tax. So either way, your death is a guaranteed asset to government. Surely if government could sell your body for food, it would. It already asks for your voluntary consent to harvest your organs, while hospitals charge millions for their use, and it already allows aborted fetuses to be sold for parts. So why not? After all, you are only human capital under government’s human capital management… cattle on a farm, remember?

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

**An earthquake may happen, therefore we have less money to use for taxpayer services since we must prepare for a possible future earthquake. Let’s create an investment fund…

**Martians may attack, therefore we must reserve funds for an alien invasion. Oh, by the way, those funds no longer exist in the financial reports, and cannot be used to cover our bankruptcy defaults to real life people today…

**So government estimates what its actual current fund balances are? Is it that difficult to simply count the actual totals up and put them in a simple report? This again is the utilization of future liabilities and assets so as to effect the actual current fund balances of today. More creative accounting here… Imagine if you told the IRS that your tax return was only an estimate, and based on mere assumptions of what you are reporting to it, and that the actual results of your accounting to the IRS might differ than what you actually have in the bank. The only difference between you and government is that you’d go to jail while these politicians and creative accountants go right on cheating on their returns – because this government claims that a private association has power and authority to make up the rules that “requires them to make estimates and assumptions” by law. Total, plausible, deniable legal protection.

Comparative Data

The fiscal year 2008/09 comparative data amounts are presented only to facilitate financial analysis. These columns do not present information that reflects financial position, changes in financial position or cash flows in accordance with GAAP.

**So the fact that fund balances went up this year in the CAFR while the budget report shows a negative year should not be misconstrued as a good year for government, but is a bad year for the people… LOL! Ignore the CAFR! Nothing to see here!

New Pronouncements

Effective July 1, 2009, the City implemented the following new governmental accounting standards issued by the GASB:

GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets. This statement establishes more specific guidance for accounting and financial reporting in the areas of recognition, initial measurement, and amortization of intangible assets. Intangible assets include, but are not limited to, water rights, easements, timber rights, patents, trademarks and computer software. As a result of this statement, permanent right of way easements have been separately reported in the City’s footnotes and added to the City’s capital assets. Refer to Note 5 – Capital Assets for more information…

**Now just imagine what other types of “assets” the Cities, Counties, States, and especially Federal governments are not reporting to the people simply because this private association called the GASB and its federal version (FASB) hasn’t made a rule that forces them to yet…?

GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. GASB Statement No. 54 improves the financial reporting by providing fund balance categories and classifications that are more easily understood. The reserved components of fund balance are eliminated and replaced with restricted, committed, assigned, or unassigned classifications to enhance the consistency between the information reported in the government-wide and the governmental fund financial statements to avoid confusion about the relationship between reserved fund balance and restricted net assets. The fund balance disclosures seek to give users information necessary to understand the processes under which constraints are imposed upon the use of resources and how those constraints may be modified or eliminated. The City’s report includes an early implementation of this statement. Additional information on the fund balances of the City GASS Statement No. 54 is provided in Note 8 – Fund Balance, beginning on page 113.

As a result of the implementation of GASB Statement No. 54, the City evaluated each of its governmental funds at June 30, 2010, which resulted in a reclassification of funds within the governmental fund types for fiscal year 2009/10. The City/County Library, Recreation Services, and Boat Launching Facilities, previously reported as special revenue funds, have been combined with the City’s General Fund for financial statement presentation purposes because a substantial portion of the revenue sources recorded in these funds do not meet the definition of being restricted or committed to expenditures for specific purposes, as defined by GASB Statement No. 54.

**Busted! Just look at what a simple little rule change will do to flush out local government’s attempts at restricting funds that they have no right or lawful reason to restrict! Now imagine what else could be flushed out if only government reporting statements were straight-forward and honest instead of creative and purposefully difficult to read and deceiving…? And imagine if Walter Burien and myself were involved!!!

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(Page 77-81) Note 2. Cash And Investments
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2. CASH AND INVESTMENTS

The City maintains a cash and investment pool that is available for use by all funds. Each fund’s portion of the pool is displayed on the balance sheet (governmental funds), statement of net assets (proprietary funds), and statement of fiduciary net assets (agency funds) as “cash and investments.”

Summary of carrying amounts at June 30, 2010 (dollar amounts in thousands):

Deposits $17,679,000
Investments $468,015,000
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Total Cash and Investments $485,694,000

Restricted Cash and Investments $229,389,000

Deposits – At June 30, 2010, the recorded amount of the City’s deposits was $17,679,108; and the bank balance was $20,044,297. The bank balance and carrying amount differ due to deposits in transit of $2,386,314 and outstanding checks of $4,751,503.

The bank balances were entirely insured or collateralized at June 30, 2010. Section 53652 of the California Government Code requires financial institutions to secure a state or local governmental entity’s deposits, in excess of insured amounts, by pledging government securities in an undivided collateral pool held by the depository regulated under state law as collateral. The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by all public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of secured public deposits.

**Care to venture a guess as to what this means? A trust deed is a legal contract that provides a mortgage lender with a lien on your home. “First” signifies that the lender’s lien on your property has a first priority status, which means the lender will be first in line to foreclose on your home if you default on your payment (sort of like when government takes your home for default of property or other taxes). So, my fellow cattle, this simply means that banks or “financial institutions” as they like to call themselves are actually securing your government’s pooled investments with your own mortgages – your own homes. Again, these properties are not yours to begin with, because you consent to this process of collateralization without even knowing it, and because Federal and State law say that it’s simply OK for government to utilize your home and property as collateral to insure against its own investments, or as I like to call it, governments addiction to can’t-lose gambling. They can’t lose, you see, because “The new moneywill represent a mortgage on all the homes and other property of all the people in the Nation.” And of course, they are insured by the corporations that government holds controlling stock in. And those homes are being used as collateral for government’s gambling of your hard-earned money. If they lose, they create more collateralized money called a “bailout”! See how that works? And do you see how it might not matter if they lose, and that crashing the “economy” is just a standard of practice for government?

**Of course, when we look at what most governments are investing in, we see a laundry list of what is wrong with this country/world and with the banking system and stock market itself (government being the largest share holder of most corporations out there, including banks and mortgage companies). The largest bully and thief in the markets and in banks is the government institutional investors, who can collectively move the markets in which ever way they wish to force-trade them, sure to collect on any futures, put options, or other derivatives bets they make. For government institutional investors, winning a bet in the stock and futures markets is like throwing a rock over the ocean and betting that it will land somewhere in the ocean… that is, unless they deliberately wish to loose that investment so that some other entity can purposefully gain from the bad bet. This “laundering” of tax money through investment is again just standard practice for an organized crime syndicate that operates in the public trust.

InvestmentsCalifornia statutes, the City’s investment policy and individual bond documents authorize the investment of funds in the following instruments:

Securities of the U.S. Government, or its agencies
• Local agency obligations (including the City of Stockton*)
• Certificates of deposit
• Negotiable certificates of deposit
• Bankers acceptances
• Commercial paper
Local Agency Investment Fund (LAIF) deposits – State pool
• Repurchase agreements
• Demand accounts – insured/collateralized
Money market mutual funds
• Medium term notes
Guaranteed investment contracts (GICs)

*When permitted by IRS and SEC Rulings

Although the City did not participate in any securities lending transactions or enter into any reverse repurchase agreements during the year, the City does have investments in LAIF in the amount of $39,995,351. The total amount invested by all public agencies in LAIF at June 30, 2010 was $23.3 billion. LAIF is part of the State of California Pooled Money Investment Account (PMIA) whose balance at June 30, 2010 was $69.4 billion. Of this amount, 2.78% is invested in short-term asset backed commercial paper, and 2.64% is invested in structured notes and medium-term asset backed securities. PMIA is not SEC-registered, but is required to invest according to California Government Code. The average maturity of PMIA investments was 203 days as of June 30, 2010.

The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by California state statute. The value of the pool shares in LAIF, which maybe withdrawn, is determined on an amortized cost basis, which is different than the fair value of the City’s position in the pool.”

Here again we see that the California State Treasurer was holding $23.3 billion of pooled local government investments across the State, with a total balance of $69.4 billion for all investments of government in that pool. And for some reason, the PMIA gets the special benefit of being free of SEC registration.

Here is what the SEC had to say about this exemption:

“State and local governments issue municipal securities to finance a wide variety of projects that are critical to building and maintaining the nation’s infrastructure.

At the start of 2012, there were more than one million different municipal bonds outstanding totaling $3.7 trillion, with 75 percent held by individual “retail” investors.

Despite its size and importance, the municipal securities market has not been subject to the same level of regulation as other sectors of the U.S. capital markets due to broad exemptions under federal securities laws for municipal securities.

Without a statutory regime for municipal securities regulation, the SEC’s investor protection efforts in the municipal securities market have been limited. The SEC’s report discusses potential legislative changes that could help improve disclosures to investors. For instance, the report recommends that Congress consider authorizing the SEC to set baseline disclosure standards and require municipal issuers to have audited financial statements.”

You may download the full report, here: http://www.sec.gov/news/press/2012/2012-147.htm

The SEC also reports:

  • In 1945, there was less than $20 billion of municipal debt outstanding.
  • In 1960, there was $66 billion of municipal debt outstanding.
  • In 1981, there was $361 billion of municipal debt outstanding.
  • Today, investors hold approximately $3.7 trillion of municipal debt.

This statement by the Securities and Exchange Commission should hit home with the entities, corporations, contractors, and persons who are about to be defaulted and defrauded upon by the City of Stockton and the corrupt bankruptcy court (which is just another part of government). For the Federal Government states here that “protections” for these investors are severely “limited”. And with 3.7 trillion in debt, if we don’t stop this municipal corporation from declaring bankruptcy and defaulting on these investors, then one by one every other government across America will surely follow the same fraudulent pattern.

Some of the recent news headlines from the SEC on municipal securities include:

Muni Enforcement (links)

Just reading these headlines should be enough to tell anyone viewing this presentation that something is very, very, very wrong in America, and that banks and investment firms like J.P. Morgan are right smack dab in the middle of it. But the conflict of interest of J P Morgan’s majority of stock being owned by government investments (especially pension funds) is perhaps the greatest horror of all – for how can government harm its own investments and returns in such corporations by finding them guilty of fraud? Ironically, be it through investment returns or through fees for committing criminal fraud against government and the people, the government is always in a hedge position to profit from either scenario – a form of arbitrage that perhaps has never been considered by “economists” out there.

Where do those hefty fees go to anyway…?

Not the people!

In fact, here is what it said about J.P. Morgan’s violation of the Pay-to-Play rules:

“The pay-to-play rule, MSRB Rule G-37, generally prohibits firms from underwriting municipal bonds for an issuer for two years after a municipal finance professional (MFP) involved with that firm makes a campaign contribution to an elected official of that municipality.

In the Report of Investigation, the Commission makes clear that an executive who supervises the activities of a broker, dealer, or municipal securities dealer is not exempt from the MSRB’s pay-to-play rule just because he or she may be outside the firm’s corporate governance structure. As such, an executive may be deemed an MFP if he or she is not part of a broker-dealer, but oversees the broker-dealer from the vantage of the holding company…

When the Commission approved the rule in 1994, it indicated that banks and bank holding companies affiliated with brokers, dealers and municipal securities dealers were excluded from the rule. Since then, the Commission has not directly addressed whether directors, officers or employees of such banks and bank holding companies are MFPs if they supervise the public finance activities of brokers, dealers and municipal securities dealers or serve on executive committees that engage in such supervision.

The Commission’s Report of Investigation stems from an Enforcement Division inquiry into whether JP Morgan Securities Inc. (JPMSI) violated the MSRB Rule. According to the Report, JPMSI underwrote municipal bonds issued by the state of California within two years after a then-Vice Chairman of JPMSI’s parent bank holding company (JP Morgan Chase) gave a $1,000 contribution to a California elected official…”

Of course, the MSRB (Municipal Securities Rule-making Board) is just a another self-regulatory organization (not voted by the people) created under the Securities Acts Amendments of 1975 and a is a Virginia non-stock corporation. So really it is just another unelected association of the organized criminals of government.

The common misconception here is that government is somehow broken, and that it is so corrupt that it needs to be fixed. People actually believe that government officials are a bunch of idiots, even as they literally steal everything the people have right under their noses and leave them with worthless paper to represent the real wealth they once possessed. But you see, government is actually working like a well-oiled machine because it is so corrupt and because there is so much wealth involved, and there is no way to simply fix the problem. Again, this is perfectly organized criminal activity that is made legal by the very criminals that run it. In short, government is not at all broken. It is working exactly the way it was planned to work, and possibly better. It is the lack of action and reaction from people like you that is exactly what government wants. It wants you to send it a letter or write an email begging for justice. It wants you to sign an ineffectual petition asking pretty please with sugar on top for government to be nice to the people. It wants you to believe that you have no power to do anything about it… But this just isn’t the truth.

The CAFR continues under Note 2. Cash and Investments:

“Guaranteed Investment Contracts – The City has entered into nonparticipating guaranteed investment contracts (GICs), which are authorized under bond documents as outlined in the City’s investment policy.

GICs are non-marketable interest bearing agreements with or guaranteed by certain financial institutions. The agreements provide for a guaranteed return on principal over a specified period. A GIC is a general obligation instrument issued by a financial institution, subject to applicable legal restrictions. The City’s investments in GIG’s represent proceeds from bond issues that have been set aside (held for the benefit of the bondholders) as debt service reserves and proceeds of bonds that have been invested until used on the projects being financed. The investment contracts holding debt service reserves are held long-term and bear interest ranging from 1.860/0 to 5.330/0, while project funds are invested short-term with rates ranging from 0.42% to 0.94%. Any of the investment contracts are collateralized by investments, with $7,819,856 coltateralized at 104% to 105%, as set forth in the legal agreements.

Risks –

Interest Rate Risk – As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investme’nt policy provides that final maturities of securities cannot exceed five years. The exceptions to this policy are that U.S. Treasury or U.S. Agency securities may be used for investments greater than five years and investment in variable rate obligations of the City of Stoc:kton is permissible when aUowedby the IRS and SEC. Investments maturing beyond a five-year horizon should not exceed fifteen percent (150%) of the total portfolio value at any given time. Specific maturities of investments depend on liquidity needs.

Credit Risk – It is the City’s policy that commercial paper must have a minimum rating of A-1/P. Banker’s acceptances do not have credit rating limits. Medium-term notes must have a rating of A or better. Money matket mutual funds and federal agency securities must have the highest rating issued by the nationally recognized statistical rating organizations. The Local Agency Investment Fund (LAIF), administered by the State of California, has a separate investment policy governed by Government Code Sections 16480-16481.2, providing credit standards for its investments.

**Did I mention that government is also the main investor in the credit rating corporations that rate their commercial paper and credit worthiness?

Custodial Credit Risk – For an investment, custodial credit risk refers to the event in which the custodial bank (outside party) in possession of an investment security fails to supply the value of investments or collateral securities to the City upon demand. All securities, with the exception of the money market mutual funds and LAIF, are held by a third party custodian (Union Bank of California). Union Bank of California (UBOC) is a registered member of the Federal Reserve Bank. The securities held by USCC are in the street name, and a customer number assigned to the City identifies ownership.

As of June 30, 2010, the ratings of the City’s investments in U.S. Treasuries, U.S. Agencies, money market mutual funds, and tax-exempt municipal bonds range from AA to AAA by Standard and Poor’s, and Aa2 to Aaa by Moody’s Investors Service. Medium term notes have ratings ranging from A- to AAA from Standard and Poor’s and A3 to Aaa by Moody’s. Commercial paper is rated A-1 + by Standard and Poor’s and P-1 by Moody’s. LAIF, Negotiable certificates of deposits, and GIC’s are not rated. The City’s repurchase agreement is rated A-1 + by Standard and Poor’s and is not rated by Moody’s. Investments of bond proceeds permitted under bond covenants are included in the above ratings.

A summary of investments by category and maturity (fair value shown) at June 30, 2010 is as follows (dollar amounts in thousands):

U. S. Agencies – $96,143,000
U. S. Treasuries – $32,263,000
Medium term notes – $33,659,,000
Medium term notes (FDIC Insured) – $37,953,000
LAIF – $39,995,000
Money market mutual funds – $72,880,000
Negotiable CD’s – $537,000
Tax exempt municipal bonds – $1,899,000
Repurchase agreement – $16,124,000
GICs – $136,562,000

Total – $468,015,000

According to the Investment Company Institute and its industry statistics, there were 632 money market mutual funds in operation, with total assets of nearly $2.7 trillion, with $1.75 trillion of that from “institutional funds”, which are majority held by collective government investments across the country since institutional money market funds have an extremely high minimum investment requirement. The expense per share are low, and these funds are specifically marketed to corporations, governments, and fiduciaries. They are convenient for the legal organized criminals of government municipal corporations for the reason that revenues collected by that government can be transferred into these funds overnight from the corporation’s main operating accounts – the general and governmental funds. Large corporate chains, as well as governments across the country (a cooperative national chain of municipal corporations) will have different accounts with banks all across the country due to location constraints, but they generally electronically transfer a majority of those funds on deposit with these individual banks and place their revenues into a mutual money market fund. In this way, the investment return begins immediately, and the average daily balance of the mutual fund is maintained. Courts also invest and pool their money into what is called the Court Registry Investment System (CRIS). Courts, sadly, along with the private prisons they fill, are very much for profit corporations.

The largest institutional money fund is the JP Morgan Prime Money Market Fund, standing at over $100 billion in assets. Some of the other larger conglomerate companies offering institutional money funds are BlackRock, Western Asset, Federated, Bank of America, Dreyfus, AIM and Evergreen (Wachovia). Thus, much of the taxpayers money and fees collected go directly into banks and investment institutions before their heads even hit the pillow at night.

A cursory look into the pension fund system CAFR and statements of assets reveals that government is heavily invested in all of these mutual type of funds as the main institutional investor. Government (i.e. the “public”), as the bankers figured out so long ago, is where the money is at!

Notice that the second largest percent of investments are in what are called GIC’s…

A guaranteed investment contract (GIC) is an contractual agreement guaranteeing the repayment of principal and a fixed or floating interest rate for a contracted period of time on certain investments. GIC’s are traditionally financial instruments offered by life insurance companies and marketed to institutions qualified for favorable tax status under the Internal Revenue Code. 401k plans are an example of these types of “qualified assets”. A GIC is sometimes called a “funding agreement”. When a municipal bond issuance is funded (the money is given to government), it will generally take long periods of time for that government to draw down (spend) that money for the purposes for which that bond was intended, and will instead be spent in parts over many years or decades on an “as needed” basis. Thus, the benefit to depositing the bond proceeds into a guaranteed investment contract allows government to have liquidity in that investment fund, meaning that those bond proceeds are invested but are also available for withdrawal (as a “demand deposit account” similar to a credit card), while at the same time earning a higher rate of return than they would in a money market account, savings account, or U.S. treasury security.

If you don’t understand what all of this means, let me try to explain…

When government creates a taxpayer bond, that bond is issued or funded in full at the time of its creation, just like any other loan. And government is now holding the value of that bond in cash. These are called the “proceeds” of the bond. Since the reason of that bond issuance was for a designated (restricted) purpose by vote or by law – usually for some infrastructure purpose – the proceeds of that bond are invested and immediately placed into the “restricted” category of governmental fund balances.

But now the government has a dilemma; and a purposeful one at that. It has just utilized the “Hegelian Dialectic”; or problem, reaction, solution principle. The bond (loan) was government’s reaction and its solution to a problem that was either natural or purposefully created by these government criminals, such as the building or improvements of a bridge, sewer, or other infrastructure project, or to create new customer-based infrastructure so that government can collect even more fees for the services and privileges it provides to the taxpayers so as to build up its monopolistic control over its “customers”. Whatever the need, the bond will be designated and restricted in its spending for that specific purpose or need.

Don’t forget that the bond was not needed in the first place, but that the investment funds that would otherwise pay for the needed construction or repair are already “restricted” for some other bureaucratic purpose – the true purpose being the promotion of ever more new debt.

But indeed, the funding of that bond has just created another quite desired problem – for government now holds these bond proceeds (taxpayer money), which cannot be spent on the taxpayers or infrastructure until the specific required need for that spending arises by law and as delegated in the bond issuance contract itself, which may be months, years, or even several decades away. And now government must come up with a reaction and a solution to this wonderful new problem that it has created for itself – the issuing of such a large loan before the proceeds of that loan (bond) are actually needed or can by law be spent.

Enter the guaranteed investment contract (GIC): the solution to the problem of this new restricted taxpayer money that may not be spent for years in the future! Since government will not actually need that money for the purposes of the bond anytime soon, and indeed may not even have a plan or an exact amortized schedule of when that money will be spent in the future for its “restricted” taxpayer or non-governmental purpose, the government reacts by investing that loaned money into a GIC or other financial instrument, creating the solution of receiving an investment return on otherwise idle taxpayer bond proceeds. This fulfills the original problem – how to create wealth on bond proceeds without being required to spend that money on the taxpayers.

So to recap: government created a taxpayer bond, which is really a loan to be paid back at interest, and then invested the proceeds of that bond (loan) into a higher yield guaranteed investment contract so as to earn more gains than it will pay in interest to the original loan.

But here is the kicker…

While government has taken the proceeds of that loan and reinvested that money into another investment fund, with a guaranteed rate of return on the investment, the government is at the same time charging the payments of the interest and principle of that original bond issuance (loan) on to the taxpayers. So the taxpayers will be paying off that loan for months, years, or decades, benefiting some other government, fund, or private corporation for which that bond was issued from, while government then invests that money and earns even more interest on that loaned money! And those payments will be paying back the bond even though the bond proceeds aren’t even being used!!!

This is just one of many tricks for this legal organized criminal syndicate to suck the taxpayers dry.

Also important to note here is that since the proceeds of that bond are “restricted”, those funds cannot be used for any other purposes by law. This is why government loves to put these types of restrictions on taxpayer monies, and indeed goes out of its way to not leave any money in the unrestricted fund balances! After all, governments are only following the law… and the law that they created says that restricted funds can’t be spent on other taxpayer needs (unless they want them to), and instead should or must be invested! What a brilliant scheme indeed.

And thus, the “golden rule” is very true… He who holds the gold makes the rules … except in America, where government makes its own rules to govern itself, in order to hold onto the peoples wealth and property and turn it into gold at the peoples expense.

Think about it this way, folks: If you had the chance to borrow $1 million dollars at 2% interest for 30 years, and at the same time had the chance to invest that same $1 million dollars and receive a guaranteed investment contract with a return on that $1 million dollar investment of 5%, while being able to withdraw that money at no charge to make payments on your original loan while keeping the extra interest as a profit, would you do it? That is, if you had no ethics, standards, morals, or values?

Well, this scheme is only possible because government passed a law that said it was legal! That interest or capital gain does not by law have to be used for the purposes of the restricted funds of that original bond. Think about what is possible with this kind of unlimited power of law and money creation and tax money exaction and extortion through bond creation, with no punishments and no worries that the people might actually stand up and fight back or say no… let alone have a clue as to what is actually happening behind their backs in the first place!

Just a short note about these insurance company issued guaranteed investment contracts… A CIG must be available for redemption when called on by the investor, meaning that the investments must be liquid and available for withdrawal at any time, which again is why government loves GIC’s so much. When in the 1990’s people lost confidence in the CIG’s ability to be called in, they found corporations – like Executive Life Insurance Company – could not fund these guaranteed contracts when they were called in, causing this company to fail and be seized by government, which froze most of these investment contracts so investors could not get their money back. This, in turn, lead to the enabling of municipal-bond insurance companies to insure guaranteed investment contracts, which became known as “wrapped” CIG’s. So what happened? Remember when American Insurance Group or (AIG), the nations largest insurance company, had to be “bailed out” by taxpayer money? Well, about $9 or $10 billion of that $100 billion in bailout money was actually used to pay out the calls on these guaranteed investment contracts – the GIC’s that were offered by AIG in the first place, and to which it also could not meet the call-ins.

So technically, since government was and is a major investor in CIG’s, the bail-out of AIG and other banks and mortgage companies was really the utilization of taxpayer money to bail out AIG and these other investment houses so that government contracts could be insured and therefore “guaranteed” to be called in… so that government accounts and investments were safe. That, my friends, will always be the purpose of any “bailout” – the bailing out of government’s addiction to junk investments and of robbing the people blind.

What, did you think those bailouts were to help the taxpayer and the consumer and their retirement funds? LOL!

In essence, most all of government investments are not for the people in any way. In fact, when it comes to financial obligations, pension payments, and taxpayer services we must remember in general that people are nothing but a liability, and not an asset. They are statistics in a numbers game of human capital management. This can only be understood without emotion or ethics, morals, values, or empathy – which are exactly the traits that a corporation must never show in order to turn a profit. Since a corporation is an artificial person, that is not hard to imagine. Remember, it’s just business… And this, in a nutshell, is the problem with having a limited liability corporation as your government, where men act under color of law as officers of that corporation instead of as responsible men who are responsible for and pay for their own actions while serving in the public trust.

At the end of Note 2, the CAFR explains:

Restricted Cash and Investments – Certain proceeds of proprietary fund and government-wide certificates of participation (COP), revenue bonds, bonds payable, and other long-term liabilities are classified as restricted cash and investments on the statement of net assets as their use is limited by applicable indentures or covenants. These covenants provide that these funds, in the absence of specific statutory provisions governing the issuance of bonds, certificates, or leases, may be invested in accordance with the ordinances, resolutions or indentures specifying the types of investments its trustees or fiscal agents may require. These ordinances, resolutions, and indentures are generally more restrictive than the City’s general investment policy. In no instance have additional types of investments, not permitted by the City’s general investment policy, been authorized. The major part of this restriction is for the construction or acquisition of facilities, but also includes reserves for payment of debt service as required by the bond indentures.

It is important here for you to understand what a certificate of participation (COP) is and why it is considered as a restricted asset. A certificate of participation (COP) or sometimes referred to as a “participation certificate (PC)” is yet another type of financial instrument used primarily by municipal and other government entities.

But to be honest, in my research on this particular subject, I could not seem to get a straight answer as to what exactly a certificate of participation actually was. And as it turns out, I wasn’t the only one.

In 2002, a grand jury was impaneled in Placer County, California, in order to ascertain the function and purpose, and for that matter a basic description of just what exactly a COP really is. And here is what that grand jury decided:

“2001-2002 Placer County Grand Jury Final Reports:

CERTIFICATES OF PARTICIPATION

METHOD OF FINANCING PUBLIC PROJECTS WITHOUT VOTER APPROVAL WITHIN PLACER COUNTY

Background

The 2000-2001 Grand Jury received a complaint late in the year that dealt with  the use of Certificates of Participation (COPs) by a city within the County.  This complaint was passed on to the 2001-2002 Grand Jury for follow up investigation.

During the course of its initial investigation, the Grand Jury became aware of the widespread use of this method of financing major projects in the County, all without voter approval.

While the use of COPs is legal and in some instances necessary, many projects were undertaken without full and easily understandable disclosure to the general public of the reasons for the projects and the costs that would be involved.

Because of the number of COPs that are outstanding within the County and the large dollar amount that is associated with them, the Grand Jury, with its oversight responsibility, chose to include all current countywide COPs in its investigation and inform the general public of its findings.

A Certificate of Participation is a method of funding used by governing agencies for construction or improvement of public facilities.  By use of a lease type repayment structure, the monies needed to fund these building projects, even though some may be payable over periods in excess of 20 years, do not, by California State law, constitute a public debt; therefore they do not require voter approvalFederal tax laws, however, treat these lease type obligations as debt, which allows for tax-exempt interest to the underwriting agency. Government agencies with this statutory authorization of funding include the County Board of Supervisors, City Councils, Special District Boards of Directors, and County, City, and District School Boards.

Other key elements of the COP are:

• The approving public agency enters into a tax-exempt lease with a lessorLessor acquires site through purchase from a third party or by leasing it from the public agency.

•Facilities are implemented more quickly than those approved by a General Obligation Bond.

COPs obligate the General Fund.

• COPs can encumber the facility and the land.

• Usually requires rental interruption insurance (in addition to regular insurance).

Governing Boards may, by resolution, also create Enterprise Funds, using COPs.  These funds are established for activities normally found in the private sector, i.e., parking garages, golf courses, public utilities, airports, sports and entertainment venues. They are meant to be self-supporting through user charges and should be operated in accordance with generally accepted accounting procedures and reporting requirements of similar private sector business. The nature and purpose of such a fund is to provide goods or services to the general public on a continuing basis. By the use of COPs, these Enterprise Funds do not require voter approval.

COPs were not largely used until the passage of California Proposition 13 in 1978.  This Proposition required a two-thirds majority vote of those living within the affected area for issuance of a General Obligation Bond.

General Obligation Bonds may be sold by a public entity that has the authority to impose ad valorem taxes. This is a tax based on assessed value of real property and must be approved by a two-thirds majority vote of the people.  Primary use of this tax is to acquire and improve public land and property. As enacted in 2001, General Obligation Bond elections for schools are an exception to the two- thirds majority in that they require only a 55% majority.  If, however, the bond is tied into a previous bond under the two-thirds majority rule, the 55% figure will not apply.

Since 1978 most local government entities have had a difficult time gaining approval of General Obligation BondsThey also have had difficulty in accumulating cash reserves as funding levels have been reduced as a result of funds being transferred to the State, with no guarantee of how much will be returnedThis has led to a sharp increase of lease purchase financing, primarily within the Penal System and School Districts.

The use of COPs has been tested in the court system.  The most notable case was in 1942, City of Los Angeles v. Offner.  The California Supreme Court held that a lease is not a debt, and therefore does not need voter approval. It was of interest to the Grand Jury that all County Agencies and District Budgets that were reviewed listed these COP’s/Enterprise Funds in their financial statements under Long Term Debt.

Finding 1

The following table represents the principal balance due on COP/Enterprise Funds as of June 30, 2001.  Interest that will be paid over the term of the lease has not been computed as the figure can change through re-financing the COPs or converting them into Revenue Bonds.

Schools:

District                                       Remaining Principal

Auburn Union                                                  $27,443,580

Eureka                                                                          502,000

Placer County Office of Education                3,200,000

Loomis Union                                                       7,000,000

Placer Union High                                                3,534,208

Placer Hills Union                                                   680,000

Roseville Joint Union High                             2,320,000

Roseville City Schools                                    22,500,000

Tahoe-Truckee Union                                      15,631,000

Western Placer Unified                                    8,035,000

Sierra Community College                              5,200,000

                                                           Total     $92,845,788

.

Cities:                                            Remaining Principal

Auburn                                                                 $2,325,000

Rocklin                                                                     3,019,610

Roseville                                                              87,140,000

                                                           Total     $92,484,610

.

County:

Placer County:                        Total     $29,961,000

.

Special Districts:

North Tahoe Public Utility District          $7,310,000

Placer County Water Agency                      54,150,000

                                                         Total      $61,460,000

COP Totals:

School Districts                                              $92,845,788

Cities                                                                      92,484,610

Placer County                                                    29,961,000

Special Districts                                                61,460,000

Total outstanding obligation in
Placer
County as of June 30,2001    $276,751,398

.

As a point of reference, if $276,751,400 at 5.5% matured in 15 years, the total cost would be $407,032,182.

If the same $276,751,400 at 5.5% matured in 25 years, the total cost would be $509,848,719.

*This is assuming all COPs matured at the same time at the same rate of interest.

Finding 2:

All COPs issued were legally initiated and implemented.

Finding 3:

There is no central repository that has on file COP information for all agencies within the County.

Finding 4:

There appears to be little understanding or awareness of this type of financing on the part of the public

APPENDIX

There does not appear to be any one definition for a COP. For example, the following were found during (the grand jury’s) investigation:

City of Auburn Financial Report

“Bonds issued by the City to construct capital facilities and buildings.  Non-specific revenue sources are used to pay debt service on these bonds.”
 
California Debt and Investment Commission

“A certificate (which looks very much like a bond) representing an undivided interest in the payments made by a public agency pursuant to a financing lease (or an installment purchase agreement).  Also known as COP’s.”

“A portion of each lease payment (and, therefore, a portion of each interest in a lease payment) is designated as being principal, and the remainder as interest. Even though COP’s are not treated as indebtedness of the issuer under state law (particularly the California Constitution), the federal tax law treats the lease obligation as if it were a debt, and, as a result, the interest component of each lease payment may be treated as tax-exempt interest.”

League of California Cities, The California Municipal Law Handbook

“Certificates of Participation (COPs) use a tax-exempt lease structure to finance the construction of public facilities or improvements.  If structured properly, COPs do not constitute “debt” for purposes of the state constitution.  Because COPs often rely upon an annual appropriation from the cities general fund, the interest rate and the cost of financing often depend upon whether the improvements to be financed and the property which is the basis for the underlying lease are essential to the functioning of the city. However, COPs can be used to finance virtually any public improvement or facilityCOPs do not require an election, even if the payments are secured by enterprise revenues.”

Monterey County Grand Jury

“Certificates of Participation are debt instruments for financing capital projects by the local government.  They were developed in response to the difficulties encountered by local governmental bodies in obtaining voter approval.  COPs do not require voter approval.”

“COPs differ from a bond issue, in that a non-profit Corporation is given the legal right to the revenue developed by the new facility up to the level required to pay the interest and the amortized principal sum of the borrowingThis legal right to a share of the revenue is usually expressed in the form of a lease with the Corporation, the lessor, and the government body, the lesseeThe Corporation, in turn, sells shares in this revenue stream to individual or commercial investors. The government body sponsoring the new facility leases it back from the Corporation; the government body also guarantees the return of the principal and interest.  In effect, the facility is paid for by its own revenue, but to make the deal possible, the government body must guarantee the required revenue to pay off the loanThus, if the costs of the project exceed original estimates or the planned revenue streams do not meet expectations, the taxpayers must ultimately make up the shortfall.

Glossary of Bond Terms

“COP’s are a structure where investors buy certificates that entitle them to receive a participation, or share, in the lease payment from a particular project. The lease payments are passed through the lessor to the certificate holders with the tax advantages intactThe lessor typically assigns the lease and lease payments to a trustee, which then distributes the lease payments to the certificate holders.”

City of Lincoln Annual Budget 2001-2002

“A type of fund established for the total cost of those governmental facilities and services which are operated in a manner similar to private enterpriseThese programs are entirely self-supporting.”

City of Roseville Annual Financial Report for fiscal year ended June 30, 2001

“Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the City is that the costs and expenses, including depreciation, of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the City has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.”

San Bernardino County

Governing boards may, by resolution, create Enterprise Funds, using COP’s. These funds account for governmental activities that are similar to those found in the private sector. Generally accepted accounting procedures, principles and reporting requirements used by similar private sector businesses apply.”

The nature and purpose of such a fund is to provide goods or services to the general public on a continuing basis:

That are financed and operated in a manner similar to private enterprise

Where the intent of the governing body is that all costs are to be financed or recovered through user charges.”

–End Grand Jury Report–

–=–

Perhaps the obvious doesn’t need to be said here. But I must say…

This grand jury felt it very important to disclose within the public record the way in which these financial instruments work, and how they are totally under the radar of the public. I personally want to thank them for this effort, and praise whoever led this charge within that jury. But still I don’t know exactly what the true definition is!

I suppose the most important aspect here is that government is acting on its own, with callous disregard for the will of the people it supposedly represents, and placing the cost of these actions upon the public anyway. For as stated above, the true nature of these agreements are that ultimately the General Fund can be tapped to pay back this money if otherwise defaulted on. And that means that even though the people don’t vote for it, they are financially responsible for paying it back anyway. For like an unlawful fee that can ultimately be attached to property tax, these enterprise ventures can likewise be attached to the general fund.

Corruption at its finest…

What you have just comprehended is the implementation of what we covered earlier, which is the concept of the public-private-partnership, or (PPP). As we read, the public government municipal corporation enters into a contract with a private “non-profit” corporation in a tax-except interest bearing loan, which is not approved by the voting public as a revenue bond, and which is legally called a “lease agreement” instead of a revenue bond. Semantics are very important. The front corporation acting as a non-profit cannot keep the money earned as a profit, and therefore sells shares to other private for-profit foreign and domestic investors and corporations, acting as a go-between dummy corporation in order to transfer public wealth into private hands.

This is what is referred to as the privatization movement – replacing the function of government as a public entity for the benefit of the people into a for-profit private enterprise that still appears to be non-profit to the people, but for which is really a transfer of public wealth into private hands through public-private-partnerships. And to be clear, this is very much a way to extract taxpayer money from citizens as customers without doing so through lawful means within government. In other words, the predetermined dispostion of a business-type enterprise  that will charge “fees” for goods and services in what is otherwise a private business (enterprise) actually bypasses the need for voter approval in lieu of a private contract (lease agreement) and bypasses the public law that binds governments and corporations from forcing taxpayers to pay for goods and services. This elaborate scheme involving public-private-partnerships is the way that government bypasses the law. Of course, since government makes the laws (through private non-governmental associations) it also creates loopholes and exemptions which ultimately make its actions barely “legal”. This is what the people must change.

One must begin to ask one’s self… at what point does the definition of “government” cross over and become something else? And at what point do I withdraw my support (tax) to that no-longer quite public entity?

Remember, these are “goods” and “services” offered at the barrel of a gun as a virtual government regulated private monopoly or trust, where the taxpayers or “citizens” have no other choice as to where they purchase those services or products – and these services are being handed over to private corporations which are then protected by “law enforcement”; to protect and serve private partnerships. Government can’t force you to buy goods or services, and so instead it creates a monopolistic environment so that you don’t have a choice but to purchase your goods and services from government or from one of its private partners at for-profit rates… and thos profits are sunk back into the investment fund scheme as “restricted” funds only to be used to build up more and more monopolistic infrastructure and invest in corporations by loaning it to them through corporate bonds at extremely low interest, which is used to build more private infrastructure that ultimately force small businesses to close their doors.

 And all that the people see is a shiny object dangled in front of them like a carrot on a stick, and out comes their wallets to pay for the use or consumption of that carrot – that good or service – without ever even realizing they are helping to create and living in a fascist state. And there are so many other carrots dangling everywhere you look.

Want to watch sports? Well, you the people paid for the arena and your homes and infrstructure may have been collateral for its construction, but you the people don’t own it. And your ticket costs don’t go to government or to help the people, they go to make the Arena self-supportive while the profits, interest payments, and dividends go into private hands. Remember, you are the customers of government, not the people, when it comes to its enterprise operations.

Did you know that the NFL, NBA, NBL, and all other sports leagues are non-profit, tax-exempt organizations?

Does this help you to understand why they have so much power, and perhaps beg your question as to what happens to all of the profits they make through merchandising and media?

Of course, as the grand jury in Placer County has here stated in court and on the record, these non-voter approved loans called land-secured “lease agreements” are taken at interest, and are paid over many years to assure a massive and usurious 30-50% interest profit to these so-called non-profit corporations.

Is it just me, or is the concept of a non-profit corporation charging interest on a loan an oxy-moron? Isn’t the purpose of interest to make a profit on money? Let’s face it folks, we have just uncovered the very epitome of legal organized crime – and its called the non-profit corporation.

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(Page 82 – 85) Note 3: INTERFUND RECEIVABLES / PAYABLES
–=–

Here we uncover the way in which City of Stockton continuously transfers money from fund to fund.

Interfund receivables and payables are as follows at June 30, 2010:

Due to/from other funds (dollar amounts in thousands {in report} and added here):

Receivable Funds Total due to the General Fund, Capital Improvement Funds, and Internal Service Funds:

Redevelopment Agency………$11,502,000

Other Governmental……………$7,659,000

Other Enterprise……………………$382,000

Internal Service Fund………….$3,333,000

Total……………………………..$22,876,000

“Due to” and “due from” balances have primarily been recorded when individual funds overdraw their share of pooled cash or when there are short-term loans between funds.

The graph on (page 83) shows “Loans from/to other funds (dollar amounts in thousands)”, and represents over $72,000,000 in City funds that have been loaned from other City funds – called “interfund transfers”. These represent the amount of fund balance that is due to these funds from these enterprises and other governmental and non-governmental funds. This represents the loans that government is constantly loaning to itself, and then using the future liability part of that loan (not the future asset that will be paid back) to show a deficit in these current financial statements. More creative accounting… because remember, its all one big account that has been partitioned into many investment funds and then restricted so as to create the perception and illusion of debt and deficit.

To give the viewer a clearer picture of what is actually happening here, let’s take a look outside of the CAFR and go read a letter written by Harvey M. Rose corporation, a public sector management consulting firm located in San Fransisco, Ca, on May 20, 2010, to the City Manager, the Preseident of the Stockton Police Officers Association, and to the President of the Stockton Firefighters Local 456 Union.

Now the astute person will right away notice that this letter is not addressed to any publicly elected politician – in other words, it is not being written to anyone that was actually elected by the people. This letter is addressed instead to the leaders of 100% private associations and the appointed Manager of the municipal corporation. I can’t stress enough the importance of this fact. For this is not a letter to the “representatives” of the people…

The draft letter states:

We have completed our review of the City of Stockton’s Comprehensive Annual Financial Report (CAFR) for the years ending June 30, 2007, 2008 and 2009; the adopted budgets for FY 2008-09 and FY 2009-10; and mid-year budget projections prepared by the Stockton City Manager. Based on our review of these documents, as of June 30, 2009 the financial condition of the City of Stockton was fair to weak. However, the City’s financial health is at a critical juncture during this current economic downturn. While the City should be commended for taking quick and immediate action to address shortfalls in projected discretionary revenues over the last two years, significant historical financial activities have been subsidizing operations in special revenue, capital project, redevelopment, and enterprise funds and are distorting the financial status of the General Fund and the City in general. These financial activities include significant interfund loans and transfers, debt issuance, reliance upon future revenues as indicated by deficit fund balances, and receipt of deferred revenues. The City should evaluate each of these activities, and associated loans and transfers, with respect to financial viability and policies going forward. The decisions made during the next one to two year cycle will have significant long-term impacts on the financial health of the City.

Page 2

As of June 30, 2009, the General Fund had a fund balance amounting to approximately $22.8 million, or 13.1 percent of the City’s $174.1 million annual General Fund operating expense. Of the total $22.8 million fund balance, approximately $8.6 million was unreserved fund balance, and thus was available for any purpose. Approximately $6.9 million of the $8.6 million unreserved fund balance was immediately available in cash. The $14.2 million reserved fund balance included $11.2 million in loans to other City funds, including $9.9 million to the Stormwater Utility Enterprise Fund for subsidizing historical operations.

The City has also established over 20 special revenue funds to account for restricted revenues that are used for a variety of purposes. While a majority of these funds and resources cannot be used for General Fund purposes due to legal and contractual restrictions, some special revenue funds may have been created by policy of the City for specific purposes and, in some cases, would otherwise be General Fund resources except for specific actions by the City Council and administration. Such actions may have been taken many years ago by an entirely different Council and management. The current Council may have the authority to modify the ordinances that determine the amount of monies that go into these funds and the type of expenditures that can be made from these funds. Our review of these funds indicates that potentially $2.2 million may be available resources and further analysis may yield additional funds.

Additionally, the City held fund balances related to general government operations in nine internal service funds. As described in more detail below, surplus cash balances in these funds would yield as much as approximately $30.5 million in additional resources if returned to initial funding departments and funds, most of which would be the General Fund.

The City operates three utilities and four other proprietary operations, which are accounted for in enterprise funds. Several of these funds have been historically, and continue to be, subsidized by other operating funds, including the General Fund. The enterprise funds with negative unrestricted net assets and/or interfund loans include the Stormwater Utility, Central Parking District, Solid Waste, Downtown Marina, and Golf Courses activities. The City should review the operating health of each enterprise to determine whether:

  • The enterprise could be economically viable by identifying on-going and available revenue sources or reclassifying current loans from contributing funds as one-time transfers of resources; or
  • If not economically viable, the enterprise should be merged into other City operations and funds or whether the activity should be altogether exited.

Finally, the City operates two capital projects funds, the Capital Improvement Fund and the Redevelopment Agency Fund, that are used to account for resources for the construction of facilities and to make certain capital acquisitions. As with the enterprise funds, these activities appear to be significantly subsidized by other City funds including the General Fund. The City should review these activities in light of financial and policy considerations and also conduct a… (Page 3) detailed reconciliation of historical funding sources and uses by project to determine if residual General Fund contributions remain in the balances.

As shown in Table 1, the City’s General Fund balance increased by $1.9 million, or 8.8 percent, from the $20.9 million level as of June 30, 2007 to approximately $22.8 million as of June 30, 2009. However, the unrestricted General Fund balance has declined substantially by 45.4 percent, or $7.2 million, primarily due to classifying historical General Fund subsidies of the City’s Stormwater Utility as a loan from the General Fund resulting from a settlement agreement with the Howard Jarvis Taxpayers Association in 2009. Over the three year period reviewed, annual General Fund expenditures decreased by $2.4 million, or 1.3 percent, to $174.1 million from $176.5 million reported in FY 2006-07.

As can been seen in the table, the City’s General Fund financial status, as indicated by fund balance level, has remained relatively stable over the past three years. This is significant in light of the economic downturn as well as two significant settlement agreements approved by the Stockton City Council in 2009 and reflected in the FY 2008-09 financial statements. With regard to the economic downturn, the City has taken quick and immediate action, as can be seen from the overall reduction in expenditures of $7.9 million, or 4.3 percent from FY 2007-08 to FY 2008-09. Additionally, the City was able to maintain its revenue level despite significant decreases in property and other taxes by increasing miscellaneous revenue collections, which are typically one-time and non-recurring in nature1. The net impact of the two settlement agreements… (Page 4) resulted in a one-time reduction of General Fund balance of $6.3 million. However, as noted above, because the City maintained revenues, while decreasing expenditures, the City was able to sustain its General Fund balance at $22.8 million at year-end.

…in FY 2007-08, a 3.0 percent decrease in revenues amounting to $5.7 million during the year was partially offset by a 1.2 percent decrease in operating expenditures of $2.1 million, resulting in a net operating deficit for the year of $3.6 million. While these results were not included in the FY 2008-09 original budget, actions during the year resulted in a net operating surplus of $8.6 million for FY 2008-09, which assisted in maintaining a stable fund balance despite the extraordinary impacts of the settlement agreementson the General Fund, as noted above.

While the FY 2009-10 Adopted Budget assumes a beginning and ending unreserved fund balance of $6,843,929, as shown in Table 1, the actual unreserved General Fund balance shown in the audited financial statements was $8,607,000 as of June 30, 2009. Therefore, the FY 2009-10 Adopted Budget understates available fund balance by approximately $1,763,000, which can be considered surplus. However, the City currently projects a year-end operating deficit in the General Fund of $987,000, which would reduce available fund balance…

Fund Balance Designated for Budget Uncertainties and Catastrophic Events

The City Council has adopted policies to accumulate and then maintain 5 percent of annual appropriations for catastrophic events and 5 percent for budget uncertainties in fund balance, or a combined total of 10 percent of annual appropriations. The Governmental Finance Officers’ Association (GFOA) recommends such reserves be set at between 5 percent and 15 percent of annual operating expenditures. As of June 30, 2009, the City has designated $1,620,000 to be held for catastrophic events and $1,620,000 to be held for budget uncertainties, which are approximately 0.9 percent of annual appropriations each, or a total of $3,240,000 and 1.8 percent of annual operating expenses. Therefore, no surplus funds are available from this source.

Activities Impacting the Financial Status of the General Fund

During our review, we have noted significant financial activities that have direct and indirect impact of the health of the General Fund. These activities include significant interfund loans and transfers, reliance upon future revenues as indicated by deficit fund balances, and receipt of deferred revenues. As of June 30, 2009, the General Fund was owed approximately $4,444,000 in short-term loans typically recorded when other funds overdraw cash balances. Longer term loans payable to the General Fund totaled approximately $11,163,000, whereas the General Fund owed the Water and Wastewater utility funds approximately $8,148,000. In all, the City had a combined interfund loan total of $70,350,000.

Further, for FY 2008-09, there was a combined $46,434,000 in operating transfers throughout the City “to finance expenditures, subsidize operating losses, and service debt.” Deficit unreserved fund balances existed in the Capital Improvement, Redevelopment Agency, Stormwater Utility, Central Parking District, Gas Tax, Measure K Sales Tax, and Development Stockton CAFR, as of June 30, 2009, Notes to the Financial Statements, Note 4, Page 68… (Page 6) Services, among others. Finally, the City was in receipt of $14,918,000 deferred revenue, of which $7,310,000 was in the General Fund.

The City should evaluate each of these activities, and associated loans and transfers, with respect to financial viability and policies going forward in an effort to simplify the City’s dependencies and make the policy implications more transparent.

Special Revenue Funds

The City has established over 20 special revenue funds to account for restricted revenues that are used for a variety of purposes. The City’s CAFR identifies only one special revenue fund as a major fund, Public Facilities Impact Fees, which accounts for the collection of fees as a condition of new development and expenditures of such fees on public facilities.

Additionally, the City has over 19 smaller special revenue funds that have a total combined fund balance of approximately $130.1 million. A majority of these funds and resources cannot be used for General Fund purposes due to legal and contractual restrictions. However, substantial undesignated fund balances supported by cash on hand for select special revenue funds as of June 30, 2009 are as follows:

Special Revenue Fund       –     Undesignated Fund Balance

Solid Waste and Recycling …………..$2,080,000
City-County Library …………………….$3,989,000
Special Assessments ……………………$8,292,000
Redevelopment Agency Loan ……….$8,583,000
Other Special Revenue …………………$1,068,000

Total …………………………………………$24,012,000

Financial, legal, administrative and other services are typically provided by the General Fund to support special revenue fund activities, and reimbursement for the cost of these support services may be allowable. Because of the substantial undesignated fund balances, the City should analyze the activities performed for each special revenue fund by General Fund departments and agencies to determine whether additional costs can be reimbursed. Further, because special revenue fund activities may parallel activities performed in the General Fund, the City should conduct a review to see if there is any duplication and whether activities occurring in the General Fund would meet the criteria specified by any special revenue fund restrictions.

(Page 7)

Further, some special revenue funds may have been created by policy of the City for specific purposes and, in some cases, would otherwise be General Fund resources except for specific actions by the City Council and administration. The City maintains several special revenue funds, such as for Emergency Communications, Recreation Services, and the City Administration Building that in many jurisdictions are frequently funded by and operated out of the General Fund. These three funds have a total undesignated fund balance as of June 30, 2009 of approximately $2,233,000 that may be considered available fund balance. The City should conduct a review to determine which of these special revenue funds are subject to City Council authority, allowing modification of the ordinances that determine the amount of monies that go into these funds and the type of expenditures that can be made from these funds.

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The CAFR goes on to explain each loan due to each fund from the other fund. We will only cover a few of the more ridiculous and criminal (but legal) of these intrafund loans and their purposes here for the City of Stockton:

“Loans to” and “loans from” balances represent loan activity between various funds.

The $728,000 is a loan from the General Fund to the Redevelopment Agency for various project areas.

This is just a basic loan to be paid back by the redevelopment agency to the General Fund. But remember, every time a “loan” is made to another fund, that money, which would otherwise be unrestricted and allowed by law to be used for any general taxpayer purpose whatsoever, instead becomes restricted to just the purpose of that particular partition (fund) by law. While seemingly innocent in its nature, this loan takes away from the taxpayer base and thus the investment funds can only be utilized in the customer base – meaning that this money will be used now only to develop or redevelop future monopolistic infrastructure that is for “goods and services” for taxpayers to purchase as “customers” of government, and even more likely as customers of a public-private-partnership.

The $483,000 loan from the General Fund to the Central Parking District is for settlement costs of property acquired through eminent domain

The $530,000 loan from the General Liability Insurance Fund to the Central Parking District is for settlement costs of property acquired through eminent domain.

Perhaps one of the most bone-chilling facts about government and the way that it steals the property of its citizens (the people) is the realization of what this sentence actually means. When the rule of eminent domain is utilized to take property for and on behalf of the public welfare and use, under the color of law, as happens all across this supposedly free country, the government claims ownership of that property by using its supposedly public nature – in other words, the government steals property and land in the name of the people and on the authority of the people simply because the people never stand up for their neighbors and say no to government.

Government then turns that land or property into a for-profit infrastructure asset for the “customers” of government – and the profits go into a future liability investment fund so that these profits are turned into non-profits. I have often wondered that, if the authority and jurisdiction of government is based on the consent of the governed or on the presumed consent of all the people, that if just one citizen verbally and in writing stated that he or she did not consent to the government using his or her as “one of the group of people” as the reason for that authority to use eminent domain on behalf of “the (collective) people”, would government still be legal in their act of stealing land and property on behalf of “all of the people” to build a parking garge? Can the people be considered the people (a body politic) if just one of those people in that body says no?

So what is this sentence stating? It states that: from out of the taxpayer base of taxation and revenue which is placed into the general fund, this enterprise operation acting on behalf of public-private-partnerships called the Central Parking District has taken a loan out from the taxpayers… so that it can legally steal the property of the taxpayers! Do you understand? The government uses your own taxpayer money when it steals your home or land under eminent domain!!! This, my fellow citizens, is what the government calls “just compensation”. And perhaps that is the most apt name for it… After all, we the people are getting JUST what we deserve for allowing ourselves and our friends, family, and neighbors to be subjects through contract and presumed consent to these government corporations. It seems only “just” that our “compensation” for our own cowardice and inaction on behalf of our fellow man be that we pay for our own enslavement and theft of our own property. Remember, this money is for legal theft, and the property or land that is being stolen will likely be used to offer more and more “goods and services” to the American “customers”.

The $1 ,000,000 loan from Public Facilities Impact Fees to Central Parking District is for construction costs of new parking structures.

Ever wondered why parking spaces seem to be harder to find in the City, or why ticket and parking meter fees have shot up sky-high?

These parking structures are one of the main infrastructure assets that are entered into as public-private partnerships with private corporations (especially banks) for-profit. Therefore, the fees collected in this fund are being used to construct parking garages that will, once again, charge you even more fees as customers of government, and will go into the pockets of these private corporations under “lease agreements” not approved by the voting public.

The $5,036,000 is a loan from the Water Utility to the General Fund for subsidizing its operations established as a result of the Howard Jarvis v. City of Stockton lawsuit settlement of March 2009

The $3,381,000 and $8,789,000 is a loan from the Wastewater Utility to the General Fund and Capital Improvement fund, respectively, for subsidizing its operations established as a result of the Howard Jarvis v. City of Stockton lawsuit settlement of March 2009 (refer to Note 14 – Special Items of the financial statements for more detailed information)…

The $2,810,000 is a loan from the Water Utility to Capital Improvement for subsidizing its operations established as a result of the Howard Jarvis v. City of Stockton lawsuit settlement of March 2009. (Refer to Note 14 Special Items of the financial statements for more detailed information.)…

The $798,000 from Capital Improvement to Stormwater Utility represents loans to subsidize operations established as a result of the Howard Jarvis v. City of Stockton lawsuit settlement of March 2009 (refer to Note 14 – Special Items of the financial statements for more detailed inf