California Fools Californians Into Higher Taxes Again

With the help of the mainstream media and its rags, the California Public Employees Retirement System (CalPERS) is yet again using its over $233 in reported investment fund wealth to somehow claim it is in a deficit, despite having an investment return this fiscal year.

(Note here that the actual gross fund balances are generally many billions higher, and were reported as $245,848,527,000 in 2011, and $204,727,543,000 in the 2010 CAFR’s.)

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

“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 played 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 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!


Simply because CalPERS did not reach its “projected” goal. It wished upon a star, and failed to reach that star. It did not lose value or money, it only failed to miss its desired gains. It still did fine, and has no problems whatsoever meeting its “obligations” to pensioners. In fact, if CalPERS liquidated all of its investments today at today’s market value it could easily pay future pension benefits for the next 15-20 years.

So what’s the problem?

That’s just it, there is no real or tangible problem. You see, governments across the country are crying broke or bankruptcy based on this type of situation – hiding assets with future liabilities, without reporting the future assets that will pay for those liabilities. With billions in assets, all of this hoopla is based on nothing more than throwing a temper tantrum because the CalPERS fund didn’t reach what it wanted to reach this year.

It’s true. Nothing bad has actually happened here, as we will see in a moment. But the government creates any excuse it can in order to collect higher taxes,  or to funnel as much taxpayer money into the pension system. Case in point: here the article states that “California State and local governments (will be forced to) contribute more money“. In other words, the government wishes to keep its investment wealth untouched instead of liquidating it to pay for pension obligations to its employees. And so it will raise taxes instead, as the article states here: “taxpayers are on the hook for the difference if the pension funds fail to meet their performance targets.” Remember, taxes fund government. So government contributions means taxpayer contributions, despite the fact that taxpayers receive absolutely no benefits from the pension system, only employees of the government receive pension benefits.

Now imagine if Target, Bank of America, General Electric, or any other corporation out there forced all people in America or in an individual State or local government to pay for its private employee’s pension fund costs. How would that make you feel? Well, that is how the pension fund system works, as this article tells you.

Note here as well that the so-called “loss” on the equity value of stock and investments does not represent a loss of the actual number of stocks or investments. Just because a stock goes down in value for a 1 year period, does not mean that it will stay down. The same amount of stock is still held, and that physical equity has not changed, only this years value.

For instance, the following capital gains for 2010 and 2011 fiscal years were stated by the CalPERS pension fund in its Comprehensive Annual Financial Report:

CalPERS (2011) – $41.1 billion gain in net assets after all benefits paid.

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 –>

CalPERS (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 –>


Also, in 2009 fiscal year, as with all fiscal years, the Comprehensive Annual Financial Report show the following contributions from employees and separately from taxpayers (government).

Employees: $4,154,388,000

Taxpayers: $7,605,532,000

And here is a USA Today article with the headline:

Calpers posts 16.7% gain for fiscal year

SAN FRANCISCO (Reuters) — Calpers, the biggest U.S. pension fund, earned a 16.7% return on its investments in its fiscal year ended June 30, (2004) best returns in six years, the fund said Tuesday.

(Source –>

And in 1998, CalPERS reported a record 19.5% gain in its investment portfolio. Yipee!

So the question you might be asking yourself is… Why don’t the taxpayers get a refund of all of that money they are putting into the pension system when there is a good year, when we have to be “on the hook” to support the fund with more taxpayer money in a bad year?  Not that this was really a bad year, mind you.


Notice here that I am not mentioning 2008 in this list, and instead giving the reader the impression that CalPERS has gained every year in its portfolio. That is what the news does, you see, but not me. In 2008, Calpers lost a butt-load of asset value to the tune of $58.8 billion due to the financial crash of that time. This was big news of course.

The point here is that a portfolio such as this is designed to acquire as many assets as possible, knowing in advance that those assets will go up and down in the short term, but is designed for the long term. A slow year or a loss is expected every once in a while, of course, and events happen and the economy goes bad and the strengthens again. This is an established reality that any long term investor will tell you.

So let’s here what CalPERS itself says about this years portfolio:

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.

The small gain – despite continued volatility in world markets and economies – was helped by improved performance of CalPERS real estate investments. Investments in income-generating properties like office, industrial and retail assets returned approximately 15.9 percent, outperforming the pension fund’s real estate benchmark by more than 3 percent.

CalPERS performance was negatively impacted by significant allocations to U.S. and international public equities.

“The last twelve 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 Joe Dear, CalPERS Chief Investment Officer. “It’s a clear reminder that we must remain focused on performance, risk and internal controls in today’s financial environment.”

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…

Returns for real estate, private equity and some components of the inflation assets reflect market values through March 31, 2012 (not June 30, 2012). Final performance including the last quarter of the fiscal year will be available after asset valuations are completed.

Investment returns are based on compounded daily earnings over the year, including continuing member contributions and benefit payments, and do not precisely correspond to one-year changes in CalPERS overall portfolio market value.

(Source –>


In another listed report, the CalPERS system shows that “CalPERS Outperformed Its 7.5 Percent Target 13 out of the Last 20 Fiscal Years (FY 1992/93 – FY 2011/12).


So what does this all mean?

Remember, this reported bad thing of an over $2 billion gain in net assets for the fiscal year is being reported after all benefits have been paid out to the employees of this pension fund. And so there is no loss at all for the year, and this gain is all profit for the fund.

Also notice that for the last 20 years, this fund has attained an above average return on investments, 7.7% compared to the desired 7.5%. This is the wonderful aspect of the CAFR – it allows you to see previous cycles so as to not be fooled by media sound bites. Here, CalPER’s confirms the data in the financial statements that prove that this fund is wealthy beyond even the stated CalPER’s long term goals.

Simply put, this whole media frenzy was a false flag scare tactic – utilizing incomplete information for the CalPERS fiscal year report as stated by CalPERS to pre-program the people of California to accept unnecessary and unneeded increases in taxation, and all for a pension fund that will benefit the taxpayers in no way whatsoever.

We will not know the true statement of CalPERS financial situation until the Comprehensive Annual Financial Report (CAFR) is released for fiscal year 2011-2012, sometime in the next couple of months.

The problem is, most taxpayers have never heard of the CAFR, and place blind trust in their government and their media when they report such ridiculously contradiction data-sets as we have seen here from the Associated Press. And as government forces taxpayers to contribute taxpayer money into the public pension systems of the Federal, State, County, municipality, and district funds on an involuntary basis every year, the taxpayer base looses over $900 billion into the either of public pension black hole each year. This is to say nothing of what the employees of government are also forced to contribute.

If Walmart or Haliburton corporations required taxpayers to fund their pensions at no benefit to the taxpayers in any way, there would be riots in the street tomorrow.

And if they tried to get away with trying to convince the people (or for that matter the IRS) that their over $2 billion dollar gain in investments was somehow a bad thing or was somehow a loss requiring more taxpayer infusions into the Walmart or Haliburton corporate structure, there would be attorneys, accountants, CEO’s, and Board members hanging from the nearest tree…

What gives America?


–Clint Richardson (
–Saturday, July 21, 2012

CAFR SCHOOL: The Vatican Is Broke?

In a small blurb on a back page of the Salt Lake Tribune was this little gem of a story, referencing a recent Associated Press article. I laughed out loud when I read it, and I think you will too…



Vatican posts $19 million deficit, worst in years
The Associated Press
First Published Jul 09 2012 01:28 pm • Last Updated Jul 10 2012 12:17 am

“Vatican City • The Vatican has registered one of its worst budget deficits in years, plunging back into the red with a (euro) 15 million ($19 million) deficit in 2011 after a brief respite of profit.

The Vatican on Thursday blamed the poor outcome on high personnel and communications costs and adverse market conditions, particularly for its real estate holdings.

Not even a (euro) 50 million gift to the pope from the Vatican bank and increased donations from dioceses and religious orders could offset the expenses and poor investment returns, the Vatican said in its annual financial report…”


Note here that we can all learn from this official statement from the Vatican in a big way. For this is exactly the same scam that all governments are claiming around the country, some even now in bankruptcy proceedings. So let’s list these similarities:

1) The Vatican is a corporation, as is each individual and Federal government entity.

2) The Vatican and government operate both in the non-profit and for-profit realm.

3) Both have an Annual Financial Report, and both have a budget report.

4) Both the Vatican and the Government have real estate holdings, as well as stock investments, foreign currency holdings, and both invest heavily into the world-wide corporate structure and fund its liquidity.

5) Both promote their debt, while hiding their investment asset balances.

6) Both have a central bank, which bails it out in moments of need, and then expects Catholics/taxpayers to pay the bill despite its liquid investment holdings.

7) Both openly lie by omission to the people of Earth, while in a position of trust, referring to a deficit while completely ignoring its investment holdings – as if these fund balances don’t even exist.

8) Both use the “depreciation” of capital assets (land holdings, buildings, etc.) to show on their financial reports a liability against other assets, in order to decrease reportable value of these investment assets.

9) Both create budgets that are falsely imploded with such things as future liabilities so as to justify its raising of taxes and its request for tithing.

10) Both create separate sub-corporations with their own financial statements as for-profit entities, but do not use those profits for the benefit of the people.

11) Both call the people “customers”, not people.

12) Both lay off employees with the excuse of budget shortfalls, still not dipping into their vast trillions in liquid investment capital.


In this truly ironic statement by the Vatican we can see perhaps the best example ever of how a government corporation lies by the act of utter and ridiculous disassociation and nondisclosure of its true wealth. And yes, the Vatican is a corporation, and it is the government of Vatican City – as a “nation state”. It just happens to call itself a church.

Associated Press story continued…


“The Vatican said it ran a (euro) 14.9 million deficit in 2011 after posting a surplus of (euro) 9.85 million in 2010. The 2010 surplus, however, was something of an anomaly. In 2009 the Vatican ran a deficit of (euro) 4.01 million, in 2008 the deficit was (euro) 0.9 million and in 2007 it was nearly (euro) 9.1 million.

The Vatican city state, which mainly manages the Vatican Museums and is a separate and autonomous administration, managed a budget surplus of (euro) 21.8 million. That’s largely due to a spike in revenue from the museums: More than five million people visited the Sistine Chapel and other works of art in the Vatican museums last year, bringing in (euro) 91.3 million in 2011 compared to (euro) 82.4 million a year earlier.

And the Vatican could also cheer that donations from the faithful were also up last year despite the global economic crisis: Donations from Peter’s Pence, which are donations from the faithful to support the pope’s charity works, rose from $67.7 million in 2010 to $69.7 million last year. That money, however, doesn’t figure into the Vatican’s operating budget, though contributions from dioceses, religious orders and the Vatican bank do.

The Vatican bank, known as the Institute for Religious Works, is able to make such a big contribution to the Vatican’s budget each year based on investments.

Draining the Vatican’s finances were the high costs for its main job of spreading the faith via Vatican media: Vatican Radio, the Vatican newspaper L’Osservatore Romano and Vatican television all have significant expenses and little or nothing in the way of revenue. Vatican Radio, however, is expected to save hundreds of thousands of euros a year in energy costs each year after it cut back short and medium-wave transmissions to Europe and the United States from its main transmission point in Rome.

The Rev. Federico Lombardi, who runs the Vatican radio and television departments and is also the Vatican spokesman, stressed that layoffs among the 2,832 Holy See personnel aren’t in the offing, although he acknowledged that savings must come from elsewhere.

During the meeting of cardinals who oversee the Vatican’s finances this week, he said, there was a “request for prudence and savings.”

“I’m not an expert,” he said of the deficit. “Yes, it’s bigger than in past years, it’s true.” But he noted that the amounts on a global scale aren’t alarming. “Certainly they indicate a need to pay attention and see the criteria the Vatican’s assets are administered.”



I’ve written extensively on the trillions in government investments that are covered up in the same way and completely ignored on the budget report while being reported on the Comprehensive Annual Financial Report (CAFR).

The Vatican is no different. In fact, it is the extreme example of the government (nation state) hoarding of wealth that would benefit the people of the world.

Think about it for a moment…

Just one of the thousands upon thousands of artifacts, paintings, sculptures, precious metal coins and treasures, and every other trinket and parchment of knowledge that the Vatican holds within its bowels – just the value of one of those literally priceless artifacts could feed the entire world, let alone cover a 16 million euro deficit in the selectively presented budget report of the Vatican politicians.

And so, I’ve come up with a few propaganda slogans that I think might help the Pope, the Black Pope, and his financial officers continue to fool the useful idiots that keep donating to this massive for profit country called the Vatican…


“We can’t sell our assets. They are priceless.
There is not enough money in the world to buy just one.
Therefore, we are declaring bankruptcy.”


“The Saints organized a union,
and they are demanding health benefits.
Please give.”


“Where in God’s name did I put my savings account?”


“I’m sorry, but God just called.
He says we’re broke.


I could go on… and on and on and on… but you get the point. The organization of corporate religion is not a Christian one. And the Vatican is a corporate camel with no chance of fitting through even the largest gauge needle.

In the end, if you understand what has been written here, then you understand the entirety of the government investment scheme. And you understand that the people of America are wealthy beyond imagination, but that wealth is being hidden in plain sight while government creates welfare programs to sustain the poverty level while collecting even more taxes from the poor – never fixing the very problem of poverty because that is the only thing that will create wealthy men and corporations.

Welcome to America… a potential heaven on earth, kept in purgatory by government obfuscation and hoarding of its actual wealth.


–Clint Richardson (
–Friday, July 13, 2012

CAFR SCHOOL: How Corporations Are Funded By Taxpayers

As a lowly young man full of ideas that would have changed the world; and naively believing that I could implement them, I often wondered at how large corporations became so wealthy and attained such incredible amounts of capital for their projects, warehouses, office buildings, investments, and for their global expansion. Why were the tallest buildings in every city I visited always topped with a bank logo? Why were the names of every city’s sports arenas and concert halls being replaced with oil/energy and other corporation names and logos, even though the taxpayers paid for their construction? And after many failed attempts to start up my own small business ventures that would revolutionize the world, I gave up trying to play in the big boy markets, because I couldn’t get my hands on the big boy money. I realized that some unseen hand would not allow me to compete, though I could never figure out just whose hand it was. And so I gave up… justifying and rationalizing my failures on this unseen force that I knew existed but could never actually see…

And then I met a man named Walter Burien.

It is not often in our lives that we come across one man who virtually lifts the wool from over our own eyes, but this was one of those times. It was not so much what he showed me as much as what he inspired me to do. And thanks to him, I was hooked on a little thing called the Comprehensive Annual Financial Report (CAFR).

For months and months I poured over these financial statements for the various types of government municipal corporations, attempting to comprehend the almost foreign creative accounting language and legalese that was presented within – which was sure to drive off even the most ardent of researchers. But for some reason, as frustrating as that learning curve was, I persisted. And finally, after so many years of being blinded by that unseen hand, I can at last see my nemesis…

As it turns out, this foe was the very government structure that had passed the legislation limiting me in my business ventures. It is the same government corporate structure that assigns patents to the major corporations, while making the patenting process either too expensive or too difficult for the average person or small business to utilize. It was the same government corporation that made it so hard to incorporate in the first place, and which created so many fees, taxes, and restrictions that a small business could never really get ahead. And it is the same government that literally owns everything you can see – that has invested over many decades into all private and public corporations, real estate, foreign currencies, precious metals, and everything else worth owning under the sun and around the world.

No wonder the average Joe can’t get ahead!

I have been asked several times to explain how banks, weapons manufacturers, insurance companies, investment holdings companies, health and pharmaceutical corporations, and essentially the entire corporate business structure of the world is funded – why do private corporations have so much extra money to expand, to buy other corporations, and to just in general play around with? How do banks come up with the capital to mortgage the entirety of the salable lands of the world? And where does that money come from in the first place?

As it turns out, the people of the United States are paying for this through their own sheer ignorance of where their own taxpayer money is being taken and invested. And this of all ironies is the most destructive reality for the very people who lack the knowledge of their own governments’ grand conspiracy through its investment fund scheme.

And today, I’m here to wake you the hell up!


The Problem With Pensioners


As a public pensioner, what would you do if I told you that, indirectly, you are responsible for most of the problems in the world, from hunger to depression to war?

What would you do if I told you that each one of you as pensioners are voluntarily invested in all of the corporations that are destroying our health, our prosperity, and our world?

What would you do if you found out that because of each one of you collectively, the worst of corporations are being funded with taxpayer money?

How would you feel if you were heavily responsible for the funding of globalization; for building up Mexico and China’s sweatshops and promoting imports to America – and for the loss of jobs in America – simply because you are not paying attention – or don’t know – or don’t care – about what your “retirement nest-egg” is investing in, as long as you’re taken care of in the end?

What would you do if you found out that your pension contributions went to fund the corporate stocks and bonds that are used to build the weapons, the chemical biological agents, and the depleted uranium armaments that are killing and retarding millions upon millions of men, women, and children around the globe, including in America?

What if you finally comprehended that the national and international banks, oil and pharmaceutical companies are all funded by your “contributions”, and that all of the taxpayer’s in America are also forced through taxation to contribute to your pension fund investment scheme (with no benefit to the taxpayers themselves), knowing that the U.S. occupations of the Arab nations like Afghanistan and Iraq are for the government’s and the corporation’s control of oil and opium, and that these beautiful countries and their infrastructures are decimated just so that corporations like Halliburton can rebuild those infrastructures via no-bid government contracts while being forced into debt by the very government you fund?

How would it feel to know that the entirety of the government-contracted corporations that make up the “Military-Industrial Complex” are all funded by our collective pension fund contributions?

What would you do?

Is your nest-egg; your pension retirement benefits… are they really more valuable than the millions and millions of lives lost around the world at the hands of the corporations that your collective monetary contributions support via these government investment pension pools?

If you are a taxpayer or a pensioner (and that’s about anyone who is reading this), then you are absolutely and collectively 100% responsible for all of the above – simply because you don’t know.


Where Are My Pension Contributions Invested?


This oh so important question is one that is not generally asked by the recipients of pension benefits. To most, the answer to this question does not matter, as long as there is a return on that investment today that will guarantee personal retirement benefits tomorrow. And this is perhaps the most egregious and shameful aspect of the entire population of America – of all people. For your wealth and the benefits that you receive are directly correlated to the poverty and destruction that allows corporations and government to prosper. In short, as a pensioner, you are being paid for looking the other way.

As a taxpayer, you should know that many 100’s of billions of dollars are ripped out of the tax-base each year and force fed into the nation-wide pension system (including Social Security) in the form of “on-behalf” taxpayer “contributions” for federal, state, local, and district pension employees. This world-wide phenomenon has created an international pension investment system that, in January 2008, Morgan Stanley estimated held over US $20 trillion in assets, and are collectively the largest investment platform in the world. Others with a less personal and unbiased interest in these pension funds make this estimate to be many trillions higher.

We have all heard about Morgan Stanley, as well as many other major conglomerate banking institutions like J P Morgan Chase. They have been demonized as rogue institutions that are destroying the economy seemingly outside of the law or of government intervention – aside from bailing them out with taxpayer money when their gambling habits take a wrong turn (publicly and purposefully that is, because for every loss there is an equal gain by some other entity collaboratively playing the same game).

So let’s examine some of the United States’ Pension investments that are funding the capital liquidity and crime of institutions like Morgan Stanley…

We’ll use the largest public pension fund in the United States, CalPERS.

For those who have never before had the chance to behold the incredibly inconceivable wealth and investments that most pension funds have within, this is a wonderful tool to get a grasp on just how the international structure of corporations that make up the “economy” get their funding. Here is the “Annual Investment Report” for fiscal year 2011, which shows all of CalPERS individual investments:


One could spend all day going through this investment holdings report and find just about every corporation in the world as a government investment stock-held company. But remember, this is just one of thousands of pension funds across the country, all with the same investment structure on different levels.

So let’s look and see just how much of your taxpayer and pension contributions in just CalPERS are funding just these two banks as of 2011:


CalPERS just happens to own 4,583,935 shares of Morgan Stanley, at a listed book value of $98,224,686 – and a market value of $105,476,344.

It also lists its direct stock ownership in JP Morgan Chase at 11,543,471 shares, with a book value of $292,151,725 – and a market value of $472,589,703.

TOTAL (book value) = $390,376,411
TOTAL (market value) =

(Note: These are two separate companies, used here as examples.)


This represents the ownership portion of stock that this single government pension fund “CalPERS” owns outright in these two banks. The conflict of interest should be apparent here, as this and all pension funds around the world depend upon a return (profits and dividends) from holding this stock investment, while at the same time being a part of the same government that regulates the banking industry. One does not necessarily want a major stock owner of a banking corporation also making the public laws, for instance, on real estate loans and the foreclosure process. But that is exactly what is happening here.

But we can’t stop here, for this is a massive list with many different types of investments into Morgan Stanley and JP Morgan Chase (as well as every significant bank on the planet). CalPERS also lists the following forms of taxpayer monies being given, loaned, or “bonded” to Morgan Stanley:


(Page 4) “Domestic Cash Equivalents (securities)”

COLLATERL JP MORGAN CHASE – par/market value – $39,800,000 – listed at a measly 0.07% return, maturing 12/31/1949

MORGAN STANLEY REPO – par/market value – $66,500,000 – listed at a measly 0.04% return, maturing 12/31/1949

TOTAL (par/market value) = $106,300,000


(Page 6-7) “Asset-Backed Securities”

CHASE ISSUANCE TRUST – par value – $1,865,000,000 – market value – $1,887,438,748 – 1.74% return, maturing 04/15/2014

JP MORGAN MORTGAGE ACQUISITION – par value – $7,150,000  market value – $2,532,394 1.32% return, maturing 01/25/2037.

JP MORGAN MORTGAGE ACQUISITION – par value – $27,936 – market value – $8,166 – 0.91% return, maturing 08/25/2036.

MORGAN STANLEY CAPITAL INC – par value $95,008 – market value – $77,319 – 0.88% return, maturing 09/25/2034

MORGAN STANLEY CAPITAL INC – par value $2,660,000– market value – $1,866,197 – 0.69% return, maturing 12/25/2035

MORGAN STANLEY CAPITAL INC  – par value $2,921,764– market value – $2,537,286 – 0.58% return, maturing 11/25/2035

MORGAN STANLEY DEAN WITTER CAP – par value $292,899– market value – $111,961 – 8.53% return, maturing 11/25/2032

TOTAL (par value) = $1,878,147,607
TOTAL (market value) = $1,894,572,071


(Note that CalPERS gave these “loans” to Morgan Stanley, getting a horrible return on its investment, often less than 1% – and not getting that money paid back until as long as 2037 and beyond. This leaves Morgan Stanley and JP Morgan Chase to use and invest that money for more than 25 years for future massive profits and expansion. And if these banks lose it? No problem. The taxpayers are always there to bail them out! And your credit card from these same banks, which may be using some of this same CalPERS pension fund investment money to loan back to you via your credit card, personal, or mortgage loan, may have an interest rate as high as 24%!!!)


(Page 14) “Corporate Bonds”

JPMC CAPITAL XVIII – par value $5,760,000 – market value – $5,740,3486.95% return, maturing 08/01/2066

JPMORGAN CHASE & CO – par value $96,000,000 – market value – $103,112,640 – 7.90% return, maturing 04/29/2049

JPMORGAN CHASE + CO – par value $1,600,000 – market value – $1,656,316 – 4.95% return, maturing 03/25/2020

JPMORGAN CHASE CAPT XX – par value $ 8,765,760 – market value – $8,734,555 – 6.55% returnmaturing 09/15/2066

MORGAN STANLEY – par value $56,640,000 – market value – $62,164,863  – 6.63% return, maturing 04/01/2018

MORGAN STANLEY – par value $45,120,000 – market value – $48,356,731 – 5.95% return, maturing 12/28/2017

MORGAN STANLEY – par value $48,000,000 – market value – $49,159,823 – 5.63% return, maturing 09/23/2019

MORGAN STANLEY – par value $870,000 – market value – $906,554 – 4.75% return, maturing 04/01/2014

MORGAN STANLEY – par value $2,870,000 – market value – $2,798,066 – 0.59% return, maturing 01/09/2014

MORGAN STANLEY DEAN WITTER – par value $1,130,000 – market value – $1,180,195 – 6.60% return, maturing 04/01/2012

TOTAL (par value) = $266,755,760
TOTAL (market value) = $283,810,091


(Page 51-52) “Mortgage-Backed Securities”

JP MORGAN CHASE COMMERCIAL MOR – par value $308,972,643 – market value – $3,256,324 – 0.35% return, maturing 01/15/2042

JP MORGAN CHASE COMMERCIAL MOR – par value $32,928,000 – market value – $36,647,187 – 6.07% return, maturing 04/15/2045

JP MORGAN CHASE COMMERCIAL MOR – par value $70,560,000 – market value – $77,115,803 – 5.88% return, maturing 02/15/2051

JP MORGAN CHASE COMMERCIAL MOR – par value $274,891,936 – market value – $295,478,211 – 5.44% return, maturing 06/12/2047

JP MORGAN CHASE COMMERCIAL MOR – par value $18,816,000 – market value – $20,331,229 – 5.42% return, maturing 01/15/2049

JP MORGAN CHASE COMMERCIAL MOR – par value $1,085,000 – market value – $1,156,473 – 5.34% return, maturing 05/15/2047

JP MORGAN CHASE COMMERCIAL MOR – par value $1,700,000 – market value – $1,849,798 – 5.43% return, maturing 12/12/2043

JP MORGAN CHASE COMMERCIAL MOR – par value $30,209,893 – market value – $552,778 – 1.40% return, maturing 10/12/2037

JP MORGAN CHASE COMMERCIAL MOR – par value $109,863,895 – market value – $339,216 – 0.94% return, maturing 11/15/2035

JP MORGAN CHASE COMMERCIAL MOR – par value $25,783,365 – market value – $159,792 – 1.17% return, maturing 10/12/2035

JP MORGAN MORTGAGE TRUST – par value $858,671 – market value – $838,576 5.78% return, maturing – 04/25/2036

JP MORGAN MORTGAGE TRUST – par value $308,554 – market value – $260,083 – 2.77% return, maturing 07/25/2035

JP MORGAN MORTGAGE TRUST – par value $1,459,122 – market value – $1,304,019 – 2.78% return, maturing 06/25/2036

JP MORGAN MORTGAGE TRUST – par value $68,035 – market value – $66,727 – 2.96% return, maturing  11/25/2033

MORGAN STANLEY CAPITAL I – par value $98,784,000 – market value – $7,262,168 – 1.37% return, maturing 06/15/2044

MORGAN STANLEY CAPITAL I – par value $1,700,000 – market value – $1,789,567 – 5.57% return, maturing 12/15/2044

MORGAN STANLEY CAPITAL I – par value $47,040,000 – market value – $50,482,724 – 5.33% return, maturing 11/12/2041

MORGAN STANLEY MORTGAGE LOAN T – par value $670,407 – market value – $156,964 – 3.00% return, maturing 08/25/2034

MORGAN STANLEY MORTGAGE LOAN T – par value $561,385 – market value – $141,127 – 2.90% return, maturing 09/25/2034

MORGAN STANLEY MORTGAGE LOAN T – par value $1,307,796 – market value – $565,047 – 4.32% return, maturing 06/25/2037

MORGAN STANLEY MORTGAGE LOAN T – par value $4,008,030 – market value – $2,456,630 – 5.14% return, maturing 11/25/2037

MORGAN STANLEY MORTGAGE LOAN T – par value $18,201 – market value – $18,087 – 6.00% return, maturing 08/25/2037

MORGAN STANLEY MORTGAGE LOAN T – par value $1,712,350 – market value – $1,222,467 – 2.61% return, maturing 07/25/2035

MORGAN STANLEY MORTGAGE LOAN T – par value $364,015 – market value – $305,840 – 1.60% return, maturing 10/25/2034

TOTAL (par value) = $1,033,671,298
TOTAL (market value) = $958,096,837

(Yes, you read that correctly. You’ve heard about these mortgage-backed securities and you’ve probably wondered – who was buying all of these things anyway? Well now you know… your own government – with your own money! Your government not only allows these criminal junk securities to be legal and flourish in the banking and investment markets by law, but government also funds the whole financial mechanism so that banks can buy, sell, and resell and re-resell and re-re-resell and re-re-re-resell your mortgage contract until no one actually knows who has the original lien and deed on anyone’s home anymore. Again, government invests in corporations and funds their liquidity… and it benefits from your suffering and from the loss of your home when the bank forecloses. All that matters is that their stock investment and liquidity in the company has capital gains, creates interest, and pays dividends. And your personal ignorance of this is key to the whole operation.)


(Page 57) “International Debt Securities”

MORGAN STANLEY – par value $4,000,000
market value – $5,417,906 – 1.71% return, maturing 04/13/2016

TOTAL (par value) = $4,000,000
TOTAL (market value) = $5,417,906


So let’s total up these investments and loans and figure out just how much this one pension fund called CalPERS has invested into just these two conglomerate banks:

Direct Ownership Stock Holdings:

TOTAL (book value) = $390,376,411
TOTAL (market value) = $578,066,047

Domestic Cash Equivalents (securities)

TOTAL (par/market value) = $106,300,000

Asset-Backed Securities

TOTAL (par value) = $1,878,147,607
TOTAL (market value) = $1,894,572,071

Corporate Bonds

TOTAL (par value) = $266,755,760
TOTAL (market value) = $283,810,091

Mortgage-Backed Securities

TOTAL (par value) = $1,033,671,298
TOTAL (market value) = $958,096,837

International Debt Securities

TOTAL (par value) = $4,000,000
TOTAL (market value) = $5,417,906


TOTAL (par value) = $3,679,251,076
TOTAL (market value) = $3,826,262,952


It is important to understand here that this single pension fund has nearly $4 billion in directly apportioned investments within just these two banks. In reviewing thousands of other public pension fund “asset holding lists” we will find a similar pattern, from billions to millions and down into the smallest of pension funds with mere thousands. But collectively, when all of these funds are considered as one whole government investment scheme, we can easily see that the corporate world as it stands today would not exist without government funding through taxpayer and pension contributions to it, and directly because of these pension investments over the last several decades.

It is also important that we consider what are called “indirect” investments held by these pension funds. While direct stock and bond listings are very clear as to where that taxpayer money is invested, CalPERS (and all pension funds) also invest heavily into the private equity and mutual fund markets. In fact, as you can see, the pension and other government fund structures across the country are the main investors (institutional investors) within these private funds.

The problem? Those funds also invest into JP Morgan Chase, Morgan Stanley, and most other banks and investment houses. And so to get an accurate accounting of the % of investments that CalPERS actually has within these two financial institutions, we would have to audit its own investments in these private funds to find out where that private fund has placed CalPER’s investment income – and good luck with that!

Let’s see what CalPERS has in a few of these private equity funds…


State Street Corporation:

STATE STREET CORP – 1,777,017 shares of ownership stock at a market value of $80,125,697

“Corporate Bonds”

STATE STR CAP TR III  – par value $6,200,000
market value – $6,202,728 – 5.24% return, maturing 01/29/2049


Why is State Street Corporation important here?

From this CalPER’s report, it states:

“Our Investment Office staff, pension consultant Wilshire Associates, and State Street Bank & Trust, our master custodian, compiled the investment data presented on the next pages as required by the Public Employees’ Retirement Law.”

So CalPER’s pension fund owns stock in the banking institution that is its “master custodian”, and this bank is responsible for issuing the very report we are reading!!! Yet another blatant conflict of interest, in a bank that is not in a position to go against its stockholder without consequence!

Now let’s look at the Carlyle Group…

This investment giant is infamously connected to the George Bush family, who became president of the whole corporate government structure (not to mention his son), and as you can imagine continues to indirectly benefit heavily from government investments into this “group” – where he and his cronies acquire corporation after corporation with your taxpayer money…

Just what is The Carlyle Group?

“The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington D.C. The Carlyle Group operates in four business areas: corporate private equity, real assets, market strategies, and fund-of-funds, through its AlpInvest subsidiary. In its 2010 annual report, Carlyle reported assets in excess of $150 billion under management diversified over 84 distinct funds.The firm employs more than 890 employees, including 495 investment professionals, in 20 countries with offices in the Americas, Europe, Asia, and Australia, and its portfolio companies employ more than 415,000 people worldwide. The firm has over 1,300 investment partners in 71 countries.

According to a 2011 ranking called the PEI 300 based on capital raised over the last five years, Carlyle was ranked as the third largest  private equity firm in the world, after TGP Capital and Goldman Sachs Principal Investment Area. Carlyle had been ranked first in the 2007 listing.

In 2001, the California Public Employees’ Retirement System (CalPERS) acquired a 5.5% holding in Carlyle’s management company for $175 million. The investment was valued at approximately $1 billion by 2007 at the height of the 2000’s buyout boom…

In November 2008, The Carlyle Group was named Private Equity firm of the year in the U.S. at the Financial Times-Mergermarket 2008 M&A Awards.

In March of 2009, New York State and federal authorities began an investigation into payments made by Carlyle and Riverstone to placement agents allegedly made in exchange for investments from the New York State Common Retirement System (NYSCRS), the state’s pension fund. It was alleged that these payments were in fact bribes or kickbacks, made to pension officials who have been under investigation by New York State Attorney General, Andrew Cuomo. In May of 2009, Carlyle agreed to pay $20 million in a settlement with Cuomo and accepted changes to its fund-raising practices. (Author’s note: Where did that money go, and what was the point – Carlyle Group certainly didn’t change its criminal methods. How did the people benefit? They didn’t.)

In 2010, the Financial Times announced that Carlyle Group is the private equity firm of the year…

In February 2008, a bill was introduced in California that would have barred CalPERS from investing money “with private-equity firms that are partly owned by countries with poor records on human rights,” which would include Carlyle because Mubadala Development is owned by part of the United Arab Emirates. The California bill was later withdrawn.”

George H. W. Bush, former U.S. President, served as Senior Adviser to the Carlyle Asia Advisory Board from April 1998 to October 2003 (while his son was still President!).

So what investments into the bonded liquidity base of the Carlyle Group does CalPERS have on its balance sheets, allowing Carlyle holding companies around the world to flourish with taxpayer investment capital?


The Carlyle Group

Alternative Investment Management Corporate Restructuring (securities)

Name of holding company…..
Book Value
……….Market Value












$3 ,803,945…………..$7 ,150,317








 “Alternative Investment Management Distressed Securities”




 “Alternative Investment Management Expansion Capital”



CARLYLE GROUP……………………………………




“Alternative Investment Management Special Situation”



“Alternative Investment Management Venture Capital”

CARLYLE ASIA II LP……………………………….



“Inflationary-Linked Assets”






But we mustn’t forget about the subsidiary corporations owned by Carlyle Group, for these pension funds also purchase stock in these sub-corporations as well as their mother corporation – which can also be considered here as investments into the Carlyle Group itself:

BOOZ ALLEN HAMILTON HOLDING – 26,773 direct shares, market value – $511,632

CSX CORP – 3,245,673 direct shares, market value – $85,101,546

CSX CORPORATION (Corporate Bonds)

CSX CORP – par value $22,272,000 – market value – $25,228,341 – 6.80% return, maturing 12/01/2028

CSX CORP – par value $35,299,200 – market value – $37,628,500 – 6.22% return, maturing 04/30/2040

CSX CORP – par value $1,920,000 – market value – $2,031,062 – 6.15% return, maturing 05/01/2037

HERTZ GLOBAL HOLDINGS INC – 1,404,911 direct shares, market value – $22,309,987


HERTZ CORP – par value $554,280 – market value – $568,137 – 8.88% return, maturing 01/01/2014

HERTZ CORP – par value $480,000 – market value – $494,400 – 7.50% return, maturing 10/15/2018

HERTZ CORP – par value $1,920,000 – market value – $1,953,600 – 7.38% return, maturing 01/15/2021

HERTZ CORP – par value $2,400,000 – market value – $2,376,000 – 6.75% return, maturing 04/15/2019

LOEWS CORP – 1,086,790 direct shares, market value – $45,742,991

QINETIQ GROUP PLC – 2,078,385 direct shares, market value – $4,027,451


Finally, lets see what CalPERS has invested in Goldman Sachs…


GOLDMAN SACHS GROUP INC 1,489,274 direct shares, market value – $198,207,477

GOLDMAN SACHS – “Corporate Bonds”

GOLDMAN SACHS CAP III – par value $3,620,000 – market value – $2,752,503 – 1.02% return, maturing 09/29/2049

GOLDMAN SACHS GROUP INC – par value $110,400,000 – market value – $108,809,563 – 6.75% return, maturing 10/01/2037

GOLDMAN SACHS GROUP INC – par value $4,800,000 – market value – $5,589,452 – 7.50% return, maturing 02/15/2019

GOLDMAN SACHS GROUP INC  – par value $13,440,000 – market value – $12,763,456 – 5.95% return, maturing 01/15/2027

GOLDMAN SACHS GROUP INC – par value $19,200,000 – market value – $19,281,299 – 6.25% return, maturing 02/01/2041

GOLDMAN SACHS GROUP INC – par value $14,400,000 – market value – $14,788,437 – 5.38% return, maturing 03/15/2020


These direct stock investments, as I’ve covered in depth before, represent a massive controlling stake in the corporate world, both national and international. And equally as relevant to the corporate takeover of the world, we can see that these “alternative” investments and corporate bonds literally give taxpayer money to the private industries that the government is a major or controlling stock owner of.

In other words, the taxpayers are unwittingly contributing to everything they complain about in the corporate world – to everything that is slowly killing their health and their spirit. Food, chemical, pharmaceutical, medical, banking, insurance, real estate, foreign currency, private equity funds, and everything else under the sun.


What Could Happen?


To put this into perspective, a horrific thought just occurred to me…

As of this moment, in July of 2012, these pension systems are owned and operated by local, state, federal government municipal corporations, and administered by their corporate boards for what they claim to be “on behalf of the employees” that contribute to them under federal and state pension laws. And like any private pension system out there, these corporations are at risk of bankruptcy, government raids, credit risks, or other purposeful mismanagement’s that might befall the public, government owned and controlled pension system.

So what would happen to all of these direct ownership stock investments in a worse case scenario – if the government decided to raid and kill the pension system all together?

What would happen to those stocks, and what would become of the debt that these private corporations owe the government (the people) if all of a sudden the whole thing came crashing down?

The answer to these questions, in this authors perspective, would be the final nail in the 4-decade long efforts to completely privatize our government. It would mean that those stock certificates that are held by each of these pension funds would either be transferred into private hands, or they would be sold off for pennies on the dollar in a false-flag depression scenario to the worst of either these private corporations or to some other individual or country. In short, it would mean the largest transfer of wealth out of the public’s hands in recorded history, including real estate, foreign currencies, stocks and bonds, precious metals, and the many other assets within.

But that’s not all folks… for all of those corporate bonds would also change hands, being transferred or sold off – possibly to the very private banking institutions that were the beneficiaries of those corporate bond and securities-type loans in the first place. In other words, the debts would never come back to the pensioners/taxpayers that loaned it in the first place (the public), but instead would be paid back by the corporations to the corporations themselves, ultimately equating to a grand theft of massive proportions via the loss to the taxpayers as the corporations pay themselves back for the debt against themselves as owners of their own debt… a paradox, and yet quite reasonable to these organized criminals.

This would be no different than the Public Private Partnerships (PPP) happening all over the country now, where parking garages, toll-roads, bridges, and other public infrastructure has been sold or “privatized” into the hands of banks and other private corporations – who now operate and collect the tolls and taxes for the infrastructure that was built by our forefathers and our children.

One could go crazy thinking about this…

For it would not take much at all to accomplish this feat. For federal pensions, as part of the Executive branch, a simple executive order might be signed by the president directing the liquidation of the pension system to pay for the “national debt”. On the State and local levels, simple bankruptcy proceedings would do the job, and the people and pensioners would be left out in the cold. After all, the taxpayer portion of the pension system is government property.

This extremely viable possibility could easily be implemented as the solution to the reaction to the problem of the lie that is continuously perpetrated on the American public – that the pension system is on a whole entirely underfunded. In two years of looking, I’ve yet to see a pension fund that meets this criteria, per the Comprehensive Annual Financial Report. This lie stems from the actuarial projections (educated and purposefully misleading guess) on the future potential of pension funds. It has nothing to do with reality, and this is easily verified in the CAFR.

The following capital gains for 2010 were stated by the following public pension systems:

New York State Retirement System – $23.3 billion gain in net assets after all benefits paid.

CalPERS – $22.7 billion gain in net assets after all benefits paid.

CalSTRS – $11.3 billion gain in net assets after all benefits paid.

Texas State Teachers Retirement System – $7 billion gain in net assets after all benefits paid.

New York City Retirement – $3.4 billion gain in net assets after all benefits paid.

The pension system is, as you can see here, responsible for globalism at its finest. It is responsible for war, for famine, for disease, and for hunger. The whole world could be fed and clothed 100 times over with just the over $260 billion of investment wealth found in the CalPERS pension fund.

But while the pension system is responsible for these things around the globe, it is the people of America that are responsible for the funding of pension funds. Looking the other way in ignorance and greed must come to an end before the worst happens. The people must take responsibility for their own investment concerns, not relying on government to do it for them. The people must invest in what will benefit all people – from alternative energy to real cures for disease. Personal responsibility is the only solution we the people have left; and if we don’t choose to take responsibility for our own lives, our mother who calls itself government and calls us “customers” and “dependents” will continue down this road until just a few conglomerate corporations remain – as government privatizes and merges its investment held corporate structure into one giant United Nations IMF World Bank holding company.

In the end, I can only ask you to look at this report, and to see where your pension and taxpayer money is being invested… I can only ask:

What will you do tomorrow, knowing that your pension contributions are funding poverty and the the global war machine?

On a mission to document our enslavement to ourselves by our own consent…


–Clint Richardson (
–Tuesday, July 10th, 2012

California Government Hides Billions From Taxpayers


The Big Lie

Over the past weekend, Gov. Jerry Brown of California took to the safety of YouTube to reveal that the Golden State’s budget deficit is now $15.7 billion, far greater than the original $9.2 billion estimate in January. (CNN, May 15, 2012)


The Simple Truth

The State Government of California has $100’s of billions in liquid investments and assets, could easily pay off all of its debt tomorrow, and would have $100’s of billions left over.


What if I could show you over $577 billion in investment fund balances that aren’t being reported by the California State Government on its budget report?

Well that is what I’m about to do…

In this article we will once again show the purposeful omission of massive amounts of wealth by your government. If you live in California, this may well be the most important thing that you read this year. If you live elsewhere… rest assured that the same holds true in your State, County, Municipality, School and other districts.

In what can only be called a recently government produced propaganda video, California Governor Jerry Brown is addressing and purposefully lying to the people of California, where he nicely threatens to cut school funding by multiple billions if the people of the State do not vote in favor of his new budget plan:

“Gov. Jerry Brown’s 2012-13 budget would slash $5.2 billion in public school funding if voters reject the tax increases he is trying to put on the November ballot…”


So… is California in such a financial deficit, as the Governor and his proposed and revised budget plan so matter-of-factly states?

This is the question that we will be answering today. But in order to answer this question, we must go to the true source of financial auditing for government, the Comprehensive Annual Financial Report (CAFR). This report – the full accounting of government and its investments – is virtually never spoken of publicly. It is not mentioned on the nightly news. And it is not referred to when addressing the people about taxpayer issues and budgetary considerations and shortfalls. In short, this CAFR report is the Holy Grail of government accounting; very difficult to read and comprehend, and worse of all… it is hidden in plain sight.

Here is a link for the 2011 Comprehensive Annual Financial Report (CAFR) for the State government (corporation) of California – a 300 page, independently audited report required by federal law, and which will be the subject of the following information.


And for previous years back through fiscal year 1999:


Now, the first thing that must be understood is the difference between the partial “budget report” as referred to above by the Governor, and that of the Comprehensive Annual Financial Report – which is the full audit of the California government. The following paragraph is taken directly from the 2011 CAFR report, and explains this difference quite succinctly…

On page 200, the 2011 California State CAFR explains the following (emphasis mine):

“On a budgetary basis, the State’s funds are classified as either governmental cost funds or nongovernmental cost funds. The governmental cost funds include the General Fund, most of the funds that comprise the Transportation Fund, and many other funds that make up the nonmajor governmental funds reported in these financial statements. Governmental cost funds derive their revenue from taxes, licenses, and fees that support the general operations of the State. The appropriations of the budgetary basis governmental cost funds form the annual appropriated budget of the State.

Nongovernmental cost funds consist of funds that derive their receipts from sources other than general and special taxes, licenses, fees, or state revenues and mainly represent the proprietary and fiduciary funds reported in these financial statements. Expenditures of these funds do not represent a cost of government and most of the nongovernmental cost funds are not included in the annual appropriated budget…”

And so we can see that governments participate in many business activities; and we must first and foremost understand that a large portion of liquid investment assets are held within what the government calls “non-governmental” activities, including “Enterprise Operations”. These investment assets are usually kept in what are called “Investment Funds”.

But government is only obligated (by its own law) to report what it refers to as “governmental” or “taxpayer” activities to the citizenry on its “Budget/Appropriations Report”. Tax in… Tax out…

In short, the Governor of the great corporate State of California is lying to his taxpayers through the act of omission of these CAFR facts, by only referring to a hand selected portion of that CAFR, which is called the State’s annual budget report. While this should be tried as perjury, the laws of the State/Federal government protect him from this ever happening.

To help in your understanding, let’s say that you were to have a checking account with $1,000 and a savings account with $10,000 in two different banks, and that you only reported to the government that you had $1,000 dollars as your net worth because you don’t want to use your savings account to pay bills (taxpayer obligations) to government. You’d be audited and put in a federal debtor’s prison. But for government, the simple designation of “non-governmental” or “non-taxpayer” income and investment returns allows them to hide all of this wealth from the people and the “Budget Report”, while never mentioning the funds and wealth in the CAFR report. The only difference is that government does this legally – because government makes its own laws!

Why do they do this?


Taxation is nothing more than revenue generation. And much of that taxpayer money ends up in non-governmental corporations and investment funds.

Think of a manager of any department in any private corporation whom, at the end of the fiscal year has $10,000 dollars left over in his expense account. If he doesn’t spend that money, he will be appropriated $10,000 less for his budget in that next fiscal year because he was given too much for the current year. So he purchases extra supplies his department doesn’t need and maybe even spends $1,000 extra so that he gets even more money appropriated for the next year. As long as government shows a budget report to the people (taxpayers) that excludes many of its assets because they are non-governmental (non-taxpayer obligated) assets, it can continue each year to claim the need for more taxation and more debt because it is funneling so much money into these nongovernmental investment funds.

Here is a list of ending balances of all of the governmental and nongovernmental “Investment Funds” that the California State Government was holding onto for the year 2011:

Nonmajor governmental funds account for the State’s tax-supported activities that do not meet the criteria of a major governmental fund. Following are brief descriptions of nonmajor governmental funds.

Special revenue funds account for the proceeds of specific revenue sources, other than debt service or capital projects, that are restricted or committed to expenditures for specific purposes.

Page 194 – (chart) “Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds” – as of June 30, 2011:

Business and Professions Regulatory and Licensing Fund$1,396,449,000

Environmental and Natural Resources Fund$8,683,305,000

Financing for Local Governments and the Public Fund$5,273,511,000

Cigarette and Tobacco Tax Fund$253,300,000

Local Revenue and Public Safety Fund$44,520,000

Health Care Related Programs Fund$947,552,000

Trial Courts Fund$1,522,274,000

Golden State Tobacco Securitization Corporation Fund – $619,754,000

Other Special Revenue Programs Fund – $1,907,723,000





Debt service funds are used to account for the accumulation of resources for and the payment of principal and interest on general long-term obligations.

The Economic Recovery Bond Sinking Fund$484,712,000

The Transportation Debt Service Fund$0.00





Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

Prison Construction Fund$2,938,000

Higher Education Construction Fund$604,202,000

Natural Resources Acquisition and Enhancement Fund$56,584,000

Hospital Construction Fund$411,814,000

Local Government Construction Fund$499,973,000

Other Capital Projects Funds$13,945,000





Building authorities are blended component units that are created by joint-powers agreements between local governments and the State or other local governments for the purpose of financing the construction of state buildings. The funds account for bond proceeds used to finance and construct state buildings and parking facilities.

East Bay Building Authority$22,404,000

Los Angeles Building Authority$12,604,000

San Francisco Building Authority$30,547,000

Oakland Building Authority$8,333,000

Riverside Building Authority $1,245,000

San Bernardino Building Authority$11,041,000





Internal service funds – (Page 206) account for state activities that provide goods and services to other state departments or agencies on a cost reimbursement basis. Following are brief descriptions of the internal service funds.

Architecture Revolving Fund$-25,228,000

Service Revolving Fund$-52,412,000

Prison Industries Fund$203,827,000

Office of Systems Integration Fund$-1,348,000

Technology Services Revolving Fund$130,079,000

Water Resources Revolving Fund$0.00

Financial Information Systems Fund$-28,915,000

Other internal service program funds$348,352,000





Enterprise funds – (Page 218) – account for operations that are financed and operated in a manner similar to private business enterprises, where the costs of providing goods or services to the general public on a continuing basis are intended to be financed or recovered primarily through user charges.

High Technology Education Fund$34,907,000

State Water Pollution Control Revolving Fund$3,172,928000

Housing Loan Fund$159,679,000

Other enterprise program funds $245,450,000





Private purpose trust funds account for all trust arrangements, other than those properly reported in pension and other employee benefit trust funds or investment trust funds, under which principal and income benefit individuals, private organizations, or other governments.

The Scholarshare Program Trust Fund$4,521,770,000

The Unclaimed Property Fund$102,534,000

Other Private Purpose trust funds $877,000





Pension and other employee benefit trust funds – (Page 234) – account for transactions, assets, liabilities, and net assets available for pension and other employee benefits of the two public employees’ retirement systems that are fiduciary component units and for other primary government employee benefit programs.

Public Employees’ Retirement Fund (CalPERS)$241,761,791,000

Public Employees’ Health Benefits Fund (CalPERS)$1,866,877,000

State Teachers’ Retirement Fund (CalSTRS)$155,345,815,000

Teachers’ Health Benefits Fund (CalSTRS)$598,000

Deferred Compensation Fund$9,365,582,000

Judges’ Retirement Fund (CalPERS)$54,146,000

Judges’ Retirement Fund II (CalPERS)$575,833,000

Legislators’ Retirement Fund (CalPERS)$123,476,000

State Peace Officers’ and Firefighters’ Defined Contribution Plan Fund (CalPERS) $499,873,000

Supplemental Contributions Program Fund (CalPERS)$19,658,000

Other pension and other employee benefit trust funds$10,117,000





Agency funds – (Page 238) – account for the receipt and disbursement of various taxes, deposits, deductions, and property collected by the State, acting in the capacity of an agent, for distribution to other governmental units or other organizations.

Receipting and Disbursing Fund $16,599,601,000

Deposit Fund$1,793,962,000

Other agency activity funds$51,000,000


TOTAL IN AGENCY FUNDS = $18,444,563,000



Nonmajor component units are legally separate entities that are discretely presented in the State’s financial statements in accordance with GAAP. The inclusion of component units in the State’s financial statements reflects the State’s financial accountability for these entities.

California Alternative Energy and Advanced Transportation Financing Authority$1,661,000

California Infrastructure and Economic Development Bank$270,736,000

California Pollution Control Financing Authority$4,015,000

California Health Facilities Financing Authority $66,172,000

California Educational Facilities Authority$33,389,000

California School Finance Authority$158,000

California State University auxiliary organizations – $2,025,810,000

District agricultural associations$323,244,000

University of California Hastings College of the Law$144,486,000

San Joaquin River Conservancy$988,000

California Urban Waterfront Area Restoration Financing Authority$1,000

State Assistance Fund for Enterprise, Business and Industrial Development Corporation$3,703,000





In the “FUND FINANCIAL STATEMENTS”, listed on Page 33 of the CAFR, we also see the following Major Governmental fund balances reported:

(Chart) (Page 36) – “Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds”, for fiscal year 2011:

Federal Fund$121,554,000

Transportation Fund$7,767,232,000


TOTAL IN MAJOR GOVT FUNDS = $7,888,786,000



Proprietary Funds (Chart) (Page 42) – Statement of Revenues, Expenses, and Changes in Fund Net Assets:

Electric Power Fund$0.00

Water Resources Fund$1,205,431,000

Public Building Construction Fund$214,665,000

State Lottery Fund$103,016,000

Unemployment Programs Fund$-6,879,180,000

California State University Fund$2,549,324,000


TOTAL IN PROPRIETARY FUNDS = $-2,806,744,000 (deficit)



Major Discretely Presented Component Units (Chart) (Page 52) – Statement of Net Assets – Enterprise Activity:

University of California Fund$55,793,132,000

State Compensation Insurance Fund$21,258,923,000

California Housing Finance Agency Fund$10,196,223,000

Public Employees’ Benefits Fund $4,071,565,000




Note: over $55,000,000,000 of this is listed as “Investments

The other “Capital Assets” (buildings, land, vehicles, etc.)
are not considered “liquid” assets, but rather permanent.



The California Government also has what it refers to as “Related Organizations”, of which it does not report fund balances in its CAFR:

From the “Notes To Financial Statements” section (Page 63):

5. Related Organizations

A related organization is an organization for which a primary government is accountable because that government appoints a voting majority of the organization’s governing board, but for which it is not financially accountable (in the CAFR).

“Chapter 854 of the Statutes of 1996 created an Independent System Operator, a state-chartered, nonprofit market institution. The Independent System Operator provides centralized control of the statewide electrical transmission grid to ensure the efficient use and reliable operation of the transmission system. The Independent System Operator is governed by a five-member board, the members of which are appointed by the Governor and confirmed by the Senate. The State’s accountability for this institution does not extend beyond making the initial oversight board appointments. Because the primary government is not financially accountable for the Independent System Operator, the financial information of this institution is not included in the financial statements of this report.”

Independent System Operator – Total Assets (as of Feb, 2012) = $875,764,000

Source (CAFR) –
Main Website –


California Earthquake Authority (CEA), “a legally separate organization, offers earthquake insurance for California homeowners, renters, condominium owners, and mobile home owners. A three-member board of state-elected officials governs the CEA. The State’s accountability for this institution does not extend beyond making the appointments. Because the primary government is not financially accountable for the CEA, the financial information of this institution is not included in the financial statements of this report.”

“The CEA is the largest earthquake insurer in California, with over 65% of the residential earthquake insurance market; CEA participating insurers are responsible for almost 80% of California’s residential property insurance.”

“The CEA ended 2010 with 811,317 policies-in-force, which represents a 1.38% increase in policy count compared to year-end 2009.”

“In accordance with California Insurance Code sec. 10089.13, subdivision (b), the California Earthquake Authority reports its finances as of December 31, 2010:

Cash on hand$96,456,862
Stocks or bonds$4,176,584,412
Premiums receivable$49,595,737
Assessments receivable$3,190,830
Interest receivable$12,350,634
Deferred participating-insurer commissions and operating costs$40,674,396
Other assets$1,742,495


CEA – TOTAL AVAILABLE CAPITAL (after liabilities) = $3,753,367,495


Source – CAE CAFR –
Main Website –


Bay Area Toll Authority (BATA), “which is not part of the State’s reporting entity, was created by the California Legislature in 1997 to administer a portion of the toll revenues collected from the San Francisco Bay Area’s seven state-owned toll bridges and to have program oversight related to certain bridge construction projects. In 2005, the California Legislature transferred toll-bridge administration responsibility from the California Department of Transportation (Caltrans) to BATA. This responsibility includes consolidation of all toll-bridge revenue under BATA’s administration. BATA is a blended component unit of the Metropolitan Transportation Commission.”

Balance Sheet for BATA Governmental Funds (June 30, 2008):

General Fund$44,583,169

AB 664 Net Toll Revenue Reserve Fund$42,902,139

STA Fund$123,393,759

Capital Projects Funds$11,376,935

Nonmajor Governmental Funds$141,229,755

Proprietary (Enterprise) Funds (Page 25):

Bay Area Toll Authority Fund$-2,225,847,394

Note: The deficit in this fund is due to transfers out and into other funds of over $930,000,000, as well as grants to CalTrans and other agencies of over $130,000,000 – Remember the example of spending more than you are apportioned each year to show creatively that you are at a deficit?

Service Authority For Freeways And Expressways Fund$22,991,569

Agency Funds Total (Page 31)$78,458,845

Nonmajor Funds:

Transit Reserves Fund$378,485

Rail Reserves Fund$84,611,153

Exchange Fund$6,676,355

BART Exchange Fund$47,549,245

Feeder Bus Fund $48,509


BATA – TOTAL FUND BALANCES (Page 45) = $3,175,070,238


Source CAFR –
Main Website –


Back to the California State CAFR, Notes to Financial Statements, Page 64:

B. Government-wide and Fund Financial Statements

Government-wide financial statements (the Statement of Net Assets and the Statement of Activities) give information on all the nonfiduciary activities of the primary government and its component units. The primary government is reported separately from legally separate component units for which the State is financially accountable. Within the primary government, the State’s governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The effect of interfund activity has been removed from the statements, with the exception of amounts between governmental and business-type activities, which are presented as internal balances and transfers.


Pension Funds are a special case. It is very important for the reader to understand that the world-wide pension system (including Social Security and Medicare funds) is the government’s main tool to funnel massive amounts of taxpayer money into these investment funds schemes. This is taxpayer money being contributed (given) to these pension funds with no benefit to the majority of the taxpayers in the State (only benefits State employees), and these taxpayer contributions are added on top of what these actual state employees contribute. The employees themselves have no equity in the taxpayer portion of contributions that are given over to the pension funds, and is the property of the government fund – NOT THE EMPLOYEES!!!

According to the chart on page 234 of the California State CAFR, the contributions to these pension funds were as follows:

Total Contributions To All Pension Systems  – $18,723,324,000
Contributions from Employees (Members)    – $6,699,601,000
Contributions from Employers (Taxpayers) – $12,023,723,000

Remember that the so-called budget deficit that was quoted by the Governor for 2012 was only $15.7 billion, revised from $9.2 billion.

And yet here are the taxpayers being forced by law to contribute to this pension investment scheme with no benefit whatsoever to the non-state employed taxpayers.

This means that the 37,691,912 people who lived in California as of July 1, 2011 paid over $12 billion to support only State employees by allowing the California Government to give their taxpayer funded money to the pension fund system. This does not include federal, county, and local contributions of taxpayer money to those other pension systems.

(Page 83) – Schedule of Investments – Fiduciary Funds, as of June 30, 2011

    Investment Type                                   Fair Value      

Equity securities …………………………. $199,780,401,000
Debt securities* …………………………… $91,576,952,000
Mutual funds ……………………………… $10,200,315,000
Real estate …………………………………. $38,232,098,000
Inflation linked …………………………… $8,126,757,000
Insurance contracts ……………………… $1,591,300,000
Private equity …………………………….. $57,537,268,000
Securities lending collateral ………….. $45,620,619,000
Other………………………………………….. $3,822,956,000


Total investments ……………………. $456,488,666,000

But perhaps the hardest thing to contemplate about this Pension System scheme is this (Page 235)…

After all benefits were paid to the employees of these pension funds, the fund’s investment return grew by an astonishing $67,974,593,000 in one year, compared to the 2010 CAFR.

This means that while the governor of California is declaring a deficit over the entire state budget of $15 billion, the State’s pension fund investment schemes in total gained over $67 billion for the same year!

And the Governor says: (que evil laugh) Let’s cut taxpayer services or I’ll cut even MORE funding to schools!!!



“As of June 30, 2011, the primary government had long-term obligations totaling $163.9 billion. Of that amount, $5.8 billion is due within one year.”

So all it would take to get California out of debt would be $163,900,000,000 ???

That’s it?

You better believe it!!!

But there is one big problem… Government likes debt. Debt is profitable. And so government is in a continuous cycle of borrowing and bonding money… FROM ITSELF!!! One government or fund will loan to another. Government funds makes loans and creates corporate bonds to banks and corporations. The whole shell game is about creating and sustaining debt to ensure future taxation for more investment opportunities in the future. The thought of paying off all debt would be like asking pharmaceutical companies to develop a cure for disease… It ain’t going to happen!!! They’d be out of business if they cured the thing they treat the symptoms of… and so too would a majority government bureaucracy be redundant and unnecessary if government did not promote perpetual debt.

So let’s add up what we’ve found here today, and see if California could pay off its debt tomorrow and never have to issue a taxpayer bond ever again…

From the CAFR above, we had:








TOTAL IN AGENCY FUNDS = $18,444,563,000


TOTAL IN MAJOR GOVT FUNDS = $7,888,786,000

TOTAL IN PROPRIETARY FUNDS = $-2,806,744,000 (deficit)


Of this is listed as “Investments” = $55,000,000,000

INDEPENDENT SYSTEM OPERATOR (as of Feb, 2012) = $875,764,000

CEA – TOTAL AVAILABLE CAPITAL (after liabilities) = $3,753,367,495

BATA – TOTAL FUND BALANCES = $3,175,070,238



TOTAL FOR ALL INVESTMENT FUNDS = $577,315,060,000 (approx)


And so now you know… the Government is lying to you.

It promotes debt and hides assets.

This should not be construed as the only hidden wealth in the California State government… just the wealth we have uncovered today.

And you must understand that this is only the State government’s CAFR. Each County, city, district, and other local governments and pension funds have their own CAFR’s with their own funds and hidden wealth – hidden in plain sight. Totals for Los Angeles, San Francisco, and other counties and municipalities in California will, when combined together, dwarf the investment wealth of the State government alone.

They will tell you that some of these investments are restricted and not able to be used for taxpayer services. And as a taxpayer, that should really piss you off!

They will also tell you that laws are in place that don’t allow these funds to be transferred for other purposes other than what they are designated for. And yet Obama and State legislators continuously speak of raiding the pension funds for their own benefit. In their opinion, it’s government’s money after all, not the employees or the taxpayers. But of course it is the law-makers that are telling you this nonsense. Law-makers… Get it? They make the laws. They can break them too, or create better ones that would pay off all debt and significantly lower taxes and downsize government tomorrow.

But then, the people would actually have to force this to happen…

Are there any real people out there?

Sometimes I wonder…


For a deep explanation of the Pension Fund System, watch this:

Other websites for CAFR info:


–Clint Richardson (
–Friday, May 25, 2012

Non-Violence In A Violent World

To be non-violent in an extremely violent world – a square in a circular hole…

This concept has been eating at my brain as of late, as I watch with horror and dismay the brutality of police, the arrogant leveling of foreign infrastructures and people by military, and the promotion of these in the media.

And so I began to postulate whether peace is really achievable through the inaction of non-violent resistance. Is it possible to allow tyrants to literally get away with murder without consequences? Is it possible to have law and order as the protectorate of the people if the law is all but lawless? Can bonded corporate officers, police, and politicians be expected to act ethically, morally, and to assume responsibility for their own actions if they all work for a limited liability corporation that takes away that responsibility and protects their individual acts of moral and ethical corruptness?

I’ve prayed, meditated, thought, and role-played, and yet the answer never changed. The answer I kept receiving was no.

Perhaps the greatest fallacy being spread among the people is that the people must act within the law – the very law that protects the corporation from the people. A law system that exempts the law-makers from the crime and punishment of their own actions but not that of the people is not really the law, but instead is a dictate. U.S. CODE  is a declaration of power and intent that creates endless loopholes for the propagation of protection of organized crime through the misnomer of “government authority”.

In fact, the people now in government are best understood when they are compared to a 1st grade class of children with no teacher and no supervision – where each kid gets to write their own allowance check and all rules and laws are exempted when they are in the classroom. The parents aren’t even watching!

The best way to propagate crime is to take away any punishment for crime. Welcome to America…

We are told through media and through alternative media that non-violence is the only solution. And we are told the worst of fallacies – that if the people use violent resistance against our tyrants and dictators we will be doing exactly what “they” want – we will only be hurting ourselves.

Never mind that the very country we live in was created through violent overthrow.

And yet the very comprehension of this fallacy and what it truly means is no different than if a group of 50 pre-1840 plantation slaves were to say together that they must not harm their 3 slave-masters who whip, beat, and often kill their brothers and sisters right in front of their eyes – with no outside law or punishment. And so they stand there, with shovels, axes, and sickles in hand… watching the violence and doing nothing to stop it; knowing that it will happen to each and every one of them unless they stay slaves in every imaginable way.

Consent for violence in this society has been achieved through the popular conformity of its people, uniformity of its law, and exemptions for its makers.

History and law is generally written by the most successful of violent oppressors. At no point in history has non-violence created any real political change for the benefit of the people – unless you count regime change…

And then there is… literally, the cry of the oppressed: “But what about Gandhi?”

Give me a break! Government in India has not changed. The people are still “governed” against their will. And it is being “Americanized” like most others countries

Some refer to the “civil rights” movement for an example of a non-violent revolution. This is a lie. For civil rights were nothing more than legal code created for all “citizens” of a tyrannical government. Civil rights did nothing more than to force the uniform commercial equality of citizens (slaves as commodities). But equality of what…?

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.
To understand the profound degradation of God-given human rights that was created via the civil rights agenda, we must define the word “exaction”.


1. The act of exacting; extortion: the exactions of usury.
2. An amount or sum exacted.

–Random House Dictionary, © Random House, Inc. 2012


1. The act or instance of exacting, especially money
2. An excessive or harsh demand, especially for money; extortion
3. A sum or payment exacted

–Collins English Dictionary, Unabridged


And so that there is no doubt as to the intent of this word as it is used in U.S. CODE,


EXACTION, torts. A willful wrong done by an officer, or by one who, under color of his office, takes more fee or pay for his services than what the law allows. Between extortion and exaction there is this difference; that in the former case the officer extorts more than his due, when something is due to him; in the latter, he exacts what is not his due, when there is nothing due to him. Wishard; Co. Litt. 368.

–Bouvier’s Law Dictionary, 1856


And so, in parades of cheering masses, the once freedmen blacks of America rejoiced at their victory: of becoming finally and legally equal to the already enslaved white citizens. They became house slaves one and all as equal citizens to all whites and to themselves. They were now equally taxed and extorted from… and were equally put in legal pain and suffered equal punishment. And there was much rejoicing…

And enslaved they remain to this day, under duress, as equals to whites. Forced integration is seen as a victory of civil rights; and Affirmative Action is utilized by unscrupulous citizens to legally enforce equal employment opportunities, despite the complete inequality that this privilege exacts.

This fallacy of freedom – where civil rights were bestowed and true freedom was squashed under legal oppression – is a perfect example of the imposed and enforced non-violence upon the people by a tyrannical and ultra-violent government. The illusion of freedom and equality…

And all of the uniformly equal people say:

“I’m free because I can vote for my lawmakers in congress and my president.”

But having never actually voted on the law itself, the freedom to vote (if registered as a citizen with that bestowed privilege) is a mere fallacy, giving no rights to the people to actually vote for any of the laws that govern them.

Legalese is a real word – a foreign language. It represents a set of words that mimics the English language, but where every word we use in conversation every day has a much different legal definition that we take for granted…

For instance, We, the People, tirelessly and carelessly throw around the word freedom. But what does that word mean in Legalese?

FREEDOM, Liberty; the right to do what is not forbidden by law. Freedom does not preclude the idea of subjection to law; indeed, it presupposes the existence of some legislative provision, the observance of which insures freedom to us, by securing the like observance from others. 2 Har. Cond. L. R. 208.

FREEMAN. One who is in the enjoyment of the right to do whatever he pleases, not forbidden by law. One in the possession of the civil rights enjoyed by, the people generally. 1 Bouv. Inst. n. 164. See 6 Watts, 556:

FREEDMEN. The name formerly given by the Romans to those persons who had been released from a State of servitude (i.e. former slaves). Vide Liberti libertini.

–Bouvier’s Dictionary Of Law, 1856

Even this most cherished law dictionary tells us a nasty truth: that our government believes that freedom cannot exist without government. In fact, the legal definition of freedom is obedience to the laws of government!!! A freeman status does not mean a man is free. Nor does the term freedom define free men.

Whenever I hear a citizen say that he or she lives in a “free country”, I cringe at the ignorance of that statement as if it were nails on a chalkboard. The definition of free country is – legal (free) fiction (country). Country simply means the borders (jurisdiction) of government.

But with all of its illusions of freedom and equality, the civil rights movement did accomplish one very important thing with regards to the continuity of this tyrannical corporate government… non-violence.

This is not to say that violence did not continue to happen in individual cases, where people harmed other people. But the people’s ability for the organization of violence was oppressed – by a violent government. The people’s legal privilege to assemble was smashed without incorporation, which meant government control, or freedom to assemble if laws are followed. Of course, the law-makers would be the subjects of such assemblies, making the violent or even legal organization of the people impossible.

Even today, while activists and radio hosts talk about oppression, brutality, and a violent government completely out of control of the people – the people are afraid to say anything about fighting back “violently”. They disclaim their statements, books, and movies by promoting only non-violent resistance to violence or by calling it entertainment. The truth is that they are so afraid of government’s violent retaliation against them that they cower.

We are shown all of the violence that oppresses us, and are then told to react non-violently. This keeps the people in line, never fighting for their true freedom – not the legal kind, the God-given kind.

Case in point…

Guarantee! I want the police to listen. You are going to die, and your family is going to die. Do you understand? This elite is going to kill you. It’s official. It’s de-classified. I am going to die. My entire family is going to die. Your family, all of you, almost everyone, 9 out of 10 people listening, you are going to be killed by the government in the next 10 to 15 years.” –Alex Jones, immediately followed by commercials for survival products, food, water, and seed storage.

Of course, Alex Jones continuously promotes non-violence. We are all going to be killed… but we must remain pacifist in our defense of our very lives and in that of our children? Try as you may, there is no way that a logical and reasonable man or woman can justify this paradoxical conclusion and watch as the whole world is usurped by a few wealthy tyrants.

The cognitive dissonance that is created by men like Alex Jones, in this author’s opinion, is the true definition of controlled opposition. Problems with no solutions… Fighting violence with non-violence (i.e. machine guns with feathers)… The takeover/infiltration of most activist groups… The results of action replaced by the hope and consequence of inaction… This is the “War For Your Mind“.


They come to take our homes and give them to banks, but we tenants must leave peacefully and be without shelter while millions of homes sit bank-owned and unoccupied.

They come to take our children as state property through marriage contract, rape and molest them, place them in brothels and workhouses, but we parents must be non-violent.

Their police come to beat and electrocute us within inches of our lives, and sometimes take our lives, but we victimless criminals must watch it happen and be non-violent in response.

Their politicians and judges create legislation that allows them to act outside of the law, even as We, the People are told that we must act peacefully within it.

They place us in jail with no warrant and no cause, and place price-tags on our heads that are too steep to bail us out, and our families are expected to stay calm and be non-violent.

They force us to work in prison, paying slave-labor wages, selling our wares and trading us as human capital commodities on the stock market, and still we prisoners are expected to remain calm.

We watch as our military men and women destroy the infrastructure and cultures of other countries, killing men, women, and children, and we do nothing because we’re told that they fight, occupy, and kill for our right to be non-violent.

Our soldiers who aren’t killed come home, and we watch as the government denies them care, and we pass 200,000 of them homeless on the streets and bow our eyes in shame instead of fighting for their rights.

Government takes our property because eminent domain is our right under the 5th Amendment’s taking’s clause, and we allow them to do this to our neighbors, our friends, and our family because – that’s just the way it is… and we remain non-violent even when the Sheriff that we thought we elected to protect us from corruption forces us to leave our own homes so the government corporation can take them on behalf of the banks…

And with the look and the tone of cognitive dissonance, the sheriff says, “I’m just doing my job, ma’am”.

They tow our cars by force, steal and condemn our property by force, tax and fine us by force, collect our debts by force, and now place us in debtors prisons by force. Yet we still believe non-violence to be the answer even when government utilizes violence to enslave and steal from us.

They spray our skies and modify our weather, spreading cancerous and neurologically dangerous compounds, and we do nothing more than point to the sky and say “Look, it’s a conspiracy!” before we go about our busy non-violent day of shopping and reality shows.

We know they want World War III, and we know they are prepared to do anything and kill as many people as they need to attain their goals of crisis management called “war”, simply because they have been disclosing this fact in their numerous writings. And yet we remain non-violent even in the midst of preventing a hellish war.

Perhaps the worse part of this whole thing is that we actually support our military troops in their violent campaigns, our police in their fundraisers, our CIA and FBI in their drug and gun-running, and our IRS in their violent exaction’s of our lives and property. We support the violence utilized by these government agencies and private non-governmental associations for reasons unclear to me. We condemn our neighbors and even our own family members when the taxman commeth, and support government’s violence against our own kin.

Perhaps this is what Ben Franklin foreshadowed when he stated:

“They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.” –Memoirs of the Life and Writings of Benjamin Franklin

Sell not virtue to purchase wealth, nor Liberty to purchase power.”  –Poor Richard’s Almanack (1738)

Now, this is the point where I am supposed to make a disclaimer that the above writing is not for the purposes of promoting violence, and that I only promote peaceful non-violent and lawful acts.

Just thought I’d let you know…


–Clint Richardson (
–Tuesday, May 22, 2012

The Fallacy Of The Dollar Crash

I was just listening to an infomercial by a gentleman named Porter Stansberry, owner of an investment corporation, who makes claims that he “predicted” the bankruptcy of Fannie Mae, Freddie Mac, General Motors, Bear Stearn’s, and other major corporations, and that his clients who listened to his predictions made a nice return on their investments because of it. His infomercial, which is promoted on various popular alternative sites, speaks of the dollar as being the current world’s reserve currency and that because of such humongous debt, the United States dollar will inevitably crash, loosing this singular distinction.

Here is that website (which I do not promote):

Mr. Stansberry offers a solution to this so-called dollar crash.

What is that solution?


It is the same “solution” he previously suggested for the bankruptcy of the aforementioned corporations, having told his “clients” to short bet their investments in these corporations so as to make a profit from the inevitable collapse and devaluation of their stock, and of their takeover by government or other corporations (bailouts).

Note: this is what happened just days before 9/11 – short betting the airlines before a man-made disaster would knowingly and drastically lower the value of those airline’s stock.

So Mr. Stansberry is not so much offering a solution to the problem of corrupt corporations and the government that regulates and allows them to operate in such a way, but instead offers a way to use the most destructive and dangerous method in history (usury) to make money off of other money by participating in the corruption. In other words – to make a bet that one or more corporations and the dollar will fail, and make money from that failure. It is a mind-boggling comprehension that this method of wealth-building is even allowed by law (legal code), considering the historical aversion and destruction caused from usury to most all past “economies” in history, and of course the writings of all but one religious text that is absolutely opposed to and abhorrent of this usurious method of profit-banking.

Where does this investment return come from?

How can you bet against the success of a corporation, and somehow pull money from a decaying entity and its lowered stock value?

How do you suck blood from a turnip?

Of course, the answer is simply that every stock “trade” has two sides to the bet. One side will lose while the other side will gain. The stock market is nothing more than a legal casino for deceit and usury, designed to make those who promote usury a bucket-load of money. It certainly does not represent the actual value or reputation of a company. When you make a small stock investment, your “broker” or online trading company (for the do-it-yourself-ers out there) do not in any way care whether you win or lose on your particular transaction or trade. They make money regardless of its outcome, via commission on the transaction. Many will convince you (and many others) to buy or sell certain stocks so that the price will go up or down in the market, which will effect the “short” or “long” bets that major funds, corporations, and government institutional funds have made on that stock. A penny in either direction can be worth millions! And of course mutual funds, which control many individual people’s retirement investment capital, will buy and sell investment stock not to help their individual investors and retirees, but to ensure that these future bets are paid by manipulating the price of the stock with huge amounts of pooled fools money.

Is this strategy of Mr. Stansberry’s secret advice (that you must pay for) and why he made this infomercial?

I don’t have that answer. And I’m not here to pick on this man or call him names.

Frankly, I really don’t care.

The point of this writing is to try and make him and you see that this whole system is completely based on usury. No matter how sincere or profitable any of these financial schemes sound, they can only succeed on one side of the trade. In other words, someone must loose on the other side of your (or his company’s) trade. And chances are, it will be the little people; the working class, who loose. The money doesn’t just disappear when these stocks go down in value. It goes to the winner of the bet. And when millions of families lost their entire investment portfolios in the last two decades, due to the quite purposeful mini “economic collapses” that seem to rear their ugly heads every few cycles, that lost retirement money went into someone else’ pockets – and that someone else was in fact major banks and investment corporations… and more importantly, government institutional funds.

And here’s the kicker.

Porter Stansberry’s whole premise about this inevitable collapse of the U.S. dollar is based upon his often quoted “budgetary reports” from government. He even states that many local municipal corporations are completely in debt, bankrupt, and cannot recover from this situation, based on their “budget reports”.

By using this information, he is contributing to the media and government’s budget fallacy.

As I’ve been writing, speaking, and making movies about for the last two and a half years based on the governments required audit – the Comprehensive Annual Financial Reports (CAFR) – the budget report is nothing more than a convenient and incomplete accounting of the vast amounts of wealth and investments held by each of these Federal, local and state governments, per their investment trust and pension funds and State Treasurer’s commingled investment funds.

Anyone who has the proclaimed knowledge of the stock market as Mr. Stansberry so claims, must by default know that government institutional funds are the main shareholders of most all corporations in the world, not just in the United States. From China to Iraq to Mexico, government institutional funds – especially the world-wide pension system – is the owner of controlling stock in these corporations, hands down. And government is also a major investor in mutual and other private investment funds. For Mr. Stansberry to consistently refer to the budget reports of government without speaking to the CAFR and investment holdings reports of government, which show trillions of dollars in stock, real estate, foreign currency, and other liquid assets held by government, he is either ignorantly or purposefully misleading his potential “customers” into believing the biggest fallacy and Ponzi scheme in history – that the United States government is broke.

And of course these investment firms are trying to convince you that making the proper casino bets will hedge a dollar and economic collapse in the stock market.. And of course by investing in precious metals (which these firms no doubt bought at a very low price, as did anyone pushing gold and silver to make the price continue on a ridiculous price increase – to increase the value of their own holdings via increased demand) you will be able to make more money by shorting or long betting these stocks. This profit will come despite the whole premiss this scheme is based on – a complete and total economic and dollar collapse?

And this is somehow a good thing to support and take advantage of?

Well wait a minute… to see the return on these investments, you must sell these stocks for more dollars! Under this premise, if the dollar collapses and you are still living in America, what good will a bunch of dollars do from your short bets? And as for the gold and silver investments advised, what good will gold be if it is valued in dollars? The claim that gold will go up in value to $5,000 is nothing but a very popular and deceiving gimmick. With a theoretical collapsed dollar, $5,000 or $500,000 in gold valued in dollars will be all but worthless in dollars, since the dollar will be worthless.

And as for trading gold for goods and services – that is if you can hold on to your gold when the so-called collapse happens and the pre-predicted angry and hungry mobs come around and take everything you have by force, including your life – good luck getting from point A to point B and back to point A without getting robbed, getting your home robbed while you are gone, or even getting back home with your life and limbs attached.

This is not an attempt to get you to buy anything, for I have nothing to sell. I am simply trying to bring logic and reason into this ever more unrealistic theory of a collapse of the “system” and of the dollar. Please understand that the ridiculous comparison of the United States to small empires and governments like the Wiemar Republic and Argentina when considering a dollar crash is pure fear-mongering. They are not the same situations, and those countries did not police the world, have the world reserve currency, or possess the strongest and one of the most brutal military’s in the world to ensure the dollar’s authority. This is an appealing fallacy that just needs to go away.

The dollar has power throughout the world for one reason and one reason only. It is not, as Stansberry claims, because the United States can simply print more dollars anytime it sees fit, though this is certainly a nice benefit. This does not give the dollar one ounce of value, authority, or spending power in the United States or anywhere in the world. If this was the case, we could just combine all of our monopoly board games and use monopoly money for the world reserve currency. And if we ran out, Parker Brothers could just print more and the world would be saved!

No… the truth is that the dollar only has value because of one simple and quite disgusting truth.

What is that simple truth?

The dollar has value, authority, and spending power simply due to the fact that the United States military beats the shit out of anyone who doesn’t accept it, making it what is referred to as the “world reserve currency” – a pretty, politically correct way of saying what it really is: blood money. Libya is the latest victim, having separated from the international banking system and creating a virtual utopia in the desert. 40 cent gasoline using Libyan and only Libyan oil, which was nationalized and owned by the people. An aqueduct system without water rights belonging to the United Nations or other corporate interests – but again to the people – bringing the miracle of underground water reservoirs to the harsh desert surface. And truly attempting to house every Libyan before Gaddafi would house his own father.

And for this treason against the dollar and its ghost (the petrol-dollar), Libya, its economy, its leader, and its people have been dealt with and decimated.

Iraq, Afghanistan, Pakistan, Syria, Lebanon, Somalia… care to guess who owns the water and mineral rights for these victims of the U.S. military-backed dollar?

And rest assured, the military and the federally militarized municipal corporation (city) and state police will beat the shit out of and incarcerate you too if you dare try and make your own currency – at least one that is effective and competitive against the dollar or is non-taxable. It’s already happening all around you (see: “The Liberty Dollar”).

Hell, you can’t even collect rain water anymore in your own backyard in many areas of your own America.

So will the dollar crash, as reported by so many who have been selling their financial services for so many decades to new generations of the fearful and unintentionally usurious hoards of people just trying to stay above water?

Well… let’s think about this for moment.

The United States has been incrementally and covertly usurped by two of the most powerful entities ever created – the BAR Association and the banking institution cartels. The BAR has created a set of copyrighted legal rules that are specifically designed to obfuscate and confuse the typical American, while at the same time protect the artificial persons called corporations from the confused and manipulated people.

In an ideal fascist state, there are so many legal restrictions and codes that it is virtually impossible for the average person to not break the law every day of their lives. Welcome to America! This is an accurate description of the BAR and its case law (public opinion) when combined with U.S. Legal CODE – the prima facie (presumed consent) law that rules America and Americans.

Sadly, the people have been fooled quite succinctly that by taking the action of voting for an individual person to represent them in congress, that the people somehow have a say in government, and thus by default a say in what is composed and made into law (U.S. CODE) by these representatives of the people. This is referred to as “the voting process”. Some call it “democracy”. Of course, in reality the people only vote for the persons who will vote for them, called congressmen and senators – the popular name of these Federal employees being “representatives”. And with a passion unprecedented  in many other political outlets, the people demand the right to vote. But they don’t actually vote for anything but the people that will vote for them. It’s a sad spectacle costing taxpayers billions of dollars in advertising and publicly funded lobbying money per election, only to put into office the persons who will pass the laws that will rule and enslave the people even further, without the people ever casting a vote.

Lately, this process has whimsically been referred to as “Hope and Change”.

And the people eat it up – hook, line, and sinker.

The moral of the story is that the people aren’t voting for anything that happens in government, aside from the local and state initiatives on the ballot that are, inevitably, either changed later by state legislation or are struck down by – you guessed it – the BAR Association in the government contracted court system (the private corporation called the BAR is contracted by government to make and adjudicate the law). The reality is that the people have no vote for anything at all but the choice of who their slave-masters will be, and even that is decided on digital machines that have been proven over and over to be easily rigged in fixed elections.

So, with all of this in mind, the question still stands…

Will the dollar crash?

Let’s try to answer that question with a bit of reason and logic, in the form of another question:

If you were the government, or part of the holders of the puppet-strings that is government, and you have just incrementally over 100 years set up a total control and surveillance grid via banking and public debt, having the people so completely wrapped around your finger and completely dependent upon you for just about everything due to your destruction of any decent educational system, would you then let that power and control just fall into oblivion and loose that control, power, and wealth?

How about if you could write off that debt any time you wished because your military would lay waste to anyone who complained about a default?

A better question would be: What is wealth?

Answer: Not the dollar.

And this is the final answer to the question as to whether or not the dollar will crash:

Answer: It doesn’t matter, because the dollar isn’t wealth.

Oh boy, now I must prove this answer…

A dollar is simply an unfinished contract between two entities. The entity or person who held the dollar before trading (spending) it had nothing more than the debtor portion of a contract. Whomever traded that dollar to him or her in the first place was the holder of that debt before him, and so on. The current holder of that dollar has nothing but a piece of paper that represents the potential for wealth, and is eager to trade (spend) that dollar in order to obtain real wealth. He who is left holding the dollar if it devalues is just out of luck, since no one will trade wealth for a dollar.

What is real wealth?

Again, not the dollar. Real wealth is ownership of some thing, be it property or real estate, stock in a corporation (which represents ownership in that corporation), or other tangible or intrinsic assets that have a value to more than one person. A dollar is used as a contract to acquire that asset from the other entity or person. The dollar is nothing more than an unfulfilled portion of a contract, and must be traded elsewhere in order for it to be transformed into real wealth. The dollar’s contractual value is determined by the corporate persons that are appointed by the people you vote for (or don’t vote for) in government, via the treasury and the Federal Reserve, whom once again has the military industrial complex to back up what it says the trading value of the dollar is world-wide.

Now let’s take the government of the United States and ask the question:

Is the United States government wealthy?

Oh yes… indeed. It is wealthy beyond imagination. But not because it holds dollars. Again, the Comprehensive Annual Financial Report shows that government holds many trillions of  dollars worth of  everything but dollars – real estate, stock investments, all foreign currencies, banks, General Motors, and many many government owned corporations both national and international. One pension fund alone held over $1 billion dollars in just Chevron Corporation stock at market value, and there are thousands and thousands of these funds! The Social Security Fund is sitting at over 2.5 trillion dollars in investments.

But the government is not interested in holding the dollar… For the dollar is not wealth. Of course it has a few for petty cash!

Instead, the government prints money (in the digital realm, not on paper) with virtually no limitations (since it makes its own rules and laws), and continuously invests those digital dollars into real assets, stocks, real estate, investment funds, etc.

Of course, that money has to be paid back somehow, because those digital dollars represent a debt contract. And whoever is left holding that debt is out of luck, since the dollar (debt) is simply not wealth. So… it is important to understand what the so-called U.S. debt actually represents. What does it actually mean when the President or congress states that the national debt is over 10 trillion dollars?

You see, the government is a corporation. The people of the United States are the constitutors (debtors) of that corporation.

In short, the government (as a private corporation) is not in debt in any way whatsoever. It cannot really be in debt to itself now can it?


Because the people abide by the prima facie law created by their “representatives” who vote over and above what the people want, and have made damn sure that the people are contractually obligated to the dollars (debt) that is created by government.

What does this mean?

Step 1: The government creates the dollars.

Step 2: The government declares that the dollars represent the good faith and credit of the United States. (Note: that means that it represents the value of you and what you think is your property).

Step 3: The government spends the dollars in order to obtain real assets and investments.

Step 4: The government declares that due to the fact that it was voted upon by the people (the people’s representatives, actually) to create this money, either via the Executive Branch or the Legislative Branch for which the people voted for its members (Federal employees), the people are thus placed into debt to pay back the government the trillions of dollars that it created and spent or invested on behalf of the people. This is called nationalizing the debt.

In other words, the corporation (government) spends the people’s money but never has to pay the people back. Instead, it spends the peoples money, and then charges the people the same amount (plus interest) as debt for the privilege of it spending the people’s dollars. Now, imagine if I asked you to borrow money and then demanded that you pay me back the same amount of money plus interest (usury) – doubling your loss plus interest. What would you do? Would you bend over and take it? Would you work three jobs so that you can pay me back the money you loaned me plus interest? Would you go to jail (debtors prison) or give up your property to eminent domain and confiscation by the government (IRS) if I demanded that you pay me back the money that I owe you?

Well guess what folks? This is exactly what you are doing every single day of your American existence.

Every time you pay a tax, you are generating dollars for the government, which then turns those dollars into real wealth (assets) and charges you with the bill. Sometimes it even borrows the dollars from itself to build an asset for which it claims ownership of, and then nationalizes the debt of that self-induced loan to the people, collecting dividends on the interest that the people pay!

But that’s not all, folks…

For then, despite the fact that the people are still paying for the debt of the dollars it took for the government corporation to build that public asset (bridges, roads, buildings, etc.), it then sells that asset to private sector corporations for pennies on the dollar, and allows private sector corporations like Morgan Stanley to charge you the people such things as parking meter fees, parking garage and expressway fees, bridge tolls, and other profitable fees and collections for the infrastructure our fathers built with taxpayer money. And then the government uses that revenue generated by the sale of publicly funded infrastructure to buy or build even more public infrastructure, charging the debt to the people and retaining the asset (wealth), only to turn around later and sell the new asset for more dollars to build more infrastructure and accumulate more indebtedness for the people.

But the most important thing to understand is this:

These private sector corporations that are purchasing publicly funded wealth and then charging the public to use these services at the barrel of a gun, are only allowed to do so because government is the main shareholder of those public sector corporations. The government will get incentives, dividends, and returns on stock investments from the sale of public infrastructure, with the added bonus of being the main shareholder, thus having proxy shareholder voting rights which allow the government to pick and choose who the board of directors for each of its stock investment held corporations will be. The government appointed board then appoints the CEO, and is directed to bid on public infrastructure. Of course, the government then eliminates monopoly, anti-trust, and other protective regulations so that Morgan Stanley can charge as much as it wants for those parking meters it now owns. And government still gets to be in charge of the assets to ensure these corporations earn back their investment, a return that benefits both government and its investment held company.

And naturally this explains the advent of the Public Private Partnership…

And of the no-bid contract.

So, if you were this corporation posing as the United States government, would you allow the whole thing to just suddenly crash? Would you cease to double-tap the population for every dollar you spend while acquiring massive amounts of real wealth at their expense?

Would you?



You might, however, transfer the whole thing over to an international conglomerate body under the guise of a global society (which you conquered via the forced use of the dollar as the world currency). And you might even replace the national dollar with an international one. Heck, you might even back that new dollar with gold, since you are the holder of 90% of the worlds gold, only to later crash the artificial price of gold and start the whole process over again. You might even crash the international dollar. After all, what if aliens invade? It will have to be a intergalactic currency then, eh? But I digress…

So would it matter if the dollar crashed?


Government only uses dollars to acquire real wealth. And rest assured that if government were to purposefully crash the dollar (it certainly wouldn’t be by accident, silly rabbit) the government would still be holding all of the wealth that it has purchased and sold through its corporate investments by using the dollar as a tool to acquire wealth and create public debt and dependance, including complete control of just about every corporation on earth – and of course the very land and home that you foolishly call your “private property”.

The only thing that would be missing would be those little paper and digital dollars, of which the government wouldn’t be holding a single one. Only the people would have the dollars (debt). The people would hold the unfunded part of the contract called the dollar. And the government would simply call upon its international banks (for which it holds controlling stock investment) and pretend to beg and plead for them to make a massive loan to the American Government on behalf of the people. And of course, the people – not the government – would be responsible for paying back that loan to the government stock investment held bank.

I submit that there is no possibility that the dollar can crash.

It can be devalued.

It can be replaced.

But the thing that the “dollar” truly represents, no matter what replaces it – the debt of the people to the government – will never crash and burn. The people of the world will always be enslaved to the currency that has the strongest military backing.

And so I ask of you, Mr. Stansberry – you who supposedly wishes to help people survive the coming economic and dollar “crash” – I ask of you and every other entity and corporation out there profiting from fear and usury, to stop promoting usury as a solution to usury. Be part of a revolution to dethrone the profit driven system instead of promoting it in such a deceitful way. Starve the system instead of funding its feeding time. Be a hero, not a villain.

For if your scenario is correct, sir, the hoards of poverty and hunger stricken people of tomorrow that your winning system has taken advantage of today will be knocking down the doors of your wealthy castle unless you help to feed and cloth them today. Shouldn’t that be what you should be selling?

Stop promoting usury!


Note to the reader: You have two paths to choose from at this point. Watch the infomercial and profit from the pain and destitution of others, or walk the righteous path and follow the teachings of the profits – help, feed, and teach those who need help, food, and education. For you cannot be wealthy in this system without many others somewhere else living in abject poverty to support your wealth. One path has a happy and long-lived story, the other will surely end in the destruction of us all. The choice is yours…

And Porter, I’d be glad to debate the topic publicly. I’m just a high school educated college dropout after all. Just let me know…

Sources for CAFR info:


P.S. Still looking for a job… anyone hiring that isn’t corrupt?


— Clint Richardson (
— Tuesday, March 20, 2012

CAFR School: The Public Reading Of The CAFR

In this dramatically droll and boring school board meeting, the school district’s board is visited by its chosen and contracted auditing firm, for which a representative of that firm monotonously explains to the board the Comprehensive Annual Financial Report (CAFR) that it has completed for the district. I am posting this recorded school board video recording not for your viewing enjoyment, but for proof positive that all school boards and other local, district, county, and state governments are fully aware of and must acquiesce and approve their CAFR reports in a board or council meeting. Do not ever let any government tell you that they do not know what the CAFR is. They are lying. They may not be able to read it, but they know it exists and know they aren’t supposed to know what it really says! Ignorance is no excuse for malfeasance…

CAFR discussion begins at 2:23 in this video:

Let there be no doubt about this standard government accounting practice.


–Clint Richardson (
–Tuesday, February 21, 2012