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…”

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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!

Why?

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

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

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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 –>http://www.usatoday.com/money/markets/us/2004-08-10-calpers-portfolio_x.htm)

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.

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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 –> http://www.calpers.ca.gov/index.jsp?bc=/about/press/pr-2012/july/preliminary-returns.xml

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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).

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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?

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–Clint Richardson (realitybloger.wordpress.com)
–Saturday, July 21, 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!

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The Problem With Pensioners

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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.

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Where Are My Pension Contributions Invested?

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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:

Link–> http://www.calpers.ca.gov/eip-docs/about/pubs/annual-investment-report-2011.pdf

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:

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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) =
$578,066,047

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

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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:

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(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

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(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%!!!)

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(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

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(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.)

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(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

CARLYLE…………………………………………………
$22,892,350…………$55,040,942

CARLYLE ASIA PARTNERS GP II……………..
$123,783,417…………$127,894,756

CARLYLE ASIA PARTNERS III…………………
$140,997,939…………$149,682,813

CARLYLE ASIA PARTNERS LP…………………
$33,716,341……………$72,661,556

CARLYLE EUROPE PARTNERS II…………….
$33,781,818…………..$49,114,244

CARLYLE EUROPE PARTNERS III LP………
$275,068,958………..$269,585,374

CARLYLE GLB FIN SERV PARTNERS……….
$98,610,047………….$112,930,518

CARLYLE JAPAN INTL PARTNERS II……….
$111,350,716………….$101,874,064

CARLYLE JAPAN PARTNERS LP………………
$17,898,023………….$8,194,635

CARLYLE MANOR CARE………………………….
$13,128,107…………..$16,645,859

CARLYLE MEXICO PARTNERS………………..
$11,603,147……………$12,604,035

CARLYLE PARTNERS II LP………………………
$3 ,803,945…………..$7 ,150,317

CARLYLE PARTNERS III LP…………………….
$39,530,330…………..$20,698,248

CARLYLE PARTNERS IV, L.P……………………
$225,810,782…………$288,443,791

CARLYLE PARTNERS KINDER MORGAN…
$29,477,075…………..$68,215,645

CARLYLE PARTNERS V……………………………
$451,370,251………….$528,018,454

CARLYLE/RIVER RENE+ALT ENGY II …….
$140,853,360…………$163,748,816

CARLYLE/RIVERSTONE GLB E+P IV……….
$309,206,623………..$444,256,236

CARLYLE/RIVERSTONE GLOBAL……………
$195,614,177…………..$299,501,436

 “Alternative Investment Management Distressed Securities”

CARLYLE STRATEGIC PARTNERS…………..
$23,175,881…………….$34,972,657

CARLYLE STRATEGIC PARTNERS II ………
$58,002,997……………$79,704,250

CARLYLE/CALPERS CLO………………………..
$99,669…………………..$1,443,533

 “Alternative Investment Management Expansion Capital”

CARLYLE ASIA GROWTH PRTNRS IV……..
$40,863,278……………$48,175,768

CARLYLE ASIA GROWTH PRTNS III……….
$67,338,852…………….$67,445,066

CARLYLE GROUP……………………………………
$175,000,000………….$436,100,000

CARLYLE RIVERSTONE BRAZIL……………..
$17,362,588…………….$2,462,850

CARLYLE VENTURE PARTNERS III…………
$56,071,943…………….$64,646,861

CARLYLE/RIVERSTONEENERGYFDI,LP…
$54,262,246…………….$27,063,846

“Alternative Investment Management Special Situation”

CARLYLE EUROPE REALTY PARTNERS….
$11,107,976………………$7,178,856

CARLYLE REALTY III LP…………………………
$13,542,519………………$15,689,426

“Alternative Investment Management Venture Capital”

CARLYLE ASIA II LP……………………………….
$21,797,371……………….$2,737,812

CARLYLE EUROPE TECH PTNRS II………..
$57,274,489………………$50,288,690

CARLYLE VENTURE PRTNRS II LP…………
$40,025,303……………..$13,678,335

“Inflationary-Linked Assets”

CARLYLE INFRASTRUCTURE PARTNER..
$5,911,590…………………$51,033,705

——————————————————————————————————

TOTAL  BOOK VALUE OF INVESTMENTS IN
“CARLYLE GROUP” COMPANIES:
$2,920,334,108

TOTAL MARKET VALUE OF INVESTMENTS IN
“CARLYLE GROUP” COMPANIES:
$3,698,892,394

——————————————————————————————————

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

THE HERTZ CORPORATION (Corporate Bonds) -

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 (realitybloger.wordpress.com)
–Tuesday, July 10th, 2012

Walter Burien: The Only Game In Town


Thankfully, my esteemed mentor, teacher, and friend has released his documentary free for public consumption.

He asks to only link the video, not copy, as the DVD will be for sale soon.

Please support him if you can at his website:

CAFR1.COM

.

–Clint Richardson (realitybloger.wordpress.com)
–October 1, 2011

Conspiracy Theory – A State Of Mind


There is a truth so simple, so obvious, and yet so elusive to those who seek it. It is hidden in plain sight. And it it is verifiable if you can walk a straight line without getting sidetracked by conspiracies. This is not to say that conspiracies aren’t happening all around you. On the contrary, this simple truth I speak of actually verifies these plans between two or more people (the definition of conspiracy).

Now, the hardest part about seeing this simple truth is in fact these 100′s of conspiracies that redirect your conscious thought. Yet subconsciously, the truth sits there and waits for logic and reason to pull you towards it. For, like a grove of aspens, all of these “plans between two or more people” are connected and supported by one central root system, and are dependent on this truth for their secrecy and continuity.

So what is this truth… this central root system?

As we seek the source of these conspiracies, we get distracted by the very conspiracies themselves and by the players involved. And I am by no means immune from this never-ending, reproducing fork in the road. We feel that this truth is constantly in front of us, but these conspiracies keep diverging our focus, and our path forks once again. Our frustration mounts, and we either fall by the wayside or keep trudging through.

When we sufficiently uncover the evidence of one plan, deciding that there is still a higher cabal that is guiding the hand of the perpetrators of that plan, certain shock jocks and even other sincere truth-seekers throw us three more conspiracies, often not even realizing that they are doing nothing more than obfuscating the truth, and creating another fork. But for some, this is an intentional effort.

Then someone like Walter Burien comes along and says, “Here it is… here is the truth that you seek”.

But we ask, “Yeah, but what about the Rothschilds?”

And Walter simply says, “Don’t look right, look straight ahead to the source.”

But we ask, “Yeah, but what about chemtrails?”

And again, Walter states, “Don’t look up, don’t get sidetracked, look straight ahead.  Who funds these weather experiments? Look at the source.”

And as we walk for a few steps on that path, we yet again diverge and ask, “Oh, look over here… what about the Federal Reserve?”

And as Walter smiles with a mix of empathy and frustration, he simply says, “No. Don’t look backwards, look straight ahead at the source.”

But the conspiracies flow like fireflies, distracting us from that path. And we say, “Oh my, what about fluoride in the water supply?”

And once again, Walter says, “Don’t look down either. You cannot change this without looking at who funds and allows this to happen. Will you please look straight ahead at the source.”

And we do, and we know who is responsible, and we know who funds this poison in our water with our own taxpayer dollars. But still we get distracted from this simple truth.

And so we say, “Ah… but what about Bilderberg, Bohemian Grove, the CFR, and the Tri-Lateral Commission? Alex Jones says…”

And Walter in anger says, “Why aren’t you listening? Why aren’t you comprehending? Don’t look left, for that is where you are being fooled into looking. These things are just part of the source. Look at the source. It is straight ahead. Follow the path.”

And then every once in a while, not too often, but every once in a blue moon, someone gets it. They still may stray off the path every once in a while, but once the source is comprehended, all other paths eventually lead to the source. It becomes impossible not to see down the straight path, no matter how many curves and side roads we take.

So again, what is this truth? What is the source.

Well, let’s face it. Nothing happens in this country without some branch of the government knowing, approving, and regulating that thing. No conspiracy happens without government and its spy agencies being a part of it, or at least profiting from it. And no person, corporation, or business can operate within this country without the government knowing about it. Since all corporations are indeed government entities, taking direction from and following the rules of the government, no corporation is above government. This includes the banks, the Federal Reserve, investment companies, and the rest. And they all follow the Federal Law that states that all corporations must file a Comprehensive Annual Financial Report (CAFR), including the banks, the Federal Reserve, and the rest. There are no exceptions.

If a hybrid bank such as the Federal Reserve was above the government, or above the law, they certainly would not hand in a complete audit of themselves every year to the government, now would they? No. They are incorporated within the United States and under the government. They operate within the laws set by government. They are granted the favor of extreme power over the economy. But this is not total power, for they and their assets can be immediately seized at any time by the government. They are but pathetic, dangerous, but fragile men in expensive suits. They are not powerful without the consent of the people through their consent of the government. This is the truth.

Who sprays these chemtrails? Well, these planes would not be allowed to fly over U.S. airspace without government permission, right? Therefore the truth is that the government not only allows this spraying of our skies, but funds and benefits from this strangest of conspiracies. Simple logical deduction. No other theory is needed, only the knowledge of who these planes must get permission from to fly over U.S. airspace. This is the path of knowledge that can only be obtained by focusing straight ahead. Sure, look into the chemtrail theory, but don’t get sidetracked from the truth. This has to be a government or government approved operation. There is no other option.

Ok, let’s take the Rothschild family. So what. What are you going to do about them? They have oodles of money and investments. So what. One is a Senator. Ok. They own banks. Good for them. Those banks operate within the United States with government permission, under Federal charter or law. The Rothschilds’ are not above the government. Now, they may have their Zionist agents seated deep within our government, and indeed we see not only a fervent support for Israel, but a multitude of duel-Israeli citizens being appointed into that Federal Government. But government is still in charge, and it still runs the show. It is the people in that government that are the problem. They do not represent the people. And everything that happens and all of the conspiracies that take place must happen with government approval.

Yes, yes… there is fluoride in the water. Yes, it is a main ingredient in rat poison. Yes, it is the by-product of the aluminum industry. It calcifies the pineal gland of the brain. And yes, it has a calming effect on the people who ingest it, which is the only reason I can think of to explain why people aren’t charging Washington D.C. in droves, with pitchforks and guns and ropes… and Tazors! But the simple truth is that government must approve its use. It funds and owns stock investment in the companies that produce it. Government approves the dumping of this toxic waste into the water supply to save on the costs of properly disposing of this substance, thus improving its majority stock share value. Simple. Logical. No theory needed.

What is Bohemian Grove? It is where government goes to relax. What is the Council On Foreign Relations? It is a think tank funded by government. What is the Tri-Lateral Commission? A government entity. What is the Bilderberg Group? An obscure think-tank meeting of global government. And since it sometimes meets in the United States, and since the U.S. government officials who attend this meeting against multiple Federal laws are not punished for their actions, one must concede to the truth. Government is in control of these officials, and allows them to attend.

I was on this switchback trail for a number of years, turning over one conspiracy only to reveal three more, and never comprehending this simple truth, until fortune or fate brought me to cross paths with Walter Burien.

Now, the truth is clear. I can look at the Comprehensive Annual Financial Report (CAFR) and see the vast stock investments, real estate investments, hedge funds of currency from every nation in the world, gold holdings and gold certificates, Special Drawing Rights, and junk backed securities and derivatives. I can see that government owns it all, through stock investment. I can see that through stock investment, government owns the Fortune 500 and other corporations for which it also regulates.

And so here is the truth…

The government as it stands today is in a complete and utter conflict of interest.

Simple. Logical. Provable by the CAFR.

A body which regulates, deregulates, sets the laws for, polices, audits, and then also owns the controlling interest in the corporate business world it is supposed to impartially oversee, is the biggest conflict of interest in the history of such conflicts.

So, the next time you get distracted from the straight path, from the true nature of government ownership and control of every facet of America and the world, just think of the CAFR. And remember that nothing happens in this country without government approval.

If you want to fix the nation and solve most of the worlds problems… replace government and elect non-corporate poor people in jeans and a tee-shirt, with no assets, no stock investments, or any other interest except in that of the people.

Follow the straight path. Go to the source.

Kill the conflict of interest. Save the world!

.

–Clint Richardson (realitybloger.wordpress.com)

Sunday, April 3rd, 2011

The Government Casino


I used to deal blackjack in South Lake Tahoe. It was a good job – good benefits, really good tips, and I got to live in the beautiful and clean mountains of Tahoe. But as with everything else in life, once the initial excitement of a new job is absorbed, and the realization of the reality of what it is you are actually doing in your job and how it either benefits or harms the people who are your customers, the whole thing falls apart.

I learned many things in that job… not the least of which was the application of statistics and the law of averages and odds to take advantage of the average person who likes to gamble (sheep without a clue). And unfortunately, I learned that most businesses out there that deal with the making of money by usury, gambling, and investments are indeed a cancer on humanity, and are slowly destroying the fabric of our freedom and replacing it with destitution and debt.

On that note… I’d like to compare our corporate government and the stock markets to a casino, and see if there is any distinguishable difference between the two…

I’d like to mention this one thing before I start, since I think it is relevant to this comparison. The feeling I used to get when i walked into a casino and layed my money on the table – the anxiety of risk mixed with the illogical emotional orgasm at the prospects of winning a fortune  – was the same feeling I used to get when I would buy shares in a stock from a company that really, in hind sight, I knew nothing about. Gambling is gambling, whether you call it investing or insist is is just a game.

First of all, as we enter into the casino, we have to exchange our money for chips. Similar to buying a piece of paper (called a stock certificate) representing the purchasing of a stock, the casino sells chips in exchange for your hard earned cash, and without hesitation I might add, considering the prospects of you actually building wealth from those chips. So in essence, the casino sells you a worthless clay or plastic chip that represents the value of the money you exchanged for it, knowing that the only place you can spend that chip (in-house money) is in their casino. As with a stock certificate, the chip is simply a tool used for gambling – a talisman which mimics wealth but is actually worthless paper, clay, or plastic that can be traded and bet for other similar but worthless talismans.

The only way that chip has any value is if you cash it back in for its monetary equivalent. The same goes for a stock certificate. If a stock goes down in value, or your chips become less than what you started with, your losses are only realized when you actually cash these objects in for their current value. So, the only way you lose money on your gambling (investment) is to cash in your talisman after it has lost value. Of course no one wants to do that, and so most of us will hold on to the chips or papers that represent our money, and watch it slowly dwindle due to forces that are mostly outside of our control, or from an addiction to this obsurd excitement we get from the thought of our luck turning around and still reaping huge rewards.

But if that casino goes out of business or declares bankruptcy, and you are still holding that chip or piece of paper, the casino or company that these talismans represent have no obligation to pay you the value on their face. In this way, their value is best defined as “conditionally” worthless – the condition being that you aren’t educated or knowledgeable enough about how the casino or the company and the market it trades through works to know when the right time to trade them back in will be.

And we must remember that when we loose a chip to a hot dealer or we lose a dollar on a bad stock pick, that dollar doesn’t just get lost and disappear off of the market and out of the monetary system, and instead it goes into someone elese’s account. The stock gets lower in value, and someone behind the scenes gets richer. One dollar lost by you is another dollar gained by someone else. And by someone else I generally mean the government, it’s investment owned corporations, and the wealthy elite – who became wealthy by manipulating the markets into making you lose your wealth in thier shell game they call “the stock market”.

Now, the casino goes out of its way to entertain, wine, and dine you so that you will come back for more. It makes sure that there are no clocks or windows for you to see outside, so that the comprehension of time and of day and night are virtually non-existent. It places flashy lights, clever advertising, winning bells, and half naked cocktail waitresses all around you to add to your distraction. It pumps specific mood altering vibrational sound and music at low levels to keep you docile and in a trance-like state for the duration of your stay. And it has complete control over the odds, knowing that it will always come out financially ahead over most of its gamblers in the long run.

Does this sound like the government and the stock market to you? Let’s see…

The government owned television networks keep you entertained and give you reality shows and “to-be-continued” sitcoms so that you will continuously come back for more. The television holds you in a trance-like flash induced state as it pumps specific mood enhancing and mind-altering programing and sound into your living room. It bombards you with flashing lights and advertising. The news and financial “entertainment” shows give you false information about stocks and what is a good investment, similar to the mth propegated by casinos about your odds of winning against them. Billboards, radio, and other media outlets purposefully expose you to more than 3000 distracting advertisements a day, wherever you go. Sex is the weapon of choice in this advertising, and you are sold purely nonsexual products like milk and coffee by beautiful and scantily clad male and female models and Hollywood stars. And the very products and services that are being sold to you, completely distract you from what is really happening…

What is happening?

You are trading in your money for worthless stuff you don’t need and gambling the rest of your money away investing in the stocks that the government and its investment owned corporations have complete control over (the odds are fixed!). The market is manipulated on a constant basis, completely controlled by the people in power. Think of it this way… if all Fortune 500 companies are collectively owned through government investments by the over 174,000 individual governments around the United States (collectively as one conglomerate individual government body – The U.S. government corporation) then it is natural and logical to assume that the value of these corporations on the open market are also in the control of the government who owns and reinvests in their majority shares as well as the monetary system that they thrive in. The price of Haliburton stock, for instance, goes up when the government “invests” in the destruction of the once beautiful country of Iraq. Nation building and re-building is huge business. And market shares soar when that corporations services are sudenly needed to rebuild the nation that our corporate government decides to destroy, and awards outragous no bid contracts to its own investment-owned company.

Translation: nothing happens randomly in the stock market, and corporations rise and fall (and are repurchased for pennies and conglomerated) at the whim of our corporate government!

OK, back to the casino…

The games that are provided for us to play in the casinos are specifically invented to assure that the odds are always in the favor of the house (the casino). The illusion and legends of being able to beat the casino are propagated to the extreme to the general public, while the men who have lost small fortunes – and in the process their businesses, homes, families, and lives – go unmentioned. (And yes, I saw small fortunes go through my hands as a dealer, enough to feed a small country. And I couldn’t believe it when cutomers were still in the same seat 24 hours later with a slumped over, dazed, exhausted look on thier faces… and yet still the glimmer of hope in thier eyes.)

And as soon as the money dries up, the casino perks, free rooms, food, and entertainment dry up as well.

Comparatively, once the sheep-like American investors lose thier savings and investment wealth in the stock market, thier perks dry up as well. Many end up homeless on the street, broke and hungary, while the money they lost is reinvested back into the governments crime syndiccate called the UNITED STATES.

What are the chances of winning at blackjack?

The “odds” that everyone seems to cling to as they sit on the losing side of the table go something like this: the house has a slight advantage (about 54% chance of winning). But these odds are in reality based on a computer model simulating randomly generated blackjack hands, where a computer player and a computer dealer play the same way by a specific set of rules in a perfect uninterupted simulation for millions of hands. Strangely, these are the odds by which most players play the game. But these odds change dramatically when other variables are included into the equation. For instance, new players don’t know the rules, and therefore will play differently than the computer model and the experienced gamblers. This of course changes the odds, as more or less cards are played in each individual hand. Interestingly, the new players often win on thier first blackjack session, simply because they don’t follow a specific set of rules. They think about thier options, and make amatur but somewhat educated guesses. And when they don’t follow the advice of the other players, they often come out ahead. Amusingly, this is refered to as beginers luck!

As for the “experienced” players, they quite easily fit into Einstein’s definition of insanity, which states:

“Insanity = doing the same thing over and over again and expecting different results.”

And the look of frustration and anger on thier faces as they blame the dealer and the new player at the table is a good indication that this is a true description. Loosing is never the gambler’s fault, just as alcoholics and smokers could quit… if they thought they had a problem, and if they wanted to!

But the actual “odds” at wining at blackjack are all over the spectrem of opinion and hope. And the word winning must also be defined here. The odds at “winning” one hand are different than winning five hands, which are different than winning ten. The average player plays tens or hundreds of hands in a single trip, and thousands of hands in his lifetime. So winning on one gambling trip doesn’t mean that person is ahead on their life totals. But I guarentee that the last remodel or expansion on your favorite casino was instituted with part of yours and others total losses!

According to Ion Saliu’s Paradox: random generation does not generate all possible combination’s, as the odds that a hand will repeat before all possible hands are dealt are a sure thing. So, to consider the odds, random generation is not an accurate source. If there are 334,490,044 total possible complete hands in blackjack, and we randomly generate 334,490,044 hands, the statistics show that approximately 63% will be unique and 37% will be repeats. (http://saliu.com/blackjack.html)

And the point is… if you can show me a person (besides Rain Man) who can sit down and play that many hands, with no outside influences, with no burned cards, with no change of dealers or bathroom breaks, with no dealer mistakes, and with no sleep… then I will except the odds you come up with.

In other words, whenever you hear someone quote the odds and tell you the right way to play blackjack, they are talking out of their butt – which is where you should tell them to stick their advice! Likewise, if you take advice from a stock broker (who makes money from your wins and your losses regardless) or from the government (who’s investment owned corporations are on the other side of your trade, and who wins your losses) you are a fool, and are playing into the trap of legalized embezzlement through stock market gambling.

In much the same way that you have no way of knowing which card will come out of the blackjack deck next (52 cards means about a 1:52 chance of guessing, or 1:13 on its numerical value), you have no way of knowing what planned or seemingly random events will come out of the world economy that will effect the price index and value of your stock investment. And you have no way of knowing the plans of the elitist money changers (bankers) who control these events and can crash the market at any time through planned events like 9/11 – when unprecidented short positions were put on airline stocks just days before the event (which destroyed the values of airline stocks). The very fact that shorts, derivatives, and other hedges and gambling bets are allowed to be made on stocks should be a huge red flag for who controls and influences the markets.

A “short” is simply placing a bet that a stock will, in a certain amount of time, go down in value. Who in their right mind would want to make a bet like this, without some inside information to support the bet? I see this as no different than being best friends with Don King, and taking his advice on which boxer to bet on as a K.O. in the third round!

So why would you, as a simple working man or woman with none of this foreknowledge, gamble on these things called stocks? Probably the same reason that despite the fact that the odds are totally against you, you willingly and hopefully lay your money down in that little circle on the blackjack table, so that a dealer like I used to be can snatch it up with a look of false surprise, disappointment, empathy and remorse.

The last aspect of this conundrum is this: while you may set your loss limit at $1000 for your gambling trip, the casino has no such limits. It has more money in its coffers than most local banks have in their vaults. Actually, casinos are banks… complete with their own vaults, the highest of high-tec security, and armed guards that collect the money from each table’s drop-box two or three times a day. They even make loans, called markers, to high profile club members whose financial information is on account with the casino. And you must understand that with an unlimited money supply and the odds completely in their favor, the casino is always going to win.

Likewise the government, with it’s unlimited amounts of money – hidden in these investments – has no limit to what it can accomplish to ensure that the odds are in its favor, and that you are distracted through entertainment, and unenlightened by purposefully creating one of the worst education systems in the world. Remember, they can create money anytime they want to. You cannot. The odds are that eventually you will lose enough of your wealth by gambling it in their fixed system (the casino-like stock market) to eliminate any threat you might impose by your insignifigant wealth.

Oh, you’re a millionaire, you say? Well the government has many multiple trillions. A trillion is a million-million. So the government is a millionaire of a whole differant sort. Get over yourself, and fast!

And for the final nail in the coffin…?

If you do somehow get ahead and make a scene, the casino (government) can send in the cleaner – the dealer who can stack the deck and deal from the bottom of it. In other words, the odds we have talked about in this essay are not real, for they are manipulatable just like everything else. And they will never be manipulated in your favor unless you are being set up for a big loss later.

The moral of this story is simply this: invest your money in your home, in your family, and in your community. Charity is now a lost concept, and the thought of giving freely without anything in return has been killed by corporate greed and usury. Imagine if you will, actually giving instead of investing, without a tax write-off or of any expectations of repayment with gains or interest. Imagine building a church, a school, or a public meeting house without gaining anything but the admiration and love of the people around you, and in seeing the benefit it gives to them, and in turn to you. Imagine buying land and putting it into a trust that ensures that it will be in the peoples control and use, and never usurped by government and its corporate interests, and for the next thousand years seeing that community come together and use that land for a community garden to feed everyone in the area.

Reinvestment into the people and communities is the only way to fix what damage has been done to our once great country.

And seperation of the community churches and real charities from corporate interests, ownership, and control is a necesary step in this process.

The power is in the people, despite where the money lies. But only if we use our power and declare this corporation we call our government unlawful, unconstitutional, and downright evil.

And, in one last plea for sanity, if I may be so bold… The only solution I have seen brought forward by any of us to change the country and the world in a complete and lawful way is through Walter Burien’s “Tax Retirement Fund” (TRF). We can talk and anylize and discuss till we are blue in the face, but until this mans efforts are supported, and until Mr. Burien gets some charity of his own by true patriots who stop reveling in the usury and gambling in the corrupt and hopeless markets and banking and profitting from these thieves in government, instead of giving freely and annonomysly, without expectation or financial attachment to men like Walter Burien, our world will just go deeper and deeper into this endless spiral of depression and pestulence through corporate government’s takeover of the world markets and of our very lives.

Go to: taxretirement.com – and – cafr1.com to learn more.

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Clint Richardson (realitybloger.wordpress.com)
Monday, March 8, 2010

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