Unmasking The CAFR Scam In Every City, USA


As more and more cities, counties, districts, and states across America falsely declare their near- insolubility, bankruptcy warnings, fiscal deficits, and budgetary quandaries, I am left with the sinking feeling that “the people” just can’t wrap their heads around how to point out these misleading and downright fallacious claims made by their councils, mayors, and professional con-men in places of public trust.

And personally, I’m tired of watching…

So today I want to share with you a simple way to factually stand before your local or state political “leaders” and give indisputable proof that, when stating the “facts” about their own budget shortfalls, limited choices, and necessary raising of your hard-earned monies as taxation (revenue) to “balance the budget”, your own little criminal syndicate of elected mayors and council men and women are lying bold-faced to the entire citizenry through the act of subterfuge and omission.

This little factoid is uniform throughout the entirety of the financial structure of government, as reported in the audited Comprehensive Annual Financial Report and required by Federal and State laws. It is always reported in the same fashion and under the same heading as all other governments (municipal corporations). The figures are not disputable. The truth is unshakable. And yet the doublespeak will never end… For even as you present this one simple line item to the scoundrels themselves behind their raised and protective pedestals, they will still attempt to deny what is undeniable, be it in ignorance or in deceit; usually a mix of both.

So, here it is… a tool for all people to easily use:

Step 1:

First of all, you must find your city/county/district/or state CAFR, which can sometimes be challenging in and of itself.

A search on your favorite search engine of “Your City” “Comprehensive Annual Financial Report” “Year” will generally do the trick. You may need to add the state after the city, or you may need to go to your government’s website to find these CAFR’s. If they are not to be found online, then your government is required to hand over a hard-copy or digital copy to you upon request. It’s the law, folks!

Now that you have the CAFR in front of you, you are probably overwhelmed with all of the nonsensical figures, financial wizardry, and creative accounting that is presented in over 100 pages of a pure accounting nightmare.

But don’t worry, you can ignore all that. For our purposes, we are only concerned with one single page of this entire report. And this page is specifically listed in the index as  the “STATEMENT OF NET ASSETS“. This page is generally in the first 10-30 pages of the CAFR report, and will always be listed in the index.

For the purposes of this lesson, here is an example CAFR from the City of Pacifica, Ca.I found this with a search parameter of “Pacifica Comprehensive Annual Financial Report 2011”, and clicked on the 5th link down which took me to the finance department of the “City Of Pacifica” website.

LINK –> http://www.cityofpacifica.org/depts/finance/cafrs/default.asp

Click on the “2011”  link to open the CAFR .pdf, and go to the index.

Here you will see, as with all other CAFR reports, an entry for the “STATEMENT OF NET ASSETS“, listed under the FINANCIAL SECTION, and under “GOVERNMENT-WIDE FINANCIAL STATEMENTS”. This tells us to go to page 17 of this particular Comprehensive Annual Financial Report to find our “statement of net assets”.

That’s it! This is the hardest part of the whole process.

Now breathe… it’s all simple from here on in – and quite an eye-opener!!!

Step 2:

Now that we are on page 17 (or your own CAFR page listing the “STATEMENT OF NET ASSETS” graph), we see a page full of large figures.

Don’t worry… you don’t need to know these. They are irrelevant to our goal. Fortunately, we are only concerned with the three or four line items that prove the budget lie and omission of the CAFR facts.

What we see here is a statement of three financial columns.

1. “Assets”

2. “Liabilities”

3. (Total) Net Assets.

In basic accounting, we add up the “ASSETS” and then subtract the “LIABILITIES”, which gives us our balance called “NET ASSETS”.

But we must remember, there is nothing at all “basic” about government accounting. In fact, it is the most complicated structure of obfuscation I’ve ever encountered. Berny Madoff would even be proud…

Step 3:

Now that we are familiar with the layout of this graph, and since we already know that comprehending government accounting is like untangling a mile-long set of Christmas lights that have been kicked around by a kindergarten class that just drank 20 gallons of Coca-Cola, we can fortunately find the few line items we actually need quite easily here.

Now, under the ASSETS column, we see that TOTAL ASSETS  are listed as:

———————————————————

Governmental Activities: $103,806,744

Business-Type Activities: $57,517,150

Totals: $161,323,894

———————————————————

***Note: “Business-Type Activities” may also be listed as “Non-Governmental Activities” or similar language. This represents government acting in the capacity of a corporation offering a “service” to the people, but not as “taxpayers”. Instead, this is a business that earns money, and the taxpayers are instead “customers” of government. In this way, government wears two hats. Often, as in Utah with its self-proclaimed “Alcohol Monopoly” – were government controls and profits as the only legal seller of high content alcoholic beverages – or in the case of “State Lotteries” run solely by State Governments as a monopoly, the government is acting as any for-profit corporation might, and taxpayers voluntarily purchase this service and products from government as “customers”. Thus, these types of governmental activities are considered “non-governmental” or in Pacifica’s case “Business-type Activities”.  For our purposes, this is certainly important to understand but not necessary to our stated goal. It is simply a way to transfer money out of the taxpayer base and into the business-base of revenues, leaving the taxpayer budget short.

Under the Liabilities column, we see TOTAL LIABILITIES listed as:

———————————————————

Governmental Activities$45,403,706

Business-Type Activities: $37,792,153

Totals: $83,195,859

———————————————————

We will come back to these figures in a moment, as the big lie is within this LIABILITIES section.

Finally, our TOTAL NET ASSETS are listed as:

———————————————————

Governmental Activities$58,403,038

Business-Type Activities: $19,724,997

Totals: $78,128,035

———————————————————

Assets minus liabilities equals total assets. But we must now expose the fraud written into these so-called liabilities…

Step 4:

Now, since I have written extensively on what all of these facts and figures mean within the full report of the CAFR, we will not be reading between the lines today. Again, we need not understand the whole financial report to understand the crime of omission happening in every government across America (and the world for that matter). All we need to know is this one method of “creative accounting”, and with it we have more ammunition than we could possibly need to call foul on our elected holders of public trust. So for now, don’t worry about all this other red tape. If you want to learn more about all of this, you can scour my articles or watch my movies for explanations of this CAFR information. Again, we need not get sidetracked with anything but these few line items that prove massive fraud on a national level.

Listed here are the ways in which these “totals” are restricted, invested, and unrestricted. But again, this information is irrelevant to our goal, for it is based on the lie we are about to expose. Without the continuity of the big lie, these “restrictions” mean nothing.

In order to understand this lie, we must now go back to the LIABILITIES section.

Remember, we only need to read this one graph called “STATEMENT OF NET ASSETS”. Nothing else matters for our purposes of establishing basic fraud through omission and obfuscation. So for now, ignore the rest of the CAFR.

Under the LIABILITIES section, we see a line item titled “NONCURRENT LIABILITIES”.

In our Pacifica City Corporation CAFR, these are listed as follows:

Due Within One Year:

Governmental Activities$4,283,958

Business-Type Activities: $2,458,072

Totals: $6,742,030

Due In More Than One Year:

Governmental Activities$38,527,849

Business-Type Activities: $34,108,234

Totals: $72,636,083

And there it is… Perhaps you still don’t see it, and that’s OK. For most people have hope and faith that government has integrity and honesty even within its own required Federal and State accounting principals. Perhaps you have even heard your mayor, council members, and even your governor talk about their “intent” to do right by the people? But in reality, nothing could be farther from the truth. For intent means nothing until it is written down on a paper, signed, notarized, and filed as a legally binding contract. Only then can the true intent of politicians be guaranteed. And only then can the law be broken – for a broken promise of ones good intentions is not against the law!

So what just happened here that is so darn eye-opening, as I claim?

Glad you asked…

For it can easily slip past your cognition if you aren’t ultra aware of what you are reading. In this case, the City of Pacifica has just listed its current assets and compared those assets to its future liabilities.

Why is this significant?

Well, imagine if you were reporting your own assets and liabilities to the IRS after it informed you that it required this information for an audit. And let’s say you wanted to play a creative accounting trick on the IRS to hide your real current asset holdings. While this little trick would actually be illegal for you to do, in government it’s perfectly OK and legal, and even promoted in standards of practice. After all, government wont punish itself for its own lies – for the lie is the basic foundation of government accounting as recommended by itself!!!

So when Agent Smith comes a knocking at your door and asks you for your STATEMENT OF NET ASSETS, you give him your list that you made, which includes the same creative accounting methods used by government. On your list you itemize all of your assets, including your home, your car, your equipment, and any other property you might own. You then list your bank checking and savings accounts and any liquid investments you have in your investment portfolio, just like government does. And once you’ve listed everything you can possibly account for as one of your assets that you have right now at this very moment in time, you then begin to list your liabilities.

And here is where the creative part comes in – the act of obfuscation and trickery to fool IRS Agent Smith into believing that you have more liabilities that effect your asset balance than you actually do. Here’s how that works…

Firstly, you list depreciation of your property values if indeed the market or blue-book values have decreased over the last fiscal year. But this is another accounting trick we will ignore for now.

Second, you may account for assets that are “receivable” in the short term – say within one months time or so – in the form of payments, interest or capital gains, refunds due, rent due, etc. These short-term “future” assets can be considered “current” assets for the purposes of reporting total assets to government.

And finally you report your current liabilities that may affect your total stated list of assets. This may include “future” short-term loan payments, interest accrued within the next few weeks or in a fiscal month or quarter, capital losses, depreciation, and other forms of liabilities and/or write-offs.

At this point, you have now listed your CURRENT ASSETS and your CURRENT LIABILITIES to the best of your ability and integrity by law. And even though this figure includes some very short-term assets and liabilities, your report to the IRS is really an honest and to the best of your knowledge perfect representation of your CURRENT financial position. You have not omitted anything, and you have not purposefully attempted to hide your wealth from the IRS.

For this you get a gold star and a pat on the back for being such a good little debtor, filling governments bags with the proper amount of revenue in the form of taxation (extortion).

But government doesn’t do this, you see.

Because government is not reporting to the IRS as a taxpayer.

Government is the tax collector.

And government is a profitable business.

So how does government hide its wealth from the people?

The same way that you would hide your wealth from government… that is, if it was legal – like it is for government to hide its wealth from you.

If you were to follow the creative generally accepted financial accounting practices (GAAP) of government in your own financial accounting list, here is what you would have actually given to the IRS:

Step 1: Do exactly what you did as listed above, stating an honest and perfect representation of your CURRENT cash, property, and investment holdings, taking CURRENT liabilities away from that total.

Step 2 (Creative accounting): While reporting CURRENT ASSETS, hide the true value of today’s assets by subtracting your FUTURE LIABILITIES of tomorrow from your ASSET totals today.

That’s it! You’ve just hidden most or all of your current wealth and assets. You’ve successfully fooled the IRS into actually believing that despite your actual money, property, and investment totals that can be seen clearly listed on your report, you have somehow made that money, that property, and those investments magically disappear from your balance sheet and claim to not actually have that money, property, and investment capital in your accounts today!

Wait a minute!

Did we miss something?

How exactly did this happen?

Just how can I make my current assets magically disappear by listing my future liabilities?

The answer: Exactly like government does!

Here’s what you did…

Let’s say your home is worth $500,000 and your two cars are worth a combined total of $100,000. Not bad man! Your doing pretty good I’d say. Better than most now-a-days, right?

Oh, but wait a minute. We can’t forget that these little property assets called “capital assets” didn’t come for free. It turns out you are not so different than the majority of people out there, and you have bank loans which hold as collateral your “capital assets”. In other words, you’re up to your neck in DEBT!!!

Debt is a future liability.

And so with a total property value of $600,000 in current capital assets (the total current value of your home and cars as of today that you are reporting to the IRS), we see that unfortunately you also have a debt in the form of loan totals plus interest of about $400,000 that you must pay over the next 20 years. Suddenly wealth takes on a whole different meaning, and your debt is certainly a future liability – which means that the total asset value for your “property” as capital assets in the form of “equity” is only about $200,000 today when this debt is considered. Remember, this is the CURRENT ASSET VALUE for this day, which for your purposes is the end of your fiscal year as reported to the IRS.

For Pacifica, California, its fiscal year always ends by law on June 30 of every year. And this report was published for the dates spanning from July 1st, 2010 – to – June 30, 2011.

So you report that your assets are worth $600,000, and you report that your cash and investments are at $100,000 total.

In the end, when your future payments and interest are taken into consideration, you report the following to the IRS:

Property value: $600,000

Cash and investments: -$300,000

What?

How can you report a loss and negative balance on current cash and investments of $300,000 if you have +$100,000 in the bank and in liquid investments?

This is how government financial reporting works, friends. All you’ve done is to create a false paradigm that utilizes the payments and interest payments of your future debt repayment amortization, including interest that hasn’t even been charged yet upon your balance principle in the future, and applied that negative liability to your current balance of assets.

But in order for this to work, you must not take into consideration your future income, investment returns, and other forms of revenue that will come into your total asset balances in the future. In other words, you report your future liabilities and ignore the future assets that will ultimately pay for those liabilities.

If you were really devious, you could then file bankruptcy and get those future debts eliminated from your record while retaining your current assets and equities.

Welcome to government creative CAFR and budget accounting!!!

–=–

Now, back to the City Of Pacifica Municipal Corporation CAFR…

Again, our liabilities are listed as:

Due Within One Year:

Governmental Activities$4,283,958

Business-Type Activities: $2,458,072

Totals: $6,742,030

Due In More Than One Year:

Governmental Activities$38,527,849

Business-Type Activities: $34,108,234

Totals: $72,636,083

To be fair, we will treat the listed liabilities that are “due within one year” as a legitimate line item, and to cover any type of short-term future assets that this government corporation might have actually reported.

And so, we have a total left over in the “due in more than one year” category of $72,636,083.

When we look at the line items in the “Assets” section, we see no reporting mechanism for the declaration of future assets due in more than one year”. The “long-term pre-paid pension asset” is an investment into the pension system, and not a future asset in the form of revenue. Thus, we have no hint or clue of a reporting on how much this City will collect in future revenue or what will be collected via taxation or business income, which would obviously be what pays for the future debt liability payments that are reported here.

In other words, the City corporation just used FUTURE liabilities to hide its CURRENT assets.

If the fact that future assets to be collected as revenue were reported in this graph, the $72,636,083 that is reported as a liability effecting the current asset balance would be cancelled out into a zero balance. All future liabilities would be accounted for with all future assets.

But this is not the case.

If this true accounting were to be stated here in the Statement of Net Assets, then the Total Net Assets would change from this:

Governmental Activities$58,403,038

Business-Type Activities: $19,724,997

Totals: $78,128,035

To this:

Governmental Activities$58,403,038 + $38,527,849

Business-Type Activities: $19,724,997 + $34,108,234

Totals: $78,128,035 + $72,636,083

This gives the municipal corporation of Pacifica, California a sudden increase in its actual CURRENT ASSETS to a total of $150,764,116, almost double what it actually reports within its Statment of Net Assets.

And there you have it – creative accounting at its finest. This, ladies and gentlemen, is the financial scam being perpetrated over you in every city, district, county, and state, USA.

And this can be used by anyone to call out your council, mayor, and any other financial planners that try and bullshit you into believing that your government has no money. And this is only the tip of the iceberg…

Remember, this in no way represents the total gross wealth of your government, but only shows one single method amongst many methods to legally cover up the true financial situation of your government entity. This can also be applied to other balances listed in the CAFR, including the “Statements Fund Balances” and within Pension Fund CAFR schemes.

–=–

Finally, to test this instruction sheet for accuracy and to prove my claims herein, lets randomly select a few other CAFR’s from governments around the country…

I just sat for a moment and thought of what should be the only City in America that may be an exception to this rule, a government that actually may be in dyer financial trouble. And the name Detroit came to mind…

Here is a link to the City Of Detroit municipal corporation (incorporated 1806) CAFR for fiscal year 2011 on the Detroit City Government website:

LINK–> http://www.detroitmi.gov/Portals/0/docs/finance/CAFR/2011%20Detroit%20CAFR%20Final.pdf

Detroit lists its Statement of Net Assets on page 37 of this CAFR. And this City lists the following Net Assets:

Total Assets (and Deferred Outflows): $10,030,113,247

Total Liabilities: $10,059,121,604

Total Net Assets (Deficit): ($29,008,357)

So here the City of Detroit is reporting that after all CURRENT ASSETS and LIABILITIES are considered, the City is running a deficit of over $29 million dollars.

But what happens when we look closer at the liabilities section line items and apply the “creative accounting” lesson we just learned?

Amazing things, folks. Amazing things happen…

Listed as “LONG-TERM OBLIGATIONS” here, Detroit lists the following under its “TOTAL LIABILITIES” section:

Due Within One Year: $313,944,768

Due In More Than One Year: $8,366,493,713

It also lists certain liabilities in the form of toxic debt instruments as:

Derivative Instruments – Swap Liability: $612,067,105

Now, though we wont include this in our total, the fact that your government is even in the investment schemes of derivatives trading, including toxic mortgage backed securities, should be enough to storm the gates and handcuff your political leaders. But we’ll save that discussion for another time, even as your governments collectively invest in this type of securities crap!

So again, if we simply consider that the future liabilities (due in more than one year) of the City OF Detroit will be paid with future assets collected by City Of Detroit from its taxpayers and customers (totals include “Governmental” and “Business-Type Activities”), then the City government of Detroit actually has CURRENT assets which should be listed like this:

Total Current Assets (and Deferred Outflows): $10,030,113,247

Total Current Liabilities: $1,692,627,891

Total Current Net Assets: $8,337,485,356

So the City Of Detroit is covering up more than $8 billion dollars in CURRENT assets by its creative accounting of future assets due more than a year away that will be paid for by future assets that are creatively not reported in its own audited CAFR. If I was a resident of Detroit, I’d say it was time to hold certain lying councilmen and the mayor accountable to the people. And in gangland Detroit, the word accountable would and should be a very frightening thought to those crooked political figures in power over the trust of the people!

The lies know no end in government accounting standards and practices…

–=–

Ok, how about one of the largest Cities and Counties in the nation, Los Angeles.

By some accounts, L.A. is one of the largest 20 economies in the world. So let’s see what just the City proper and the separate County proper is holding within its CAFR as CURRENT Net Assets.

Here is the link to the 2011 City CAFR for City Of Los Angeles: http://controller.lacity.org/stellent/groups/ElectedOfficials/@CTR_Contributor/documents/Contributor_Web_Content/LACITYP_019904.pdf

And here is the link for County Of Los Angeles: http://file.lacounty.gov/lac/cms1_141548.pdf

Starting with the City, the Statement of Net Assets lists:

Total Assets: $48,314,850,000

Total Liabilities: $27,828,798,000

Total Net Assets: $20,486,052,000

But again, in the LIABILITIES section, is listed “NON-CURRENT LIABILITIES”:

Due In More Than One Year: $23,808,794,000

And so the actual CURRENT NET ASSETS total for Los Angeles City government is in fact $44,294,846,000.

–=–

And now the County of Los Angeles:

Total Asset: $26,447,190,000

Total Liabilities: $10,317,696,000

Total Net Assets: $16,129,494,000

But again, in the LIABILITIES section, is listed “NON_CURRENT LIABILITIES”:

Due In More Than One Year: $7,224,245,000

And so the actual CURRENT NET ASSETS total for Los Angeles County government is in fact $23,353,739,000.

And so in just these two governments within Los Angeles, we have quickly and easily uncovered over $31 billion in hidden assets. With this simple technique, you and your friends can show anyone out there how government is lying to the people through omission of accounting facts. This is organized crime, indeed…

–=–

Here is a random School District called Minnetonka, in Minnesota, showing this scam in even the smallest of districts and cities:

LINK–> http://www.minnetonka.k12.mn.us/administration/Budget/Documents/District_Audit.pdf

On page 33 is the Statement Of Net Assets:

Total Asset: $161,323,894

Total Liabilities: $83,195,859

Total Net Assets: $78,128,035

And when we realize that most of these liabilities are what are called “NON-CURRENT LIABILITIES” on this report, we see that of these listed liabilities:

$72,636,083 is listed as “Due In More Than One Year

This nearly doubles the actual CURRENT ASSETS to a total of $150,764,118.

Yet another example of the endless sea of lies and obfuscation that has for generations been pulled over the eyes of the public.

–=–

I hope that this information will be of use to your future endeavors in trying to understand the actual financial position of your local or state government. I’d say its time to get up and go to a council meeting near you. Any one will do… all you need is a few minutes to find and add up these figures, and you are good to go create a firestorm of citizen outrage that needs to be spread through the actions of people like you.

As a homework assignment, why not pull up your own City CAFR and amaze friends and family with your new magic trick. Before today, only the Federal Reserve could pull millions or billions of dollars out of its butt! And while your at it, please leave a comment below about what you have found. Include the amount in millions or billions hidden under future liabilities, and also the link to your CAFR so that others may enjoy. Please pass this on and let’s see how many we can post here. That would be great!!!

Be well, and stop playing the fool!!!

.

–Clint Richardson (Realitybloger.wordpress.com)
–Wednesday, February 27, 2013

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!

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)

–=–

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.

–=–

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

–=–

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 (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!

–=–

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:

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:

———————————————————————————————

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.)

———————————————————————————————

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%!!!)

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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

———————————————————————————————

(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

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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…

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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?

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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

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…”

(Source) http://www.scpr.org/news/2012/01/05/30670/gov-jerry-browns-budget-be-released-early-after-it/

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

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

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

LINK–> http://www.sco.ca.gov/Files-ARD/CAFR/cafr11web.pdf

And for previous years back through fiscal year 1999:

LINK–> http://www.sco.ca.gov/ard_state_cafr.html

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

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

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

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

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

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

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

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

Why do they do this?

The answer is simple, really… TO JUSTIFY THE CONTINUATION OF, THE RAISING OF, AND CREATION OF NEW TAXES!!!

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

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

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

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

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

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

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

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

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

Cigarette and Tobacco Tax Fund$253,300,000

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

Health Care Related Programs Fund$947,552,000

Trial Courts Fund$1,522,274,000

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

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

————————————————————————————-

TOTAL IN SPECIAL REVENUE FUNDS = $20,648,388,000

————————————————————————————-

.

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

————————————————————————————-

TOTAL IN DEBT SERVICE FUNDS = $484,712,000

————————————————————————————-

.

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

————————————————————————————-

TOTAL IN CAPITAL PROJECTS FUNDS = $1,589,456,000

————————————————————————————-

.

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

————————————————————————————-

TOTAL IN BUILDING AUTHORITY FUNDS = $86,174,000

————————————————————————————-

.

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

————————————————————————————-

TOTAL IN INTERNAL SERVICE FUNDS = $574,355,000

————————————————————————————-

.

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

————————————————————————————-

TOTAL IN ENTERPRISE FUNDS = $3,612,964,000

————————————————————————————-

.

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

————————————————————————————-

TOTAL IN PRIVATE PURPOSE TRUST FUNDS = $4,625,181,000

————————————————————————————-

.

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

————————————————————————————-

TOTAL IN PENSION/EMPLOYEE BENEFIT FUNDS = $409,623,766,000

————————————————————————————-

.

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

————————————————————————————-

TOTAL IN NONMAJOR COMPONENT UNITS = $2,874,358,000

————————————————————————————-

.

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

————————————————————————————-

TOTAL IN MAJOR COMPONENT UNIT FUNDS = $91,319,843,000

————————————————————————————-

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) – http://www.caiso.com/Documents/MonthlyFinancialReport-MAR2012.pdf
Main Website – http://www.caiso.com/Pages/default.aspx

.

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 – http://www.earthquakeauthority.com/UserFiles/File/Publications%20&%20Brochures/Annual%20Report%20to%20the%20Legislature%20-%20Reporting%20Year%202010-FINAL.pdf
Main Website – http://www.earthquakeauthority.com/CEAIndex.aspx

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

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

General Fund$44,583,169

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

STA Fund$123,393,759

Capital Projects Funds$11,376,935

Nonmajor Governmental Funds$141,229,755

Proprietary (Enterprise) Funds (Page 25):

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

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

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

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

Nonmajor Funds:

Transit Reserves Fund$378,485

Rail Reserves Fund$84,611,153

Exchange Fund$6,676,355

BART Exchange Fund$47,549,245

Feeder Bus Fund $48,509

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

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Source CAFR – http://www.mtc.ca.gov/library/AnnualReport-08/MTC_AR_2008-pages/index.html
Main Website – http://bata.mtc.ca.gov/

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

B. Government-wide and Fund Financial Statements

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

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

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

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

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

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

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

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

    Investment Type                                   Fair Value      

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

……………………………………………………………………………………………………….

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

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

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

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

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

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NOTE 10: LONG-TERM OBLIGATIONS (Page 107)

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

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

That’s it?

You better believe it!!!

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

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

From the CAFR above, we had:

TOTAL IN SPECIAL REVENUE FUNDS = $20,648,388,000

TOTAL IN DEBT SERVICE FUNDS = $484,712,000

TOTAL IN CAPITAL PROJECTS FUNDS = $1,589,456,000

TOTAL IN BUILDING AUTHORITY FUNDS = $86,174,000

TOTAL IN INTERNAL SERVICE FUNDS = $574,355,000

TOTAL IN ENTERPRISE FUNDS = $3,612,964,000

TOTAL IN PRIVATE PURPOSE TRUST FUNDS = $4,625,181,000

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

TOTAL IN NONMAJOR COMPONENT UNITS = $2,874,358,000

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

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

TOTAL IN MAJOR COMPONENT UNIT FUNDS = $91,319,843,000

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

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

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

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

TOTAL PENSION TRUST FUND INVESTMENTS = $456,488,666,000

—————————————————————————————————————-

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

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

It promotes debt and hides assets.

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

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

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

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

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

Are there any real people out there?

Sometimes I wonder…

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

Other websites for CAFR info:

CAFR1.com
TaxRetirement.com
TheCorporationNation.com
RealityBloger.wordpress.com
CAFRMAN.com

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–Clint Richardson (realitybloger.wordpress.com)
–Friday, May 25, 2012


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

ex·ac·tion

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

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

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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

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

BOUVIER’S LAW DICTIONARY – ADAPTED TO THE CONSTITUTION AND LAWS OF THE UNITED STATES OF AMERICA AND OF THE SEVERAL STATES OF THE AMERICAN UNION, by John Bouvier, Revised Sixth Edition, 1856

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

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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“.

Meanwhile…

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…

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–Clint Richardson (realitybloger.wordpress.com)
–Tuesday, May 22, 2012

Dear Matt Damon…


Dear Matt Damon,

First of all, let me just say that I have enjoyed your work in various movies over the years. And congratulations on all of your success, both popularly and especially financially. But I want to talk specifically to you about one of your rolls, as the voice-over talent for the recent documentary movie entitled “Inside Job”.

Again, well done sir. This was a very well presented documentary on corruption most foul within the banking industry and in the United States government. But to be honest Matt, I have never seen a more well-done and yet totally incomplete presentation of the facts about such an important event in our nations history. In short, you were the narrator of one of the biggest propaganda pieces in history, and I was wondering how that feels…

You see Matt, I figure that your participation in this thing can only be explained by two possibilities:

1) You were just reading a script, and really don’t comprehend what was truly happening outside of what that script stated within the government and banking industry. And you thought you were truly part of something quite special.

2) You were fully aware of your participation in a government cover-up of the most important aspects of what really happened during this period of organized crime, and you were rewarded handsomely for your popularity and participation in this totally incomplete propaganda piece.

Now, I see that you are supportive of many charities and organizations around the world, and that pleases me as one of your fans. And so I am writing you this letter to let you know that I want to give you the benefit of the doubt with regards to your participation in this misleading documentary. I truly believe that you were doing what you thought was best (and I’m sure the paycheck wasn’t too bad either).

But if this assumption is true, I am wondering what you would do if you found out that you were unwittingly part of a massive misinformation campaign designed to obfuscate the most important aspects of this criminal event. Would you seek to publicly rectify the situation if you saw the proof that “Inside Job” was just a half-truth, designed to allow the very government who has ravished the third-world you are so desperately trying to help through your charities and support, get away with the financial crime of the century? Have you made enough millions yet that you would be willing to sacrifice your future movie career to truly educate humanity about the real Inside Job that took place and how it is directly responsible for the poverty and destitution that you publicly rally against?

As a fan, I’d like to know the answer to these questions…

So Matt, if you will indulge me for just 15 more minutes, I’d like to explain a few things to you, so that you might publicly address the true nature of the so-called financial collapse of 2007-2008 with a fully informed head. For that, I’ve prepared this video, which is just a short snip-it of a 4-hour documentary that I made on the same subject. Please know that this movie cost me nothing to make – except my valuable personal time – and is offered for free to the public without charge. I’m not selling anything. You see, it doesn’t take 20 million dollars to uncover the truth… not like the budget for “Inside Job”, just a deep passion for the truth and a hell of a lot of research.

Now, if you will, please view this 15 minute excerpt from this free movie, The Great Pension Fund Hoax:

So as you can see, Matt, Inside Job failed to mention the most important information for the comprehension of this whole Ponzi scheme – the fact that government had massive controlling stock investments in these banks, investment corporations, mortgage corporations, and bail-out receivers. In other words, the financial collapse of these corporations was not a collapse at all, but was instead a merger of government investment held and owned corporations through what is called “corporate governance”, as well as the complete and utter theft of billions and billions of dollars from the public. This term, corporate governance, was even mentioned once to my surprise in the movie – but with no explanation of what it actually means.

Again, now that you have received this holy grail of comprehension with regards to your documentary’s cover-up, and now that you can see the true nature of government’s complete conflict of interest as major share-holder of every major and important corporation on the planet – while also regulating the markets and industries those investment held banks and corporations operate under (including the major water companies like Nestle, Coca-cola, and Pepsi that are stealing all of the clean water from the African children you are banging your head against the wall trying to help) – what are you going to do about it?

What will you do…?

I mean, considering that the government also has major controlling shares in the very media industry that has made you such a wealthy and popular icon, do you have the integrity to stand up against the hand that feeds you in order to set into motion the necessary public comprehension that is needed to truly save the world from this organized propaganda and government-military industrial machine?

By the way, here are the investments in media companies, if you can spare another 10 minutes:

So what’s it gonna be, Matt?

Will you be the hero of our generation, exposing this truth to millions?

Or will you continue to support the very government corporate owned structure that is killing the families you’re trying to protect in your charitable organizations?

The choice… and the consequence of inaction is now yours, Matt. Because now you know.

Signed, a fan that hopes #1 is the answer you seek to rectify,

–Clint Richardson–

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Watch the full movie here: http://www.youtube.com/watch?v=fhkWueEjewM

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–Clint Richardson (realitybloger.wordpress.com)
–Thursday, March 22, 2012