In this dramatically droll and boring school board meeting, the school district’s board is visited by its chosen and contracted auditing firm, for which a representative of that firm monotonously explains to the board the Comprehensive Annual Financial Report (CAFR) that it has completed for the district. I am posting this recorded school board video recording not for your viewing enjoyment, but for proof positive that all school boards and other local, district, county, and state governments are fully aware of and must acquiesce and approve their CAFR reports in a board or council meeting. Do not ever let any government tell you that they do not know what the CAFR is. They are lying. They may not be able to read it, but they know it exists and know they aren’t supposed to know what it really says! Ignorance is no excuse for malfeasance…
CAFR discussion begins at 2:23 in this video:
Let there be no doubt about this standard government accounting practice.
.
–Clint Richardson (realitybloger.wordpress.com)
–Tuesday, February 21, 2012
In a rare show of slightly skewed honesty, the folks at CNBC came out with a report today highlighting the United States’ debt and who actually owns that debt.
Though written in the guise of their typical “10 Best Cities To Get A Job” or “10 Most Beautiful Beaches In The World” format, finally a little bit of truth is coming out of the mainstream about government finance!
Today’s episode: “The 10 Biggest Holders Of U.S. Debt”.
Listed as the #1 holder of government debt, just as Walter Burien of CAFR1.com has been proclaiming for 20 years… The U.S. Government! Here listed as:
1. Federal Reserve and Intragovernmental Holdings
Total U.S. debt holdings: $6.328 trillion
(From the article)
“That’s right, the biggest single holder of U.S. government debt is the Federal Reserve system. The Fed’s system of banks and other U.S. intragovernmental holdings accounted for a stunning $6.328 trillion in U.S. Treasury debt in Spetember 2011 (the most recent number available). The amount is an all-time high as the Federal Reserve continues to expand its balance sheet, partially to purchase U.S. government debt securities.
“About a decade ago, the total government holdings were “only” $2.5 trillion.”
So, the U.S. Government is in debt primarily to… itself?
Hmmm. As Mr. Burien has been trying to bring forward into the comprehension of the American and international people for many years, this is the sobering truth. And as many people are just begining to wake up to Walter Burien’s tireless work on exposing the Comprehensive Annual Financial Report (CAFR) system of general accounting for all corporations, including the over 230,000 individual governments listed within the April 1, 2000 government census report, this fact is quite verifiable – as the CAFR is the audit of government.
But wait, can a government really be in debt to itself?
Well, can you? Can you tell the IRS, for instance, that you borrowed money from your checking account and placed it into your savings account and therefore have no money available to pay the IRS because your checking account balance is at a negative balance because you owe your savings account money from your checking account (while gaining interest on that savings account in the mean time)?
No, you can’t…
But the question is, can government be in debt to itself?
Of course it can. For government makes its own rules. That’s the golden rule after all… He who holds the gold, makes the rules. And in this case, those who make the rules certainly hold most of the gold.
In fact, as shown in the 2010 CAFR for the Federal Reserve (fiscal year ending December 31, 2009), over $47 billion dollars was collected from the American people that year, every cent of which was placed into the accounts of the United States Treasury. And over the life of the Federal Reserve, over $687.6 billion dollars has been paid by the Federal Reserve to the U.S. Treasury in the form of “Interest On Federal Reserve Notes”. And would you have ever guessed that the U.S. Treasury is holding over 261 million troy ounces of gold – which is listed as “collateral” for Federal Reserve Notes in the Federal reserve CAFR?
You can only find this type of information in the audit of government – the Comprehensive Annual Financial Report.
I mention this mostly to dispel the popular fallacy that the Federal Reserve is somehow an autonomous agency without any ties to the Federal Government. This simply is not true. It is federal law that all government agencies file a CAFR each year, of which the Federal Reserve has been filing since this laws’ inception. The Audit of the Federal Reserve System can be found here:
The term intragovernmental is a term used to describe the investment fund structure of all of these over 230,000 government municipal corporation (city/county), state, and federal corporate governments. As a standard of practice, these local, county, and district governments place their taxpayer money into what is called the State Treasurer’s Investment Funds (commingled funds), which are generally managed by the State Treasurer as trustee of those funds. The average daily balance of those funds is then invested into the bonded indebtedness of the United States governmental structure, called the U.S. Debt. These funds generally invest into such things as Federal securities, commercial paper, national/international banking institutions, municipal and federal bonds and warrants, and other forms of indebtedness, gaining interest and dividends from those investments. States hold these funds with the permission of Federal US CODE. And one government makes a profit from another government via interest payments on these bonds – which is paid via taxation on the people.
For more information on these state “commingled funds”, please see my video here explaining the over $64 billion California State Treasurers Investment Fund:
And of course, it is perfectly legal to write off the majority of this debt at any time the government sees fit, according to US CODE which houses the amended FEDERAL RESERVE ACT.
Also, we can’t forget the humongous $2.6 trillion Social Security Trust Fund investments into this U.S. debt either.
But let’s take a look at some of the other holders of U.S. debt…
3. Other Investors/Savings Bonds
U.S. debt holdings $1.107 trillion
(From the article)
“With the most recent numbers from June 2011, this extremely diverse group includes individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts, estates, savings bonds, corporate and noncorporate businesses for a total of $1.107 trillion.
“Although the level of debt held in U.S. savings bonds has remained basically constant since 2000, the broad category of “other” investors has nearly quadrupled since reaching a four-year low in December 2007.”
Note here that this group includes “government -sponsored enterprises”. Of course, this report doesn’t tell you that the vast majority of investment wealth that sits in these other funds like “individuals (corporate persons), brokers and dealers, bank personal trusts, and corporate and noncorporate businesses” is funded by government taxpayer money.
And the corporations/businesses that are listed here, when we understand that collectively the over 230,000 governments hold together majority stock ownership in all major corporations in the world through pension and other trust fund investment and are the main investors in savings bonds and other debt, this “category” is a very deceiving look into who actually holds and more importantly controls these savings bonds and investors through “corporate governance”.
5. Pension Funds
U.S. debt holdings: $842.2 billion
(From the article)
“Pension funds control large amounts of money, reserved for personal retirements, and thus are obligated to make relatively safe investments. This group, which includes private and local government pension funds, holds $842.2 billion in U.S. debt. The private pension fund category also includes U.S. Treasury securities held by the Federal Employees Retirement System Thrift Savings Plan G Fund.”
And so here again, because pension funds are mostly government controlled, and because the private/publicly traded corporations that have pension funds are held by government stock investment as their majority stake holders and vote through proxy shareholder voting rights on all that happens within these “private” and “public” corporations, government once again is in reality the holder of its own debt.
See “The Great Pension Fund Hoax” for a complete breakdown of the pension fund system, here:
6. Mutual Funds
U.S. debt holdings: $653.5 billion
(From the article)
“According to the Federal Reserve, mutual funds hold the sixth-largest amount of U.S. debt compared to any other group, although mutual fund holdings have diminished by more than $105 billion since December 2008. Including money market funds, mutual funds and closed-end funds, this group of investments managed about $653.5 billion in U.S. Treasury securities as of June 2011, which are the most recent numbers available.”
And here again, as with U.S. Savings Bonds, we find that the main holder of investments in mutual funds is indeed the government pension fund system listed above. Funds like Blackrock, Vanguard, and State Street Corporation are always in the top holdings of government, especially in the pension system. (See: The Great Pension Fund Hoax for sources).
7. State and Local Governments
U.S. debt holdings: $484.4 billion
(From the article)
“U.S. state and local governments have nearly a half-trillion dollars invested in American debt, according to the Federal Reserve. The level of investment has remained stable since 2006, moving within the range of $484 billion and $576 billion. The current debt holdings, however, represent the lowest aggregate level for state and local governments since December 2005, when they stood at $481.4 billion.”
To reenforce the fact that government is the main share holders of U.S. Debt securities, CNBC lists State and Local governments to the list. Again, through the commingled funds discussed earlier and as listed within all of the CAFR reports of local and state governments, we see that these government/municipal corporations are indeed the holder of vast amounts of public debt.
And remember, government charges the taxpayers with the responsibility for this debt, while it uses that wealth to purchase everything in sight! So government is in truth collecting interest and capital gains (tax free, of course) as well as dividends on the money that it borrows… from itself!!! The people pay their taxes in order to pay this interest, which is in reality a “profit” for the so-called “non-profit” government. It’s really a win-win situation for government investment funds.
9. Depository Institutions
U.S. debt holdings: $284.5 billion
(From the article)
“As of June 2011 (the most recent numbers available), the Federal Reserve Board of Governors lists depository institutions as holding about $284.5 billion in U.S. debt.
“This group includes commercial banks, savings banks and credit unions. In 2011, its holdings more than tripled from the 2008 low of $105 billion. Between June and September 2011, holdings for depository institutions fell by nearly $44 billion.”
10. Insurance Companies
U.S. debt holdings: $250.1 billion
(From the article)
“According to the Federal Reserve Board of Governors, insurance companies hold $250.1 billion in Treasury securities. This group includes property-casualty and life insurance firms.”
Once again CNBC reports that – according to the Federal Reserve System – banks, financial institutions and insurance companies are a large shareholder of U.S. government debt instruments and securities.
But once again we must realize that the main stockholder of these publicly traded banks and insurance corporations is in fact government itself, through its pension fund and other trust and investment funds.
For example, as of March 31, 2010, just the “New York State And Local Retirement System” pension fund held the following shares in banks and investment corporations:
Company Shares of Stock Market Value
Morgan Stanley 4,301,770 97,951,303
Goldman Sachs Group Inc/The 1,961,585 207,967,242
Goldman Sachs Ssga Em Mrkts 8,934,287 102,501,423
Wells Fargo & Company 16,257,120 231,501,389
Bank of America Corp 23,819,237 162,447,196
Citigroup Inc 18,601,505 47,061,808
Citigroup Inc Depository Shares 199,368 3,046,343
American Express Company 4,249,664 57,922,920
American Financial Group Inc 492,854 7,910,307
Visa Inc – Class A 390,400 21,706,240
Mastercard Inc – Class A 306,830 51,387,888
Zions BanCorp 558,029 5,485,425
Fifth Third Bancorp 2,678,672 7,821,722
Fannie Mae 6,000 4,200
Freddie Mac 6,100 4,636
Hartford Financ Serv Grp Inc 1,099,070 8,627,700
Hudson City Bancorp Inc 2,946,851 34,448,688
Western Union Company 2,656,147 33,387,768
Siemens AG 757,252 43,473,647
Experian Group Ltd 1,034,174 6,474,091
Equifax Inc 626,161 15,309,636
Equinix Inc 13,800 774,870
State Street Corp 1,867,120 57,469,954
People’s United Financial Inc 1,234,207 22,178,700
Fidelity Nat Financial Inc – Cls A 839,867 16,385,805
Fidelity Nat Info Services Inc 657,748 11,971,014
Westpac Banking Corp 298,305 3,956,638
Axis Bank Ltd 191,458 1,565,891
Discover Financial Services 1,874,548 11,828,398
Softbank Corp 3,664,300 46,596,748
Solera Holdings Inc 556,652 13,793,837
Signature Bank 210,333 5,937,701
HSBC Holdings plc 8,349,382 47,271,967
HSBC Holdings plc 1,389,200 7,645,081
HSBC Holdings plc – Rights 893,766 1,806,322
Royal Bank of Canada 169,300 4,949,214
Royal Bank of Scotland 6,330,271 2,223,006
Royal Bank of Scotland, Rights 6,427,941 -0-
Allied Irish Banks 1,216,447 969,046
National Australia Bank 1,406,252 19,638,984
Aust & New Zealand Bank Group 701,045 7,671,606
Commonwealth Bank of Australia 19,794 477,637
National Bank of Canada 161,300 5,161,497
National Bank of Greece 102,386 1,551,051
Deutsche Bank AG – ADR 9,800 398,370
Deutsche Bank AG – Registered 654,969 26,888,105
Credit Suisse Group 1,174,244 35,793,762
Credit Suisse Group – Spons ADR 300 9,147
Bank Montreal Quebec 428,291 11,230,235
Bank Mutual Corp 94,860 859,432
Bank of Baroda 542,734 2,506,942
Bank of Communications 1,376,000 955,210
Bank of Cyprus Ltd 51,909 157,826
Bank of East Asia 2,605,019 5,028,527
Bank of Hawaii Corp 192,499 6,348,617
Bank of India 934,270 4,040,186
Bank of New York Mellon Corp 4,420,585 124,881,526
Credit Agricole S.A. 311,625 3,439,044
Credit Saison Company 14,918 144,241
Bank of Nova Scotia 149,900 3,701,779
First Bancorp Puerto Rico 143,010 609,223
Bank Yokohama Ltd Japan Ord 903,100 3,821,968
Hiroshima Bank Ltd/The 13,000 49,357
Bank of Kyoto Ltd/The 73,000 614,924
Osaka Gas Company Ltd 2,035,146 6,346,309
Bank of China Ltd – H 8,527,000 2,827,663
Ind Comm Bank of China Ltd 4,464,000 2,321,280
China Citic Bank – H 484,000 182,983
China Construction Bank – H 4,331,000 2,458,890
China Merchants Bank – H 283,000 494,428
Shizuoka Bank 183,000 1,637,866
Shinsei Bank Ltd 1,450,154 1,453,531
Chiba Bank 176,500 866,685
Cheung Kong (Holdings) 3,376,000 29,077,161
Hang Seng Bank Ltd 328,500 3,308,313
Hanmi Financial Corp 55,300 71,890
Mitsubishi UFJ Financial Grp 6,409,847 30,890,829
Mitsubishi UFJ Lease & Fin Co Ltd 1,600 33,370
Bangkok Bank 554,400 1,172,424
Bangkok Bank Public Co Ltd 446,200 937,316
Siam Comm Bank Public Co Ltd 376,900 579,192
Malayan Banking Berhad 802,525 849,745
Malayan Banking Berhad – Rights 361,136 -0-
Blackrock Inc 7,135 927,835
Blackstone Group Lp/The 1,289,215 9,346,809
Zurich Financial Services 9,387 1,486,829
Aetna Inc 1,881,924 45,787,211
Cincinnati Financial Corp 736,150 16,835,751
First American Corp 496,770 13,169,373
First Bancorp Puerto Rico 143,010 609,223
First Cash Financial Services Inc 48,800 728,096
First Commonwealth Finan Corp 394,940 3,503,118
First Financial – 144A GDR 48,113 444,083
First Financial Bancorp 62,100 591,813
First Financial Bankshares Inc 54,475 2,624,061
First Financial Holding Company 978,455 451,546
First Financial Holdings Inc 23,950 183,218
First Horizon National Corp 766,191 8,228,888
First Mercury Financial Corp 213,900 3,088,716
First Midwest Bancorp Inc 280,825 2,412,287
First Niagara Financial Group Inc 414,400 4,516,960
First Potomac Realty Trust 75,284 553,337
First Quantum Minerals Ltd 6,400 180,583
First Solar Inc 39,400 5,228,380
Discover Financial Services 1,874,548 11,828,398
And this is just one single pension fund! There are thousands of these investment funds out there, all controlled and used collectively to control the financial markets of the world.
Do you still believe that government is a non-profit public entity, or are you starting to understand that government is in fact organized crime to the extreme?
And that leads us to the other listed holders of United States debt.
Here, CNBC lists its most deceiving holder of debt:
2. China
U.S. debt holdings: $1.132 trillion
(From the article)
The largest foreign holder of U.S. Treasury securities, China currently has $1.132 trillion in American debt, although it is down from all time highs of $1.173 trillion in July 2011…
4. Japan
U.S. debt holdings: $1.038 trillion
(From the article)
“One of the U.S.’s largest trade partners, Japan is also one of the U.S.’s largest debt holders, currently owning $1.038 trillion in Treasury securities.”
Now, the biggest and most often portrayed fallacy in the mainstream media is that China holds U.S. Debt. But is this a true statement?
The answer to this question must be obtained by first asking a different question…
When CNBC refers to the abstract name of “China” as the 2nd largest holder of U.S. debt, is it referring to the government of China or to the geographical location of China? Ah… this is a very clever trick used to fool taxpayers into thinking that the country and government of China holds American debt. But here is the reality of the situation:
Over many years, American corporations (majority held by government investment in their stock) have been moving to China and setting up their manufacturing and investment corporations in that country, with the absolute permission of the Chinese government. With this build-up came trillions of dollars of investment capital from the U.S. government, building up China’s infrastructure to that of a 1st world country. Walter Burien has recently estimated those investments to be over $14 trillion in value, meaning that the well-being of China’s global corporate manufacturing base is solely dependent on American and European investment capital.
In short, China houses American corporations, which sell their product back to America. And without the pollution, health, and employment protections and regulations that are imposed upon these American corporations while operating in America, they are able to pay pennies to the Chinese workers and pollute the country with very few regulatory infringements.
If China were to suddenly threaten the United States in any way, American corporations would pull out of China to sufficiently destroy the economic prosperity that American corporations have allowed. In short, these $14 trillion in investments into China’s infrastructure and marketplace makes China all but a colony of the American/European military and industrial manufacturing complex. And the thought of “China” doing anything to change this, including demanding what little U.S. debt it might actually own, is patently ridiculous.
The U.S. debt that is listed here as held by “China” is held by the investment structure that has been built up by American interests.
So who owns the corporations that are taking on American debt securities in these two countries?
Let’s go back to the New York Pension Fund and see what is happening here:
Company Shares of Stock Market Value
Banks and Investments
Bank Yokohama Ltd Japan Ord 903,100 3,821,968
Hiroshima Bank Ltd/The 13,000 49,357
Bank of Kyoto Ltd/The 73,000 614,924
Osaka Gas Company Ltd 2,035,146 6,346,309
Bank of China Ltd – H 8,527,000 2,827,663
Ind Comm Bank of China Ltd 4,464,000 2,321,280
China Citic Bank – H 484,000 182,983
China Construction Bank – H 4,331,000 2,458,890
China Merchants Bank – H 283,000 494,428
Shizuoka Bank 183,000 1,637,866
Shinsei Bank Ltd 1,450,154 1,453,531
Chiba Bank 176,500 866,685
Cheung Kong (Holdings) 3,376,000 29,077,161
Hang Seng Bank Ltd 328,500 3,308,313
Hanmi Financial Corp 55,300 71,890
Mitsubishi UFJ Financial Grp 6,409,847 30,890,829
Oil/Electic
Tokyo Electric Power Company 359,150 8,945,115
Tokyo Electron Ltd 363,650 13,401,701
Tokyo Gas Company 2,375,746 8,298,394
China Petroleum Chemical 3,982,000 2,548,480
China Power Int Dvlp Ltd 6,012,000 1,194,643
China Coal Energy Company 416,000 307,035
China Oilfield Services 212,000 167,685
China Shenhua Energy Co 341,000 768,240
Chiyoda Chemical Engineering 935,400 4,962,535
Chubu Electric Power Co Inc 241,917 5,314,973
Shanghai Electric Grp Co Ltd 12,052,000 3,467,866
Shinsei Bank Ltd 1,450,154 1,453,531
Nissan Chemical Industries Ltd 41,500 344,958
China Coal Energy Company – H 416,000 307,035
Hong Kong & China Gas Co Ltd 5,485,330 8,649,127
Hong Kong Electric Holds Ltd 3,200,500 18,996,516
Mitsubishi Electric Corp 3,036,548 13,557,939
Mitsubishi Gas Chemical CO Inc 4,000 17,009
Automobiles
Toyota Motor Company 1,764,412 55,735,197
Toyota Industries Corp 177,163 3,757,786
Toyota Tsusho Corp 143,200 1,371,542
Honda Motor – ADR 188,000 4,455,600
Honda Motor Company 1,297,926 30,421,167
Mazda Motor Corp 715,000 1,187,203
Nissan Motors Japanese Ord 4,282,864 15,176,697
Mitsubishi Corp 859,769 11,185,615
Mitsubishi Motors Corp 271,000 342,969
Hyundai Motor Company Ltd 30,860 1,238,193
Yamaha Corp 42,813 414,823
Yamaha Motor Company Ltd 184,000 1,630,050
Telecom/Cellphones
Motorola Inc 9,547,354 40,385,307
Qwest Communications Int Inc 4,735,734 16,196,210
Vodafone Group plc – Spons ADR 109,595 1,909,145
Vodafone Group plc New 56,080,988 98,670,972
Samsung Electronics Company Ltd 4,489 1,843,305
Ericsson LM Tele Co – Spons ADR 126,820 1,025,974
Ericsson LM Tele Co – B Shares 7,402,571 60,439,750
Nokia Oyj 2,005,360 23,643,146
Nokia Oyj Corp – Sponsored ADR 151,200 1,764,504
These are some of the corporations that are holding U.S. Debt. And so again, we are seeing that the U.S. government is essentially borrowing money from its own investment held corporations, nationalizing that debt onto the backs of the American people, and using the profits of the bonded indebtedness of the people not for the people, but to further government ownership and control over the world corporate structure. And then it demonizes China and assigns a false power onto its government for “holding U.S. debt”.
And the people of America eat it up, because they can never imagine that they themselves are the problem; that their ignorance of their government and their consent to it is really what’s wrong with the world. America’s creed: blame China. Blame Iran, Iraq, Afghanistan. Watch out for Russia… But just disregard our own actions.
So thanks CNBC… you almost told the truth today! Fortunately there are anomalies like Walter Burien and myself to read between the lines and translate what you fail to mention.
But then, government owns you to, so what should we expect?
Media
Walt Disney Company/The 7,975,404 144,833,337
News Corp – Class A 7,746,798 51,283,803
Time Warner Cable Inc 1,476,825 36,625,251
Time Warner Inc 4,885,448 94,289,152
CBS Corp – Class B 3,518,760 13,512,038 General Electric Company 39,551,471 399,865,372
Sony Corp 811,290 16,411,435
Sony Financial Holdings Inc 24 63,906 Vivendi Universal 2,414,568 63,876,002
Viacom Inc – Class B 2,363,387 41,075,666
Discovery Commun Inc – Series A 79,244 1,269,489
Discovery Commun Inc – Series C 78,831 1,154,874
Marvel Entertainment Inc 175,800 4,667,490 Comcast Corp – Class A 10,473,672 142,860,886
Comcast Corp – Special Class A 20,259 260,733
DreamWorks Anim SKG Inc – A 285,700 6,182,548
DISH Network Corp – Class A 475,200 5,279,472
DIRECTV Group Inc/The 2,048,939 46,695,320
.
And so in the end, of the over $15 trillion of U.S. debt that this report refers to, we can rest assured that approximately 70-80% of that debt is self-funded by the United States government, and the rest by government held investment corporations.
Oh my, how will we ever pay ourselves?
Answer: We wont.
But as long as we the people do nothing, the government will continue to raise our taxes and destroy any chance of recovery for the American people from this tyrannical corporation that we falsely call “government” and its blatant usury. And we will continue to pay the national debt plus interest simply to support the governments investment fund scheme, and continue the hostile corporate takeover of this little globe called Earth.
The government owned media will continue to tell us that this thing is “too big to fail”, as if that is a good excuse to ignore the problem and continue to justify undeclared wars and continue into a fascist global United Nations government where the rights of the individual are trumped by the rights of the collective.
The ball is in our court.
We are arriving at the point of no return.
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–Clint Richardson (realitybloger.wordpress.com)
–Thursday, February 2nd, 2012
This is an advanced lesson in government corruption – in legal, organized crime.
Covered here are the CAFR’s for the “Rim Of The World” school district in San Bernadino County, and for the California State Lottery.
With this information, anyone should be able to read their own school district CAFR which will be similar in its structure according to generally accepted government accounting practices.
I have had an amazing look into the paradigm of institutionalization ever since I began speaking negatively about the actions of Congressman Ron Paul. Out of the woodwork they came; people whom, without reason or rational thought, defend the career of one Dr. Ron Paul without prejudice or fact. And though I make every attempt to not attack Ron Paul in a personal way, only referring to his political motives and actions, and though I list him as someone I want on my own dream-team cabinet if I were elected President of this gigantic corporate structure called the United States… those people who refuse to see anything but the mature, angelic doctor guided by the hand of Jesus himself as presented in the propaganda images that have inundated the Ron Paul campaign have certainly attacked me.
I was and still am being taken by surprise by these ad hominem attacks on my personal character, the Strawman arguments regarding this virtually mythical man, the appeals to novelty, pity, and popularity regarding his campaign and the so-called “blackout” of it in the media, and the constant divergent red herrings that always lead to an emotionally fueled debate down a road other than the acknowledgment of the facts at hand. These fallacies have taken hold of otherwise logical folks and cleared the logic centers of their brains.
Of course, at no time has there been this kind of response from anyone who isn’t a Ron Paul supporter, which again leads me to the only reasonable comparison: Obama supporters – who are equally unable to ingest facts about their chosen candidate due to the prophet-like pedestal that Obama has been set upon by themselves.
Further research has now lead me to take upon myself more of this burden of personal attack by taking a closer examination of the Ron Paul “HR 459, The Audit the Fed Bill to the 112th Congress“, as described on Paul’s website.
Interesting to note here is that according to Ron Paul’s congressional (.gov) website, this bill’s predecessor:
“HR 1207garnered broad bi-partisan support with 320 cosponsors in the 111th Congress, and was attached (but removed in conference) as an amendment to the Dodd-Frank Financial Reform Bill“.
This is especially confounding to me as this would have meant that this “Audit the Fed” bill had enough votes through its co-sponsors (320) to pass in congress as its own free-standing bill, among the 435 congress-people that would have voted on this bill. A simple majority of 218 votes would have passed this bill. And so the question of why this perfectly stable bill was attached to another bill instead as an amendment to that bill, where it could then be swatted away like a pesky fly, comes into question.
What did Congressman Paul have to say about this on the same (.gov) website?
“I was very pleased that so many of my colleagues were willing to stand up for transparency and accountability in government by cosponsoring HR 1207 in the last Congress. I am optimistic about our prospects for a full and complete audit in the 112th Congress,” stated Congressman Paul.
In short, this was a colossal fail on the part of Ron Paul, allowing this bill to be arbitrarily removed from the law-books by allowing it to be transformed into an amendment instead of a bill! Whether or not this was a purposeful and preconceived failure is a question that I am not qualified to answer. But I will state that I believe this to be highly suspicious behavior for a bill that would otherwise be a sure thing.
It is also interesting to note that Ron Paul has sponsored another bill for this years session, H.R. 1496: Federal Reserve Transparency Act, 112th Congress: 2011-2012. Though this bill is identical to H.R. 459 except for the last paragraph, this bill has no co-sponsors whatsoever. What is most important to understand though is this statement, which is the description of the bill and what it strives to accomplish:
“To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.”
Sometimes we miss the most important things when we read them. Here it states “…the Board of Governors of the Federal Reserve System is audited…“. This tells us that the Board is already, in fact, audited. It also states that the goal of this bill is “…to reform the manner in which…” that already existing audit is reported to Congress.
In fact, the Federal Reserve Act, which is of course codified into U.S. (Federal) CODE, (12USC 225b) states clearly that this audit already exists:
Section 2B. Appearances Before and Reports to the Congress
(b) Congressional report. The Board shall, concurrent with each semi-annual hearing required by this section, submit a written report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking and Financial Services of the House of Representatives, containing a discussion of the conduct of monetary policy and economic developments and prospects for the future, taking into account past and prospective developments in employment, unemployment, production,investment, real income, productivity, exchange rates, international trade and payments, and prices.
[12 USC 225b. As added by act of Dec. 27, 2000 (114 Stat. 3028).]
(c)Public access to information. The Board shall place on its home Internet website, a link entitled `Audit‘, which shall link to a web page that shall serve as a repository of information made available to the public for a reasonable period of time, not less than 6 months following the date of release of the relevant information, including–
the reports prepared by the Comptroller General under section 714 of title 31, United States Code;(Note: This is the only thing that is amended by the “Audit The Fed” bill.)
the annual financial statements prepared by an independent auditor for the Board in accordance with section 11B; (Note: This is, in fact, the Comprehensive Annual Financial Report (CAFR), the actual audit of the Federal Reserve.)
the reports to the Committee on Banking, Housing, and Urban Affairs of the Senate required under section 13(3) (relating to emergency lending authority); and
such other information as the Board reasonably believes is necessary or helpful to the public in understanding the accounting, financial reporting, and internal controls of the Board and the Federal reserve banks.
[12 USC 225b. As added by act of July 21, 2010 (124 Stat. 2118).]
And so we can see that the CAFR, which is the over 500 page audit of the Federal Reserve, is readily available to the public for its consumption. So it is, in this author’s opinion, safe to assume that the men and women of Congress, including Dr. Ron Paul, absolutely have access to this audit.
The real question that must be asked here is whether or not the Congress is actually allowed to take the audited financial information reported in the CAFR reports into consideration regarding its day to day legislation and budget, since it is not specifically mandated to be given as evidence to the Congress itself.
Just as every local, county, and state government prepares its financial measures and budgetary requirements for the people and their governance through the carefully selected portion of their Comprehensive Annual Financial Reports, which they call the “budget report”, is this also how Congress operates? Does Congress also receive a hand selected budget report for which it must operate under, not being allowed to take into consideration what is reported in the Comprehensive Audit of government as printed in the CAFR (fund investments, real estate investments, foreign currency and precious metals holdings, securities, and so much more)?
This would finally make the whole shell-game make sense!
If the Congress is not allowed to take the CAFR (audit) into consideration, and indeed only legislates through a limited and hand selected budget report that excludes the majority of liquid assets held by the Federal Government and funneled out of the taxpayer base into 1000’s of various investment funds and portfolios, then we can finally understand why our Congress can never create a balanced budget! And perhaps we can then begin to understand why Congressman Ron Paul does not talk about the Comprehensive Annual Financial Report for government and its Federal Reserve Bank in any public forums, including within the halls of Congress.
A closer look at H.B. 459 reveals a startling conclusion… This bill does not create an audit of the Federal Reserve. That audit already exists, according to the writing of H.B. 459 itself, as well as its senate counterpart, S.202, sponsored by who else but Ron Paul’s son, Rand Paul, who was recently elected to the Senate.
In fact, the bill only refers to the Comptroller General under U.S.CODE, deleting only a few restrictions for what the comptroller general may audit from the Federal Reserve. This in no way creates a new audit or changes the current audit, or the CAFR.
Amazingly, while these cuts are not bad things by any means, the paragraph in H.B. 459 states the following:
Interestingly, it seems that subsection (f) has already been stricken, making paragraph (d) of these “Audit the Fed” bills redundant. However, in Ron Paul’s new bill H.B. 1496 – the one with no co-sponsors – this problem is addressed (see link above).
When we go to the U.S.CODE and read Section 714 of TITLE 31, we find the following:
(b) Under regulations of the Comptroller General, the Comptroller General shall audit an agency, but may carry out an onsite examination of an open insured bank or bank holding company only if the appropriate agency has consented in writing. Audits of the Board and Federal reserve banks may not include—
(1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
(3) transactions made under the direction of the Federal Open Market Committee; or
(4) a part of a discussion or communication among or between members of the Board and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.
So this entire subsection will be amended to read as the following:
(b) Under regulations of the Comptroller General, the Comptroller General shall audit an agency, but may carry out an onsite examination of an open insured bank or bank holding company only if the appropriate agency has consented in writing.
Now, so that we are clear here… if the Federal Reserve Bank is allowed to retain the power of consent regarding which banks or bank holding companies that the Comptroller General is able to audit, then this whole paragraph is completely worthless. And the 4 subsections that are being cut out of this portion of this “Audit” bill might as well stay in the bill, for the Federal Reserve retains the power after amendment to simply say no!
Only if H.B. 459, s.202, and H.B. 1496, which are almost identical bills and are identical regarding this amendment… only if these bills were to have cut out the statement “only if the appropriate agency has consented in writing” would they actually accomplish any significant change in the accounting and auditing structure afforded in this CODE. In other words, this is a complete fail once again for Ron Paul, and now for his son. Once again, I cannot say for certain whether or not this colossal mistake was purposeful or not, but I must state with perfect clarity that I am starting to believethat there is a devious and purposeful betrayal here, using the lack of careful examination of the very supporters of this bill and the bill’s blatantly misleading semantics to fool Ron Paul’s fans into thinking this bill will do anything at all to change the auditing that already exists within the Comptroller General’s office.
In effect, these bills do absolutely nothing. And I find that highly suspicious and deeply concerning.
If, after reading this article and checking the provided sources and the U.S.CODE itself, you do not come to the same conclusion that I have here today, then I must admit that I am deeply concerned for my America and in the ability for its people to think for themselves.
And so, once again, I sight this research as just one of the reasons that I am running for President of the United States.
Let the insults and fallacies begin!
Please comment below…
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–Clint Richardson (realitybloger.wordpress.com)
–Wednesday, November 16, 2011
A gentleman named Richard was kind enough to write and tell me his experiences about trying to bring exposure to the Comprehensive Annual Financial Report (CAFR). After repeatedly attempting to get the media and all major political campaigns to bring this information to the light of the people, his efforts were of course stepped upon.
Only if enough of the people (that’s you) demand that the Ron Paul Campaign For Liberty and other presidential campaigns start speaking of and divulging the government CAFR, including the Federal Reserve CAFR (the “audit” of the Fed) – this cooperative and complete cover-up will continue for all time.
As another reader commented… “If you are going to attend any Ron Paul speaking engagements, I suggest you should print off a copy of the latest Federal Reserve Annual Financial Report and bring it with you. Every time Ron Paul mentiones the Federal Reserve, you hold the report up over your head at arms length for 5 seconds to show him you know the Fed is already being audited. I’m pretty sure after the first speech of this happening, he will come to realize that people elsewhere are learning the truth as well. It will also show you how many others in the audience know the truth. If you get to shake his hand, another thing to do would be to ask him for his autograph. If he agrees, ask him to autograph the cover of the Annual Financial Report.” –John
I am posting Richard’s letter here:
Clint,
I just wanted to share with you my experience trying to get the word out regarding the CAFR scam. After I had been introduced to the idea by Walter Burien, I saw your excellent movie (the corporation nation, part 1), and that explained it very well. I am still studying the whole thing, and connecting it to many other parts of the puzzle I have been working on since about 1965.
But I understood enough to see what an effect it could have on society if this money were exposed, such as no more excuse for taxes, and no more municipalities using the excuse of being broke to cut services and raise fees, etc. So I started taking the time to call media outlets all over the country. This included TV, radio, newspapers, magazines, etc. It was a very interesting experience. In almost every case, the lower level employees that had no authority over anything were interested to learn more. But as soon as it got to any minor managerial level, the investigation of what I presented was stopped immediately and communication was cut off.
My theory is that so many aspects of this go even deeper than we imagine, and all these media channels have already been threatened that they will cease to exist or worse, if they mention certain things, and CAFR is one of those. I think they all value their salaries, and will not even think of risking everything just to be honorable and inform the public. They are more like actors, just writing and speaking about what they are told is acceptable.
Then I started calling political offices all over the country, perhaps 100 of them or so, to see what their attitude would be. It was pretty much the same. Some seemed interested at first, but soon cut off communication. It was pretty obvious that virtually all of them, regardless of party or political point of view, had been threatened or somehow scared into staying within certain limits.
As a last effort I called Ron Paul’s office, not once but perhaps 10 or 15 times. Many of the politicians are doing the excuse that if you are outside their district they will not even talk to you, yet they vote on bills that effect everyone. Complete hypocrisy in that policy. However, Ron’s office did not do that, and was very polite and the people there actually talked to me. That’s why I called them multiple times.
Many staffers were interested and may have watched the movie. However I was not able to get Ron himself to do anything with it publicly. I think he is a good man and honorable, and not under the direction of our rulers, but I also believe that getting assassinated is not his goal, and he may realize that could easily be the result of trying to bring up this topic. I have great appreciation for Ron for working on things like abolishing the fake “federal reserve,” the IRS, the income tax, withdrawing from criminal organizations like the UN, many unconstitutional treaties that are very bad for us, pushing strongly for health freedom which is in great danger right now, and just generally wanting to take government all the way back to its legitimate limits, eliminating much of what it does now, and he is the only major candidate even talking about these things. He has a very consistent and strong voting record for individual freedom, which I totally support. But I believe he knows about CAFR and knows also that his career would be over as well as his ability to continue his work, if he mentions CAFR.
I am still looking at other ways to expose CAFR so widely and quickly that it could not be stopped, something practical that could really accomplish this in our real life situation we are facing now. I am sure others are trying to figure that one out as well. I am at least bringing it to the attention of others within my circles and it has been the first exposure for everyone I have mentioned it to. Thanks for helping me understand how it works, and especially for the detailed reports on specific states and cities, the examples are very helpful. –Richard
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–Clint Richardson(realitybloger.wordpress.com)
–Sunday, November 6th, 2011
I get the impression that this presentation might make more enemies than friends. Pointing out these things about Ron Paul is a long time coming. And the truth often hurts.
But not telling the truth and going against popular “opinion” is the true measure of a man.
Have you read the Federal Reserve Act?
Did you know that the “dollar” is actually partially backed by many millions of ounces gold?
Do you want to know the truth?
Or are you more comfortable thinking about the bank that is the Federal Reserve as a monster and not just a bank?
I’m betting that 99% of those who wish to end the Fed have no idea what it actually is, and have never even taken a glimpse at the CAFR or the Federal Reserve Act.
Well here it is…
–Clint Richardson (realitybloger.wordpress.com)
–Sunday, October 30, 2011
REALITY BLOG 