We start this morning with one of the most useful things you can do if you would really like to see government cleaned up. Send a dollar (or more) to Walter Burien or better sign up for his email posts and then send something.
So much for the pitch. Now let’s get down to the business points and why sending Burien actually helps.
Burien is the world leader in exposing the fact that government keeps two sets of books.
Yeah – pretty shocking but absolutely true. Here’s how it works.
1. Governments keep a set of books used to “sell the public on how poor government is.”
This is called The Budget. This is the set of books that politicians wring their hands over. The wail and gnash their teeth, get emotionally worked up. Even threaten the end of the world if you don’t pay for taxes.
2. The second set of books is what’s really going on. This is disclosed every year – by law – as a governmental entity’s Comprehensive Annual Financial Report. CAFR for short.
This second set of book is what reveals the True condition of government finance.
This of this as being like a grocery list. You are government and you have a shopping list.
You put on the shopping list: New Porsche Panamera, a 65-foot Hatteras, a loaf of bread, gallon of milk and a dozen eggs.
You walk out the door with a “shopping list” which will come to about $1.3 million dollars. This is the budget. You ask me to your budget by levying a higher tax on me.
Now you go to the store.
You come home with eggs, milk, and oddly – no Panamera and no Hatteras. Still, you insist on keeping the tax money that you foisted off on me. So where does the “extra money go?”
Into government’s pocket. At all levels.
Point is, Walter Burien has been pointing out the ever-increasing gap between budget hold-up like demands of government on the one hand. And he contrasts that with the CAFR statements which disclose that mostly, government is really filthy rich. They just cry poor all the time.
Here’s the New Problem
Thanks to his educational work, more and more smart people are catching on to the Government Shell Game. So what happens? Government is now in the process of starting to “cook the books” on their CAFR statements.
Burien sent out an national post overnight which popped up in my email: Here is the key part of it:
“What is “ESSENTIAL” for you and all others in any local government venue to do is: Based on their “gross income, not net” last year (and go five years back) and then project their income based on projecting out 35-years to cross match with what they say their liabilities are…!
If that was done I have a feeling that viewing projected income 35-years out without ANY tax increase, they would be in the black by a BIG margin and NOT short of funds.
All local governments across the land are saying they are short of funds today because they are doing the same thing of projecting out liabilities 35-years cross-matched with projections of income out 1-year. So the same applies for every City, County, School District, University, Enterprise Operation across the land…
Detroit in declaring bankruptcy did the same thing right under the local public’s and nations view by promoting the liabilities out (one side of the coin) 35-years and not the income (the other side of the coin) for the same and got away with it. Detroit was sitting on 18-billion in liquid investment assets at the time when they did this. But they said their liabilities were 27-billion (projected out 35-years) claiming to be 9-billion short today…
Please share this communication with other activists in your state and ask them to do the same.. Want to light a big fire under the corruption? Then make sure everyone Statewide sees this detailed outline communication As Soon As Possible. (A.S.A.P)
Sent FYI and Truly Yours,
Walter Burien – CAFR1.com
P. O. Box 2112
Saint Johns, AZ 85936”
I was a reporter for a very long time and I saw this crooked crap all the time. The most important thing you can possibly do is to attend budget meetings and first read the CAFR statement for the entity involved.
What you will find is? (Try to look surprised, please) A crooked set of books designed to sell the continuous expansion of government.
Because we’re not really broke. It’s just easy to hold up taxpayers – so why not?
Every time you read a story about government being poor, broke, needing to raise funds, go read the CAFR reports first and make sure to ALWAYS read “Notes to the financial statement” before you read anything in any financial document including and especially corporation reports, as well.
Speaking of Government Finance
The new budget ceiling lifter was passed last night.
Cruz, Paul and Rubio all voted against it. But in the end, the Obama wing of the corporate sell-out party (repugnicians) carried the day. John Boehner did his typical snow-job pretending it was for the troops and the like.
It’s not. Go read CARF statements and what you will see if the tail lights of democracy fading into the distance. The Corptocracy wins, every time. When you own two political parties, it’s not tough to do.
Then there’s the new money supply report from the Federal Reserve. Looks like the money printing is back in high gear. Look at the 3-month line and check out the print rate on M2:
With friends like this, who needs what? It does seem to me like this does increase the odds of a rate hike coming and – like we hadn’t noticed – all that cash sloshing around is blowing up the price of stocks.
Surely, you’re not so naïve as to think this is simple supply and demand? Heavens no, it’s so much easier when you can tilt the tables this way and that.
Why I Don’t Trust Bernie
Sure, a lot of what he talks about makes sense. But when Bernie Sanders comes out and says he’s going to lead a campaign against Islamaphobia, I get to thinking his research isn’t deep enough.
Since lying to infidels is clearly an approved tactic, Bernie may have been taken in, but when comes down to it “kill or convert” really is terrorism, so Sanders is on thin ice with millions on this simplistic approach.
Gotta wonder if “love your enemy” works so well, why the Soviet gulags were always full?
Could it be that corporatism sees the benefit of a longer-term merger into Islamic government because it’s even more intrusive than ours has become? Oh dandy…But once you get all the marbles, what better than an anti-progressive group to keep them under control?
Let’s not go there…
Personal Saving and Other Delusions
If you believe that paying off a credit card is “savings” then sure, you can believe the personal income and expense report just out from the Bureau of Economic Analysis in the past few minutes:
Personal current taxes decreased $0.6 billion in September, in contrast to an increase of $5.4 billion in August. Disposable personal income (DPI) — personal income less personal current taxes — increased $19.2 billion, or 0.1 percent, compared with an increase of $49.5 billion, or 0.4 percent.
Gotta think that one through, but this one is pretty silly:
Personal saving — DPI less personal outlays — was $642.8 billion in September, compared with $637.3 billion in August. The personal saving rate — personal saving as a percentage of disposable personal income — was 4.8 percent, compared with 4.7 percent. For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal Reserve Board’s financial accounts of the United States and data on changes in net worth, go to www.bea.gov/national/nipaweb/nipa-frb.asp.
This number is the poster child for stupid economic reports. Here is the math:
Savings in September was purported to be $642.8 billion.
The US has about 321 million people – including those in school, in jail, in the military – old folks home – everyone.
The government claim is that EVERYONE saved $2,002.49 last month. Sure it was, you betcha.
You could argue that the principal part of a house payment might be something like savings. But the non-interest part of a car payment?
One of the dangers of business school is to check your work for “reasonableness.”
This one is an epic fail. Not that it matters though…
The Market’s Buying It
What is our theme this morning? Crooked accounting and systemic corruption at all kinds of levels.
Yet in the spirit of 1928 through late summer of 1929, the market is playing on with futures up another 35 in the pre-open.
At what point to we transition from Great Nation to deluded idiots? Or was that the exit we missed?
Stick It In Your Ear
As a home studio owner (Drums, Voices, Magic) I thought you might appreciate a link to the opening day edition of the Audio Engineering Society’s 113th convention which is going on in NYC today.
Let those with ears hear…
Keep an Eye On
The World Court is taking up the Philippine’s case against Chinese island-making in the South China Sea. This could lead to conflict down the road…so yes, do follow.
Daylight Time Ends this Weekend
Daylight Time ends Sunday. Set you clock back one hour Saturday night.