Sunday, November 11, 2012

US Government's Dual Accounting System and Their Enormous Hidden Surplus

Our nation was setup as a Republic supposedly governed by the "Rule of Law" in order to protect wealthy and powerful individuals and their property from the tyranny of government and the tyranny of the mob. It is not a democracy as we're so often told. But what they don't tell you is that our nation is a massive and all-powerful corporation, complete with a Dun and Bradstreet number(s). Not only that, every single agency, county, city, township, municipality, etc., is also a corporation, also complete with Dun and Bradstreet numbers.

While some may brush this aside as the government's need to act as a corporation in order to do business on a large scale--to purchase/to supply/invest--it does not explain the two sets of books the government keeps: public and "public".  The public budget, we're told, has such a severe deficit and that is used as justification for cutting basic human services to the 99% of taxpayers who have sacrificed a good portion of their paycheck to gain these services when most needed. However, what you're not told is that this public budget only records approximately only one-third of our tax money, which brings us to the "public" budget, where the other two-thirds is reported?

As I've posted about before: here, here, here, here, here, and here,  hidden in plain sight, silenced from public disclosure, it's called the Comprehensive Annual Financial Report, the CAFR. These CAFRs, various “investment funds,” “dedicated funds” and “pension funds” show the billions, possibly trillions of public dollars that are not available to us.

"The scam works something like this: Anything that was a cost or expense for public services (the traditional side of the Annual Service Budget, such as the Department of Transportation, health and welfare, etc.) was reported on the Budget where public taxes paid 100% of the bill for those services...

However, any governmental agency that was a profit center (the Port Authority for New Jersey, the New Jersey Turnpike, an investment account, etc.) that generated non-tax revenue was “restricted by statute” from being reported in the Annual Budget. Why? Because the state legislature passed laws to prevent reporting the income from profit centers on the Budget. Instead, income from these profit centers was disclosed only on the CAFR.

But that disclosure was not immediately apparent. For example, when Mr. Burien looked for New Jersey’s 1989 “gross cash receipts” in the CAFR, he found the figure buried on page 174, under the “Waste Water Treatment Trust Fund.” It showed the amount of the total cash receipts for 1989 from all 69 autonomous state agencies and departments was almost $87 billion. In other words, New Jersey was charging $87 billion to provide $17 billion in public services. New Jersey citizens were paying $5 for every $1 in services they received, and the state was pocketing the other $4 as “profit”.

The CAFR also reported the state owned $32 billion in common stocks – but this figure was footnoted. The footnote revealed that the stocks were valued according to their original purchase price, not current market value. In other words, if the state bought a stock in 1968 at $1.25 a share and it’s worth $3,000 a share now, they still report it on the CAFR as worth $1.25 a share. Burien determined that the true market value for the “$32 billion” in stocks reported on the New Jersey CAFR was actually about $70 billion.[...]

[As of 1998] “CAFR reports indicate that the composite totals for all government
(Federal, state, county and city) ownership of publicly traded stock exceeds $32 TRILLION (53% of the total ownership of all listed stocks), $8 TRILLION in insurance company equity (should we be surprised by high priced mandatory auto insurance or unaffordable health care?), and $5 TRILLION in Bond Surety Escrow Accounts for future liability of existing or potential debt."
So while our legislators cry poverty and bankruptcy, proclaiming "austerity for the masses" from every rooftop, the truth is our government has a surplus of billions, if not trillions, in very profitable investments, unaccounted for in the budgets that  are disclosed to a very uninformed, and all too trusting We-the-People. That's right. Our federal and state governments own at least 53% of the stock in all publicly traded companies. This, of course, allows our government, at all levels, to wield enormous power over the stock market, and our economy in general, all the while casting "We, the People" into an ever-growing black hole.

Take the state of Washington's fiscal crisis and their proposal to use state higher education funds to gamble in the derivatives markets that was on the ballot--Washington SJR 8223, which thankfully did not win--once again and may be coming to a state near you. Many of these government investments are in toxic investment instruments such as collateralized debt options (CDOs) set on unstable “trading platforms,”  set to collapse in the near future. These toxic investment instruments are based on the purchase of packaged debts, and constitute legalized gambling on the stock markets with billion/trillions of our money using the most irresponsible methods imaginable. (1)

Moreover, there is a little known agency of the Federal Reserve called the Depository Trust and Clearing Corporation (DTCC) or Cede, INC. Notice, the website link is .com, not .gov. It is a private, for profit corporation as are all the government agencies. What is the DTCC? Well, once you invest money, as an individual or institutional, and it's registered with a stock broker, which is required, that money or investment is ceded--property of--to the DTCC. In other words, according to corrupt corporate statutory law, you no longer own that stock, you are a beneficiary.

(1) Now is the Time -
Rebecca Campbell, who owns this website, filed a lawsuit on behalf of all of the peoples of the world so that they might hold their own governments accountable for the crimes that these governments have perpetrated in their names against other peoples, as well as against themselves.

7 comments:

Sherlock,  16:36  

Those are costumes [referring to Wall Street bankster attire]I loathe bankers. They rigged the roulette wheel of commerce, very nearly destroyed the world's economy, and they still think that if they dress in suits, they'll be treated like respectable folk instead of the crooks they really are.

Sherlock,  17:35  

Typical. Every stuffed shirt that wants to pass for erudite has shelves full of unread books, none of the spines ever cracked.

It has its costs. Learning to see the puzzle in everything. They're everywhere. Once you start looking; it's impossible to stop. It just so happens that people and all the deceit and delusions that inform everything they do tend to be the most fascinating puzzles of all. Of course they don't always appreciate being seen as such.

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Roth's stepchild 00:21  

Uh, sure thing, Sherlock. Thanks.

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