Debt increased as a "counter-balance" vehicle for Government investments
    by Walter Burien - 09/02/08 - http://CAFR1.com
   
       LET'S TALK


IN REPLY TO STEVE STAVRO - ISSUE: SCHOOL DISTRICT DEBT


Steve:

My first question would be: "How much of that debt is funded directly or indirectly with the state's / other Local government's own investment assets?"

Many local governments now are self funding their own debt.

EXAMPLE: You give me five-million dollars and told me to start a mortgage company. Then you said you were going to buy a five-million dollar property and you told me to underwrite your mortgage and charge a high interest rate.

Well, if you told your friends and business associates: "Gee, this five-million dollar mortgage (disclosed debt) is killing me, and they are charging me 12% interest, Ohhhhhhh, I don't know if I will survive..."

Slight tad bit of misrepresentation if you don't mention it is your own five-million dollars and you are collecting the 12% through me!

So, what I would tell all is: "Get a listing of investors for that debt and do a little reverse looking to see who's investment capital (directly or indirectly) it is? The local government's general purpose / proprietary / enterprise / government institutional funds,  or if it truly is the private sector's". If you tried to put forward this comprehension and organized the people for an effective reverse search, you stand a strong probability the government boys behind it would make great efforts to keep it from happening.  Big can of worms for them there.. search.

It would be very interesting to come up with a number as to: What percentage of that debt could be discharged against the same local governments own investment assets underwriting that same debt??? You see, the government loves to lock the public into repaying debt thus guaranteeing themselves a good rate of return over the years on investment assets the public never knew existed in the first place. But then by design, the public was and is intentionally misdirected away from looking. They were not supposed to comprehend and know, DUE TO THE MONEY INVOLVED! This is government's way of indirectly taxing the people by creation of debt by the local governments that they are locking the public into repaying to guarantee their own investment return. Your Government at Work! (for themselves that is)

Ask for:

  1. The CFO contact info.

  2. Contact info for the group (and the person in charge) that manages the trust funds and other pooled investments for the state.

  3. On-line Location of the CAFRs for the state and the board of administration (of the investment pool of trust funds and other money)

  4. Amount invested by the state government in government debt instruments from the pools for each of the past 5 years.

  5. Amount of return on the investment for each of the 5 years (percentage growth, and amount of money earned)

  6. Amount of debt owed by the Boards of Education for all the counties in the state, and for the state BOE


Truly yours,


Walter J. Burien, Jr.
P. O. Box 2112
Saint Johns, AZ 85936


Tel: 928-445-3532


Website: http://CAFR1.com


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Pension funds pay a salary and benefits at retirement. Any local government can be restructured to meet their annual budget needs "Without" taxes. TRF (Tax Retirement Funds) paying for every City, County, Stateís annual budgetary needs! This now makes the people the true owners with government being the true service provider. Government has already shown that a TRF works by example through the management of their own combined multi-trillion dollar pension funds! CAFR1 says: Make it law and make it so!
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STEVE STAVRO'S COMMUNICATION TO CAFR1
From:  "Stavro, Steve"
Subject:  FW: BOE Financials
Date:  Tue, September 2, 2008 10:06 am
To:  WalterBurien@cafr1.com


Walter,

I thought Iíd share this with you.

This is a link to our county Board of Education financial's http://schoolwires.henry.k12.ga.us/15161035102120207/blank/browse.asp?A=383&BMDRN=2000&BCOB=0&C=59702

The property assessments are being rolled back by the state of Georgia (property values are declining) and the Board of Ed wants to increase the millage rate to keep taxes the same.

Bottom Line:  we get no tax break.

Many are just waking up to this and now we find out that the debt is huge -- $503+ million in long term debt.

 

Steve

 


From: Adams, Gary
Sent: Tuesday, September 02, 2008 12:56 PM
To: Stavro, Steve
Subject: RE: BOE Financials

 

Looks like the BOE has an obligation to pay back 503MM over the next 18 years. I find it interesting the county always talks about their bond ratings---if you take the interest / Principle, itís pretty bad. My next question: Is the interest toward the years principle or past years?

Gary L. Adams


 

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