PM
For your awareness and action!
CAFR Scam On American Taxpayers
Continues!
By: Walter Burien
4/5/2003 : 4:07:32
The Comprehensive Annual Financial
Report (CAFR) is local government's Annual Financial Report, which is the standard,
starting as of 55 years ago. The true and more complete accounting of local
governments.
Local governments promote the 'Budget'
each year but hold back disclosure of their actual annual financial
report...which includes their aggregate net worth and total gross annual
income.
A PERSONAL EXAMPLE:
If you have a budget to operate your
house; Let's say your budget is $30,000 per year, of which you put $30,000
aside to cover your budget and this year you spend $40,000 that now means you
have a $10,000 budget deficit. You also are telling everyone you are $275,000
in debt already from the past mortgages / bonds/ debt, So what are you going to
do to make up that $10,000 shortfall?
A.
Knock on your neighbor's door and say I am short $10,000 on my
budget, and I am $275,000 in debt, can I borrow $10,000 from you?
B.
Sell your house and possessions to raise the cash to meet the
$10,000 shortfall?
C.
Cut back on half of your budget expenses next year ($15,000) and
hope you catch up by the following year?
D.
Ignore the $10,000 shortfall and hope someone else bails you out
next year?
Does the above sound familiar when
listening to your local government official(s)?
If you were a shareholder in a public
Corporation, and that corporation said they had a shortfall on their budget
this year and they could not pay dividends, and the value of your stock in
their corporation was being cut by 45% of value, would you look at their budget
report to verify the standing value of the corporation, or would you look at their
Annual Financial Report? You would look at their AFR of course.
In fact, a public Company's Annual
Financial Report is required by SEC law to be provided to every shareholder. A
local government's Annual Financial Report is the Comprehensive Annual Financial
Report, or CAFR for short.
Now back to the above example of a
$10,000 shortfall in your operating budget.
If you had a Financial Statement
prepared in accordance with accounting standards and existing laws that apply,
your financial statement as shown for this example would show your $30,000
operating budget for your house and let's say the following:
1. Your personal gross annual income
------------------------------$
75,000
2. Your investment assets---- (you have
invested for years) ------$ 1,400,000
3. Your advance tax liability accounts
-(tax liability 20K/year---$ 300,000
4. Your self-insurance funds --- ($30,000
required) --------------$ 215,000
5. Your advance forward debt repayment
account -----------------$ 350,000
6. Your IRA account --- ($400,000 needed)
--Balance -----------$ 2,275,000
7. Corporate income kept separate from
your personal income --$ 515,000
8. Your openly disclosed total (gross)
debt----------------------- ( $
275,000 )
Now, upon review of your Financial
Statement we have learned:
a.
Your true debt from item 8 above is: [$275,000] minus item 5
above, $350,000 is a $75,000 (positive) Or a (NET) asset of $75,000 and NO
DEBT.
b.
Your true total gross income from item 1 above is $75,000 plus item
7 above $515,000 gives you $590,000 in TOTAL GROSS INCOME
c.
Your tax liability is $20,000 per year as shown in item 3 above.
Your advance tax payment account you established to pay your future taxes has a
balance of $300,000, this gives you a standing positive asset of $280,000.
d.
Your self-insurance fund has $185,000 over your true
liabilities, or another asset of $185,000
e.
Your IRA account has $1,875,000 over the required $400,000 in
funds needed at your retirement.
f.
Your investment account(s) have the ability of paying for your
house-operating budget, and you would still have at a 10% return, $100,000 left
over after paying for this year's $40,000 house operating budget.
g.
Your total Net Worth is: 75K + 590K + 280K + 185K + 1.475K +
1.400K + 100K minus 40K of this year's actual annual operating budget, that now
gives you a Net Worth of $3,975,000
Upon review of your financial statement, and knowing that others
have reviewed or are looking to review your Financial statement. People that
you approached to borrow $10,000 from, as you cried poverty, do you:
1-A. Quickly spend your excess net worth
on yourself, family, and friends to justify being $10,000 short on your
operating budget?
1-B. Hire a good accountant to shift and
move your assets somewhere else so that they don't appear on your financial
statement so that your report of being $10,000 short on your budget appears to
be correct?
1-C. Exert influence to change the accounting
standards so that the Financial report you prepare does not reflect your true
net worth and thus you can show a negative of $10,000?
1-D. Pay the $10,000 dollar budget
shortfall from your $3,975,000 Net Worth?
1-E. Ignore the fact that others now know
about your true net worth and hope the problem of this knowledge disappears or
has no impact on you?
1-F. Create a serious distraction that is
so over powering and prevalent, that no one will be able to divert attention
away from the promoted distraction to be able to even glance at your true net
worth, let alone address or take action towards the issue?
Well, Folks...
National Public disclosure first began
coming out as of June 8, 1998, exposing how all local governments promote their
'Budget' while holding back, for over 55 years, their true Financial Statement,
the CAFR.
It took up until 2000-01 before enough
people were reached to have significant impact on this game of financial cat
and mouse. Many began comprehending what was taking place right under their
noses each and every day.
It appears that Government's response
to the public's newfound knowledge that is now developing has been to follow
steps 1-A, 1-B, 1-C, 1-F above with emphasis given to 1-F.
MAKE SURE TO SECURE PAST ISSUES OF THE
CAFR FROM 1999 AND BEFORE. COMPARE A 1974 CAFR TO WHAT YOUR LOCAL GOVERNMENT
HAS DEVELOPED INTO BY VIEWING THE STATISTICAL SECTION FROM THEN AND NOW.
THE GROWTH OF REVENUE TAKEN BY
GOVERNMENT(S) HAS BEEN OBSCENE.
YOU WILL NOT GET A STRONGER WAKE-UP
CALL IN YOUR LIFETIME.
The personal example above is
exaggerated to give a clear showing of some techniques used. There are many
techniques employed to turn an asset through investment or claimed liability
into a 'debt' so that it is not shown as an asset.
The bottom line is, that if a public
corporation played the same shell game(s) with its share holders, holding back
disclosure of its true Net Worth, every one of the directors that participated
would be indicted by the SEC, convicted, and sentenced to very long prison
sentences in a Federal penitentiary.
Here we have our local governments
across the land doing the same thing and they are in charge of policing,
investigating, and indicting themselves.
Will those responsible for this theft from
you in the past be held accountable? Probably not.
Can those that are currently stealing
from you be held accountable? Probably yes.
Can the situation be corrected where in
the future those that steal in this fashion are held accountable? Definitely
yes!
WHAT NEEDS TO BE DONE!
1. Full public review of the existing
Net Worth's of all local government entities, on a case-by-case basis.
2. A standard must be set in place
limiting government's personnel and revenue holdings to a specific and set size
in relativity to the population and total gross income of that population. Ten
Percent (10%) would be good standard.
When limited government in America was
started, the government personnel standard maintained for over 100 years was 3%
to 5%. Currently, in the state of Washington, 1 out of every 4 people in the
work force is a local or federal government employee receiving an average
annual salary of $30,100 which gives an allocation in the state retirement fund
for that government employee of about $600,000. Socialism / Communism under the
guise of a free market capitalist system, surely does make the socialists and
communists very secure and wealthy, at your deception and expense! They now own and control everything.
SOURCE: Statistical section of the 1999
Washington State CAFR.
Tennessee State government increased
their gross income by 600% in 15 years while the non-government workers
personal income increased by 68% for the same time period. The total population
increased very little.
SOURCE: Statistical section of the
Tennessee State CAFRs
3. When bringing government back to a
standard by mandate of the public, the Net Worth's of those local governments
will be utilized to make government self-sufficient utilizing the investment
principles that are well in place and proven for those local governments to
meet their annual operating budgets from annual returns without any form of
taxation needed. Nada, none, zilch.
A good pension fund management team can
write a prospectus that is ready for implementation of a TAX RETIREMENT FUND and accomplish this for any
State, City, or County. We as workers participate with a Pension Fund to pay
our salaries upon retirement. The same method can be applied to meet government's
annual operating budgets and thus retire all taxation. Again, this is basic
fundamental application, and it can happen overnight if applied with a strong
hand by public mandate. Keep in mind they have for over a 65 year period showed
an exemplary track record of managing hundreds of billions of dollars
(Trillions). THEY have proved the application for this purpose.
NOTE: As the public 401K plans got
eaten alive over the last 2 years, government investment management on the
general front faired quite well. The management teams were and are professional
short players using derivatives. (They make big money as markets collapse.)
Look at the State Pension Fund CAFRs for the years 2001 and 2002. On average
they did quite well on performance
compared to the dismal performance of the public's 401K plans. (Look at actual
market performance, not what is depicted as the "NET" overall gain or
loss for the year.
4. The general public will gladly
authorize large performance bonuses to the government financial managers solely
for being within compliance of the stated objectives of the TRF and maintaining
a public approval rating as to services provided. (Gives the Foxes plenty of
chickens to eat, and now for all of the right reasons.)
Can steps 1, 2, 3, and 4 be
accomplished above? Yes, they can!
Can they be accomplished without civil
war and bloodshed? Hopefully yes.
Who would be the best allies to the
general public to put this into motion and secure its implementation? The
Insurance Companies, Investment Houses, and the Commercial Banks. (They
assisted out of greed in the building of government's wealth over the last 65
years, they will do the same for implementation of the TAX RETIREMENT FUNDS to benefit the public, and
for the same reason)
Will these institutions willingly help?
Only if the ship is at the dock, and is ready to sail without them.
Should the general public ask the
government, or any government officials to help with the implementation of the
standard? No! The current and past administrations have held back their
financial records, and true disclosure of their Net Worth. You do not ask foxes
to help secure the hen house from foxes eating chickens.
The foundation of the American Public
is the Ranchers, Farmers, and private Workers of this land. Most have been too
busy supporting and feeding their families to have become foxes. A consortium
of the general public must target, prepare, and implement the standard in the
chosen county by forced mandate and not by choice of the foxes.
When will the standard begin? The hour
and the day The People make it happen!
If the standard is implemented, will we
the people be better off? Oh, yes indeed!
If the standard is implemented, will
the country be better off? Anyone ever hear of the millennium, a thousand years
of prosperity for all? The answer is definitely yes.
All that exists on this planet started
with an idea, then the implementation of that idea with effort and resources
applied, and then the fruits of that idea are harvested.
Today, is a good as day as any to make
it happen. Well, ready to get started?
Those reading this have several
choices.
A. Reflect briefly, and then see if
there is a good movie playing that you can watch to entertain you.
B. Reflect briefly, then say to yourself,
the problem is to big, it will never be able to be corrected, why bother.
C. Reflect briefly, and if you are a
fox, send this communication to all the other foxes so that they can prepare a
strategy to prevent the implementation of the standard.
D. Reflect briefly, and say to
yourself, I can't understand this, and channel hop on your TV.
F. Reflect, digest, and then build a
coalition of responsible individuals from your community, with resources to
push forward to make the standard happen.
NOTE: It is not important as to which
county or state is the first, but it is important that the first be implemented
into the guidelines of the standard as soon as possible. Keep in mind that many
existing Taxpayer organizations are run by and were started by the foxes for
the covert purpose of; To control the Chickens and the Hen house so that
business as usual would continue for the Foxes. Sometimes it is easy, and some times it is hard to spot Foxes in
disguise wearing feathers and a beak.
THEY DO WHAT THEY DO, DUE TO THE
MONEY ENVOLVED.
The People must act in unity, with one
common goal until the standard is in place and not allow ourselves to be
distracted (or killed) by the foxes.
Yours Truly,
Walter J. Burien, Jr.
P. O. Box 2112
St. Johns, Arizona 85963
eMail: mailto:WJB@CAFR1.com
Tel. 928 445-3532