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I said all that as a prelude to the information that will be contained on this edition of the Study Page because it is imperative that you realize the credibility of this information and the ramifications, if it is taken seriously by enough people. I have researched this subject for a couple of years now and believe it to be accurate beyond a shadow of doubt. I do not know any of the people I will refer to or link to, but I have read what they have to say and have heard some interviews with them. The first thing I must say is that this information should be widely known and widely circulated, but it is not. There are undoubtedly many, many people who are aware of it and most have chosen to keep the information to themselves. If you never believed in a mass media complex conspiracy before, you must come away from reading this with an absolute certainty of it. Deb V
The Comprehensive Annual Financial Report (CAFR) Exposed
This is a rather lengthy transcript of the CAFR video as aired on public access television (approximately 32 pages).
Walter J. Burien, Jr. ©December 17th 1999
I am including the ordering info for this video for your convenience at the end of this transcript. Deb V
This transcript may be copied, published or reproduced in it's entirety only. Transcript of the nationally distributed CAFR video:
Introductory text on screen:
The Biggest Game In Town is of major importance to every American. You are encouraged to video tape it for further review and sharing with others.
This program is a comprehensive disclosure of governmental financial operations that have been deliberately concealed and kept from the American people by the governmental financial agencies as well as by the syndicated media. The scope is huge; the personal financial impact of vital concern to all.
Do the people of this great land own the government or do the collective governments think they own the people?
Is it time to mandate "effective action" through united efforts of the American people?
Can David still fling the rock true and straight to hit its mark and defeat Goliath?
Are you aware that 30 years ago only 8-12% of the financial activity and ownership of our nation resulted from the activity of the government, but today the figure is conservatively 48%?
We the People have been victimized by the largest organized syndicate on the face of the Earth. The Constitution declares that all political power is inherent in the people and that all powers not directly and specifically delegated to public servants remain with the people.
Our public servants are accountable to us and it's time we hold them accountable with genuine liability and cause the profits resulting from governmental activity to directly benefit the people!!!
**************************Walter Burien ; Narrative******************************
Good morning. What we're going to be talking about today is what I've called The Biggest Game in Town. My name is Walter Burien. I live in Prescott, Arizona. I became aware of something approximately 10 years ago, which changed my life. I will give you a little analogy of how I learned about the complete financial takeover of the wealth of this country by composite government.
Back in 1989 1 lived in New Jersey. There was a governor by the name of Jim Florio who was running for office under a no-new-tax platform. He won, and as soon as he got into office a $2.8 billion tax increase was enacted---the largest in the state's history. It's obvious that the public was not too thrilled about Mr. Florio's actions and one of the local radio stations, 101.5 FM, started doing some rabble-rousing, taking calls from listeners on examples of waste and misspending in government. My first two days I was listening, and I heard people calling in with examples of $5,000, $15,000; $85,000 was the highest figure I heard. I pulled out the State of New Jersey's budget report, which is the only thing I was aware of at that time. They had $11 billion on budget, $6 billion off budget; the total annual service budget was $17 billion a year. I called in to the show and I made the comment, "Come on, guys; you're missing the whole point. The highest figure I heard was $85,000. The state's dealing with billions of dollars." I read off the figures. I said, "If there's fraud, waste and misspending taking place, it's taking on tunes of tens of millions, if not hundreds of millions of dollars." The DJ at that time challenged us, the listeners, to start a tax protest organization to repeal the $2.8 billion tax increase.
Ten of us got together the next day and incorporated a group called Hands Across New Jersey. We scheduled our first rally ten days out from that point. And basically, with the help of 101.5, we had 115,000 people converge on Trenton from all the shore points in New Jersey, effectively shutting the city down. Now, during the course of organizing that rally, I took over looking at the budget, revenue and finance of the state.
For about fifteen years I was a Commodity Trading Advisor, I was one of the first tenants of the World Trade Center, back in 1979. And large figures didn't bother me-a hundred million and one dollar - there was no difference. So when I started looking at the figures on the New Jersey budget report, as I mentioned, there were $11 billion on budget, $6 billion off budget, it showed a net available of $25.6 billion. Then, I asked myself the number one question that IRS asks in an audit: What are the cash gross receipts? I started noticing the large cash cow groups in state government - the New Jersey Turnpike, Garden State Parkway, Port Authority of New York, and New Jersey. The revenue was not inclusive in the budget report. I didn't see any large returns from investment funds on the budget report. And I said, "They have to have two sets of books here. They're not accounting for the whole picture". The director of the budget at that time was an individual by the name of Richard Keevy. He was on vacation till the following Tuesday of that week. I found out who his lower assistant was, called in, and the conversation went just like this:
I said, "Hi, this is Walter Burien. I'm working on a report for Richard. Have to have it done by Tuesday when he gets back from vacation. I need all the figures on the autonomous agency accounts, interest accounts, investment accounts. And the reply I got was, "Oh, you want the Comprehensive Annual Financial Report". Bing!!! First time I ever heard that before in my lifetime. Got it that Friday. Started crunching numbers. It showed a total liquid investment funds of $188 billion dollars --- $188 BILLION DOLLARS---of which common stock ownership $70 billion, on loan to public and private corporations $10 billion, insurance company equity participation, $14 billion, on loan to public and private corporations $10 billion. And I started looking for the total cash gross receipts. As I mentioned, what IRS would ask for in an audit. I found it on page 174. Now this is 1989's Comprehensive Annual Financial Report. On page 174 under Cash Additions, all agencies, all departments, all sources, here's a state with a declared service budget of $17 billion, who was bringing in $86 billion, 799 million in cash. I saw that figure and instantly realized the definition of syndicated organized crime. Here, we had a representation to the public that the state of New Jersey was bringing in $17 billion when in reality, they were bringing in close to $86 billion. They had $188 billion in liquid investment funds. I also learned the principle of operation that day. Anything that was a cost and an expense, traditional service side of the budget report, health and welfare, human services, motor vehicles, was left under the budgetary basis, and the public footed 100% of the bill for 100% of the services. Now, anything that was a profit center, had the ability of being a profit center, large investment fund that generated tens and hundreds of millions of dollars, totally restricted by a statute for no tie or inclusion whatsoever with the budgetary basis.
Now, this is what I have called The Biggest Game In Town. I saw it first in New Jersey and I said the Comprehensive Annual Financial ReportŠ here I am a Commodity Trading Advisor, I was doing a national news line coast to coast at the time and I never heard of the Comprehensive Annual Financial Report. I wanted to find out why. I was mad. I mean, there was such a distinct difference between the revenue shown on the Comprehensive Annual Financial Report and the minuscule revenue that was shown now on the budgetary basis. I said, "Why did I not see this in a newspaper, radio show, TV show?"
Now, the department that mailed out the report the Comprehensive Annual Financial Report was from the Department of Treasury. I called the mailroom, and the mailroom usually doesn't get a call from the public, so they were very cooperative. I wanted to find out who the report was sent to. I thought it was a short list. They said, "I'm sorry, sir. The list is too long - we can't read it to you on the phone." So I start qualifying. I found out it was sent to every editor of every paper on the East coast. It was sent to the deans of all the colleges. It was sent to the CEO and every one of the directors from ABC, CBS, and NBC. When I verified that, I started smelling cooperative effort for nondisclosure. I then got the telephone number for ABC and NBC on where the report was sent to. I called, and the conversation went just like this:
"Hi. This is Walter Burien calling from the Department of the Treasury. We've been sending you our Comprehensive Annual Financial Report for the last fourteen years and we're doing a logistical survey on how many other states are sending you their reports. Could you please help me?"
ABC was getting it from 36 states; NBC was getting it from 34 states. When I heard that, now I'm getting very mad. I'm starting to see a clear-cut cooperative effort for nondisclosure on the most important information that exists in this country...Period. The extent of the financial takeover by composite government of the wealth of this country, with the full cooperation of the syndicated media for nondisclosure.
My next step was I called New York, got New York's Comprehensive Annual Financial Report, which showed approximately $735 billion in liquid investment funds. I then got the city of Manhattan's report. Now, when I mention the Comprehensive Annual Financial Report, it's not just the state-the majority of all cities, counties, school districts, pension funds, autonomous agencies such as the New Jersey Turnpike or New York Throughway Authority, put out a Comprehensive Annual Financial Report. When I got Manhattan's report it showed liquid investment funds of $1.2 trillion, more than the entire state. My mind started getting boggled, thinking of the composite totals-for all the states, all the cities, and all the counties.
Subsequently, over the last ten years I've been factoring in, compiling, the aspect of composite totals. The current figure stands at about $60 trillion plus, in liquid investment funds - the composite totals for all cities, counties, states, and the federal government. Now, the viewers of this show would say "Oh, wait a second here! Wait a second here! I thought we were in debt for the state, in debt for our school districts, or in debt for the federal government". Well, let me explain something. I'm going to give you the biggest wake-up call in your life. This example holds true all across the country, for every city, county, and state and the federal government. You always hear the budgetary basis referenced - "the budget report, the budget report."
Now, I'll use this one example. Say, for example, you are making $100,000 a year, and your budget for operating your house is $20,000 a year. You could audit your budget a hundred times over - account for every nickel, dime, and penny on your budget report. If you spent $19,000 this year you'd have $1,000 surplus. If you spend $21,000 this year you'd have a thousand-dollar deficit. Now, in reality, if you decided you wanted to spend $30,000 this year on your budget for operating your house, would you go knocking on your neighbor's door, saying, "Hey, John, I had $20,000 allocated to operate my budget, but I spent $30,000; can I borrow $10,000?" No, you'd pull from your $100,000 salary.
Governments across this country on the city, county, state levels, and federal, have created a two-tier accounting structure. One, the annual operating budgets, the cost side of operating government for the year - the monies they bring in for the year to handle that cost and what they expend. What's being left out is the decades -- the decades of investment wealth, enterprise ventures which generate hundreds of billions of dollars each year, which are not inclusive in the budgetary basis. Government has turned into a financial empire across the board. And the public, basically, allowed the foxes to write the laws on how many hens they could eat from the hen house. And of course, foxes being foxes, they've eaten all the hens. When you start looking at composite totals of revenue and compare it to the private sector, government currently now is substantially bigger than the private sector. We are standing at about 65% government, 35% the private sector.
Now, when you look at stocks, as I mentioned, New Jersey State Government I saw, had $70 billion in common stock ownership. That floored me. I never even thought about New Jersey as a state owning $70 billion in stocks. Composite totals city, county, state and federal on stock ownership, equates to approximately $32 trillion. That's over 53% of the entire open interest of all issued stocks from all exchanges is owned by composite government sources. You won't have one city or county or state owning a phenomenal base in one stock, but you'll have thousands of the different cities, counties and states owning the composite totals. They own over 51 percent. So, when you look at individual corporations, Xerox Corporation, IBM, AT&T the primary owners are composite government funds, and they'll be listed as institutional funds - when you see the word "institutional funds" - that is government monies, in most cases. So, when you have a supposed public corporation - say, 72% owned by composite government funds, I wouldn't call that a public corporation; I would say that's a government operation. Xerox is approximately 72% owned by composite government funds; AT&T is up around 42%, so on and so on...
But the bottom line here is, when I learned this, this was a revelation that changed my life. Up until this point, when the comprehension finally dawned on me, prior to that, I always thought government was maybe 5% of the GNP of this country and this was a free-market economy, and I learned I was wrong. Basically, what the public has done here - I did this, you did this - we all have done this - we left the vault door open. In fact, 95% of the public would say, "Vault? What vault?" And those sharp little crackers said, "Thank you very much. Have a good day."
Now, the Comprehensive Annual Financial ReportŠ, I broughtŠ, this is from Missouri, there's a total press blackout of mentioning of the name of this report, - the Comprehensive Annual Financial Report. This is Missouri's of 1997. This is Ohio's cover page for 1998. I have the state of Utah's 1998; I also have Washington's and Maryland's figures. Also, this is from the state of Arizona, the state of Arizona retirement fund Comprehensive Annual Financial Report for 1998, which I will make some very interesting notations on. Now, the federal governmentŠ, this is the federal government Combined Financial Statement, the last page from the report, one notation . . . The federal government, in 1981, mandated that all local governments prepare a Comprehensive Annual Financial Report -every city, every county, every state, or, in the alternative, a Combined Financial Statement, if they did not prepare a Comprehensive Annual Financial Report.
The background on the Comprehensive Annual Financial Report: a group by the name of GFOA, Government Financial Officers Association, in 1946 created the Comprehensive Annual Financial Reporting accounting structure. I think the city of Manhattan produced one of the first ones in 1951, as a large entity. So, the Comprehensive Annual Financial Report has been around for quite a long time. There are 54,000 separate government corporations; cities, counties, school districts, authorities, that produce their own separate report - that's 54,000. You start looking at the composite totals of the revenue from 54,000 reports - the cities, the counties, the states - and you see the $60 trillion inclusive with federal government's revenue.
Now, about five months ago I got a call from an individual by the name of Joe Long, who runs a group called Federation of New Jersey Tax Payers. He called me up on a Sunday morning. He goes, "Walter, we just got New Jersey's 1998 Comprehensive Annual Financial Report. They have $295 billion in liquid investment funds. Isn't that awful?" I said, "Joe, you're just looking at the state report. There's 21 counties, a couple hundred cities and municipalities, autonomous agencies - all separate reports. If you take the composite totals of the liquid investment funds, you're well in excess of $1.2 trillion. If you take the population of New Jersey and divide it into $1.2 trillion, that comes out to a cash allocation of $146,000 per man, woman and child living in the state or family of four (sic) [five], that equals seven hundred and some odd thousand dollars. The obfuscation of the wealth has been excessive.
But just one notation regarding the federal, because this is not just going on in local governments - you know, cities, counties and states. Federal government's playing the exact same game. And I've noticed a lot of people always point the finger at the federal government as the bad guys, but when you break down the actual revenue of the $60 trillion, two-thirds of it belongs to the local governments - the cities, counties and states - and one-third belongs to the federal government.
Now, I'm going to try to do a close-up shot of this one page here. Okay, here we have the-this is the last page from the federal Combined Financial Statement. This is the appendix list of significant government entities included in the Combined Financial Statement. Now the majority of the items included, if we can scroll down the page here, can we get a close-up there?, now the majority that are included are agencies which most people are familiar with. We go to the back here - this is the final listing of agencies that are included - but the last column, down below, it -says "Significant entities excluded from these statements." (I think we're on that.) Now, they give honorary mention to the Federal Reserve Board of Governors and the Federal Reserve, which I think we all know by now are basically private. But then they list the Federal Retirement Thrift Investment Board, the Thrift Savings Plan, the Farm Credit System, the Federal Home Loan Banks, financing corporations, Freddie Mac, Fannie Mae, Sally Mae, Resolution Funding Corporation. These groups are the cash cow investment groups of government.
Now, also, I want to make special note to three items that are listed at the bottom. We have the Army and Air Force Exchange Service, the Navy Exchange Service Command, the Marine Corps Exchange. Folks, this is not the PX. We have funding operations for exchange of foreign troops to the U.S.- U.S. troops on the foreign soil, which they kept separate from the Combined Financial Statement of the -federal government so it wouldn't be so easily seen. But if we take the federal investment groups, the cash federal cow investment groups, and look at their revenue - and, very important, they have a phenomenal amount of revenue on loan, that's been loaned out there... if you take the accounts receivables and their current cash on hand, you come out to about a 16 trillion positive on the total operation.
So, here, even the federal government is taking their cost side - the expense side- leaving it on the Combined Financial Statement - they call that their budgetary basis - but they've separated the cash cow investment groups of federal government so that they don't show on the budgetary basis. So, currently, the federal government shows a slight deficit on budgetary basis, but the profit centers, which would show a $16 trillion positive, are excluded. Now, we started on national exposure about 18 months ago on the Comprehensive Annual Financial Report and the structure behind it, and I think that a few of you may have heard on the network news the feds saying, "Oh, by the way, we happened to find we're going to have a $6 trillion surplus going into the year 2004." They mentioned a surplus, a $6 trillion surplus? Keep in mind, that $6 trillion surplus is on the budgetary basis. They're not including the cash cow investment agencies. If they were being 100% honest, inclusive of all revenue, the federal government would have approximately a $12 to $14 trillion surplus. And, in fact, if they included the cash cow investment agencies in with the budgetary basis, they could probably have a 50% reduction across the board of all taxation, on the federal side. Something to think about.
Let's go back to the local governments. The states, the cities, and the counties, they have their budgetary basis, the annual operating budget but they have enterprise funds. In my little city of Prescott, Arizona, where I live, the city owns a golf course. Why does the city own a golf course? So the judges and the attorneys can get lower greens fees? Here is a $45 million dollar asset which is paid for by tax payer funds, developed, and not $1 goes back directly to support the budgetary basis. They have investment funds sitting as idle funds -- $48 million.
Now, with this much money out there, this phenomenal base of wealth, empires that are being built, it is mandatory to keep the public oblivious to what was going on. If the public was aware that this type of wealth was being built and obfuscated as tax dollars are being drained out of their pockets, where people are citing a shortfall of budgetary revenue, there would have been an uprising 30 years ago. But the government, to perpetuate this game, they needed the 100% cooperation of the syndicated media. That they have. You will not see ABC, NBC, saying, "Oh, by the way, we just happened to find out about the Comprehensive Annual Financial Report and we found out that the budgetary basis is this big (small noted) but the revenue shown on the Comprehensive Annual Financial Report is this big. (Large noted) You will not see that happen. They have been in cooperative nondisclosure for 25 years. That's why the situation has taken place.
It's mandatory to get the word out. It's mandatory to have your local radio show, your local TV showŠ, call in, mention the Comprehensive Annual Financial Report. Depending upon what city, what county, what state you're looking at the ratio of the budgetary basis, the annual service budget, to the reality of the total wealth, usually ranges from a percentage of 8:1 to as high as 40:1. That comparison between the budgetary basis and the reality of the wealth. It's not. Right.
In retrospect with what I've learned, it reminded me of something I was taught in grade school. I remember back in fifth grade, sixth grade, seventh grade, I'd hear a lot about Russia, and how the control Russia had over the public was bad. Well, when you look at the financial takeover of the wealth by composite government in this country, it dwarfs the control Russia had, in comparison, based on that financial control. In fact, did you ever wonder why Gorbachev went democratic? He looked and he said, "Hey, the boys in the United States have more control than we do, and they're making ten times as much."
A federal auditor of 30 years, I briefed him eight months ago. He was in charge of auditing one of the largest federal agencies in the country and also eight of the central western states prior to his retirement. He was always looking at individual budget reports, the individual leaves, branches and trees in the forest. And I briefed him on the composite totals. Floored him! He looked, he verified, and three months later he made the comment to me. He goes, "Walter, what we have here in this country is 100% Communism under the guise of a free market capitalist system." He goes, "The government owns everything." [http://www.cafrman.com] Now, the public is constantly complaining about higher taxes, higher taxes, more money being taken for this, for that. And they're conditioned - year in, year out. We had the Boston Tea Party--I think it was for a 3% tax on tea, caused the revolution. Here we've been conditioned to 45% of our pay going back to government. And when you look at all aspects of what the government's getting - export tax, import tax, duties on manufacturing, the composite total is phenomenal on the money that's taken by government.
The principle of operation in this country is, the boys running this structure - they keep the chipmunk running on the treadmill chasing the carrot as through trickle-down economics they provide just enough revenue to keep that chipmunk running at optimum proficiency as they tap off 80% of the energy produced. This is not right. The country was established for the public to rule in this country - for prosperity, for our families, education, the whole nine yards. If you see the country going down the tubes, it's strictly due to the factor that we have greed taking place on an unprecedented level in all levels of city, county, state government and federal government. Empire- building, power mongering. When you start breaking down the figures, using fifth-grade addition skills, just knowing where to look, adding up the composite totals&endash;as I mentioned there's 54,000 local governments, separate reports, separate corporations, school districts, cities, counties, states, autonomous agencies - 54,000; the totals of that revenue is phenomenal.
I have the summary from the state of Washington, I'll just use for an example - I'm not picking on Washington. But Washington state, on the statistical section which is in the back of the Comprehensive Annual Financial Report, it shows a ten-year demographics of revenue taken in, population growth, the whole nine yards. Retail sales, the top employers, Washington state, in the course of a ten-year period of time, there was a 100% growth in government. During the same ten-year period of time government took 115% more revenue. The revenue over doubled in ten years in what they're taking from the public. You have a runaway freight train. As I mentioned, the public left the vault door open. And the sharp little crackers said, "'Thank you very much."
On the government pension funds - city, county, state, federal - they're standing at about $28 trillion-$28 trillion. The private sector will never see $28 trillion in their lifetime. I go back to that word "Russia" and "Communism" under the guise of a free-market capitalist system. The figures are there. We're not talking about any gray area; there's no speculation here. This is outright their figures. This is a massive operation-it's a multi-trillion dollar organized syndicate of composite government wealth. They needed to keep their own accounting of their own structure - the Comprehensive Annual Financial Report was their accounting. The Comprehensive Annual Financial Report showed the wealth. And the reason it was never mentioned to the public was it did show the wealth. Let's take a break for right now and we'll get back into this in a minute.
************[a public service announcement (PSA) aired encouraging the watching of programs on public access television]*********************
Welcome back. Previously, I had mentioned the state of Washington and the growth of 115% on the revenue taken. I've had people look at their Comprehensive Annual Financial Reports, and they'll say, "Well, the figures are all here. It's all here. They account for everything. Here's the billions of dollars." I said, "You're seeing the billions of dollars that you never saw before in your lifetime. You're now seeing them for the first time, you now realize the scope of the billions."
I want to show you one other point. Now, I'm going back to the chart, this is from Washington's Comprehensive Annual Financial Report 1998, it gives a ten-year demographics of the revenue taken in a ten-year period. I think you should be able to see these figures. This starts in 1989. This is in millions of dollars. The total taken by the state from the public was $9,514,000,000. Now, as we go through the years, 1990, 91, 92, over to 1998 - the total revenue now taken was $18,008,000,000. So, we went from 9 billion to 18 billion, in a course of ten years. That's 100% growth!! This is ludicrous!!! The population growth in the state of Washington was approximately 8 percent during the same time period. And by the way, that is total revenue taken - the budgetary basis for the same period went from $6 billion to approximately $10,900,000,000 in the same period of time. That's the budgetary basis, but the total revenue taken is $18 billion. So it's a $6 billion disparity between the budgetary basis.
So we're not just talking the extent today of how much money government has taken from the public and the decades of wealth that's been building. We're talking also about the runaway freight train of growth on the city level, the county level, the state level. If you go back 25 years ago, government was approximately 6 to 8 percent of the GNP of this country, gross national product total revenue base. Currently, today, composite government - city, county, state and federal - it's 48% of the GNP based on cash and ownership. This is not right. We fell asleep at the wheel. We allowed it to happen. You have to realize this is the largest organized syndicate - a multi-trillion dollar organized syndicate - with thousands of facets that spends billions, billions of dollars, to make sure the public is looking off in right field as they conduct business as usual in left field. You'll see the orchestration in the media on different events which keep the public spinning their wheels over here as the boys are making their billions of dollars over here. They laugh their asses off on the way to the bank every single day. They're becoming wealthy, empires are being built. When you look at the $60 trillion in liquid investment funds, the composite totals - the billions...
Let's look at the state of California, with approximately $12 trillion under management. Now, under the Comprehensive Annual Financial Report you'll see about, oh, a total of maximum of about $3 trillion. But when you start tracking down the cities, the counties, all the revenue base, you're up to about $12 trillion. Now, in California, say, for example, one of the investment managers who is handling, say, $400 billion in funds, and he had, say, $150 billion -with Shearson Lehman Hutton American Express institutional banking. That's a very powerful position. If that individual contacts the director of the institutional banking, and said his brother in Argentina needed a $120 million loan in Argentina for a sugar cane energy development project, unsecured, do you think he's going to say NO? I don't think so. He'll have one of his associates from another company that he deals with closely cut the loan. If it's defaulted on he'll just make up the difference on some business he'll do with that firm.
The power mongering and the elbow rubbing that takes place here is obscene! And it's not just one group, one organization, doing it, it's the principle of operation. Since we started our national disclosure 18 months ago I've had thousands of phone calls from people all over the country.
I'll get a call from New York, "Walter, I just got the New York through-way Comprehensive Annual Financial Report. They had $31 billion in liquid investment funds and -they're still charging us." I'll say, "Don't worry about it."ŠI'll get. a call from Anchorage, Alaska, "Walter, I just got our Comprehensive Annual Financial Report for our city. They're making $100 million more a year than they're showing on their budget report." I'll say, "Don't worry about it." I said, "Stop focusing in on a leaf, branch or tree in the forest. Start focusing in on the forest; understand the principle of operation of the forest. There are ten thousand of these operations going on all over the country." I said, "If you're going to apply your efforts, apply your efforts to change the principle of operation of the forest, which will affect every leaf, branch and tree in the forest. "
That's the bottom line here, folks. We're not talking any gray areas; there's no speculation here. This is black and white. You know, the public has been complaining for the last 25 years. Every problem I've seen in this country to date has to do with extortion of revenue from the public. Period. It is the root of evil in this country - the wealth being taken from the populace. And one of the problems here is, a lot of people have been looking for the needle in the haystack, trying to find government corruption and wealth being stolen from us. Well, we're not looking for the needle in the haystack here, folks. It's the haystack sitting on top of the needle. All you have to do is look and start adding up the composite figures. Stop being distracted by one leaf or branch or tree in the forest. Start qualifying the forest. And when you do you'll see the clear and unequivocal financial takeover of the wealth of this country by composite government, right from the city level to the state to the federal level. It's power mongering it's empire building. The boys that are in there on the inner circle; the wealth is absolute.
Now, I'll give you a few examples going back into New Jersey from ten years ago when I got New Jersey's Comprehensive Annual Financial Report. It listed the state universities and colleges, and gave a composite total for all. I noticed right off the bat they had $8.5 billion in liquid investment funds - this is 1989. It also showed they made a $1.1 billion profit on their investment funds for the year. My next question to myself was, "I wonder what the total tuitions are for all students attending colleges and universities in the state." Total tuition base was $644 million. I said right off the bat, "Hey, they made a $1.1 billion profit and total tuitions are $644 million. They could have sent all students to school for free for the year and paid them to go to school." In reality, what they did that year was sighting a shortfall of budgetary revenue, they had a 7% tuition increase.
The game is absolute, and we're talking there is so much money behind the game, and you have the participation of the syndicated media in the game, the public really has not stood a chance. The only way the public stands a chance is through full and open disclosure of the wealth - not being distracted, just sitting down crunching numbers. Not looking at one leaf, or branch or tree in the forest, start looking at the forest, adding up the totals, and it becomes evidently clear. Corrective action is needed and is needed immediately. With the scope of the financial takeover that is in existence today, they're consolidating that ownership. Within several years you'll have composite government owning 85% of the wealth in this country. And at that point in time the public may just become a liability - they don't need them anymore. So, it's very important that the public starts taking a serious look at what's going on.
I'm going to go into two other points here. I'll give you an example from Edgefield County, South (sic) [North] Carolina. I briefed a doctorate in economics, she wrote for a little paper in Edgefield County called the Edgefield County Advertiser. She got a hold of the Comprehensive Annual Financial Reports for the state, the county, and the city and ran into a few obstacles trying to get them. They don't like to give them out in some cases. But she noticed that their school district - Edgefield County School District - participated in the local government investment pool. So, she requested from the state ... you know, it showed where to request the financial report from the local government investment pool, and it showed that Edgefield County School District had $36 million invested in the pool. Now, this is a school district, which was rather poor and had several tax increases over the last couple of years, citing a shortfall of budgetary revenue. She approached the county school commissioners, saying, "What are you doing investing millions in the market?" The school commissioner said, "We don't invest in any ... the market. We don't have any monies invested. You have to be mistaken." She then produced the financial report. His next response was, "Well, this is our account for paying salaries and expenses for the year." She goes "Okay." She produced the prior year's report, which showed they had approximately $29 million invested in the local government investment pool. Now there were additions and withdrawals, the principle never changed, and now it jumps up to $36 million - close to a $7 million profit for the year. The money that's involved here is, on the broad spectrum, it's one big game. The politicians will lie straight to your face.
As I mentioned earlier, when I found out about New Jersey's report I found out that it was sent to every editor of every paper - had been for 14 years. It was back in 1990 I was checking. It was sent to ABC, CBS, and NBC. When we started on national disclosure...I've participated in about 60 radio programs, probably reached about 25 million people across the country in the last 18 months. I requested that everyone send a certified letter to their editors and producers of their news shows asking, requesting that simple and conspicuous mention of the Comprehensive Annual Financial Report be made. All have refused. Now, the cutest response I got back was from someone in California, I think around Bakersfield. The editor replied, "We've received your request." Now keep in mind what was being asked was to make simple and conspicuous mention of the Comprehensive Annual Financial Report. He said, "We've received your request. We do not have the staff or the resources to report on a story of this magnitude. So your request is declined." I thought that was real cute.
Now, everybody remembers Orange County. Years ago Orange County, on their management funds, they got burnt playing with derivatives, such as options, calls, puts, features, they lost a little bit over a billion dollars. And they were crying, "Bankruptcy! Bankruptcy! We have to shut down! Stop all operations! Close the parks. Fire the police officers." Well, someone stumbled across their Comprehensive Annual Financial Report, which just happened to show that they had $16 billion in profitable investments. Well, all of a sudden Orange County left the news, they never went into bankruptcy. In fact, Orange County created a situation where they drew light to the reality of the investment finds, and they created liability for every other city, county and state across the country by bringing light to their loss and the investment funds. So, corrective action was taken after Orange County to make sure no one else ran into the same situation becauseŠ
I think everyone's heard of Lucky Luciano from back in the Twenties and the Thirties. There was something called Luciano's Law. Lucky Luciano was the banker for the syndicates - he moved the money between New York, Los Angeles, Chicago, Miami. And Luciano's Law was once you're suspected you're out of business. Anyone who spoke Luciano's name regarding a transaction disappeared. Luciano died of old age - never got indicted, he got exported from the country, but never had a problem other than that.
Government's been operating under the same principle of operation. If we're not suspected, we can continue business as usual. They have fronted up the budgetary basis to the public - continually, budget, budget, budget, shortfall of budgetary revenue. As per the example I gave earlier the difference between your budget for operating your house and your salary, there's a substantial difference. And when you break down the Comprehensive Annual Financial Reports, as I mentioned, the ratio comes out 8:1 to as high as 40:1 in comparison between the budget and the total revenues that are held by that government body. The examples I've given here - whether it be New Jersey, Missouri, Washington - they apply to every state, every city, every county, some more, some less.
I had a few notations here from Maryland. This is out of Maryland's 1998 Comprehensive Annual Financial Report. TheŠlet's see here, Pension assets were about $31 billion total contributions were $814 million, total investments returned was $3.7 billion; they'd increased $3.5 billion. Okay, here we go. Total government wages in the state of Maryland; and by the way, on the Comprehensive Annual Financial Reports, they started making a change. They used to list the top employers, in the state, and it always was the state, the cities, the counties. Usually, government was 7 of the top 8 employers. They've now changed their statistical section to the top private employers. But if you pull one of the old Comprehensive Annual Financial Reports, which, by the way, have been sent to your local library. You'll find back issues going back 15-20 years. The game here was not making the Report not available, the game was never mentioning the report no one knew to look for it. So, the game continued. But, total wages for the year paid in Maryland, to government employees, was $15 billion, 349 million. Total private sector wages were $55 billion. Okay? Total manufacturing was about $6 billion in Maryland. What this is saying is for every 4 people in the private sector working in Maryland, they are paying the salary of one government employee.
It's not right. The growth is ridiculous. It's runaway growth. It's a very serious situation -something needs to be done about it. Disclosure is the key factor. If you go to your editor - in fact, actually, for your state, confirm that the editor of your paper has been receiving the reports for 10-15 years. And when you go to him ask him if he's heard about it. If he says to you, "Never heard of it. I guess I'll have to look into it," you'll know he's lying straight to your face after you've confirmed in advance that he's been receiving it. Require, require these characters to make immediate simple and conspicuous mention. Require these characters to give the difference between the budgetary basis and the total investment wealth in what's held by governments. Require it.
This is no game, folks. We've had our heritage stolen from us right under our noses. As I mentioned, if you go back 25 years ago government was about 6-8 percent of the GNP; currently, we're standing at over 48%, and that's a conservative figure. That's a phenomenal amount of wealth. We have the largest orchestrated syndicate on the face of the planet, which is composite government wealth. A little notation. This is supposed to be a country of laws, correct? Law is supposed to protect people of this country, correct? Well, when I got New Jersey's report, it had the pension plans listed. I didn't understand pensions or the actuarial basis used. One of our Volunteers for Hands Across New Jersey, he wrote the pension funds for Blue Cross/Blue Shield nationally. I gave him the book, and I asked him to break down the pension funds and compare them to a Fortune 500 company. He told me it would take him about two weeks. Two weeks later I check back and I say, "Well, what have you got?" He goes, "Well, on a scale from I to 10, with the Johnson & Johnson being a 5, all of New Jersey pensions came in at a 7, excluding the judicial branch." He said the judicial branch was the millionaire boys' retirement club. Every state judge in New Jersey was guaranteed $5 million after serving one year tenure. In other words, they didn't have to work five years, ten years, fifteen years, twenty years to get their pension. All they had to do was their tenure - one year and they got their full benefit package, which was excessive. Now, district ... let's go to federal. District court judges, how many of you out there think that district court judges have a pension or retirement fund? I guess you would assume they have a pension or retirement fund. Well, they don't. District court judges are appointed for life. They get their full paycheck for life and benefits for life. And, in fact, two years ago they just took the action that when they die they can assign their full paycheck and benefits for the life of their surviving spouse or dependent relative. Now, that's a sweet deal.
The game is absolute. You know, we don't have the Joe Six-Pack crowd. here watching TV, betting on the football game, "Hey, five dollars on Dallas." We have the sharpest crowd, sharpest crackers on the face of the planet that are running one of the most sophisticated structures on the face of the planet - composite U.S. government - that is drawing in trillions and trillions and trillions of dollars. And it has turned into a parasitic situation. The blood that's being drawn off the host ... if you look at the public as, being the host for the parasite, the parasite is now substantially bigger than the host. That's a serious problem, folks. Anyone have any Raid? I think we're going to need it. But, the bottom line is disclosure. Yeah, the public has this phenomenal growth on its back, and the majority of the public, they keep saying to themselves, "Is there something wrong here? Why are things not right? Why are things going to hell in a handbag?" The problem is these guys are getting paid hundreds of thousands of dollars each - millions, in some cases. They have phenomenal backing to do it - to perpetuate the game. The public is struggling to get by.
The runaway growth is rampant. Doesn't... whatever city you look at, whatever county, whatever state, the average has been a 100% growth each ten-year period. Yeah, we're closer to where Russia wanted to be than Russia ever got. And, you know, we have to make the decision right now in our lives, a commitment to ourselves. This is not right. We have to take corrective action. We have to change this immediately. We only have one advantage, folks--one advantage only. As I mentioned, this is a $60 trillion organized syndicate with thousands of facets behind it. The judiciary is controlled, the finances are controlled, and the wealth is controlled. We have one advantage. And the only advantage we have is we outnumber the boys running the structure, about 400: 1. This happens to be our country. What has developed is wrong. We fell asleep at the wheel; we have to correct it.
In Part Two of this program, we'll be discussing what I call a CITA: Citizens Investment Trust Account, which can be implemented by initiative across this country. What the CITA is, is it's an organization started by the tax payers. They will have approximately two to three CFAS, Certified Financial Auditors, which (sic) will examine the books - city, county, state, as will be applicable to those residents in that city, county and state to identify surplus funds, venture projects - which, no way government should be involved in but the private sector should be handling, which the CITA would recommend for sale. The CITA, upon identifying and recommending for re-appropriation of the surplus revenue, and also sale of different venture projects like golf courses and different other items which cities and counties now own. The revenue that builds up in the CITA has one exclusive principle of operation. That exclusive principle of operation ... it's set up as aŠbasically an annuity pension fund for the resident tax payer. From the interest and dividend yield that's accomplished, it is to satisfy the budgetary requirements of that city, county or state.
I'll use an example of my little hometown in Prescott, Arizona. I had a couple of federal auditors go over the books; they identified $200 million on a cursory review, first glance. The city's operating budget's $17 million a year, the ... if you include the school districts, comes out to $34 million a year. The current rate of return 16-17% on pension investment funds. On $200 million that's $30 million at 15%. There goes the budgetary basis. In fact, the $34 million they are collecting, $30 million of that becomes surplus revenue for redeposit back into the CITA. They can eliminate the majority of all taxation and still have a surplus, which is returned to the resident property owners as an annuity dividend check. Because it's set up for their benefit.
Now, folks, what we're talking about here is not cutting back on a tax increase. What we're talking about is changing the principle of operation, of government - where, from the existing liquid investment funds that have built up over the decades, the wealth projects that government's operating right now, combining the operation as a whole where the revenue that is ... you know, the surplus revenue, the revenue that can be re-appropriated into the CITA - that fund, the CITA fund, just from the interest and dividend return on that fund, can satisfy the budgetary requirements, thus eliminating all taxation for that city, that county, that state. [ In effect, an annuity pension fund for the resident property / taxpayer having the ability to phase out all forced taxation and upon prudent financial management, provide a dividend return on top of no forced taxation]
Also, we can recommend downsizing of government to get it back into an appropriate proportion to private sector versus government. We have a chance here to change this country immediately through effective action and disclosure. We're up against a very powerful structure [syndicate]. The arrogance factor behind that structure is absolute. The top individuals running this structure on the investment side, the brokerage side, the banking side, they have egos the size of the World Trade Center. They have accomplished their objective, they have the control. But the public does own this country. Through effective action and unified force between the public we can correct this in a very short period of time. The structure has built up over 65 years and can be reversed in three to four years. And if the public unifies across the country it can be done on an effective level where we can eliminate taxation in this country for all time to come and create a situation where a dividend return comes back to the public. We'll continue on Program Two of this series on specifics on the CITA. I thank you for your time.
***********End of Part One narrative****************************************************
Special thanks to the United States Senators, Congressmen and women, and those millions of Americans who don't have a clue, whose actions have made this program possible and necessary.
Executive Producer - Walter J. Burien, Jr.
Produced & Directed By - Walt Maken
For more information or for those who would like to assist in this project, contact:
Walter J. Burien, Jr. P.O. Box 11444 Prescott, Arizona 86304 Email: CAFR1@aol.com
Tel. 1(520) 445-3532
© Citizen's Economic Victory Initiative
Notice: This program (#1 and 2) is a comprehensive disclosure. Permission is granted to air it in its entirety only. The airing of partial segments of this program would be misrepresentative of the disclosures being made. Such partial airing is strictly prohibited without express written authorization from:
This program was produced and edited at the facilities of:
Dayton Access TV 280 Leo Street Dayton, Ohio 45404 937-223-5311 www.datv.org
******************End of Program One************************************
****************************Beginning of Program Two***********************************
Introductory text on screen:
The Biggest Game In Town is of major importance to every American. You are encouraged to videotape it for further review and sharing with others.
This program is a comprehensive disclosure of governmental financial operations that have been deliberately concealed and kept from the American people by the governmental financial agencies as well as by the syndicated media. The scope is huge; the personal financial impact of vital concern to all.
Do the people of this great land own the government or do the collective governments think they own the people?
Is it time to mandate "effective action" through united efforts of the American people? Can David still fling the rock true and straight to hit its mark and defeat Goliath?
Are you aware that 30 years ago only 8-12% of the financial activity and ownership of our nation resulted from the activity of the government, but today the figure is a conservative 48%?
We the People have been victimized by the largest organized syndicate on the face of the Earth. The Constitutions declare that all political power is inherent in the people and that all powers not directly and specifically delegated to public servants remain with the people.
Our public servants are accountable to us and it's time we hold them accountable with genuine liability and cause the profits resulting from governmental activity to directly benefit the people!!!
*******************Walter Burien ; narrative*********************************************
Welcome to Program Two of The Biggest Game In Town. The prior program ... on Program One we discussed the Comprehensive Annual Financial Report and the structure behind it. That structure shows the clear and unequivocal financial takeover of the wealth of this country by composite government. On the local side, cities, counties, state and federal, 54,000 separate individual government corporate entities filing separate reports with investment wealth, enterprise funds, venture projects, well beyond the scope of the public's knowledge and comprehension. We're going to bring it within the scope of the public's knowledge and comprehension for effective change. The ... we left off ... on Program One ... if you have not gotten Program One I highly recommend calling the station and getting a copy. There's a lot of information contained therein, so you'll be able to appreciate Program Two and Program Three.
At the end of Program One, we ran a little short on time, and I wanted to bring up one point. It had to do with the pension funds within government. This is for all of those government employees out there who are about to find out there's a good chance they're getting severely shortchanged. It's not just the public, friends. The same is happening to your government employees.
Now, in my hand . . . I'm from Arizona, Prescott Arizona. This is a copy of the state retirement Comprehensive Annual Financial Report for the state of Arizona, 1998. The state of Arizona, under the state retirement fund, has 175,000 participants, retired and active. Using the highest actuarial basis possible to determine 100% funding for all participants required, approximately, based on current standards, about $14.5 billion dollars. Now, I have a page from the report, page 42 - I'm going to put it up, I think you should be able to see this. Now we're going to page 42 here, on camera 3.
Now ... right here, it says the ... lets see here ... this is for the total actuarial accrued liability; and what total actuarial accrued liability means is what is required - the money required - for 100% funding of all participants, in the fund. That figure is $13 billion, 63 8 million. With $13 billion, 638 million, this funds 100% of all 175,000 participants in the fund. Now I have a separate page from this report, this is page 15, from the Arizona state retirement Comprehensive Annual Financial Report. The total assets of the fund, at the end of June 30th 1997, is $20 billion, 353 million. Now as I mentioned, the total accrued, actuarial accrued liability, was about $13-1/2 billion and they're sitting with $20 billion, 353 million. Now the current report, the current figures, I've called to verify the standing of the fund, the current actuarial accrued liability is approximately $14.5 billion now. The fund's balance, after getting a 16.65% rate of return for the year, is standing up close to about $28 billion - with contributions and returns into the fund. Allowing for a 125% funding of all employees - 100% funding of their pensions, they're $9 billion over funded; in other words, the Arizona retirement fund is reaching 200% funding. There is not one city, county or state statute that even addresses the return of surpluses back to the employee or the employer - the cities, the counties, the school districts, the state agencies. Legislature showed their culpability two years ago on these surpluses. With these types of surpluses in the pension funds, there was no requirement for any payment from the employees or the employers. In fact, they should have been getting substantial refund checks back. What the legislature did was they passed their own internal statute mandating to participate in the fund a minimum payment of 2.18% for the employee and the employer, as a separate statute. They don't want to return those billions. When you break down within the report where those monies are invested, there's what I call "the blue list" of stocks and investments, things we all know and you can recognize easily. Then there's what I call "the red list," things I've never heard of before.
I'd be very interested to find out what judge, what attorney, what congressman, what senator, what county supervisor, is behind some of those investments, who is the shell owner of some of those investments and how many of those investments are actually real corporations providing goods, products and services and how many are shell corporations. It'd be very interesting to find out.
But the administrator of the fund, I chatted with him a few months ago and I brought up the point on allowing for 125% funding of the employees' pensions that freed up $9 billion. You cannot return $9 billion in investments through liquidation without causing a major catastrophe. Because if Arizona liquidated $9 billion from the pension funds for return to the employees and the employers, every other state with substantial surpluses, in theirs, would say, "Oh, my God. Arizona's moving openly, we'd better liquidate our funds, you know, while we still have a chance," and you could create a 1929 scenario crash; everybody moves at the same time.
I said there was a very easy solution. For the government employee, based on his pro-rata share participation in the fund, he is issued an individual IRA account as his refund. Nothing's liquidated, nothing sold, paper transfer, total order, no problem. For the city, the county, the school district, the state agency, based on their pro-rata share and participation in the fund, they're issued an individual market annuity account as a refund. Nothing's liquidated, paper transfer, same management, no problem. Now, the interesting point is, on the refund - just from this one account, one fund - the state of Arizona retirement fund, just on the surpluses, back to the employees and the employers, that's $4.5 billion back to the employees, $4.5 billion back to the employers, and they're still 125% funded. I asked the administrator "Could it be done?" He goes, "Sure, if there was a law addressing it, we could easily do it." And the rightful beneficiaries from this one fund, being that it's a retirement fund, would be the employees and the employers. But the refund back to the cities, and the counties, and the school districts, just from that refund, the returnŠ as I mentioned, they accomplished a 16.65% rate of return this year, that's been roughly their average for the last four years ... the return for the cities and the counties and the school districts just so happens to equal about 15-20% of their operating budgets for the year. Anyone sense a tax reduction here?
I mentioned at the end of Program One the CITA, Citizens Investment Trust Account. We covered the points extensively as to the composite totals of the government revenue- city, county- state, and federal - equaling about $60 trillion in revenue. There is no national debt - there is no debt, as we know it. They have a debt under their budgetary basis, their annual operating budget. And the example I used during Program One was if you had a budget for operating your house of $20,000 a year but you were bringing in $100,000 a year on your salary, you could spend $21,000 on your budget and you'd have a $ 1000 deficit. [Your liquid net worth under this example over your $100,000 annual income could be 1.5 million]
The same applies here. When you look at the budgetary basis of a city, a county, and a state, and then look at their total investment net worth, total enterprise projects, toll ways, bridges, different venture projects they've started which are generating substantial revenue, if you look at the whole picture there is no real deficit From the liquid investment assets they could wipe any deficit instantly, if they chose to do so.
But on the CITA, the Citizens Investment Trust Account, I'd like to cover that in depth. The CITA is established by the resident property owner, tax payer, for your city, your county, your state. The CITA is initially formatted with the use of CFAs, Certified Financial Auditors, who examine the books - city, county, state - as would be applicable to the residents of that city, county or state, to identify surplus revenues and projects being operated by government which should be operated by the private sector - golf courses, whatever, places where government has started venture projects which no way should they have their hands on, that should be sold back to the private sector. The CITA recommends for re-appropriation of the surplus funds, which were identified, into the CITA. It recommends for the sale of venture projects, their assets, which should be sold back into the private sector, for that revenue to be deposited into the CITA. The CITA recommends for the downsizing of that government, city, county or state. As I brought up in Program One, each ten years, it's been about a 100% growth in government on the city, county, state level-in general, across the country. The CITA can have a phenomenal amount of revenue built into it in a very short period of time.
I use the example of my hometown of Prescott, Arizona. A CFA identified $200 million in surplus funds in a cursory review. The city's annual operating budget was $17 million; the school district's included, that came out to $34 million. $200 million on deposit with the CITA, generating 15% return, equals $30 million. That eats up the budgetary basis. In fact, the city's still collecting $34 million to support their operations, which makes the majority of the funds at that time surplus revenue for redeposit back into the CITA- You can eliminate taxation at that point in time, in most areas, and there's still a surplus in the CITA. And being that the CITA is established as an annuity pension fund for the tax payer, when it has a surplus, the resident tax payer gets a dividend check -on top of no taxation.
It's the way it should have been 200 years ago. And it's possible to happen right now through disclosure and effective action by the public. I think we're all tired of having the people building their empires from within their city, their county, the state, or the federal government, imposing their will for more money, more revenue from us. [And control over us]
The one thing I'd like to bring up to make myself perfectly clear. Most people are familiar with taxation, ok, sales tax, property tax, you know, taxation. When you break down government structure and you look at where the revenue is coming from, alright, especially the money on the investment returns on the decades of wealth that have been building up in different areas, which the public, in most cases, is totally oblivious to but they can see if they look. When you look at the entire structure, taxation, including on the federal level, is approximately 30-35%, in some cases 40%, of the income for that government body. They are bringing in the majority, at this point in time, they are bringing in the majority of the revenue, not from taxable sources, from taxation, they're bringing in the majority of the revenue from returns on investment funds, from enterprise projects such as toll ways, roadways, bridge ways, financial authorities.
I've noticed in many of the states, I saw this first in Missouri; they have the Missouri Finance Authority, the Arkansas Financial Development Authority. We have at this point in time, states creating these financial authorities where the cities, the counties, other state agencies, can invest with these financial authorities their surplus revenue, their investment funds. And these financial authorities, when they have the bond issuance for the school district, the new roadway, the county jail, and they have a bond issuance, most of the public would think that bond issuance is being funded by the public. Wrong! The state's are using their own investment funds, your monies, to fund their own bond issuances, locking the public, under irrevocable trust, for repayment of those bonds. Thus, the state is securing their own return on their own investment funds, your money, through putting you in debt.
It's a big wake-up call. The game is going on unabridged. I mean, the whole point hereŠyou know, they operate with immunity due to the factor that the public is not looking. If the public looks and sees the scope of the revenue, where it's held, where it's built for years, you start seeing how the game is played. School districts ... you know, look very closely ... if you look at your Comprehensive Annual Financial Report for the state, most states have a local government investment pool and a list . . . you know, get the report for the local government investment pool, and you'll probably see your school district, your city, your county participating.
I gave an example, Edgefield county, North Carolina, school district was crying poverty, and someone dug into it and found out they had $36 million invested in the local government investment pool. Initially, they denied it, then they tried to justify it by saying it was an expense account. Then, finally, the truth came out. They had shuffled away $36 million off the budgetary basis, it was an idle fund account. The public had no idea. And North Carolina also showed a total participation of about $1.1 billion from other government entities within the state.
But, back to the pension funds. You know, just on this one account, $9 billion being freed up. $4.5 billion back to the government employee. In fact, on the individual IRA accounts returned to the individual government employee, it's substantially larger than their guaranteed pension fund. In other words, from the surpluses that exist right there in that one account, they would get a refund back substantially larger than their entire benefit package. That should catch the car of every government employee out there.
Now, I'm using Arizona as an example. I've looked at some states and they're just ... you know, supposed to be at 100% funding on their pensions, some are at 140%, some are at 160%. But you have to look. As I mentioned, in Arizona, there's not one city, county or state statute that even addresses the return of these surpluses back to the employer or the employee.
You have to make it happen. On the CITA account, we have the ability here, folks, to change the course of this country, to make the public the beneficiary of the wealth. It's been a runaway freight train. We all complain, we all.... you know, have our heartache stories about too much money being taken from us, from the city, from the county, from the state, from federal government. We have been conditioned - psychologically conditioned - to accepting it. We've been given the term "the budget report," "the budget . . . shortfall of budget," "we need to have money for this, money for that." There's no difference here.
I'll use this one example. If everyone watching this show ... say, for example, we had a 12- and a 13-year-old boy. And we gave them carte blanche to write their own allowance check each week. And we made $1200 a week. In a very short period of time, they're going to be cutting a check for $1000 a week. Now, if we said we're going to cut them back to back to $800 a week, that 13- and 12-year old are going to scream, they're going to holler, they're going to kick; they're going to use whatever logic possible to them to justify how a 12- and a 13-year-old boy could not survive off of $800 a week. There's no difference here. We just have bigger boys and smarter players.
When you examine the records - any state, any city, any county - you'll see the growth, the runaway growth, of government. It averages out to almost 100% growth, they double in size over every ten-year period of time. [ Arizona State Government, 1984 to 1999, in 15 years had a 1000% increase of annual revenue income] It's not right. You look at the aŠ the scope of government 25 years ago was about 6-8% of the GNP. Currently, it stands at about 48%. It's not right. It's money out of our pockets. It's creating a power base, multi-trillion dollar power base, which is totally contrary to the constitution of this country, the best interests of the public. Its sole motivation is to perpetuate its own wealth and power mongering and -control of the populace. Now, the composite government wealth that has been obtained, right now, by the cities, the counties and the states, as I mentioned in the last program, international stock ownership is at about $32 trillion, which is over 53% ownership of all issued stocks from all exchanges. Government has' become the market place. If you follow the hype on investing in the market and so forth and follow the news - CNN and FNN andŠand you bounce in and out of the market and find yourself losing $10,000-$20,000, well, guess who your opponent is? Your opponent is the government, the composite government funds. They're not just liquidating your revenue through taxation, through toll ways, through insurance company equity participation, they're liquidating your money through participation in the stock market. When you break down the numbers it's there. There is no gray area here; there's no speculation. Anyone with fifth-grade addition skills can start compiling the figures and see the unequivocal financial take over of the wealth. And we're at a crossroads here in this country. We left the vault door open. The sharp little crackers said, "Thank you very much." We fell asleep at the wheel. We listened to the propaganda from the syndicated media, which is in 100% partnership with composite government. If you break down the revenue that's brought in from ABC, CBS, NBC, from composite government sources - city, county, state and federal, from the so-called public corporations, which the government owns over 51% open interest of those corporations and they can exercise their proxy votes for direction to media campaigns. The syndicated media is getting a phenomenal amount of the revenue from composite government sources.
Now, back in New Jersey, when I found out about this and I saw the cooperative efforts, this being ten years ago, I saw the cooperative effort from the syndicated media for nondisclosure on mentioning the Comprehensive Annual Financial Report or mentioning the difference between the budgetary basis and the cash gross receipts and the investments. They would never mention that.
Jim Florio, who was elected governor, when he was elected, he appointed 14 editors and reporters with directorships inside state government. The individual they pitted against myself at that time was an individual by the name of Harvey Fisher, who, prior to the Florio campaign, was one of the top Bergen Record reporters. Now, Harvey was appointed as the assistant treasurer of the state of New Jersey. And, by the way, Harvey had no formal financial training whatsoever and he is now the assistant treasurer. This kind of cued me. I started looking. Harvey was making $35,000 a year as a reporter, as assistant treasurer he's making $65,000 a year. I said, "Well, that's not too big of a difference." I said, "I wonder what his expense account is?" He had a $125,000 carte blanche expense account of discretionary funds, tax-free. I said, "That makes a big difference." My father used to work for the Department of the Treasury as director of personnel for four years. That's in charge of all agencies and departments within state government. I knew within the Personnel department, they had a data search department run by four individuals, which tied all agencies and departments together under Personnel. All resumes are key inputted into the data bank for keyword searches. I called up one of the four individuals. He was cooperative. I asked him to do a keyword search on all directorships and key-level supervisor positions on how many were ex- editors and reporters in their past. He told me I'd have the report by 2:00 the following day. I called back and said, "What have you got?" He came up with a data bank of about 3400 names, as far as total supervisory and directorship positions. Out of that, I think it was 1783 were ex-editors and reporters. The fix is in deep. There's a lot of money here.
As I mentioned, I come from Prescott, Arizona, and I moved out there about ten years ago. I found out about the Comprehensive Annual Financial Report ten years ago. Then I backed off from public disclosure for about eight years, seven years. But, when I was out in my little city, I saw the, you know, local police, the judges, and local politicians acting as a little organized crime syndicate with no fear of consequence or liability for their conduct or action. I saw the fix being in right through to the attorney general's office, to the governor's office. And I said to myself, "What allows these little piss-ants to act like an organized crime syndicate with no fear of consequence or liability for their conduct?" I said, "The Comprehensive Annual Financial Report. The only reason they do what they do on the lower levels is because everyone above them has their hands deeper in the pockets."
The same holds true in every city, county, and state across the country. When you have this type of wealth, this type of wealth, held in the hands of the management of the pension funds, the enterprise groups, the ... the corruption is absolute. You know, did you ever wonder why that politician spends, you know, $400,000 to get into a $65,000-a-year job? The payola from cutting one deal, a construction project, an investment, is worth 50 times his salary. 'The power structure, it's there. It needs to be corrected.
The CITA, Citizens Investment Trust Account, is a viable vehicle for the public to get involved to grab the bull by the horns and flip it on its back. Because through disclosure and looking at the figures, looking at the revenue, what they don't want you to see, you identify the money, the revenue, the investments, you identify the power structure. You do not want to allow yourself to be distracted. Focus on the principle of operation. Focus on business as usual - not what they're telling you to look at but looking at the whole picture, look at the Comprehensive Annual Financial Reports, look at the notes within the reports, go to the other noted reports that show substantial amounts of other revenues.
If you want to get your state's report, there's a Web site, its:
If you go to that site you'll get a listing alphabetically of all Comprehensive Annual Financial Reports available for downloading off the Internet - city, county and state. There's probably only about, a ... oh, I'd say 40% of the states up there and just a few cities and counties, but it's a good starting point. The key word here is, folks, we don't own the country anymore because we allowed it to be taken by a runaway corporate empire known as composite government. Government has turned into an empire. We are insignificant in comparison, based on the wealth that has been obfuscated from us. We own this country, and it's time to take effective corrective action. What's needed is for everyone across this country, state-by-state, city by city, county by county, to network together on this one issue. Now, the government spends . . . like I said, this is a $60 trillion organized syndicate. There's a lot at stake for them. They've amassed their empire. They spend billions of dollars, throwing out 40,000 red herrings to make the public look in this (< ) direction as they continue business as usual over here (> ) unabated. It's time you have your focus, learn basic addition skills, have your focus over here (>), see the obfuscation of the wealth, see the totals. Realize that there's no deficit. Realize that there's no need for any taxation. When you look in the city-county level and you look at the total operation, all of the revenue, the whole picture, the whole picture, there's no need for property taxation, there's no need for the majority of taxation. And for it to be collected from you through misrepresentation, I consider to be indictable under the RICO act, for these government bodies conducting themselves as an organized crime syndicate, extorting money from the populace through whatever means they can possibly do it, justifying it through any means, just as that 12- or 13-year-old kid would do. Because they are becoming drunk on the power and the wealth that they have so easily taken from us because we fell asleep at the wheel. It's time to get the gumption, the energy ... this is a lot of money! If it's reversed, if it's reversed, now, it can be done in two to three years across the country - it checks the game cold in its tracks, and the ownership of this country will go back into the hands of the populace. To do otherwise, is criminal. Our heritage requires, mandates that we unify immediately to put this forward.
Let's take a break here, and we'll be back in a little bit.
********* [ a public service announcement (PSA) was televised encouraging the watching of programs on public access television]
Welcome back. In this segment, we're going to cover certain specific points to look at in your Comprehensive Annual Financial Report and which Comprehensive Annual Financial Reports to request. Now, I have a copy of the statistical section from Ohio's Comprehensive Annual Financial Report which I would like to make some references to. On the statistical background here ... this is from 1989 to 1998. It shows the total revenues collected by strictly state government, year to year. Now, if we go back to 1989, the total revenue take was approximately ... a ... the total revenue take was . . . fifteen ... this is in thousands, ok? Three more zeros at the end. The total revenue take was $15 billion, 704 million. If we go over to 1998, now, in 1998, they were talking $27 billion, 215 million. So it gives you an idea of the substantial growth of the revenue being taken out of your pockets. Now, when you get your Comprehensive Annual Financial Report, they have a statistical section in the back, which is something that's very important to look at. Now, I noticed in Ohio, it has federal government's monies coming in. This was pretty high for a state. They were bringing in $8 billion, 353 million from federal government sources. So, that's pretty high for the state. There's a -lot of money involved here. As I mentioned, on the $27 billion in 1998, that is strictly from the state. If you add up the other revenue sources - city, county, municipality, and authorities - it's a substantially higher figure. They list in the report also approximately $188 billion as their liquid investment worth. That' s a lot of money.
But, on the Comprehensive Annual Financial Reports - as I mentioned, I just referenced the state of Arizona, you want to get your school district s Comprehensive Annual Financial Report you want to get your city's Comprehensive Annual Financial Report, the county and the state's, and any financial authorities that are operated by the state, and any special enterprise group. If there's a large toll way, a large bridge authority ... say, for example, New York Port Authority of New York-New Jersey, get their Comprehensive Annual Financial Report. If they say they do not have a Comprehensive Annual Financial Report then ask them for their Combined Financial Statement. Now, the key factor here is, both the Comprehensive Annual Financial Report and the Combined Financial Statement both end June 30th of the year. So, whatever year you're looking at, it should say "Ending June 30th of the year". Either CAFR for Comprehensive Annual Financial Report or Combined Financial Statement.
[POST NOTE FROM WJB: In 1999, GASB (Government Accounting Standards Board) changed the policy for showing revenue on the combined financial columns of the CAFR. Prior to 1999, it was required to show all income, investments, and revenue. The change starting in 1999, was now on the combined financial columns of the CAFR, it was required to show all income, investments, and revenue necessary to meet obligations of that local government. A big difference! It is important to get back issues to see what now does not show as of 1999 forward. The notes in the CAFR must be looked at closely for direction to other accounting reports whose revenue is not shown in the report you are examining.]
Now, I mentioned earlier, a Web site to get CAFRs downloaded: it's financenet.gov ... http://www.financenet.gov/state/cafr.htm. Go to that site, and you'll be able to download some of your Comprehensive Annual Financial Reports. You will also, instead of putting cafr.htm at the end, if you put "reports.htm" you will also get other financial reports available. http://www.financenet.gov/reports/cafr.htm
Now, the game here has been played, regarding the obfuscation of the wealth, boils down to nondisclosure. The reports are available for viewing. The game was not making those reports not available; the game was "Don't discuss, don't talk, don't mention. If you don't know, you can't take effective action." So, request the report. [Require your local paper or politician to make continuous and open mention of the CAFRs]
Also, the news media, request that they make simple and conspicuous mention. There is no reason whatsoever for them not to do so except confirming their criminal culpability in nondisclosure. Any politician running for office - the governor, the congressmen, the senator, the dog catcher - I don't care. Amy person running for public office - the sheriff - if he refuses Šif he refuses to make simple and conspicuous mention of the Comprehensive Annual Financial Report from the podium, the platform, or in public forum, throw his materials in the garbage can and immediately look to another candidate. If that person running for office refuses to make simple and conspicuous mention of' the Comprehensive Annual Financial Report they are confirming their cooperation with the nondisclosure. They have ... they do not have your interests at heart, they only have their own. They want to become part of the inner circle and perpetuate the game. They're not for your ... they're not for your interests, or your family's or your children's. Very important. But, when you look at your Comprehensive Annual Financial Report, try to see the total of gross investment figures that are on the Combined Financial Statement. Start from there. Look through the notes of the report.
Now, I noticed in Missouri, I saw in the notes, bond dividend yield, $47 million; bond dividend yield, $118 million. And I said "Why is the state declaring bond dividend yields?" I came back to the Missouri financial authority; they're investing the state's own monies and they had to disclose the return that was coming back in from their investments.
Back to New Jersey. Ten years ago when I saw New Jersey's report I noticed it said $14 billion in insurance company equity participation. I said to myself, "What is insurance company equity participation?" I started looking. Found out the federal government, back about 25 years ago, close to it, mandated that the insurance companies, had to create a major catastrophe fund, in the event of natural disaster, large hurricane hit the East coast-wiped out a couple hundred thousand homes, a million or two automobiles; a big earthquake hits California, same scenario; they wanted to make sure that they were covered. Well, this equated to trillions of dollars, which the insurance companies did not have at the time. The federal government gave them ten years to implement the program. At the end of the ten years, 94% of the revenue requirement was satisfied by state and federal investment fundsŠand when you look at the records, was mostly a 2.4-2.6% interest, well below prime, they invested their monies.
Now, what this means to the public in real termŠlet's use automobile insurance. Auto comes under the major catastrophe fund, as I mentioned, large hurricane hit the east coast, wipes out hundreds of thousands of automobiles; big earthquake hits California, same scenario. I'll use Arizona as an example. In Arizona, the minimum coverage is $30,000. And, based on the major catastrophe fund rules, one-third of the value of the policy, the face value, has to be left on deposit. So, one-third of $30,000 is $10,000. That money being provided by state and federal investment funds, say at 5% interest for easy accounting that equates to a $500-a-year return. Now, my auto insurance premium is $658 a year. Under this example, the insurance company is only getting $158; the government is getting $500, on the return. Did you ever wonder why they make it mandatory insurance, state by state, and enforce it by armed force? Every state with mandatory insurance is opening up a phenomenal investment pool for the state and federal investment funds.
Now, I took this a step further. I called the Division of Motor Vehicles in Phoenix to find out the total number of registered vehicles, both commercial and noncommercial in the state. To be registered it required insurance, mandatory insurance state. I then called the insurance company data banks to find out the total liability claims paid by all insurance companies operating in the state of Arizona. I then took that figure, added on a 35% markup to allow for a profit margin in operating costs. For a paper company that's pretty good. I then took the total number of registered vehicles, divided it by (sic) (into) that number. The average annual insurance premium, using thatŠthose figures, came out to being $126 per year. Got the picture?
Government has been getting into every aspect of taking money. The public's familiar with taxation, taxation is actually turning into a very small portion of government's take. Investment funds are their primary vehicle for revenue generation at this point in time, taxation's secondary. You have to start tracking down these investment funds. The next time you hear, "Well, we're going to have to shut the school down, it's got holes in its roof, we need to raise taxes for a million dollars," or "the police are under funded, we're gonna have to let half of 'em go," pop up with "Oh, by the way, they said they had to shut down the school, well, I see they have $42 million here in the local government investment pool. Why are you not using this?"
Now, Jesse Ventura, when he was mayor of... a... I think it was Menlo [Brooklyn] Park, the city wanted to have a tax increase of $260,000, a small increase, for the school districts. They said they were at a short fall of money. He looked and saw a $48 million investment fund sitting there, listed as idle funds, so he goes, "Here, take it from here." And he was the first person to openly admit as to the difference between the budgetary basis and the liquid investment funds. He was elected governor, and also the first step he did was to target $7 billion in surplus funds for return to the public. Now, legislature, ok, who has their hands very deep in the pockets here, went to block him on the $7 billion and he was only able to free up about $1.8 billion, which equated to about a $800 check for every person living in the state.
The bottom line is it's a power game. 'With this much money available, especially with the public not even being aware - or oblivious to the majority of the wealth - the legislature, the congressmen, the senators, the judges, the attorneys, they're all fighting back and forth to see who can get whose hand in whose pocket the quickest. And it's important for the public to look and start getting basic comprehension, because the game is too big. I mean, we've let it ... a ... go . . . a ... with $60 trillion in composite investment funds, that's ... that's ludicrous. We've lost control of this country.
If you look at the ... you know, the court systems, the lawyers, it's ... it's a revenue generating business. If... if you look at the court systems of this country, they're generating more money than any Fortune 500 comp . . . a group of ten ... the ten largest Fortune 500 companies, the court system is generating more money. They're taking more and more money, any way, shape or form. Insurance company equity participation, health insurance. If you look at your county, your city, you'll find out that they're buying up all of the hospitals. Did you ever wonder why they get such a . . . a . . . you get such a big bill from the hospitals? They're participating on an investment level with the hospitals.
The game has to be stopped, and the way the game will be stopped is through a ... unified action from the public for disclosure. Everybody cannot sit back and say, "Well, somebody else will do it, let's watch and see what happens." You, you, have to do it. Call your friends, call your neighbors, and call your business associates. Get together. ConfirmŠconfirm, the extent of the obfuscation of the wealth. When you look at the scope of the existing investment funds, the scope on the composite totals, it shows the clear and unequivocal financial takeover of the wealth. When you look at the scope of the growth of government - five years ago, ten years ago, fifteen years ago, twenty years ago - it's obscene! It needs to be checked immediately. Now, the majority of government employees - 98% - don't have a clue, either. They were not aware of the scope of the takeover. Everybody is too busy looking at the leaves, branches and trees in the forest to see the forest. I emphasize, focus on the composite totals.
Now, since I started on disclosure 18 months ago, a ... there has only been one rebuttal to any of my comments. I got an e-mail from the a . . . head accountant from the a ... Department of Transportation from Portland, Oregon, saying, "Well, I don't think you're familiar with fund management, and we declare revenue that we have on our, you know ... report that we haven't yet collected, so the figures are misleading." And I responded back to him. I said, "Sir, I'm sure you do an excellent job as the head accountant for the Department of Transportation for Portland, Oregon, a budgetary agency, and all budgetary agencies are gone through with a fine-toothed comb." I said "Sir, look ... get your a state's Comprehensive Annual Financial Report. Go through the notes. Look at the balance columns. Look at the billions and billions of dollars of assets which you didn't even know existed. Look at the different funds and programs and trust accounts which you didn't even know existed. Ok? Once you see and for the first time. I said "That is the revenue I am talking about. Then, respond back to me." Never heard from him again. I guess he looked and became a little bit too busy.
Now, when you look through your Comprehensive Annual Financial Report - all cities, counties and states and different governmental authorities, will have what they list as idle funds. And usually, on the easily seen funds, they're ... they're declaring about a 5.5-5.6% return. It's very conservative management. That's one arena. But, what you want to keep your eye open for is where they're getting 12-14-15-17% rate of return, similar to pension fund management. Currently, all government employees, if they ask, you know, what are they getting on their pension funds, they think they're getting 8%. 8% is the standard used all across the country as an actuarial basis. It's a number picked out of the air by the accountants. In reality, the pension funds have been getting between 14 to as high as 23% return per year. Ok? You have to know to look and ask the questions.
This is a very serious situation and it's out of our hands currently, right now. The scope of the growth of government, the revenue that government's taking, the thousands of different entities that are just running away, taking more money like that 12- and 13-year-old kid and justifying it with any reason whatsoever. Even if you look at the school districts ... they've done studies all over the country. They found that the school districts which were getting the least amount of money had the best results for the children. The ones who are getting the most amount of money were having the least results. It's obvious. They don't have the children's interests at heart; it's the money. More wealth, more power. The public has to take a stand immediately.
Now, Program Three . . . Program Three, we'll be ... I'm putting out the word across the country for the states, in ... within your state, to unify and organize to get ready to do effective action. As I mentioned, the CITA initiative, we'll do that; it opens up for full disclosure. The CITA publishes an annual report of identified surplus revenue, identified operations of government which government should not be operating that only the private sector should be doing. It identifies areas for downsizing, what revenue would be made available for deposit into the CITA; that's published annually. And with the public seeing the reality of the ability to downsize, the ability for re-appropriation of surpluses, the ability ... the ability for sale of venture projects which should be sold back to the private sector, and that revenue now, just from the interest and dividend yield, canceling out taxation in their city, their county, their state. I think this should motivate everyone across the country and create a tidal wave of effective action.
Program Three: the first state that unifies, gets a council together, gets an organization together, and they're ready to move forward with effective action - the initiative will be drafted, ready to go: that will be Program Number Three. When we're contacted and we know that the effort has been made in that state, the first state to come forward with a solid group to make it happen - that will be Program Number Three - showing that council and showing what's about to happen. And hopefully, there'll be about fifteen other states, many a counties, many a cities, ready to follow to implement the same program.
The boys controlling ... controlling the structure - now, the real power structure of this world is the international banks, the brokerage houses, and the insurance company conglomerates. They are controlling the wealth. That $60 trillion is controlled under management by them. If you try to take the money from them, they would stop you cold in your tracks. But under this proposition, of the CITAŠ the CITA is identifying surplus revenues, they're shifting the wealth back into the direct benefit of the public for the elimination of taxation and upon doing so, a possible dividend return back to the resident tax payer. Under that program, the banks, the insurance companies, the brokerage houses, they don't lose one dime 'cause they are still going to be managing the funds, accomplishing their best rate of return.
The beneficiary is switched to the public. No longer will it be the politician, that little ... little inner circle group moving the funds back and investing the funds back and forth to their benefit. The funds will be invested for the direct benefit of the public under the exclusive principle of operation that from the interest and dividend yield on those funds, the elimination of all taxation and then also upon the downsizing of government, the dividendŠ, annuity dividend check being issued to the resident tax payers. There is no better proposition. Period. Now, the spin-doctors involved in this multi-trillion dollar organized syndicate, will try to disrupt and, you know, confuse the issue. There should be no confusion.
On your organization, state by state, county by county, city by city, try to find a CFA, Certified Financial Auditor, very good at identifying ... the game and revenues hidden in other places. Look through those notes very carefully. When you're looking at your county or your city trying to identify funds, get the state report. The state report will list the local government investment pool and where to get the financial information on that fund. And it'll list your city, your county, your school district and how much money they have in participation.
Now, there's also another Web site, which is very informative. It was a Web site created by a 30-year veteran retired federal auditor. It's http://www.cafrman.com. If you go to: http://www.cafrman.com, the auditor is very conservative but he spells out exactly what to look for. He will give you an Excel spreadsheet where it'll tell you where to look in your Comprehensive Annual Financial Report to fill in the blanks to identify the surpluses and shows you what it means to you. He also shows how to look at the state, the county and the city. If you live in a city, the city has surpluses. The county which you live in now also has surpluses and then the state. So we have three different entities ; the city, the county, and the state that applies to you as a resident of that city. He's identified $28,000 per person in one state, as an example. It's very informative. That's www.CAFRman.com.
But, as I mentioned, the public is up against a multi-trillion dollar organized syndicate that is well-entrenched, they know exactly what they're doing, it's run by the sharpest crackers on the face of the planet. The public is being basically aŠthey're the food for this organization. As I mentioned, government keeps the public running like a chipmunk on a treadmill, chasing after the carrot as through trickle-down economics, they provide just enough revenue to keep the chipmunk running at optimum proficiency as they tap off 80% of the energy produced. It's not right. As far as government is concerned, productivity is the key word. They figure if they return the wealth back to the public, everybody will stop working and there goes hyperinflation and major problems. I don't think so. The wealth is rightfully the publics. The wealth is not rightfully composite government's and the small circle that controls the wealth.
For information on the CITA, Citizens Investment Trust Account, I can be e-mailed at: CAFR1@aol.com and if you request CITA information, I'll give you the basic format for it. If you're ready to organize in your state and you have a solid structure, a good structure, e-mail me and let me know that it is taking place. And if you're the first state that is ready for effective action, your state will be Program Number Three.
POST NOTE: Financial backing is required to move forward. If accomplished, things will happen very quickly! To date 12/28/00, no one has stepped forward to provide the financing necessary to move forward. Things are at a standstill until this happens! Go ahead, make my day! WJB
As I mentioned, this is a multi-trillion dollar organized syndicate that you're up against, so it cannot ... whatever structure takes place within your state, it has to be ... between solid . . . workers ... tell ... tell the pastor of your church, tell every business you know to pass the word. The game only continues through nondisclosure, and we have the ability right now, at this point in time, to mandate disclosure. There are enough intelligent minds out there that can use the art of basic addition when they start looking at the reports and adding up the totals to confirm the theft of the wealth by composite government sources. The growth, the obscene growth, of government is obvious. If we unify at this point in time we can correct it.
I look forward to Program Number Three and effective unified action coming forth from all the states in this country. I'm confident 15-20 other states will be right behind. It's time to move and to move strong and swiftly. I hope everyone does his or her best effort to correct this situation in this country. But as I mentioned, any politician, any reporter who does not make simple and conspicuous mention of the Comprehensive Annual Financial Report, they're out of there, gone. If an elected politician does make simple and conspicuous mention and mentions the difference between the total of cash gross receipts, total investments, and the budgetary basis, which is small compared to the totals, yeah, sponsor that person. Very important. Well, Wishing the best for this country and every citizen. Have a good day and I look forward to Program Number Three.
****************End of Walter Burien narrative, of Part Two********************************
*******************Beginning of Additional Information Add-On**************
As an add-on to Program Two, and for a better understanding of the CITA initiative, as an aid to help anyone out there and from their city, their county or their state, to start working on and building a CITA, I would like to cover some specific criteria for getting the structure going.
On the CITA, the CFAs, the Certified Financial Auditors, who are now identifying the surpluses, they have to look at the three different areas. They have to look at the surpluses identified from the city, the county, the state, state-run agencies, county-run agencies, enterprise groups, the whole nine yards, to identify these surplus monies for re-appropriation into the CITA. That's area number one. Area number two, they have to identify from the enterprise groups within government--the golf courses, the toll ways, the bridges, the different projects that government is operating which should be returned to the private sector, which the sale of these items back to the private sector would generate hundreds of millions of dollars, if not billions of dollars, depending upon what area you're looking at. Also, the identification of excessive growth within government that should be recommended for downsizing. So, in other words, if you're downsizing certain areas of government, you're now freeing up billions of dollars for use elsewhere or re-appropriation into the CITA. So, with revenues being re-appropriated into the CITA, via recommendation, from surplus revenues, from the sale of items which no way should government be involved in - different venture projects, through the downsizing of different areas of government, the CITA grows at a phenomenal rate, phenomenal rate! And the sole principle of operation of the CITA is from the interest and dividend yield on this massive trust fund that's building up, set up as an annuity pension fund for the tax payer. The interest and dividend yield subsidizes and cancels the budgetary requirement of government.
We are changing the principle of operation of government here, which affects each leaf, branch and tree within government. It makes government now not the runaway spoiled kid taking more, more, more, more. It changes the principle where government now becomes the prudent financial manager who is operating from the interest and dividend yield on the existing CITA fund account and also monitored and streamlined where there becomes a surpluses in the CITA for return to the resident property owners, on top of no taxation, from their prudent financial management of their operations. This is essential to have happen. Now, the CFAs and the CITA, their principle of operation, number one, what I . . . what I recommend for the initiative, is that the CITA and the management of the CITA and the CFAS, which is a private organization run by you folks, the public. The public hires, fires and determines who is going to be on the CITA and the CFAs used; these individuals, number one, they should be compensated from, first of all, the revenue that they identify for re-appropriation into the CITA. They should get 1.5% of that revenue. Also, on the performance of the fund they should get 1.5%, of the performance. If they accomplish a 17% rate of return, 15.5% now is going towards supplementing the budgetary basis. This gives them a phenomenal incentive to, number one, identify revenues, and number two, performance on the fund when they are re-appropriated into the CITA. They cannot be bribed; they cannot be bought off; they have a phenomenal incentive for the growth of the CITA which has the sole exclusive principle of operation of supplementing the budgetary basis so that government is operating from the interest and the dividend yield, and also streamlining government so there's a surplus in the CITA. They maintain their jobs by performing for you.
Now, being that the CITA is not a government body, it does not have governmental authority. They may identify funds and revenue for re-appropriation and that government agency, they say, "We're not going to give you one dime." That's a big problem for them, here, folks. The majority of these revenues that are identified, the public was not aware of in the first place. The CITA . . . the CFAs are putting together a Certified Financial Statement which identifies the revenue, surplus, identifies the assets for sale which are not benefiting directly the public, identifies the downsizing of government which will generate X amount of millions of dollars or billions of dollars in surpluses. And, if that government agency says, "Sorry," well, through disclosure to you, the public, the public will mandate the re-appropriation, will mandate the sale of these items. The game is over, folks, for them. They cannot continue business as usual with disclosure. It's our choice. It' s our heritage. It's our right. We fell asleep at the wheel. We allowed this to happen. We cannot depend on someone else doing it; we can't sit back and say let's see what happens; we have to make it happen. History is written, not based on best wishes and watchers. History is written based on doers and people that make it happen. Now, across the country - city, county and state - everyone who is ready to stand up and take control of this situation for the benefit Of all should be tracking down CFAs, Certified Financial Auditors. Look at the retired community. There are many a CFAs out there who would love to participate in this venture project to benefit the public. Find them; get them involved. Now, when the CITA is established, upon the identification of the surplus revenues and the Certified Financial Report being put together and what's recommended for re-appropriation, what it means on a budgetary basis, satisfying the budgetary basis, potential surpluses after satisfying the budgetary basis; that report is now distributed to the populace. You can then write an initiative, a referendum, in your city, county or state. You have the Certified Financial Report, in your hand, which states, "With this being done, we can eliminate all taxation within our city, our county, our state within X period of time, if not at present. Additionally, with the operation of the CITA, on top of the elimination of all taxation, we have the ability, within X period of time, or at present, to offer a refund check to every resident of this community on top of the elimination of all taxation. Folks, this is the way it should have been a hundred years ago. It's the way it can be tomorrow, only if the public unifies, in force, to make it happen. We've allowed a runaway freight train to take place here.
As I mentioned earlier, 30 years ago government was 6 or 8% of the GNP of this country. Currently, we're standing at 48%. It's time for us to take control of the reins. Folks, let's make it happen.
Now, since disclosure started 18 months ago on the national level, I remember about five months ago, I had an e-mail from a political leader out in the Midwest. She wanted to know a little about the topic of the Comprehensive Annual Financial Report and she basically said " Well, this is very complicated, can you boil it down to a simple analogy which everyone could understand?" And I replied with the following. I said, basically, we chose to ... we had a government, which we . . .we knew we needed a military, we knew we needed protection of our country, we knew we needed certain services and conveniences provided by government, so, I refer to government as the foxes.
The foxes have been writing the laws on how many chickens they can eat from the hen house. At first, out of our 3, 000 chickens, we gave them 100 per year to perform their services for us. They ate them and said they needed 200 chickens. So, we gave them 200. They ate them, and then they said they needed 400 chickens. So, we gave them 400, but we started complaining, saying enough is enough. So the foxes said they needed 440, justifying 440 with any logic available to them, but realizing that we were complaining about giving them 100, then 200, then 400, they, in their wisdom, started to put 150 chickens aside each year, in their own hen house, held by them and undisclosed to us. Well, after many a years, many a decades, in the fox's own hen house, they have collected 6500 chickens. (Total available revenue, not tied directly in the publicly known budgetary basis, or the operating budget.) As they continue to collect, now, 510 chickens, the disclosed operating budget, as they cry to us saying they are barely getting by on the 510, but since we are complaining about the-510, they will cut back the annual take to 490, at great sacrifice to them, the foxes.
Well, folks, this is a pretty good analogy of what's going on, in simple form. We've had the budgetary basis rammed down our throat, the budget . . . "We have a shortfall of money for the schools, we have a shortfall of money on the budget for ... a ... the police, we have a shortfall of budgetary money for the city and we're going to have to throw these little old ladies out on the street - we can't take care of them anymore. We're going to have to shut down the parks, we have shortfall of budgetary money."
Well, folks, we have a two-sided game here; the budgetary basis, which you can compare to your annual operating budget of operating your house and we have the total revenue, the decades of investment funds, the decades of different venture projects that have built up into billions and billions of dollars of assets, with no direct tie what so ever with the budgetary basis. It's time to take back control.
Now, I'd like to address one issue - the most important issue - regarding why this has happened. The obfuscation of our wealth, to this degree - $60 trillion in assets now held by composite government - would not have been possible without the 100% cooperation in partnership of the syndicated media - ABC, CBS, NBC, CNN, the syndicated newspapers owned by a few in this world. It was in their interest to make sure business continued as usual for composite government, folks. If you look at the revenue, carte blanche revenue they get from composite government sources - city, county, state, federal, grants, direct payments - it is a substantial portion of their annual revenue generated each year.
If you took at the games that are played, back and forth, the elbow rubbing, it's phenomenal. If you look at different state agency groups, federal, county, city, you'll find out a high percentage of ex-editors and reporters now in carte blanche executive directorships within state government, federal government. I mean, government has bought off the cream of the crop of the reporting field, editors, producers, directorships are given. It's like winning a lottery ticket for them. The fix is in deep here, folks. And in the media, they have been getting the Comprehensive Annual Financial Report for over 35 years. They know what it is. They know that the Comprehensive Annual Financial Report shows this (large) much revenue compared to what's shown on the budgetary basis (small). Yet, we have the media constantly referring to "Well, there's a shortfall of budgetary revenue. Ah ... this problem under the budget, that problem under the budget. Ah folks, pay your taxes this year so we can support the budget."
Not one mention of the Comprehensive Annual Financial Report, not one mention of the difference between the cash gross receipts and the budgetary basis, not one mention of the massive investments funds held with no direct tie whatsoever with the budgetary basis. Not one mention of the autonomous agencies, the toll ways, the roadways, the bridges, the financial authorities, are not tied. in with the budgetary basis where not one dollar goes back, not one mention! This is not accidental folks, this is intentional.
I was doing a radio show about two months ago, Tom Valentine, Radio Free America. And I mentioned to Tom the aspect of ... that the media is in 100% partnership with composite government. A few minutes later he mentioned, he goes "Well, it's so hard to get the media to report on the truth-and do their job." I said, "Tom, I don't think you heard me." I said, "The media is in 100% partnership with composite government. They are doing an excellent job. They do exactly what they're supposed to be doing in partnership with composite government, to make sure the public is looking off in right field as they continue business as usual in left field. They are doing their job, based on that partnership.
It's important to understand, folks, that communication on this issue, to get the word out for comprehension to reach every person in this country, it requires each and every one of us to pass the word. There will be a total blackout from the syndicated media. They have perpetuated the game over the last 65 years through a total blackout as to disclosure. So it is important ... in fact, when you go to your editor or your news producer, you may see this show, and say "I'm going down to my editor right now and make sure he knows about the Comprehensive Annual Financial Report and we'll have this on the front page tomorrow. " Well, folks, before you do that, call the mailroom of the agency that puts out that report. Confirm your editor has been receiving it for the last 15 - 20 years, since he's been editor at that paper. This way, when you approach him, he says "Why, I never heard about that, I'll have to look into it," you'll know he's lying straight to your face. Tell him to get out of town. The intentional nondisclosure taking place within media, I call it criminal culpability, intentional' criminal culpability for nondisclosure, on their part." There's nothing else. In fact, its close to treason, because through their nondisclosure, the syndicated media, in cooperation and in partnership with composite government, they have allowed, they have facilitated the unabated obfuscation of the wealth from the rightful owners of this country, you, myself, all of us, the American people.
So, pass the word. This has to get around across the country, person-to-person, mouth-to- mouth. We're not talking about any gray areas here.... speculation. You look at the reports, and using fifth-grade addition skills, you see the complete financial takeover of the wealth of this country. If you take the time, add up the totals, city, county, state, 'and federal, $60 trillion in assets, folks. Of which $32 trillion in common stock ownership. The mark ... the government is the market. Period. It's time for us to take the reins back into our hands, slow down that runaway freight train. We have to make it happen, and we have to know what we're up against and the media is what we're up against here, on the nondisclosure. We have to break that wall of silence.
And folks, if you'd like to put the pressure on, on the city, county, and state level, there is a letter, which if you request, I can e-mail to you, which will cover requesting specific items for disclosure to you. And if you request thatŠmy e-mail address, CAFR1@aol.com, just request "sample letter" and I'll make sure it gets into your hand, and I guarantee you when it's sent off, the boys are going to start squirming because it mandates disclosure. If you want it, just request it.
Now, as I mentioned, we started disclosure of the Comprehensive Annual Financial Report and the structure behind it, it started June 8th of 1998, and it's been approximately 18 months. The first disclosure took place on Tom Valentine's radio show, and it was noted as being the most important issue in the last 200 years in this country as to what was being disclosed. Now, five months ago I got a call from Tom ... you know, we've ... I've reached probably 30 million people via 60 different international radio shows. There's been 10 publications now with featured editorials, nothing from the syndicated media, they won't mention one word. But, Tom called me and he goes, "Walter," he goes "we're wasting our time. The American public is stupid. Here, we gave them the biggest story in the last 200 years, on a silver platter, spoon-fed them, and no one is doing anything from across the country." He goes "We're wasting our time."
My response was, very simply, I said "Tom, we're up against the largest organized syndicate on the face of the planet, a multi-trillion dollar organized syndicate run by the sharpest crackers on the face of the planet, who spend billions and billions of dollars to make sure the public is looking in right field as they conduct business, as usual, in left field. And they have the full 100% cooperation in partnership of the syndicated media to continue business as usual. I said, "Picture a 22-pound rock sitting on a mountaintop and you wanted to flip it off the side of the mountain. You apply five pounds of force, nothing happens; ten pounds, nothing happens; fifteen pounds, nothing happens. You apply 21 pounds of force, the rock rattles a little bit, but nothing happens." I said, "With all of the disclosure that took place to date, the radio shows, the different articles that have come out, we've applied a 5 pound force on a 22 pound rock. Law of physics, nothing is going to happen." I said, "What is required, what is essential, mandated here, is for a few heavyweights, one or a group, to step forward, who can apply 35 pounds of force on that 22 pound rock. And you want to see how fast it's gonna fly? Real quick!
So, I emphasize the point. What is required at this point in time, are for some heavyweights, some sincere individuals who have the ability to take the bull by the horns and flip it on its back, to come forward and apply the effort and financing necessary, so we can apply that 35 pounds of force on that 22 pound rock. If that happens, we'll start the tidal wave, folks. -That tidal wave will crest, and the effect of that crest will be effective action that will sweep across this country to return the wealth of this country back into the rightful owners of that wealth: the peoples of this nation. And we can set the principle of operation up in composite government where, for all time to come, for our children, their children, and their children's children. No more taxation, and actually, government performing a positive benefit through a given return to the peoples of this country by performing their function and business as usual. Thank you.
***************End of Additional Information Add-On***********************
"All that's necessary for evil to triumph is for good men and women to do nothing." Awaken. Help us to regain our country!!!
Sample letter that can be sent to various government and private agencies;
Be sure to substitute the name of the governmental entity you are interested in for all mentions of Local Government Entity. (i.e. Municipality, City, School District, County, State, Enterprise Authority, tollway, golf course, port authority, financial authority, etc.) who produce a Comprehensive Annual Financial Report) Also, put your own name in place of all mentions of "Your Name". ************************************************************************************************
Certified Mail # 123 456 789
From: Your Name Your Street or P.O. Box Your City, Your State & ZIP
To: Finance Officer or City manager [if sending to a city or county] Auditor General or State Treasurer [if sending to a state] or Local Government Entity
REF: FOIA Request
This is a request under the freedom of Information Act, and or, the local government statutes governing accounting and financial disclosure. Please send the following complete and accurate current documents for examining, photocopying, and redistribution:
1. Provide a certified copy of the Local Government Entity's most recent Comprehensive Annual Financial Report (CAFR), or Combined Financial Statement (CFS), as required by GASB Federal, state, and local law. Also send a copy of whatever subsequent financial reports are referenced within the notes of the CAFR or CFS. It is my understanding that School Districts are required to file their own CAFR or CFS. If available in digital format, please advise being that I wish to produce these records at a reasonable printing cost for distribution to interested parties from the public.
2. Please identify and provide bona fide full written disclosure of the revenue structure, whether budgetary or restricted by statute or the like, for any and all of the Local Government Entity's general and/or venture projects, whether handled directly or indirectly by the Local Government Entity or handled directly or indirectly by designated agents. If handled by agents, please provide bona fide full written disclosure of the names and addresses of all such agents.
3. Provide a bona fide full written reconciliation between the Local Government Entity's CAFR or CFS and the financial statements as shown within the Local Government Entity's annual operating budgetary accounting statement(s).
4. The Local Government Entity has substantial revenues in CAFR comprehensive disclosures of cash and investments. Provide a bona fide listing of all recent audits and designated account numbers for these revenue accounts including, but not limited to the Local Government Entity's general venture / enterprise revenue accounts.
5. Provide a copy of the CAFR or CFS mailing log records for the last 5 years of everyone that received a copy of the CAFR or CFS. Such records are required to be maintained by Federal, state, and local law.
6. Provide a bona fide comprehensive listing of all corporate governmental entities that produce a CAFR or CFS that doe business for or within the Local Government Entity.
7. Provide a bona fide copy of the policies, process, and/or parameters used to determine surpluses or potential surpluses from dedicated funds and the procedure in which refunding of excess revenues to the citizens can be accomplished and/or such surpluses transferred to eliminate budgetary deficits and/or cause the profits resulting from governmental activity to directly benefit the people. This letter is to be considered as written Lawful Notice, from me, Your Name, of your required oath of office and fiduciary responsibility to provide a bona fide full written disclosure when answering this request.
8. Provide a copy of any federal or state RICO statutes that are applicable or govern the Local Government Entity's jurisdiction as they apply to financial fraud and/or misappropriation of funds.
9. Send a copy of the Local Government Entity's policies, procedures, steps, etc., that are utilized to bring about the simple and conspicuous mention of the Comprehensive Financial Report and/or the Combined Financial Statement to the general public for educational and mandatory disclosure purposes.
Note: What I, Your Name, am requesting with this letter is a bona fide comprehensive summary accounting disclosure of all financial statements as noted above. If you have any questions about the outlined requests contained herein, please do not hesitate to contact me in writing.
Thank you for your assistance.
All Rights Reserved
cc: [Suggest sending a copy of your request to newspapers, and other public servants.]
*********************************************************** The order form for the video: The Biggest Game In Town, is as follows:
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These are links to the site from which this transcript was taken.
Comprehensive Annual Financial Reports (CAFRs)
Report on CAFR Research by: Walter J. Burien, Jr.
Walter Burien Jr. worked as a Wall Street Commodity Trading Advisor (CTA) for fifteen years, but now resides in Arizona. According to Mr. Burien, every state, county and major metropolitan city is keeping two sets of books. One set (the "Budget") is commonly available and tracks each governmental entity's casts and tax revenue. The Budget is the financial record that's seen by the public and used by politicians to justify new governmental services and higher taxes.
However, there is a second set of books (called the Comprehensive Annual Financial Report, or CAFR) which is virtually unknown to the public, but contains the real record of total governmental income. According to Mr. Burien, although the Budget gives an accurate account of government costs, only the CAFR gives an accurate account of government’s income. LINK TO: City, County and State CAFRs Available for Downloading
For example, while a particular state budget might report receiving $20 billion in taxes (just barely enough to sustain its $20 billion in costs) - the CAFR might reveal the state's real income is in the neighborhood of $60 billion - three times as much as reported on the budget. If these allegations are accurate, the particular state could stop charging all the taxes we are familiar with and, not only survive but, either double the amount of reported government services or give every citizen a huge tax rebate.
The implications are mind-boggling. The CAFR's reveal that the world is so different from what we are led to believe, so much more corrupt than suspected, that we are left with three choices, either; 1) government agrees to end the deception and stop overtaxing us, or 2) the American people agree to accept their status as slaves, or 3) both sides refuse to agree and precipitate a shooting revolution. The issue is that big.
Are Mr. Burien's allegations correct? How could any governmental entity dare to routinely overcharge its citizens by 200%, underreport its income by 2/3rds, and knowingly press for higher taxes based on an inaccurate budget? Worse, how could such a fraudulent system become widespread among all states, counties, cities and the Federal Government? LINK TO: A 101 CAFR learning site
Those who have made efforts to verify Burien's research indicate that the conclusions drawn by Burien are probably correct. For instance: The State of Alaska and the city of Anchorage both use Budget/CAFR accounting systems that conceal a "breathtaking" difference in reported revenue. Another researcher in Wyoming claims that a comparison of his state's budget and CAFR also support Mr. Burien's arguments. In every case, there are two sets of books and the income reported on the budget is millions or billions of dollars less than is reported on the CAFR.
These verifications of Burien's research and findings lend credence to his allegations.
What follows is an amalgam of statements or implications raised by Mr. Burien in various interviews.
Mr. Burien reports first discovering the CAFR report in New Jersey in 1989, when he helped start and incorporated a New Jersey tax protest group called "Hands Across New Jersey." While involved with that group, Mr. Burien read in the state’s Annual Budget that the total cost of all public services was $17 billion and the "net available" (the money on hand to pay all bills) was $24.6 billion. But then he asked the first question the IRS asks in any audit: "What are the gross receipts?" He added the figures from various state government sources and came up with about $44 billion and began to wonder how the state could have $17 billion in costs, $24.6 billion in cash on hand, and $44 billion annual income? The numbers didn’t add up, so he began to dig deeper.
Because his father had been Personnel Manager for the State Treasury for four years, Mr. Burien understood how to get around in the various government departments. The state Director of the Budget was on vacation, so Mr. Burien called one of his lowest level assistants and said, "I’m working on a report for Richard [the vacationing Budget Director] and I need all the figures on the autonomous agency accounts, interest accounts, investment accounts." The assistant said, "Ohh, you want the CAFR." This was the first time Burien had heard of the CAFR but he said, "Yes" and the assistant mailed it to him.
The 1989 CAFR showed that New Jersey had liquid investment funds (cash) of $188 billion of which; common stocks worth $70 billion, $10 billion in loans made by the state due from public and private corporations, and $14 billion in insurance company equity participation. The little state of New Jersey, which admitted to less than $25 billion in annual income on its budget, reported $188 billion in cash, stocks, loans and equity participation on its CAFR. According to Mr. Burien, "On that day, I learned the definition of syndicated organized crime." Keep in mind that most of the revenue and investments from the 21 counties, hundreds of cities, municipalities, school districts, state financial authorities, pension funds, and 69 enterprise authorities, all of which put out their own CAFR or Combined Financial Statement are not inclusive with the state’s revenue and investments. Totals here when looking at composite New Jersey government figures is well in excess of 1.8 Trillion dollars. Yep you heard that right 1.8 trillion. Divide that figure by the population of New Jersey to see the per capita share of the wealth.
So why are the taxes in New Jersey some of the highest in the country? The answerer is; Power corrupts, absolute Power corrupts absolutely. Mr. Burien keeps emphasizing to the public that they, the public, left the VAULT door open, and those sharp little crackers said thank you very much. The problem is that most (95%) of the public responds with, "Vault, what vault". With this well entrenched attitude of naivety by the public in place, those sharp little crackers now have even stopped saying thank you very much as they plunder the wealth in their unabated efforts towards the building of their own empires within the corporate structure of Composite Government.
The scam worked 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 primarily paid 100% of the bill for those services. That was $17 billion. NOTE: The examples shown are for New Jersey, but apply across the country in varying degrees.
However, any governmental agency that was a profit center (the Port Authority for New Jersey, the New Jersey Turnpike, and investment accounts, etc.) that generated no-tax revenue was "restricted by statute from being reported in and benefiting the Annual Budget. Why? Because the state legislature passed laws to prevent reporting the income from investment or venture profit centers on the Budget. Instead, income from these profit centers was disclosed only on the CAFR or other financial reports referenced in the notes of 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 (Cash Additions) for 1989 from all state agencies, departments and sources was $86.799 billion. In other words, New Jersey State Government from "all sources" was grossing $87 billion to provide $17 billion in public services as seen in the openly represented “Annual Service Budget”. New Jersey citizens were paying $5 for every $1 in services they received, and the state was pocketing the other $4 as "profit."
When breaking down the true revenue income, the most important revelation was that only one third of the states income came from taxes, fines and fees. Two thirds of state governments income came from "Other Sources" with no direct tie to the publicly known budget. When looking at the openly disclosed "Budget," which each year continued to grow at a runaway pace, here ever expanding taxation primarily covered the expenses.
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 the current market value. In other words, if the state bought a stock in 1968 at $1.25 a share and it’s worth $300 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.
But Mr. Burien goes further - he claims that the dual system of books is not unique to New Jersey, but also common among the over 54,000 local government corporate entities operating within all fifty states. Moreover, he claims the dual accounting system used ten years ago in New Jersey was created in 1946 through an organization by the name of GFOA (Government Financial Officers Association) and is the primary local government accounting structure being used today.
For example, "In 1987 Arizona’s annual service budget reported $2.8 billion in revenues but the state's 1987 CAFR reported total cash receipts of $3.1 billion, a mere $300 million difference."
"However, in 1997, Arizona reported an Annual Service Budget of $5.5 billion while the State's CAFR (printed by the Auditor General's Office) showed total gross cash receipts of $17 billion. That's a difference of over $11 billion. In just ten years, Arizona had caught up to New Jersey in that both states' annual budgets reported less than one-third of the actual gross income seen in the states' CAFRs.
"CAFR and 'Combined Financial Statement' reports indicate that the composite totals for all government (Federal, state, county and city) ownership of publicly traded stocks exceeds $32 TRILLION (53% of the total ownership of all listed stocks from ALL exchanges), $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.
Governments use Bond Surety Escrow Accounts to evade that pesky little rule that government should not operate at a "profit." That is, government should not impose more taxes than it actually uses to run the government. By designating tax revenue that exceeds operating costs as "Bond Surety Escrow" for future liability, government avoids calling excess revenue a "profit" and is thereby enabled to continue to enrich itself at public expense.
To illustrate the potential for abusing "future liability payments," consider the New Jersey plan in the 1950s to build the New Jersey State Turnpike and Garden State Parkway Authorities. The state asked voters to approve a $7.5 billion bond to construct the turnpikes. The state explained that these turnpikes would be operated as toll roads by the bondholders until the $7.5 billion bond was paid off - but the bondholders could not operate the toll roads at a profit. Once the bonds were repaid, the turnpikes would revert back into the state’s Annual Budget as a normal cost/revenue item. The public voted Yes.
Over the following years, the state sometimes alleged that the toll revenue from operating those turnpikes failed to cover their operating expenses, and so additional bonds were passed to fund the turnpikes. As a result, in 1990, the total bond liability still owed for the turnpike had grown to $14.5 billion. But guess how much was in the 'Bond Surety Escrow Accounts?' $38 Billion! Enough to repay the original $7.5 billion bonds almost four times!
How could that happen? Say the toll road made a $400 million profit for the year and the scheduled payment on the $7.5 billion bond was $100 million. The state made the $100 million payment but kept the extra $300 million in a Bond Surety Escrow Account which generated substantial annual dividend returns for 'future liability payments.' Although they kept the $300 million, they did not declare it as an asset but wrote it off as a line item payment. In other years, even though they made a profit, they’d allege that they lost money and therefore floated more billions in bonds. (Guess who pays?)
The bottom line is that New Jersey and other local government entities are collecting hundreds of billions of virtually unreported dollars from "Other" operations. The motivating factor is not public welfare, but control of those billions.
Mr. Burien not only alleges that the dual accounting system exemplified by CAFR is not only used by all fifty states, but also by all counties, cities and the Federal Government itself. If Mr. Burien’s allegations are correct, they comprise the most damning indictment of big government yet seen. In sum, Mr. Burien implies that our government is in fact a criminal enterprise bent on oppressing Americans by extorting several times as much tax revenue as it spends on public services and using the majority of those extorted revenues to enrich, empower and enlarge government at public expense.
Mr. Burien contends that the inner circle of the individuals controlling the top wealth of this structure, have the attitude toward the public of: Keep the Chipmunk (the public) running on the treadmill, as through trickle-down economics, just enough revenue is supplied to keep the chipmunk running at optimum efficiency as the top inner circle controlling parties tap off 80% of the energy produced by the treadmill. The key words here are "Optimum Efficiency" and by the definition of what the public has allowed to happen as they left the vault door unintentionally open, the true final effect of forced labor and subservience by unrestrained takeover.
According to Mr. Burien, although the public is absolutely ignorant concerning CAFR, the primary cause for that ignorance is not the politicians but the mainstream media. When Mr. Burien first discovered the CAFR reports in New Jersey in 1989, he went on radio 101.5 FM in a live 45 minute interview. Two days later, that radio station was threatened with losing its license and was almost shut down. CAFR had become another example of - "third rail journalism" - any reporter or media outlet that touched the issue would be silenced or driven from journalism. As a result, there’s been a total mainstream media blackout on disclosing CAFR reports. For over twenty five years the directors and CEOs of the primary syndicated media organizations both print and broadcast, were sent state CAFR reports each and every year, as they maintained a blackout towards the simple mentioning of the report.
Mr. Burien reports the discovery of the fact that New Jersey State Judges are vested in a personal retirement guarantee of $5,000,000.00, per judge, after they serve as judges for one year. Federal district court judges did not have a retirement or pension plan do to the fact that they were appointed for life. Being appointed for life they received their full paycheck and benefits for life. Do you need anyone to spell it out for you? Would a New Jersey State or Federal District Judge allow an attack on the squirreled away $Billions and jeopardize his entry into $Millionaire$ status? The inner circle gets the gold!!
Later, Burien learned that the New Jersey official in charge of discrediting his CAFR discoveries was a former reporter (Harvey Fisher) who’d been appointed Assistant State Treasurer - even though he had no former financial background. Burien investigated his background and learned that as a reporter he made $35,000 a year. But as Assistant State Treasurer he made $65,000 a year - plus a Carte Blanche expense account of $125,000. !????????
Burien claims this was not an aberration: "I knew there was a state data search department under the Department of Treasure Personnel division which tied all agencies and departments together. I called that department and asked for a data search on all key level directorships and supervisory positions for all budgetary or autonomous agencies, and they came up with some 3,400 names from several administrations. Almost 1800 of these Directors were former editors or reporters! It is a virtual certainty that many of these appointments were payoffs for the journalists’ previous "cooperation" in spinning or silencing stories to suit government.
If you conduct a comparable search in other states, you may find a similar symbiotic relationship between government, editors, and reporters. The more money held and generated by an agency, the higher the percentage will be. If so, the media’s "liberal, pro-government bias" may run much deeper than anyone has imagined, and the "military-industrial complex" described by President Eisenhower in the 1950’s may have been replaced by a "media-bureaucracy-banker complex" in the 1990s.
Therefore, Mr. Burien recommends that once you analyze your state’s Budget and CAFR reports, you insist that your local news mainstream media (TV, papers, radio) raise the "Public Awareness" by reporting the difference between the composite "total of cash receipts from all agencies, departments, investments, etc." and the "actual total composite revenues held or controlled." Mr. Burien started with national disclosure of the CAFR and the structure behind it on June 8th 1998. In 1999, GFOA and GASB (Government Accounting Standards Board) changed the accounting requirements for local governments within the Combined Financial Columns of the CAFR from; All revenue, income and investments being shown, To; All revenue, income and investments being shown that were necessary to meet obligations and liabilities of that local government. This change in accounting is substantial. The good point here for disclosure is that you can look at a pre 1999 CAFR report, 1997-95-93, etc., and spot large drops in revenue from post 1999 reports in comparison with pre 1999 CAFR reports. With this being done, you now know to ask and look for the accounting of those revenues taken off the balance columns of the CAFR. Read the notes of the CAFR carefully.
If your local media refuse to publicize your state's CAFR, they may be cooperating with a criminal agreement which has effectively silenced public disclosure of the CAFR reports for over forty years. However, once Americans know how much money is out there, where it’s coming from and where it’s going - the government’s and the inner circle's game will be over.
Any media that refuses to make immediate mention of the CAFR report should be publicly and aggressively boycotted. Media exposure is the jugular vein of the evil and corruption.
A video produced in December of 1999, by Mr. Burien, entitled: The Biggest Game
In Town, is available and is set up for airing on your Public Access or local
TV stations. Mr. Burien, in this video introduces a program that could lead to
the final elimination of taxation in this country with a possible dividend
return to the public by and through the restructuring of the principle of
operation of government by public mandate in making the public the direct
beneficiary of the wealth. The information on the video is a must see for every
Date sent: Sat, 1 Feb 2003 08:31:43 -0800 (PST)
Dear Steve, Please forward this on to as many as possible...
Date: Sat, 1 Feb 2003 11:02:14 EST
Subject: They grabbed my son yesterday - 01/30/03 at 3:30 p.m. - WJB
To: email@example.com, firstname.lastname@example.org,
I was at a dependency trial scheduled for Thursday and Friday in Camp Verde,
AZ, to get my seven year old daughter back into my custody. A child who I had
not seen for four years. My 3 year old son John Joseph Burien I had arranged
to be in day care in St. Johns, AZ where I recently moved as I attended the
dependency trail for my seven year old daughter in Camp Verde, a 4 hour drive
As I was in court in Camp Verde, CPS grabbed my 3 year old son John Joseph
Burien in St. Johns, AZ. I have not seen him since and they said I would not
see him until next Tuesday. They informed me that they would do what they
wanted to do, to and with him for 72 hours, and the 72 hours did not include
weekends only business days.
I was informed Thursday, 01/30/03, after I got out of court at 5:15 p.m., the
person, a Korean woman with two young sons of her own that was looking after
my son while I was in court, told me that CPS had taken him after the day
care center he was at informed CPS and her that he had a case of head lice,
was dirty, and still wearing diapers at the age of 3. The CPS intake worker,
Curt, tried to coerce the woman taking care of my son while I was in court
into filing a CPS complaint with their 800 line and she refused. So he called
and filed his own complaint and refused to release my son to her.
I immediately drove back from Camp Verde to St. Johns and have tried to
facilitate the return of my son with no avail. CPS did not try to contact me
when they took my son, nor did the State sponsored day care center try to
contact me. Both had my CELL telephone number. I was informed by CPS when I
arrived at their office that they had moved my son to another county.
My son and self are being severely traumatized at this time. I told the St.
Johns CPS office that I would wait outside of their office for the return of
my son. They had the local police tell me I could not wait for his return
close to any government office, and I was told to leave.
480 229-1234 CELL
THE TRUE AND UNDERLYING MOTIVE
Public Officials, Press Media, and all concerned individuals:
I have looked closely at what they do and why.
They do what they do, due to the money involved.
This motivates them to lie, coerce, manipulate, procrastinate, and steal.
Steal children for any excuse, valid or otherwise.
EXAMPLE: In Arizona if the state takes a dependency action, the local venues
The state will get $35,000 per year, per child from the Federal Government,
and if they exceed their quota, $50,000 per year.
The State will then allocate "separately" from their own locally collected
revenue another $20,000 to $100,000 per year per child depending on the
That can equate to $55,000 to $150,000 per year, per child. Most private
sector small businesses do not make that in a year. (They love crak addict
mothers with damaged babies, then the tab can go over $250,000 in the first
The payouts go to the state agencies, psychologists, doctors, lawyers, State
attorneys, transportation agencies, foster homes, home study agencies, etc.,
all of which are on the payroll of the state, and all of which, outside of
the official state agencies, if you look closely you will find the local
City, County, State Officials, Judges, and Attorneys incorporated and then
direct all of the business to their own companies or affiliate professionals.
Companies that reap obscene profits from their self created industry of child
abduction. For every good move CPS takes, the other 3 are motivated out of
self enrichment. For every good move they make, they will turn their backs on
2 others of equal or worse situations due to political pandering involving
drugs or prostitution with someone connected with the local government
syndicate. A syndicate that is inherently designed for self enrichment of the
>From what I have observed, when they take a child, if their is a choice of
what parent to return the child to, they will pick the parent with the most
problems and dependency, that will generate their agencies and sub-agencies
the most money through whatever services they offer over an extended period
When looking at the state of Arizona's different CAFRs, (their Annual
Financial Statement) on the City, County, and State level, specifically from
their self created industry of Social Services, Arizona local governments
allocates and spends, as of the current year's financial records,
approximately 6 billion dollars. Arizona has a small population compared to
other states. The national pool of funds that run out of the troth in this
arena would exceed a half a trillion dollars per year at this juncture in our
My, are the perpetuators of this child abuse and related facets of that
industry, and their friends becoming wealthy. But when you look at the money
involved, and thus the underlying prevalent motive, the true abuser is
evidently clear, and in overall perspective, it is not the parents.
Keep in mind the general populace directly funds these operations, and thus
the administrators of these operations have the same motive in their
marketing strategies and information releases to the public. That being to
lie, coerce, manipulate, procrastinate, and steal. Steal children for any
excuse, valid or otherwise.
If you wish to distribute, post, or publish my comments, please do so.
Walter J. Burien, Jr.
P. O. Box 2112
St. Johns, Arizona 85936
Home Page: http://members.aol.com/_ht_a/cafr1/CAFR.html
Walter J. Burien stumbled across the New Jersey Consolidated Annual Financial Report in 1989, and has been researching the subject since. He first made an aggressive move into the public forum approximately two years ago. And after watching the first of what are now two videotapes three times, I'm convinced that the subject is tremendously important, and can be used in public forums to shed condemning light on all government institutions.
So why is the CAFR information so important? According to Burien, in the last quarter century, governments in the American system have moved from 8-10% to approximately 49% ownership of the nation's financial and production assets. He estimates that governments own in the neighborhood of 65% of all stocks. Gross assets owned by governments exceed $60 trillion.
In order to demonstrate how the wool is pulled over our eyes, Burien uses an executive making $100,000 per year for an example. Suppose this executive sets up a budget each year. He allocates $20,000 per year for household operation. This is his "operating" budget. One year, household finances might be only $18,000, so he has a $2,000 surplus. The next year, household expenses might run $25,000, so he has a $5,000 deficit.
While the $20,000 household budget is an operating budget, it doesn't account for the $80,000 per year the executive invests in stocks, bonds, and other wealth-producing enterprise. If you look at the household operating budget, you don't see what may be a million-dollar investment portfolio. Our government entities, whether State and Federal governments, county, municipal governments, school boards, or whatever, do the same thing. They make annual operating budgets. The "taxpayer" pays 100% of these budgets via taxes of various sorts. In the meantime, revenue-producing enterprise such as municipal utilitity authorities, venture and investment funds, etc., are not shown on annual operating budgets, and the revenue they produce is constantly reinvested, so the "off-budget" growth is astronomical.
Recall when Orange County, California got clipped in the derivatives market for a $1 billion loss, and there were red flags concerning whether or not the county would have to take bankruptcy? The story suddenly vanished. Why? Because someone unearthed the Orange County CAFR and found that while there was a billion-dollar loss on derivatives, the county still had $16 billion in profitable investments. Burien found that the city of Manhatton has $1.2 trillion stashed away. People in cities where their municipal governments have promoted $5 billion in taxes to build football stadiums in the last few years will be pleased to find that they probably could have built them with pocket change.
One of the examples Burien uses in the video is the State of Washington, either 1997 or 1998. In the previous decade, population growth was only about 8%, but the government "take" exceeded a 100% increase. In the meantime, Washington's asset valuation has gone through the roof.
People have been trying to get a copy either of municipal or county CAFR for some time, but they're not cooperating. According to Burien, this is pretty common. However, there is more than one way to skin that particular cat: CAFR reports are sent to local libraries, and, of course, State governments. I suspect that if you go to Federal Depository libraries at state universities, you can find all of them for your state in complete sets, or in the alternative, go to the state capitol library. They'll all be there.
I would suggest that every patriot group secure at least one set of the Burien videotapes so you can view them as a group, then discuss how to secure the information for your state and local governments, school boards, etc., and how to deploy a use strategy.
In the videotapes, Burien employs some terminology we need to learn. I don't know that it is all legal terminology, he may have coined some of it himself, but it is for the most part effective for conveying information relative to the CAFR's.
In my estimation, Burien's research is about as important as anything to come down the pike, particularly where the political forum is concerned.
I might schedule myself on the agenda at city or county commission meetings, or go visit with a group at the Legislature. And I might show up at a few campaign functions to ask incumbents, "Considering that the city is sitting on ten zillion dollars, don't you have tremendous audacity asking for a sales tax increase?"
They like those kinds of questions.
Walter Burien's videotape, "The Biggest Game In Town", can be purchased for about $15.00.
Email for Burien - CAFR1@aol.com
Well, there you have it. I know there is some redundancy here, but I did not wish to edit out anything for fear of clipping something important. We will be following this still unfolding story very closely and have already established contact with Mr. Burien. Watch for the latest from The Wise One – Ken Kay, as he has a story to tell on this subject as well. That article will be added to this site as soon as it is completed. I will be inviting commentary from others who are diligently working to further expose this atrocity – there ARE others! We have quite a little drama going on right here in the state of Alabama, where our governor has proposed a “tax accountability package” to be voted on next month by the public. What a misnomer! There is no accountability now, but this thing will only add to the LACK OF accountability as it soaks up more and more money from the citizens of this state! To read more about this specific situation, I invite you to visit this site.
As I have said throughout my commentary in too many articles to count – money is power, and the more we give to the governments the less control we have over our own lives. Please study this information thoroughly and do whatever you can to spread the truth and help take back our individual sovereignty from this destructive quagmire of deceitful taxation. Deb V