-
- THE GOVERNMENTS HAVE SECRET
TRILLIONS STASHED!
WHAT THE AVERAGE CITIZEN CAN DO TO GET THAT MONEY
FLOWING FOR THE PEOPLE!!
CHURN THE CREAM BACK INTO THE
MILK!
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- Are local and state governments strapped with severe
budgetary
constraints? Far from it, WorldNetDaily columnist Geoff Metcalf
recently interviewed researcher W. Burien (CAFR1@aol.com ) about his work
in educating the taxpaying public.
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- BURIEN: I was a commodities
broker on Wall Street for 15 years. I was
one of the first tenants in the
World Trade Center. I did an
international newsline coast to coast on commodities.
I thought I knew
what was going on; I thought I was one of those sharp
little crackers.
I always thought government was maybe hiding 5 to 10 percent
maximum of
the revenue and not reporting it to the public. There was a
governor
who got elected named Jim Florio in New Jersey back in 1990 on
a new
tax platform. As soon as he got into office, there was a $2.8 billion
tax increase -- the largest in the state's history. The public was not
too happy, and a couple of DJs, John and Ken out in Los Angeles, they
started
doing some rabble-rousing and taking calls from listeners on
examples of
waste and misspending in government. I heard small figures
-- $15,000,
$25,000. The highest figure I heard was $85,000.
-
- Q: Chump change.
-
- A: Right. Being a
commodity-trading
adviser, I pulled out the Budget Report, which was
the only thing I was
aware of at the time. They had $11 billion
on-budget, $6 billion off-budget,
so the total service budget was $17
billion for the year. Net available:
$25.6 billion. So I called into
the radio show and said, "Come on
guys; you're missing the whole
point. The state is dealing with billions
of dollars. The highest
figure I heard was $85,000." I said if there
is fraud, waste and
misspending taking place, it's taking place on the
order of tens of
billions if not hundreds of billions. The DJs challenged
us to start an
organization. So, the next day, I got together with nine
other people
and incorporated a group called "Hands Across New Jersey."
We
rabble-roused and, when we had our first rally, 115,000 people converged
on Trenton and shut the Capitol down. I decided to start looking at the
budget revenue and finance so if I were approached with questions, I'd
know what I was talking about.
-
- Q: So where did you
look?
-
- A: When I looked at the budget,
which
was all I knew about, I noticed large, cash-cow investment agencies
of
state government were not on the report, the New Jersey Turnpike, the
Port Authority of New York and New Jersey -- no large returns from
investment
funds. Now they gave mention of the different agencies on
the report but
not the revenue.
-
- Q:
Don't state treasurers
have to report this stuff when they are
investing on Wall Street?
-
- A: Here's where it broke
down. I knew the director of the budget was on vacation until the
following
Tuesday of the next week. I called his office and found out
who his two
lower assistants were. I said, "Hi. This is Walter
Burien. I'm working
on a report for Richard (the boss) and I have to
have it done by Tuesday
when he gets back from vacation. I need all the
figures on all the autonomous
agency accounts and trust accounts and
investment accounts." And he
said, "Oh, you want the
Comprehensive Annual Financial Report."
I said, "Could I have
a copy?" He said I'd better ask Mark (the
next one down the line
from the budget director).
-
- Q: Notwithstanding your 15
years on Wall Street, you had never heard of this animal before?
-
- A:
First time. But I played
the cards as they
were dealt. I knew it was the most important thing I
needed to get my
hands on. So, I called Mark and said, "Hi Mark, this
is Walter
Burien. I just got off the phone with Jim. I'm working on a report
for
Richard and I have to have it done by Tuesday. I need a copy of the
Comprehensive Annual Financial Report." He said, "Oh, where do
you want it sent to?" I gave him my office address. UNBELIEVABLE
though
it may be I got it that Friday and started crunching numbers.
Here's a
state with a declared service budget of $17 billion showing a
net available
on their budget report of $24 billion. The year's totals
investments held
on the Comprehensive Annual Financial Report: $188
billion.
-
- Q: $188 billion!?
-
- A:
Correct. Investment funds,
assets and so forth. The income I started
looking for was total cash gross
receipts -- the number one item the
IRS asks you for in an audit.
-
- Q: Would this be interest
on investments?
-
- A: Total income. Whether
it be cash
collected by state agencies, federal grants, the whole nine
yards --
total income. I found it on page 174 of the 1989 Comprehensive
Annual
Financial Report under cash additions. Here's a state with a declared
service budget of $17 billion that was bringing in, "in cash,"
$86,799,000,000. I learned the definition of syndicated organized crime
on the spot and the principle of operation. Anything that was a cost and
an expense, an outright cost on a budgetary basis, the public footed 100
percent of the bill for 100 percent of the services. Anything that was
a substantial profit center was totally restricted by statute from
inclusion
whatsoever with the budgetary basis.
-
- Q:
This is above and beyond
the off-budget stuff?
-
- A:
Whenever you hear the
word "off-budget," that is something
that is inclusive in the
budget. When you look at the Comprehensive
Annual Financial Report, you
will see complete separate areas totally
restricted by statute for inclusion
with the budgetary basis. A lot of
people would refer to it as "two
sets of books," although
it's not exactly two sets of books. The budget
report is in one book,
and the Consolidated Annual Financial Report is
THE book, the showing
of the complete pizza pie.
-
- Q: There are two things I
want us to make real clear. You conducted your investigation in New
Jersey.
But this is not unique to New Jersey.
-
- A:
I'm going back 10 years.
When I found out about New Jersey, especially
when I found out they had
approximately $80 billion in common-stock
ownership, as a commodity trading
adviser ...
-
- Q:
You wanted them as a client?
-
- A: That was actually true
to a certain extent. But I was mad more than I was greedy. I said,
"How
could I have not heard of this?" Here's New Jersey
holding $80 billion
in common stock. I was a commodity-trading adviser.
I dealt with a lot
of the CEOs of some of the major investment firms
and I never heard it
mentioned -- in any circles. I found out when I
called the mailroom of
the Department of Treasury for New Jersey. It
was sent out to every editor
of every paper up and down the East Coast.
It was sent to the directors
and CEOs of ABC, CBS, NBC and CNN. And now
I'm getting mad. I was seeing
a cooperative effort at non-disclosure
and it wasn't as if it was just
created that year and the word hadn't
gotten around.
-
- Q: This Comprehensive Annual
Financial
Report, is it just a stack of numbers or is it something that
has an
executive summary and can actually be read and understood?
-
- A: The CAFR is set up to
be a simple, quick evaluation book to
show: total income, total assets,
total investments, total net worth.
What's been going on in this country
for the last 65 years is
government will always focus the public's attention
-- intentionally so
-- on the budgetary basis of the budget report. And
the only thing the
budget report is, is their annual operating expenses.
-
- Q:
Give me an example.
-
- A: Say it cost us $30,000
a year to maintain our house. Say our salary or income was $100,000 a year
and we had a million dollars in investments, and say our total net worth
was $3 million. What if we talked about our $30,000 budget as being our
net worth? It would be ludicrous.
-
- Q:
So this is an intentional
scam?
-
- A:
You've had a shell game
played on the public where governments are
constantly talking their budget,
their budget, and their budget. They
just happen to leave out the decades
and decades and decades of
investment wealth that has been building up,
the decades and decades
and decades of enterprise and venture projects
they have created
separate from the budgetary basis.
-
- Q:
Just how ubiquitous are
these Comprehensive Annual Financial
Reports?
-
- A: The Comprehensive Annual
Financial
Report was created by a group called Government Financial Officers
Association in 1946. It was a program created to standardize accounting
in all local governments so the federal government could easily see what
the true picture was. In 1981, the federal government mandated that all
local governments prepare a CAFR or, in the alternative, a combined
financial
statement. To qualify this, there are over 54,000 separate
corporations
within local government.
-
- Q:
What kind of corporations
are you talking about?
-
- A: A city is a corporation;
a state is a corporation; a school
district is a corporation. Each is filing
their own separate report,
each with their own investments. I've had a
lot of people looking at
their state reports. They see the tens of billions
of dollars they
never knew existed -- and they are floored. Then I bring
to their
attention: "You're just looking at the state report."
-
- Q:
Give us an example.
-
- A:
I'll use the state of
Washington as an example. It lists $64 billion in
liquid investment funds.
Now the state of Washington has 2,300 separate
local government corporations
filing their own separate reports:
cities, counties, school districts,
and authorities. You have 2,300
other reports.
-
- Q: And still no one does
anything
about this?
-
- A: Recently, a person was
running for
city council in Corona, Calif., with a center city population
of about
10,000. He saw the video I put out called "The Biggest Game
in
Town." This individual is an attorney. He'd been pressing the county
on different issues concerning financial fraud. He saw the video and said,
"Nah, this can't be." But he saw it on the weekend and it
motivated
him to check. He discovered the city had a Comprehensive
Annual Financial
Report. He got a copy of it. He didn't see any large
numbers in the combined
financial columns, but he observed in the notes
of the report that it directed
you to four other areas outside the
report. The first area he looked into,
he found $144 million in U.S.
Treasury Bonds sitting there. Now divide
that by a population of
10,000. That's $14,000 for every man, woman and
child. (NOTE: imagine
the classrooms, after school programs, roads fixed,
libraries funded,
ghettos gentrified, Free Clinics implemented, Senior
feeding programs,
special education provided for mentally marginal, soup
kitchens for
homeless, cheese giveaways, etc. all not getting funded NOW
that would
be appearing in your life!).
-
- Q: How do they report the
income?
-
- A: On the CAFR. That's why
it's noted
to refer to other reports for an accounting.
-
- Q:
So there is no way this
money gets applied to the general fund for
expenses?
-
- A: When you look at the general-purpose
funds, they have very stringent rules on managing taxpayer dollars. For
example, you can only invest in Treasury bills, triple rated bonds, 4.5,
5 percent max. The game has been over the past 25 years in whateverway,
shape or form, to shift revenue outside of the general-purpose operating
fund. Whether it be through a local-government investment pool, bond
refinancing
accounts, insurance company equity participation --
anything that will
be outside the general-purpose operating fund, which
is very restrictive.
( NOTE: meaning that if hue and cry raised by
PTA's in every school, creates
an amendment to city codes, with a vote,
then that huge cash is avail.
for public welfare!)
-
- Q:
Two questions I've always
wanted to ask you and never gotten around to:
1) Is there anyone providing
oversight for all these things, and 2) if
there is, do they get a piece
of the action?
-
- A:
I get a lot of phone calls,
and folks ask, "Where's all the money
sitting? What account is it
in? And who's managing it?" I would
say, this is the principle of
operation. There are over 54,000 separate
corporations. The public left
the vault door open. I give the example:
If you had 12 and 13-year-old
boys and you gave them carte blanche to
let them write their own allowance
check every week, and you make
$1,200 a week, within no time, they would
be cutting a check for $1,000
a week. If you told them you were going to
cut them back to $800 a
week, they would scream, holler, kick and use any
logic available to
them to justify how 12 and a 13-year-old boys could
not survive on just
$800 per week. There's no difference here -- you just
have bigger boys
and sharper players. People mention conspiracies and so
forth. I say
there is no conspiracy here. You just have the vault door
wide open.
The public allowed it. The bank left the doors open over the
weekend
with cash lying on the counter and no one guarding it.
-
- Q:
So who is the primary
beneficiary of this vast wealth?
-
- A: No one. No person. Only
the investment revenue, itself. There
is $60 trillion in investment revenue.
You have tens of thousands of
little empires being built all over the country,
people controlling
those monies that are invested. You know when you go
to the bank and
you get a mortgage on your house, you think you are borrowing
private
funds. When I look at the [government] revenue flows, I see hundreds
of
billions in different pension funds, investment funds, invested with
the local banks under their mortgage division. The banks are acting as
the "in between" agent getting a half a point or two-thirds of
a point for cutting the loan.
-
- Q: Walter, there is a
mountain
of information you have that we won't have time to get to. So
please let
our readers know how they can find more information on this
chilling topic.
-
- A: The e-mail address is
<mailto:cafr1@aol.comcafr1@aol.com and if anyone wants to send or show
a VIDEO of all this to a reporter, PTA president, friend, or have a
showing
of it, I'd gladly send anyone a copy of the video "The
Biggest Game
in Town," just put in the subject line
"requesting video"
and I'll send back an order form for the
video. I also include various
links for getting assorted information.
It behooves the people to legislate
to get this money back into flow.
Invested in the children, the future,
we will have a happier, more
productive society. There's so much that people
need to have a good
life. College, food giveaways, coupons for vitamin
pills maybe, or what
would be wrong with food coupons for everyone except
the upper middle
class? Right now, the amt. Of starvation, poverty, addiction
to CIA
distributed drugs or other uppers for the nutritionally marginal,
and
all the birth defects going on in the first country in the world is
astonishing. How much worse off than US are poorer economies? So this new
'churn the cream' gambit would be a model for all societies. As always,
the US will go first with its city, state governments, Then maybe with
the Federal gov!
-
-
- AUTHOR's
note: "I have
interviewed Burien a few
times over the past two or three years. His information
is remarkable.
The CAFR has been around for over half a century and, despite
the vast
money involved, this story has remained virtually ignored by the
mainstream. Sarah Foster of WorldNetDaily wrote about this shortly after
I first put Walter on the air in San Francisco.
-
- Read her stories at these URLS.
(Click on them right
now, save to cache as html, (NOT TEXT),
print it out for your PTA
or civic group, all your hotshot local
reporters, congressman, city councilman.)
Better yet, SEND it to their
email, so they can visit the URLS BELOW and
pass it on to publishers,
congressmen, councilmen in your city, voter activist
groups, whom THEY
may know.
-
- THE GOVERNMENT'S SECRET SLUSH FUNDS and Secret GOV
Scams!
-
- Go to TalkNetDaily
:
-
- And go to: Link
-
- CAFR link Pages
-
- http://www.financenet.gov/state/reports.htm
-
- and http://www.r
utgers.edu/Accounting/raw/gasb/rlinks/index.html
-
-
- and http://www.fms.treas.gov/cfs/inde
x.html
-
-
- and a good '101' learning site
http://www.cafrman.com/
-
-
-
- THEN, loaded for
bear, find ALL THE ACE REPORTERS at
your daily paper, get their email
by phoning them, then forward this to
their email. You must SAVE IT
first, as an html file (extension) so that
the live links inside it
will stay ALIVE. Write down directory where you
set it, and the path as
in C:\cafr.html
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-
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- MainPage
http://www.rense.com
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