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- In a message dated 7/22/00 dade@bigcountry.net writes:
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- Walter,
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- In Texas Codes, Statutes, Legislation on Local Government
Code Sec. 351.145
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- C5) amount of the balances expected at the end of the
year in which the budget is being prepared; C6) estimated amount of revenues
and balances available to cover the proposed budget; and C7) estimated
tax rate that will be required.
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- Talked to ex-Attorney General and he said it is a can
of worms to be opened. There should not be any large amounts left over
from the year that is not (C6) put into the new budget to reduce the budget
for the new year. Example: l million revenue excess would be deducted
from (say) 20 million new budget then 19 million should be taxed the people.
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- Carl: Keep in mind that revenue held under the "Budgetary
Basis" is subject to very conservative investment laws, i.e. treasury
bill, triple rated bonds, etc. (4 to 5.75% annual return). Investment funds
now or in the past 35 years funneled off of the "Budgetary Basis"
are in most cases not subject to the those investment restriction, and
will grow at extraordinary rates of return with compounded investment yields
if invested in the same fashion as pension funds.
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- The current government pension fund style type management
has yielded from 15 to 23% per year over the last 7 years!
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- One tactic being used is Bond issuance's, issued by local
governments. Say a bond issuance for a 150 million dollar road project
(or school district, or university, or prison system, or land preservation,
etc., etc.,etc.) with an annual liability of say 4.2% of which that 4.2%
or 6.3 million dollars, plus percentage of the principle payoff a year
is paid for under the budget. The tactic being used is that they will get
the 150 million, allocate say 10 million aplied up front to jump start
the project. The remaining 140 million is held by a "specialized"
financial holding company which will invest the 140 under pension fund
style management accomplishing say, a 16% rate of return or a net 11.8%
return (in the event, if for some possible ethical reason the 4.2% return
is deposited back to the general purpose operating "Budget" ).
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- The project will be delayed for 3 to 4 years. Now it
proceeds with another 30 million applied, 100 million remains on the specific
accounting for the "Budget" from the budgeted bond issuance.
Delays continue and the project competes after an additional 8 years. Let's
say an average of 12.5 million is allocated over the next 8 years using
up the remaining 100 million from the bond issuance. Now the road project
is completed 12 years after it was started. The 150 million bond issuance
obtained and allocated under the Budget is depleted.
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- Now lets see what we have here over the 12 years.
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- 1. a completed road project.
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- 2. a 150 million dollar debt with the 4.2% return, the
debt is now 150 + 75.6=225.6 minus the offset from payments out of the
budgetary basis. Debt continues until paid off from the budgetary basis.
Total principle + return on a 20 year bond issuance, you figure that one
out.
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- 3. The financial holding company on the other hand: Let's
see, 140 million at a net 11.8% return for 4 years compounded = 218.72
million dollars. 30 million is withdrawn bring down the balance to: 188.72
million dollars.
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- Year 5 = 188.72 x 11.8% = 210.99 - 12.5 = 198.49 Year
6 = 198.49 x 11.8% = 221.91 - 12.5 = 209.41 Year 7 = 209.41 x 11.8% = 234.12
- 12.5 = 221.62 Year 8 = 221.62 x 11.8% = 244.77 - 12.5 = 235.27 Year 9
= 235.27 x 11.8% = 263.03 - 12.5 = 250.53 Year 10 = 250.53 x 11.8% = 280.10
- 12.5 = 267.60 Year 11 = 267.60 x 11.8% = 299.17 - 12.5 = 286.67 Year
12 = 286.67 x 11.8% = 320.50 - 12.5 = 308.00 million dollar
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- Things now get better in year 13. The 150 million allocated
for the road project is spent. 12.5 million is not deducted, the bond is
being paid for by the budgetary basis. (taxation) The 308 million dollars
held by the financial holding company will now obtain the full yield of
16% from this point forward.
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- Year 13 = 308.00 x 16% = 357.28 million dollars, etc.,
etc., etc.
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- *********************************************
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- NOTE: the above is for example purposes only. Rates of
return vary. The model used is valid being that government pension fund
management has accomplished an average rate of return of over 16% for the
last 8 years. EXP: AZ-1998 16.85%, WA-1999 22%
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- SPECIAL NOTE: In many cases now, States are creating
their own financial authorities and using their own investment funds, to
fund their own bond issuances.
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- EXAMPLES: Arkansas Development Finance Authority, Missouri
Finance Authority, etc., etc., etc.
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- VERY SPECIAL NOTE: If the 12.5 million dollars annually
for 8 years and the 30 million dolars after 4 years was not deposited back
to the general purpose operating "Budget" the above example would
have a substantially larger ending figure after 12 years.
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- VERY VERY SPECIAL NOTE: You now know why creating more
debt for the public under the "Budget" can be a VERY, VERY profitable
proposition for the "Boys" running the show....................
The same overfunding applies to Government Pension fund management to
allow the corporate empire to grow outside of the "Budgetary Basis".
This being done outside of the publics view, as the annual "Budget"
is rammed down the public's throat, with no mention of the "OTHER"
revenue and investments coming from "OTHER" sources outside of
the "Budgetary" basis. WAKE UP CALL!! CAN YOU SMELL THE COFFEE
YET?
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- It's time to get six inches from their face saying "This
is the way business as usual will be conducted from this point forward,
IF YOU WANT TO SURVIVE" i.e. phase out all taxation mandating operations
run from the return on the investment funds, "ALL INVESTMENT FUNDS"
generating surpluses, not those specifically under the "ANNUAL BUDGETARY
BASIS." I emphasize the point of downsizing Government opperations
also.
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- The public has one advantage, and one advantage ONLY.
We outnumber the "Boys" by about 400 to 1.
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- The Judiciary is part of the game, the syndicated Media
is part of the game, the local polititions are part of the game, the investment,
insurance and banks are part of the game. And what a big game it is, 60
trillion dollar game of composite government wealth. Run and managed by
some of the sharpest crakers on the face of the planet, having an armed
police force to maintain the game, and an organizational structure uneaqualed
in this planets history.
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- If 10% of the public gets a grasp on the situation, that
makes it 40-1odds. Or "GOOD ODDS" to make it happen. If the public
makes it happen, the investment, insurance and banks still manage the revenue
and investments. No problem there, as long as they continue the same investment
performance now applied for the public's benefit. The effect on the
public, no problem there. Taxation is phased out and eliminated, and a
possible dividend return can come back annually to the pubic if the "New"
group of "Boys" operating the corporate government are doing
a good job. At least the public will have something to gauge performance
on in their determination on who gets the buts kicked out on the street
come election time. Or if necessary by indictment or recall. No more
kissing babies and telling old folk tales, or charming personalities to
appease the masses to get the vote. The only primary factor looked at will
be comparison performance, coast to coast with the public looking at their
performance for the phasing out of taxation and then, the inevitable dividend
return as the public allows them to continue the "New" corporate
government "Business as Usual."
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- No other option for effective action will prevail. Personally,
I would prefer armed conflict and the loss of my life if necessary over
the current empire building and financial rape taking place today in this
country, if in the event business as usual continues "as is",
unabated, we will maintain being the food for the well developed parasitic
nature of unrestrained government growth and the ever increasing forced
subservience "naturally" coming therefrom. The hour is late,
and the call mostly unheard!
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- _____
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- There is a group waiting for the AG's letter with the
facts, then they are going to demand the County Judge etc. to resign or
go to court.
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- What have you heard about this law that must be in every
State's Law on organizing City, County, etc. concerning proper use of
the people's money.
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- CAFR reports will start to look real interesting to many
people. Gov. Corporation should not become banks.
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- Carl
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