CAFRs: The BIGGEST Secret
Reported - but for all purposes HIDDEN from American taxpayers - Local, State and Federal governments currently hold about 60+ trillion dollars of profitable investments in real estate, pension funds, insurance companies, liquid investment funds, bond financing accounts and corporate stock portfolios (32 Trillion) over 53% of America's stock market, and a large percentage of the international stock market, etc., are all revealed in their required filing of CAFRs (Comprehensive Annual Financial Reports) and noted reports therein. Walter Burien, who has been blowing the whistle on this gargantuan scam, says, "Americans OWN the majority of America's WEALTH and don't know it." With the profits rolling in from international investments, you now know the true motive behind NAFTA and GATT. * Calling it "risky" to allow taxpayers to invest a tiny 2% of their social security in the stock market is laughable when our governments ALREADY have 32 Trillion dollars invested in the same "risky" domestic and international stock markets!
Starting as of September 8, 1998, Walter Burien, a prior Commodities Trading Advisor, has been exposing the CAFR, the BIGGEST FINANCIAL SCANDAL in U.S. HISTORY, going on for over 55 years starting in 1945.
Participating in the Comprehensive Annual Financial Report (CAFR) double book accounting strategy which reeks with scandal, are nearly all Federal, State and local governments, earning unreported on the traditional Budget Reports hundreds of billions each year held in separated from the "Budget" slush funds. The CAFRs are mostly controlled by about 40 international investment management companies. For example, in 1998, Burien found:
The following interview with Walter Burien is from The SPOTLIGHT newspaper of May 8, 2000, published in Washington, D.C.
Secret Government Slush Funds Worth Trillions
For the last two years, The SPOTLIGHT has been reporting on the investigative work of veteran commodities investment advisor Walter Burien (originally of New Jersey, now based in Arizona) after Burien first appeared on Radio Free America, The SPOTLIGHT'S weekly call-in talk forum with host Tom Valentine.
What follows is a transcript of the interview with Burien. Valentine's questions are in boldface. Burien's responses are in regular text.
A transcription of your first appearance on Radio Free America was published in The SPOTLIGHT on June 29, 1998. Since that time, you've been heard on other forums all over the country.
Some 35 million people across the country have started to catch wind of the reality of the name of the game. There are action groups starting all over the country working to pull the plug on what I call "the boys."
Please summarize what the Comprehensive Annual Financial Report (CAFR) scandal is all about.
I'll start off with the No. 1 basic point, that I learned 10 years ago. Up until I learned about the CAFR and the true revenue structure of government, I always thought that government survived only through income from taxes, fines and fees. I thought that 100 percent of government revenue came from these sources.
However, when I started looking at the revenue flow as documented in the CAFRs, I saw that only one-third of the government's revenue comes from taxes, fines and fees.
Two thirds of the revenue comes in from the return on the investment funds, enterprise (profit-making) projects which have no tie with the budgetary basis and venture projects which they have established.
The budgetary basis of government operates almost 100 percent from taxes, fines and administrative fees.
However, the budgetary basis is simply their annual operating costs. What they fail to include for disclosure to the public are the decades and decades of invest- merit wealth that is building up, such as New Jersey's Garden State Parkway and the Port Authority of New York-New Jersey, which generate billions and billions of dollars not one dollar of which goes back to support the budgetary basis of the state of New Jersey for example.
The bottom line is that the public left the vault door open.
If the public gets together and focuses 100 percent and unifies on this issue, taxation can be eliminated in its entirety in most places around the country.
Yet, the public Is constantly being asked to pay more new taxes to maintain the operating budgets of their states, counties and cities, not to mention the federal government. There's a lot of money there that people don't know about, and much of it is invested in the stock market.
The truth is that the government is the stock market. Approximately $32 trillion is invested by government entities in the equities market.
If people were to quiz the state of New Jersey, as your example, about all of this money that they have stashed away in investments and other slush funds, wouldn't the state respond by saying, "Well, it's our responsibility to preserve and protect this money for the people's futures."
If you approached Al Capone and asked him about the billions of dollars he made in his racketeering activities, he would respond, "Well, I have a fiscal responsibility to protect that money." Capone also made sure to keep his criminal funds separate from his legitimate businesses. He had two sets of books.. That's what the CAFR scandal is really all about: The fact that governments keep two sets of books and don't tell the taxpayers about it.
Yes, it is a matter of non-disclosure. But now that people are starting to learn about it, they are doing something about it.
The thing to remember is that the major media are in 100% partnership with government in regard to non-disclosure of this "two-sets-of books" setup in which trillions of dollars in investments and government-sponsored money-making enterprises continue to make vast profits, even as the taxpayers are being asked to pay more in taxes to maintain the budgetary basis of government which is maintained separately.
People have sent certified letters to local newspapers and news programs asking that conspicuous mention be made of the CAFR This has happened all over the country and in virtually every case there have been refusals except in a few small, privately-owned newspapers.
There are 54,000 different state, county, local government entities, including school districts, public authorities, etc. There are probably less than 200 different firms or money managers who are handling about 95 percent of all of the funds invested by these government entities. There are probably 40 "megabrokers" involved at the top.
The managers who are handling thousands of different government operations could network together and use those funds to take over a corporation or industry group. The insurance companies are holding a phenomenal amount of government investments.
A lot of people hearing this for the first time might be inclined to say "Oh, this can't be true," (particularly if they haven't investigated for themselves). But many people have heard about the infamous bankruptcy of Orange County, Calif. What they haven't heard is the truth about that bankruptcy. Please tell us about it.
Well, Orange County lost a little over $1 billion in derivatives investments and they were crying "poverty" and threatening to shut down schools, and that the police would have to be laid off etc. However someone dug into the Orange County CAFR and found out that the county had about $16 billion in profitable investments.
Anthony Hargis, an economist from California, has looked at the CAFRs' cash position and liquid investment assets, and he had determined how long a government can operate without plucking one dollar from taxes, fines or fees and still perform the exact same services from their existing cash position.
At the time Orange County was crying poverty, Hargis determined that they could have gone on for another 11.9 years without collecting one dime in taxes and still be be able to perform the same services before they ran out of money.
Most government officials, when confronted, play the "mute" routine and say they haven't heard about the CAFR or the questions that are being raised, or they say, "Well, I'LL look into it."
The bottom line is that the game for the last 35 years was not disclosing this principle of governmental operation.
The CAFR was created by a group called the Government Financial. Officers Association (GFOA) in 1940. The city of New York was one of the first large entities to compile a CAFR, roughly in 1951. In 1981 the federal government mandated that all local governments have to prepare a CAFR or, in the alternative, a Combined Financial Statement. Both end June 30 of the year.
The federal government was having a hard time tracking down the revenues fro local governments because there were a lot of games being played. So they consolidated things into a standard reporting basis.
Since we started exposing the CAFR two years ago, the GFOA has changed the policy on the CAFR for the combined financial section. Prior to 1999, the government entities had to report all of their revenues on the combined financial column. They've now changed it to where the government body has to report all revenue necessary to meet obligations.
What it comes down to is that you have an interlocking syndicate of "the boys" who are controlling all this wealth. The more wealth they control, the more powerful they feel.
There is something we can do about all this.
There is corrective action that can be taken. If the public gets together and focuses 100 percent and unifies on this issue, taxation can be eliminated in its entirety in most places around the country. In fact, a situation can be created where, with prudent management in government, citizens could actually start receiving dividend checks from their respective governments.
I hear the words "conspiracy" used in reference to this and people refer to these hidden funds as being "stolen," but really the fact is that the public simply left the vault door open. However, most people would still say, "Huh? What vault?" Picture what would happen in your hometown if the local bank left the vault door open and all the cash out and the front door to the bank open.
If a thousand people walked by, some people would try to close the door to the bank. A lot of people would call the bank and tell them that they had left their door open and the cash unguarded.
All it would take would be for five individuals out of the 1,000 walking by to say, "Well, everyone is talking about the door being open. Let's just go in and grab the money and run." The public has allowed that five out of 1,000 to step in and take over. (The following is from an inset box bottom of first page)...
Valiant Patriot Just Won't Give Up
Walter Burien has documented beyond question that thousands of billions of dollars are in state, local and federal government investment slush funds that have been kept secret from the taxpayers, even as taxes are being hiked and citizens are being told to expect less in government services. Burien determined and has proven that all of the evidence of such funds can be found in official government reports, known as the Comprehensive Annual Financial Reports (CAFRs).
Stimulated by Burien's revelations, citizens across the country have begun to procure and inspect their own respective state, county, city and school district CAFRs for themselves and are discovering vast amounts of money that the taxpayers in those communities have never been told about by their elected government officials.
Thus far no one anywhere has been able to refute Burien's allegations and, at the same time, public officials and the mainstream media have almost unanimously refused to address the issue when challenged
Previous SPOTLIGHT reports on Burien's work have appeared on June 29, 1998, Aug. 17, 1998, July 26, 1999 and Nov. 8, 1999. A packet of photocopies of all of the previous articles on Burien's CAFR investigation can be ordered from The SPOTLIGHT for $10 by writing:
The SPOTLIGHT, 300 Independence Ave., SE, Washington , D.C. 20003.
Burien returned to RFA on March 26 and provided Valentine with an update on his activities and announced the availability of a new videotape which summarizes the CAFR scandal.. The video tape is available for $14 from CEVI, P.O. Box 11444, Prescott, Ariz. 86304. Burien has released all rights to the video and is encouraging people to reproduce the video at their own expense. Burien may be reached by email at firstname.lastname@example.org
Following are URLs with additional information on the CAFR scandal
Biggest Financial Scandal (CAFR) in US History Revealed on TV... 1-6-2000 News
Release from Walter Burien carried on Jeff Rense's SIGHTINGS website. Dayton, Ohio
DATV aired expose Jan. 12, 21, and 28. Program will also air in Cincinanati and Columbus,
Ohio. "THE BIGGEST GAME IN TOWN." "Americans OWN the majority of America's
WEALTH and don't know it."
This URL for complete interview: http://www.sightings.com/ufo2/cafr.htm
This URL for complete report: http://www.sightings.com/politics2/hidetrill.htm
This URL for complete article: http://www.sightings.com/politics4/statehides.htm
This URL for complete report: http://www.sightings.com/politics5/gvtcemetary.htm
This URL for complete report: http://www.financialprivacy.com/comprehe.htm
Excerpts from another SPOTLIGHT article
This URL for complete report: http://www.coolmedia.net/ice/cafr-c.html
Back to Misc Directory