Government Fraud: How they Cook the Books to Claim Deficits in Surplus Budgets as shown in the CAFR

Comprehensive Annual Financial Reports or CAFR's

CAFR's are the biggest scam in history next to the Federal Reserve!

Have you ever wondered why governments never have enough money? Have you ever wondered why taxes keep going up up up and services keep disappearing? Have you ever wondered how it is that there is money for projects like "bridges to nowhere" and $7,000 toilets but no money for school lunches? Well, there is a very good reason for this dichotomy, the reason is as old as Methuselah...it's called governmental fraud or to use a more colloquial phrase...cooking the books! Here is how it's done.

All mafias have to have two sets of books. One for the public wherein the numbers are cooked and one that shows the real story. Our criminal government is no exception. The “book” that the government wants you to see is “The Budget”. The Budget only talks about revenue from taxpayers and expenditures. The “book” that shows the real numbers is called the Comprehensive Annual Financial Report or CAFR for short and it includes revenue from investments and interest as well as everything in the budget. Every State, City, County and the Federal Government has one, it is put out every year and is on the internet (see below for links). It was created in 1946.

The Comprehensive Annual Financial Report is kept under wraps because the main stream media never talk about it, they only sound the alarm when government is ready to default and needs another bail-out, another credit increase, or for services to be cut and taxes to be raised. They tow the line for their masters and as it so happens are in bed with many local, state and federal government agencies becoming treasurers, government accountants and heads of treasury departments after doing their stint as editors or journalists.

The budget is the annual operating cost per year, the budget doesn't mention the total investments, income or net worth. Alex Jones said it would be like a husband making 100k per year and telling his wife that he only makes 10k per year and basing their budget on the 10k per year. The media and the politicians (both sides of the same coin) are always decrying the shortfall in the budget based on faulty books! The public doesn't have a clue because even though the main stream media get almost all the reports each year they wont report on it. All we hear is that we have to cut services, cut social security, cut medicare or raise taxes because there isn't enough money when it's all a lie.


Government shills hide the money by putting it in “investments” like bridge repairs or waste management, then that investment or project is NOT audited. It's a sophisticated shell game. And, even though the reports are put on the internet no one knows about them, nor does the media report on them. When criticized for trying to pull the wool over the public’s eyes they will always say “well they are on the internet in plain sight”. Putting the reports on the internet gives the politicians plausible deniability when accused of fraud.

As of 1999 they no longer show all investment income from all sources, and all gross amounts now (because they know that we are on to them thanks to Walter Burien and Alex Jones) they only show investment revenue necessary to meet obligations and only targeted net amounts. So as of 1999 they have started cooking these books too! The only way to find out what the discrepancies are is to go through and meticulously compare previous years CAFR's with current CAFR's.

This is money that is legitimate just think about all the money the government is getting from black ops like drug running or the selling of guns under the table or for something as banal as traffic cops. Every traffic cop hired at a starting salary of $30,000 may bring in $100,000 in revenue conservatively. Fines, fees, permits and licenses have all gone up over 600% in the past few decades...where is the money going?


According to Walter Burien the major ownership in the stocks represented by the Dow is controlled by government funds. As of the late 1990's that number was 70%. In other words city, state and federal governments own 70% of all major stocks. Moreover, these investment managers know how to make money whether the stock market increases or decreases so these governments whether city, state or federal should have more than enough money to pay their bills and continue. However, what is it we are told over and over? We are told that city, state and now the federal government are going bankrupt because they do not have enough revenue! Moreover, if they lose money on their investments they will site that as the reason for having to raise taxes but what is NEVER mentioned is the gain on investments which more than offset the losses.

Wikipedia writes; while a budget may indicate that a specific government or agency has financial trouble and debt as a result of excess spending within the select grouping of "general fund" accounts, the CAFR may indicate that overall the same government entity has many facets possessing large holdings and income considerably greater than what is shown in a budget report or the "general fund" alone.

  • In 1994, Orange County California government lost about $1.5 Billion on investments in the derivatives market and claimed they needed to declare bankruptcy per their general purpose budget while holding approximately 11.3 billion in profitable holdings in their investment portfolios.[9]

  • The University of Kentucky's holdings of 85% of CHA Health insurance stock was documented in 2005 in the Lexington Herald Leader newspaper when CHA was sold to a rival firm as part of the UK president's effort to raise a billion dollars to fund becoming a "top 20" research university an ongoing effort.

  • In 2010, Oregon Rep. Bruce Hanna during general session when the floor was discussing what to do about the state's 3.5 billion dollar budget shortfall (fire employees, cut back on services, close state parks), stood up with the cover page from the state CAFR in hand and stated that in less than a few minutes he found $3.5B to satisfy the state shortfall, there being no shortfall when comparing the state CAFR and the previous "selective" presentation of the State general purpose operating budget.[10][11]

I spoke with Walter Burien personally and I asked him if he knew of any government whether city, state, county or federal that ever showed a true deficit on the Comprehensive Annual Financial Report. He said that in some small factions of government like rural counties they may have come short by a small amount but never in any government of decent size. He said the bigger the government the bigger the fraud. Mr Burien has suffered tremendously for blowing the whistle on this carefully constructed shearing of the public. He has had death threats, he had his children removed, he has had to defend himself from a variety of lawsuits, his dogs were executed and his business destroyed. He now lives in total isolation for the last three years.

So what is the solution here? Short of stringing up every single politician, banker and journalist (I can dream can't I?) the best thing that we can do is to shine a light into the darkness. Start by educating yourself, your family and your friends. Get copies of the Comprehensive Annual Financial Report for your area, your state and the Federal Government. Call into talk shows and radio shows and start talking about it. Walter Burien suggested passing a law that requires verbiage printed on all tax receipts stating that either local, state or federal revenue can be verified on your CAFR and then direct people to a website so that they are forced to acknowledge it's existence. I think that this is a great idea.

Have you EVER heard of the Comprehensive Annual Financial Report or CAFR?

  • Yes
  • No
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Finally, remember the saying of Edmund Burke “The only thing necessary for evil to triumph is for good men to do nothing”. We are way past the hour when we can sit back in our ignorance and let these criminals continue to rape our country.

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Comments 33 comments

PETER LUMETTA profile image

PETER LUMETTA 5 years ago from KENAI, ALAKSA

Hiding in plain sight. There it is and we didn't even know it was there. Good work Brie, another brick in the wall. The harder we look the worse it gets. There doesn't seem to be any integrity left in the Government. I have noticed on occassion when school districts or a police department of some Cities are crying for funding and then after the voters turn down their request they "find" the money in another account! I'll bet the president or congress could "find" the money for the deficit if they really tried. Good work Brie and thenk you, Peter


Nan Mynatt 5 years ago

Eye opening hub, and very complex. We the people are the ones being hurt. Someone said that we need to bring all of the current representatives home and start all over again. I worry that our President Obama was not around when these money matters took place and now he must solve them. How do you access a budget that big? Please check out a new venture that I am doing: http//NanMynatt.OneGreatMovie.com


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

The bigger the state the bigger the fraud. After researching this I am 100% convinced that we have enough money. Besides all that I haven't even touched on the squandering of money in the pentagon, through government contracts or black ops. The more you look into this NWO the more corruption you find. Thanks for commenting Peter.

Nan: President Obama WORKS for these banks, he knows everything...watch the Obama Deception on You Tube.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX

I'll go out and buy a fresh coil of rope and be ready when you are Brie. Excellent job of analysis and reporting. The whole governmental process is now centered on scamming the unaware.

Great Hub.

The Frog


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

The more I find out the angrier I get. Seriously, I think things could become violent. Please post this on your facebook and spread the word, I think (for now) education is the way to go.


Jonesy0311 profile image

Jonesy0311 5 years ago

I'm glad that you explained this so well. I have always wondered why with increased revenue from traffic cameras, gun running, drug smuggling (CIA), and income taxes the government always claims to be broke. I mean, no one even talks about the fact that income tax was a "temporary" measure adopted during WWII. Very informative hub.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

The money they are bringing in just from investments in insurance companies and banks and such is astronomical! When you think of all these other areas it's mind boggling.

After researching this I just wanted to sit down and cry. Please spread the word and thanks for commenting.


Walter Burien - CAFR1 5 years ago

To get the big eye opener of how the CAFR is hid right there in plain sight do a Google using quotes.

PUT IN THE GOOGLE SEARCH LINE - EXAMPLES TO USE:

"City of Boston" "Annual Financial Report"

"County of Nassau" "Annual Financial Report"

"City of Miami Beach" "Annual Financial Report"

"Commonwealth of Massachusetts" "Annual Financial Report"

"Port of Seattle" "Annual Financial Report"

Look and yee shall find...


Walter Burien - CAFR1 5 years ago

Per the Google searches about 30,000 out of the 184,000+ CAFRs or AFRs can be pulled up via a Google search.

Keep in mind there are many types of government entities to pull up: City, Township, County, School District, State Universities, Community Colleges, and Enterprise.

The Google search line example given of the Port of Seattle is an example of a government owned enterprise operation. Same applies for Turnpikes, Parkways, Golf Courses, Dumps, Recycling Plants, Waste Water, and State / County run financial investment enterprises.

When you think about the "collective" domestic and "Global" investments held by all, the take over of it all becomes too evidently clear...


StayPos profile image

StayPos 5 years ago from Florida, USA

Brie Hoffman,

Terrific Hub! Thanks for sharing the nuts and bolts about the CARF phenomenon! It puts some very interesting meat on the skeleton that is being dangled in front of our collective eyes!

In many ways the enormity of this squalid revelation cries out for the complete dismantling of our political system!

Ever the optimist however, I'm still of the opinion, just as we keep the baby after we drain the " dirty bath water " I know America can do the same!

Perhaps this debt ceiling drama will be the real wake up call we need!

It's time for our leaders to start casting away greed and self-interest and start embracing the great principled ideas this country was founded upon!

Up and Awesome!


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Thanks for the added info Walter, I'm so glad you like the article.

Thanks for commenting StayPos, spread the word, post this on your facebook, tell everyone.


K. Burns Darling profile image

K. Burns Darling 5 years ago from Orange County, California

Wow! I am nearly speechless, (and for me it takes a lot), what a brilliantly written, concise, easy to understand, no-holds-barred hub! I started out with a basic understanding of all the points that you touched on, but now have an even deeper understanding of how it all fits together. Great job! Voted up, useful, awesome, and interesting! Thanks for the great read!

Kristen


Walter Burien - CAFR1.com 5 years ago

Getting a wake-up call that the world is a much different place then you ever thought it was is one thing, correcting the problem is a totally different thing.

The problem has been the same for the last 10,000 years: Government has looked at the population as being a productivity resource to be drained and managed.

To correct that problem the population must become the First Line Beneficiary of the wealth and government and the corporations derive their wealth as second line beneficiary.

To accomplish this what I have proposed is the phasing out of all taxation through the implementation of the TRF (Tax Retirement Fund.

The application of the TRF can be read up on here - http://TaxRetirement.com and http://TaxRetirement.com/TRFA.html

What the TRF institutes is changing the intent of government. No longer is the population looked at as a productivity resource to be drained and managed but government will now have the intent to see the population as wealthy and prosperous as possible. In doing so it is a win-win for all involved.

Grabbing the Bear by the neck and flipping it over on its back to make it happen is going to be the rough part.

Walter Burien - CAFR1


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

K. Burns: That is exactly the way I felt when I found out about this...in fact I still feel that way. Thanks for the comments and please put this on your facebook and encourage everyone else to do so.

Walter: I'm still reading the CAFR's, which for a non-accountant, number phobe like me can be quite a challenge. I will look at your website you provided on the TRF but I think the main thing right now is to get the word NO ONE KNOWS about this.


K. Burns Darling profile image

K. Burns Darling 5 years ago from Orange County, California

Already done! Again I have to say, WOW! Thanks for writing such an insightful piece about something that affects us all!

Kristen


bolt1951 5 years ago

Hellow Brie,

Fantastic subject, I have always questioned this myself, however never had the time or put enough effort to dig so deep, but that is exactly what the game is. the average person is so busy trying to make ends meet that they simply do not have the time for the nonsence that goes on with government. Thank You for such intricate and insightfull information.


PoliticsNOW profile image

PoliticsNOW 5 years ago from New York

Lie number one they say we are broke. That is NOT true. The consolidation of wealth in this country is bringing it down. Thank you helping raise awareness.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Thanks K. Burns Darling

Bolt1951, I'm glad I could help you see the light...spread the word because very few people know about this.

PoliticsNOW: So true..it really is quite shocking when you see the truth and the evil so clearly.


foreignpress 5 years ago from Denver

Brie,

You are certainly an inspiration. You tackle subjects that are difficult and thought-provoking, sometimes at the expense of your hub score. No DIY or recipes from you! However, let me offer another perspective.

It's true that various governments have used the CAFR as a secret weapon toward personal profit. But it's more the exception than the rule. The CAFR is well-known to journalists, watch-dog groups, whistleblowers, etc., and is frequently cross-referenced to other documents. Second, is that not all journalists are shady and secretive. The liberal, so-called mainstream journalists can be bought for a song. But other journalists work long, hard hours to bring accountability sometimes against impossible odds.

The main point here is that I believe the masses prefer to be in the dark. Countless billions of people want only a job, food, shelter, and a few toys and they're happy. They care not where it comes from. If there's shady goings-on they'd rather not know about it. Further, with the world's population to reach 10.5 billion by 2050, governments are faced with creating order out of potential chaos especially when the unwashed want the same thing. There are those who control and those who prefer to be controlled. It has always been that way. To expect countless billions of people to be enlightened and informed is folly because they choose not to be.

To prove my point, what will people do with your well-written hub? Will they pursue the CAFR in their communities and hold their respective governments accountable? No. Not that they shouldn't. But they won't. And that, Brie, is your NWO. Yes, it's disheartening. It's also mass escapism not unlike lemmings leaping over the cliff, or people looking the other way as a woman is brutally battered on a busy street. This is what I've learned in 30 years as a journalist. A photo of an emaciated African child surrounded by vultures brings a tear to the eye -- but that photo will not stir action.

I've cut off a few of Medusa's heads in my time, only to see the heads reemerge in a different form and more uglier than ever. That's because the masses are swayed more by a shifty 10 second sound byte than by solid investigative reporting. But, I suppose we have to keep trying, eh?

Pardon me, I'm overdue for a scotch and water.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Foreignpress: Sigh, you are right I must admit. Even since writing this and trying to spread the word I have found that the majority of people either do not understand it or don't care. However, just as the masses are bent towards running headlong down the cliff I am bent towards the truth, always have, always will. So like Martin Luther I say "here I stand, I can do no other, God help me.

Thanks for commenting, your comments are always interesting to me.


JON EWALL profile image

JON EWALL 5 years ago from usa

Brie Hoffman

For what it's worth ,CHECK IT OUT

The Senator Coburn Report

DEFICIT WASTE IN the US GOVERNMENT see video

http://www.youtube.com/watch?v=3tVJ2gqqKWs


bolt1951 5 years ago

Brie, appears that some of the comments we wrote have vanished from here would you happen to know why?


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

No, send them again.


bolt1951 5 years ago

Brie, it's not that it was so important however the fact that it is not here kindda worries me you qouted the scripture and I wrote back and said AMen....I hope you recall..again it's not important. Just curious as to why and how that happened.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

I never saw the comment, I would have approved of them..they never showed. HP has been a bit glitchy lately, I wonder if that has anything to do with it.


Terri Meredith profile image

Terri Meredith 5 years ago from Pennsylvania

Hi Brie!

It's so nice to meet yet another person dedicated to getting the truth out there! I, too, have found it's a very steep uphill battle in trying to educate the masses. I know some very intelligent folks, but their answer is more often than not: "There's nothing we can do about it. They have complete control." Drives me absolutely nuts to hear that garbage. Personally, I believe their attitudes are a result of a well thought out plan that has touched every aspect of American living.

What's the best way to gain control of how people think, how they respond, where and how they direct their energy? Get them while they're young and impressionable, while it's a clean slate without any personal experiences that would dilute a belief in the message being fed. Take a look at the history of our educational system and what has happened in the last 100 years. Take a look at the direction education took during the 30's when Hitler was coming to power, when German technology became coveted by the US, when Americans were so downtrodden they had no choice but to look to their government for solutions.

It was also the 30's when our food began to be poisoned with all kinds of unnatural additives that have led us to consuming huge amounts of pharmaceuticals designed to alleviate or "cure" the illnesses caused by the same pharmaceutical companies poisoning us. It's all being done with a nod from our government in the form of financial backing and FDA approvals.

The magnitude of the "conspiracy" against the American people is so huge, the average person is simply overwhelmed and unable to figure out just where to start in an attempt to correct the problems. It's much easier for them to ignore them and hope they either go away, or someone else is able to stem the tide.

I'm posting this on reddit.com. Hopefully, it will serve to reach a few more people! Great job!


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Thanks Terri, we are two of a kind..post it on your face book too!


Terri Meredith profile image

Terri Meredith 5 years ago from Pennsylvania

already done and my brother did same!


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Thanks Terri, you're the best!


JON EWALL profile image

JON EWALL 5 years ago from usa

Brie Hoffman

COOKING THE BOOKS ?

Obama wants to continue the pay roll tax deduction FOR WORKING TAXPAYERS. THE UNEMPLOYED DON'T GET a tax break. Also note what really is happening. The treasury is taking money from the General Fund and transferring funds to the Social Security Trust Funds to make up for the tax cuts for working citizens. Result is that WE the tax payers are indirectly paying for the tax breaks


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Well yea, that's always been the situation.


KenWu profile image

KenWu 3 years ago from Malaysia

All governments operate the same. No one can escape as long as he is living. Doesn't matter how good or how bad a country is, such thing never escape. What you mentioned there is for US, a democratic country, imagine over here the Asian Countries, (I am in Malaysia), we can't even say a word.

And John Lennon's "Imagine" got a point there.


JON EWALL profile image

JON EWALL 3 years ago from usa

Brie Hoffman

TARP PAYBACK FUNDS

McCarthy Joins Colleagues Asking Administration to Clarify Contradictory TARP Repayment Plans

http://kevinmccarthy.house.gov/index.php?option=co...

Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts

http://theintelhub.com/2012/09/02/audit-of-the-fed

The Recovery Act requires

http://www.recovery.gov/Accountability/Pages/GAOFi...

requires the Government Accountability Office(GAO) to review the use of Recovery funds by states and localities every two months REALLY

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