Walter Burien's Story of California Governments' $8 Trillion in Secret Slush Funds. Where Is the Evidence? It Is Not on His Site.
April 21, 2010
For over ten years, a man named Walter Burien has produced videos with an amazing story. He says that every city, every county government, every state agency, and every state operates with a secret set of books: Comprehensive Annual Financial Report (CAFR). The public does not see this set of books. It sees a different set, which reveals break-even or even deficit operations. The second set, which he says every major newspaper has seen but conceals, indicates a pool of investments in private businesses totaling tens of trillions of U.S. dollars.
In a recent on-line letter to the San Francisco Chronicle, which was not published by that newspaper, but is published on his website, he claimed that there are 14,000 different governments inside California with a total investment portfolio of $8 trillion. I quote:
Collective CA local government's each have many specialty investment accounts (many thousands of separate funds large and small). The total from all are in excess of eight-trillion dollars. (conservative estimate)
He has claimed that all American state and local governments have these hidden slush funds.
California is just one state with an alleged 14,000 governments and agencies (evidence needed). There are 49 more. According to Wikipedia, California's gross domestic product in 2007 was equal to 13% of the GDP of the United States. So, this means that the other 49 states must possess investment portfolios totaling around $60 trillion.
He says he first discovered this system of two sets of books in New Jersey in 1989.
According to Mr. Burien, this is an aspect of collusion between American governments and American corporations.
I think $70 trillion in assets is a lot of money, especially since the total capitalized value of all of the companies -- not just American -- listed on all the stock exchanges -- not just American -- at the end of 2008 was $32 trillion. This information appears on page 32 of Annual report and statistics 2008 of the World Federation of Exchanges.
Mr. Burien's videos are on YouTube. I receive inquiries from time to time about Mr. Burien's thesis. This report is my answer.
In his video in 2000, he claimed that he had in his possession copies of dozens of these secret reports on the real budgets of state and local governments. He said he had begun collecting these, beginning in 1989. He claimed that the major newspapers are always sent copies of these reports, but that no newspaper has ever mentioned them.
Think about this. In all the years of newspaper reporting, not one mention of this has ever appeared. There has not been one leak. Not one reporter, looking for a Pulitzer Prize, has followed the trail of evidence. There has been successful a blackout on the biggest economic story of this generation, which he identifies as such.
No one ever gets caught. Not even a low-level employee.
Mr. Burien never displays close-ups of these reports in his videos. I have been unable to find a PDF image of any of these reports on his site: www.cafr1.com. It would be easy to scan these and post them.
Here is Mr. Burien's letter to the newspaper.
CAFR1 Makes a Challenge to - The San Francisco Chronicle by Walter Burien - 03/27/10********************************************** TO: THE EDITORIAL STAFF OF THE -
I just submitted a comment on the SFC California Budget challenge and wanted to make sure you got a copy.
This is information you need to know and comprehend.
Sent FYI from,
Walter Burien - CAFR1.com
COMMENT SUBMITTED AT: CALIFORNIA BUDGET CHALLENGE - http://www.sfgate.com/next10/
_______________________________________________________ It was not from the options offered but what was not shown. Collective local governments in California are now over 14,000. The State Government is the largest but collective totals from local governments from within the State dwarf the revenue pool of the state.
Collective CA local government's each have many specialty investment accounts (many thousands of separate funds large and small). The total from all are in excess of eight-trillion dollars. (conservative estimate)
To resolve the so called "Budget Shortfall" I would do a standing audit of "all" local government investment funds and then from each deduct an equal percentage to satisfy any budget shortfall "with" a 50 billion dollar cushion to last through the rough times... the "equal" percentage would probably be less than 2% to accomplish that objective, and done deal..
People have been sound-bite conditioned to think Government only generates tax income and that is where the public's focus is directed. In reality in combination of all local governments and the state from CA the investment capital is massive (noted above in excess of 8 trillion dollars) that generates in return revenue greater than all taxation collected in the state.
The public has been kept oblivious to the scope and size of these collective funds and through intentional misdirection pointed at tax income and expenditures dealt with. So your pie charts that give the impression of 100% is actually just 1/3rd of the pie when it comes down to government's true "gross income"
Now you will hear expressions like: "Here is our rainy day fund" and in reality that is like your pocket change jar you keep in the kitchen compared to the many other thousands of other government investment funds never mentioned.
You will also hear when investments are mentioned: "Oh, that is our employees retirement Funds" WRONG... The retirement funds are but one category.. (a large one) then you have self insurance funds; advance forward liability funds; special liability funds; enterprise forward project funds; and the list goes on and on. Just on the state level you are looking at around 12,000 separate specialty investment funds large and small. And with an audit of all local government specialty investment funds would be well in excess of 100,000 specialty investment accounts.
Never a peep about this to the public, and the reason why? DUE TO THE MONEY AND CONTROL involved! Governments from all across the country have been developing their non-tax income for over 65 years.
The public was presented with "Budget Reports" to account for where "Tax" income and expenditures were applied "for the year". To see the same local governments "gross income; standing investment wealth derived over decades; the investment return generated; and the enterprise operations massive wealth generated, you must look at the same local governments Annual Financial Report, or as government calls it, their: Comprehensive Annual Financial Report (CAFR). A Google search will pull up many.
For the CA State CAFR just put on the search line: "The State of California" CAFR
The state CAFR will pop up for downloading. You can do the same for "The city of Los Angeles" or Burbank, San Francisco, Sacramento, County of Los Angeles, etc., etc., etc....
Now a local government like the State of CA can say: "We have a fifty-billion dollar shortfall on our budget" (Tax Revenue) and a "true" review of the state's Comprehensive Annual Financial Report could show the state 200 billion in the black. The budget will be shown in the CAFR and it is only 1/3rd of the pie when it comes down to gross income...
Some people have referred to this as having two sets of books. Well, there are not two sets, there is only one and that is the CAFR of which the budget is a segment thereof.. an inferior report to the CAFR.
The silence (is golden) maintained as far as not a peep as to government's Annual Financial Report and non-tax income shown that most Cities: Counties; School Districts; State Universities; Enterprise operations; and the states prepare each year I call "The Biggest Game in Town" of which I put a video up on Google 12/25/08 that had over 870,000 views in the first 5 days worldwide and not a word from the media; controlled education; the political parties; or government itself. That silence is golden rule present over the last several decades is well entrenched due to the money and control involved. The public would not be pleased to find out that they have been played like this to say the least..
I challenge the SFC to publish in the next 30 days, and do so conspicuously the links to download the top 200 local California government CAFRs with it noted: "The SFC strongly suggests that every taxpayer carefully review their local government's Comprehensive Annual Financial Report (CAFR)"
The CAFRs are local governments "Holy Grail" of accounting showing collective wealth that has built up over decades. Whereas a budget report primarily shows "TAX" income and tax expenditures for the year....
If you were the "letters to the editor" editor, what would be the first thing would come to mind after reading this letter? "Crackpot"? Or "nut case"?
He stated:
For the CA State CAFR just put on the search line: "The State of California" CAFRThe state CAFR will pop up for downloading. You can do the same for "The city of Los Angeles" or Burbank, San Francisco, Sacramento, County of Los Angeles, etc., etc., etc....
Now a local government like the State of CA can say: "We have a fifty-billion dollar shortfall on our budget" (Tax Revenue) and a "true" review of the state's Comprehensive Annual Financial Report could show the state 200 billion in the black. The budget will be shown in the CAFR and it is only 1/3rd of the pie when it comes down to gross income...
I did this for the state's CAFR. I found nothing in it relating to income from huge investments in corporations. This appears on page 13.
Mr. Burien's alleged CAFR slush fund reports do not match the posted CAFR reports. He says there are not two sets of books. Then where are the facts he alleges?
He needs to produce a screencast video comparing the posted CAFR for the state of California with the one he says shows the existence of revenue from huge investments. He needs to do this with (say) a dozen of the supposed 14,000 other other CAFRs in California. He can use Camstudio's free screencast program if he cannot afford Camtasia Studio ($300).
I am not saying that Mr. Burien is a self-promoter who has concocted a fantasy story in order to hustle naive conservatives who are willing to believe anything without any evidence, just so long as the promoter says "Federal Reserve System" twice an hour or more. Not yet, anyway. If he can provide verifiable evidence of any of this on his site, meaning PDFs of several dozen CAFRs that reveal the existence of huge investments, something that for at least 10 years he has not done, then he will be seen retroactively as a prophet in his own time rather than a fast-talking hustler who targets naive and trusting conservatives. Still, this is on his site's home page:
CAFR1 - Walter Burien, since 1998 has diligently worked for you bringing forward into the light of day what you need to know about the collective scope of government finance and investments held. Operating funds are needed now. Government is not funding me to do what I do, in fact several from within government have taken much from me over the last ten years. Several friends and spectators have pitched in since 1998 to assist CAFR1 in its efforts. "That is why CAFR1 is still standing today". If you can assist with direct operating funds, Please call [xxx-yyy-zzzz] or [zzz-yyy-xxxx] A.S.A.P. I know for a fact, one (1) person can make all of the difference in the world for a positive outcome! That one person may even be you. My genuine and valid request is made of you this day: 04/27/09. Please do a Google search for "Government Wealth" You will get over fifty-five million hits now with the CAFR1.com website and the CAFR1 video "The Biggest Game in Town" being the first two hits. This was possible because of the supporters of CAFR1 that have stepped forward. PLEASE assist CAFR1 if you can. Exposing nests of scorpions for visibility to the public is dangerous. (Scorpions don't like it when you show others where and how they nest) Thank You - WJB
I did a Google search for "Government Wealth." I found his video. I then went to Alexa and searched for his site's ranking. It was 691,000 on the list.
If you believe Mr. Burien, you should send him an email and ask him the following questions.
1. Where are posted photocopies copies of a few dozen of these secret CAFR reports -- not the ones that are on-line on government sites that reveal nothing about the hidden assets -- or even one, issued by any government, anywhere?2. Why have you not posted them, since you claim to have lots of them, and they are not copyrighted?
3. Where did governments find $80 trillion worth of American equities and bonds to invest in secretly, when the total equity of all exchange-listed companies on earth was $32 billion in late 2008?
4. How is it that the existence of these secret corporate liabilities has never been revealed by any accounting firm, or the SEC, or the world's capital markets?
5. Where do these companies get the profits capable of sustaining their market value of $80 trillion for the governments' share, let alone the investing public's share?
6. Where do they get the dividends necessary to fund the governments secretly, yet they have paid on average 2% to private investors?
7. How was the existence of these secret dividend payments concealed from the accounting firms, whose directors could go to jail for conspiracy and collusion if discovered?
There's a sucker born every minute, we are told. I hope you aren't one of them.