Detroit: The Latest Bankruptcy Lie

Source: http://realitybloger.wordpress.com/2013/07/20/detroit-the-latest-bankruptcy-lie/

In case you haven’t heard, municipal bankruptcy is now all the rage. When smaller municipal corporations (only corporations can declare bankruptcy) had little resistance as test cases for these outrageous claims of fraudulent bankruptcy and default, the larger municipalities gained the confidence that the financially illiterate cesspool of people as citizens don’t know there heads from a hole in the wall when it comes to the financial reporting apparatus of government. The people were determined to be sufficiently ignorant of even the basic checking account balance of the general fund in their local governments and school districts, let alone the massive collective government investment scam robbing them of the entirety of their wealth, making it reasonable to assume that these municipal corporation’s financial position would likely never be challenged by that clueless mass of the indentured. And so the latest trend of conspiracy and fraud against those debt-slaves continues… this time in the not so great City of Detroit.

Considering its checkered past; riddled with the disappearance of industry to U.S. funded infrastructure economies like Mexico and China, it would seem to the average citizen that Detroit should have done this bankruptcy thing long ago. Of course, the fact that it did not declare its bankruptcy at all was because this municipal corporation has never been bankrupt, and certainly is not anywhere near being able to claim that legitimate legal declaration today.

And yet here it is, making that very declaration…

This is very important because the legal statement of bankruptcy means nothing as a mere “declaration” until a government court makes that determination to cause it to be official. Thus, the obvious conspiracy of a government appealing to government to get government permission to default on its debt should not be lost on the reader; though in general this governance of government by government itself seems perfectly normal to most people – a regulatory body operating in a completely unregulated fashion as organized crime. Inherently, of course, this self-governance and self-regulation by government and its BAR judicial is nothing if not a breeding ground for the worst kind of corruption and greed at the expense of the governed. For the people in their state of fear, entertainment, and confusion are certainly not regulating those regulators…

And a corporate judge of the International BAR Association will decide, not the people being defaulted upon.


–=–

ALIPAC printed the following “facts” facts about Detroit that on the surface are absolutely mind-blowing…

1 – Detroit was once the fourth-largest city in the United States, and in 1960 Detroit had the highest per-capita income in the entire nation.
2 – Over the past 60 years, the population of Detroit has fallen by 63 percent.
3 – At this point, approximately 40 percent of all the streetlights in the city don’t work.
4 – Some ambulances in the city of Detroit have been used for so long that they have more than 250,000 miles on them.
5 – 210 of the 317 public parks in the city of Detroit have been permanently closed down.
6 – According to the New York Times, there are now approximately 70,000 abandoned buildings in Detroit.
7 – Approximately one-third of Detroit’s 140 square miles is either vacant or derelict.
8Less than half of the residents of Detroit over the age of 16 are working at this point.
9 – If you can believe it, 60 percent of all children in the city of Detroit are living in poverty.
10 – According to one very shocking report, 47 percent of the residents of Detroit are functionally illiterate.
11 – Today, police solve less than 10 percent of the crimes that are committed in Detroit.
12 – Ten years ago, there were approximately 5,000 police officers in the city of Detroit. Today, there are only about 2,500 and another 100 are scheduled to be eliminated from the force soon.
13 – Due to budget cutbacks, most police stations in Detroit are now closed to the public for 16 hours a day.
14 – The murder rate in Detroit is 11 times higher than it is in New York City.
15 – Crime has gotten so bad in Detroit that even the police are telling people to “enter Detroit at your own risk“.
16 – Right now, the city of Detroit is facing $20 billion in debt and unfunded liabilities. That breaks down to more than $25,000 per resident… As Detroit Emergency Manager Kevyn Orr noted last week, it took a very long time for Detroit to get into this condition…

–=–

Of course, this article like all others doesn’t mention the legal crime operating behind these horrific scenes and reported in the Comprehensive Annual Financial Report (CAFR) – what I have nicknamed the “Achilles Heel” of government. While these facts and figures are certainly important as to the physical state of Detroit, the absence of public information on the actual financial state of that fictional municipal corporation government called “City of Detroit” is never discussed due to the overwhelming lack of exposure and coverage by every news outlet in America about the financial statements required by Federal law for every government entity and corporation in the United States. The greatest open secret in fascist history remains open and secret. In short, these municipalities across the nation in every State have exacted, extorted, and excavated all of the wealth of the people for its organized and collective investment schemes that, not ironically, are only disclosed in the CAFR of government. And collectively the over 230,000 local and state government entities across the nation have been legally required to funnel taxpayer money into investment funds that ultimately never benefit these local or state governments or their people. Instead, they invest in “emerging markets” in countries like Mexico and China  – which soon will become the largest economy in the world thanks to the ignorance of the very citizens of the United States that have no idea this has been happening for over 70 years.

One would in general look at the above factoids about Detroit and justifiably assume that the decaying state of that City is a direct reflection of the similar financial state of the government corporation that controls that area. This, however, is patently false – a fallacy built up through media and political misrepresentation.

The true culprit of that misrepresentation is in the form of the hand selected “budget report” that is delivered to the people publicly each year. The people are never told that this “budget” is actually not the original and main financial statement that is created by governments and audited by independent accounting firms. You see, the budget report is nothing but an intentionally dumbed-down version of the Comprehensive Annual Financial Report (CAFR), which is filed each year as a requirement of the Federal and State legal codes.

What does this mean?

It means that the budget is merely a reflection of what I call the “creative accounting” that is applied to the audited CAFR report so as to make the budget report appear to be in a state of decay, debt, default, and loss. While the CAFR may show assets of millions or billions in cash and investments, the budget report will be creatively manipulated by this special creative accounting process to create an illusionist “balance sheet” that somehow, incredibly, and magically turns an asset into a liability.

Detroit is of course no exception to this rule. For the decaying state of this city has very little to do with the financial state of this municipal corporation. But the fallacy remains that as the city decays so too does the financial state of its government.

Here is a link to the City of Detroit’s 2012 CAFR:

http://www.detroitmi.gov/Portals/0/docs/finance/CAFR/Final%202012%20Detroit%20Financial%20Statements.pdf

**Note that this website takes you to the Detroit government (.gov) website.

While I will not go into the full detail of how this corrupt Municipal Corporation of organized crime has gotten to this point, I will just point out the most important factor in determining whether or not this corporation is actually bankrupt – a factor that I guarantee will be ignored by the government court and bankruptcy judge in this case if the people do not finally rise up and demand that Detroit pay its debt today instead of defaulting on it. That factoid is the promotion of its future debt payments as a current liability effecting today’s balance sheet. The fact is that 99% of the entire structure of municipalities across the nation could be out of debt tomorrow and still have money and investments to spare (be in the black) if it weren’t for the fact that governments enjoy, promote, and profit from the interest (usury) created by debt. In other words, instead of using the money it holds today for services in its investment funds, a government will create a municipal bond and pay that loan off over 20-50 years at interest. Sometimes it is other governments across the nation that are funding those bonds, sometimes banks, and sometimes Public Private Partnerships (PPP) are created in agreement for the loan by private or publicly traded corporations. Ironically, that money that government could have used in lieu of that loan to pay for that service is often invested in such things as corporate bonds – loans to governments, banks, and private and publicly traded corporations. And these bonds are bundled and sold as securities on the bond markets as commodities – debt contracts worth a future value. And the investment scam continues while televisions pump digital airwaves of Stars dancing and Idols singing.

On page 41 of this CAFR we see the illusion blatantly spelled out for us in the basic “Statement of Net Assets”. Of course, this is not the full disclosure of investment fund totals for the City because of other creative accounting within the CAFR designed to minimize those balances shown on this chart, but it shows the scam very well in its full corrupt glory.

The City claims to have over $10.6 billion in liabilities, which it then “balances” against about $10.3 billion in assets. This leaves a “balance” of assets that gets shown to the people of a negative $3oo million dollars.

Just one problem though…

You see, most people would simply consider this balance as the cash balance of the government, having no clue about the investment scam their government has participated in for decades that funnels taxpayer monies out of the taxpayer base and into governments investment funds.

And so for the fiscal year 2012-2013 ending in the month of June last year, the actual current liabilities (due within one year) – which represent debt payments for that fiscal year that would be paid in that fiscal year – only amount to about $309 million.

This means that the other $9.1 billion dollars listed here as “due after one year” is all future debt payments that will basically amount to somewhere around a $300-400 million dollar amortization schedule for the next fiscal year and so on. In other words, for the 2013-2014 fiscal year, Detroit’s actual “current liabilities” are only $300-400 million dollars. The rest of that $9.1 billion still is not due until future payments are made in 5, 10, 20, and up to 50 years in the future!!!

And yet those payments and future debts are somehow effecting the current balance of today?

Can you say creative accounting?

Can you say FRAUD?

The trick here is that, as with all municipalities across the nation, by law these governments are able to and encouraged to not include future assets in the form or fees and taxes that will be collected in those future years that will certainly pay for those future debt payments. So here we see that government is claiming a future liability as a current liability, and yet conveniently disregarding the projected future assets it will receive in the future as current assets to balance the future liabilities.

This “creative accounting” trick is used by all governments – BECAUSE IT IS THE RECOMMENDED STANDARD OF PRACTICE BY GOVERNMENT TO FUND THE COLLECTIVE ORGANIZED INVESTMENT SCAM ACROSS THE UNITED STATES!!!

So what is the true financial position of the government of Detroit?

It can pay off, if it chooses to, all of its future debt today with its current assets.

Of course, this would mean that the interest charges on that future debt and bonds would not be accrued in the future and therefore would not be paid out, bringing the actual total liabilities due today (without future interest charges attached) significantly down it total, since by paying off that future debt today no interest would be charged for anywhere from the next 10-50 years.

For an in depth explanation of this creative accounting trick and how you can identify it on your own municipal CAFR, see my research here: http://realitybloger.wordpress.com/2013/02/27/unmasking-the-cafr-scam-in-every-city-usa/

And check this out to see where your tax dollars really go: http://realitybloger.wordpress.com/2012/07/10/cafr-school-how-corporations-are-funded-by-taxpayers/

And so here we stand, another high profile municipality pretending to bite the dust while hiding its real wealth under false accounting principles that are allowed at the very top level of the federal government. Detroit City will act upon the purpose of its incorporation by utilizing the “limited liability” function of that privilege – a privilege once only granted to honorable men who sought to improve and strengthen all men, not just themselves. And this protection of government called incorporation now protects crime instead of the people who are harmed by that crime. For all of government is naught but a limited liability corporation collectively organized in harming the people.

–=–

At this point it has been reported that the Detroit government is tearing down up to 350 abandoned homes and buildings per day in that city. Its plan is to create a “model” Agenda 21 city; a green city; one that is built towards the sky with compartmentalized condo housing instead of sprawling out from its center where land may be enjoyed by single family dwellings. This re-imagining of city life will become a beacon of the future of “smart growth” and the “smart grid”, matching lifestyle and technology to create the perfect Orwellian fit for those who love to love their biometric servitude and love to be on camera. it will be a model city built on retracting individual rights in lieu of the collective good of the citizenry as is laid out in the U.N.’s Declaration of Human Rights that has all but usurped the constitution of the United States – this is the future of Detroit Rock City and likely a city near you…

The economic fallacy that growth equals a good economy ultimately and ironically requires the destruction and pestilence we see in Detroit. And so, in order to grow the new city, the old one must be destroyed to make way for the ever-growing economy. It is in the best interests of the government corporation and its investment scheme for this to happen. And even more frightening to contemplate is that bridges, roads, tunnels, buildings, sewers, water, electrical, and other infrastructure is more profitable in decay for that investment scam than it is as a well-maintained infrastructure. Destruction and decay requires investment and promotes growth. This is the model of government and its “economy”.

Detroit is not bankrupt. It has created the illusion of bankruptcy by such common financial trickery as pension pre-funding – where future debt payments must be paid in advance so that government can invest that taxpayer money instead of using it to fix up the broken City. Congress used this same trick to make it appear that the Federal Post Office is broke, while in really it just created legislation that forced the post office to borrow money from government and corporate sources to pre-fund the Federal Pension funds instead of paying the normal contributions over time. In other words, government is forcing itself to pay future liabilities today – which just happens to have the good-for-government and bad-for-the-people side effect of creating the unnecessary illusion that bankruptcy is needed. And so government is now the largest defaulting entity in history. And the people blindly support what they don’t understand, allowing that fraudulent government machine to place the responsibility for its actions upon the backs of those people in the form of sheer usurious debt, while laughing all the way to the bank.

Imagine such greed and opportunity that would make men in the public trust force the bankruptcy of a city just because they don’t want to wait to receive their pension payments by taxpayers in the future. While this would seem counter-intuitive (destroying a city to support city employee pensions), the truth is that this is just business as usual. For government is not in the business of helping people. It is a financial mega-corporation with branches in every square mile of the United States with investments in the entire world economy.

How many times do I have to say it…?

Government is nothing but the organization of crime. For a government that creates, adjudicates, enforces, and exempts itself from its own laws is thus lawless – a mafia above its own prescribed laws. When the law is lawless, there is no law.

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Posted on July 22, 2013, in Politics. Bookmark the permalink. 2 Comments.

  1. THE DESCENDANTS OF THE MERCHANT OF VENICE IN ACTION IN DETROIT

    FED JUDGE WILL ISSUE VERDICT DEC. 3 ON LEGALITY OF DETROIT DECLARING BANKRUPTCY; NATURAL LAW REQUIRES GLASS STEAGALL
    November 26, 2013 • 3:23PM

    Federal Bankruptcy Judge Steven Rhodes said in a court filing yesterday, that on Dec. 3, he will hold a hearing at 9 am to discuss his verdict on whether to authorize the Ch. 9 bankrupcty filing by the city of Detroit; his written statement will be made available later. Rhodes’ action is considered highly unusual, compared to standard law practice; he is expected to speak very carefully on the record, in order to avoid grounds for appeal.
    In citation of a debt of $18 billion, the Detroit bankruptcy filing is the largest in U.S. history, but is also one of the most blatant trans-Atlantic examples, of the gutting of the physical economy, and the predations by a swarm of mega-banks, which foisted swaps and other financial rip-offs of city finances. Detroit’s situation alone exemplifies why there must be a re-institution of the Glass-Steagall law, and a bankruptcy-reorganization of the national economy.
    The Detroit bankrupcty filing was made in July by a cohort of those desiring to gut the city, including the governor and state appointed emergency manager Kevin Orr. The filing is contested by city workers and constituents on various grounds, including that there has been no good faith approach to the public good, in the negotiations, in the assertions of insolvency, and in the demands by the city emergency proposals to cut city worker pensions, sell assets and otherwise demolish what remains of Detroit.
    There are thousands of other cities, counties and various local governments in extreme, impossible financial circumstances, in particular throughout the cities of the former industrial heartland of North America—the Great Lakes states.
    In Pennsylvania, for example, there are 21 localities on the state’s “financially distressed” roster, mostly in the beaten-down former coal and steel counties. Dozens of cities and townships, including the state capital, have called on Washington, D.C. to re-instate Glass-Steagall and re-start the economy.
    In 1987, “Act 47” was passed by Pennsylvania, under which the state could declare a locality in financial trouble, and impose severe austerity measures, called “restructuring.” The roster (and date of listing) includes Pittsburgh (2003) and many nearby Allegheny County former heavy industry centers: Clairton (1988), Duquesne (1991), Rankin (1989), Braddock (1988); as well as Johnstown (1992), in the coal county of Cambria; Altoona (2012), a former rail-machining center; and many of the old eastern coal centers, West Hazelton (2003), Nanticoke (2006), Scranton (1992), and finally, Harrisburg (2010), the state capital. ” http://larouchepac.com/node/29021

    ” …….Some experts are now estimating that the payments to the megabanks UBS and Bank of America, which Detroit faces on the “interest-rate swaps” derivatives it was conned into buying, may even be considerably larger than the $225 million reported in EIR’s “Detroit Facts”. According to both the Financial Times and columnist Yves Smith’s Naked Capitalism blog, the city may face immediate looting of $700 million, on top of more than $100 million a year lost to the city for the past eight years on these derivatives bets. The appointment of Kevyn Orr as emergency manager by Gov. Rick Snyder on March 14, was itself a “credit event” potentially triggering a $400 million derivatives payment by the city, one which Orr and the banks may be “not bringing up” until bankruptcy court hearings start…….” http://larouchepac.com/node/27564

    ” Cities and counties are, however, beginning to pay the costs of Detroit “emergency manager” Kevyn Orr’s dirty work for UBS, Bank of America, and their ilk, in steadily rising municipal bond interest rates. Orr said in an early interview that he “didn’t care” what impact his actions had on municipal bond rates, as long as he made the cuts in Detroit. Already, four Michigan counties/cities have had to withdraw bond issues in the past week: Genessee County (A2 rating), $53 million issue; Saginaw County (Aa3 rating), $60 million issue; Battle Creek (AA) $16 million school bond issue; and Hamtramck, a school bond issue. All were contemplating exorbitant rates of 6% or higher. Chicago’s treasurer announced on Aug. 6 that the city’s annual interest cost estimates have risen by $2 million in past two weeks.” http://larouchepac.com/node/27666

    BANK OF AMERICA is also connected with the person of Warren Buffet a friend of JACOB ROTHSCHILD and EVELYN DE ROTHSCHILD.
    http://www.huffingtonpost.com/2011/11/14/warren-buffett-ibm_n_1092165.html
    JACOB ROTHSCHILD “Hosted the European Economic Round Table conference in 2002 at Waddesdon Manor, attended by such figures as James Wolfensohn, Nicky Oppenheimer, Warren Buffet, and Arnold Schwarzenegger ” https://wikispooks.com/ISGP/organisations/introduction/PEHI_Jacob_de_Rothschild_bio.htm https://wikispooks.com/ISGP/organisations/introduction/PEHI_Evelyn_de_Rothschild_bio.htm
    Bank Of America and Merrill Lynch ( subsidiary of Bank of America ) are also related with the Edmond De Rothschild, owned by BENJAMIN DE ROTHSCHILD and ARIANE DE ROTHSCHILD, through the persons of Gerald Levy, Matthieu Walterspiler, Barbara Colombo, Beate Bakker, etc… https://en.wikipedia.org/wiki/Benjamin_de_Rothschild https://en.wikipedia.org/wiki/Ariane_de_Rothschild
    http://www.lejdd.fr/Economie/Images/Les-plus-grosses-fortunes-de-France/Benjamin-de-Rothschild-206941
    http://www.linkedin.com/pub/gerald-levy/60/b49/b87 http://uk.linkedin.com/in/walterspiler http://www.linkedin.com/pub/barbara-colombo/26/b21/766
    http://ch.linkedin.com/pub/beate-bakker/16/a55/491

    UBS IS RELATED WITH BLACKSTONE THROUGH THE PERSONS OF KARL KNAPP AND BRUCE AMLICKE.
    http://www.reuters.com/article/2013/04/18/us-ubs-knapp-idUSBRE93H1B520130418 http://www.zoominfo.com/p/Bruce-Amlicke/20212037
    BLACKSTONE GROUP IS CONTROLLED BY THE ROTHSCHILDS AND IS CONNECTED WITH DEUTSCHE BANK, THE BUSH FAMILY, CARLYLE, AL QAEDA, ETC. .
    http://deanhenderson.wordpress.com/2013/09/27/bin-laden-the-911-illusion-part-ii-deutsche-bank-blackstone/
    http://therearenosunglasses.wordpress.com/2013/10/24/rothschilds-hidden-behind-obama-and-the-genocidal-obamacare/

    THERE ARE LINKS BETWEEN THE UBS AND THE ST. JAMES’S PLACE OWNED BY JACOB ROTHSCHILD FOR EXAMPLE THROUGH THE PERSONS OF JOHN BREWER AND SUSAN HUTTON. http://uk.linkedin.com/pub/john-brewer/15/b97/431 http://uk.linkedin.com/in/susanhutton1
    ” From his headquarters in St James’s Place in London, Jacob Rothschild has cultivated an influential set of clients, business associates and friends who have extended his interests far beyond the normal scope of a banker. ” https://en.wikipedia.org/wiki/Jacob_Rothschild,_4th_Baron_Rothschild
    EVELYN DE ROTHSCHILD SPEAKS VERY WELL ABOUT UBS: ” don’t forget that one of the biggest examples of a bank which – to me – was highlighted, is the wonderful, most prominent banking institution in the world, was UBS. ” http://www.abeldanger.net/2012/07/november-2010-bloomberg-interviews.html
    ” Stefano Rossi that in a famous interview speaks of virtuous countries and of the impending crisis of Greece and of Spain, is CEO of EDMOND DE ROTHSCHILD and began his career in London in 1988. In 1989 he returned to Italy to join Citibank.
    In 1991 he moved to S.G. Warburg and subsequently, with the company’s acquisition by SBC and the subsequent merger with UBS, was promoted in 1996 to Head of Sales at UBS. Appointed in 2001 stock market Manager and Managing Director of UBS SIM, Rossi holds the position of CEO of the italian SIM OF UBS until June 2007. During his career at UBS SIM, Stefano Rossi and his team have been elected for eight times better Italian StockBroker from the Institutional Investors Survey.” http://theyellowbrickroadfreeblog.wordpress.com/2012/05/11/the-rothschild-clan-in-italy-sleuth-bankers/
    THE EDMOND DE ROTHSCHILD IS CONTROLLED BY BENJAMIN DE ROTHSCHILD AND BY HIS WIFE ARIANE DE ROTHSCHILD.
    https://en.wikipedia.org/wiki/Benjamin_de_Rothschild https://en.wikipedia.org/wiki/Ariane_de_Rothschild ………………….

    ” The fight for a Glass-Steagall type banking sepearation in Switzerland is now reaching the boiling point, with the Swiss Banking Association being forced to come out in the open and attack proposed legislation in Switzerland for Bank Separation, while a grouping of political forces are now consolidating their fight to force the legislation. ………………………….
    UBS chief Sergio Ermotti, on the contrary, chose to declare war in an interview with the economic magazine L’Agefi. While the apparent subject of the interview was the UBS gains from its investments in Vodafone, his remarks came down to an attack on the bank separation initiative, and, in particular, on SPP leader Christoph Blocher. In view of those financial gains, Ermotti said, it is understandable why people who want to strengthen the Swiss financial center and its banks, keep pushing bank separation. “It is also fundamentally difficult to carry out a professional discussion on the issue,” he protested….. ” http://larouchepac.com/node/28272 http://www.telegraph.co.uk/news/politics/8875360/Taxman-accused-of-letting-Vodafone-off-8-billion.html
    ( More Evidence of How the British Looted Detroit to Death http://larouchepac.com/node/27516 )
    ( Detroit: Pensions or Derivatives? Glass-Steagall Would Have Made the Choice http://larouchepac.com/node/27528 )
    ( CUTS IN HEALTH INSURANCE FOR DETROIT CITY WORKFORCE http://larouchepac.com/node/28731 )
    http://www.rollingstone.com/politics/news/gangster-bankers-too-big-to-jail-20130214
    ( UBS, Scared by Glass-Steagall, Announces Fake Pre-Emptive ‘Separation’ http://larouchepac.com/node/28739

    THE JUDGE STEVEN RHODES WILL DECIDE IN THE RIGHT INTEREST OF THE POOR PEOPLE OF DETROIT OR IN THE INTEREST OF THE USURERS OF LONDON AND GENEVA ?

    http://wikimapia.org/6825620/fr/Chateau-de-Pregny http://www.panoramio.com/photo/77169200 https://en.wikipedia.org/wiki/Waddesdon http://www.waddesdon.org.uk/ http://www.thefullwiki.org/Waddesdon_Manor http://www.thefullwiki.org/Ascott_House http://www.breathingenglishair.blogspot.fr/2012/04/ascott-house-buckinghamshire.html

  2. Wow, wonderful weblog layout! How long have you been blogging for?
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