ARCHIVED AT - http://CAFR1.com/Bankrupt.html
Is Our Government Bankrupt?
by Walter Burien - 05/10/10
Analogies are fun to use:
Is the Colombian cocaine cartel short of cocaine?
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The most important things to look at per government are the basics:
1. What was the income of that local government in 1998 - 2002 - 2005 - 2007 - 2010
EXAMPLE: Now if Bill Gates had a net worth and income of:
Let's present this information above in two ways.
The first will be the way the government is presenting it:
1. Our income in 2010 has dropped down by almost 25% from 2007 and our losses brought our net worth down by 6 billion dollars, we have been severely damaged by the weakened economy since 2007 and must fire employees, raise taxes, and cut back services...
And now for a reality look and check using different parameters:
2. Our income from 1998 to 2010 has increased by 2 billion dollars (50% INCREASE) AND our net worth has increased by 14 billion dollars (about 35% INCREASE)
So on example #2 the key questions to ask yourself are:
1. What was the population increase from 1998 to 2010? If it was 12%, 18%, 20%, or 25% government by the numbers is clearly in the black.(in most cases it was probably under 15%)
2. What was the "real" rate of inflation from 1998 now adjusted for 2010? If 10% to 20% by the numbers government STILL is clearly in the black.
3. The last primary factor to look at is: What was the average increase in the population's income from 1998 to 2010 for comparison with the governments income increase?
Now these are the basics which of coarse a complete vacuum and void is created in the minds of the population due to the money involved. Focus your attention here to determine if you have a government that is a "for profit and a take-over machine" or a government "representative of the people's interests"
I have looked many a times and know in advance you will not be pleased with what you find when you look.
What is the difference in the presentation of the bankrupt scenario? ANS: A bunch of spoiled and ruthless yuppies of which most are attorneys greasing the skids as they dot the "I's" and cross the "T's" walking with as much cash as they can today as they with a strong arm also lock in the productivity value of the next five to seven generations. Their presentation of prospective has worked easily and grandly for them over the last 70 years and there is nothing of any consequence stopping them as of today so the beat goes on!
Government "plays" great paupers to the media for presentation to the public while at the same time having the net worth of a million Bill Gates. The perspective you are spoon feed from your government is NOT in your interests but in theirs as the US / local government financial "empires" continues to expand Worldwide..
"I Love LA" and so do the local politicians, government attorneys, and their bloated pockets love LA also!
FOR THOSE FROM LA:
LA short of funds right? LA County's income = 17.5 billion dollars / year
For Los Angeles, the key issue not addressed per LA being short of funds is:
What were they bringing in for 2000, 2005, and now 2010 to see the reality of abuses per gross income.
What is Los Angeles County''s annual operating budget as of 2009?
Well it is 17.5 billion dollars and It is about time people started looking at the "true reality".
I bet you nor anyone living in LA County never knew LA County''s kitty was that big each year....
In other words: If they are bringing in equal to or more revenue than in 2000 or 2005, why the big cuts??? (to much greasing of the skids over the last five years probably)
For the "County" of LA CAFR - http://file.lacounty.gov/lac/cms1_141548.pdf
What is any easy mark? ANSWER: Someone who does not look or know what reality is due to the orchestrations of others... and with these types of numbers people better start looking rather fast.
It is one thing as to what is there and it is totally another of how fast it can disappear if no one is looking!
School Districts in LA?
Another good place to look would be in an area you have had first hand experience with if you have children.
Here you can see that what you thought you knew was not a clear or complete picture of what was:
Los Angeles School District 2008 CAFR -http://notebook.lausd.net/pls/ptl/docs/PAGE/CA_LAUSD/LAUSDNET/OFFICES/CFO_HOME/2008-09%2520CAFR_FINAL%25202-25-10.PDF
Los Angeles School District 2006 CAFR -http://notebook.lausd.net/pls/ptl/url/ITEM/5B0A360C41211054E0430A0002101054
And then an eye opener along the lines of lack of transparency of funds over 100 billion dollars, the Teachers Retirement Fund 2002 CAFR gives a detailed listing of specific investments where 2009 there is no showing outside of general percentages shown. I also note that the word "unaudited" crops up to many times in the 2009 report:
http://CAFR1.com and http://TaxRetirement.com