Reblogged From RealityBlogger
Detroit: The Latest Bankruptcy Lie
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.
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ALIPAC printed the following “facts” facts about Detroit that on the surface are absolutely mind-blowing…
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.
8 – Less 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…
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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, the 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:
**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.
