Twenty years ago, Walter Burien was the first layman to understand and publicize information about the CAFR (Comprehensive Annual Financial Report) accounts. He explained that every political entity from school districts, to cities, counties, states and federal bureaucracies keep two sets of accounting records: 1) the budget (which is a mere guesstimate as to how much currency a political entity will acquire and spend during a future year); and 2) the CAFR account–which reports how much currency that entity actually took in and spent in a previous year.
For a number of reasons, the discrepancies between these two accounting systems is enormous. While the “budget”may indicate that a state is operating on just $20 billion per year, the CAFR for that same state may reveal that the state actually took $100 billion in that year and essentially “pocketed” the extra $80 billion. The government will use the lowly $20-billion “budget” to persuade taxpayers to agree to paying higher taxes–even though the state knows it will probably receive $100 billion in actual revenue. The two sets of books are intended to deceive.
Mr. Burien’s discoveries and articulate explanations for those discoveries have been impressive.
Here’ a more recent video in which Mr. Burien reports on his discoveries concerning the real beneficiary of your insurance policies and why insurance policies are increasingly mandatory. Auto insurance is a primary example, but I can’t help wondering if Obamacare is also mandated in order to enrich government rather than provide healthcare. (Didn’t the Supreme Court recently declare that Obamacare was a “tax“?)
The following video is a little rough, but it’s absolutely informative.