09/20/07 - Dollar slide continues
Thu Sep 20, 2007 12:36


09/20/07 - Dollar slide continues - dollar index now at 78.37

The Dollar revisited - discussion 2005

From a chat between Jim Pivonka and Walter Burien - topic: the Dollar, linked at:

The motive! Money, Money, Money, Control, Control, Control....

People seem to believe the US Government is allowing the trade deficit to enlarge out of ignorance or ineptness. Wrong!

They believe the massive purchases of goods from China are just happening based on that 5c per hour wage in China. Wrong!

Well, here is your WAKE-UP CALL to know the REALITY!

First and foremost, the largest group of investment capital of this world are owned and controlled by US local and Federal government.

These investment funds in their composite totals from the tens of thousands of “individual” government entities is no less than a conservative sixty (60) trillion dollars.

From the 1930s to about 1965 most of these government investment funds were restricted from investment in “Foreign” investments. Most had a limit cap of 5 or 10% that could be invested outside of the US.

But then, let us backdate to 1946 and the implementation of the plan to change government from a pay as you go structure into an administrative “Corporate” structure for revenue collection and profit. In 1946 a well backed by the power elite private group called; Government Financial Officers Association (GFOA) introduced the new government accounting “corporate” accounting standard of the CAFR (Comprehensive Annual Financial Report). The CAFR structured as the typical private sectors Annual Financial Report was designed to now separate government’s pay as you go Budget from the investments of government and venture projects that could become very profitable such as toll ways, ports, state universities, and even as things developed government owned golf courses and sports authorities with these government “Enterprise” authorities worth from across the land being in the hundreds of billion of dollars if not in the “T” figure.

With that being said and disclosed, back to the 1970s. The CAFR structure was now the fundamental basis for all local governments now mandated by federal law at the request of GFOA. Massive amounts of investment wealth were building within local government accounts. Investment wealth shown on the CAFR but not on the selectively created “Budget” reports presented by local governments for the taxpayer and general populaces digestion. The CAFR (of which over 86,000 separated local government entities produce each year as of 2003) or Government’s Annual Financial Report was for all intents and purposes was intentionally kept secret and the public did not have a clue for decades as to what the new “Corporate” for profit government was developing into right under their own noses.

To do this government needed the full cooperation of the controlled News Media and organized Education. The reality of the situation of the nation disclosure per the CAFR shows that they accomplished that objective.

That decades long cooperation from the controlled News Media and organized Education has since that time greased so many pockets and has put so many news outlets and educational administrators eagerly on the bloated nipple of the sow. .

Government’s newfound massive investment wealth needed an outlet for higher returns and diversification of that ever-building wealth.

The top administrators knew that the real profit was in exploiting the cheap labor from around the rest of the world! The laws and statutes were then quietly and in effect secretly removed limiting governments investments funds participation outside of the US so now;

1970 - 1980; Hmmm… Cheap labor in Mexico! Then come NAFTA and GATT. Billions of dollars flowed from the US Government investment funds into Mexico and South America. Investment returns on those investments jumped to 40, 50, 80, 200% return per year!

1980 - 1990; Hmmm… Our government investment funds own the majority of the fortune 500 companies stock from within their institutional fund holdings. Seventy to eighty percent of the totals in some cases. Let us promote and encourage those companies to shift their operating plants to countries with cheap labor. They will then be able to get hefty profits from exploiting cheap labor resources and in turn our stock holdings in those US corporations will double and maybe even triple in value!

1990-2000; Hmmm… The biggest and cheapest labor force in the world? China!! Over 1.4 to 2.0 trillion dollars flows into the China market directly from government investment portfolios and from those Fortune 500 companies at the direction and encouragement of US Government administrators. Profits are obscene.

2000-2005; Hmmm… 65% of our investments are now directly or indirectly held internationally and in most cases are valued in those foreign government’s currency and not the dollar. If we devalue the dollar, on the currency exchange rate we can make a killing! Let us push for those international imports in which we now own through investment, create a trade deficit, keep interest rates very low to deter investment in the dollar, and if we can push the dollar index down from 105 to 75 on our international investments held outside of the dollar we will make 40% on the currency exchange rate and our return for our international investments will double or triple by doing so!

Additionally, we will balance the international wealth for all of the people of the world and have finalized the New Corporate blueprint to make this truly a New World Order global market place at our string and pull!

But, we must take cares of those "independents" out there that are not part of our plan. Let us first focus on Non-Game-Players where we can secure our strategic needs. That guy Sadam would be a good start so let us secure our launching grounds in Afghanistan first. But how do we pull off that type of military venture without have our local populace becoming irate and banging down our doors? Well, we just need to create an event that will get them so pissed off at our created enemy we can do whatever we want and they will not be the wiser. But how? Don’t worry, we will figure something out.. Hey, we have been operating under the Annual Financial Report accounting structure for over 60 years now right under the public’s nose and they are none the wiser, the door is wide open, we can do what we want, they will buy it! With our multi trillion-dollar cash flows that we have created since the 70’s we can also get all other international players in our club eagerly eating out of our hand as we implement our objectives! Hey, those international players, they are who they are now by our design. They are not going to byte the hand that feeds them or the hand that can destroy them!

Here is looking forward to our New World Order and the continued massive returns and control of our holdings! Yours Truly, US Government (corporate) administration

Submitted FYI and hopeful for your corrective action from:

Walter J. Burien, Jr.
Posted by Walter Burien on Jan 22, 2005 at 11:48 AM
FROM Jim Pivonka:
On balance, and whether intentional or not, I must evaluate the conclusions in Mr. Burien’s post as disinformation.

The facts he states in his introduction, regarding the move to separate capital from operating budgets at the state and local level, and implemented through CAFR, tie closely to my memory.

While the actual effects of this move may be disputed, the intention, and I believe the effect, was to separate investment in public infrastructure from the operating expenses of government. This was intended to increase the availability of funds for infrastructure, and to reduce the competition for funding between capital and operating expenses.

The initiative, while eventually successful, was strongly opposed by radical conservatives who saw it as a means of expanding government expenditures. The lost that battle, but were successful in fighting much capital investment anyway - which is why our bridges and schools, etc. are in such disastrous condition.

As for the assertion that US state and local governments, or even the federal government, has invested signifant funds overseas - I have never seen such an assertion before, know of no statistics supporting it, and find it lacks credibility and relationship to what I do know of the history of investment flows between the US and other counties.

For example, it is well known that the Reagan and Bush administrations alike have funded their deficits through purchases of US debt by foreign investors and governments. And that without such purchases, the value of the dollar relative to other currencies relative to the dollar would have fallen.

The artificially high value of the dollar which results reduces the cost of foreign goods in the US. It increases the cost of US goods to potential purchasers in other countries. At first it primarily benefited oil companies who made more money from maintaining demand from this backdoor subsidy of imported oil.

But with the advent of free trade, the artificially high value of the dollar meant that the subsidy was extended to imported goods. Naturally, US companies found it advantageous to import their products (as Nike) rather than make them in the US. As the cycle progresses, we see US companies moving their production, and the technology they use to produce goods, to countries like China - as has been discussed here.

The artificially high value of the dollar, and the fact that goods produced overseas and sold here are so subsidized, works against the US - both its labor, and its producers who are unable to move production offshore.

The “strong dollar” may be the friend of the consumer of cheap imported goods. But it is the mortal enemy, the viper at the heart, of the American worker and the long term health and welfare of our nation.
Posted by Jim Pivonka on Jan 22, 2005 at 7:04 PM


RE: In reply to your comments


Quoting you above “The artificially high value of the dollar, and the fact that goods produced overseas and sold here are so subsidized, works against the US - both its labor, and its producers who are unable to move production offshore.”

The US Government administrators realized this in the 70’s. They needed to diversify their investments before they implemented the change for the long run.

If you read the comments a little more closely in my original post above it will shed light on your own statements.

I can tell the figures and policy shifts I outlined above caught you off guard as it did to me when I learned for the first time 12 years ago that this was taking place.

I recommend that you get and look at several state; Retirement Fund CAFRs. They being Pension Fund CAFRs will list the individual investments, their value, when established and when they vest.

You will see that in each state billions are invested with the banks in the mortgage and credit card divisions. Government is now the “primary” investor with the banks in funding mortgages and credit card debt. It will also outline on a case by case basis the degree and scope of the shift to international investments.

Take a look at regular local government CAFRs.

You will see in the note sections listed returns for local agencies. Pay special attention to the notes per “Bond dividend return” Here they are disclosing return from bond investments. (Most people are conditioned into thinking government is paying for bonds)

When you look a little closer you will find government financial Enterprise Authorities that have been established to take investments from the local governments within the state and then when the local governments have a bond issuance of which the public will repay with interest, those same local governments now indirectly use their own investment revenue held with that Enterprise authority to fund their own bond debt. Several states have now become 100% self funded on their own debt through this method.

It is also obvious to me by your comments you have not looked. You say;

“As for the assertion that US state and local governments, or even the federal government, has invested significant funds overseas - I have never seen such an assertion before, know of no statistics supporting it, and find it lacks credibility and relationship to what I do know of the history of investment flows between the US and other counties.”

You were not intended to know due to the scope of the money and control involved. What is spoon fed you by the media and controlled education was designed for you not to know.

I did not know about this also until I looked twelve years ago. That is the beautiful point about the CAFRs and also why you were not aware of them. Government needed to keep their own records of the scope and growth of their plans. The CAFRs will show you the scope of the takeover by government. Something you were not intended to see.

I will give you one example of many available as shown by review of CAFRs. I will use Arizona State Government Inc. as an example.

In 1973 the state government of Arizona CAFR (Comprehensive Annual Financial Report) showed a service budget of 1.8 billion dollars with total cash gross receipts of 2.1 billion dollars or a 300 million dollar figure over the budget.

Well, in 2000 the state government CAFR showed a service budget of 14.5 billion dollars and cash gross receipts of 35 billion dollars or a mere 20 billion figure over the selectively created budget report.

I will leave you off with one last comment; The CAFR is government’s Annual financial Report, the Holy Grail of accounting. It is as to religious organizations as is the Bible, the Torah, the Koran. So:

1. Why is it not on the front page of the newspapers?

2. Why is it not even on a back page?

3. Why is your editor sent it each year only not to have a clear mention of it, not a peep?

Catch what is being said here Jim by me and then LOOK FOR YOURSELF! When you do look and see, what you see will shake the foundation of what you “had” believed was going on right before you most of your life.

The truth may set you free if those shackles are not already to tight and your response conditioning is not already to well planted.

I can’t wait until you discover the scope of the money involved, controlled and owned by our own local and federal governments!

Yours Truly,

Walter Burien (AKA: Bubien)

Prior CTA (Commodity Trading Advisor) 1979-1992
Incorporator: Hands Across New Jersey - 1990
National Sales Manager: US Trading Championship, US Investing Championship, and Money Managers Verified Ratings 1980-1992
Posted by Walter Burien on Jan 22, 2005 at 10:41 PM

FROM - Jim Pivonka:

Walter is correct in noting that I have no direct knowledge of the current status of the funds he describes. I am surprised at the extent to which he indicated these funds have grown in size, and the extent to which local government bonds for capital investments can be funded by them, without recourse to direct bond markets.

If this is so, and I cannot dispute it, he is correct in saying that I (indeed any of us with any interest in how money flows in our economy) need to take a close look at it.

He is also correct in his presumption that having a direct financial interest of this magnitude in any form of investment will condition the decisions of those managing the investment fund - government official, private indivisual, or corporate officer, it makes no difference.

So the extent to which the public fund managers responsible for these investments have placed them in foreign assets, such as the bonds of foreign companies and governments will affect their judgements about the desirability of decisions by our government which may affect the investment.

Unfortunately, I believe that a reduction in the re

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