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U.S. Government Prepares Mass Pension-Rape

Articles & Blogs - US Commentary

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How has the bankrupt United States of America kept its entire (paper) house-of-cards from crumbling all around it? Two words: fraudulent accounting.

As many readers know, following the Crash of ’08 U.S. Big Banks were hopelessly bankrupt. They were leveraged well in excess of (the legal) 30:1, with the vast majority of that leverage tied directly to the (fraud-saturated) U.S. housing market – and house prices.

The effect of this leverage was that (as a matter of arithmetic) only a 3% decline in U.S. house prices would render all these banks insolvent (3% X 30). In fact the U.S. housing market plummeted lower by roughly ten times that amount (in just its first down-leg). The mere $15+ trillion in hand-outs/loans/guarantees from the Bush regime was only a band-aid which would keep these fraud-factories afloat for a few months, barring other equally extreme action. And so Mark-to-Fantasy accounting was born.

Beginning in February 2009, U.S. Big Banks weren’t required to account for their assets (or liabilities) at “market value” (i.e. what people were willing to pay for them in the real world). Instead, the Banksters were allowed to do their accounting on the basis of what they thought their own assets should be worth.

Suddenly, the same corporations which had just all been bankrupted ten times over were able to pass a “stress test.” Of course that Cinderella Stress Test proved nothing about the solvency of U.S. banks. However simply being instantly able to cobble-together a façade of solvency did illustrate the magnitude of the fraud in this Mark-to-Fantasy accounting.

But for decades prior to this the U.S. federal government had already been engaging in its own Mark-to-Fantasy accounting. Unlike U.S. corporations, which are (accept for the Big Banks) still required by law to acknowledge all debts and liabilities in their accounting; the federal government only acknowledges the liabilities it wants to acknowledge – the small ones.

The remainder of these obligations are simply shoved to the side, and permanently ignored by all of the U.S.’s elected representatives, of both parties. But other people do keep track of these “unfunded liabilities”. A former Reagan economic advisor, and now economics professor estimated this mountain of Unfunded Obligations at more than $200 trillion.

The U.S. government has $15+ trillion of “official debt”, and $200+ trillion of ignored liabilities. Now that is “creative accounting”!

U.S. state and local governments were so impressed by the federal government’s financial gymnastics that (one by one) they began copying these accounting practices themselves, and creating their own mountains of Unfunded Liabilities.

How big are these state/local mountains of hidden-and-ignored liabilities? No one really knows. As CNBC tells us:

Thanks to a patchwork of accounting practices and rosy investment assumptions, it’s not even clear just how big a financial hole many states and cities have dug for themselves.

But it looks like we’re all about to find out. How? The U.S. federal government has just created new “standards” for the financial accounting of state/local governments – but (of course) not for itself:

That may soon change, thanks to a new set of government accounting standards that could serve as a nasty wake-up call to states and cities relying on rosy scenarios and head-in-the-sand accounting.

Why has the U.S. government suddenly targeted only one segment of its accounting-fraud economy for “clean up”? We can be certain that the motive was not “financial accountability.” How so?

The federal government is the accounting template upon which all the accounting-fraud of state/local governments is based. Yet it is only forcing the Imitators of this fraud to clean up their act, and not the Originator – itself. Thus clearly the motive here is a purely sadistic one.


Again, we know what is not intended. The U.S. federal government is not trying to force city/state governments into open bankruptcy (like Detroit), since ultimately these lower governments are dependents of the federal governments. Torpedoing countless state/local governments into bankrupty would only create a gigantic problem for itself.

The “targets” here (as always) are the Serfs. The dynamics are painfully obvious.

Step One: “new accounting rules” force state/local governments to divulge at least some of the fraud in their own Mark-to-Fantasy accounting, and acknowledge their mass-insolvency.

Step Two: These state/local governments quickly assemble into a choir and sing (in perfect unison) “We Can’t Afford This”, almost as if it was a perfectly scripted choreography. And what do you think all of these governments “can’t afford”? Why the peoples’ pensions, of course.

Step Three: Tens of millions of Serfs wake up the next morning and discover they are destitute. Crime complete.

What happens when the Serfs whine and mildly protest? The federal/state/local governments will “explain” (accompanied by a few crocodile tears) that they had to slash all these pensions to next-to-nothing – or there wouldn’t be enough money to continue making interest payments to the One Bank (forever, in ever-increasing amounts).

Parasites before People; the new American motto. Note the title of the propaganda from CNBC (previously quoted):

Pandemic of pension woes is plaguing the nation

There isn’t enough money for various levels of government in the U.S. to keep making their pension payments to pensioners and their interest payments to the One Bank. So why isn’t the article entitled “bond woes plaguing nation”, given that these bond debts now exceed total pension obligations?

Because the U.S. government, the Corporate Media, and (of course) the One Bank are only planning on tearing up one set of these contracts.

What is the difference between the legal contracts which all these people had with their state or local governments to provide a certain pension in return for (many years of) services rendered, and the legal contracts which the Bond Parasites have to compel these state/local governments to pay interest on fraudulent debts? In the (One Bank-controlled) United States of America, only one set of contracts actually counts.

The state/local governments will point to Detroit and all sing (again in perfect unison): “Look, the precedent has been set.” Indeed, the ink isn’t even dry yet on the “fleecing of Detroit pensioners”, and now the federal government is set to take this Pension-Rape nation-wide.

Let me remind readers (yet again) that all these bond debts which the U.S. federal/state/local governments (and other Western governments) insist “must be paid” – ahead of their legal obligations to their own people – are fraudulent debts. They have all been grossly inflated by the fraud and/or malicious lies of the One Bank. They are legally unenforceable.

Just ask Larry Summers, one of the candidates to take over management of the Federal Reserve. Summers “borrowed money” just a few years ago from the One Bank (while president of Harvard University), and when the dust had settled he had managed to lose $1 billion in financing only $2 billion of debt.

There are only two possibilities here. Larry Summers is one of the most incompetent boobs to ever stuff a suit, and couldn’t “manage” a lemonade stand – let alone the Federal Reserve. Larry Summers was swindled by Wall Street, and thus the debt is not enforceable. Presumably the fact that Summers is being considered to be the new Chairman of the Federal Reserve conclusively indicates which of these possibilities is true.

There is no need to cheat tens of millions of Americans out of the pensions they earned over decades of their own hard work. Just tear-up all the Fraud Bonds of the One Bank and there will be plenty of money (once again) to provide for the people.

Perpetual debt-slavery or economic liberty? It’s time for the Serfs of America to make their choice. Continuing to sit on their asses and stare at the idiot-box is my own “prediction” as to what that choice will be.

Comments (8)Add Comment
Jeff Nielson
written by Jeff Nielson, August 13, 2013
Jeff, I think you have put your finger on the one issue that will loom large in the future, State Rights. At some point, perhaps sooner than later, the Governors will try to assert their rights to protect, feed and provide health care for their own citizens and the Fed/Fed Gov will crack down. Then the question of National Guard control will rear its head. The Posse Comitatus Act of June 18, 1878 will not stand in the face of the gross illegalities that have been perpetrated to date. A civil war over States Rights? Not between states and states but between those states that refuse to buckle and the Fed? In my book, The Silver Bell this issue is the pivot point and in my rosy, almost utopian scenario, the state of Kentucky rises up to protect the silver stashed in a cave near the Cumberland Gap. And the battle is joined with the tunnel being a focal point and the Gap again being a key defense point (it changed hands often during the civil war). All my life States Rights has carried with it the stigma of slavery. Now it is starting to look downright holy. Unless the Governors buckle and well they might.

FusionEnterprise, I certainly see some "Enclaves of Enlightenment" among U.S. state governments -- with the movement to make gold and/or silver legitimate "money" again being one indicator of that.

However, from my perspective they are a distinct (grossly outnumbered) minority. I was very discouraged to see virtually all state governments knuckle-under to the "mortgage-fraud settlement" with Wall Street -- which allowed the One Bank to simply sweep humanity's largest-ever crime-wave completely under the carpet.

U.S. Mortgage-Fraud: The Next Chapter

There are (likely) many state governments who would LIKE to "do the right thing" for their own residents. However, up until now, when push-comes-to-shove they have all been caving-in to the Bullying of the One Bank (via its Stooges in the federal government).
written by FusionEnterprise, August 13, 2013
Jeff, I think you have put your finger on the one issue that will loom large in the future, State Rights. At some point, perhaps sooner than later, the Governors will try to assert their rights to protect, feed and provide health care for their own citizens and the Fed/Fed Gov will crack down. Then the question of National Guard control will rear its head. The Posse Comitatus Act of June 18, 1878 will not stand in the face of the gross illegalities that have been perpetrated to date. A civil war over States Rights? Not between states and states but between those states that refuse to buckle and the Fed? In my book, The Silver Bell this issue is the pivot point and in my rosy, almost utopian scenario, the state of Kentucky rises up to protect the silver stashed in a cave near the Cumberland Gap. And the battle is joined with the tunnel being a focal point and the Gap again being a key defense point (it changed hands often during the civil war). All my life States Rights has carried with it the stigma of slavery. Now it is starting to look downright holy. Unless the Governors buckle and well they might.
Jeff Nielson
written by Jeff Nielson, August 12, 2013
Jeff: please don't ascribe the NWO (or Globalist)meme to me; my comments are directed at the USG usurping total power, totally in contravention to the Constitution. Please read before you rant; this is not like your normal well thought out analyses.

Sorry if my reply came across as a "rant", and sorry if I've mistakenly pigeon-holed you as ascribing to NWO mythology. But in that case, then I'm not sure what you're driving at, as I haven't encountered any discourse about "one government" which was not NWO-related.

There was a definite "one government" movement alive-and-well in the West, which resulted in the creation of the EU, and almost resulted in the NAU (North American Union). Presumably it was Mexico's government which pulled the plug on that at the last minute -- as Stephen "I wanna be an American" Harper would have been saying nothing except "where do I sign?"

However, I see that movement as DEAD -- precisely because of the One Bank's economic predation. NO ONE in Canada wants to "get married" to the scary Fascists south of the border any longer (except Stephen Harper).

Meanwhile, it now appears also inevitable that the One Bank's economic rape of Europe will result in the destruction of the EU that the One Bank created. The One Bank can only destroy -- never create -- and thus anything it DOES create, it will also destroy. smilies/wink.gif
written by apberusdisvet, August 12, 2013
Jeff: please don't ascribe the NWO (or Globalist)meme to me; my comments are directed at the USG usurping total power, totally in contravention to the Constitution. Please read before you rant; this is not like your normal well thought out analyses.
Jeff Nielson
written by Jeff Nielson, August 12, 2013
Jeff: to be sure the One Bank will be complicit in the rape, but the key malefactor will be the One Government in the US, as the 10th Amendment is being slowly and insidiously abrogated. It won't be the states that initiate the rape of 401Ks, or depositor bail-ins, or the implementation of Obamacare. Nor will it be state courts that finally adjudicate the slashing of pension benefits. You will see a similar move in Canada, as the Provinces lose their rights of self determination.

Apberusdisvet, I still bristle at any/all insinuations of any "New World Order." What we are seeing all around us, every day, is the OLD WORLD ORDER, the oldest one of all: slavery.

The only thing "new" at all about the One Bank's version of mass (economic) slavery is that it allows its slaves to possess a few petty trinkets and baubles to keep them distracted.

"New World Order" mythology has two purposes. It is tremendously effective Disinformation to use on the aware and semi-aware individuals in our society -- as a wonderful Straw Man. Meanwhile, it is equally effective mythology for the One Bank to recruit Zealots to serve it: believers of this "New World Order" who serve the Slave Masters willingly.

The idea we are heading toward some "socialist" One-World Government as the Rothschilds steal all the world's wealth would be hilarious if it weren't taken seriously by so many millions.

"Socialism" is sharing the wealth; not a small clan of Psychopaths who already control 40% of that wealth...and are only increasing their stealing.

Jeff Nielson
written by Jeff Nielson, August 12, 2013
Jeff, I absolutely agree about the boobs watching the tubes. Didn't the Romans figure out to "give them bread and circuses"? Seems like there's a lot of that going around; food stamps and dancing with the stars.....
As a "30 something gen x'er" (to put myself in the demographic box), myself and my more free thinking cohorts knew just by numbers, that the Boomers were going to eat all that cake; only crumbs would be left for "us". Those assumptions were 20 years ago in school, and didn't even account for the insolvency faced by all (governments,corporations ie. Nortel etc.) today.
Speaking for myself, my eyes are open, and my fear is gone. I want to thank you, Jeff, for all your efforts in getting the truth out. I constantly forward your articles to friends and family (many have become B.B. members).

Thanks for the support Ross!

Indeed Serf-zombies abound all across the Western world (including Canada) -- a deliberate product of the One Bank's influence on our "education systems" (which are now drone-factories).

As I've remarked before, I feel like a Greek Fatalist (from its classical mythology): heading towards a Fate which I cannot prevent, and warning others who cannot see it (lol).

As you note; we are left with simply the Path of Noah: building our own Arks -- and urging as many others as possible of the Semi-Sane to do likewise... smilies/wink.gif
written by apberusdisvet, August 12, 2013
Jeff: to be sure the One Bank will be complicit in the rape, but the key malefactor will be the One Government in the US, as the 10th Amendment is being slowly and insidiously abrogated. It won't be the states that initiate the rape of 401Ks, or depositor bail-ins, or the implementation of Obamacare. Nor will it be state courts that finally adjudicate the slashing of pension benefits. You will see a similar move in Canada, as the Provinces lose their rights of self determination.
written by ross, August 12, 2013
Jeff, I absolutely agree about the boobs watching the tubes. Didn't the Romans figure out to "give them bread and circuses"? Seems like there's a lot of that going around; food stamps and dancing with the stars.....
As a "30 something gen x'er" (to put myself in the demographic box), myself and my more free thinking cohorts knew just by numbers, that the Boomers were going to eat all that cake; only crumbs would be left for "us". Those assumptions were 20 years ago in school, and didn't even account for the insolvency faced by all (governments,corporations ie. Nortel etc.) today.
Speaking for myself, my eyes are open, and my fear is gone. I want to thank you, Jeff, for all your efforts in getting the truth out. I constantly forward your articles to friends and family (many have become B.B. members).

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