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Detroit is Not Broke!

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So far, we have been mostly looking at the pension fund liabilities and assets, but there is much more having to do with overall assets and liabilities due bondholders.   Richardson says in his blog entry on Detroit, in response to me (emphasis in the original):

[blockquote]

To get the more full picture, you should be looking at the individually (discretely) presented fund balances, which also use creative accounting. These fund balances are then placed into the final net assets after future liabilities are considered.

Page 50-53 Enterprise funds =

Total current assets -- $7,065,834,682
Total current liabilities -- $503,209,822
Total noncurrent liabilities -- $6,254,198,203
Total assets -- $ 308,426,657

Over $3 billion of that is "Bonds and Notes Payable -- Net", meaning future payments more than one year away.

So looky there, here is $7 billion being held that is being reported as only $308 million.

As you go through the report, you will find this trick applied -

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As for the pension fund, the true travesty is reported as:

Employer Contributions - $378,356,067
Plan Member Contributions - $64,545,425

"Employer contributions" are taxpayer money.
"Plan Members" are the workers.

Pension funds are just a way to strip taxpayer money and invest it, using employee benefits and retirement as a lame excuse to collect taxpayer money (as debt).

Actual pension assets (investments) total another $5.1 billion.   (SB - This confirms my figures too)

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My friend, that means we are already sitting at over $12 billion in current assets, despite the CAFR statement of net assets claiming only $11 billion. And we've only looked at two types of funds.

How about the "discretely presented component units" (page 62-63)? They have assets of over $500 million, long-term debt of $166,728,140, and only reported as $214,130,890 or less than half their asset value.

Then you can read how some tricks work in the "Notes to financial statements":

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http://newthinking.blogspot.com/

Scott Baker is a Managing Editor & The Economics Editor at Opednews, and a blogger for Huffington Post, Daily Kos, and Global Economic Intersection.

His anthology of updated Opednews articles "America is Not Broke" was published by Tayen Lane Publishing (March, 2015) and may be found here:
http://www.americaisnotbroke.net/

Scott is former President of Common Ground-NYC (http://commongroundnyc.org/), a Geoist/Georgist activist group. He has written (more...)
 

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