Share on Google Plus Share on Twitter 3 Share on Facebook 13 Share on LinkedIn Share on PInterest 1 Share on Fark! 1 Share on Reddit 1 Share on StumbleUpon 1 Tell A Friend 4 (24 Shares)  

Printer Friendly Page Save As Favorite View Favorites (# of views)   7 comments, 3 series
General News

Detroit is Not Broke!

By   Follow Me on Twitter     Message Scott Baker     Permalink
      (Page 8 of 10 pages) Become a premium member to see this article and all articles as one long page.
Related Topic(s): ; ; ; ; ; , Add Tags Add to My Group(s)

Must Read 4   Valuable 4   Well Said 3  
View Ratings | Rate It Headlined to H4 8/5/13

Become a Fan
  (78 fans)
- Advertisement -

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):


- Advertisement -

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.

- Advertisement -

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 -

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)

- Advertisement -

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":

Next Page  1  |  2  |  3  |  4  |  5  |  6  |  7  |  8  |  9  |  10


- Advertisement -

Must Read 4   Valuable 4   Well Said 3  
View Ratings | Rate It

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:

Scott is a former President of Common Ground-NYC (, a Geoist/Georgist activist group. He has written dozens of articles for (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting
/* The Petition Site */
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Follow Me on Twitter

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Obama Explains the FEMA Camps

Was Malaysian Flight MH370 Landed Safely in Afghanistan?

Let the Sun Shine on a State Bank in Florida

Batman, The Dark Knight Rises...and Occupy Wall Street Falls

The Least Productive People in the World

Detroit is Not Broke!