Accounting Gimmicks

The Sacramento Bee today is astounded by the accounting tricks being used by the State and the state pension fund, CalPERS.

Right off the bat, CalPERS presumed for the last decade a 7.75% return on investment. The CalPERS people must be terrific investors because Warren Buffet only estimated 6.9% for his company’s retirement fund.

Obviously, CalPERS didn’t make their projections, and they have lost a third of their investment value – which the taxpayers are on the hook to make up. It is looking like $4 billion from the taxpayers next year, and the last I heard we didn’t have a surplus from which to fund CalPERS shortfall.

Now, CalPERS has granted permission to cities to take the losses off the books and fund their shortfalls over the next decade. That is “kicking the can down the road.”

That is just a plan for future disaster. It is not a solution, it is an accounting gimmick and all governments are addicted to gimmicks that they NEVER permit private industry to do. A CPA would go to jail doing what government does, just as if a private investor did what the government does in Social Security they would go to jail!

Bernie Madoff just did! Government always has two sets of rules – one for them, one for us.

Do you think the U.S. Senate will be treated by the National Health Care they propose for the rest of us?


“…not fair, … not politically correct”

The Chronicle of Higher Education, in a report has concluded: “unfortunately, some children and adults are just unintelligent. It’s not fair, it’s not politically correct, but reality is under no obligation to be either of those.”

Ahhh, yes, common sense tells me that is absolutely true, but the next thing you know someone will tell me there is no Santa Clause – or that the National Health Care has a $1.6 TRILLION price tag on it by Congressional Budget Office.

Some of those people who are declared “unintelligent” appear to always gravitate toward politics. Quick, have you ever heard of a government program that costs LESS than projected?

Neither have I.

The Senate says it is working on a National Health Care program that will “pay for itself.” I call for the Senate to place their pensions in a strongbox to be paid ONLY if the program actually pays for itself.

The nice thing is that I know my taxes are not going up. President Obama promised. He said that taxes “not one penny” would go up for those who make under $250,000. I make less than $250,000 – so my taxes are capped!

Neither National Health Care nor Cap and Trade will raise my taxes, or yours.

Since none of us are going to pay an extra cent, there really is a free lunch!

Now, about those unintelligent people…

Sometimes, Too Much Is Not Enough

I note with interest that Massachusetts is putting the homeless in motels, at a cost of $2 million a month.

Homeless advocates are protesting – that the motel rooms do not have living rooms.