Sen. Liu starts lying in 5th week evading CAFR $600 billion taxpayer surplus

I promised California Senator Carol Liu I’d invite our community to contact her office if after five weeks (July 13) she failed to respond to $600 billion in surplus taxpayer assets (video explanation here) revealed by California’s Comprehensive Annual Financial Report (CAFR). Officials claim we’re “forced” into austerity with “no options” from a $16 billion budget deficit.

Last week, our local paper published a third letter requesting our two state representatives, Assemblymember Portantino and Senator Liu, address literally the most valuable issue of the state.

Senator Liu’s consultant, Robert Oakes, today e-mailed me:

Sen. Liu asked me to request an opinion from the Office of Legislative Counsel regarding your requests about the CAFR, since there appear to be statutory, Constitutional, and legal issues regarding the potential redirection of any or all of these designated funds.

Carol and Robert violate their legal fiduciary responsibility with three revealing lies in this response:

  1. Robert claimed in his letter to Legislative Council, “Mr. Herman believes the Legislature can redirect any or all of these funds for other purposes, if the Legislature so designates.” As documented in five weeks of articles of Robert and my communications, I’ve never asserted who has jurisdiction over these various funds totaling $600 billion, except that they represent a taxpayer surplus. I insist and repeat over and over that Carol’s job is to inform the public of our comprehensive financial status. This first lie deflects, obfuscates, and continues to hide $600 billion of taxpayer assets.
  2. Carol and Robert continue to lie in omission about the $600 billion, and ignore my central request for a public statement simply affirming the CA CAFR documents these surplus taxpayer assets. That the public has these assets, don’t know about them, are being forced into austerity with lying rhetoric, and Carol/Robert ignore this while lying about my request is criminal breach of their fiduciary public responsibility.
  3. But the central lie is pretending to represent public interests while lying, obfuscating, and being minions to the monied interests that want to retain these colossal funds.

As always, I welcome Carol and Robert’s return to public service, and would like to help them do so. I will document whatever they choose to do.

My e-mail to Robert today:


Thank you for your e-mail. You’ve twice ignored my promise to invite the public to contact you if I don’t have a response from Carol by this Friday, July 13 (five weeks after our first phone conversation and your acknowledgment of receiving the data) to affirm the simple points repeated below.

Regarding your message to the Office of Legislative Counsel, I’ll be interested to learn what specific funds the California legislature has authority to redirect, and other types of existing fund authority that would have to be considered for a comprehensive analysis of the $600 billion in taxpayer surpluses revealed in the CAFR.

That said, I never asserted the legislature has authority to “redirect any or all of these funds,” as you state in your message to Leg. Counsel. 

What I asked for repeatedly, and copied below from our last e-mail conversation, is for Carol to:

  1. Make a public statement that affirms the existence of taxpayers’ $600 billion in retained assets (you’re welcome to use this statement in whole or part),
  2. make a recommendation of what to do (the minimum I’ll accept is affirmation that the public should know about these colossal funds, and they be subject to public and professional consideration for restructure).
  3. and the directing of this this to whatever area of government would consider how possible restructure would occur. Her recommendation should include the state’s data-sampled estimate of $8 trillion in the various 14,000 government agencies.

Robert, this Friday will begin the 6th week you have been in receipt of this data. If I do not have a public statement by Carol to affirm $600 billion in surplus taxpayer assets according to your own financial statement and an ethical recommendation of what to do, I promise my strongest voice to invite community support to receive it. 

What is an ethical response? I can’t imagine one that does not include the above three points. Can you?

From our July 6, 2012 e-mail:

I understand this request is deceptively simple because I’m asking about what the CAFR lists as “nongovernmental cost funds” that you didn’t know existed, and has a shock-factor of $600 billion in surplus assets that raise obviously disturbing questions of why these assets are retained.

If it helps, Anthony Portantino’s Chief of Staff, Trent Hager, has taken this issue on himself and with similar difficulty because he also had no idea about these funds.

I can walk anyone through the data in minutes, Robert. I’m patient, and with limits. I need someone to work with and at least a preliminary statement from Carol by Friday, July 13. For your convenience, I’ve even drafted one that she/you can consider. If I don’t receive response, I will invite interested readers to contact you and ask why. Depending on what sites repost my articles from the three main sites, views range from the tens of thousands to over ten million.

Again, all I’m asking is Carol to affirm that these CAFR funds as listed exist (obviously), that they could be reconsidered in light of a budget deficit 35 times less than the surplus value of assets (obviously), and to take some action to send the information to officials who have the jurisdiction for that consideration. If Carol wants to do more than this minimum, that’s up to her.

The public do not know about how much they’ve been overtaxed, Robert.

That is what needs to be publicly stated and considered. This might make it easy and obvious what the public wants done with their assets.

If Carol acts within what I’ve explained as minimum ethical response above, I’m happy to credit such action publicly. If your office fails to take such minimum ethical action in reasonable time, then I will use my strongest public voice to invite the public to join in my contact to Carol’s office to receive ethical action.

I’m doing my best to make this easy and of public service, Robert.


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  • Pam

    I hope you are not losing sight of one positive development: that Carol’s office has, if tacitly, confirmed that the surplus does exist. In his emails both to you and to Legislative Council, Robert does not attempt to deny the existence of these funds. He has gone beyond this to address the possibility of their reallocation.

    I think this is a big step forward, because, with their official confirmation, you don’t have to worry that people will think you’ve misunderstood the CAFR. It would otherwise be easy for some people to assume you have, if only because the truth is so outrageous!

    • Carl Herman

      Hi Pam. In another e-mail, I tried to nail Robert down on that point of seeming admission. He dodged it. It’s not enough for Carol’s consultant to kinda-sorta’ say something in an e-mail. They have legal fiduciary responsibility to disclose with complete honesty the public’s financial position.

      If Robert is really looking for solutions, I don’t see how failure to admit the biggest point and then using a lie to move “forward” is likely evidence he’s trying to help. I see this as a way to delay and then say it’s not legal on the narrow non-issue that the legislature doesn’t have direct access to all the CAFR funds for redesignation.

  • dizzyfingers

    They can’t steal it if the public knows about it!!!

  • gozounlimited

    After explaining the CAFR…..maybe our legisisis can explain California’s Worker’s Compensation Fraud Committed by Employers, Medical Providers, and Insurance Providers:

    Workers’ compensation seems to offer injured workers a reasonable deal – if only it worked. In practice, the vast majority of workers’ compensation systems within the United States force workers to prove their need for benefits in a grossly unbalanced match against powerful insurance companies and their attorneys. What started out as a no-fault system – in part to facilitate expedited access to compensation for injured workers outside the judicial system – has become an incredibly and increasingly hostile and adversarial process in practice.

    read more …..
    In California, a detailed investigation by state auditors found that “workers’ compensation insurers violated workers’ rights in about half the claims it audited.” The violations included “unacceptably high amounts” of unpaid benefits, late payments, inaccurate benefit notices and failure to notify injured workers of their rights. In describing the experience of many workers’ compensation claimants, The Santa Rosa Press Democrat found that many injured workers slam into a wall of suspicion and distrust that will paralyze them with shame and frustration and delay their recovery.”(34) One of the injured workers interviewed by the newspaper commented: “You get the feeling that even though you have a legitimate complaint and a six-inch scar, you’re somehow a malingerer.”

    read more:,_The_Real_Story.html

    • gozounlimited

      The ultimate sin of the technocrats

      (PaulWatson) – The self-destructive, self-loathing, nihilistic drivel that poses as popular culture and modern society is like a ball and chain to humanity’s innate desire to realize its true potential.

      Alex Jones explains how the people in control of our planet are wantonly hurting the course of human development and sacrificing the very legacy of our species in order to satisfy their own meaningless, myopic lust for transitory power.

      A small group of inbred, unhappy, twisted and wicked people have committed to dominating and enslaving the population of the planet instead of serving humanity as pioneers in leading our species on to its destiny of greatness.

      Humanity can only dream of the potential it possesses in reaching out for the stars while we are being held back and turned away from our destiny by globalists.

      While the human race is being demonized as a virus or a cancer upon the planet, in reality it is our controllers who are the true cancer because they are creating the environment for mankind’s destruction.

      The ultimate sin committed by the technocrats against the world population is their attempt to shutter our doors of perception and put a halt to the charge of human progress, freedom, and spiritual enlightenment.

      If we are to survive and thrive as a species we must untangle our minds from the trap that has been laid for us by the technocrats and come to the understanding that they are the biggest threat mankind faces as a species.

      see video:

      • Carl Herman

        Wow, gozounlimited, that’s well-said!

        Thank you 🙂

  • Loren

    I sent message to my Senator today using information provided in letters and articles on the CAFRs. I have know about these for some time through Walter Burien. I have asked Senator Leyland Yee for reply and attention to restucturing the states finances. These are taxpayer assets and we need to claim them as such. These are excess funds collected by government. They only want to show us the debit side of the balance sheet for the purpose of obtaining more money fom taxpayers. What they are hiding is the assets side of the state balance sheet from plain view unless you know where to look. Comapnies and banks do the opposite of government, they promote the assets side of their balance sheets while hiding the liabilities side of their balance sheets. And lets not forget that CAFRs exist at every level of government. There are over 80,000 CAFRs in existence at all levels of government.

    • Carl Herman

      Well said, Loren. Thank you.