From the April 2009 Idaho Observer:

Where did all the "money" go?

The stock market has reportedly lost about half its value in less than a year. According to commodities trader Walter Burien, some 65 percent of funds traded on Wall Street are derived from government-controlled securities. This "money," Burien asserts, is the multiple hundreds of billions of off-budget dollars that government has made by leveraging the wealth and future productivity of the people and privately reinvesting the funds as documented in the comprehensive annual financial reports (CAFRs) every taxing district, by law, produces each year. If over half the funds traded on Wall Street are from government-controlled securities and half the value of the stock market has evaporated, it is logical to ask, "What has happened to the CAFR funds?" One would think they, too, have lost at least half their value. But have they?

By Walter Burien

The international and domestic commodity futures market prices are determined by traded contracts of different commodities and a listing of the primary domestic ones can be viewed at

Every trade is settled by the exchange

The trades can generate massive profits or losses for the players.

All trades generate cash profits or losses, and every trade settles by the exchange.

Government in the last three decades has taken over the derivatives market.

Upon viewing who "walks" with all the cash from the trades as an end result when trades are closed, local and federal government are taking 90 percent of the cash profits and the public and others are stuck with 90 percent of the losses as a rule in application.

The brokers, exchanges and a few from the public who get "lucky" are getting the other 10 percent.

A derivative is an item where a trade can be entered and closed out in five seconds, five minutes, five days or five months.

When closed out, there is no further liability or profit incurred on the trade and, as in the profit side, you walk with the cash and the ongoing derivative trades are someone else’s issue.

Government, as the biggest monopoly on earth, has "sucked" all of the cash out of everyone else’s pockets as they opened and then closed each and every trade through the use of these derivative trades. Government does take losses on trades but its NET results for overall profits taken out of the international marketplaces are not touched by any other.

Truck-loads of "cash" were hauled off between 2001 and 2008 into government trading accounts (many government accounts are now off-shore) as trades were entered and "closed."

By year end 2008, brokers for these government trading accounts (the largest ones are mostly off-shore) are seeing the inevitable bursting of the housing market boom where the music would stop playing very soon, government traders positioned themselves with massive "short" derivative positions, then intentionally stopped the music at their cue and started to dump their physical equities on the international marketplace causing the collapse.

In doing so they were guaranteeing massive profits on their short derivative positions and massive losses on everyone else’s trades. As for their account balances, government traders "promoted" their losses in physical domestic holdings to say "oh look how terrible it is"... Get it?

They then use a trillion dollars here and a trillion dollars there from taxpayer revenue to shore-up the playing field that "they" destabilized in the first place as their greed was applied for complete takeover of the wealth transferred from one hand (domestic government accounts) to the other (off-shore government accounts) through the use of derivatives, a market place that "they" expanded up from an 80 trillion dollar a year international market place in 2000 to a 600 trillion-dollar-a-year marketplace in 2008, giving themselves the ability to pull the plug and clip everyone else (a history of the derivatives marketplace by F. William Engdahl is available in the March, 2009 edition of The IO).

A complete audit of government’s off-shore vs. domestic accounts is urgently needed to determine the net result of its recent market manipulations.

With derivatives, for every one dollar lost, one dollar is credited to another’s account. We are talking about the International Stock Index, Interest Rate Index, Dollar Index, Crude Oil Index, Precious Metals Indexes; trillions of dollars are transferred in these markets. The exchanges settle EVERY trade, and ALL were settled! So who walked away with the cash?

Government did.

An audit of the Federal Reserve, while it would be interesting, is not what is needed at this time. An audit of government’s NET domestic and international derivative trading activity held by and managed for government by themselves, or the Federal Reserve, other Banks, Brokerage, and Insurance companies, is what is URGENTLY needed NOW!

Will it be done? I doubt it. That would be like asking the foxes who just walked off with all of the hens to conduct an audit of the 50,000 hens that used to be in the hen house that just "disappeared."

For another piece of the puzzle that ties the many government accounts together creating the biggest monopoly on Earth, go to

The entertainment of the public goes on and the echoing laughter from a few key players in the back halls of government and their outside cooperative players continues..

Walter J. Burien, Jr. exposed the CAFR story in 1998. Burien pioneered the process whereby one can analyze government’s own annual document, the CAFR, to prove that government is not the servant of the people, but a for-profit, public trust fleecing machine. You can visit Burien’s website at or write to him at P O Box 2112 Saint Johns, AZ 85936