TSCE #29: Child Exploitation, And Other Private Members’ Bills

Private Member’s Bill C-219, introduced by John Nater, would have raised the criminal penalties for child sexual exploitation, and sexual exploitation of a child with a disability. This is one of several interesting bills pending before Parliament.

1. Trafficking, Smuggling, Child Exploitation

Check the link for more information on the TSCE series. Also, more information on Canada’s borders is available here, including the connection between open borders, and human trafficking/smuggling. Finally, more information on infanticide is available.

2. Mandatory Minimums For Child Exploitation

Criminal Code
1 Paragraph 153(1.‍1)‍(b) of the Criminal Code is replaced by the following:
(b) is guilty of an offence punishable on summary conviction and is liable to imprisonment for a term of not more than two years less a day and to a minimum punishment of imprisonment for a term of one year.
.
2 Paragraphs 153.‍1(1)‍(a) and (b) of the Act are replaced by the following:
(a) an indictable offence and liable to imprisonment for a term of not more than 14 years and to a minimum punishment of imprisonment for a term of one year; or
(b) an offence punishable on summary conviction and liable to imprisonment for a term of not more than two years less a day and to a minimum punishment of imprisonment for a term of one year.
.
3 The Act is amended by adding the following after section 286.‍1:
Aggravating circumstance — person with a disability
286.‍11 When a court imposes a sentence for an offence referred to in subsection 286.‍1(1) or (2), it shall consider as an aggravating circumstance the fact that the victim of the offence is a person with a mental or physical disability.

This bill, if passed, would have amended the criminal code, and made sexual exploitation an offence with a mandatory 1 year minimum jail sentence, even if it was tried summarily. Furthermore, it would have added a 1 year minimum to exploitation (summarily or by indictment), if the victim had a disability.

While 1 year is still very lenient, it would at least be a step in the right direction. Bills from Private Members often go nowhere, but this should be an issue everyone can agree on.

Interestingly, this bill was brought up in the last Parliament — Bill C-424 — but never got past first reading. Again, it should be something that everyone can agree is beneficial to society.

3. Property Rights From Expropriation

Expropriation Act
1 Section 10 of the Expropriation Act is amended by adding the following after subsection (11):
Exception
(11.‍1) Subsection (11) does not apply if the interest or right to which the notice of intention relates is intended to be expropriated by the Crown for the purpose of restoring historical natural habitats or addressing, directly or indirectly, climate variability, regardless of whether or not that purpose is referred to in the notice or described in the notice as the primary purpose of the intended expropriation.
.
2 Section 19 of the Act is amended by adding the following after subsection (2):
Exception
(3) Subsection (2) does not apply if the interest or right to which the notice of confirmation relates is intended to be expropriated by the Crown for the purpose of restoring historical natural habitats or addressing, directly or indirectly, climate variability, regardless of whether or not that purpose is referred to in the notice of intention or described in the notice of intention as the primary purpose of the intended expropriation.

Bill C-222 was introduced by Cheryl Gallant, and would prevent the Canadian Government from forcibly taking your land in order to turn it into a heritage site, or in some convoluted effort to fight climate change. It would amend the Expropriation Act to prevent exactly that.

Gallant was also the only MP to vote against the Liberal Motion to formally adopt the Paris Accord. She voted no, while “conservative” either voted for it, or abstained.

4. Quebec Multiculturalism Exemption

Bloc Quebecois MP Luc Theriault introduced Bill C-226, to exempt Quebec from the Multiculturalism Act. Now there is nothing wrong with wanting to protect your own heritage and culture. However, Quebec is rather hypocritical in simultaneously pushing theirs on other people.

5. Addressing Environmental Racism

Bill C-230 is to address environmental racism.
I have no words for this Bill by Lenore Zann.

6. Social Justice In Pension Plan

Canada Pension Plan Investment Board Act
1 Section 35 of the Canada Pension Plan Investment Board Act is renumbered as subsection 35(1) and is amended by adding the following:
Considerations
(2) The investment policies, standards and procedures, taking into account environmental, social and governance factors, shall provide that no investment may be made or held in an entity if there are reasons to believe that the entity has performed acts or carried out work contrary to ethical business practices, including
(a) the commission of human, labour or environmental rights violations;
(b) the production of arms, ammunition, implements or munitions of war prohibited under international law; and
(c) the ordering, controlling or otherwise directing of acts of corruption under any of sections 119 to 121 of the Criminal Code or sections 3 or 4 of the Corruption of Foreign Public Officials Act.

Bill C-231, from Alistair MacGregor, would have cut off CPPIB (the Canadian Pension Plan Investment Board), from investing in areas where any of the above are breached. This is a good idea in principle, even if the details are sparse.

7. Ban On Sex-Selective Abortion


cpc.policy.declaration

Bill C-233, from Cathay Wagantall, would make it illegal to abort children because of sex. In short, this means targeting female babies. However, it isn’t clear how this would work. Article 70 in the policy declaration says there will be no attempt to pass any abortion legislation, and Article 73 says that foreign aid shouldn’t be given to provide for abortion.

So killing children is okay, as long as it’s done in Canada, and the gender of the baby is not a factor. Makes sense to me.

8. Lowered Voting Age, Conversion Therapy

There are currently two bills: C-240, and S-219, which would lower the voting age to 16. Aside from being a bad idea, this seems a little redundant. There is also S-202, to ban conversion therapy. So, we want 16 year olds to be able to vote, and decide what gender they want to be.

9. National School Food Program

If you want the school to become more of a parent, there is Bill C-201 by Don Davies to do exactly that. It was previously Bill C-446. Now, let’s look at some non-Canadian content.

10. California Lowering Penalties For Anal


https://twitter.com/Scott_Wiener/status/1291406895878553600

San Francisco – Today, Senator Scott Wiener (D-San Francisco) introduced Senate Bill 145 to end blatant discrimination against LGBT young people regarding California’s sex offender registry. Currently, for consensual yet illegal sexual relations between a teenager age 15 and over and a partner within 10 years of age, “sexual intercourse” (i.e., vaginal intercourse) does not require the offender to go onto the sex offender registry; rather, the judge decides based on the facts of the case whether sex offender registration is warranted or unwarranted. By contrast, for other forms of intercourse — specifically, oral and anal intercourse — sex offender registration is mandated under all situations, with no judicial discretion.

This distinction in the law — which is irrational, at best — disproportionately targets LGBT young people for mandatory sex offender registration, since LGBT people usually cannot engage in vaginal intercourse. For example, if an 18 year old straight man has vaginal intercourse with his 17 year old girlfriend, he is guilty of a crime, but he is not automatically required to register as a sex offender; instead, the judge will decide based on the facts of the case whether registration is warranted. By contrast, if an 18 year old gay man has sex with his 17 year old boyfriend, the judge *must* place him on the sex offender registry, no matter what the circumstances.

Until recently, that sex offender registration was for life, even though the sex was consensual. Under 2017 legislation authored by Senator Wiener, registration. Is for a minimum of 10 years, still a harsh repercussion for consensual sex.

SB 145 does not change whether or not particular behavior is a crime and does not change the potential sentence for having sex with an underage person. Rather, the bill simply gives judges the ability to evaluate whether or not to require registration as a sex offender. To be clear, this judicial discretion for sex offender registration is *already* the law for vaginal intercourse between a 15-17 year old and someone up to 10 years older. SB 145 simply extends that discretion to other forms of intercourse. A judge will still be able to place someone on the registry if the behavior at issue was predatory or otherwise egregious. This change will treat straight and LGBT young people equally, end the discrimination against LGBT people, and ensure that California stops stigmatizing LGBT sexual relationships.

California State Senator Scott Wiener, in 2019 introduced Senate Bill SB 145, to stop men who have sex with 15, 16, and 17 year old boys from automatically becoming registered sex offenders. Here is the text of the bill.

The Bill has predictably received plenty of backlash. Criticism of it, however, has been dismissed as homophobia and anti-Semitism. Of course, a better alternative might be to RAISE the age of consent to 18 all around. That would do more to protect children.

If this seems familiar, it should. In 2016, Trudeau introduced Bill C-32, to lower the age of consent for anal sex. Eventually, it was slipped into Bill C-75, which not only reduced the penalties for many child sex crimes, but for terrorism offences as well.

11. New Zealand Loosens Abortion Laws

While New Zealand claimed to be in the middle of a pandemic, Parliament figured now is a good time to have easier access to abortion, even up to the moment of birth. Some really conflicting views on life. See Bill 310-1. Also, their “internet harm” bill seems like a threat to free speech.

Of course, that is not all that New Zealand has been up to lately. There is also taking people to quarantine camps, and denying them leave if they don’t consent to being tested. Yet, the PM thinks that critics are “conspiracy theorists”.

12. Know What Is Really Going On

Yes, this article was a bit scattered, but meant to bring awareness to some of the issues going on behind the scenes. The mainstream media (in most countries) will not cover important issues in any meaningful way. As such, people need to spend the time researching for themselves.

Bill introduced privately can actually be more interesting than what Governments typically put forward. Though they often don’t pass, they are still worth looking at.

Guest Post #2: More Great Work From CdnSpotlight Reposted

Another researcher getting into the muck and filth that is the Canadian Government and administration. Here is some of the work unearthed and exposed. Worth a good long read, for anyone who is truly concerned about the future of the nation. Here are just a few of the postings. Go check out more.

In this previous post, CdnSpotlight’s work from Gab is shared on this site. Here is continuation of that fine research.

6. Goldy Hyer

Canada’s Deep State Part 6 – Goldy Hyder
Another one of Dom’s buddies at Century Initiative is Goldy Hyder, currently Pres & CEO of the Business Council of Canada since 2018, previously:

Hill+Knowlton Strategies Canada (Ottawa) 2001-2018, working his way up to Pres & CEO in 2013

Hyder, a native Albertan, was PM Joe Clark’s chief of staff (when?) prior to joining Hill+Knowlton in 2001 but there’s no mention of dates exactly when that took place

Recently named Vice Chair of ABLAC 2020 (Asia Business Leaders Advisory Council), a high-level group of Asian and Canadian business leaders convened annually by the Asia Pacific Foundation of Canada (APFC) to identify and articulate opportunities for improved Canada-Asia business engagement.

And guess who some of the APFC members are from Canada – recognize some names from my previous posts?

Barton, Wiseman, Hyder, Fukakusa (CIB) & Sabia (Porno’s Advisory Council) – ain’t that cozy?

For some lobbying in Harper’s Government.

Duffy adviser offered to share secrets with Nigel Wright, defence alleges in cross-examination.

Defence lawyer Donald Bayne suggested adviser Goldy Hyder was actually working closer with Wright and the PMO than he was with Duffy
In April 2013, Sen. Mike Duffy engaged longtime Conservative insider and communications expert Goldy Hyder to advise him on how to handle his ongoing discussions with the Prime Minister’s Office over his expense claims.

Hyder, a consultant, then contacted Nigel Wright, at the time the prime minister’s chief of staff, to say he had been engaged as a Duffy adviser. And, according to Duffy’s defence lawyer, Hyder offered to secretly share information with Wright.

“Sen. Duffy thinks that Goldy Hyder is working on his behalf,” defence lawyer Donald Bayne told Wright in court, “but really Mr. Hyder is working for you to get to where you want to go.”

“I never viewed it that way,” replied Wright. “He introduced himself as working for Sen. Duffy.”

Duffy advisor offered to share secrets with Nigel Wright.

Then there’s this moronic piece:

Jaspal Atwal, Sikh Extremist Convicted In Assassination Attempt, Invited To Trudeau Receptions In India.

The news comes as Trudeau tries to reassure Indian leaders that his government doesn’t support Sikh extremism.

Goldy Hyder, President of Hill and Knowlton Strategies and a long-time Conservative insider who was in India for part of the Canadian trip, said the Atwal furor is taking away from the positives of the Trudeau tour.

“I do think it’s unfortunate because it’s taking away from some of the things that are happening on this that, as a Canadian of a different (political) stripe, quite frankly, I’m pleased to see.”

Hyder said he didn’t think the episode would harm Trudeau’s efforts to improve trade and cultural relations with India, largely because the mistake was fixed as soon as it was discovered.

7. Jim Leech, ON Teachers’ Pension, CIB

CANADA’S DEEP STATE Part 7 – Jim Leech – Ontario Teachers Pension Plan & Architect of the Canada Infrastructure Bank.

Currently the Chancellor of Queen’s University after retiring in 2014 as Pres/CEO of the Ontario Teachers’ Pension Plan (OTPP) 2001-2014, one of the world’s largest and most innovative pension funds. During his tenure as CEO, Teachers’ eliminated its funding deficit and was RANKED FIRST IN THE WORLD amongst peer plans for absolute returns and value-added returns over 5 & 10 years.

Feb.10, 2017 – he was named Special Advisor “to the Prime Minister of Canada” on the Canada Infrastructure Bank (CIB), working in collaboration with the Privy Council Office, the Minister of Infrastructure and Communities, and the Minister of Finance to expedite the swift and successful creation of the CIB

Mr. Leech is also a SENIOR ADVISOR to MCKINSEY & CO. (location & date unknown) & long-term acquaintance of Dominic Barton & Mark Wiseman.

Prior to his appointment as CEO, Mr. Leech headed Teachers’ Private Capital as Senior VP, the pension plan’s private investing arm where he oversaw the growth in private equity, venture capital, and infrastructure investments from $2B in 2001 to over $20B by 2007
–> This is when he and the fund gained world-wide attention

After retiring from OTPP in 2014, Mr. Leech was also appointed Special Advisor to the Ontario Minister of Finance to review the sustainability of the province’s electricity sector pension. His report was accepted by the government and is currently being implemented.

from a Globe & Mail interview Jan.2015:
Is there a particular metric you lean on?
“It’s funny, the whole time I was at Teachers, if you asked me on any given day what the stock market had done, I wouldn’t have been able to tell you. But in terms of meaty economic analysis, I put some weight in the World Economic Forum in Davos. That’s probably where I got the information.”
Also an Honorary Colonel in the Canadian Armed Forces

Check out this speech, from Jim Leech.

8. Michael Sabia & The Caisse

CANADA’S DEEP STATE Part 8 – Michael Sabia and the Caisse
While researching everything & everyone in this series, many questions arose while trying to understand how pension fund managers, global “investment/asset managers” and global “management consultants” became the Crime Minister’s gurus with so much power and say in this government – SO MUCH that an infrastructure bank Crown Corporation was created AND FAST.

Why?
How did the core mandate of public pensions morph into that?
Why does there seem to be an ulterior motive?

How does this fit in with China, the other key players like Barton & Wiseman, Pension Plans, immigration, the “middle class” & retiring boomers? Future posts to come.

These all came together with the deep digs on Michael Sabia and Quebec’s public pension the Caisse.

Michael Sabia is Pres & CEO of Quebec’s Pension Plan : Caisse de Depot et Placement du Quebec (CDPQ or The Caisse) since 2009. The first anglophone to head the Caisse which ruffled a lot of feathers in Quebec
Education
1976 BA political economy, University of Toronto
– met his wife, Hilary Pearson in 1st year, granddaughter of former PM Lester B.Pearson
1977-83 MA, MPhil, political economy, Yale University
Career
1986-90 Canadian department of finance, tax policy
1990-93 PRIVY COUNCIL OFFICE deputy secretary to the cabinet
—–> Why do I get bad vibes every time with the PCO or Clerk of the Privy Council?
1993-95 Canadian National Railway (CN), VP Corp Development
1995-99 CN CFO
1999-00 Bell Canada International, chief executive
2000-02 Bell Canada Enterprise (BCE), Exec.VP & COO
2002-08 BCE CEO & Pres
2009-present Caisse de Dépôt et Placement du Québec, CEO & Pres

Sabia held a number of senior positions in Canada’s federal public service incl. Deputy Secretary to the Cabinet of the Privy Council Office1986-93. As a federal govt bureaucrat, he worked on the tax overhaul that would lead to the creation of GST.
Sabia’s supervisor, Clerk of the Privy Council Paul Tellier, left the public service in 1992 to become Pres. of CN Rail, a Crown corp., Sabia followed him in 1993 to help in privatizing the company. Sabia held a number of executive positions at Canadian National Railway including the position of chief financial officer.

Tellier remained CEO at CN until Jan.2003 when he left “unexpectedly” to become Bombardier Corp’s CEO.

CANADIAN NATIONAL RAILWAY COMPANY LIMITED
On November 17, 1995, after 78 years as a Crown corporation, CN was part of the largest privatization in Canadian history through an initial public offering (IPO) that raised CAD 2.26 billion for the Canadian government.

This was led by a new management team of ex-federal government bureaucrats, including Paul Tellier and Michael Sabia who began preparing CN for privatization by improving productivity and enhancing profitability.

These objectives were achieved by massive cuts to the company’s management structure, massive layoffs (CN went from 32,000 employees to about 23,000) and the sale of its branch lines. In Tellier’s final year as CEO, the publicly traded company earned $800 million.

9. Quebec’s pension – The Caisse (CPDQ)

CANADA’S DEEP STATE Part 9 – Quebec’s pension – The Caisse (CPDQ)
Quebec has its own public pension plan and they do not contribute to CPP. It is the 2nd largest pension fund in Canada, after the Canada Pension Plan (CPP)

As at December 31, 2018, CDPQ managed assets of $309.5B invested in Canada and internationally
Established in 1965, the Caisse de Dépôt et Placement du Québec (CDPQ) initially focused on bonds before entering the Canadian stock market in 1967. Caisse manages the funds of other public pension and insurance plans, government and public employee pensions, employees of the QUEBEC CONSTRUCTION INDUSTRY and more.

— Remember the Charbonneau Commission?

It created its private equity portfolio investing in Québec companies then adopted new investment guidelines, placing greater emphasis on equity and entering the real estate market in the 80’s. In 1996, the Caisse’s Real Estate group was the leading real estate owner in Québec and the second largest in Canada.

As of 2017, CDPQ has 41 depositors, active on Canadian and international markets, holds a diversified portfolio including fixed-income securities, publicly listed shares, real estate investments, and private equity. A shareholder in more than 4,000 companies in Québec, elsewhere in Canada, and around the world, the Caisse is internationally recognized as a leading institutional investor
Based on Caisse’s success, the Ontario Teachers Pension Plan lobbied the federal gov’t in the 90’s, and won, to allow the same diversification as Caisse.

Caisse has 3 subsidiaries: Ivanhoe Cambridge, Otera Capital, & CDPQ Infra

Ivanhoé Cambridge is the real estate subsidiary of the Caisse investing in real estate assets ranging from office space & shopping centers to multi-residential buildings. In 2011 all of CDPQ’s real estate subsidiaries were merged into Ivanhoe Cambridge.

Otera Capital is a balance sheet lender in commercial real estate debt in Canada. Unknown if acquired or created by CDPQ in the 80’s
CDPQ Infra is the first Infrastructure Bank in Canada created June 2015 for its first & biggest project – the Réseau express métropolitain (REM) in the Montreal area

From 2010, this brilliant analysis foretells Caisse’s infrastructure bank – the MODEL for the new Canada Infrastructure Bank

Quebec: The most corrupt province. See here.

Why does Quebec claim so many of the nation’s political scandals?

“…the frankly disastrous state of Charest’s government. In the past two years, the government has lurched from one scandal to the next, from political financing to favouritism in the provincial daycare system to the matter of Charest’s own (long undisclosed) $75,000 stipend, paid to him by his own party, to corruption in the construction industry. Charest has stymied repeated opposition calls for an investigation into the latter, prompting many to wonder whether the Liberals, who have long-standing ties to Quebec’s construction companies, have something to hide. (Regardless, this much is true: it costs Quebec taxpayers roughly 30 per cent more to build a stretch of road than anywhere else in the country,

(much more on that topic…..)

10. Rise Of The Pensions

CANADA’S DEEP STATE – The Rise of the Pensions
Canada’s economy is, at best, stagnant
With no economic growth, there’s no new jobs, no additional income or disposable income to spend or INVEST
Canadians have also reached the limits of being taxed – trapping many in the “middle class” as the working poor near the poverty line

But the middle class drives the tax revenues of the entire country as well as the contributions to pension plans (CPP)
So when the middle class declines, when income declines, so do tax revenues, pension plan contributions, disposable income and investment/savings $

That’s why the Crime Minister & Liberals keep referring to the middle class:
Announced in the Fall Economic Statement, the Canada Infrastructure Bank – a key component of the government’s Investing in Canada plan – will provide innovative financing for infrastructure projects, and help more projects get built in Canada. It will lead to better projects that create the GOOD, WELL-PAYING JOBS NEEDED to GROW THE MIDDLE CLASS now, and strengthen Canada’s economy over the long term.
***Source: Prime Minister announces Special Advisor on the Canada Infrastructure Bank Feb.10, 2017

All of this is really about lower incomes = lower income tax revenue

from Jim Leech’s book The Third Rail: Confronting Our Pension Failures:
“Over the next 20 years (as of 2013) more than 7 million Canadian workers will retire. Baby boomers, the 45- to 65-year-olds who account for 42% of the country’s workforce, will join the largest job exodus in Canadian history, moving to the promised land of retirement.”

*** Since millennials now outnumber boomers, the “exodus” can be easily replaced, so what’s the big deal?
“UNLESS OUR CRUMBLING PENSION SYSTEM IS REFORMED, many of these retirees will find this dreamland a bewildering and disappointing mirage.”

*** Reforming the pension “system” is really what’s going on

“In the early 1980s, consumers were setting aside 20% of their DISPLOSABLE incomes to their retirement plans;
TODAY (2013) THE SAVINGS RATE IS A THREADBARE 2.5%

“Retirement savings plans meant to build Canadians’ personal war chests for their final years have failed to live up to their cheery promises of early retirement “freedom” – MARKET RETURNS ARE LOW, and FINANCIAL FEES ARE CLIMBING.

Moreover, retirement plans are now being compromised by high pension obligations and a shrinking workforce.”
*** No shrinking workforce with millennials replacing these workers, but their lower entry-level salaries don’t match the higher boomer salaries because of their decades of work experience

When public pensions got the green light from gov’ts to invest in real estate & riskier investments, those plans exploded in wealth:
CPP from $44.5 B in 2000 to $409.5 B in 2019 – an increase of $365 B in 20 yr
CDPQ from $50 B in 1994 to $325 B in 2019 – staggering – Quebec only!
OTPP from $69 B in 2001 to $191 B in 2018
There’s also OMERS, HOOPP, etc

However, CPP became concerned with decreasing contributions as the workforce declined or retired. CPP had projected a deficiency in contributions vs. pensions being paid in 2021. That means the investment portion of the CPP portfolio has to be used to top up this deficiency.

But isn’t that what it’s for? See this report.
Source: Office of the Superintendent of Financial Institutions Canada

11. Follow The Money….

CANADA’S DEEP STATE Part 11 – Follow the Money

How governments & capitalists are STEALING Public Pension Funds
Previous posts in this series showed that middle class Canadians and all levels of government are broke, with governments heavily in debt with no real means to create additional tax revenues

But there’s TRILLIONS of $ in Canada’s Public Pension Plans

And TRILLIONS of $ of infrastructure needed WORLDWIDE

Since legislation forbids government access to these funds, this Liberal gov’t has changed the GAME by creating the Canada Infrastructure Bank

Now that gov’t has created the CIB, gov’t will now work at arm’s length, meaning no formal direct bidding process with the gov’t
That means SNC-Lavalin gets their “get out of jail free” card – they can bid on anything
And will likely get them all

In Dec.2017, Minister of Infrastructure Amarjeet Sohi (and Morneau) wrote the true mandate of the CIB in their Statement of Priorities and Accountabilities – Canada Infrastructure Bank (CIB)

“The Bank will be an innovative financing tool designed to work collaboratively with public and private sector partners to transform the way infrastructure is planned, funded and delivered in Canada”

Public & private sector partners – otherwise known as PPPs or the 3Ps or P3 – see next post in this thread
Public sector partners include Institutional Investors – otherwise known as pensions, insurance, etc

“As other countries face the same challenges of closing the infrastructure gap with private and INSTITUTIONAL CAPITAL and finding new ways to fund infrastructure, our GLOBAL PARTNERS (WHO THE HELL ARE THEY?!?) WILL BE WATCHING AND LEARNING FROM THE BANK”
Looks like Canada is the guinea pig for the “Global Partners” – see next post in this thread

Read this archived post.

12. ….And Go Follow CdnSpotlight

Should be obvious by now this account contains some real dirt that is politics in Canada. Most Canadians have no idea about the filth and corruption that our nation is immersed in. But CS lays it out.

Guest Post: CdnSpotlight Researching Corruption Within Canada’s Ranks

Another researcher getting into the muck and filth that is the Canadian Government and administration. Here is some of the work unearthed and exposed. Worth a good long read, for anyone who is truly concerned about the future of the nation. Here are just a few of the postings. Go check out more.

CLICK HERE, for the Gab account where this research can be found.

1. Dominic Barton

CANADA’S DEEP STATE
What began with a negative news article about Dominic Barton becoming our new ambassador to China in Sept. got me curious so I started digging.

And what I’ve been finding is alarming.
It is much, much larger than just lowly ol’ Barton as the pic shows.
The tentacles are far-reaching and the Canadian players involved are so intertwined that it’ll cause some ‘splodey heads like mine.
So please bear with me as I try to explain this in my series/threads.

So let me start with the article that started it all:
Terence Corcoran: Dominic Barton could be the right man for China … if he remembers what makes Canada work:
Barton’s admiration and support of China’s statist economic ideas, and his frequently stated disdain for market capitalism, certainly give one reason to pause – Sept. 2019

CLICK HERE for an article on the subject.

Read every word of that article, it briefly describes Barton’s “philosophy” & ideology

“China as the world’s leading practitioner of state corporatism. Barton thinks the Communist Party of China has developed some fantastic economic models that might even be exportable to the rest of the world, including Canada.

Barton and McKinsey, for example, have been enthusiastic backers of China’s Belt and Road Initiative (BRI), a massive global infrastructure scheme

the One Belt, One Road (OBOR) infrastructure initiative, the project was described by Barton in 2015 as “inspiring” and a model for “long-term thinking” with infrastructure spending as the foundation for economic growth.

China’s Belt/Road model, suggests Barton, is the way of the future. “The Chinese saying ‘build a road first if you want to get rich’ is spot on — data suggests that for every $1 billion in infrastructure investment, 30,000 to 80,000 jobs are created, generating $2.5 billion in new GDP.”

In my humble opinion, this is where Canada’s headed…

2. CPPIB, Blackrock, Mark Wiseman

CANADA’S DEEP STATE Part 2
Now that ambassador Dominic Barton has been identified as the architect, let’s look at some of his buddies and their connections with BlackRock and Canada Pension Plan Investment Board (CPPIB)

Born in Niagara Falls Ontario, Mark Wiseman became a Senior Managing Director at BlackRock NYC in 2016 as Global Head of Active Equities for BlackRock and Chairman of BlackRock Alternative Investors. He also serves as Chairman of the firm’s Global Investment Committee and on its Global Executive Committee.

He was President and CEO of the Canada Pension Plan Investment Board (CPPIB) 2012-2016 after starting there in 2005 as Senior Vice-President, Private Investments.

Prior to joining CPPIB, Mark was responsible for the private equity fund and co-investment program at the Ontario Teachers’ Pension Plan. He has worked at Harrowston Inc., a publicly traded Canadian merchant bank, and as a lawyer with Sullivan & Cromwell, where he practiced in New York and Paris.

He also served as a law clerk to Madam Justice Beverley McLachlin at the Supreme Court of Canada – ring a bell? During the Justice Committee hearings with Jody Wilson-Raybould about the SNC-Lavalin Scandal, Buttsputin & Clerk of the Privy Council had insisted Jody talk with her for “advice”.

But the BlackRock ties don’t stop there.

BlackRock Canada CEO is Marcia Moffat since 2015– who just happens to be Mark Wiseman’s wife – based in Toronto. Mark returns home to Toronto on weekends from New York. She was formerly with RBC under Janice Fukakusa (see pic)

Wiseman is also the Chairman of FCLTGlobal (formerly Focusing Capital on the Long Term), an organization that encourages longer-term approaches in business and investing, which was set up by BlackRock, CPPIB, Dow, McKinsey & Company and Tata in 2016.

Mark is also a member of the Advisory Council on Economic Growth, which advises Finance Minister MORNEAU on economic policies to achieve long-term, sustainable growth. Mark serves on the boards of several non-profit organizations, including Sinai Health Services in Toronto, the Capital Markets Institute and the Dean’s Advisory Board at the Rotman School of Management, University of Toronto.

At CPPIB, Wiseman made a name for himself by opening offices and pursuing investments abroad, particularly in South America and South Asia.

CPP investment chief Mark Wiseman to make surprise exit after nearly four years at helm.

While the one source characterized his departure as amicable, another source familiar with CPPIB’s inner workings said there was friction on leadership issues.

“…some questioned whether it was only the CPP’s interests that were being promoted” His years as CEO at CPPIB have been marked by a stream of deals, ranging from a lucrative early investment in Chinese e-commerce company Alibaba.

In 2015 – Why the head of Canada’s biggest pension fund is bullish on energy.

Mark Wiseman says CPPIB is looking at a range of investments from buying equity and partnering on acquisitions to outright takeovers
Mark Wiseman, who runs Canada’s biggest pension fund, offered the Davos crowd last week a two-pronged argument on why he’s bullish on energy assets after the recent plunge in oil prices.

Wiseman said that simple supply and demand perspective all but guarantees oil prices will be higher 10 years down the road, offering investment opportunities now for the $234 billion fund. “I’ll take that bet” on oil’s rebound, he said in an interview Tuesday at Bloomberg’s Toronto office.

“We see a lot of value in the Western Canadian basin,” he said, noting that oil sands projects are on his radar.
“WE LIKE COMPANIES THAT HAVE GOOD UNDERLYING ASSETS AND BAD BALANCE SHEETS. That’s the perfect scenario for us.”
–> premonition?

He encouraged the Canadian federal and provincial governments to look to jurisdictions like Australia, where state governments are given incentives to invest in infrastructure and court outside funding.

In the meantime, Canada Pension is looking to places like China, India and Brazil.

3. Willy Porneau’s Advisory Council

Let’s take a look at how quickly the Liberals put Deep State into play.

Willy Porno (Morneau) and his new Dream Team – the Advisory Council on Economic Growth.

Less than 2 months after the 2015 federal election, Willy Porno announces the new Advisory Council in his speech to the Toronto Region Board of Trade.

This was obviously planned long before the election.

CPAC December 14, 2015 – Bill Morneau – Keynote Speech
Finance Minister Bill Morneau addresses the Toronto Region Board of Trade, discussing the government’s strategy for supporting the middle class and long-term economic growth in Canada, including a plan to create an advisory council for economic growth. Following his speech, Morneau responds to questions from the board.

You should see this, and also see this.

A month later, the Crime Minister is at the World Economic Forum in Davos, with Dominic Barton:
“I would bet that almost all of you have Canadians in leadership positions in your companies—you may not know it because we don’t often shout it from the rooftops, some clichés about Canadians are true. In fact, at least half of you have hired Dominic Barton at one point or another.”

While in Davos, PMJT met with many high rollers – Microsoft CEO Natya Nadella, Facebook COO Sheryl Sandberg,

and billionaire George Soros, whose interests include combating climate change.

Then on Feb.22, 2016 Willy Porno announced Barton as Chair of the Council:
This article references the earlier ties Barton had to Wiseman by creating Focusing Capital on the Long Term (FCLT) Global in 2013 – board of directors include Larry Fink CEO BlackRock NYC – Wiseman’s future boss in 3 short years.
McKinsey executive to head new federal economic council.

4. Canada Infrastructure Bank

Canada’s Deep State Part 4 – Canada Infrastructure Bank
The Canada infrastructure Bank (CIB) has been steeped in controversy since it was first proposed.

The Liberal’s 2015 election promise was to provide low-cost financing to municipalities for infrastructure projects, as a vehicle for Ottawa to use its strong credit rating and lending authority to help municipalities reduce their cost of borrowing.

The Liberal plans evolved considerably since the party first promised an infrastructure bank during that election campaign – there was no mention of attracting private capital. The role of the proposed Canadian Infrastructure Development Bank was to attract financing from institutional investors to fund projects over the next 10 years as a Crown corporation.

Dominic Barton and Michael Sabia sketched out the infrastructure bank idea at the Public Policy Forum summit in Oct. 2016, a more ambitious plan in which the bank would gather and prioritize large projects that could earn revenue, such as electrical networks, and that attract billions in added international investment.

Sounds an awful lot like McKinsey’s “for-profit public-sector work” and advising governments.

The proposal to entice global pension funds into major Canadian investments goes far beyond anything promised to date by the federal Liberals, but Finance Minister Bill Morneau – who worked directly with the panel over the past several months – signalled a strong openness to the recommendations announced Thursday.

However, the panel’s 14 members include leaders of some of those institutional investors, including Mark Wiseman, senior managing director of BlackRock Inc., and Michael Sabia, CEO of the Caisse de dépôt et placement du Québec pension fund.

Examples of potential projects listed… include toll highways and bridges, high-speed rail, port and airport expansions, city infrastructure, national broadband infrastructure, power transmission and natural resource infrastructure.

PM hopes to attract billions in private capital for infrastructure
Trudeau takes his foreign-investment agenda to investors, two weeks after announcing an infrastructure bank.

He will be accompanied by nine members of cabinet, including Finance Minister Bill Morneau, Infrastructure Minister Amarjeet Sohi, Transport Minister Marc Garneau, and Health Minister Jane Philpott. Trudeau and four of the ministers also are set to make their pitch to about a dozen Canadian investors — insurance companies and big pension funds like the Canada Pension Plan Investment Board — in the morning before meeting with the international investors in the afternoon.

Attracting billions in private-sector capital for “transformative” infrastructure projects is key to the Liberal government’s long-term strategy to boost Canada’s sluggish economic growth.

5. Century Initiative

Canada’s Deep State – Part 5 Century Initiative

When I first started digging about Canada’s new ambassador to China Dominic Barton, he popped up in a group called Century Initiative – a “non-profit” Canadian “registered charity”

Century Initiative’s 6 Founding Members – Dom, his buddy Mark & some new players
Dominic Barton, new Ambassador to China, prev. Global Managing Partner McKinsey & Co
Mark D. Wiseman, BlackRock NYC, former CEO Canada Pension Plan Investment Board
Goldy Hyder, Business Council of Canada president and CEO
– Future post to come on Hyder
Willa Black, Vice-President, Corporate Affairs – Cisco Canada
Tom Milroy, Managing Director, Generation Capital Limited
Andrew Pickersgill, also McKinsey & Co

Registered in Jan.2016, a few short months after the 2015 election, a month after Willy Porno announces the Canada Infrastructure Bank at the Toronto Region Board of Trade and while Dom & PMJT are schmoozing at the World Economic Forum in Davos.

Now what would 6 capitalists be doing with a charity? Is this Barton’s belief that “corporations should be vehicles for social responsibility, not profits, and they should act for the welfare of all stakeholders, not just shareholders”?

This charitable status is a huge concern – if I’m not mistaken, there is no reporting or accountability of charities – no records of donors. A perfect vehicle for money-laundering & off-shore investments, likely thru the CIB, and tax write-offs for donors – the prefect storm for the elite 1%. I also believe the recent changes to charities in Bill C-86 was an “indirect” benefit to them.

Seems odd that Dom would set up a charity because in the past decade, McKinsey made a major push into FOR-PROFIT PUBLIC-SECTOR WORK, advising governments around the world.

Possible links to 21st Century Initiative by the American Association of Community Colleges (AACC) & Obama??? Anons???

From Jan. to Sept. 2016, there doesn’t appear to be much about Century Initiative in the news. Of course Dom & Wiseman are busy with the Canada Investment Bank. But their buddies at Century Initiative were busy busy setting up, writing reports & hiring Shari Austin as CEO, previously VP of Corporate Citizenship and Executive Director of the RBC Foundation – not sure of her connection with Gordon Nixon, Janice Fukakusa or Wiseman’s wife Marcia Moffat at RBC but you can bet there is one.

In Oct. 2016, press releases & new articles start exploding on the scene

Hidden behind the Canada Infrastructure Bank’s “mandate” is Century Initiative, a “registered charity”
Finance Minister’s key advisers want 100M Canadians by 2100

Barton sees a dovetail between some of the ideas behind the Century Initiative and the growth council (Advisory Council), but he says they are separate.

In fact, behind the closed doors of the growth council meetings, Barton said the Century Initiative’s 100-million goal didn’t come up.

He did acknowledge that he and Wiseman were among the biggest proponents behind the immigration-boosting idea that the group presented to Morneau.

“Probably because Mark and I have been in (Century Initiative) we’re obviously more naturally bullish towards it,” said Barton, who also noted that there was a lot of debate on the scope of the immigration proposal.

6. Go Follow CdnSpotlight

The above is only a small sample of what has been posted on the Gab account by CdnSpotlight. Lots of dirt, and much of it very unpleasant. However, Canadians concerned about their country should take a look into this.

The rot and corruption runs deep throughout the Canadian political systems. Unfortunately, most people just don’t want to know about it.

CCS #15: UN Global Taxation Efforts & Schemes

(Ways to raise money)

(This is the Paris Accord, and “Conservative” Garnett Genuis’ dishonest spin in supporting it in Parliament.)

(Shiva Ayyadurai, Republican and former Senate Candidate explains how the Carbon tax really works.)

(UN supports global tax to raise $400B)

(Details of proposed global tax scheme)

(Pensions are also being eyed as a funding source)

(UN Environment Programme)

(Green finance for developing countries)

(International Chamber of Commerce)

(Addis Ababa Action Agenda)

(Global tax avoidance measures)

(Why stop at just billions?)

These are not the only examples, but should serve as an illustration for the “taxation” efforts the UN is undertaking in order to finance its various agendas. Of course its ultimate goal is world domination.

1. Debunking The Climate Change Scam

CLICK HERE, for #1: major lies that the climate frauds tell.
CLICK HERE, for #2: review of the Paris Accord.
CLICK HERE, for #3: Bill C-97, the GHG Pollution Pricing Act.
CLICK HERE, for #4: in 3-2 decision, Sask. COA allows carbon tax.
CLICK HERE, for #5: controlled opposition to carbon tax.
CLICK HERE, for #6: controlled opposition Cons ==> Supreme Court.
CLICK HERE, for #7: climate bonds pitched as $100T industry.
CLICK HERE, for #8: Joel Wood pitching various pricing options.
CLICK HERE, for #9: Mark Carney and UN climate finance.
CLICK HERE, for #10: Goldman Sachs, Obama, Clinton, Chicago CX.
CLICK HERE, for #11: Coronavirus, Pirbright Inst, Gates, Depopulation.
CLICK HERE, for #12: AOC and the “Green New Deal”.
CLICK HERE, for #13: UN seeks new development financing.
CLICK HERE, for #14: New Development Fund, bait-and-switch.

CLICK HERE, for BOLD Like A Leopard Guest Posting.

2. Important Links

CLICK HERE, for New Development Financing: Carbon Tax $250B/year
CLICK HERE, for UN “Int’l Tax” To Raise $400B.
CLICK HERE, for Paris Accord “Financial Flows”.
CLICK HERE, for Addis Ababa, Financing Devel’t.
CLICK HERE, for Int’l Chamber of Commerce, Tax, SDA Goals.
CLICK HERE, for ICC Position on Tax, SDA Goals.
CLICK HERE, for Green Financing, Sustainable Development.
CLICK HERE, for Development Financing, “Cooperation” To Combat Tax Avoidance.
CLICK HERE, for Leveraging African Pension Plans.
CLICK HERE, for Finance 2030 SDG, $5-7T Needed.
CLICK HERE, for UN Tax Treaties Changes.
CLICK HERE, for: From Billions To Trillions
CLICK HERE, for Sustainable Financing Report.
CLICK HERE, for UN Enviro Program, Finance Initiative.
CLICK HERE, for Capital Development Finance.
CLICK HERE, for UN Join Staff Pension Fund.
CLICK HERE, for the UN Credit Union

CLICK HERE, for a recent article by Uppity Peasants on the UN Environment Programme. Also, go check out the site.
CLICK HERE, for a guest post by: BOLD Like a Leopard. This covered the “Green New Deal”, the US proposal.

3. Paris Accord Is All About Taxation

This is not an exaggeration, or hyperbole. The entire point of the agreement is to generate an enormous slush fund. The UN IPCC and select partners can then put that money into the commodities market and make trillions from it.

If you have any doubts about that, read Article 9 from the Paris Agreement. It spells out the “financial flow” in no uncertain terms.

1. Developed country Parties shall provide financial resources to assist developing country Parties with respect to both mitigation and adaptation in continuation of their existing obligations under the Convention.

2. Other Parties are encouraged to provide or continue to provide such support voluntarily.

3. As part of a global effort, developed country Parties should continue to take the lead in mobilizing climate finance from a wide variety of sources, instruments and channels, noting the significant role of public funds, through a variety of actions, including supporting country-driven strategies, and taking into account the needs and priorities of developing country Parties. Such mobilization of climate finance should represent a progression beyond previous efforts.

4. The provision of scaled-up financial resources should aim to achieve a balance between adaptation and mitigation, taking into account country-driven strategies, and the priorities and needs of developing country Parties, especially those that are particularly vulnerable to the adverse effects of climate change and have significant capacity constraints, such as the least developed countries and small island developing States, considering the need for public and grant-based resources for adaptation.

5. Developed country Parties shall biennially communicate indicative quantitative and qualitative information related to paragraphs 1 and 3 of this Article, as applicable, including, as available, projected levels of public financial resources to be provided to developing country Parties. Other Parties providing resources are encouraged to communicate biennially such information on a voluntary basis.

6. The global stock take referred to in Article 14 shall take into account the relevant information provided by developed country Parties and/or Agreement bodies on efforts related to climate finance.

7. Developed country Parties shall provide transparent and consistent information on support for developing country Parties provided and mobilized through public interventions biennially in accordance with the modalities, procedures and guidelines to be adopted by the Conference of the Parties serving as the meeting of the Parties to this Agreement, at its first session, as stipulated in Article 13, paragraph 13. Other Parties are encouraged to do so.

8. The Financial Mechanism of the Convention, including its operating entities, shall serve as the financial mechanism of this Agreement.

9. The institutions serving this Agreement, including the operating entities of the Financial Mechanism of the Convention, shall aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support for developing country Parties, in particular for the least developed countries and small island developing States, in the context of their national climate strategies and plans.

These are quotes directly from the Paris Accord. In particular, Article 9 makes it abundantly clear that this is all about “financial flow” and a transfer of wealth from the developed world to the developing world.

Actual environmental changes seem almost to be an afterthought. This is a giant wealth transfer scheme.

4. New Development Finance, Bait-and-Switch

Okay, what are these “revenue sources”?

  • SDR (or special drawing rights), from IMF $150B-$270B
  • Carbon taxes, $240B
  • Leveraging SDR, $90B
  • Financial transaction tax, $10B-70B
  • Billionaire tax, $90B
  • Currency trading tax, $30B
  • EU emissions trading scheme, $5B
  • Air passenger levy, $10B
  • Certified emission reduction tax, $2B
  • Current ODA Flow, $120B

If these numbers are accurate, then the US is viewed as a cash cow somewhere to the tune of $627 billion to $807 billion. Yes, this only refers to revenue potential from the United States. I believe this is annually.

What does the report say about SDAs?

These include taxes on financial and currency transactions and on greenhouse gas emissions, as well as the creation of new international liquidity through issuance of special drawing rights (SDRs) by the International Monetary Fund IMF), to be allocated with a bias favouring developing countries or leveraged as development financing. Though their potential may be high, these proposals are subject to political controversy. For instance, many countries are not willing to support international forms of taxation, as these are said to undermine national sovereignty.

No kidding. There is a lot of political opposition to taxes which are deemed to undermine national sovereignty. Could that be because these taxes AREN’T being used to support the well being of the citizenry? Instead the money is being funnelled out of the country in the name of some global good project.

This is how bait-and-switch works:
(1) Raise money using cause A.
(2) Actually spend the money on cause B.

An array of other options with large fundraising potential have been proposed (see figure O.1 and table O.1), but have not been agreed upon internationally thus far. These include taxes on financial and currency transactions and on greenhouse gas emissions, as well as the creation of new international liquidity through issuance of special drawing rights (SDRs) by the International Monetary Fund IMF), to be allocated with a bias favouring developing countries or leveraged as development financing. Though their potential may be high, these proposals are subject to political controversy. For instance, many countries are not willing to support international forms of taxation, as these are said to undermine national sovereignty.

(Page 86) Debt-conversion mechanisms
Debt conversion entails the cancellation by one or more creditors of part of a country’s debt in order to enable the release of funds which would otherwise have been used for debt-servicing, for use instead in social or environmental projects. Where debt is converted at a discount with respect to its face value, only part of the proceeds fund the projects, the remainder reducing the external debt burden, typically as part of a broader debt restructuring.

Debt to developing nations can be “forgiven”, at least partly, if certain conditions are met. However, the obvious question must be asked:

Can nations be loaned money they could never realistically pay back, in order to ensure their compliance in UN or other global agenda, by agreeing to “forgive” part of it?

(Page 86) Debt conversion first emerged, in the guise of debt-for-nature swaps, during the 1980s debt crisis, following an opinion article by Thomas Lovejoy, then Executive Vice-President of the World Wildlife Fund (WWF), in the New York Times in 1984. Lovejoy argued that a developing country’s external debt could be reduced (also providing tax relief to participating creditor banks) in exchange for the country’s taking measures to address environmental challenges. Estimates based on Sheikh (2010) and Buckley, ed. (2011) suggest that between $1.1 billion and $1.5 billion of debt has been exchanged through debt-for-nature swaps since the mid–1980s, although it is not possible to assess how much of this constitutes IDF, for the reasons discussed in box III.1.

If debt can be forgiven in return for environmental measures, then why not simply fund these environmental measures from the beginning? Is it to pressure or coerce otherwise unwilling nations into agreeing with such measures?

(Page 88)
There have been two basic forms of debt-for-nature exchanges (Buckley and Freeland, 2011). In the first, part of a country’s external debt is purchased by an environmental non-governmental organization and offered to the debtor for cancellation in exchange for a commitment to protect a particular area of land. Such transactions occurred mainly in the late 1980s and 1990s and were generally relatively small-scale. An early example was a 1987 deal under which Conservation International, a Washington, D.C.-based environmental non-governmental organization, bought $650,000 of the commercial bank debt of Bolivia (now Plurinational State of Bolivia) in the secondary market for $100,000, and exchanged this for shares in a company established to preserve 3.7 million acres of forest and grassland surrounding the Beni Biosphere Reserve in the north-east part of the country.
In the second form, debt is exchanged for local currency (often at a discount), which is then used by local conservation groups or government agencies to fund projects in the debtor country. Swaps of this kind are generally much larger, and have predominated since the 1990s. The largest such swap came in 1991, when a group of bilateral creditors agreed to channel principal and interest payments of $473 million (in local currency) into Poland’s Ecofund set up to finance projects designed to counter environmental deterioration. The EcoFund financed 1,500 programmes between 1992 and 2007, providing grants for conservation projects relating to cross-border air pollution, climate change, biological diversity and the clean-up of the Baltic Sea (Buckley and Freeland, 2011).

We will “forgive” your debt if:
(1) A portion of your land is off limits; or
(2) Debt converted to currency to fund “projects”

The entire document is 178 pages. While a tedious read, it’s worthwhile.

5. UN Wants $400B In Global Taxation

New York, 5 July 2012 –The United Nations is proposing an international tax, combined with other innovative financing  mechanisms, to raise more than $400 billion annually for development and global challenges such as fighting climate  change.    In its annual report on global development, World Economic and Social Survey 2012: In Search of New Development  Finance, (WESS 2012) launched today, the UN says, in the midst of difficult financial times, many donor countries have cut  back on development assistance. In 2011, for the first time in many years, aid flows declined in real terms

The survey finds that the financial needs of developing countries have long outstripped the willingness and ability of donors to provide aid. And finding the necessary resources to achieve the Millennium Development Goals and meet other global challenges, such as addressing climate change, will be tough, especially for least developed countries. 

The need for additional and more predictable financing has led to a search for new sources not as a substitute for aid, but as a complement to it. A number of innovative initiatives have been launched during the past decade, mainly to fund global health programmes aimed at providing immunizations, AIDS and tuberculosis treatments to millions of people in the  developing  world.  The  UN  survey  finds  that  while  these  initiatives  have  successfully  used  new  methods  to  channel  development  financing to combat diseases, they have hardly yielded any additional funding on top of traditional development assistance. 

This source explains it straight from the horse’s mouth. The UN is not taking in enough money for its various schemes. In fact, real contributions are shrinking. Therefore it is necessary to come up with new and innovative ways to tax developed nations.

Of course one of the most common ways is with the “climate change” scam. But it is hardly the only one. The UN views many forms of wealth simply as money to tap into.

6. UN Eyeing Up African Pensions

(Page 10) III. PENSION FUNDS DIRECT INVESTMENT IN INFRASTRUCTURE
International experience At 36.6 percent of GDP, assets of the pension funds in OECD countries are relatively large. As of end-2013, pension-fund assets were even in excess of 100 percent in countries such as the Netherlands, Iceland, Switzerland, Australia, and the United Kingdom (Figure 1). In absolute terms, pension funds in OECD countries held $10.4 trillion of assets. While large pension funds (LPFs) held about $3.9 trillion of assets, assets in public and private sector and public pension reserves (PPRFs) stood at $6.5 trillion.

(Page 30) C. Policy framework for investment in infrastructure Pension funds—just like other investors, domestic and foreign—need a fair, transparent, clear, and predictable policy framework to invest in infrastructure and other assets. This is important as infrastructure assets have a number of characteristics that increase investors’ perception of risk. First, infrastructure projects typically involve economies of scale and often lead to natural monopolies with high social benefits and, at times, lower private returns. As a result, infrastructure projects may require heavy government involvement. Second, infrastructure projects are often large and long-lived with a significant initial investment but with cash flows that accrue over a long horizon.

In this regard, improving the policy framework for investment can be useful to countries seeking to develop the investor base for infrastructure. For instance, the OECD’s Policy Framework for Investment (PFI) uses self-assessments and/or an external assessment by the OECD to help a country elaborate policies for capacity building and private sector development strategies, and inform the regional dialogue (OECD, 2015b). The PFI’s investment policy refers not only to domestic laws, regulations, and policies relating to investment but also goals and expectations concerning the contribution of investment to sustainable development, such as infrastructure

(Page 31) D. Infrastructure financing instruments available to pension funds Even in well-performing pension systems where the governance, regulation, and supervision of pension funds are conducive to investment in infrastructure and there is a sound policy framework for investment, there is still a need for adequate instruments to channel pension fund assets into the infrastructure sector. Pension funds can use a number of channels to invest in infrastructure. Direct exposure is gained mainly through the unlisted equity instruments (direct investment in projects and infrastructure funds) and project bonds, while indirect exposure is normally associated with listed equity and corporate debt. More specifically, pension funds can rely on a number of options such as

The paper itself is quite long, but here is the gist of it. The UN wants to take African pension funds and use them to “invest” it UN type of schemes.

While this seems harmless enough, remember the Paris Accord. The UN thinks nothing of taxing the developed world hundreds of billions of dollars under false pretenses in order to invest in the commodities market. Nor does the UN object to giving “infrastructure loans” to nations that will likely never be able to pay it back.

It should alarm people that an organization with no inherent loyalty to the region would want to use African pension funds to finance its own agenda.

7. UN Environment Programme (UNEP)

United Nations Environment Programme – Finance Initiative (UNEP FI) is a partnership between United Nations Environment and the global financial sector created in the wake of the 1992 Earth Summit with a mission to promote sustainable finance. More than 250 financial institutions, including banks, insurers, and investors, work with UN Environment to understand today’s environmental, social and governance challenges, why they matter to finance, and how to actively participate in addressing them.

UNEP FI’s work also includes a strong focus on policy – by facilitating country-level dialogues between finance practitioners, supervisors, regulators and policy-makers, and, at the international level, by promoting financial sector involvement in processes such as the global climate negotiations.

Here are the members of the Global Steering Committee. In short, this is a partnership between the UN and banking sector.

Keep in mind the “New Development Financing” agenda discussed earlier. Money is taken and used to “invest” in 3rd World Development Programs. Countries that are unable to pay back are forced either to give up sovereignty, or comply with other arrangements.

Banks are in the business of making money. Alternatively, they are in the business of acquiring assets which can be converted into money, or otherwise make them money. What if this banking alliance has no altruistic roots, and is meant to be predatory?

Uppity Peasants has an interesting take on the UNEP.

Make no mistake, this is exactly what happens to these people, by the way. One cross-country comparison between microloan recipients in Bangladesh and payday loan recipients in Canada found that both ‘products’ tend to attract the same kinds of people to them from very similar backgrounds, for largely the same reasons — i.e., neither group tends to use these loans for re-investment, such as starting a business; rather, they use them to cover day-to-day expenses at exorbitant interest rates, thus entrapping themselves in a cycle of never ending debt (Islam & Simpson, 2018). If you know how bad the consequences of payday lending can be for people in the first world, imagine how bad it is for someone who’s already living in third world-levels of poverty.

Now, part of the reason why the UNEP, of all possible agencies, is so heavily invested (emotionally and literally) into fintech and other start-up technologies is because many of the “incumbent banks” — the top-players of our current system — don’t think that completely up-ending the global financial system to move the focus away from profits and toward complying with heavy-handed, UN-decided environmental regulations is a particularly attractive road to go down. In the next excerpt, the UNEP openly admit that start-ups in this area are better to invest in for the pursuit of ‘change’, specifically because their owners tend to be new to the world of business and, as such, don’t know enough about what they’re doing to avoid being manipulated — and that’s where the UNEP comes in.

Uppity Peasants argues that the UNEP is driven much more on a business model than on any kind altruistic path. Further, the circumstances which the aid recipients require the resources to cover essential expenses means they are unable to invest anything. This is similar to a payday loan type of system.

8. Green Finance For 3rd World $5-7 Trillion

(Page 13)In 2015, governments adopted three major agreements that set out their vision for the coming decades: a new set of 17 sustainable development goals (SDGs), the Paris Agreement on climate change and the ‘financing for development’ package. Finance is central to realizing all three agreements – and these now need to be translated into practical steps suited to each country’s circumstances.

Sustainable Energy for All estimates that annual global investments in energy will need to scale up from roughly US$400 billion at present to US $1-1.25 trillion. Of that, US$40-100 billion annually is needed to achieve universal access to electricity. Overall, US $5-7 trillion a year is needed to implement the SDGs globally. Developing countries are estimated to face an annual investment gap of US$2.5 trillion in areas such as infrastructure, clean energy, water and sanitation, and agriculture.

(Page 14) The challenge for financial systems is twofold: to mobilize finance for specific sustainable development priorities and to mainstream sustainable development factors across financial decision-making.

Capital needs to be mobilized for inclusion of underserved groups (e.g. small and medium enterprises), raising capital for sustainable infrastructure (e.g. energy, housing, transport, urban design) and financing critical areas of innovation (e.g. agriculture, mobility, power).

Sustainability needs to become mainstream for financial institutions. This starts with ensuring market integrity (e.g. tax, corruption, human rights) and extends to integrating environmental and social (E&S) factors into risk management (e.g. climate disruption, water stress). Sustainability also needs to be incorporated into the responsibilities and reporting of market actors to guide their decision-making. Momentum is building to align financial systems with the financing needs of an inclusive, sustainable economy. This is complementary to ‘real economy’ actions such as environmental regulations, reform of perverse subsidies and changes to resource pricing. However, while these are critical, it is increasingly recognized that changes are also needed in the financial system to ensure that it is both more stable and more connected to the real economy.

Some interesting points here:

  • $5 to $7 trillion (yes trillion) needed annually fulfill these goals. The billions stated before was lowballed.
  • The “sustainability” agenda needs mass marketing.
  • Finance needed for:
    1. 17 goals of Agenda 2030
    2. Paris Climate Accord
    3. Finance for development
  • 3 above items to be integral part of national agendas.
  • Most of this has nothing to do with the environment

In fact, it reads like a global version of the US Green New Deal, proposed by Alexandria Ocasio-Cortez. In fact, her Chief of Staff, Saikat Chakrabarti, admitted it was about changing the economy, not the environment.

9. International Chamber Of Commerce

THE INTERNATIONAL CHAMBER OF COMMERCE ICC is the world’s largest business organization with a network of over 6 million members in more than 130 countries. We work to promote international trade, responsible business conduct and a global approach to regulation through a unique mix of advocacy and standard setting activities—together with market-leading dispute resolution services. Our members include many of the world’s largest companies, SMEs, business associations and local chambers of commerce.
.
We are the world business organization.

That quote came from their policy guide. Pretty straightforward. They want to run business on a global level. Now, let’s get to the meat and potatoes, the tax proposals:

Interplay between tax policy making and economic growth The world’s population is predicted to increase by 2 billion people by 2050, and the population of the world’s least developed countries is projected to double by 2053, in some countries even tripling. By 2025 half of the world’s population will be living in water-stressed areas. Under such circumstances, the need for large-scale investment in economic growth and development becomes evident.

Whilst there is no panacea, it is evident that greater alignment of investment and tax policies would be essential in promoting investment, job creation and economic growth. International commerce remains a powerful mechanism to help lift people out of poverty. Tax is intrinsically linked to development as taxation provides the revenue that states need to mobilize resources and reinforce a country’s infrastructure. Taxation “provides a predictable and stable flow of revenue to finance public spending, and shapes the environment in which investment, employment and trade takes place.”

Further, it is important to have a fair, efficient, and effective revenue collection infrastructure to promote economic and social development. Domestic resource mobilization (DRM) has been proposed as a way to meet the SDGs with the development finance already available. However, DRM can be impeded by unclear and confusing tax systems. It is imperative that companies are able to move products and services into areas where they are most needed without unnecessary administrative impediments.

Having a reliable and consistent taxation policy seems reasonable enough. However, the ICC is not being clear on the reason behind the push. They want better taxation methods in order to INCREASE the amount of revenue available.

Governments often side with these groups, even when it is not in the best interests of the citizens themselves. “Investment” dollars are then shovelled into infrastructure projects.

Tax the people, so that the money can be “properly” spent, as the UN and their partners see fit.

10. Addis Ababa Action Agenda

(Page 10) DOMESTIC PUBLIC RESOURCE
For all countries, public policies and the mobilization and effective use of domestic resources, underscored by the principle of national ownership, are central to our common pursuit of sustainable development, including achieving the sustainable development goals. Building on the considerable achievements in many countries since Monterrey, we remain committed to further strengthening the mobilization and effective use of domestic resources

(Page 10) 22. We recognize that significant additional domestic public resources, supplemented by international assistance as appropriate, will be critical to realizing sustainable development and achieving the sustainable development goals. We commit to enhancing revenue administration through modernized, progressive tax systems, improved tax policy and more efficient tax collection. We will work to improve the fairness, transparency, efficiency and effectiveness of our tax systems, including by broadening the tax base and continuing efforts to integrate the informal sector into the formal economy in line with country circumstances.

23. We will redouble efforts to substantially reduce illicit financial flows by 2030, with a view to eventually eliminating them, including by combating tax evasion and corruption through strengthened national regulation and increased international cooperation. We will also reduce opportunities for tax avoidance, and consider inserting anti-abuse clauses in all tax treaties. We will enhance disclosure practices and transparency in both source and destination countries, including by seeking to ensure transparency in all financial transactions between Governments and companies to relevant tax authorities. We will make sure that all companies, including multinationals, pay taxes to the Governments of countries where economic activity occurs and value is created, in accordance with national and international laws and policies

(Page 13) 27. We commit to scaling up international tax cooperation. We encourage countries, in accordance with their national capacities and circumstances, to work together to strengthen transparency and adopt appropriate policies, including multinational enterprises reporting country-by-country to tax authorities where they operate; access to beneficial ownership information for competent authorities; and progressively advancing towards automatic exchange of tax information among tax authorities as appropriate, with assistance to developing countries, especially the least developed, as needed. Tax incentives can be an appropriate policy tool. However, to end harmful tax practices, countries can engage in voluntary discussions on tax incentives in regional and international forums.

(Page 45) 98. We affirm the importance of debt restructurings being timely, orderly, effective, fair and negotiated in good faith. We believe that a workout from a sovereign debt crisis should aim to restore public debt sustainability, while preserving access to financing resources under favourable conditions. We further acknowledge that successful debt restructurings enhance the ability of countries to achieve sustainable development and the sustainable development goals. We continue to be concerned with non-cooperative creditors who have demonstrated their ability to disrupt timely completion of the debt restructurings.

In no way does this cover the entire document. However, there are 3 themes which get repeated over and over again.

  1. Efficient tax collection
  2. Global tax regulations and data sharing
  3. “Sustainable” debt and borrowing

There is very little in this document, about actually improving lives, improving infrastructure, or improving the environment. Instead, it is all about implementing a global taxation system, while eliminating “off the books”, or illicit cash.

11. Global Tax Avoidance Measures

Exchange of information for tax purposes
Exchange of information has long been included as a feature of tax treaty models. By agreeing to exchange information with respect to taxpayers, countries can become more aware of the global activities taxpayers are engaging in and impose tax that should be due.

The upcoming 2017 revision of the United Nations Model Double Taxation Convention between Developed and Developing countries is expected to bring a new revised version of the exchange of information provision, following the approval of the new United Nations Code of Conduct. The Committee agreed in 2016 to a proposal for a United Nations Code of Conduct on Cooperation in Combating International Tax Evasion. This Code supports the automatic exchange of information for tax purposes as the way forward for countries generally, but recognizes that it is vital for developing countries to exchange information, even if they are not ready for automatic exchange. The Code of Conduct has been approved by the Committee of Experts in 2016, and set automatic exchange of information as the new universal standard after ECOSOC adopted the Code of Conduct in a Resolution in 2017, during the ECOSOC Special Meeting on International Cooperation on Tax Matters. .Furthermore, the OECD model convention and commentaries is expected to broaden the scope of the exchange of information article to allow triangular, or multi-party exchange of information requests.

While this certainly sounds like some well meaning way to prevent money laundering and tax fraud, there is another angle to look at.

Having a global (or at least more centralized) database of people and their taxable income will allow for more efficient and effective tax collection. This is especially true whenever a new “development project” needs funding.

Furthermore, if there is such a global system, it will be easier to determine who isn’t paying “their fair share” when it comes to contributions. Those national governments can then act accordingly. Also, who doesn’t view this as becoming a global version of Revenue Canada, or the American IRS?

12. From Billions To Trillions (SF 2.0)

Achieving the Sustainable Development Goals (SDGs) will require an enormous increase in external financing flows to developing countries. Development Finance Institutions (DFIs) have gradually started to shift their business model towards de-risking services to crowd in long-term, low-risk private capital. However, the targeted scaling up of private investment from billions to trillions to realise the SDGs contains massive risks for stability. And good macro-policies are needed, in turn, to address such underlying risks. Countries that need the greatest amount of development finance are often those that have domestic financial resource constraints and underdeveloped markets. Financing their growth and investment opportunities makes the management of exchange rate risks, which are inherent in development finance, a critical challenge.

Merely supplying development finance is not enough. It needs to be done in socially and economically sustainable ways, where risks are allocated to those who can best manage and sustain them. Efficient use of limited public resources, through improved policies and regulatory processes, is required to achieve the SDGs and related efforts. Governments around the world must work together to offer feasible business opportunities to the private sector that are in line with domestic and international development objectives. Only with such coordinated action will we succeed in moving from billions to trillions to realise sustainable progress for all.

This article should serve as a warning to anyone who thinks that this global development system is going to be steady. Wrong. Once considered “fully operational”, the next step is to upscale it, and make it far bigger.

It is not governments who will be paying for these globalist schemes. It is the working class tax-payers who will see more and more of their wealth transferred to these projects.

Of course, once your money leaves Canadian soil, there is little to no accountability or control over what happens to it. But that it routinely downplayed.

13. What To Make From All This?

To state the obvious: these agendas and agreements are bringing nations towards a global taxation model. Countries (presumably under UN control) will be expected to share data on tax paying citizens and other people earning money. While this is touted as an anti-tax avoidance measure, the real goal is making sure the global order accounts for all money and where it goes.

Going towards a “cashless society” also helps in that regard. Hence the push for more and more electronic options, while making cash payments more difficult.

Beyond enforcement, knowing which nations have money and how much will make it easier to determine who shall pay how much as their “fair share” of future projects. We won’t have nations in the traditional sense, just shareholders.

International agreements like the Paris Accord have nothing to do with the environment. That is just the sales pitch. Instead, it an excuse to funnel huge sums of money to the UN to finance their business model. It is taking advantage of an altruistic goal.

This is about having a globalist, centralized economy and taxation. The environmental and humanitarian claims are just talking points.

Pensions #4: Principles For Responsible Investing (UN Agenda)

1. More On Pension Plans/Funding

CLICK HERE, for #1: CPPIB invests $2B in Mumbai, India.
CLICK HERE, for #2: CPP underfunded, money leaving Canada.
CLICK HERE, for #3: where is all money actually going?

2. Important Links

CLICK HERE, for UN Principles for Responsible Investing, Statement on ESG in credit risk and ratings.
CLICK HERE, for review of UN PRI (& ESG Agenda)
CLICK HERE, for CPPIB, sustainable investing.
CLICK HERE, for CPPIB PRI (2010 report)
CLICK HERE, for CPPIB’s self proclaimed “focus areas”.
CLICK HERE, for climate change brochure.
CLICK HERE, for the human rights brochure.
CLICK HERE, for the $100T industry that is climate bonds.
CLICK HERE, for 2018 Sustainable Investing Report.

For some context on the American situation:
CLICK HERE, for Social Security unable to pay obligations by 2034.

3. Quotes From 2010 Policy Guide

We are guided by certain principles as they relate to responsible investing. These include, but are not limited to, the following:
• The overriding duty of the CPP Investment Board, consistent with its mandate, is to maximize investment returns without undue risk of loss;
• Portfolio diversification is an effective way to maximize long-term riskadjusted returns;
• Portfolio constraints either increase risk or reduce returns over time;
• Responsible corporate behaviour with respect to environmental, social and governance (ESG) factors can generally have a positive influence on longterm financial performance, recognizing that the importance of ESG factors varies across industries, geography and time;
• Disclosure is the key that allows investors to better understand, evaluate and assess potential risk and return, including the potential impact of ESG factors on a company’s performance;
• Investment analysis should incorporate ESG factors to the extent that they affect risk and return;

CLICK HERE, for CPPIB expecting to invest more than just 8% in China.

3.0 Investment Strategy In the context of our long-term investment horizon, the CPP Investment Board aspires to integrate ESG factors into investment management processes, where relevant, for all asset classes within the portfolio. As stated in our principles above, it is our belief that responsible corporate behaviour with respect to ESG factors can generally have a positive influence on long-term financial performance.

For public equities, the CPP Investment Board’s responsible investing team works with internal portfolio managers to assess ESG risks and opportunities as they relate to overall corporate performance. In our private market and real estate investments, ESG factors are evaluated, where applicable, in the due diligence process and monitored over the life of the investments

4.4 Industry Dialogue The CPP Investment Board participates in broader domestic and international discussion about definitions, priorities, standards and best practices in responsible investing.
.
The CPP Investment Board participates in a number of organizations, including:
.
UN Principles of Responsible Investment
• Canadian Coalition for Good Governance
• Pension Investment Association of Canada
• International Corporate Governance Network
• Council of Institutional Investors

First things first. This policy guide was released in August 2010 when Stephen Harper was Prime Minister, not Justin Trudeau.

The guide outlines repeatedly how UN principles for responsible investment (PRI) will be followed. It also states that environmental, social, governance factors (ESG) will also be taken into account. This is right out of the UN agenda.

4. CPPIB’s So-Called “Focus Areas”

  • Climate Change
  • Water
  • Human Rights
  • Executive Compensation
  • Board Compensation

Shouldn’t a pension fun be focused on growing the size of the fund first and foremost? Why does virtue signalling have to factor into absolutely everything? But this isn’t the worst of it. Let’s dig a little deeper into these categories.

5. CPPIB Starts Issuing “Climate Bonds”

In June 2018, CPPIB completed its inaugural issuance of green bonds, becoming the first pension fund in the world to do so. Investors bought $1.5 billion of the 10-year bond, which Bloomberg reported was a record at the time for a single green bond transaction in Canada.

Since their introduction in 2007, green bonds have become a mainstream way for companies, governments and other organizations to raise funds for projects with environmental benefits. The issuance of a green bond was a logical next step to our investment-focused approach to climate change. Capital was raised to provide additional funding as we pursue acquisitions of strong, long-term investments eligible under our Green Bond Framework. In the 12 months to June 30, 2018, we announced plans to invest more than $3 billion in renewable energy assets.

This sounds lovely, except the CPPIB seems oblivious to the complete money pit that “green initiatives” have shown to be in projects across Canada and elsewhere. I really don’t see how they will be able to repay investors for these bonds.

Climate change is one of the most significant physical, social, technological and economic challenges of our time. Its impacts are expected to be pervasive and broad-ranging. Scientists believe it is critical to limit global warming to less than two degrees Celsius (2°C) above pre-industrial levels in order to prevent irreversible damage. Rising temperatures and sea levels create physical and transition risks, such as water scarcity, threats to biodiversity, extreme weather and policy and market risks.

Such changes also create potential investment opportunities in areas such as technological innovation and renewable energy (see table on page 2 for details) that may present themselves in the near, medium or long term. Given our exceptionally long investment horizon, we are actively addressing climate change to increase and preserve economic value, in accordance with our mandate. The implications of the global transition to lower carbon sources of energy will be far reaching for investors and companies alike.

It is difficult to tell what (if any) the board actually believes in this climate change, and how much is simply a shrewd business move. See here, for more info on climate bonds.

It appears that CPPIB is simply trying to profit from the political winds that is the climate change agenda. And it is using Canadian pension funds to finance this openly partisan agenda.

6. Human Rights As Business Perspective

Why We Engage
Human rights are relevant from an investment perspective because operational disruptions and reputational damage can arise when these matters are not appropriately managed. Effective human rights management is important for companies’ enhancement of long-term value.

We believe strong human rights practices contribute to sustaining long-term value. Working with companies in our portfolio on this topic is an important part of our mandate to maximize long-term returns. Companies with strong human rights policies and practices are less likely to face disruptions to operations from legal and regulatory risk, protests, workforce action and other activities. They are also less likely to suffer reputational damage due to human rights-related controversies. We also assess human rights risks within the supply chain of companies, primarily considering poor working conditions and labour issues (such as child labour). We are currently focusing our efforts on supply chain management in the consumer and information technology sectors.

So much for principles here. Human rights not from a moral or ideological perspective, but purely from a commercial one.

7. Sustainable Financing Report For 2018

Note: the report indicates that only 15% of the various investments are actually within Canada. The rest are abroad, including 38% in the US.

Also worth noting: the CPPIB claims to have $356.1 billion in assets. The reality (using close-group valuation actually rates it at almost $1 trillion in liabilities all told.

We integrate environmental, social and governance factors into our investment analysis, both before and after making investments. Our Sustainable Investing group works with investment teams throughout CPPIB to help them identify and assess ESG matters.

CPPIB’s assessment of ESG considerations can be an important factor in determining whether a potential investment is attractive. Where such ESG considerations are material, they can significantly affect our assessment of a company’s risk profile and value.

CPPIB’s Sustainable Investing group works across the organization to support investment analyses on the impact of ESG factors. It also conducts research on industry standards and best practices, and expands our knowledge and resources by collaborating with external partners and industry associations.

Subsequent pages go on at length about the ESG (environment, social, government) goals. However, the point is pretty clear. All investment decisions, including areas to invest in, are looked at through this lens.

8. Why Involve Our Pensions In This?

This reeks of social engineering more than any real sound financial advice. The CPPIB seems to drink the climate change Kool-Aid in its entirety with this.

While diversifying a portfolio makes sense, it is rather troubling that the overwhelming majority (85%) of the fund is actually being sent overseas. Wouldn’t it make more sense to be investing in Canadian projects and infrastructure?

Once the money leaves Canada, it becomes difficult, if not impossible to track and keep control of.

Pensions #5: Social Security Unable To Fully Pay Obligations By 2034

(Social Security Administration)

(2019 Annual Report to Congress)

(Signatories to the 2019 report)

1. More On Pension Plans/Funding

CLICK HERE, for #1: CPPIB invests $2B in Mumbai, India.
CLICK HERE, for #2: CPP underfunded, money leaving Canada.
CLICK HERE, for #3: where is all money actually going?
CLICK HERE, for #4: CPPIB embraces UN PRI agenda for investing.

2. Important Links

On the American situation:
CLICK HERE, for the 2019 Annual Report to Congress.

CLICK HERE, for an interesting powerpoint on liability calculation.
CLICK HERE, for a 2018 paper: UNFUNDED OBLIGATION AND TRANSITION COSTS FOR THE OASDI PROGRAM
CLICK HERE, for the Brookings Institute & privatization.

3. Side Note On Signatories

Although unrelated to the long term problems with the Social Security program, it is worth pointing out — as a side note — some scandals with 2 people involved. Steve Mnuchin, is long suspected or corruption, and Alex Acosta was the Prosecutor who previously let Jeffrey Epstein off on child sex charges.

4. Open-Group v.s. Closed Group Valuation


From this presentation. The author makes the assumption that “open-group valuation” should be used for public pensions such as Social Security, while private pensions should rely on “closed-group valuation” methods of accounting.

The difference is this:
Open-group valuation principles mean that a pension is solvent and in good shape as long as it’s current assets and payouts are able to keep up with the demands of retirees at the moment. It doesn’t require that the pension plan be fully funded. The reasoning is there is a “social contract”, and that the Government can raise more money (tax more) to cover the shortfalls.

Closed-group valuation principles require that “all” liabilities be taken into account. The is a far more accurate method, as payments from all workers are considered, if those who won’t retire for decades. The rationale is that private companies could go bankrupt at any time, and need to take the actual amounts into account.

For obvious reasons, the closed-group valuation method is a far more accurate approach in calculating the health of pension plans. It forces “all” assets and liabilities to be disclosed.

To be fair, it is a valid point that private pension funds cannot exactly just “take more money” to cover their shortfalls. Still, the open-group approach is very misleading.

5. The Approach Explained in 2018 Paper

1. Introduction In calculating the unfunded obligation of the Old-Age and Survivors Insurance and Disability Insurance (OASDI) program, we include the entire cost of paying scheduled benefits in full and on time, even after trust fund reserves are depleted. However, when the trust fund reserves are depleted, current law limits expenditures to the amount of continuing income received by the fund. Thus, the measures of unfunded obligation represent the shortfall of financial resources scheduled under current law to cover the cost associated with timely payment of scheduled benefits for the period.

The unfunded obligation for any program must be defined on the basis of the intended funding method for the program. Because the OASDI program is financed on essentially a current-cost or pay-as-you-go basis, the open group unfunded obligation measure is appropriate. Programs that are intended to be essentially fully advance-funded require the use of other measures, reflecting a closed group perspective, to assess their unfunded obligation (or liability). However, these closed group measures are more accurately described as theoretical measures of “transition cost” for the OASDI program. Estimates of the unfunded obligation vary depending on the valuation period and the assumptions used. Transition cost measures also vary depending on which plan participants are included.

(See this source.) This paper explains that the open-group valuation method is appropriate because people will always be paying into it. While this is a valid point, it doesn’t take away from the growing amount of unfunded liabilities.

In fact, it helps to conceal just how much the program owes and still is obligated to pay out. The only way this works is with an infinitely growing population, and ever growing contributions.

Basically, a giant Ponzi scheme, where participation is mandatory, under threat of arrest and detention.

6. Quotes From 2019 Report

In 2018 At the end of 2018, the OASDI program was providing benefit payments1 to about 63 million people: 47 million retired workers and dependents of retired workers, 6 million survivors of deceased workers, and 10 million disabled workers and dependents of disabled workers. During the year, an estimated 176 million people had earnings covered by Social Security and paid payroll taxes on those earnings. The total cost of the program in 2018 was $1,000 billion. Total income was $1,003 billion, which consisted of $920 billion in non-interest income and $83 billion in interest earnings. Asset reserves held in special issue U.S. Treasury securities grew from $2,892 billion at the beginning of the year to $2,895 billion at the end of the year.

Short-Range Results Under the Trustees’ intermediate assumptions, Social Security’s total cost is projected to be less than its total income in 2019 and higher than its total income in 2020 and all later years. Social Security’s cost has exceeded its non-interest income since 2010. For 2019, program cost is projected to be less than total income by about $1 billion and exceed non-interest income by about $81 billion.

This information is from the overview (Page 2). it states that on paper, the revenue generated (both from employee deductions and from interest/dividends generated was slightly higher than the payments it distributed.

On paper, this seems fine. However, getting to the “long-range results” it tells a different story. However, it still relies on the “open-group valuation” method.

The projected OASDI annual cost rate increases from 13.91 percent of taxable payroll for 2019 to 16.62 percent for 2040 and to 17.47 percent for 2093, a level that is 4.11 percent of taxable payroll more than the projected income rate (the ratio of non-interest income to taxable payroll) for 2093. For last year’s report, the Trustees estimated the OASDI cost for 2093 at 17.72 percent, or 4.36 percent of payroll more than the annual income rate for that year. Expressed in relation to the projected gross domestic product (GDP), OASDI cost generally rises from 4.9 percent of GDP for 2019 to about 5.9 percent by 2039, then declines to 5.8percent by 2052, and then generally increases to 6.0 percent by 2093.

For the 75-year projection period, the actuarial deficit is 2.78 percent of taxable payroll, decreased from 2.84percent of taxable payroll in last year’s report. The closely-related open-group unfunded obligation for OASDI over the 75-year period is 2.61 percent of taxable payroll, decreased from 2.68 percent of payroll in last year’s report. The open-group unfunded obligation for OASDI over the 75-year period is $13.9 trillion in present value and is $0.7 trillion more than the measured level of $13.2 trillion a year ago. If the assumptions, methods, starting values, and the law had all remained unchanged, the actuarial deficit would have increased to 2.90 percent of taxable payroll, and the unfunded obligation would have risen to about 2.74 percent of taxable payroll and $13.7 trillion in present value due to the change in the valuation date.

(Those quotes from page 4) Using the “open-group” method, the unfunded liabilities over 75 years is $13.9 trillion, or adding the equivalent of $185 billion/year. The authors also state a few blunt facts in the conclusion

Conclusion Under the intermediate assumptions, the projected hypothetical combined OASI and DI Trust Fund asset reserves become depleted and unable to pay scheduled benefits in full on a timely basis in 2035. At the time of depletion of these combined reserves, continuing income to the combined trust funds would be sufficient to pay 80 percent of scheduled benefits. The OASI Trust Fund reserves are projected to become depleted in 2034, at which time OASI income would be sufficient to pay 77 percent of OASI scheduled benefits. DI Trust Fund asset reserves are projected to become depleted in 2052, at which time continuing income to the DI Trust Fund would be sufficient to pay 91 percent of DI scheduled benefits.

Lawmakers have a broad continuum of policy options that would close or reduce Social Security’s long-term financing shortfall. Cost estimates for many such policy options are available at www.ssa.gov/OACT/solvency/provisions/

A few points to take away here
(A) Old Age Survivors Insurance (OASI) will become depleted in 2034, and only able to pay 77% of its obligations.
(B) Disability Insurance (DI) will be depleted in 2052, and only able to pay 91% of obligations by then.
(C) Raising deductions taken from employees is necessary.

But this is using open-group valuation methods of accounting. So how much

7. Getting An Answer On Unfunded Liabilities

It has been difficult getting an accurate answer on the true size of the Social Security deficit. Estimates range from $10 trillion to over $100 trillion.

The government cited $13.7 trillion in liabilities using the less accurate “open-group” valuation. Still, that is an awful lot of money, even if it is the full amount.

8. Why Not Reform Or Privatize?

The Brookings Institute explains in this article why efforts to privatize or reform Social Security have so far gone no where. Media scare is not the only reason for this.

Any transition to a private system must overcome a major financial hurdle, however. Social Security has accumulated trillions of dollars in liabilities to workers who are already retired or who will retire soon. To make room for a new private system, policymakers must find funds to pay for these liabilities while still leaving young workers enough money to deposit in new private accounts. This requires scaling back past liabilities – by cutting benefits – or increasing contributions from current workers. Most large-scale privatization plans also involve major new federal borrowing. Consequently, if a balanced budget amendment becomes part of the constitution, it would torpedo any attempt to replace most of Social Security with a private retirement system.

Privatizing Social Security can boost workers’ rate of return by allowing retirement contributions to be invested in private assets, such as stocks, which yield a better return than the present pay-as-you-go retirement system. Returns can be boosted still further if the government borrows on a massive scale to pay for past Social Security liabilities, allowing workers to invest a larger percentage of their pay in high-yielding assets. Exactly the same rate of return can be obtained, however, if the current public system is changed to allow Social Security reserves to be invested in private assets.

The article is blunt about the situation.

The system DEPENDS ON a constant inflow of new money from younger workers in order to stay solvent. If current workers were to start pulling their money from Social Security (and saving or investing elsewhere), the program would be immediately strapped for cash. This means benefits cuts to those receiving it, and higher premiums for those paying into it.

Of course, as workers who remain have to pay higher premiums, they, quite reasonably, will look for other options. This could easily create a snowball effect where more and more people pull their contributions. This will cause the collapse of Social Security.

So it’s not really the “privatization” boogeyman here. It is that the system needs an ever growing pool of new money to pay off retirees.

Yes, it’s a government run Ponzi scheme.

9. Government Pensions Are Ponzi Schemes

As was demonstrated in previous articles, the Canadian Pension Plan has almost a trillion dollars in unfunded liabilities. While claiming to have almost $400 billion in assets, the truth is that the full size of liabilities put it well in the hole.

The U.S. Social Security system faces the same issues, although the scope is worse. Even the open-group accounting method lists $13 trillion in liabilities.

There are efforts to “reform” which include: (a) raising premiums; (b) cutting benefits; and (c) raising the age of retirement. However, this may just be like shuffling the deck chairs on the Titanic. Futile. As long as a fund depends on paying off retirees with the contributions of workers, it is set up for failure.

Letting workers invest in private funds will hasten the demise, as it would deplete the funds needed to pay off existing retirees.

One has to shake their head. Bernie Madoff ran a Ponzi scheme and was sent to prison. As would any private citizen. But when the government does it, it’s called a social safety net.

Same conclusion as before: Americans are pretty screwed.