Category: Corruption

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Max Boykoff’s Revenge On Science: Creative Climate Communications, Part I

1. Important Links

CLICK HERE, for the Climate Change Scam Part I.
CLICK HERE, for Part II, the Paris Accord.
CLICK HERE, for Part III, Saskatchewan Appeals Court Reference.
CLICK HERE, for Part IV, Controlled Opposition to Carbon Tax.
CLICK HERE, for Part V, UN New Development Funding.
CLICK HERE, for Part VI, Disruptive Innovation Framework.
CLICK HERE, for Part VII, Blaming Arson On Climate Change.
CLICK HERE, for Part VIII, Review Of Green New Deal.
CLICK HERE, for Part VIII(II), Sunrise Movement & Green New Deal.
CLICK HERE, for Part IX, Propaganda Techniques, Max Boykoff.
CLICK HERE, for Part X, GG Pollution Pricing Act & Bill C-97.
CLICK HERE, for part XI, Dr. Shiva Ayyadurai Explains Paris Accord

2. US & Canadian Copyright Laws

Disclaimer #1: The Canadian Copyright Act has a “fair dealing” provision, which allows for copyrighted material to at times be used for specific purposes: research, private study, education, parody, satire, criticism, review and news reporting. Click Here and also Click Here for more information.

Disclaimer #2: The U.S. Copyright Act has a “fair use” provision, which states that the fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright. Click Here to read the text.

This should be obvious, but just to clarify, this article is about criticizing, commenting on, teaching and researching purposes.

3. About The Author, Maxwell Boykoff

His professional biography is available here.

Max’s research and creative work has developed primarily in two arenas:
(1) cultural politics of science, climate change and environmental issues = this refers to ways that attitudes, intentions, beliefs and behaviors of individuals and groups shape (and are shaped by) the perceived spectrum of possible action in the context of science-policy, climate change and environmental issues.
.
(2) transformations of carbon-based economies and societies (with emphasis on the interface of science and practical action) = this refers to decarbonization politics, policies and decision-making, with particular interest in how these activities find meaning in people’s everyday lives, as well as how they, in turn, feed back into science-policy decision-making.

Feel free to check into his other works.
Now for the book itself.

4. Table Of Contents

(1) Here And Now
(2) How We Know What We Know
(3) Do The Right Thing
(4) Ways Of Learning, Ways Of Knowing
(5) It’s Not You, It’s Me…. Actually It’s Us
(6) Academic Climate Advocacy & Activism
(7) Silver Buckshot
(8) Search For Meaning

5. Quoting Creative Climate Communications

(From back cover) Conversations about climate change at the science-policy interface and in our lives have been stuck for some time. This handbook integrates lessons from the social sciences and humanities to more effectively make connections through issues, people and things that everyday citizens care about. Readers will come away with an enhanced understanding that there is no “silver bullet” to communications about climate change; instead a “silver buckshot” approach is needed where strategies effectively reach different audiences in different contexts.

One thing that will be clear right away: this is not about using scientific methods to PROVE that climate change is a serious threat. Rather, it is about using scientific methods to CONVINCE people that climate change is a serious threat. Very different things.

We live in remarkable times. Amidst high-quality and well-funded research into the causes and consequences of climate change, conversations in our lives — and climate communications — are stuck. Consciously or unconsciously, a feeling of complacency has often weighed on our collective and our individual selves.

Another point made early on, Boykoff expresses no doubt whatsoever in the “scientific findings” of the climate change movement. The entire focus of the book is about using social science and humanities research to persuade people this is a problem.

(Page 2) Responding to these emergent needs, in recent years has been a blossoming of valuable research in the peer-review literature addressing various elements of this larger challenge. More research groups, organizations, institutions and practitioners around the world have increasingly explored creative spaces of climate communication to better understand what works where, with whom (what audiences), when and why.

Boykoff makes an important note here. He is not by any means a revolutionary here. “Climate communications” is a growing field, with people all over the world trying to determine better methods for “selling” the climate change claims. In short, this is research about marketing. Not science.

(Page 2) Creative approaches involve the deployment of multimodal communications. A mode is a system of choices used to communicate meaning. What might count as a mode is an open-ended set, ranging cross a number of systems, including but not limited to language, image, color, typography, music, voice, quality, dress, posture, gestures, special resources, perfume and cuisine.

What superficial points are listed?

  • language
  • image
  • colour
  • typography
  • music
  • voice
  • quality
  • dress
  • posture
  • gestures
  • special resources
  • perfume
  • cuisine

We are still just on the second page, and already getting an introduction into the very superficial traits which can subtly be used to convince people of our arguments.

Forget facts, research, data, and logic. This is all about presenting a good sales pitch.

(Page 3) Among many elements seeping into the environments, I consider the dynamics that shape creative and potentially effective messages as well as messengers of those climate change communications. Over time, broad references to communications through media platforms have generally pointed to television, films, books, fliers, magazines, radio and internet for pathways for largescale communications.

Additional modes and manifestations of communications also include (analyses of) documentary films about dystopian futures, stand-up comedy about climate and cultures, podcasts about climate science and policy interactions.

Boykoff notes the traditional forms of media, but laments that they are not enough by themselves to do the job. The job of course, is “pitching” the climate change agenda.

(Page 4) Meeting people where they are takes carefully planned and methodical work. It does not mean “dumbing things down” for different audiences. Through this process of assessment of research and practice in these areas, conversations can more capably seek answers to a provocative question Mike Hulme posted in 2009, “How does the idea of climate change the way we arrive at and achieve our personal aspirations and our collective social goals?”

(Page 5) KNOW THY AUDIENCE
These creative (climate) communication endeavors must start with consideration of the audience. These may be imagined, (un)intended or actual audiences. Researchers and practitioners have increasingly paid attention to differentiated audiences as key components to deliberate development of effective communication.

Knowing who your audience is actually a useful piece of advice, regardless of circumstances. However, in context of this book, it comes across as manipulation.

(Page 6) Audience segmentation and consequent message alteration has been a part of marketing and associated communications strategies since the 1950s (Smith 1956, Slater 1996). Audience segmentation endeavours as they relate to climate change communications, have proliferated over the last decade (Leal Finho 2019).

This book is about marketing strategies of climate change “communications”. Nothing more. It is about manipulative techniques designed to persuade by non-factual means.

6. Where Things Go From Here

The book is 300 pages, the last 60 of which are references. No doubt that an awful lot of work has gone into this. Yes, the intro article is relatively short, but it is setting the stage for later. Sequels will be longer and quote much more.

As alluded to earlier, this is really a book about marketing. It’s not about research done to prove that humans are causing climate change, but rather research to CONVINCE people that they are.

Rather than going into environmental research, the book delves in sociological and social psychological research methods. It looks at work previously done in the fields of persuasion, and applies those principles to “climate communications”.

Boykoff appears to have no doubts about humans causing climate change. Nor does he seem to have any reservations about using these social studies techniques to pursue what is essentially a political goal. He straightforwardly admits that it’s a growing field, and many have contributed to this area of research.

Boykoff admits that this area is “selling” or “pitching” the climate change narrative. While acknowledging it is a start, he has no problems with it. Seems the scientists have given up on the research area of climate science, and are throwing their resources into the marketing aspect.

It’s both nefarious and creepy.

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UN Global Taxation Efforts & Schemes

(Ways to raise money)

(Details of proposed global tax scheme)

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. It’s quite the rabbit hole, and this is just surface level.

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

1. Paris Accord Is All About Taxation

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

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.

2. 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.

3. UN Wants $400B In Global Taxation

(UN supports global tax to raise $400B)

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.

4. UN Eyeing Up African Pensions

(Pensions are also being eyed as a funding source)

(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. (See archive). 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.

5. UN Environment Programme (UNEP)

(UN Environment Programme)

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.

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

(Green finance for developing countries)

(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.

7. International Chamber Of Commerce

(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.

8. Addis Ababa Action Agenda

(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.

9. Global Tax Avoidance Measures

(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?

10. From Billions To Trillions (SF 2.0)

(Why stop at just billions?)

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.

11. 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.

(1) https://www.un.org/en/development/desa/policy/wess/wess_current/2012wess.pdf
(2) 2012.new.development.finance
(3) https://www.un.org/en/development/desa/policy/wess/wess_current/2012wesspr_en.pdf
(4) 2012, Call To Raise $400 Billion
(5) https://www.fsmgov.org/paris.pdf
(6) https://sustainabledevelopment.un.org/content/documents/2051AAAA_Outcome.pdf
(7) Addis Ababa Action Agenda
(8) https://iccwbo.org/publication/tax-united-nations-sustainable-development-goals/
(9) https://iccwbo.org/content/uploads/sites/3/2018/02/icc-position-paper-on-tax-and-the-un-sdgs.pdf
(10) http://unepinquiry.org/wp-content/uploads/2016/08/Green_Finance_for_Developing_Countries.pdf
(11) Green_Finance_for_Developing_Countries
(12) https://developmentfinance.un.org/international-efforts-combat-tax-avoidance-and-evasion
(13) https://www.un.org/en/africa/osaa/pdf/pubs/2017pensionfunds.pdf
(14) https://www.un.org/pga/72/wp-content/uploads/sites/51/2018/05/Financing-for-SDGs-29-May.pdf
(15) Financing-for-SDGs-29-May
(16) https://mnetax.com/un-releases-updated-model-tax-treaty-adding-new-technical-service-fees-article-27765
(17) “https://oecd-development-matters.org/2018/07/31/development-finance-2-0-from-billions-to-trillions/
(18) https://developmentfinance.un.org/sites/developmentfinance.un.org/files/FSDR2019_ChptII.pdf
(19) Financing for Sustainable Development 2019
(20) https://www.unepfi.org/about/
(21) https://www.uncdf.org/
(22) https://oim.unjspf.org/
(23) https://www.unfcu.org/home/
(24) https://uppitypeasants.home.blog/2019/08/10/fintech-for-sustainable-development-assessing-the-implications/
(25) https://canucklaw.ca/guest-post-sunrise-movement-and-the-green-new-deal/

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CCS #16: Dr. Shiva Ayyadurai On How The Carbon Tax Works

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

(Alternative explanation: Cosmic rays and the sun contribute far greater to climate change than does Carbon Dioxide)

(“Conservative” Garnett Genuis defends Paris Accord)

(UN Green Climate Fund)

(Getting rich off Carbon credits)

The first video explains plainly in the first video how the UN IPCC system works. It is all about generating revenue in order to use in creating climate bonds. The money is acquired through underhanded and deceptive means.

The second video offers a much more plausible explanation for variations in temperature: Cosmic rays and the sun. This half hour video gets into it.

Although Dr. Ayyadurai explains this from an American perspective, the issues are much the same in Canada. As such, it is very related to our situation.

It’s a shame that he ended up losing to Elizabeth Warren in the Senate race. Dr. Ayyadurai would have made a fine Senator. But Pocahontis (or Faux-cahontis) has name recognition and is able to run on that alone.

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 #15: UN exploring global taxation ideas.

CLICK HERE, for BOLD Like A Leopard Guest Posting.

2. Important Links

CLICK HERE, for the Paris Accord, full text.
CLICK HERE, for the UN Green Climate Fund.
CLICK HERE, for WEF explaining carbon credits and trading.
CLICK HERE, for a Forbes article explaining the carbon credit scheme..

3. Dr. Ayyadurai Video In Point Form

 

  1. (Pre-Carbon tax) Products are made
  2. (Post-Carbon tax) Products are still made. Now taxes charged.
  3. Carbon taxes are paid to UN IPCC, others
  4. UN IPCC issues “Carbon credits”. In essence, this is permission to “pollute”. Never mind that Carbon Dioxide isn’t pollution, but a natural byproduct of combustion, or even breathing. But anyway….
  5. So called “Carbon credits” actually go into the bond market, and allow the UN (and approved others) to use it as an investment vehicle. This is a trillion dollar industry.
  6. Former U.S. Vice President Al Gore once monopolized the market.
  7. UN IPCC used their PR branch (or propaganda arm) to pressure the US into playing ball with the Paris Accord, despite the obvious fraud.
  8. US pressured to create $100B “Green Fund”
  9. “Green Fund” used to bribe 190 other nations into joining Paris Accord, and thus legitimizing the UN scam. Odd wording here
  10. Advisors and NGOs who used US Green Fund money to influence joining of Paris Accord ended up enriching themselves in the process
  11. Scientists “alter” findings to make situation seem worse.
  12. Developing countries allowed to make situation worse. As an example, China puts out 11B tons/year now, and will be able to emit 22B tons in 2030.
  13. After 2030, China will be able to buy “Carbon credits”.
  14. UN paid “influencers” convince their nations to join Paris Accord
  15. Paying $100B to the influencers is pocket change, as the Carbon credit commodities market will generate trillions in the end. A great investment.
  16. This is really about virtue signalling.
  17. Environmental data manipulated to generate support.
  18. No conclusive evidence of temperature rise.
  19. 1st world nations will pay more for everything.
  20. 3rd world will (for years) be exempt.
  21. UN IPCC and allies are only ones who will benefit.
  22. Trump made right decision to pull out of Paris Accord.

Just 12 minutes in this video and Dr. Shiva Ayyadurai completely and thoroughly explained it. These Carbon taxes would end up in the UN, and go into the commodities market, generating trillions of dollars in revenue. The “Green Fund” is just a fund to bribe corrupt officials into playing along. And none of this would do anything to cut pollution.

One small criticism: it would have been nice to point out that Carbon Dioxide is not pollution. It is a naturally occurring compound. If it was reduced to zero, life would stop altogether.

However, in the other video provided, a sound and plausible explanation is offered. It is cosmic rays and solar activity that leads to significant variations in temperatures.

4. The Paris Accord: Articles 2, 4, 9

(Article 2)

1. This Agreement, in enhancing the implementation of the Convention, including its objective, aims to strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty, including by:

(c) Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.

(Article 4)

3. Each Party’s successive nationally determined contribution will represent a progression beyond the Party’s then current nationally determined contribution and reflect its highest possible ambition, reflecting its common but differentiated responsibilities and respective capabilities, in the light of different national circumstances.

4. Developed country Parties should continue taking the lead by undertaking economy-wide absolute emission reduction targets. Developing country Parties should continue enhancing their mitigation efforts, and are encouraged to move over time towards economy-wide emission reduction or limitation targets in the light of different national circumstances.

5. Support shall be provided to developing country Parties for the implementation of this Article, in accordance with Articles 9, 10 and 11, recognizing that enhanced support for developing country Parties will allow for higher ambition in their actions.

6. The least developed countries and small island developing States may prepare and communicate strategies, plans and actions for low greenhouse gas emissions development reflecting their special circumstances.

(Article 9)

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.

5. The Green Climate Fund

The Green Climate Fund (GCF) is a new global fund created to support the efforts of developing countries to respond to the challenge of climate change. GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change. It seeks to promote a paradigm shift to low-emission and climate-resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts.

It was set up by the 194 countries who are parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 2010, as part of the Convention’s financial mechanism. It aims to deliver equal amounts of funding to mitigation and adaptation, while being guided by the Convention’s principles and provisions.

When the Paris Agreement was reached in 2015, the Green Climate Fund was given an important role in serving the agreement and supporting the goal of keeping climate change well below 2 degrees Celsius.

Responding to the climate challenge requires collective action from all countries, including by both public and private sectors. Among these concerted efforts, advanced economies have agreed to jointly mobilize significant financial resources. Coming from a variety of sources, these resources address the pressing mitigation and adaptation needs of developing countries.

GCF launched its initial resource mobilization in 2014, and rapidly gathered pledges worth USD 10.3 billion. These funds come mainly from developed countries, but also from some developing countries, regions, and one city (Paris).

GCF’s activities are aligned with the priorities of developing countries through the principle of country ownership, and the Fund has established a direct access modality so that national and sub-national organisations can receive funding directly, rather than only via international intermediaries.

Source is right here.

To reiterate from before: the Paris Agreement isn’t really about reducing greenhouse gases. It is a way of extracting large sums of money from “polluters” in order to finance the UN’s various agendas.

While the website sounds well meaning enough, an important detail is left out: namely the huge profit that will be derived from using these funds. As such, the conflict of interest isn’t being disclosed.

6. A $100 Trillion Industry

This was addressed in a previous article. While the public is roped into supporting the agenda on humanitarian and compassionate grounds, the truth is quite different.

Climate bonds is an industry. It’s an industry that has potential for explosive growth, as long as governments keep pouring money into it.

The climate change agenda has nothing to do with protecting the environment. It is all about the “illusion” of protecting the environment. And money.

7. Carbon Credit Profiteering

Gore and Blood, the former chief of Goldman Sachs Asset Management (GSAM), co-founded London-based GIM in 2004. Between 2008 and 2011 the company had raised profits of nearly $218 million from institutions and wealthy investors. By 2008 Gore was able to put $35 million into hedge funds and private partnerships through the Capricorn Investment Group, a Palo Alto company founded by his Canadian billionaire buddy Jeffrey Skoll, the first president of EBay Inc. It was Skoll’s Participant Media that produced Gore’s feverishly frightening 2006 horror film, “An Inconvenient Truth”.

Still, the U.S. Government Accounting Office can’t figure out what benefits taxpayers are getting from those many billions of dollars spent each year on policies that are purportedly aimed at addressing climate change. A May 2011 GAO report noted that while annual federal funding for such activities has been increasing substantially, there is a lack of shared understanding of strategic priorities among the various responsible agency officials. This assessment agrees with the conclusions of a 2008 Congressional Research Service analysis which found no “overarching policy goal for climate change that guides the programs funded or the priorities among programs.“

As noted in the Forbes article, Al Gore has been able to become extremely wealthy with this scheme. Huge sums of money are taken as “Carbon taxes” and then plowed into the climate bonds industry.

While this hunger for Carbon taxes is spun as necessary for the planet, too little attention is paid to the profiteering that goes on behind it. It is difficult to take these pleas seriously when there is such a compelling profit motive.

And as the Government has noted, it’s very unclear what — if anything — taxpayers are actually getting in return for their money. It also isn’t obvious what goals or direction these programs are actually working towards.

The answer is very simple: the people running the scam want it to stay operational as long as possible. The goal is money, not ideology.

This is just one article. A quick internet search will reveal more details and examples of cashing in on this “environmental” agenda.

Either we tax countries for continuing to “pollute”, or we force them to shut down significant parts of their economy. Since the latter can’t happen without dropping the standard of living, it becomes necessary to pay up.

It’s like the mafia, except disguised as environmentalism.

8. Various UN Taxation Schemes

(A) New Development Financing: Carbon Tax Alone Could Generate $250/year, 2012
(B) UN: “Int’l Tax” To Raise $400B, 2012
(C) Paris Accord “Financial Flows”, 2015
(D) Addis Ababa, Financing Devel’t, 2015
(E) Green Financing, Sust Develop, 2016
(F) Leverage African Pension Plans, 2017
(G) Finance 2030 SDG, $5-7T Needed, 2018
(H) From Billions To Trillions, 2018
(I) Sustainable Financing Report, 2019
(J) UN Enviro Program, Finance Initiative
(K) Capital Development Finance

A few of these have been addressed in other articles. Please visit the “Climate Change Scam” section on the righthand toolbar.

This should alarm people. The UN is regularly coming up with new and innovative taxation methods. This is only a handful of them.

The Paris Accord is hardly an isolated cause.

9. Closing Thoughts On Subject

Dr. Shiva Ayyadurai is right regarding his explanation of the Paris Accord. It is an elaborate scam. While billions are pumped into climate funds, that is not the whole story. Those billions are then used to entice other nations to join the Paris Accord, thus giving it more legitimacy. The final goal is the trillions that can be gained later.

Furthermore, his explanation that cosmic radiation and solar activity play a greater role in fluctuating temperatures seems to make sense.

The Paris Accord has nothing to do with improving the environment either. All of its “mitigation” strategies are just talk. The Agreement is about generating large transfers of wealth on a continuous basis. Read the Agreement, in particular Article #9. The text leaves no doubt that money is the driving force behind it.

Climate bonds, and related “investments” are a huge industry, worth perhaps $100 trillion. This is the reason behind it all. So much opportunity. But the Carbon taxes (and other related fees), are entirely based on false pretenses.

The real losers are consumers and taxpayers, particularly from the developed world. These Carbon taxes (or “price on pollution” as claimed in Canada) will be used to funding for the UN IPCC and select allies to enrich themselves.

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Pensions #1(C): Canada Pension Plan, Where Is The Money Going?

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.

2. Important Links

CLICK HERE, for CPPIB Investing $2B In Mumbai, India.
CLICK HERE, for earlier piece on Canada Pension Plan.
CLICK HERE, for 2000 audit. $443B shortfall (Page 113)
CLICK HERE, for 2006 audit. $620B shortfall (Page 73). $67.9B added as of 2009.
CLICK HERE, for 2012 audit. $830B shortfall (Page 48)
CLICK HERE, for 2015 audit. $884B shortfall (Page 48)
CLICK HERE, for the 2019 CPPIB Annual Report.”

CLICK HERE, for getting your statement of earnings.
CLICK HERE, for CPP benefits for 2019 year.
CLICK HERE, for a generic investment calculator.

CLICK HERE, for a 2017 UN report on leveraging African pension funds for financing infrastructure development.
CLICK HERE, for 2019 report on development financing.
CLICK HERE, for closing infrastructure funding gap.

3. Obtain Your Statement Of Contributions

Any Service Canada should be able to help you apply for a copy of your statement of contributions. One tip is to do it after a tax assessment to get the most up to date information. You will need your social insurance number.

Also, you can request your statement by mail.
Contributor Client Services
Canada Pension Plan
Service Canada
PO Box 818 Station Main
Winnipeg MB R3C 2N4

Once you have received it, you will get a lot of new information you didn’t have before. Yes, I have mine from 2018, and am ordering a 2019 statement.

4. Information From Statement Of Contributions

A quote from the 2018 statement:

You and your employer each paid 4.95% of your earnings between the minimum of $3,500 and the maximum of $55,900 for 2018. These are called “pensionable earnings. Self employed individuals paid contributions of 9.9% on these amounts.
The maximum retirement pension at age 65 this year is $1,134.17 per month.

A few things to point out here:

You and your employer “both” paid 4.95% of your earnings between the minimum and maximum amounts. So if you made $25,000 then $21,500 of it would be taxable. Both you and your employer would have contributed $1,064.25 towards it. Combined is $2128.50.

Suppose you made over $55,900. Then $52,400 of it would have been taxable, and both you and the employer would have paid $2,593.80 into it. Combined is $5187.60.

Let address the elephant in the room. How much: (a) will CPP actually pay out for you; and (b) what would you make if you invested the CPP contributions yourself?

5. How Much Will CPP Pay Out For You?

Assuming retirement at age 65, and average life expectancy is 82. That gives 17 years, (204 months) of receiving pension contributions.

For the 2019 year, the maximum is listed as $1,154.58, and the average is $679.16. None of this covers Old Age Security (OAS) or Guaranteed Income Supplement (GIS). Those are separate and fall outside of CPP.

The average earner:
($679.16/month)X(17 year)X(12 month/year) = $138,540

The top earner:
($1,154.58/month)X(17 year)X(12 month/year) = $235,534

For simplicity, inflation is ignored, as is indexing of contributions.

6. Invest Your Own CPP Contributions

Yes, contributions and interest rates vary, but for simplicity, let’s keep them consistent.

For the top earner, let’s do this scenario:
(a) Worked for 40 years
(b) Contributed full amounts
(c) Invested at 8% annually.

Yes, the interest is absurd, but CPPIB claims that is what it is getting. In fact, CPPIB states that it gets 6.6-18% interest on its fun each year.

Over $1.3 million. That is what you would have after 40 years, making full contributions, assuming those contributions (both yours and the employer’s) were fully invested. A far cry from the $235,000 that you would make from 17 years of CPP payouts. Over a million more in fact.

Even just a 3% return — which is very doable — would net you $390,000 over those 4 years. Almost double what CPP would be paying out.

For an average earner, let’s try different numbers:
(a) Worked for 30 years
(b) Earned ~$30,000 annually contributed $2,970
(c) Invested at 6% annually.

$235,000 the person would have earned. This is about $100,000 more than simply taking the average payouts from Canada Pension Plan.

Why the different numbers? Perhaps the person took several years off for childcare. Perhaps there were years with low earnings. And 6% is a more realistic return, although good luck getting that from a bank. To repeat, CPPIB claims 6-18% returns (after costs) annually.

To be fair, people who go decades without working are unlikely to ever be able to save and invest the equivalent of what CPP is paying out.

For example, my own statement of contributions estimates if I were magically 65 today. With only a decade of work, I would be getting $317/month. Over the next 17 years that would pay out about $65,000, far more than I would have put in.

But long term and steadily employed workers get screwed.

7. Performance CPPIB Claims In Investments

This was addressed in the previous piece. In the CPPIB Annual Reports, the Board claims to have staggering growth year after year. Of the years listed, the interest ranges from 6% to 18%.

Year Value of Fund Inv Income Rate of Return
2010 $127.6B $22.1B 14.9%
2011 $148.2B $20.6B 11.9%
2012 $161.6B $9.9B 6.6%
2013 $183.3B $16.7B 10.1%
2014 $219.1B $30.1B 16.5%
2015 $264.6B $40.6B 18.3%
2016 $278.9B $9.1 6.8%
2017 $316.7B $33.5B 11.8%
2018 $356.B $36.7B 11.6%
2019 $392B $32B 8.9%

Also, as outlined in the last article, the accounting method used also changes how your pension plan comes across. You can select your data, and paint a rosy picture. Or you can take ALL assets and liabilities into account.

When the Canada Pension Plan was properly audited in 2016, it was found to have $884.2 billion in unfunded liabilities. The 2019 Annual report lists $392 billion as the value of the fund. However, with over a trillion dollars in liabilities, that illusion came crashing down.

$239 billion in growth over the last decade, an 11% annual increase. But in spite of that, CPP is not paying out retirees anywhere near what they have put in.

Why? Where is the money going?

8. CPP Unfunded Liabilities Swept Under Rug

Here are quotes from some of the actuarial reports. Interesting how they go out of their way to gloss over the truth about the CPP. In 2 of the reports, the total unfunded liabilities are reduced to a mere footnote.

Page 113 in 2000 audit. Actuarial liability 486,682M Actuarial value of assets 43,715 or 9%, Unfunded liability 442,967M or 91% of total. That’s right, ten times as many liabilities as assets.


Page 73 in 2006 audit report. $619.9B in unfunded liabilities. Updated in 2009 to reflect another $67.9B on the interest (just the interest) of those unfunded liabilities.


Footnote from 2012 audit. When the “closed-group approach” is used to audit the program, the assets are $175.1 billion, actuarial liability of the Plan is equal to $1,004.9 billion, and the assets shortfall is equal to $829.8 billion

Footnote from 2015 audit. Using “closed-group approach” to audit, the actuarial liability of the Plan is equal to $1,169.5 billion, the assets are $285.4 billion, and the assets shortfall is equal to $884.2 billion

Despite the glowing reviews our politicians give, the Canada Pension Plan is not doing well. In fact, it has close to a trillion dollars in unfunded liabilities. This is not sustainable in the slightest.

Younger workers will be paying into a system they have no realistic hope of ever collecting on. Not a good social safety net.

By now you are probably wondering these things:
The CPP, for most people, will never actually pay out anywhere near the amount that the person contributes over their lifetime. This is on top of the nearly 1 trillion shortfall that the plan has. So if the plan won’t pay out fully, and yet is so broke, where is the money going?

Who is running the show?

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

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.

10. CPPIB Board Members Well Connected

Heather Munroe-Blum

  • Principal and Vice Chancellor (President), McGill University
  • Current Director of the Royal Bank of Canada
  • Hydro One (Ontario)
  • Trilateral Commission

Ashleigh Everett

  • Former Director of The Bank of Nova Scotia
  • Premier’s Enterprise Team for the Province of Manitoba

William ‘Mark’ Evans

  • Former member of the Management Committee at Goldman Sachs
  • Co-founded TrustBridge Partners in China (2006)
  • Kindred Capital in Europe (2016)

Mary Phibbs

  • Standard Chartered Bank plc
  • ANZ Banking Group
  • National Australia Bank
  • Commonwealth Bank of Australia
  • Allied Irish Banks plc
  • Morgan Stanley Bank International Ltd
  • The Charity Bank Ltd

Tahira Hassan
Kathleen Taylor

  • Chair of the Board of the Royal Bank of Canada
  • Director of Air Canada since May 2016
  • Chair since April 2019 of Altas Partners

Karen Sheriff

  • United Airlines
  • Director of WestJet Airlines

Jo Mark Zurel

Not proof of any wrongdoing, but the board is certainly connected to other institutions.

11. CPPIB Holdings (Foreign & Domestic)

Here are CPPIB’s Canadian holdings.
Here are CPPIB’s foreign holdings.

$44M in from Power Corporation (Desmarais)
$17M in Hydro One Ltd (Heather Munroe-Blum is former board member)
$555M in RBC (Heather Munroe-Blum is board member)
$292M in Scotia Bank (Sylvia Chrominska is former chair)

In fairness, there are hundreds of companies CPPIB invests in. But always keeping an eye out for potential conflicts of interest.

But having all of these assets (both within Canada and abroad), doesn’t really explain the trillion dollar shortfall. There has to be something else that the CPPIB is wasting Canadian pensioners’ retirement savings on.

12. Pensions Sent For UN Development Projects?

Yes, this sounds absurd, but consider this report from the UN about using pensions to leverage development projects. True, this report refers to African pension funds. But it is entirely possible that Canada could get involved (or already be involved) in some similar scheme.

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.25 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.

Individual pension funds can be relatively large in some countries such as the Netherlands (ABP at $445.3 billion and PFZW at $189.0 billion) and the U.S. (CalPERS at $238.5 billion, CalSTRS at $166.3 billion, and the New York City Combined Retirement System at $150.9 billion). Similarly, PPRFs are relatively large in the U.S. (United States Social Security Trust Fund at $2.8 trillion) and Japan (Government Pension Investment Fund at $1.2 trillion). Among emerging markets, South Africa (Government Employees Pension Fund (GEPF) at $133.4 billion) and Brazil (Previ at $72 billion) have the largest funds in Africa and Latin America, respectively.

Pension funds can dedicate a share of their assets specifically to infrastructure. Such direct investment in infrastructure is implemented through equity investment in unlisted infrastructure projects (through direct investment in the project or through a private equity fund). Such investment can also take the form of debt investment in project and infrastructure bonds or asset-backed security. In contrast, pension funds can allocate a share of their funds indirectly to infrastructure through investment in market-traded equity and bonds. Listed equity investment can take the form of shares issued by corporations and infrastructure project funds while debt investment is often in the form of corporate market-traded bonds.

As is plain from the text, (Page 10), the UN views pensions as a potential investment vehicle for their agendas. And is clear from the pages in the reports, the UN has been sizing up pension funds from all over the world.

This is more than just an academic exercise

IV. OBSTACLES TO PENSION FUNDS INVESTMENT IN INFRASTRUCTURE
The extent to which pension funds can invest in infrastructure depends on the availability of assets in the pension system. Asset availability, in turn, is driven by a number of factors including the pension system’s environment, design, and performance. Even in a well-performing pension system with ample assets available for investments, the governance, regulation, and supervision of pension funds can restrict those funds’ ability to actually invest in infrastructure. If such constraints are lifted, then pension funds need to consider the risks of infrastructure projects and demand a fair, transparent, clear, and predictable policy framework to invest in infrastructure assets. Once this hurdle is overcome, pension funds will need adequate financial and capital market instruments to implement their investment decisions.

Simple enough (page 13). Lift the regulations, and the pension money will be free to flow to UN development projects. And after all, who knows better about spending other people’s money?

The endless foreign aid gestures that our government engages in: is that really our pension money being sent abroad?

We can see from Table 2 (Page 16) that the UN has been sizing up:

  1. Canada Pension Plan ($173B in assets)
  2. Ontario Municipal Employees ($62B in assets)
  3. Ontario Teachers’ Pension Plan ($128B in assets)
  4. Quebec Pension Plan ($39B in assets)

The recent OECD policy guidance for investment in clean energy, which is based on the PFI illustrates how policymakers can identify ways to mobilize private investment in infrastructure (OECD, 2015c). The policy guidance focuses on electricity generation from renewable energy sources and improved energy efficiency in the electricity sector, and provides a list of issues and questions on five areas of the PFI (investment policy, investment promotion and facilitation, competition policy, financial market policy, and public governance).

(Page 31) Clearly the UN is pushing its enviro agenda and suggesting that public pensions be used to finance at least part of it.

13. So Why Is CPP So Underfunded?

A number of factors most likely.

(A) Most pension plans are ponzi-style. In order to stay funded, it requires an ever growing number of contributors in order to pay off older contributors. Rather than having members who can sustain themselves, this is dependent on infinite growth.

(B) Although a person contributing to a pension in their career would “theoretically” be self-sufficient, it is clear the interest and gains are not what CPPIB pretends. If the fund was growing at 10%+ year over year, it would be different. We are not getting the full story.

(C) Public sector pensions are not sustainable either. So, very likely that some CPP money is being diverted to help cover the shortfalls.

(D) Due to political pressure, the powers that be find it more convenient to downplay the serious shortfalls rather than meaningfully address it. No political will to ask the hard questions.

(E) There has to be money going to outside projects, such as the UN plot to use pensions to fund their development agenda. The UN is a money pit, and the waste is probably enormous.

To repeat from the last post:
We are screwed.

Posted on

Pensions #1(B): Unsustainable, Underfunded, Takes Money Out Of Canada

(Canada Pension Plan Investment Board website)

(In 2019 Annual Report, the CPPIB claims that the fund is worth $392 billion as of March 31, 2019)

(2016, Chief Actuary claims CPP is sustainable)

(Ezra Levant of Rebel Media addresses CPP)

(Pension ponzi schemes explained)

1. More On Pension Plans/Funding

CLICK HERE, for #1: CPPIB invests $2B in Mumbai, India

2. Important Links

CLICK HERE, for Canada Pension Plan Investment Board (CPPIB).
CLICK HERE, for the 2019 CPPIB Annual Report.
CLICK HERE, for the 2018 CPPIB Annual Report.
CLICK HERE, for the 2017 CPPIB Annual Report.
CLICK HERE, for the 2016 CPPIB Annual Report.
CLICK HERE, for the 2015 CPPIB Annual Report.
CLICK HERE, for the 2014 CPPIB Annual Report.
CLICK HERE, for the 2013 CPPIB Annual Report.
CLICK HERE, for the 2012 CPPIB Annual Report.
CLICK HERE, for the 2011 CPPIB Annual Report.
CLICK HERE, for the 2010 CPPIB Annual Report.
CLICK HERE, for the 2009 CPPIB Annual Report.
CLICK HERE, for CPPIB reports on “SUSTAINABLE” investing.

CLICK HERE, for 2016 Triannual Report from Canada’s Chief Actuary.
CLICK HERE, for Chief Actuary’s 2016 Supplemental Report.
CLICK HERE, for information on Canada’s “Green Bonds”.
CLICK HERE, for a previous article on “green bonds.
CLICK HERE, for previous article, $2B in CPP funds sent to India.
CLICK HERE, for a Financial Post article suggesting CPP is being used to prop up public sector pensions.
CLICK HERE, for a Fraser Institute article on CPP unfunded liabilities.

CLICK HERE, for Office of the Superintendent of Financial Institutions, for sustainability of CPP. Using “closed door approach” there are $884.2B in unfunded liabilities. Turn to pages 46-50.

3. Glowing 2016 Press Release

The press release regarding, the Chief Actuary’s report on the sustainability of the Canadian Pension Plan.

Middle class Canadians are working harder than ever, but many are worried that they won’t have enough put away for their retirement. One in four families approaching retirement—1.1 million families—are at risk of not saving enough. That is why a stronger Canada Pension Plan (CPP) is a key part of the promise that the Government of Canada made to Canadians to help the middle class and those working hard to join it.

Today, Minister of Finance Bill Morneau tabled the Chief Actuary’s 28th Actuarial Report on the CPP in Parliament. The report confirms that the contribution and benefit levels proposed under the CPP enhancement agreed upon by Canada’s governments on June 20, 2016 will be sustainable over the long term, ensuring that Canadian workers can count on an even stronger, secure CPP for years to come.

On October 6, 2016, the Government of Canada delivered on its commitment to a stronger CPP with the introduction of legislation in Parliament to implement the agreement reached by Canada’s governments to enhance the CPP to give Canadians a stronger public pension that will help them retire in dignity.

This can’t really be taken at face value, as it is all self serving. The notice fails to even acknowledge the elephant in the room, which we will get into.

4. Quotes From Actuary’s 2016 Report

The Canada Pension Plan Investment Board (CPPIB) invests base CPP funds according to its own investment policies which take into account the needs of contributors and beneficiaries, as well as financial market constraints. It is expected that a separate investment policy will be developed by the CPPIB with respect to the additional CPP assets. Since at the time of the preparation of the 28th Report there is no such separate investment policy in existence, the real rate of return assumption was developed to reflect the financing objective of the additional Plan. As the actual CPPIB investment strategy for the additional CPP assets becomes known, it will be reflected in subsequent actuarial reports by revising the real rate of return assumption

This is a bit troublesome. It will become “known” to the public, or it will become “known” to the people doing the investments? (Page 15 of report.)

(Page 30 of report.) The CPPIB estimates that the percentage of base contributions from investment profits will creep up, and that the additional CPP will eventually become mostly funded from investment income by 2075.

The future income and outgo of the additional CPP depend on many demographic and economic factors. Thus, many assumptions in respect of the future demographic and economic outlook are required to project the financial state of the additional Plan. These assumptions impact the contribution rates, cash flows, amount of assets, as well as other indicators of the financial state. This section discusses the sensitivity of the minimum first and second additional contribution rates to the use of different assumptions than the best estimate.

Can’t fault the report for admitting it has to make assumptions. However, the trends of the current government are not great. Admitting large numbers of “refugees” who are and will remain a burden will not contribute to public coffers. Nor will vast amounts of seniors or others who won’t work. Furthermore, making industrial projects more difficult (Bills C-48 and C-69), means additional Canadians not working.

The actuarial projections of the financial state of the Canada Pension Plan presented in this report reveal that if the CPP is amended as per Part 1 of Bill C-26, the constant minimum first and second additional contribution rates that result in projected contributions and investment income that are sufficient to fully pay the projected expenditures of the additional Canada Pension Plan would be, respectively, 1.93% for the year 2023 and thereafter and 7.72% for the year 2024 and thereafter.

This report confirms that if the Canada Pension Plan is amended as per Part 1 of Bill C-26, a legislated first additional contribution rate of 2.0% for the year 2023 and thereafter, and a legislated second additional contribution rate of 8.0% for the year 2024 and thereafter, result in projected contributions and investment income that are sufficient to fully pay the projected expenditures of the additional Plan over the long term. Under these rates, assets of the additional Plan would accumulate to $70 billion by 2025, and to $1,330 billion by 2050.

No real surprise. The report concludes that the changes that the Government wants to bring in are exactly what are needed to make the plan sustainable.

5. CPPIB Claims Plan Sustainable Past 2090

Within this strategic framework, fiscal 2017 was a good year for CPPIB. Our diversified portfolio achieved a net return of 11.8% after all costs. Assets increased by $37.8 billion, of which $33.5 billion came from the net income generated by CPPIB from investment activities, after all costs, and $4.3 billion from net contributions to the CPP. Our 10-year real rate of return of 5.1%, after all CPPIB costs, remains above the 3.9% average rate of return that the Chief Actuary of Canada assumes in assessing the sustainability of the CPP. In his latest triennial review issued in September 2016, the Chief Actuary reported that the Base CPP is sustainable until at least 2090.

CPPIB toots its own horn, stating that the plan is sustainable at least until 2090. Page 5 is a quote from the 2017 annual report.

6. Quotes From 2019 CPPIB Annual Report

This is a graph included at the beginning of the report (page 3). It projects that by the year 2040, the Canada Pension Plan will have over $1.5 trillion in assets. This is in comparison to the $393 billion that there currently is.

It shows that actual assets have been higher than projected assets for the last 3 years.

The most recent triennial report by the Chief Actuary of Canada indicated that the CPP is sustainable over a 75-year projection period. Projections of the CPP Fund, being the combined assets of the base and additional CPP accounts, are based on the nominal projections from the 29th Actuarial Report supplementing the 27th and 28th Actuarial Reports on the Canada Pension Plan as at December 31, 2015.

The report shows a graph with projected assets. However, it doesn’t seem to address liabilities. Specifically, the pension contributions of much younger people who are paying into the system and are entitled to get it out when they retire.

This is impressive. Over the last decade, $239 billion has been added to the fund, an equivalent of 11% annual growth. Of course, one may be forgiven for asking why premiums are so high if it’s all just going into a government fund.

7. CPPIB Claims Fund Is Worth Billions

Note: The sources for this data is in all of the annual reports, going back a decade, which are linked up in SECTION 1.

Inv. Income refers to investment income. This is money CPPIB claims that the funds make annually. Notice the rate of return varies from 6-18%. That is money that CPPIB makes, not money that YOU will be making from the pension plan.

Year Value of Fund Inv Income Rate of Return
2010 $127.6B $22.1B 14.9%
2011 $148.2B $20.6B 11.9%
2012 $161.6B $9.9B 6.6%
2013 $183.3B $16.7B 10.1%
2014 $219.1B $30.1B 16.5%
2015 $264.6B $40.6B 18.3%
2016 $278.9B $9.1 6.8%
2017 $316.7B $33.5B 11.8%
2018 $356.B $36.7B 11.6%
2019 $392B $32B 8.9%

The value of the pension fund is skyrocketing? Isn’t it? Looking at the values from the annual reports, it has tripled in value in just a decade. This is incredible growth.

What then is the problem?

8. CPPIB Has Billions In Unfunded Liabilities

Not just billions, but hundreds of billions in liabilities.

While the CPPIB staff crow about how sustainable the system is, the Office of the Superintendent of Financial Institutions had a very different conclusion.

The Plan is intended to be long-term and enduring in nature, a fact that is reinforced by the federal, provincial, and territorial governments’ joint stewardship through the established strong governance and accountability framework of the Plan. Therefore, if the Plan’s financial sustainability is to be measured based on its asset excess or shortfall, it should be done so on an open group basis that reflects the partially funded nature of the Plan, that is, its reliance on both future contributions and invested assets as means of financing its future expenditures. The inclusion of future contributions and benefits with respect to both current and future participants in the assessment of the Plan’s financial state confirms that the Plan is able to meet its financial obligations over the long term1 2

What is the difference between open group basis and closed group basis?

The open group approach addresses assets and liabilities with respect to their expectations v.s. reality. The closed group approach, however, measures total assets and liabilities. And to see how much of a difference it makes, see the following two screenshots.

If you use the open group approach, everything looks fine. Reality comes very close to what you are expecting. However, the “closed group approach” takes everything into account, not just expectations.

Remember, when younger workers are paying into CPP, the organization has the money, but it isn’t theirs. It belongs to the workers, even if they won’t retire for 20, 30, or 40 years. The only way “open group approach” works is if the CPPIB had no intention of paying younger workers back.

All things considered, Canada Pension Plan is short $884.2 billion (as of 2016). This is if you don’t use selective accounting.

Paying off current obligations, by taking money from new people. Isn’t that how a ponzi scheme works? To be fair though, there is “some” investing done by CPPIB. It’s just that the bulk of the new money comes from the younger suckersworkers.

Guess this partially explains why all parties are so pro-mass-migration. Workers are needed to be shipped in to contribute deductions to fund the shortfall.

9. Is CPP Used To Prop Up Public Pensions?

As the federal and provincial governments continue discussing changes to the Canada Pension Plan, it is worth recalling that there are no public discussions of the most important pension issue in Canada: The unsustainable gap between the pensions of public servants and most everyone else. In fact, some critics maintain that the push to expand the CPP is driven by an unspoken need to prop up public-sector pension plans a little longer. However, doing so will only delay the inevitable overhaul of both the benefits and the funding of public-sector pensions.

The key issues surrounding public-service pension-plan benefits are mostly unspoken, both to their members and to taxpayers. Public-sector unions allow their members to believe the fiction that members contribute a fair share of their own retirement benefits, when really, the vast majority is funded by taxpayers. Few people appreciate how the CPP is folded into public-sector pension benefits: since benefits are “defined” in advance, an increase in CPP benefits reduces the amount that a public-sector pension needs to pay out to retired workers (leaving unchanged the total benefit payout to public-sector retirees). Meanwhile, taxpayers are kept in the dark about the full measure of unfunded future benefits they will have to pay, even as they shoulder more of the burden for their own retirement.

That is a theory floated over the years. Unfortunately, it gets difficult to prove given how CPPIB will not be honest about their $884.2 billion in unfunded liabilities. Their annual reports seem designed to conceal the truth.

An interesting argument though. If public sector union workers are retiring (or are retired), then they have likely been promised a good pension. However, if those union funds can’t cover it, would CPP be dipped into to make up the difference?

10. CPPIB “Invests” 85% Outside Of Canada

(From page 11 of the 2019 report)

Our 2025 strategy With two decades under our belt, CPPIB has hit its stride and truly knows its potential as a global active manager of capital. Last year, I wrote about the Board-approved strategic direction for CPPIB in 2025. Over this past year, we’ve continued to refine this 2025 strategy, and chart the course for the coming years.

Pillars of our 2025 plan include investing up to one-third of the Fund in emerging markets such as China, India and Latin America, increasing our opportunity set and pursuing the most attractive risk-adjusted returns. We have reoriented our investment departments to deliver on this growth plan, to manage a larger Fund and to achieve our desired geographic and asset diversification.

To ask the obvious question: why is the CPPIB so eager to plow its money into FOREIGN ventures? Wouldn’t putting the bulk of it into Canadian projects make more sense?

This is not just a return-on-investment issue. Plowing that money into Canadian industries would help Canadians, and help drive Canadian employment, would it not? This is supposed to be a “Canadian” pension fund.

(From page 13 of the 2019 report). The CPPIB expects that by 2050, nearly 1/2 of all income to the pension plan will be from interest and dividends on its portfolio

For reference, the fund value is calculated using this rough formula
Employee & Employer CPP Contributions + Fund Investment Returns – CPP payouts = Value

So how much of CPPIB investments are in Canada?

That’s right, just 15.5% in Canada. The other 84.5% is invested abroad. Where specifically is this money going?

(1) Midstream joint venture United States US$1.34 billion Formed a joint venture with Williams to establish midstream exposure in the U.S., with initial ownership stakes in two of Williams’ midstream systems.
(2) Grand Paris development Paris, France Formed a joint venture with CMNE, La Française’s majority shareholder, to develop real estate projects linked to the Grand Paris project, a significant infrastructure initiative in Paris.
(3) Ultimate Software United States Total value: US$11 billion Acquired a leading global provider of cloud-based human capital management solutions, alongside consortium partners Hellman & Friedman, Blackstone and GIC.
(4) CPPIB Green Bond Issuance Canada and Europe C$1.5 billion/€$1.0 billion First pension fund to issue green bonds in 10-year fixed-rate notes. Our inaugural Green Bond was a Canadian dollar-denominated bond, followed by a eurodenominated bond.
(5) ChargePoint United States Total value: US$240 million Invested as part of a funding round in preferred shares of ChargePoint, the world’s leading electric vehicle charging network.
(6) European logistics facilities Europe €450 million Formed a partnership with GLP and Quadreal to develop modern logistics facilities in Germany, France, Italy, Spain, the Netherlands and Belgium.

(7) Companhia Energética de São Paulo (CESP) São Paulo, Brazil R$1.9 billion Together with Votorantim Energia, acquired a controlling stake in CESP, a Brazilian hydro-generation company.
(8) Pacifico Sur Mexico C$314 million (initial) Signed an agreement alongside Ontario Teachers’ Pension Plan to acquire a 49% stake in a 309-kilometre toll road in Mexico from IDEAL.
(9) WestConnex Sydney, Australia Total value: A$9.26 billion Invested in WestConnex, a 33-kilometre toll road project in Sydney, alongside consortium partners Transurban, AustralianSuper and ADIA.
(10) Logistics facilities Korea Up to US$500 million Partnered with ESR to invest in modern logistics facilities in Korea.
(11) Challenger fund Australia and New Zealand A$500 million Partnered with Challenger Investment Partners to invest in middle-market real estate loans in Australia and New Zealand.
(12) Ant Financial China US$600 million Invested in Ant Financial, a company with an integrated technology platform and an ecosystem of partners to bring more secure and transparent financial services to individuals and small businesses.
(13) Renewable power assets Canada, U.S., Germany C$2.25 billion Acquired 49% of Enbridge’s interests in a portfolio of North American onshore wind and solar assets and two German offshore wind projects, and agreed to form a joint venture to pursue future European offshore wind investment opportunities.
(14) Berlin Packaging United States US$500 million Invested US$500 million in the recapitalization of Berlin Packaging L.L.C. alongside Oak Hill Capital Partners. Berlin Packaging is a leading supplier of packaging products and services to companies in multiple industries.

That’s right. Our Canadian pension fund is being used to prop up projects in: Australia, Belgium, Brazil, Germany, Italy, Mexico, the Netherlands, New Zealand, South Korea, Spain and the United States.

We won’t invest in Canadian industries, but we will bail them out. Great idea.

What about item #4, those green bonds?

11. CPPIB Endorses Climate Change Scam

So called green bonds are now available for sale. So state the obvious, if climate change were really a threat to humanity, then this is blatantly taking advantage of it.

Support for environmental companies or projects and clean technology is a strategic priority for EDC as demand rises for goods and services that allow for a more efficient use of the planet’s resources. Opportunities to create trade are abundant in this sector and Canada possesses a large pool of both established and emerging expertise in clean technology subsectors such as water and wastewater, biofuel, and waste to energy, to name a few.

Eligible transactions will include loans that help mitigate climate change with clean technology or improved energy efficiency. They also include transactions that specifically focus on soil, or help mitigate climate change. Our rigorous due diligence requirements ensure that all projects and transactions we support are financially, environmentally and socially responsible.

What happens when it becomes politically untenable for these globalist politicians to keep wasting taxpayer money on this hoax? Will it collapse? Will we have to perpetuate the lie in order to ensure that our “investments” don’t disappear?

Another factor that is reshaping the global investment environment is climate change. As a long-term investor, understanding environmental impacts on our investments is a key consideration and we continue to chart both the risks and opportunities stemming from climate change. This year, we launched our inaugural Green Bond, becoming the first pension fund to do so. We followed that with a euro-denominated offering. These issuances provide additional funding for CPPIB as it increases its holdings in renewables and energy-efficient buildings as world demand gradually transitions in favour of such investible assets.

(From Page 10 of the 2019 report.) Perhaps no one informed them that the climate change agenda is a scam, and has become a money pit.

This is hardly the first time that green bonds have come up. It will not be the last either.

When they say “risks and opportunities”, what are the opportunities? Will it be investing in a bubble that is sure to burst? Will it be taking advantage of desperate people?

Euro-denominated offerings? Why, is it a bigger market there?

12. What You Aren’t Being Told

The CPPIB admits that the bulk of its fund (around 85%) is actually invested outside of the country. That’s right, Canadians’ pension contributions being used to finance foreign investments. People assume that their money will be recirculated locally, but that is not the case.

CPPIB admits that it embraces the climate change scam. It goes as far as to endorse so-called “green bonds”. Again, this isn’t something the average person would know.

There is a credible case to be made that CPP funds are being used to top of public sector accounts, which are underfunded.

The CPP Investment Board intentionally distorts the truth about the unfunded liabilities. Using the OPEN GROUP approach, they show that actual assets are very close to expected assets, and they can cover their liabilities.

However, the more honest CLOSED GROUP approach will address “all” assets and liabilities, not just current ones. As it turns out, in 2016, the Canada Pension Plan had $285.4B in assets, and $1169.5B ($1.169.5 trillion) in liabilities. This works out to a $884.2B shortfall.

CPP is grossly underfunded.
CPP is being used to top up public pensions.
CPP is being invested in “green” schemes.
CPP is mainly being “invested” out of Canada.
CPP requires ever growing populations.
In short, we are screwed.