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.

CCS #15: UN Global Taxation Efforts & Schemes

(Ways to raise money)

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

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

(UN supports global tax to raise $400B)

(Details of proposed global tax scheme)

(Pensions are also being eyed as a funding source)

(UN Environment Programme)

(Green finance for developing countries)

(International Chamber of Commerce)

(Addis Ababa Action Agenda)

(Global tax avoidance measures)

(Why stop at just billions?)

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

1. Debunking The Climate Change Scam

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

CLICK HERE, for BOLD Like A Leopard Guest Posting.

2. Important Links

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

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

3. Paris Accord Is All About Taxation

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

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

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

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

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

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

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

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

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

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

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

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

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

4. New Development Finance, Bait-and-Switch

Okay, what are these “revenue sources”?

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

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

What does the report say about SDAs?

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

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

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

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

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

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

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

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

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

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

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

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

5. UN Wants $400B In Global Taxation

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

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

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

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

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

6. UN Eyeing Up African Pensions

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

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

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

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

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

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

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

7. UN Environment Programme (UNEP)

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

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

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

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

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

Uppity Peasants has an interesting take on the UNEP.

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

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

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

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

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

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

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

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

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

Some interesting points here:

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

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

9. International Chamber Of Commerce

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

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

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

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

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

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

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

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

10. Addis Ababa Action Agenda

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

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

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

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

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

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

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

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

11. Global Tax Avoidance Measures

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

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

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

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

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

12. From Billions To Trillions (SF 2.0)

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

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

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

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

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

13. What To Make From All This?

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

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

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

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

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

Free Trade #4: The Trans-Pacific Partnership, Bill C-79

(Government link for TPP, now referred to as CPTPP)

(Canada’s Bill C-79, October 2018)

1. Offshoring, Globalization, Free Trade

CLICK HERE, for #1: thoughts on potential free trade with China.
CLICK HERE, for #2: NAFTA, lawsuits, job losses, sovereignty.
CLICK HERE, for #3: looking at NAFTA’s hidden/ignored costs.

2. Important Links

CLICK HERE, for Bill C-79.
CLICK HERE, for the Government website on CPTPP

CLICK HERE, for EPI study: 3.4 million jobs lost between 2001 and 2017 due to liberalized trade with China.
CLICK HERE, for EPI study: 879K jobs lost due to NAFTA.
CLICK HERE, for EPI study: free trade drives down wages.
CLICK HERE, for EPI study: free trade and trade deficits.

Note: After the US withdrew from the agreement, it was renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

3. Trading Partner Brunei, Stoning Gays

On a side note, Brunei, a small nation governed by Islamic law, announced it would stone gays to death in accordance with religious law. It seems extremely hypocritical for the virtue-signalling Prime Minister Trudeau to have such a trading partner. However, under public pressure, Brunei has apparently backed down from the measure.

4. Portions Of Bill C-79

Causes of action under sections 9 to 13
.
8 (1) No person has any cause of action and no proceedings of any kind are to be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of sections 9 to 13 or an order made under those sections.

Causes of action under Agreement
.
(2) No person has any cause of action and no proceedings of any kind are to be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of the Agreement.
.
Exception
.
(3) Subsection (2) does not apply with respect to causes of action arising out of, and proceedings taken under, Section B of Chapter 9 or Article 11.‍22 of the TPP.

Right away is a red flag. If you are a private party, there may be instances where litigation is required to protect your interests (from unfair trade practices perhaps). However, the wording makes it clear that legal action is not possible here unless the Attorney General signs off on it.

As for the exceptions, Chapter 9, Section B refers to disputes among investors, and encourages the parties to resolve the problems themselves. Article 11.22 outlines dispute mechanisms for financial services.

Payment of expenditures
.
12 The Government of Canada is to pay its appropriate share of the aggregate of
(a) any expenditures incurred by or on behalf of the Commission,
(b) the general expenses incurred by the committees, working groups and other bodies established under the Agreement and the remuneration and expenses payable to representatives on the Commission and those committees and to members of those working groups and other bodies, and
(c) the expenses incurred by panels and arbitration tribunals established under the Agreement and the remuneration and expenses payable to the panellists on those panels, to arbitrators and to any experts retained by those panels or arbitration tribunals.

Not only will Canada be forced to pay its “share” for Commission expenses, but will in effect pay to set up an alternative quasi-judicial system. Not only will Canada have to pay for that, but legal and expert expenses, and any judgements awarded against.

Orders — Article 28.‍20 of TPP
.
13 (1) The Governor in Council may, for the purpose of suspending benefits in accordance with Article 28.‍20 of the TPP, by order, do any of the following:
(a) suspend rights or privileges granted by Canada to another party to the Agreement or to goods, service suppliers, investors or investments of investors of that party under the Agreement or any federal law;
(b) modify or suspend the application of any federal law, with respect to a party to the Agreement other than Canada or to goods, service suppliers, investors or investments of investors of that party;
(c) extend the application of any federal law to a party to the Agreement other than Canada or to goods, service suppliers, investors or investments of investors of that party; or
(d) take any other measure that the Governor in Council considers necessary.

The Governor in Council can apparently:

  • Suspend rights or privileges
  • modify or suspend application of Federal law
  • extend Federal law to others not previously included
  • Do anything else deemed necessary

Without clarification or at least guidance of the topic, this is extremely vague. Worse, is the Governor in Council can make these changes without requiring consent of the public.

Most of the rest of the Bill goes into detail about how tariffs on many different items will be reduced to zero.

However, like with most free trade agreements, Bill C-79 does not address an important topic: protection of jobs for people at home. That will be addressed later.

5. Sections Of CPTPP Text

While the agreement is very long, let’s look mainly at Article 9, as it has some of the more unsettling information in it. To be blunt, it removes nations’ abilities to protect their people from foreign competition. The downside to free trade.

Article 9.4: National Treatment
1. Each Party shall accord to investors of another Party treatment no less favourable than that it accords, in like circumstances, to its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory.
2. Each Party shall accord to covered investments treatment no less favourable than that it accords, in like circumstances, to investments in its territory of its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments.
3. For greater certainty, the treatment to be accorded by a Party under paragraphs 1 and 2 means, with respect to a regional level of government, treatment no less favourable than the most favourable treatment accorded, in like circumstances, by that regional level of government to investors, and to investments of investors, of the Party of which it forms a part.

This is basically the same language used in NAFTA, where no preference could be given to host countries. In short, it doesn’t matter if another party can outbid and outcompete you. Terms just as favourable must be given.

Article 9.5: Most-Favoured-Nation Treatment
1. Each Party shall accord to investors of another Party treatment no less favourable than that it accords, in like circumstances, to investors of any other Party or of any non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory.
2. Each Party shall accord to covered investments treatment no less favourable than that it accords, in like circumstances, to investments in its territory of investors of any other Party or of any non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments.
3. For greater certainty, the treatment referred to in this Article does not encompass international dispute resolution procedures or mechanisms, such as those included in Section B (Investor-State Dispute Settlement).

This is much the same idea. If you treat a non-party (someone outside the agreement) a certain way, then a party within the agreement must get at least the same, if not better, treatment.

A bit misleading is the use of the term investment. Most people think of stocks and bonds as investments. While true, this agreement considers basically anything to be an investment. Here is a quote from the definitions section of Article 9.

investment means every asset that an investor owns or controls, directly or indirectly, that has the characteristics of an investment, including such characteristics as the commitment of capital or other resources, the expectation of gain or profit, or the assumption of risk. Forms that an investment may take include:
(a) an enterprise;
(b) shares, stock and other forms of equity participation in an enterprise;
(c) bonds, debentures, other debt instruments and loans;
(d) futures, options and other derivatives;
(e) turnkey, construction, management, production, concession, revenue-sharing and other similar contracts;
(f) intellectual property rights;
(g) licences, authorisations, permits and similar rights conferred pursuant to the Party’s law; and
(h) other tangible or intangible, movable or immovable property, and related property rights, such as leases, mortgages, liens and pledges,

Beyond the traditional sense of investments there is more. Any business itself, business contracts, property, or tangible or intangible items are also considered investments.

And what about countries wanting to nationalise (take public ownership), of their “investments”? Remember, under the definition provided, an investment is pretty much anything.

Article 9.8: Expropriation and Compensation
1. No Party shall expropriate or nationalise a covered investment either directly or indirectly through measures equivalent to expropriation or nationalisation (expropriation), except:
(a) for a public purpose
(b) in a non-discriminatory manner;
(c) on payment of prompt, adequate and effective compensation in accordance with paragraphs 2, 3 and 4; and
(d) in accordance with due process of law.
2. Compensation shall:
(a) be paid without delay;
(b) be equivalent to the fair market value of the expropriated investment immediately before the expropriation took place (the date of expropriation);
(c) not reflect any change in value occurring because the intended expropriation had become known earlier; and
(d) be fully realisable and freely transferable.
3. If the fair market value is denominated in a freely usable currency, the compensation paid shall be no less than the fair market value on the date of expropriation, plus interest at a commercially reasonable rate for that currency, accrued from the date of expropriation until the date of payment.
4. If the fair market value is denominated in a currency that is not freely usable, the compensation paid, converted into the currency of payment at the market rate of exchange prevailing on the date of payment, shall be no less than:
(a) the fair market value on the date of expropriation, converted into a freely usable currency at the market rate of exchange prevailing on that date; plus
(b) interest, at a commercially reasonable rate for that freely usable currency, accrued from the date of expropriation until the date of payment.

This actually does make some sense, as it provides some protections to companies and insures that their property won’t just be converted into the government’s.

However, the wording is such that any legitimate measures a nation might make to go about its business might be construed as “expropriating” or as “nationalising”. The language seems worded poorly on purpose.

And it doesn’t mention that nations have legitimate interests in protecting the jobs of its people, and the local economy. Governments are supposed to protect their people first and foremost.

Article 9.9: Transfers
1. Each Party shall permit all transfers relating to a covered investment to be made freely and without delay into and out of its territory. Such transfers include:
(a) contributions to capital;
(b) profits, dividends, interest, capital gains, royalty payments, management fees, technical assistance fees and other fees;
(c) proceeds from the sale of all or any part of the covered investment or from
the partial or complete liquidation of the covered investment
;
(d) payments made under a contract, including a loan agreement;
(e) payments made pursuant to Article 9.7 (Treatment in Case of Armed Conflict or Civil Strife) and Article 9.8 (Expropriation and Compensation); and
(f) payments arising out of a dispute.

Pull the covered investments freely and without delay? Again, almost anything is an investment under this agreement. This actually has the potential to do serious harm. Businesses wishing to leave could pull all of their “investments” and drain the country of its wealth quite quickly.

Article 9.11: Senior Management and Boards of Directors
1. No Party shall require that an enterprise of that Party that is a covered investment appoint to a senior management position a natural person of any particular nationality.
2. A Party may require that a majority of the board of directors, or any committee thereof, of an enterprise of that Party that is a covered investment, be of a particular nationality or resident in the territory of the Party, provided that the requirement does not materially impair the ability of the investor to exercise control over its investment.

This ignores a basic reality. People are loyal first and foremost to their homes and their tribes. Do people want a bunch of foreigners, with in-group preference for their homelands to be controlling so much? Probably not, but free trade deals do not deal with nations, but “economic zones”.

Inserting a condition that it not “materially impair” is vague and open to interpretation. As such, it seems almost worthless.

Article 9 is the most troubling in the agreement. But it is worth addressing one point in Article 28, which covers dispute resolution.

Article 28.4: Choice of Forum
1. If a dispute regarding any matter arises under this Agreement and under another international trade agreement to which the disputing Parties are party, including the WTO Agreement, the complaining Party may select the forum in which to settle the dispute.
2. Once a complaining Party has requested the establishment of, or referred a matter to, a panel or other tribunal under an agreement referred to in paragraph 1, the forum selected shall be used to the exclusion of other fora.

An interesting detail, parties filing complaints can shop around. There is no fixed place to do so. While this sounds fine on the surface, such could be open to gaming the system.

6. Potential For Huge Job Losses

Companies close down and new ones start up. That is normal in a capitalist society. However, free trade deals in general pose a complication. When it becomes more advantageous (ie “cheaper”) to produce a good in another country, there is always a risk. What will stop a company from closing down, laying off all its staff, and relocating in the foreign nation? Legally, nothing, at least in many cases.

The previous pieces on NAFTA addressed some on the downsides to free trade deals. The CPTPP would likely cause the same sorts of issues.

Let’s use the United States as an example. It lost 3.4 million jobs to China between 2001 and 2017 due to “liberalized trade”. Further, another 879,000 jobs have been lost as a direct result of NAFTA.

Beyond the direct job losses, trade deals have the effect of driving down wages. This is especially true for manufacturing jobs, which are traditionally well paid. The reason is leverage. If a company can threaten to relocate in order to pay its (new) workers much less, then current employees can be forced to accept significantly less compensation. One reason tariffs are applied to goods is to counter the vast discrepancies that can exist between nations.

In very lopsided trading arrangements, the benefits are not equal. Again, referring to the US, trade deficits can balloon very quickly. While some surplus or deficit is inevitable, the trading relations cannot continue unless the parties benefit fairly equally. Large trade deficits drain wealth from a nation. This is money being taken out of the country and not being spent on people here.

The CPTPP addresses NONE of these issues. Is this a form of protectionism? Yes, and there’s nothing wrong with that.

7. Conclusions Regarding C-79 & CPTPP

NAFTA was tricky enough, even with just 3 nations, all on one continent. CPTPP has more, and it covers a much larger geographic area. The wealth discrepancies are even larger.

While this is touted as an economy growth tool, the CPTPP doesn’t indicate at all how the citizens will benefit. Under the “National Treatment” provisions, foreigners must be given the same considerations as locals. If it becomes more economical to lay off people and move assets, then it’s done. There can be no protection for locals, which is what a government should be doing.

Free trade agreements tend to create a “race to the bottom”. If it becomes more profitable to ship work and jobs to another country, it is done. Locals will have to accept far less in order to compete, driving down their standards of living.

Communities benefit when there is work and wealth. Exporting it for overall economic growth is cold, and reduces people to mere cogs in a machine.

Difficult to see how average people will benefit from CPTPP.

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.

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

1. More On Pension Plans/Funding

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

2. Important Links

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

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

3. Quotes From 2010 Policy Guide

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

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

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

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

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

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

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

4. CPPIB’s So-Called “Focus Areas”

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

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

5. CPPIB Starts Issuing “Climate Bonds”

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

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

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

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

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

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

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

6. Human Rights As Business Perspective

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

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

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

7. Sustainable Financing Report For 2018

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

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

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

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

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

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

8. Why Involve Our Pensions In This?

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

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

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

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

(Social Security Administration)

(2019 Annual Report to Congress)

(Signatories to the 2019 report)

1. More On Pension Plans/Funding

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

2. Important Links

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

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

3. Side Note On Signatories

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

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


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

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

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

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

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

5. The Approach Explained in 2018 Paper

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

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

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

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

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

6. Quotes From 2019 Report

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

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

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

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

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

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

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

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

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

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

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

7. Getting An Answer On Unfunded Liabilities

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

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

8. Why Not Reform Or Privatize?

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

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

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

The article is blunt about the situation.

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

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

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

Yes, it’s a government run Ponzi scheme.

9. Government Pensions Are Ponzi Schemes

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

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

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

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

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

Same conclusion as before: Americans are pretty screwed.