* dENSA SPOKANE
Like MENSA, Only Thicker

dENSA News Round Up

Spokane News

The City of Spokane is believed to be now facing a budget short-fall of $7 million, with some predicting this will grow to $9 million by the end of the year. Current begging efforts to get state and federal hand-outs will likely off-set part of the difference, but one time money will not solve the growing structural deficit that civic leaders have known about for years.

The Spokane Regional Solid Waste System, projected to lose $9 million this year, continues to run out of control.  The on-going performance audit of the regional system now appears to have been hijacked and is being run by the very people that were suppose to be the subject of the audit.

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A Letter from a member of the audit’s technical committee in response to attempts by city employees to suppress a consultant’s findings:

To all:

I think the language should stay as is. We paid CDM to take an outside look at our System, and that’s what they saw. We call ourselves a Regional System and ratepayers from the ENTIRE region are required to fund this System. It only makes sense that the assets should be regional.

Russ stated, “This is a very touchy political subject, and I see no benefit to this recommendation.” What Russ should have said is that he sees no benefit to the city of Spokane.

Craig Sullivan
Technical Work Group

P.S. I will repeat my comment from last week, “Wouldn’t this analysis be more credible if Russ Menke and the Regional System weren’t setting the agenda and manipulating its outcome? Can’t we find someone independent to interface with CDM?”

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A letter responding to a city council member regarding a pending recycling Request for Information:

Dear Councilman;

I was aware of this R.F.I. as of the last S.W.A.C. meeting, or maybe it was the last Liaison Board meeting when this was first mentioned.  I find it curious as the Regional Solid Waste System has rejected all cost saving suggestions and has further refused to even discuss the matter of recycling costs over the past four years. About a year ago Russ Menke promised the S.W.A.C. he would provide volume and cost information pertaining to the system’s recycling operations.   At the time Menke told the S.W.A.C. that the cost of recycling would shock us, but sufficient information upon which to base planning decisions has never been provided.  I suspect the system’s recycling operations are hemorrhaging cash.

The Chairman of the S.W.A.C. requested financial information for the last S.W.A.C. meeting, and Menke did provide a presentation; however, it was not considered reliable.  In addition to omitting recycling cost metrics, there was no reference to any system losses.  2009 losses are projected to be $9 million, but those projections were also omitted.  Staff typically shows financial information in a manner that masks losses by plugging in a cash reserve figure on what sort-of looks like the income statement.  I would be curious as to what the two on-going audits have to say about that practice.

I can look over the R.F.I., but will guess Menke already has decided what the system is going to do.  He will probably push through a single stream recycling facility requiring large consultant contracts, leading to a big capital expenditure for a large facility.  Expect built-in losses to follow.

Please advise if there is any specific action you would like me to take, but it looks like one more rigged city deal that honest people should stay clear of.  It is likely this will lead to the city getting one or two qualified bids as determined by conflicted city staff; no more, no less.

Best Regards,

Mike Noder

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Washington News

C-NBC reported the Washington State 2010 budget gap is the 11th largest in the nation at $3.645 billion.  This is 19.9% of the general fund, up from a projected 6.9%  for 2009.

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National News

Deficits, Deficits, Deficits…..and continued massive government intervention expected.

Do not worry comrades! The government is here to help!

Perhaps the government will intervene to ensure a national supply of vodka, so we can all drink to forget about our nation’s perilous collapse into Marxism, economic stagnation, and declining living standards.

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World News

Here is a story dENSA would like to know more about:

The Mysterious Case of $134 Billion in Seized Bearer Bonds

by morning 40oz~NeoRadical, from sodahead.com

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The US media has been generally silent about $134 billion in bearer bonds seized by Italian police at the Swiss border. On June 8, AsiaNews reported:Italy’s financial police (Guardia italiana di Finanza) has seized US bonds worth US 134.5 billion from two Japanese nationals at Chiasso (40 km from Milan) on the border between Italy and Switzerland. They include 249 US Federal Reserve bonds worth US$ 500 million each, plus ten Kennedy bonds and other US government securities worth a billion dollar each.Italian authorities have not yet determined whether they are real or fake, but if they are real the attempt to take them into Switzerland would be the largest financial smuggling operation in history; if they are fake, the matter would be even more mind-boggling because the quality of the counterfeit work is such that the fake bonds are undistinguishable from the real ones.Karl Denninger has been following the story, and it appears to be true that this vast sum was, in fact, seized.It is a mystery why the story is receiving coverage in Europe and Asia, but not in the US. Rumors have been swirling about possible involvement of the Japanese, Chinese, and/or Korean governments, with the last being more likely if the bonds are counterfeit. Whether real or fake, the apparent fact of the smuggling raises all kinds of questions, with no easy answers. Mr Denninger applies his considerable intelligence to the matter, in Sherlock Holmes fashion:

You’re not going to walk into a bank with $130 billion in bearer bonds and cash them. Nor are you going to sell a bond with a $500 million face value to someone without them authenticating it. They will be authenticated before you get one dime out of them – no matter who you think you’re going to “give” them to.

So if they’re fakes and you’re “just screwing around”, there is no reason to hide them. Nor is there any particular reason to have authentic and recent original bank documents in your luggage with them, as has been reported.

…Ok, who has $130 billion in bearer bonds? Remember, bearer instruments haven’t been issued by the Treasury since 1982, when they became illegal to issue, at least to US institutions and residents (there was an exception carved out for Treasury instruments issued to non-US residents in 1985 – a time of high deficits) The answer to that question: it is rather unlikely that there remains $130 billion of legitimate US Bearer issuance outstanding anywhere – to anyone.

Denninger goes on to consider a number of possibilities, all unlikely, then quotes Holmes: “once you eliminate the impossible, whatever remains, however implausible, must be the truth.”

Are we willing to assume that all the “issue” of Treasury bonds has been done “above board” as required by law. If Treasury has been surreptitiously issuing bonds to, say, Japan, as a means of financing deficits that someone didn’t want reported over the last, oh, say 10 or 20 years, then the following is about to occur: (graphic of sh*tstorm).

This is a fascinating story, assuming it’s true. The Italian government can, by law, keep 1/3 of the amount as a statutory penalty for smuggling. In any case, there is something very strange going on, whether or not the bonds are real (which seems likely considering the difficulty in cashing a fake $500 million bond). What does seem likely is that someone was doing something underhanded with an enormous amount of money. But what?

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A New National Anthem?

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Spokane Events

Spokane Indians Home Opener:  June 20th

4th of July Tea Party Details at:  http://northwestteaparty.org/

20th Anniversary of the Spokane Hoop-fest June 27th and 28th http://www.spokanehoopfest.net

Mariners: http://seattle.mariners.mlb.com/index.jsp?c_id=sea

dENSA Will Visit Flamin Joes Wednesday, June 24th.

(the new one on North Division where the Old European used to be just south of Costco)


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