Understanding the pension audit

A few days ago, I published a piece that began to address a concern for me:

Could Cheshire get Madoff-ed?

The first concern for me was to determine if the auditors used in relation to the Town's pension fund were legit. And without doing a real investigation, they seem reasonably legitimate.

But even if you're a legitimate CPA, you still rely on certain principles.

You may have heard of Generally Accepted Accounting Principles? Commonly referred to as GAAP, any CPA relies on such principles to offer an opinion. And in years past, I'd say you could simply rely on "everything being fine." But we no longer live in that world. We now live in the world of CDS, MBS, CDO and ARS.

And now I see this in relation to our pension:

Huh?

What's Regulation 4.7? What's this "exemption from certain regulatory requirements?"

Frankly, I'm not sure if it's a big deal or not. I need to research it further. But I do know that the current regulatory structure over banking and investing is far too complicated. I suggest it get simplified:

Eliminate fiat money, fractional reserve banking and The Fed.

Tim White