America is living on its Credit Card!
November 20, 2016
The United States of America is living on its credit card and the current balance due is $104.2 Trillion.
The United States of America made the decision to start living on its credit card in January of 1968 when the U.S. Congress adopted the "Unified Budget" that was proposed by Lyndon Baines Johnson so that he could claim to balance the FY1969 budget. The fiscal policy that the U.S. Government adopted with the "Unified Budget" has produced a massive U.S. Government fraud.
The U.S. Government is corrupt! The United States of America is a fraud! The senior officials of the U.S. Government are criminals. The U.S. Government has committed the biggest crime in the history of the planet! The U.S. Government is operating "The Biggest Ponzi Scheme on the Planet"!
I call this Ponzi scheme "USAPonzi" and it is "The Ultimate Government Fraud"! A $104.2 Trillion fraud! The U.S. Government has borrowed $104.2 Trillion from the future Americans and given it to the current Americans.
The U.S. Government tries to conceal this fraud by assessing and reporting its financial condition with Cash Accounting rather than using Generally Accepted Accounting Principles (GAAP Accounting). The U.S. Government requires that public companies use GAAP Accounting to avoid exactly the kind of accounting fraud that the U.S. Government itself is committing.
The Sarbanes-Oxley Act of 2002 (SOX) is an act passed by U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations. The SOX Act mandated strict reforms to improve financial disclosures from corporations and prevent accounting fraud.
The following tables demonstrated how the U.S. Government is attempting to conceal this fraud.
|US Federal Tax Revenue (Cash)
|US Federal Spending (Cash)
|Cash Deficit in FY2017
|US Federal Spending (GAAP)
|GAAP Deficit in FY2017
|US Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|Total National Assets
Source: www.usdebtclock.org November 20, 2016
|Deficit in FY2017
||US Unfunded Liabilities
The U.S. Government is dramatically understating both its deficit and its public liabilities by reporting its financial condition with Cash Accounting rather than the proper GAAP Accounting. The U.S. Government has already put $104.2 Trillion on its credit card, that is to be paid by future Americans, and is borrowing $15.5 Billion more every day (GAAP Deficit in FY2017 $5.67T/365 = $15.5B). I call the money that the U.S. Government has borrowed/stolen from the future Americans "imaginary-counterfeit money" because the U.S. Government likes to pretend/imagine that the future Americans can pay these public liabilities so it is imaginary money but the future Americans cannot pay it so it is counterfeit money; hence the name imaginary-counterfeit money (See The Concept of Imaginary-Counterfeit Money).
The U.S. Government is committing fraud by borrowing unpayable money from the future Americans and giving this money to the current Americans.
The United States of America appears to be "Getting Rich from U.S. Government Fraud".
The United States of America is living on the giant credit card of the future Americans and has a current balance due of $104.2 Trillion. Most of the stuff we have bought, built, and consumed over the last 48 years has been purchased with imaginary-counterfeit money that the U.S. Government has fraudulently borrowed from the future Americans.
Let me say that one more time.
Most of the stuff we have bought, built, and consumed over the last 48 years has been purchased with imaginary-counterfeit money that the U.S. Government has fraudulently borrowed from the future Americans (See Filling the Planet with Junk!).
The U.S. Government has borrowed $104.2 Trillion of imaginary-counterfeit money from the future Americans, which is 31 times its income of $3.30 Trillion ($104.2T/$3.30T=31.6) and is spending $8.97 Trillion (GAAP basis) in FY2017, which is nearly 3 times its income ($8.97T/$3.30T=2.72). The U.S. Government has made financial commitments it cannot possibly keep and is therefore technically bankrupt (See The Bankruptcy of the United States).
Another very serious problem is that much of the U.S. Government current income (tax revenue) is derived from economic activity that is artificially produced by USAPonzi. Americans are getting paid larger paychecks because of USAPonzi and are therefore paying more income tax. Investors are paying more capital gains taxes because the stock market is going up because of USAPonzi. Companies are paying more income tax because they are making more profit because of USAPonzi.
This fraud is explained in CliffsNotes format (USAPonzi CliffsNotes) and is also explained in much more detail on my website www.usaponzi.com and in my book “USAPonzi” which is available on Amazon in Kindle and Paperback formats and on my website in PDF format.
This is the biggest ($104.2 Trillion) financial fraud ever perpetrated; I call it “USAPonzi: The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”.