The Biggest Ponzi Scheme on the Planet-The U.S. Government
"American Economic Exceptionalism Explained"                     USAPonzi                                      by John W. White   Mar 29, 2013

Earning Imaginary Interest on Imaginary Money!
April 5, 2017   Emailed to WSJ/NYT/DMN on April 10, 2017


The following is an Op-Ed to "The Wall Street Journal", "The New York Times", and "The Dallas Morning News" that explains how imaginary bank deposits will earn imaginary interest on imaginary money that the U.S. Government has fraudulently borrowed from future Americans as the Federal Reserve raises interest rates. This should put an "afterburner" on the Ponzi scheme that I call USAPonzi.


The "news media" has an ethical responsibility to inform the general public of how the U.S. Government is committing fiscal and accounting fraud to cheat the general public and the rest of the planet so they can "feather their own nests" and "dramatically feather the nests of their upper-class friends".


Earning Imaginary Interest on Imaginary Money!
Putting an "Afterburner" on U.S. Government Fraud!

April 5, 2017


As my websites (www.usaponzi.net and www.usaponzi.com) and my book ("USAPonzi") explain, the U.S. Government is operating with a Ponzi scheme fiscal policy, that I call USAPonzi, that is creating imaginary-counterfeit money out of "thin air" by deferring public liabilities to the future Americans.


The U.S. Government does this by operating with Cash Accounting rather than the proper GAAP Accounting (Generally Accepted Accounting Principles). By deferring $105.7 Trillion of public liabilities (US Unfunded Liabilities (GAAP)) to the future Americans the U.S. Government has given the current Americans $105.7 Trillion of monopoly money. I call this monopoly money "imaginary-counterfeit money" because the U.S. Government imagines that the future Americans will eventually be able to pay these public liabilities but it is counterfeit because the future Americans can never pay these public liabilities. This is what makes a Ponzi scheme a Ponzi scheme. This is currency manipulation on steroids. The U.S. Government is borrowing imaginary-counterfeit money, $105.7 Trillion as of April 5, 2017, from the future Americans and is giving it to the U.S. upper class.


The U.S. Government is making the U.S. upper class very very rich, with imaginary-counterfeit money, by undertaxing the U.S. upper class and deferring the resulting public liabilities to the future Americans.


The rate at which this imaginary-counterfeit money is being created is determined by our GAAP basis deficit spending which in FY2017 is estimated to be $5.60 Trillion. This has created asset bubbles in all asset classes and it has dramatically increased the deposits in banks creating The Bank Bubble.


Now that the Federal Reserve has made the decision to raise the Fed Funds rate, banks will now be able to earn meaningful imaginary interest on these imaginary deposits. This should put an "afterburner" on USAPonzi. The global financial system will now be able to expand even faster as these imaginary bank deposits earn imaginary interest.


There is much discussion these days about how much we should lower the tax rate on the money in foreign countries as companies want to return this money to the U.S. for investments here. I find these discussions somewhat amusing as we are talking about whether or not we should tax the transfers of imaginary money in foreign banks so that we can make more imaginary deposits in American banks.


Most of the money in banks all over the planet is imaginary money that the U.S. Government has fraudulently borrowed from the future Americans or it is imaginary money that has been "earned" by investing this imaginary money.


All of this imaginary money will evaporate when USAPonzi implodes and it can evaporate in foreign banks just as easily as it can evaporate in American banks. When USAPonzi implodes, we will lose not only the $105.7 Trillion of imaginary-counterfeit money that the U.S. Government has borrowed from the future Americans but also the imaginary money that has been "earned" on this imaginary-counterfeit money. That is why I expect the implosion of USAPonzi to be so devastating to the entire global economy.


USAPonzi will implode when it becomes evident to the general public that the U.S. Government is being run by a bunch of cheaters that are borrowing faux money from the future Americans to enrich themselves and to colossally enrich the U.S. upper class.


The U.S. upper class is getting super rich for one reason and one reason only; the U.S. Government is borrowing imaginary-counterfeit money from the future Americans and giving it the U.S. upper class.

 

National Debt 
$19.9 Trillion 
Cash Deficit in FY2017 
$0.59 Trillion 
GAAP Deficit in FY2017 
$5.60 Trillion 
US Unfunded Future Liabilities 
$85.8 Trillion 
US Unfunded Liabilities (GAAP) 
$105.7 Trillion 
Imaginary-Counterfeit Money  $105.7 Trillion 
   Total National Assets  $130.3 Trillion 

Source: www.usdebtclock.org April 5, 2017


This U.S. Government fiscal and accounting fraud can only be equitably eliminated by the adoption of GAAP Accounting and a commitment to a balanced GAAP basis budget by the U.S. Government.


I have published a website www.usaponzi.net that explains how this fraud works to create a massive global wealth and income gap between the haves and the have-nots and to create false wealth and prosperity for the current Americans.


This is the biggest ($105.7 Trillion) financial fraud ever perpetrated, I call it "USAPonzi: The Ultimate Government Fraud" and it is "The Biggest Ponzi Scheme on the Planet"!


John W. White

Plano, TX