USAPonzi-The Biggest Ponzi Scheme on the Planet-The U.S. Government

                    Copyright Declaration                                                                                                                                       John W. White    March 29, 2013

Happy New Year USA!  You just got a pay raise!
USAPonzi just turned 46 today!
The U.S. Government now has $17.9T of Real Debt and $80.2T of Virtual Debt!!!
Oct 1, 2014
As posted on


The 2015 fiscal year starts today October 1, 2014 and will run thru September 30, 2015.  So Happy New Fiscal Year America.  And Happy 46th Birthday to USAPonzi.  The U.S. Government has now agreed to a continuing resolution that will assure that USAPonzi will continue to operate as we begin FY2015.  This means that we will continue to use corrupt and fraudulent Cash Accounting and that USAPonzi will continue to covertly undertax the U.S. citizens and businesses with real but unreported GAAP basis Deficit Spending.

The following table was extracted from the USAPonzi Fiscal Model which shows the difference between the Government's corrupt and fraudulent Cash Accounting and GAAP Accounting.

                                                                  Actual      Estimated     Projected
                                                                 FY2013      FY2014        FY2015
                                   Cash Spending       $3.5T          $3.7T           $3.9T
                                                Income       $2.8T          $3.0T           $3.1T
                                        Cash Deficit    $0.68T        $0.55T         $0.82T
              Annual Chg in Soc Ben Com       $5.5T          $5.7T           $6.1T
                                  GAAP Spending       $9.0T          $9.4T         $10.0T
                                                Income       $2.8T           $3.0T           $3.1T
                                      GAAP Deficit      $6.2T           $6.4T           $6.9T
                                           Cash Debt    $16.7T         $17.7T         $18.3T

                             Unfunded Liabilities     $75.0T         $80.3T         $86.4T
                                GAAP Obligation    $91.7T         $98.1T       $104.7T
                   GAAP Spending/Income        3.2               3.1               3.3

GAAP Spending = Cash Spending + current year change in social benefit committments.
GAAP Obligation = Cash Debt + Unfunded Liabilities.
GAAP Spending is more that three times our Income.

Table 1:  Cash Accounting vs. GAAP Accounting FY2013-FY2015 

By using Cash Accounting, the U.S. Government does not report the accruing liabilities for the social benefit promises that the U.S. Government has made and therefore basically ignores the Unfunded Liabilities that this undertaxing creates.  As of Oct 1, 2014, the U.S. Government has undertaxed the U.S. citizens and businesses by the amount of our GAAP Obligation of $98.1 Trillion as shown in the table above at the end of FY2014.  As a result, the U.S. citizens and businesses appear to be richer by $98.1 Trillion but the U.S. Government has a $98.1 Trillion offsetting public liability.  We are just moving money from one pocket to the other to make the private citizens and businesses look rich while the U.S. Government is running up massive debt and virtual debt.

Our GAAP Obligation increased by the amount of our GAAP Deficit of $6.4 Trillion in FY2014 and the USAPonzi Fiscal Model projects that our GAAP Deficit in FY2015 will be $6.9 Trillion.  So the U.S. Government released $6.4 Trillion of counterfeit money to the U.S. citizens and businesses in FY2014 and will increase that to $6.9 Trillion of counterfeit money in FY2015.  This money is counterfeit because this GAAP Obligation has been left to the future taxpayers to pay and the U.S. Government is already spending, on a GAAP basis, three times its income from taxpayers.

The following table demonstrates how much counterfeit money the U.S. Government has been and is now distributing each year to U.S. citizens and businesses.  The U.S. Government has distributed a total of $98.1 Trillion of counterfeit money over the 46 year life of USAPonzi.

                                                   Yearly       Monthly      Daily
                                 FY2013     $6,200B      $517B       $17.0B
                                 FY2014     $6,422B      $535B       $17.6B
                                 FY2015     $6,940B      $578B       $19.0B

Table 2  Counterfeit Money created by USAPonzi's GAAP basis Deficit Spending

So today, as we start a new Fiscal Year, we got a raise from $17.6 Billion a day in FY2014 of counterfeit money to now $19.0 Billion a day in FY 2015 that comes to us in the form of "unpaid taxes".  As long as the U.S. Government continues to operate USAPonzi, we can expect similar increases in the amount of counterfeit money that the Government sends to us.  But as Favoring the Rich and Cheating the Common Man explains, most of this counterfeit money is going to the wealthy citizens and businesses and the Common Man is getting NOTHING set aside in Trust Funds to pay the social benefit promises that the U.S. Government has made.

The biggest wealth transfer in the history of the Planet

$98.1 Trillion

By using this corrupt and fraudulent Cash Accounting, the U.S. Government is systematically transferring virtual money from the future taxpayers to the current U.S. citizens and businesses at the rate of our GAAP basis Deficit Spending:

                 $19.0 Billion a day
                  $578 Billion a month
                   $6.9 Trillion in FY2015
                 $98.1 Trillion over the life of USAPonzi (46 years)

The wealthy like USAPonzi because the counterfeit money created by USAPonzi is making them filthy rich, at least on paper (see U.S. Total Assets Bubble)

      USAPonzi has created $98.1 Trillion out of "thin air".
      USAPonzi has appeared to create 1,426 billionaires.
      USAPonzi has appeared to create millions of millionaires.
      USAPonzi has appeared to create hundreds of $billion corporations.
      USAPonzi has appeared to create 287 $billion hedge funds.

The Government Officials and the direct and indirect Government employees like USAPonzi because they are getting some (maybe even most) of their pay from deficit spending dollars.

The social benefit recipients like USAPonzi, right now, because the U.S. Government is still paying these benefits at the promised rates.  However this cannot last, because this counterfeit money is created by past borrowings and by not funding the trust funds to sustain these future social benefits.  So in the long run the Common Man will be in desperate straits when the borrowing capacity of the U.S. Government is truly tested since we now are on the hook for a total of $98.1 Trillion and that amount is growing by $19.0 Billion every day.

The U.S. (and global) economy likes USAPonzi because the $6.9 Trillion of GAAP basis Deficit Spending is providing massive economic stimulus.  I estimate that this stimulus caused our GDP in FY2014 to be 1.8X what it would have been without this Deficit Spending stimulus (see U.S. "Real" GDP FY2014).  This means that 45% of our economic activity was caused by GAAP basis Deficit Spending in FY2014.   I have now estimated what the impact of GAAP Deficit Spending will be in FY2015 and that estimate is 47% of our economic activity is due to Government stimulus  (see U.S. "Real" GDP FY2015).

Sadly, the USAPonzi fraud will continue into FY2015.

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