Healthcare-for-all is a Folly-191028
October 28, 2019
Emailed to Fed Chair Jay Powell, Minneapolis Fed President Neel Kashkari, Dallas Fed President Robert Kaplan, Congressman Van Taylor, Congressman Colin Allred, Senator John Cornyn, Senator Ted Cruz, The U.S. SEC, NYT/WSJ/WP/DMN, and Dallas Mayor Eric Johnson on 10/28/19
Healthcare-for-all is a folly!
Social Security is a folly!
Government pensions are a folly!
Veteran benefits are a folly!
For clarity and emphasis, I list some of the synonyms of “folly”:
absurdity, lunacy, imbecility, madness, foolery, tomfoolery, foolishness, stupidity, craziness.
You can't squeeze blood out of a turnip!
In this commentary, I will explain why Healthcare-for-all is a folly, but this explanation applies to all U.S. Government benefit programs; healthcare, Social Security, Government pensions, veteran benefits, etc. etc.! The U.S. Government is “cooking the books” by promising to pay U.S. Government benefits but is not accruing the money to pay for these benefits!
The U.S. Government is lying to the U.S. general public by promising to pay benefits in the future when it has no intention or ability to pay these benefits! When the U.S. Government does not accrue the money to pay for these future benefits, the U.S. upper class gets undertaxed and very very rich!
The U.S. Government for the last 50 years has been lying to the U.S. general public by promising them future benefits but not collecting the money to pay for these future benefits!
The U.S. Government for the last 50 years has been enriching the U.S. upper class by undertaxing them by not collecting the money to pay for these future benefits!
The U.S. Government is corrupt! The U.S. Government is hoodwinking the U.S. general public into thinking they will get paid in the future when the U.S. upper class is getting rich now!
So far, the U.S. Government has cheated the U.S. general public out of $103.6 Trillion and given the U.S. upper class $126.5 Trillion!
The U.S. Government is borrowing money from the future Americans, money the future Americans do not have and giving it to the U.S. upper class!
The U.S. Government is committing a fiscal and accounting fraud that gives the appearance that the U.S. Government can pay benefits to the U.S. general public that are irrational, unaffordable, and unfunded!
So, while this commentary focuses on healthcare, it applies to all future benefit programs!
The U.S. Government cannot provide healthcare that anybody might want or need to anybody that might want or need it!
Providing Healthcare-for-all, also called Medicare-for-all or Universal Healthcare, is just not possible! The U.S. Government just does not have the money to offer open-ended healthcare to everyone!
But, the promise of Healthcare-for-all appears to be possible because the U.S. Government is “cooking the books”!
The U.S. Government is “cooking the books” by operating it fiscal policy with Cash Accounting rather than proper GAAP Accounting! By operating with Cash Accounting and not accruing for future benefit promises, the U.S. Government has produced a classic Ponzi scheme, I call it USAPonzi, that is printing imaginary-counterfeit money and giving it to the U.S. upper class!
By “cooking the books” the U.S. Government is stealthily and fraudulently borrowing money from the future Americans, money the future Americans do not have, and giving it to the U.S. upper class!
By “cooking the books” the U.S. Government is pulling monopoly money out of a hat and giving it to the U.S. upper class!
So far, the U.S. Government has pulled $126.5 Trillion of monopoly money out of a hat and given it to the U.S. upper class!
I call this monopoly money “imaginary-counterfeit money” because it does not exist (imaginary) and it is worthless (counterfeit)!
The U.S. Government has performed the most amazing magic trick (pulling $126.5 Trillion of monopoly money out of a hat) in the history of magic!
And the magic continues because the U.S. Government pulls another $16.8 Billion of monopoly money out of that magic hat every single day!
By “cooking the books” the U.S. Government is printing infinite counterfeit money, enriching the U.S. upper class, enriching the U.S. ruling class, cheating the U.S. general public, cheating the rest of the planet, causing a wealth and income gap, causing social injustice, causing global warming, and destroying planet earth (See The Great American Fraud)!
By “cooking the books” the U.S. Government has fooled the U.S. general public, has fooled the rest of the planet, has fooled themselves, has fooled most of corporate management, and has fooled most investors!
I contend that while most of the people on Planet Earth have been fooled by this accounting fraud, there are still a lot of people that know the U.S. Government is “cooking the books” but they refuse to say anything because this accounting fraud is making them very rich!
I contend that very few people realize the severity of the damage that is being done to Planet Earth by the U.S. Government “cooking the books”! This U.S. Government accounting fraud is causing Global Warming that is burning up Planet Earth!
I know that nobody in a position of power, authority, or influence wants to be the one that exposes and explains how the U.S. Government is “cooking the books”!
The chaos, civil unrest, global unrest, and global economic depression that will occur when this accounting fraud is exposed will be epic and unprecedented!
The person that “lights the match” that causes the implosion of USAPonzi will likely get a lot of the blame for this accounting fraud and will be forever asked; what did you know?, when did you know it?, and why didn't you speak up sooner?
The U.S. Government has hoodwinked the U.S. general public into thinking that it will pay them future U.S. Government benefits that are unaffordable and unfunded so that it can enrich the U.S. upper class and enrich themselves!
The U.S. Government has hoodwinked Planet Earth into thinking that America is wealthy and prosperous so that America can dominant Planet Earth financially, economically, politically, and militarily!
The U.S. Government is making financial commitments that it cannot keep and attempting to conceal this by committing a fiscal and accounting fraud!
Most of the proponents of Healthcare-for-all, propose to pay for Universal Healthcare by taxing the wealth and income of the U.S. upper class! This is not a reliable source of revenue when almost all of the wealth and income of the U.S. upper class is monopoly money that the U.S. Government is fraudulently borrowing from the future Americans!
Let me again try to explain why the U.S. Government does not have the money to pay for Healthcare-for-all!
Unfunded Future Liabilities = $103.6 Trillion
The first and most obvious problem is that the U.S. Government has not been accruing for future benefits for the last 50 years so the U.S. Government has promised to pay for healthcare, Social Security, pensions, veterans benefits etc. etc. that have a present value of $103.6 Trillion (US Unfunded Future Liabilities) and the U.S. Government does not have one penny set aside to pay for these future benefits!
So, from a standing start today, the U.S. Government is short by $103.6 Trillion of having the money to pay for future benefits! The U.S. Government is pretending like the future Americans will someday be able to pay for this $103.6 Trillion of unfunded future benefit promises and the $22.9 Trillion of National Debt that has already been incurred.
What are the prospects for future Americans being able to pay this $126.5 Trillion that the U.S. Government has borrowed from them! I would have to say that the prospects are not at all good!
Current U.S. tax revenues are dramatically overstated!
This U.S. Government fiscal and accounting fraud has made the United States of America appear to be the richest country on the planet by fraudulently borrowing $126.5 Trillion of imaginary-counterfeit money from the future Americans and giving it to the U.S. upper class!
The U.S. upper class appears to be getting rich because the U.S. Government is fraudulently borrowing imaginary-counterfeit money ($126.5 Trillion and $16.8 Billion a day) from the future Americans and giving it to the U.S. upper class!
The U.S. economy (U.S. Gross Domestic Product) appears to be very strong because the U.S. Government is fraudulently borrowing imaginary-counterfeit money ($126.5 Trillion and $16.8 Billion a day) from the future Americans and giving it the U.S. upper class!
U.S. Federal Tax Revenues are increasing because the U.S. Government is fraudulently borrowing imaginary-counterfeit money ($126.5 Trillion and $16.8 Billion a day) from the future Americans and giving it to the U.S. upper class!
The U.S. Gross Domestic Product ($21.6 Trillion) appears to be the largest on the planet because Americans, largely the U.S. upper class, have been given $126.5 Trillion of imaginary-counterfeit money so Americans can build and buy a lot of stuff to generate economic activity!
U.S. Federal Tax Revenue in FY2020 is estimated to be $3.48 Trillion because the U.S. upper class has been given $126.5 Trillion of imaginary-counterfeit money to produce U.S. Gross Domestic Product of $21.6 Trillion which has produced enough economic activity to create $3.48 Trillion of U.S. Federal Tax Revenue!
U.S. Gross Domestic Product and U.S. Federal tax revenue will both plummet when the U.S. Government starts using honest accounting and this $126.5 Trillion of imaginary-counterfeit money evaporates! And when I say plummet, I mean really plummet! The wealth, prosperity, and economic activity in America are all created by the fact that the U.S. Government is printing imaginary-counterfeit money at the rate of $16.8 Billion a day to a total of now $126.5 Trillion and giving it to the U.S. upper class!
This is why consumer spending in America seems to continue to remain strong when other countries are seeing softness in their economies! The U.S. Government is continuously stimulating the U.S. economy by printing more and more ($16.8 Billion a day) imaginary-counterfeit money to add to the now $126.5 Trillion of imaginary-counterfeit money it has already printed (See Printing Infinite Counterfeit Money)!
U.S. Federal Tax Revenue is grossly overstated because of this fiscal and accounting fraud that is being perpetrated by the U.S. Government! Almost all of today's income tax revenues come from economic activity that is being created by the now $126.5 Trillion of imaginary-counterfeit money and the capital gains taxes are being produced by printing ever more imaginary-counterfeit money!
We are buying and building things with imaginary-counterfeit money so workers can earn imaginary-counterfeit money so they can pay imaginary-counterfeit taxes with imaginary-counterfeit money! When USAPonzi implodes, this imaginary-counterfeit money will vanish, and U.S. Federal Tax Revenue will fall precipitously!
The elite are making lots of money because the U.S. Government is printing $6.13 Trillion of imaginary-counterfeit money this year and giving it to the U.S. upper class! This is considered a capital gain and the elite will pay at least some taxes on these capital gains! When USAPonzi implodes, these capital gains will abruptly stop and the taxes on these capital gains will abruptly stop!
U.S. Gross Domestic Product could drop by as much as 90% or more when this Ponzi scheme implodes!
When U.S. Gross Domestic Product drops, the current year tax revenues will fall so the U.S. Government will have less money to spend and it will be impossible to pay down any of the $126.5 Trillion that the U.S. Government has borrowed from the future Americans! In fact, the U.S. Government will have to borrow another $6 Trillion of monopoly money (GAAP Deficit in FY2020) from the future Americans in FY2020 so that it can continue to perpetrate this accounting fraud!
That is the nature of a Ponzi scheme, the operator of the Ponzi scheme keeps telling the current participants in the scheme that the operator will someday be able to pay them what is promised, when the amount promised to the current participants is continuing to increase, in this case by $6 Trillion in FY2020!
Truth be known, the U.S. Government may not be able to afford to pay for any healthcare with real money!
Healthcare-for-none is much more likely than Healthcare-for-all!
This U.S. Government fiscal and accounting fraud appears to make a lot of things affordable when in reality they are not! When the U.S. Government is in the process of printing an infinite amount of imaginary-counterfeit money, the solution to all problems is to distribute enough of this imaginary-counterfeit money to everybody so that everybody can meet their basic needs (food, water, shelter, and clothing)! But when USAPonzi implodes, nobody will have any imaginary-counterfeit money so everybody will have to find and perform a real job that supports the production of the basic needs of humankind.
Ruralization of the U.S. population!
One of the byproducts of USAPonzi is the urbanization of America and one of byproducts of the implosion of USAPonzi will be the un-urbanization or re-ruralization of America. When the primary source of income in America is imaginary-counterfeit money that the U.S. Government is printing, the population can cluster in densely populated urban environments. In these urban areas we have built big houses and high-rise buildings with luxury condos for the elite and densely packed apartment buildings and suburban houses for the common man with the imaginary-counterfeit money that the U.S. Government has fraudulently borrowed from the future Americans!
Both of these configurations of housing, for the elite and for the common man, will be largely useless when USAPonzi implodes. The U.S. population would naturally be spread much more evenly across the land if the U.S. Government was telling the financial truth and people were performing real work to earn a living. This real work will, to a large degree, be “close to the land” where people can find real jobs that directly support their basic needs.
We have spent 50 years urbanizing America because of USAPonzi and to save Planet Earth we will need to re-ruralize America. Most of our cities with their big houses, luxury condos, apartment buildings, and suburban housing will become ghost towns because the “real jobs” will return to “the land” and to small towns and medium size cities that offer jobs that produce “basic needs” products!
And, because USAPonzi is burning up Planet Earth with Global Warming we need to retire most of these environment-polluting physical objects anyway in an attempt to curtail Global Warming! So, shutting off the power to a large part of our big cities will be a good thing in that regard!
And housing is not the only thing that will have to be retired to curtail Global Warming; as another example will need to park millions of cars and trucks and tens of thousands of airplanes! This will happen rather naturally when the U.S. Government starts telling the financial truth because most people will not have the money to buy fuel for their cars and trucks or tickets to ride on airplanes! When the global economy loses a stash of $126.5 Trillion and a stream of $16.8 Billion a day of imaginary-counterfeit money, there will be a lot of physical assets that will be retired!
USAPonzi has caused us to do the wrong things and to build the wrong things! We need to be building much smaller and more evenly distributed housing so the population can be closer to productive jobs that support basic needs. Big cities with large populations that are not working and living on government benefits, will experience massive civil unrest when people realize that these government benefits cannot be paid, and this urban population cannot find real jobs close to their living space that produces something of value!
Healthcare will need to follow this re-configuration of America. We all love the large, great hospitals and medical facilities that America has today, but the real economy can not support this economic and population model! When imaginary-counterfeit money is the primary output of the American economy, people can live wherever they want to but when products to support the basic needs again become the primary output of the American economy, the living accommodations and support infrastructure must be much more modest and evenly distributed across the land!
The U.S. Government accounting fraud, that I call USAPonzi, has caused the entire planet to do the wrong things and to build and buy the wrong things!
Un-urbanization and re-ruralization is the only thing that can save planet earth and we may not have time to do this before planet earth is destroyed by the Global Warming that has been produced by USAPonzi!
Heathcare delivery and healthcare financing will need to be radically reformed to accommodate this ruralization!
Politicians have a strong propensity to promise more and more government benefits to the general public when most of these new promises are totally unaffordable and even irrational. In fact, the current benefit promises, which include several forms of healthcare, are unaffordable, irrational, and unfunded (US Unfunded Future Liabilities = $103.6 Trillion)! And the politicians are still proposing and promising ever more expansive and expensive benefits!
It is impossible to know what healthcare is affordable or what healthcare might cost when the U.S. Government is “cooking the books”!
If the U.S. Government was operating its fiscal policy with proper GAAP Accounting, it would not borrow more money from the future Americans than the future Americans can reasonably be expected to pay! Americans cannot pay for the current year U.S. Government spending, so the amount that the U.S. Government can honestly borrow from the future Americans is zero! So far, the U.S. Government has borrowed $126.5 Trillion (US Unfunded Liabilities (GAAP)) from the future Americans!
We have a serious problem!
Since the U.S. upper class has $126.5 Trillion of imaginary-counterfeit money and most of the U.S. general public are living paycheck to paycheck, the elite can pay outrageous prices for their healthcare while the un-elite have essentially no ability to pay for their healthcare!
The way this U.S. Government fraud works, the elite are getting infinitely rich with imaginary-counterfeit money and the un-elite are getting royally cheated! (See U.S. Government is run by common criminals!).
The elite are not paying for their healthcare with real money, they are using imaginary-counterfeit money that the U.S. Government has created out of “thin air” by “cooking the books”!
We are using this imaginary-counterfeit money to purchase stuff that will prove to be unaffordable and unusable when this Ponzi scheme implodes!
We are using this imaginary-counterfeit money to pay for medical procedures, medical devices, medical equipment, drugs, and medicines that we cannot afford, and to build hospitals, doctors' offices, clinics, and 24-hour emergency rooms that we cannot afford!
Until the U.S. Government stops “cooking the books” and starts using proper accounting, we will not know what healthcare is affordable or what healthcare will cost! Because of this U.S. Government accounting fraud, the cost of healthcare has continued to increase for the last 50 years! Because of this U.S. Government accounting fraud, the affordability of healthcare varies dramatically between the elite and the common man!
Because of this accounting fraud, we are performing healthcare procedures that we should not even be considering! When the U.S. Government is in the process of printing an infinite amount of imaginary-counterfeit money, we can appear to purchase healthcare related procedures, equipment, and facilities that are totally irrational!
When USAPonzi implodes and this imaginary-counterfeit money evaporates, we will have to start making rational decisions as to what healthcare is affordable and what medical facilities, that we have already built that we will be able to staff and operate. Unfortunately, most of the current medical facilities will become silent monuments to the fraud and corruption within the U.S. Government when USAPonzi implodes!
When USAPonzi implodes, the cost of healthcare will be significantly reduced!
When USAPonzi implodes, the affordability gap for healthcare, and most everything, between the elite and the common man will be dramatically reduced!
Unfortunately, healthcare that we can afford will be dramatically reduced in both quantity and quality from current levels when USAPonzi implodes! With the current Ponzi scheme fiscal policy, the U.S. Government is essentially managing healthcare with an open checkbook to perform medical procedures and pretend like the future Americans will pay for them someday!
Healthcare-for-all is a folly!
A folly that continues to be promoted and proposed by politicians because the U.S. Government is “cooking the books”!
|Gross Domestic Product
|US Federal Tax Revenue
|Cash Deficit in FY2020
|GAAP Deficit in FY2020
|US Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|Total National Assets
Source: www.usdebtclock.org October 28, 2019
This accounting fraud (USAPonzi) is explained in more detail on my websites (www.usaponzi.net and www.usaponzi.com) and in my fifth book on USAPonzi (USAPonziB) which is available on Amazon.
John W White