How Public Liabilities produce Private Wealth!
August 3, 2016
The U.S. Government is corrupt! I cannot be any more direct! The U.S. Government is operating with a dramatically unbalanced budget that has produced $103 Trillion of US Unfunded Liabilities according to Generally Accepted Accounting Principles (GAAP Accounting). These are Unfunded Liabilities because the U.S. taxpayers are not paying the taxes required to pay for all of the U.S. Government's spending and committing to spend. Therefore the U.S. taxpayers are wealthier by $103 Trillion because they did not pay $103 Trillion of taxes. Deferring these public liabilities to the future U.S. taxpayers is fraud because the future U.S. taxpayers cannot pay these deferred public liabilities.
The U.S. upper class appears to be very very wealthy because the U.S. Government is corrupt. The more corrupt the U.S. Government is, the wealthier the U.S. upper class becomes. The senior officials in the U.S. Government are appearing to get rich by operating with a corrupt and fraudulent fiscal policy. The U.S. upper class is appearing to get very very rich because the U.S. Government is operating with a corrupt and fraudulent fiscal policy.
U.S. Government fraud is giving the ruling class an opulent lifestyle and is giving the upper class a super opulent lifestyle.
The U.S. economy is not producing much if any wealth! U.S. Government fraud is producing massive imaginary-counterfeit wealth.
GAAP Accounting tells us that if the future U.S. taxpayers could just make a balloon tax payment of $103 Trillion we would have a lot of very rich people in the United States. The U.S. Government has a great imagination. The U.S. Government is imagining that the future U.S. taxpayers will find a huge and ever-increasing pot of gold at the end of the rainbow. This is why I call this $103 Trillion imaginary-counterfeit money. This is not real money, this is just money that the U.S. Government imagines will be paid at some point in the future. But it is counterfeit money because the future U.S. taxpayers can never pay it (See The Theory of Imaginary Money).
|Cash Deficit in FY2016
|GAAP Deficit in FY2016
|Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|Total National Assets
Source: www.usdebtclock.org August 2, 2016
$103 Trillion of Unfunded Liabilities has produced $103 Trillion of imaginary-counterfeit money that has contributed mightily to the private wealth of the U.S. citizens and business shown in the above table as Total National Assets. 84% of the U.S. private wealth has been produced as imaginary-counterfeit money by the U.S. Government fiscal and accounting fraud that I call USAPonzi ($103.0T/$122.8T = 0.839). This U.S. Government fraud has given the U.S. upper class $103 Trillion of imaginary-counterfeit wealth.
The U.S. Government is continuing this fraud and is continuing to create more imaginary-counterfeit money and imaginary-counterfeit wealth every day with GAAP basis deficit spending of $5.73 Trillion in FY2016.
The U.S. upper class is appearing to get rich with faux money that is being artificially produced with fiscal and accounting fraud. The U.S. upper class is appearing to get very very rich with imaginary-counterfeit money produced with GAAP basis deficit spending. Every dollar of GAAP basis deficit spending becomes an imaginary-counterfeit dollar in the pocket of the taxpayer that did not have to pay that tax dollar.
Warren Buffett, Donald Trump, and Hillary Clinton are poster child examples of people that have gotten rich from this U.S. Government fraud. $103 Trillion of imaginary-counterfeit money can make a lot of people appear to be very very rich.
U.S. Government fiscal and accounting fraud produces Public Liabilities which in turn produces counterfeit Private Wealth. The U.S. Government is causing the United States of America to appear to be wealthy and prosperous by putting $103 Trillion on the credit card of the future U.S. taxpayers.
The U.S. Government is simply pretending to borrow imaginary-counterfeit money from the future U.S. taxpayers and giving it to current Americans. This is fraud because the future U.S. taxpayers do not have $103 Trillion.
To eliminate this fraud, the U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget. I have created a website www.usaponzi.com and have written a book "USAPonzi", available on Amazon, that explain this Ponzi scheme in much more detail.