Scoundrels, Liars, and Cheaters!
August 3, 2015
As posted on www.usaponzi.com
Financial data used in this commentary was sourced from www.usdebtclock.org as of August 3, 2015.
We have a bunch of "scoundrels, liars, and cheaters" running the U.S. Government. That may sound a little harsh but unfortunately it is the truth. The U.S. Government is operating with a corrupt and fraudulent fiscal policy that is nothing but a classic Ponzi scheme. I have named this Ponzi scheme USAPonzi. The U.S. Government is operating with an unbalanced budget that is creating massive Public Liabilities (US Unfunded Liabilities (GAAP) as it is called on www.usdebtclock.org) of $97.3 Trillion and by doing so is appearing to make the U.S. citizens and businesses prosperous and wealthy. USAPonzi is creating massive counterfeit Private Wealth by assuming massive Public Liabilities.
The USAPonzi fiscal policy is overpaying the Government workers, is overpaying the social benefit recipients, is undertaxing the current U.S. taxpayer, and is deferring the resulting Public Liabilities to the future U.S. taxpayer. The U.S. Government is using a corrupt and fraudulent accounting system, Cash Accounting rather than the proper GAAP Accounting, in an attempt to conceal this overspending, overcommitting, and undertaxing.
These Public Liabilities define the amount by which the U.S. citizens and businesses have been undertaxed, $97.3 Trillion, and therefore the amount that Private Wealth has appeared to have been enhanced by this Ponzi scheme. This enhanced Private Wealth is counterfeit since these Public Liabilities can never be paid by the future U.S. taxpayer.
I have, for some time, been referring to the U.S. Government as a bunch of "liars and cheaters" for continuing to operate the U.S. Government with this grossly unfair fiscal policy that is giving the people that work for the U.S. Government (the ruling class) undue financial rewards, is giving the U.S. upper class massive undue financial rewards, and is cheating the Common Man by not funding the social benefit trust fund.
The U.S. Government is lying to the U.S. general populace by promising to pay social benefits but is not funding these promises. The U.S. Government has underfunded these social benefit promises by $79.0 Trillion.
The U.S. Government is cheating the U.S. general populace by overpaying the direct and indirect Government employees and the Government related businesses. By overpaying the Government employees, the Government related businesses, and the social benefit recipients; the U.S. Government has incurred $18.3 Trillion of debt.
The U.S. Government is cheating the U.S. general populace by not funding the social benefit promises so that the U.S. Government can undertax the U.S. upper class making the upper class appear to be super wealthy. The U.S. Government has now undertaxed the U.S. citizens and businesses by $97.3 Trillion as reported on www.usdebtclock.org as US Unfunded Liabilities (GAAP).
I will now add the "scoundrel" moniker to the people that are in charge of the U.S. Government. It was a scoundrel, Lyndon Baines Johnson, that launched this Ponzi scheme with the Unified Budget for FY1969. No one but a scoundrel would support continuing this grossly unfair fiscal policy and the U.S. Government has now continued this corrupt and fraudulent fiscal policy for more than 46 years. The U.S. Government has incurred $97.3 Trillion of Public Liabilities so that they can pay themselves "big bucks". The U.S. Government has incurred $97.3 Trillion of Public Liabilities so that the U.S. Government can make their rich friends appear to be super wealthy by dramatically undertaxing them giving them "gigantic bucks". The U.S. Government has promised to pay $79.0 Trillion worth of future social benefits and has not funded one penny of these promises. The U.S. Government has borrowed and spent all of the excess tax revenues that have been collected for social benefit programs.
The future U.S. taxpayers are facing a massive and unpayable tax bill and the future social benefit recipients are SOL because the U.S. Government is making false social benefit promises by not funding the social benefit trust fund.
Almost everyone now knows that the U.S. Government is making overly generous social benefit promises and that these social benefit programs are not sustainable but since the current social benefit recipients are continuing to be paid as promised, largely with borrowed money, the U.S. citizenry sits quietly by not realizing just how devastating this financial crisis will be when the United States of America reaches the "Greece moment". The "Greece moment" is when the U.S Government realizes that they cannot borrow enough money to pay these now unfunded social benefit promises. This moment is coming and the U.S. financial crisis will be even worse than that in Greece since we have borrowed 9 times as much money per capita with the USAPonzi fiscal policy as Greece did by borrowing from the EU and the IMF (see U.S. Financial Crisis 9X Greece Crisis).
Most people just want this Ponzi scheme to continue to operate so that U.S. Government can continue to hand out money, counterfeit money, to everyone in the United States. That is why we have so much illegal immigration. People want to get to the United States so that they can get these Government handouts and gain the benefit of this Ponzi scheme. Everyone seems to win in the United States because of the way our fiscal policy works, either the Government pays you money or the Government undertaxes you. It appears like you just can't lose in the United States but this is just an illusion created by the corrupt and fraudulent fiscal policy of the U.S. Government.
The unbalanced budget of the U.S. Government has been handing out counterfeit money to U.S. citizens and businesses at an increasing rate since FY1969. So far the U.S. Government has handed out $97.3 Trillion of counterfeit money and is distributing $15.1 Billion more every day. Yes everybody gets some of this counterfeit money but the lower and middle classes get "little bucks", the ruling class gets "big bucks", and the upper class gets "gigantic bucks". $97.3 Trillion of counterfeit money can make a lot of people appear to be really rich.
This corrupt and fraudulent fiscal policy is creating counterfeit money out of "thin air" with GAAP basis Deficit Spending. This should be obvious to almost everyone. The U.S. Government is transferring counterfeit money from the future U.S. taxpayer to the current U.S. citizens and businesses with GAAP basis deficit spending. This is like buying a car and saying "trust me" I am not going to pay for it now but my children will pay for it some day. I get the car and I still have the money that it would have taken to buy the car.
The U.S. Government is appearing to create Private Wealth by assuming Public Liabilities and this wealth is largely going to the ruling and upper classes. The people in the upper class, by definition, make the most money so they should be paying the most taxes but since the Government is undertaxing all U.S. citizens and businesses the upper class gets the most benefit from the $97.3 Trillion of undertaxing.
The lower and middle class people tend to get paid fixed social benefits or earn a relatively fixed income largely from the "sweat of their brow" and as a result they do not have the financial leverage that the upper class enjoys. With the USAPonzi fiscal policy, the more you earn the more you gain from the underpayment of taxes. As I have said repeatedly, the USAPonzi fiscal policy is what is causing the wealth gap to widen. The lower and middle classes have to work for a living, unless they are on social benefits, and in either case have limited upside potential while the upper class gets extremely rich by doing absolutely nothing but reap the phantom and counterfeit financial rewards of this corrupt and fraudulent fiscal policy. The U.S. citizens and businesses, primarily the upper class, have gained $97.3 Trillion of counterfeit money since FY1969 simply by not paying the taxes required to pay for the U.S. Government's overspending and overcommitting.
The financial game in the United States is "rigged" in favor of the upper class and the ruling class. Not having to pay the taxes required to finance the Government spending has been a huge windfall for the upper class and at the same time the ruling class has also been able to overpay themselves with some of this counterfeit money.
The GAAP basis Deficit Spending of the U.S. Government is a sure thing especially for the upper class citizens and businesses. They are going to get $5-6 Trillion (and growing) of counterfeit money every year no matter what happens. The only issue that they have is determining who is going to gain the largest portion of this ill gotten and counterfeit money. That is what makes Wall Street exciting. Who can collect the most counterfeit money that the U.S. Government is "dropping from a helicopter". And yes it is counterfeit money because it will evaporate when USAPonzi implodes since the upper class only gets this money by assuming that the future U.S. taxpayer can eventually pay the $97.3 Trillion of Public Liabilities that is growing by $15.1 Billion every day.
The U.S. Government is "A $100 Trillion Counterfeit Money Machine" that, with the current fiscal policy, will create an infinite amount of Public Liabilities, an infinite amount of counterfeit money, and an infinite amount of counterfeit Private Wealth.
The people in the U.S. Government are scoundrels because they have rigged the U.S. fiscal policy in favor of the upper and ruling classes.
Some of the people in the U.S. Government may not understand what a financial crisis they have created by operating this Ponzi scheme so they do not really deserve the "scoundrel" moniker but the alternative names for them are also not complimentary.
This problem can only be resolved by the U.S. Government adopting an honest accounting system. The U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget.
Because of our current fiscal policy, the United States of America cannot be considered a trusted party in global commerce. The U.S. Government is creating counterfeit money every day and with the current policy will create an infinite amount of counterfeit money.
We talk endlessly about the monetary policy of the Federal Reserve creating money out of "thin air" with Quantitative Easing and yes it has introduced $4-5 Trillion of counterfeit money over the last few years but that is a "drop in the bucket" compared to the $97.3 Trillion of counterfeit money that the U.S. Government fiscal policy (USAPonzi) has created out of "thin air" since FY1969. And the $97.3 Trillion of counterfeit money, that USAPonzi has produced to date, is a "drop in the bucket" compared to the infinite amount of counterfeit money that the current fiscal policy will produce if it is allowed to continue.
See The Implosion of USAPonzi for what I predict will have to happen when USAPonzi implodes.
See The Distortions of USAPonzi for a discussion of some of the issues that USAPonzi is causing in the global economy.
The U.S. Government is operating USAPonzi;
"The Biggest Ponzi Scheme on the Planet"!!!!
Next eBook Commentary: Fed Chairmen are Co-Conspirators in USAPonzi