Obamacare Folly: Trying to Fix the Unfixable!
January 25, 2017 Emailed to WSJ/NYT/DMN on January 25, 2017
The following is an Op-Ed to "The Wall Street Journal", "The New York Times", and "The Dallas Morning News" that provides further explanation of the Ponzi scheme fiscal policy (USAPonzi) that the U.S. Government has been operating since FY1969 and the impact USAPonzi is having on the global economy and financial system.
Obamacare Folly: Trying to Fix the Unfixable!
January 25, 2017
"You can't squeeze blood out of a turnip!"
"You can't manage what you don't measure!" W. Edwards Deming
The Obamacare feud in the U.S. Congress is just one example of the fiscal and financial follies that have been created by corruption within the U.S. Government. The U.S. Government is committing fiscal and accounting fraud by using an improper accounting system by using Cash Accounting rather than proper GAAP Accounting. (See www.usaponzi.net).
This fraud continues because most Americans benefit greatly from this fraud so no one wants to be the one to expose this fraud. This fraud is creating imaginary-counterfeit money out of "thin air", by borrowing it from the future Americans, which enhances the lifestyle of all Americans. The stock market has been on a long term bull run for the last 48 years precisely because of this fraud. The real estate market has been on a long term bull run for the last 48 years precisely because of this fraud. This fraud caused "The Internet Bubble". This fraud caused "The Housing Bubble". This fraud has created massive imaginary wealth for the global upper class.
All of this is possible because the U.S. Government is borrowing imaginary-counterfeit money from the future Americans and giving it to the current Americans. As if January 25, 2017, the U.S. Government has borrowed/stolen $104.9 Trillion from the future Americans and given it to the current Americans.
How does this fiscal and accounting fraud relate to the Obamacare controversy?
The U.S. Congress, with a Democrat majority, was able to pass legislation (Obamacare) intended to provide improved healthcare coverage for the U.S. citizenry. Now that we have a Republican Congress, they have vowed to repeal and replace Obamacare with improved coverage at lower cost. However, neither side of the aisle has a plan that will fix this problem because it is an unfixable problem.
The fundamental problem is that providing the desired healthcare coverage for all citizens is simply not possible. The money is just not there to provide the healthcare coverage that the politicians, both Democrats and Republicans, are promising. And worse yet, the U.S. Government is not using an accounting system and budgeting process that will give them even the slightest clue as to what is affordable and what is not affordable.
The Obamacare problem cannot be fixed until the U.S. Government starts telling the financial truth. The U.S. Government is corrupt simply because it is not using proper accounting. The U.S. Government is being run by a bunch of scoundrels, liars, and cheaters! The U.S. Government is being run by a bunch of common criminals. The U.S. Government only needs to ask one reputable accounting firm if it is using proper accounting to know that this healthcare problem, and all other Government benefit problems, can only be properly reconciled by adopting an accrual accounting system. The answer will not be a pleasing one, but by abiding by the proper guidance of a reputable accounting firm, the U.S. Government can then establish a fiscal policy that is based on facts as we best know them.
The U.S. Government is committing fiscal and accounting fraud!
The U.S. Government has created $104.9 Trillion of imaginary-counterfeit money out of "thin air", by borrowing it from the future Americans, to pretend like it can pay for the current U.S. Government benefit promises. The U.S. Government is trying to convince the U.S. citizenry that they can pay for universal healthcare when the U.S. Government is already in "virtual debt" by $104.9 Trillion. But since the U.S. Government has been able to get by with a $104.9 Trillion financial fraud, they think they can lie some more and make even more promises to pay for even more unaffordable benefits by borrowing even more imaginary-counterfeit money from the future Americans.
But as I say, the future Americans have an unlimited supply of imaginary-counterfeit money so the U.S. Government can keep this fraud going for a very long time. Imaginary-counterfeit money is very easy to create when it is done digitally but it has no value. That is why I call this money counterfeit. This imaginary-counterfeit money has "apparent value" because it is being issued by the Government of the United States of America. If you can't trust the U.S. Government, who can you trust? However, the U.S. Government is committing fiscal and accounting fraud by operating with Cash Accounting. The U.S. Government cannot be trusted!
Because the U.S. Government is using an improper accounting system, the senior members of the U.S. Government are able to enrich themselves and to super enrich their upper class friends so they have no interest in using an honest accounting system. The U.S. Government just borrows imaginary-counterfeit money from the future Americans to overpay themselves and to give $104.9 Trillion of imaginary-counterfeit money to their upper class friends.
I cannot possibly be more direct, the U.S. Government has been committing fiscal and accounting fraud since FY1969 by operating with Cash Accounting rather than using proper and Generally Accepted Accounting Principles (GAAP Accounting). How can 535 supposedly intelligent adults continue to lie and cheat when they themselves have required that corporations use the proper accounting methodology to avoid the kind of fiscal and accounting fraud that the U.S. Government itself is committing?
And then they spend years and years and literally trillions of dollars operating with a corrupt fiscal policy while foolishly debating among themselves whether this or that healthcare proposal is right or wrong for the United States of America when there is absolutely no way to tell whether this or that is right or wrong until the situation is assessed and reported with the proper accounting system and budgeting methodology.
The fundamental rule in operating any system or operation in a quality manner is to have a measurement system in place that can accurately assess whether or not the system or operation is honestly achieving the desired result. The U.S. Government has been violating this fundamental rule for now 48 years. W. Edwards Deming, often called the father of Total Quality Control, said "You can't manage what you don't measure"! The U.S. Government has been using the wrong measurement tool for the last 48 years. What they are doing is like playing NFL football with the rule book for ping pong.
By operating the U.S. Government with Cash Accounting rather than the proper GAAP Accounting, we have no chance of setting a fiscal policy that is affordable and sustainable. Further, we really should be using Fiscal Gap Accounting to determine the true long term viability of any of our social benefit programs.
By using Cash Accounting, the U.S. Government is flying blind regarding the affordability of these future benefit promises. Our current financial status, as reported by GAAP Accounting, clearly shows that we have a total fiasco on our hands. As the following table shows, our current Government benefit promises are underfunded by $84.9 Trillion so it is absolute foolishness to even talk about adding more unfulfillable promises. And worse yet, the U.S. Government has already borrowed and spent the $5.5 Trillion that has been paid in by the U.S. taxpayers that was intended to pay future social benefit promises.
The U.S. Government is totally irresponsible when it comes to fiscal policy management. Until we get the criminals that are responsible for the current mess out of the U.S. Government and we elect responsible actors into the U.S. Government, any further talk about responsible financial planning and budgeting is absolutely foolhardy.
|Cash Deficit in FY2017
|GAAP Deficit in FY2017
|| $5.64 Trillion
|US Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|| $104.9 Trillion
|Total National Assets
Source: www.usdebtclock.org January 25, 2017
The current leadership of the U.S. Government is just arguing aimlessly without making decisions that are based on honest and sound accounting principles. The U.S. Government abandoned sound accounting principles in FY1969 when it adopted the "Unified Budget" and we have been accruing unpayable public liabilities at an accelerating pace ever since. The U.S. Government is now bankrupt because of this irresponsibility. Proper GAAP Accounting reports that the U.S. Government has made promises of $104.9 Trillion (US Unfunded Liabilities (GAAP)) that it has no way of fulfilling. How can these people look their constituents in the eye and continue to make these false and fraudulent promises?
The absolute first step in resolving our social benefit crisis is to adopt GAAP Accounting and commit to balancing the GAAP basis budget. Anything less than that is absolute foolishness.
The U.S. Government is committing fiscal and accounting fraud by operating with Cash Accounting. This has produced a massive Ponzi scheme that is enriching the U.S. ruling class by overpaying them by $20.0 Trillion, colossally enriching the U.S. upper class by undertaxing them by $104.9 Trillion, colossally cheating the U.S. Common Man by underfunding future benefit promises by $84.9 Trillion, and colossally cheating the rest of the Planet and each other by issuing monopoly money ($104.9 Trillion), fraudulently borrowed from the future Americans, so that the current Americans can buy goods and services with this monopoly money.
The U.S. Government must fix this Ponzi scheme problem first by establishing an honest accounting system and budgeting process. When that is done, they will then have a basis for determining what further can be done to improve healthcare coverage.
The sad answer is NOT MUCH. "You can't squeeze blood out of a turnip!" We just don't have the money. We are already short by $104.9 Trillion when we add our US Unfunded Future Liabilities of $84.9 Trillion to our National Debt of $20.0 Trillion.
As I say, the U.S. Government officials are just arguing aimlessly and wasting time and money until they adopt an honest accounting system and budgeting process. Not only are they wasting time and money, they are committing a crime! The biggest crime ever perpetrated!
Why do I say that the senior U.S. Government officials are criminals? Because they are borrowing monopoly money from the future Americans so that they overpay themselves. Because they are borrowing monopoly money from the future Americans so that they can enrich their upper class friends. Because they are borrowing monopoly money from the future Americans so the current Americans buy a lot of stuff that they cannot afford! Because they are not properly funding the benefit promises they have made to U.S. citizenry!
Authors Note: The Stock Market hit an all time high today with the Dow Jones Industrial Average breaking through the 20,000 barrier. The global stock markets will continue to go up as long as this USAPonzi fraud continues because the U.S. Government is creating imaginary-counterfeit money out of "thin air" by borrowing it from the future Americans at the rate of our GAAP basis spending which is $15.45 Billion every day (GAAP Deficit in FY2017 of $5.64T/365 = $15.45B). The creation of $104.9 Trillion of imaginary-counterfeit money over the last 48 years is what has caused this 48 year long bull market. We are appearing to get richer because we are borrowing/stealing money from the future Americans with fraudulent accounting.
And the U.S. Government is just making random financial promises that it has no intention or capability to fulfill because it is deferring the cost of these promises to the future Americans.
We must eliminate the current USAPonzi fraud before we can even attempt to address the universal healthcare problem.
I have published a website www.usaponzi.net that I think better explains how this fraud works to create a massive global wealth and income gap and to create false wealth and prosperity for the current Americans.
This fraud is explained in CliffsNotes format (USAPonzi CliffsNotes) and is also explained in much more detail on my website www.usaponzi.com and in my book “USAPonzi” which is available on Amazon in Kindle and Paperback formats and on my www.usaponzi.net website in both Kindle and PDF formats.
This is the biggest ($104.9 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