Op-Ed to The Dallas Morning News
April 2, 2015
As posted on www.usaponzi.com
Op-Ed submitted to the "Dallas Morning News" April 2, 2015
Copy of Op-Ed Email to Dallas Morning News April 2, 2015
USAPonzi-The Ponzi Economy of the USA
The U.S. Government has created a classic Ponzi Economy in the USA and in fact throughout the entire planet by overspending its income and by promising to pay social benefits that far exceed the U.S. taxpayer's financial capability to pay. The U.S. Government is using an accounting system that does not reflect the degree to which the Government is overspending and overpromising. The U.S. Government should be using GAAP (Generally Accepted Accounting Principles) Accounting instead of the current Cash Accounting.
The U.S. Government launched USAPonzi in Fiscal Year 1969 when Lyndon Baines Johnson proposed the "Unified Budget" that integrated the social benefit programs into the general operating budget. This Ponzi scheme has been operating for more than 46 years.
Because of this use of improper accounting, the U.S. Government is promising and currently paying unaffordable social benefits to U.S. residents but is not collecting the taxes required to pay the future social benefit promises.
Because the upper class citizens and businesses have not had to pay the taxes required to balance the GAAP basis budget they appear to have gotten richer by $101 Trillion.
Because the U.S. Government has been overspending on a cash basis, Government employees and supporting businesses have been overpaid by $18 Trillion.
Because the U.S. Government has not been funding the social benefit trust fund, the U.S. Government is short by about $88 Trillion of having the money required to pay the future social benefit promises. In fact the U.S. Government has "borrowed" and spent all of the $5 Trillion that has been paid into the social benefit trust fund.
Because the U.S. Government has undertaxed the upper class citizens and businesses by $101 Trillion, these financial liabilities have been deferred to the future U.S. taxpayer, who can never pay these liabilities, therefore the upper class citizens and businesses only appear to be super rich because this is counterfeit money.
The current fiscal policy is making the upper class appear to be super rich, is dramatically overpaying the people that are in or work for the Government, and is cheating everybody else by promising but not funding these social benefit promises.
Because the U.S. Government is running this massive Ponzi scheme, both the Government and the consumer appear to have a lot more money to spend than we can afford which makes most businesses appear to be much more profitable and makes our GDP appear to be nearly twice what it would be with a balanced GAAP basis budget.
This is how Warren Buffett got rich. This is why we have so many billionaires and millionaires. This is why the stock market goes up. This is why equity ownership is touted as the only place to invest right now. This is why the Fed cannot afford to raise interest rates. This is why we have so many fancy cars in the world. This is why we have so many fancy airplanes in the sky. This is why everyone can appear to own a smartphone. This is why Apple appears to be worth $750 Billion. This is why we have so much illegal immigration. This is why the price of oil got to $140 a barrel. This is why we started drilling for expensive oil. This is why there are skyscraper cities in the middle east. This is why there are vacant cities and airports in China. This is why professional athletes and entertainment stars can appear to make millions. $101 Trillion of counterfeit money can appear to do wonders for our economy.
But this is only possible because of the current U.S. Government fiscal policy; USAPonzi.
The U.S. citizenry must demand that the U.S. Government adopt GAAP Accounting and commit to a balanced GAAP basis budget in order to establish an equitable and sustainable fiscal policy for the Government of the United States of America.
John W. White