Op-Ed to the Wall Street Journal
USAPonzi-The Ponzi Economy of the USA
Aug 15, 2015 Emailed to WSJ Aug 17, 2015
As posted on www.usaponzi.com
To: Mark Lasswell
Editorial Features Editor
Wall Street Journal
The Fiscal Policy of the U.S. Government has created a Ponzi economy for the United States of America by dramatically overspending, dramatically overcommitting to spend on social benefits, and dramatically undertaxing the U.S. citizens and businesses.
This Fiscal Policy operates under the fundamental assumption that the future U.S. taxpayer will be able to pay an exponentially increasing tax bill, that currently stands at $97.3 Trillion, while the Fiscal Policy itself encourages more and more people to not work and collect the social benefit promises which of course will cause a reduction in future tax revenues. I would think that a reasonable person would understand that we have a basic flaw in this Fiscal Policy. We do have a fundamental flaw in this Fiscal Policy, it is a Ponzi scheme.
The U.S. Government is overpaying the direct and indirect Government employees and the Government related businesses, is committing to pay social benefits to U.S. residents that greatly exceed the U.S. taxpayer's financial capability, is not funding these social benefit promises, and is intentionally and dramatically undertaxing the current U.S. taxpayer. The U.S. Government is attempting to conceal this overspending, overcommitting, and undertaxing by using an improper accounting methodology by using Cash Accounting vs. the proper GAAP Accounting. This is creating a massive and exponentially increasing amount of public liabilities (currently $97.3 Trillion of GAAP basis Unfunded Liabilities) for the future U.S. taxpayer that can never be paid.
This Fiscal Policy has produced "The Biggest Ponzi Scheme on the Planet", which I have named USAPonzi, that was launched by the introduction of the "Unified Budget" by LBJ and the 90th Congress for FY1969. The U.S. Government has been operating USAPonzi for now more than 46 years.
This corrupt and fraudulent Fiscal Policy has had the following economic impact on the U.S. and global economy:
1) USAPonzi has given the United States of America the false appearance of economic, political, and military dominance over the rest of the Planet.
2) USAPonzi has given the current generation(s) (1969-present) of U.S. citizens an artificially high standard of living, that cannot be sustained, by accelerating the consumption rate for the U.S. consumer. The U.S. Government has been giving counterfeit money ($97.3 Trillion of GAAP basis Unfunded Liabilities) to essentially all U.S. citizens and businesses for the last 46 years by either overpaying them or undertaxing them.
3) USAPonzi has set the stage for what will have to be a much lower standard of living for the next generation(s) of U.S. citizens since we have been borrowing from the future to finance the current economic activity.
4) USAPonzi has set the stage for a devastating economic and social catastrophe that will occur when USAPonzi implodes.
5) USAPonzi has not funded the social benefit promises so many of the middle and lower class U.S. citizens are headed for the same social and economic turmoil, even financial devastation, that the people in Greece are now experiencing, that will occur when USAPonzi implodes.
6) USAPonzi has dramatically undertaxed the U.S. upper class allowing them to live opulent even super opulent lifestyles and causing them to appear to be wealthy even super wealthy but with counterfeit money that will evaporate when USAPonzi implodes.
7) USAPonzi has dramatically overpaid the U.S. ruling class, the direct and indirect Government employees, and the Government related and supported businesses giving the ruling class an opulent lifestyle and making many of them wealthy but with counterfeit money that will evaporate when USAPonzi implodes.
The U.S. general public needs to be informed about this coming economic, social, and financial crisis that the implosion of USAPonzi will create.
John W White
USAPonzi-The Ponzi Economy of the USA
The Government of the United States of America has been operating a massive ($97.3 Trillion) Ponzi scheme, which I have named USAPonzi, since Fiscal Year 1969 by promising that it will pay social benefits to U.S. residents that are unaffordable, and not funding these promises, creating $79.0 Trillion of Unfunded Future Liabilities. The U.S. Government has also been dramatically overspending its tax receipts, including overpaying themselves, the direct and indirect U.S. Government employees, and the Government related businesses, creating $18.3 Trillion of National Debt.
As a result, the U.S. Government now has US Unfunded Liabilities (GAAP) of $97.3 Trillion that were created by undertaxing the U.S. citizens and businesses making them, primarily the upper class, appear to be $97.3 Trillion richer. The U.S. Government attempts to conceal this Ponzi scheme by using Cash Accounting versus the proper GAAP (Generally Accepted Accounting Principles) Accounting; reporting a Cash Deficit of $0.5 Trillion in FY2015 when our "real" deficit is a GAAP Deficit of $5.5 Trillion.
By using Cash Accounting rather than the proper GAAP Accounting and by overspending its cash receipts; the U.S. Government is dramatically undertaxing the current U.S. taxpayer making the U.S. citizens and U.S. businesses appear to be $97.3 Trillion richer than they would be with honest accounting, is overpaying themselves and the direct and indirect government employees incurring National Debt of now $18.3 Trillion, and is cheating the common man and the underprivileged by $79.0 Trillion by not funding these social benefit promises.
This fiscal policy has passed this $97.3 Trillion of public liabilities forward to the future U.S. taxpayer and is adding $15.1 Billion (GAAP Deficit of $5.5T/365=$15.1B) more to these public liabilities every day. This $97.3 Trillion is now circulating in the global economy as counterfeit money since it is to be paid by the future U.S. taxpayer but can never be paid since the U.S. Government is already spending more every year, even on a cash basis, than the U.S. taxpayer is paying in taxes.
By overspending, overcommitting, undertaxing, and using corrupt and fraudulent accounting; the U.S. Government is running "The Biggest Ponzi Scheme on the Planet". This Ponzi scheme (USAPonzi) makes the United States appear to be much more prosperous and productive by dramatically undertaxing the U.S. citizens and businesses creating GAAP basis Deficit spending that is expected to be $5.5 Trillion in FY2015 and creating what is now a total of $97.3 Trillion of GAAP basis Unfunded Liabilities.
The U.S. Government is corrupt and fraudulent by using an improper accounting system to make the United States appear to be much more wealthy, prosperous, and successful than it really is. The U.S. Government is lying to the U.S. Citizens by promising them that it will pay social benefits that it cannot afford and then making no attempt to fund these promises. The U.S. Government is cheating the common man and the underprivileged by dramatically undertaxing the upper class to make them super wealthy and by paying themselves and the direct and indirect employees of the Government much more than the taxpayer can afford rather than funding these social benefit promises.
The upper class has been willing and eager for the U.S. Government to continue to use this corrupt and fraudulent accounting system because they have benefited massively ($97.3 Trillion is a lot of money for them to share even though it is counterfeit money) by this Ponzi scheme. LBJ was the scoundrel that set up this scheme by introducing the "Unified Budget" in FY1969 but the ruling class liked it so much that they have agreed among themselves to let it continue for now more than 46 years.
The U.S. Government's Ponzi scheme (USAPonzi) is systematically creating counterfeit money out of "thin air" at the rate of our unreported, but real, GAAP basis Deficit Spending and stuffing it into the pockets of the upper class U.S. citizens and businesses.
The U.S. Government is systematically taking from the poor and giving to the rich and has been doing so for now more than 46 years.
By continuing with the current fiscal policy, the U.S. Government would, in theory, create infinite public liabilities (US Unfunded Liabilities (GAAP)) and infinite private assets (private net worth). This is why the stock market keeps setting new records! This is why we have such a "wealth gap"! This is why the rich are getting richer and the poor are getting poorer!
This is why the United States of America appears to be the most dominant economic, political, and military power the Planet has ever known!
And all because Lee Harvey Oswald assassinated JFK (See The Oswald Financial Bubble!).
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.
See www.usaponzi.com for more information about this Ponzi scheme.
Financial data presented in this Op-Ed was sourced from www.usdebtclock.org as of August 15, 2015.
John W White
Retired Information Technology Executive