The Biggest Ponzi Scheme on the Planet-The U.S. Government
"American Economic Exceptionalism Explained"                     USAPonzi                                      by John W. White   Mar 29, 2013

December 20, 2013

Open Letter to:
     The Supreme Court of the United States of America
     Eric Holder               U.S. Attorney General   
     The President of the United States of America  
     The Congress of the United States of America
     Harry Reid                Senate Majority Leader
     John Boehner           Speaker of the House
     John Cornyn             Texas Senator
     Ted Cruz                   Texas Senator
     Ben Bernanke           Outgoing Federal Reserve Chair
     Janet Yellen              Incoming Federal Reserve Chair            
     Paul Ryan                 House Budget Committee Chair
     Patty Murray             Senate Budget Committee Chair
     Tom Coburn              U.S. Senator (R) Oklahoma
     Erskine Bowles         Co-Chair, National Commission on Fiscal Responsibility and Reform
     Alan Simpson           Co-Chair, National Commission on Fiscal Responsibility and Reform
     David A. Vaudt          Chairman Government Accounting Standards Board
     Steve Forbes            American Publishing Executive
     Jim Cramer               Television Personality-CNBC
     David Faber              Television Personality-CNBC
     Joe Kernen               Television Personality-CNBC
     Larry Kudlow             Television Personality-CNBC
     Steve Liesman          Television Personality-CNBC
     Rick Santelli              Television Personality-CNBC
     Andrew Ross Sorkin Television Personality-CNBC
     Neil Cavuto               Television Personality-FOX News
     Lou Dobbs                Television Personality-FOX News
     Bill O'Reilly                Television Personality-FOX News
     Greta Van Susteren  Television Personality-FOX News
     Bill Moyers                 American Journalist               
     Rush Limbaugh         Radio Personality
     Doug Casey               Economic Newsletter-CaseyResearch.com
     George Friedman      Global Intelligence Newsletter-Stratfor.com
     Michael Tanner         Senior Fellow-Cato Institute
     John Mauldin             Financial Newsletter-MauldinEconomics.com
     John Williams            Financial Newsletter-ShadowStats.com
     Robert Shiller             Nobel Laureate in Economics
     Paul Krugman            Nobel Laureate in Economics
     Jeremy Siegel            Economics Professor-Wharton
     Laurence Kotlikoff      Economics Professor-Boston University
     Gerard Baker              Editor-in-Chief Wall Street Journal    
     Scott Burns                 Newspaper Columnist-Dallas Morning News
     Will Deener                 Newspaper Columnist-Dallas Morning News
 

The fiscal policy of the Government of the United States of America is corrupt and fraudulent!   For the last 45 years the U.S. Government has been using fraudulent accounting techniques to understate their out of control committing and spending of the U.S. taxpayer's money.   By using Cash Accounting to assess and report our financial condition they have been able to conceal from most people in the U.S. and the rest of the world just how much in debt we truly are.   We MUST begin using an accounting system that reflects our true financial health.

Every Member of Congress and every senior member of the Administration should be indicted on fraud and corruption charges if they vote for or support any financial budget that is based on our current Cash Accounting methodology. 

Our current financial reporting is just as fraudulent as that which was used by the Madoff scheme and he was quickly sent to prison for life.

Our current financial reporting is just as fraudulent as that which was used by Enron and the key executives there were sent to prison.

Our current financial reporting is just as fraudulent as that which was used by Worldcom and the key executives there were sent to prison.

The U.S. Government financial fraud is just as egregious as these frauds but massively more serious (more than 1000X) since it is concealing the fact that nearly half of the people in the United States think they will be getting social benefit payments from the Government but the promised money is just not there to be spent but our accounting system does not appropriately report that condition.

I realize that none of the people in Washington were directly involved in starting this fraudulent accounting, that was done in 1968 by the Lyndon Johnson administration, but by continuing to accept the use of this fraudulent accounting each member of Congress that votes in favor of a budget based on this fraudulent accounting is immediately complicit in the fraud and therefore subject to indictment on fraud charges.

The www.usaponzi.com  website includes a spreadsheet model (USAPonzi Fiscal Model) of the U.S. Government's financial condition for the next ten years and shows both the current Cash Accounting numbers and the GAAP Accounting numbers.   It shows that we are reporting a current Cash deficit of about $700 Billion (and that is bad enough to put a chill on your bones) but the much more informative GAAP deficit shows it to be about $6 Trillion.  

We have a U.S. Economy that is riding on the full faith and credit of the Federal Government and we are essentially in debt (Fiscal Gap) by $205 Trillion with an income stream of currently about $2.8 Trillion per year to both pay our current bills and to service that debt.  Our current Cash Accounting methodology does not appropriately reflect the magnitude of this current liability.  As is evident by this assessment the "virtual interest" on our "virtual debt" is more than twice as big as our "real" income.  

The further complication will be that by taking the actions necessary to resolve this issue we will dramatically reduce that real income stream.  But we really have no choice as we must assess and report properly before we can truly fix the problem.

This problem must be communally accepted by Congress and the U.S. citizenry but prompt action by Congress to consider and approve the INFORM ACT (www.theinformact.org) is essential to getting the United States of America on a sustainable fiscal path.

John W. White
Retired Information Technology Executive
214-762-1678
jwwhite38@outlook.com
www.usaponzi.com
Plano, TX