Open Letter to U.S. Citizens "The End Game for USAPonzi!"
U.S. Government Fraud is cheating the Common Man!
U.S. Government Fraud is causing the Wealth Gap!
October 26, 2015 Emailed to SEC WSJ NYT DMN Oct 29, 2015
As Posted on www.usaponzi.com
If you are not a member of The Ruling Class or The Upper Class, you are being cheated by the U.S. Government.
The U.S. Government (The Ruling Class) is operating with a corrupt and fraudulent Fiscal Policy so that it can overpay the U.S. Government workers and U.S. Government related businesses, so that it does not have to fund the social benefit promises it has made, and so that it can dramatically undertax The U.S. Upper Class citizens and businesses.
The U.S. Government is operating with a Ponzi scheme (USAPonzi) Fiscal Policy by spending and committing to spend much more than the current U.S. taxpayers can afford, dramatically and intentionally undertaxing the current U.S. taxpayers relative to this spending and committing to spend, deferring the resulting liabilities to the future U.S. taxpayers, and attempting to conceal this overspending, overcommitting, and undertaxing by using Cash Accounting rather than the proper GAAP Accounting.
The U.S. Government is borrowing money to overpay the U.S. Government workers and U.S. Government related businesses with no plan, intent, or ability to pay back that debt. The U.S. Government is pretending to collect money from the current U.S. taxpayers to fund the future social benefit promises that it has made, but is immediately borrowing all of the money from the social benefit trust fund and spending it to help overpay the U.S. Government workers and the U.S. Government related businesses. The U.S. Government is dramatically undertaxing The U.S. Upper Class citizens and businesses by deferring massive public liabilities to the future U.S. taxpayers.
By operating with this corrupt and fraudulent Fiscal Policy (USAPonzi):
The Ruling Class is lining the pockets of The Ruling Class with $18.4 Trillion by incurring Debt!
The Ruling Class is dramatically lining the pockets of The Upper Class with $98.8 Trillion by undertaxing them on a GAAP basis and deferring these tax liabilities to the future U.S. Taxpayers! These deferred tax liabilities are referred to as US Unfunded Liabilities (GAAP) on www.usdebtclock.org.
The Ruling Class is cheating the Common Man by $98.8 Trillion by overpaying The Ruling Class by $18.4 Trillion (our National Debt) and by not funding the future benefit promises that The Ruling Class has made that now total $80.4 Trillion (our Unfunded Future Liabilities).
This means that the people that are expecting to get future social benefits cannot be paid at the currently promised level without the U.S. Government borrowing an ever increasing amount of money which of course the U.S. Government cannot do.
The Ruling Class is getting overpaid with borrowed money, The Upper Class is getting filthy rich by not paying proper taxes, and The Lower and Middle Classes are getting paid their promised benefits today but they will be screwed in the long run because the U.S. Government has not accrued the money to pay the future benefit promises.
This corrupt and fraudulent Fiscal Policy produces a Ponzi scheme, which I have named USAPonzi, that is artificially stimulating the U.S. and global economy which makes things look not too bad for The Common Man, look great for The Ruling Class, and look really really great for The Upper Class. But it is setting us up for a financial catastrophe of epic proportions because the future U.S. taxpayer is now expected to pay for our overspending and overcommitting over the last 47 years ($98.8 Trillion) and these Unfunded Liabilities are increasing exponentially.
The U.S. Government is using a simple little accounting trick, Cash Accounting vs. GAAP Accounting, in an attempt to conceal this Ponzi scheme. The U.S. Government is making it look like The Upper Class citizens and businesses are getting rich by deferring financial liabilities to the future U.S. taxpayer who is incapable of paying these deferred liabilities. Most (80+%) of the apparent Private Net Worth of the U.S. citizens and businesses is counterfeit money created by undertaxing the U.S. citizens and businesses on a GAAP basis (See Creating Counterfeit Wealth!).
By undertaxing The Upper Class by $98.8 Trillion and deferring the resulting financial liabilities to the future U.S. taxpayers, the U.S. Government has magically created $98.8 Trillion of counterfeit money that it has given to The Upper Class. This windfall wealth gain by The Upper Class from the U.S. Government fraud and corruption of USAPonzi is the cause of the Wealth Gap between The Upper Class and The Common Man that has become so visible over the last few years.
The End Game for USAPonzi--Everybody gets screwed!
But this Wealth Gap is a "Phantom Wealth Gap" because most of the wealth of The Upper Class has been created out of "thin air", i.e. it is counterfeit money, since it only has value if the future U.S. taxpayers can pay the deferred liabilities represented by US Funded Liabilities (GAAP) that were created by USAPonzi. In "The End Game for USAPonzi" everybody gets screwed. The Common Man does not get his/her social benefits at the promised levels because the U.S Government has not accrued for them, the U.S. Government can't continue to borrow money to overpay The Ruling Class because the U.S. Government's credit will be ruined so we can only pay The Ruling Class with real tax revenue, and the wealth of The Upper Class will evaporate by the amount that US Unfunded Liabilities (GAAP) assesses at the time when USAPonzi implodes.
Honest accounting and a balanced GAAP basis budget will level the playing field for the Common Man, however that level playing field will be at a much lower standard of living for all Americans than what we enjoy today in the fantasy world created by USAPonzi.
The USAPonzi Economy vs. The USA "Real" Economy
The USAPonzi Economy makes the fundamental assumption that the future U.S. taxpayers will be able to pay for ever expanding, i.e. infinite, US Unfunded Liabilities (GAAP) while the facts are that in the USA "Real" Economy the future U.S. taxpayers will only be able to pay about 2/3rds of what the current U.S. taxpayers are paying because the current U.S. GDP is overstated by 1.6X because of the artificial stimulus of USAPonzi (see U.S. "Real" GDP FY2015 with $5.5T Deficit). USAPonzi is causing some severe distortions to our U.S. and global economy and is giving us a false sense of prosperity and wealth (See The Distortions of USAPonzi).
The difference between an assumed infinite supply of future U.S. Government tax revenue in the "USAPonzi Economy" and the reality of a fraction, and in fact a diminishing fraction as people drop out of the work force, of current U.S. Government tax revenues in the coming years is setting us up for some very difficult times over the next several years. The current U.S. financial leverage, U.S. Total Financial Liabilities as a percent of GDP, is 4.1X what it was at the start of "The Great Depression" so the economic downturn that will occur when USAPonzi implodes could be even more severe than "The Great Depression" (See U.S. Total Financial Leverage 4.1X 1929).
See The Implosion of USAPonzi for my more detailed prediction of what will happen at "The End Game for USAPonzi".
The ever expanding US Unfunded Liabilities (GAAP) that USAPonzi is producing with GAAP basis Deficit Spending can only lead to a technical bankruptcy of the U.S. Government (See Dealing with National Bankruptcy).
We have a bunch of Scoundrels, Liars, and Cheaters in the U.S. Government that are responsible for this fraud and corruption and The Upper Class is no better because they are willing to go along with this fraud and corruption because it is appearing to make them filthy rich with counterfeit money.
This situation can only be resolved by the U.S. Government adopting GAAP Accounting and committing to a balanced GAAP basis budget. This will ensure an equitable and sustainable Fiscal Policy.
The financial data presented in this commentary were sourced from www.usdebtclock.org as of October 26, 2015.
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