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

Oswald made Buffett, Gates, Jordan, Woods, and all the other "1%ers" 7X richer!
Sep 16, 2014


Did you ever wonder what it is about our society that makes putting a 9.5 inch rubber sphere thru an 18 inch metal ring while wearing fancy shoes and 15 years later tearing tags out of T-shirts while flying to the next personal appearance worth $100 million a year?


Did you ever wonder what it is about our society that makes putting a 1.7 inch dimpled sphere into a 4.25 inch hole in the ground that is a few hundred yards away with a stick worth $92 million a year?


Did you ever wonder what it is about our society that allows some people to get fabulously wealthy while other people that seem to be working just as hard are just barely eking out a living or even worse having to resort to assistance from the Government to support their family?
  


Well, for the most part, we are a merit based society and the most talented performers tend to receive the largest rewards. And most people do not have a problem with that. However the U.S. economy is dramatically distorted and the reward system is dramatically skewed because of the way our U.S. Government does its accounting.
 

The opportunity for this distortion and skewing in our rewards system began when Lee Harvey Oswald assassinated JFK and LBJ became president. LBJ might never have become president were it not for this very unfortunate incident. As president, LBJ inherited a bad situation in Vietnam but pursued the war vigorously and as a result created a large Vietnam War debt. As LBJ prepared to leave office, he was determined to take action to cover up the cost of the Vietnam War and resorted to borrowing the social benefit trust funds to pay for the war, establishing the "Unified Budget", and continuing to use Cash Accounting.


There is no way of knowing if some other president might have done the same thing but this was clearly done by LBJ to make him look good to the U.S. citizenry by presenting a "balanced budget" proposal to Congress in January of 1968 for FY1969. He of course did not "balance the budget" he just took all of the money from the "national retirement nest egg" and used it to pay for the Vietnam War costs in FY1969. It was a lie to say that he "balanced the budget", but most people did not understand that it was a lie and those that did know were prepared to let it slip because it established a financial system that would allow the Government to dramatically overspend without telling the U.S. citizenry.


The U.S. Government clearly knew prior to FY1969 that they should be maintaining trust funds to finance future social benefit commitments because it was from these funds that LBJ "borrowed" the money to pay off the war debt. However, LBJ was able to convince Congress that they did not need to continue to finance these trust funds since if he admitted that these trust funds needed to be funded he could not claim that he had balanced the budget. This decision basically set a precedent that continues to this day that the only financial report that gets communicated to the U.S. citizens, and for that matter to the U.S. congress, is the cash deficit and the cash debt. This has created what we now call Unfunded Liabilities that are much talked about but not really acknowledged because of the continued use of Cash Accounting. These Unfunded Liabilities are just too massive ($79.8 Trillion as of Sept 1, 2014) to even hope to tackle, so the U.S. Government chooses to ignore them.


The reason that USAPonzi skews the reward system is because the Cash Accounting system does not tax the wealthy to pay for the social benefits for the elderly and the underprivileged and therefore over the last 46 years the U.S. citizens and businesses have been undertaxed by $97.5 Trillion. This means that the rewards for most of the top performers have been nominally 7X what they should have been (See U.S. Total Assets Bubble) with proper accounting by the U.S. Government. This is true for Warren Buffett, Bill Gates, Michael Jordan, Tiger Woods, AND all of the other "1%ers".


Introducing this $97.5 Trillion of counterfeit money into our economy and our financial system dramatically distorts the value of money, the value of labor, the value of companies, the value of real estate, and the value of essentially every asset class.


Like I say, another president might have tried to pull the same trick that LBJ did, but history confirms that LBJ was the one that actually did the deed and Lee Harvey Oswald is the one that gave him the opportunity to implement USAPonzi.


This is what created USAPonzi!  Now the "ruling class" and the "1%ers" do not want to acknowledge the fact that the Government is using corrupt and fraudulent accounting since it will cause the apparent net worth of the wealthy to drop by nominally 86%, will dramatically shrink the size of the U.S. (and global) economy, will dramatically shrink the size of the U.S. Government, and will dramatically cut into the financial gravy train for Government officials and employees.


While USAPonzi has already introduced $97.5 Trillion of counterfeit money into our economy and our financial system over the last 46 years, it is continuing to introduce another $17.6 Billion of counterfeit money every day. But this counterfeit money will evaporate when USAPonzi implodes and our economic activity will be reduced by nominally 45% (See U.S. "Real" GDP FY2014).


The losers in this Ponzi scheme, when USAPonzi implodes, will be the recipients and potential recipients of the social benefit promises when it becomes evident that the current social benefit promises cannot possibly be met, the direct and indirect employees of the U.S. Government when their jobs and pensions are diminished or vanish, the top performers when their compensation is reduced to nominally 1/7th of current levels, and the asset owners when it becomes evident that the value of their assets has been massively (nominally 7X) overstated by USAPonzi.


Next Page: Favoring the Rich and Cheating the Common Man