November 22, 2015
This is a story about USAPonzi, the corrupt and fraudulent fiscal policy of the U.S. Government, that I contend is "The Biggest Ponzi Scheme on the Planet".
This Ponzi scheme fiscal policy was caused by two significant events:
1) The assassination of JFK on Nov 22, 1963 that got a scoundrel, Lyndon Baines Johnson, into the White House.
2) The approval by the 90th Congress of LBJ's proposal for a "Unified Budget" in January of 1968.
Author's Note: I say that LBJ was a scoundrel because he introduced the "Unified Budget" that would produce this Ponzi scheme fiscal policy.
The "Unified Budget" allows for the commingling of funds within the U.S. Government's finances so that the U.S. Government can borrow from the social benefit trust funds to pay for general operating expenses. It also means that the U.S. Government continued to use Cash Accounting rather than the proper GAAP Accounting for its budgeting, tax assessing, and financial reporting. As a result, the U.S. Government has not been accruing the money to pay for their social benefit promises for the last 47 years.
The U.S. Government has gotten "too big" because it has been spending the social benefit tax revenues on general operating expenses and has even been spending in excess of total tax revenues. The combination of these issues puts us in a position of having $18.7 Trillion of Debt and $81.1 Trillion of Unfunded Future Liabilities for a total of $99.8 Trillion of US Unfunded Liabilities (GAAP) as posted on usdebtclock.org as of Nov 22, 2015.
The U.S. Government is now operating with a fiscal policy that is spending and committing to spend much more than the U.S. taxpayers can afford and since fiscal year FY1969 the U.S. Government has been incurring a significant budget deficit each year. The public liabilities that result from this deficit spending are deferred to the future U.S. taxpayers by undertaxing the current U.S. taxpayers. Because the U.S. Government is assessing and reporting its financial condition with Cash Accounting rather than the proper GAAP (Generally Accepted Accounting Principles) Accounting, the magnitude of the public liabilities that this Ponzi scheme fiscal policy is incurring is dramatically understated.
USAPonzi has caused dramatic issues of unfairness between various groups of U.S. citizens and in fact for citizens throughout the planet. This inequity is caused by the fact that this fiscal policy is producing counterfeit money that is not being equitably distributed to all U.S. citizens. By undertaxing the current U.S. citizens and U.S. businesses and deferring the public liabilities to the future U.S. taxpayers, this has the effect of creating counterfeit money. The current U.S. taxpayers do not have to pay for these liabilities and the future U.S. taxpayers cannot pay for these liabilities so the private money that appears to be gained by this undertaxing is counterfeit since the public liabilities are to be paid by an incapable payer. The U.S. Government now has US Unfunded Liabilities (GAAP) of $99.8 Trillion and the global financial system has counterfeit money of $99.8 Trillion that has been distributed into it as of Nov 22, 2015.
USAPonzi is now causing the following issues:
- USAPonzi is distributing counterfeit money to essentially all U.S. citizens and businesses by either overpaying them or undertaxing them. The citizens in other parts of the planet do not have the opportunity to receive this counterfeit money.
- USAPonzi is creating an artificially elevated lifestyle for all U.S. citizens and for many citizens in other parts of the planet because of this counterfeit money.
- USAPonzi is paying social benefit recipients much more than the U.S. taxpayer can afford with counterfeit money.
- USAPonzi is paying U.S. Government workers and U.S. Government related businesses much more than the U.S. taxpayer can afford with counterfeit money.
- USAPonzi is undertaxing the upper class U.S. citizens making them appear to be very rich with counterfeit money.
- USAPonzi is undertaxing the upper class U.S. businesses making them appear to be very profitable, rich, and valuable with counterfeit money.
- USAPonzi is not funding the future social benefit promises. This is setting up the social benefit recipients for financial devastation because many of them are relying on these benefits for their very livelihoods and the U.S Government cannot borrow an unlimited amount of money to continue to pay these promises.
Because of these issues, USAPonzi is "Creating Counterfeit Wealth and Prosperity" and is “Cheating the Common Man and the Planet”.
The U.S. Government has overpaid the U.S. Government workers and related businesses by $18.7 Trillion. The U.S. Government has made promises to pay pensions, veteran's benefits, and social benefits of $81.1 Trillion more than it has collected from the U.S. citizens and businesses and therefore it cannot pay these benefits. Because of these two items the U.S. Government now has debt and virtual debt (Unfunded Future Liabilities) of $99.8 Trillion and the upper class U.S. citizens and businesses appear to be $99.8 Trillion richer because they did not have to pay the taxes that would be required to pay for these U.S. Government expenditures and promises.
With the current fiscal policy (USAPonzi), both our Debt and our Unfunded Future Liabilities are continuing to expand at an exponentially increasing rate. In FY2016, the current fiscal year, our National Debt is projected to increase by $0.433 Trillion and our Unfunded Future Liabilities will increase by $5.44 Trillion for a total "GAAP Deficit" in FY2016 of $5.87 Trillion. This will make the upper class appear to be richer by $5.87 Trillion, will overpay the ruling class by $0.433 Trillion, will cheat the Common Man by $5.87 Trillion, and will stimulate the economy to a projected GDP of $18.2 Trillion when without this $5.87 Trillion of GAAP basis deficit spending our GDP would be about $11.1 Trillion (see Creating Counterfeit Prosperity).
The U.S. Government is overspending, overcommitting, undertaxing, lying, and bankrupt.
This book will explain how a scoundrel (LBJ) and trust in a corrupt and fraudulent U.S. Government have created a fantasy world fiscal policy, a massive Ponzi scheme, that has now been operating for 47 years.
The USAPonzi fiscal policy of the U.S. Government has allowed the United States to appear to be much more productive and prosperous than we really are. It has allowed us to fill the planet with a military capability that we cannot afford. It has allowed us to fill our cities and our countrysides with opulent housing that we cannot afford. It has allowed us to fill our roads with cars that we cannot afford. It has allowed us to fill our skies with airplanes that we cannot afford. It has allowed us to fill our resorts with entertainment facilities that we cannot afford. It has allowed us to fill our educational institutions with many professors, research programs, buildings, and sports venues that we cannot afford. It has allowed us to fill our hospitals with healthcare services that we cannot afford. It has allowed us to fill our pharmacies with medicines we cannot afford. It has allowed us fill our houses with appliances and electronics that we cannot afford. It has allowed us to fill our pockets with smart phones that we cannot afford. And it has allowed us to fill our tummies with food and drink that we cannot afford.
The future U.S. taxpayers are now expected to pay for all of this stuff that we have bought and built that we cannot afford and the future U.S. taxpayers now owe $99.8 Trillion which of course they can never pay.
This is the story of USAPonzi, "The Biggest Ponzi Scheme on the Planet".
Financial data in this book was sourced from usdebtclock.org Nov 22, 2015.
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