The Stock Market Bubble 151122
November 22, 2015
As published on November 22, 2015 in my first book on USAPonzi “USAPonzi”.
USAPonzi has created a “47 year-long” bull market in equities that began in FY1969 when the U.S. Government adopted the Unified Budget.
The U.S. Government, by creating massive amounts of counterfeit money and handing it out to the U.S. citizens and businesses, has made it possible for consumers to buy things they could not otherwise afford. The U.S. Government pays U.S. Government employees more than the U.S. taxpayers can afford giving them extra money to spend. The U.S. Government pays social benefit recipients more than the U.S. taxpayer can afford giving them extra money to spend. The U.S. Government undertaxes the current U.S. taxpayers giving them extra money to spend. In Fiscal Year 2016, this overpaying and undertaxing amounts to $5.87 Trillion of “free money” on a GAAP basis.
The U.S, Government is passing out $5.87 Trillion of counterfeit money to the current U.S. citizens and businesses in FY2016 so that they can buy whatever they want by deferring the cost of these purchases to the future U.S. taxpayers. This makes essentially all businesses appear to be more successful and more valuable. As of Nov 22, 2015, the U.S. Government has handed out $99.8 Trillion of counterfeit money to create this massive purchasing power.
This is why the Stock Market appears to be the only place to invest your money these days. The U.S. Government is handing out massive amounts of counterfeit money (free money) for the U.S. consumer to use to buy whatever they may want, houses, cars, trucks, smartphones, clothes, food, football tickets, etc. With the current fiscal policy, the amount of counterfeit money the U.S. Government gives to the U.S. citizens and businesses tends to grow exponentially therefore with current policy the Stock Market will continue to tend toward infinity.
Where does the U.S. Government get this $99.8 Trillion of counterfeit money; it borrows it from the future U.S. taxpayers. Why does not this show up in the U.S. Government financial reporting, because the U.S. Government is using Cash Accounting rather than the proper GAAP Accounting.
End of commentary