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

The Dow 20,000 Imaginary Milestone
January 27, 2017  Emailed to WSJ/NYT/DMN on January 27, 2017

The following is an Op-Ed to "The Wall Street Journal", "The New York Times", and "The Dallas Morning News" that provides further explanation of the Ponzi scheme fiscal policy (USAPonzi) that the U.S. Government has been operating since FY1969 and how this fraud is affecting the stock market.

The Dow 20,000 Imaginary Milestone

January 27, 2017

The Dow Jones Industrial Average hit a major milestone of 20,000 on January 25, 2017. This level for the stock market is not at all surprising, because this is an imaginary milestone.

The U.S. Government is operating a Ponzi scheme that has deferred massive public liabilities ($104.9 Trillion of US Unfunded Liabilities (GAAP)) to the future Americans which has given the current Americans $104.9 Trillion. But since the future Americans can never pay these deferred liabilities, this money is what I call imaginary-counterfeit money. The U.S. Government has borrowed $104.9 Trillion from the future Americans and given it to the current Americans. The U.S. Government imagines that the future Americans can pay this money so it is imaginary money but the future Americans can never pay this money so it is counterfeit money.

The U.S. Government is creating money out of "thin air", I call it imaginary-counterfeit money, by deferring public liabilities to the future Americans. The current Americans are buying goods and services with this imaginary-counterfeit money. Companies are making imaginary-counterfeit profits from these imaginary-counterfeit purchases which creates imaginary-counterfeit earnings-per-share which appears to increase stock value so the investors use their imaginary-counterfeit capital to purchase the stock in these companies that have imaginary-counterfeit earnings.

The more imaginary-counterfeit money the U.S. Government creates with GAAP basis deficit spending, the more the stock market will go up. The U.S. Government has created $104.9 Trillion of imaginary-counterfeit money to get the Dow Jones average to 20,000 and the U.S. Government is creating more imaginary-counterfeit money every day ($15.45 Billion a day), and at an increasing rate, so the stock market will continue to go up at an increasing rate until the U.S. Government terminates this Ponzi scheme fiscal policy.

The U.S. economy is operating on the imaginary-counterfeit money that is being produced by the GAAP basis deficit spending of USAPonzi. The U.S. Government has fraudulently given the current Americans $104.9 Trillion and is giving them $15.45 Billion more every day (GAAP Deficit in FY2017 of $5.64T/365 = $15.45B). This money is artificially increasing the wealth and prosperity in the United States and is causing the stock market to continuously go up. This fiscal policy, if continued, will create an infinite amount of imaginary-counterfeit money which will cause the Dow Jones Average to go to infinity.

So it is not at all surprising that the Dow Jones average hit the 20,000 level. The Ponzi scheme fiscal policy of the U.S. Government is borrowing money from the future Americans which is producing imaginary money, imaginary wealth, imaginary prosperity, imaginary corporate earnings, and an imaginary stock market.

By borrowing $104.9 Trillion from the future Americans, the current Americans have been able to buy a lot of stuff that they cannot afford. This makes the companies selling this stuff look very profitable and because the U.S. Government has given the current Americans $104.9 Trillion of imaginary-counterfeit money by undertaxing them so the current Americans have a lot of money to buy both the goods and services of these companies and the stock in these artificially profitable companies.

The U.S. Government is pumping up U.S. economy and the stock market by borrowing imaginary-counterfeit money (currently $104.9 Trillion) from the future Americans and giving it to the current Americans. This fraudulent fiscal policy will cause the stock market to "go to the moon".

When USAPonzi implodes, this imaginary-counterfeit money (currently $104.9 Trillion) will evaporate and I estimate that the stock market will drop by 80-85%. I get that estimate because U.S. private net worth, which is reported on as Total National Assets, is $127.6 Trillion but $104.9 Trillion of that is the imaginary-counterfeit money that the U.S. Government has borrowed from the future Americans with GAAP basis deficit spending which is reported on as US Unfunded Liabilities (GAAP) ($104.9T/$127.6T = 0.82 or 82%).

This estimate makes the basic assumption that the stock market valuation is a proxy for total private net worth. It could well be that the stock market will fall more than this estimate because the stock market has the realtime "mark to market" attribute that other asset classes do not have. When the U.S. and global economy recognizes the loss of this $104.9 Trillion of imaginary-counterfeit money and the loss of $5.64 Trillion of annual deficit spending by the U.S. Government, the stock market will not be the only thing that causes financial and economic trauma (See The Implosion of USAPonzi).

National Debt 
$20.0 Trillion 
Cash Deficit in FY2017  $0.59 Trillion 
GAAP Deficit in FY2017  $5.64 Trillion 
US Unfunded Future Liabilities  $84.9 Trillion 
US Unfunded Liabilities (GAAP)   $104.9 Trillion 
Imaginary-Counterfeit Money  $104.9 Trillion 
Total National Assets  $127.6 Trillion 

Source: January 27, 2017

But in the mean time, the imaginary stock market, created by USAPonzi, will continue on its path toward infinity until USAPonzi implodes. Dow 20,000 is just an imaginary milestone along this path toward infinity.

I have published a website that I think better explains how this fraud works to create a massive global wealth and income gap between the haves and the havenots and to create false wealth and prosperity for the current Americans.

This fraud is explained in CliffsNotes format (USAPonzi CliffsNotes) and is also explained in much more detail on my website and in my book “USAPonzi” which is available on Amazon in Kindle and Paperback formats and on my website in both Kindle and PDF formats.

This is the biggest ($104.9 Trillion) financial fraud ever perpetrated, I call it “USAPonzi: The Ultimate Government Fraud” and it is “The Biggest Ponzi Scheme on the Planet”!

John W White

Plano, TX