The Extended Theory of Imaginary-Counterfeit Money
February 20, 2017
In this commentary, I will attempt to explain why I contend that there are actually two types of imaginary-counterfeit money that are produced by the USAPonzi fiscal policy. I call these two types of imaginary-counterfeit money, explicit-imaginary-counterfeit money and implicit-imaginary-counterfeit money.
The imaginary-counterfeit money that I have been referring to in prior commentaries is what I will now refer to as implicit-imaginary-counterfeit money or i-imaginary-counterfeit money. Implicit-imaginary-counterfeit money (iic-money) is money that the U.S. upper class "implicitly" gains because they did not have to pay the taxes to balance the GAAP basis budget.
The new kind of imaginary-counterfeit money that I am introducing with this commentary I will call explicit-imaginary-counterfeit money or e-imaginary-counterfeit money. Explicit-imaginary-counterfeit money (eic-money) is money that the U.S. Government "explicitly" pays to government employees, government related businesses, and government benefit recipients that is in excess of tax receipts.
implicit-imaginary-counterfeit money (iic-money) = US Unfunded Liabilities (GAAP)
explicit-imaginary-counterfeit money (eic-money) = National Debt
total-imaginary-counterfeit money = iic-money ($105.2T) + eic-money ($20.0T) = $125.2 Trillion
The U.S. Government is explicitly paying out eic-money by writing checks and issuing EBT (Electronic Benefit Transfer) money to the affected parties and the U.S. Government is implicitly paying out iic-money by stealthily undertaxing the U.S. upper class. In both cases, eic-money and iic-money, the U.S. Government is issuing money that is unpayable and therefore both imaginary and counterfeit. With the current fiscal policy, the U.S. government will pay out an infinite amount of both eic-money and iic-money and no U.S. citizens will have to work if we can just allow enough illegal immigrants into the country to do the real work.
Where does the U.S. Government get the eic-money to overpay the government workers and related businesses; it borrows it from the iic-money that the U.S. and global upper class has accumulated because the U.S. Government has "borrowed/stolen" the iic-money from the future Americans by undertaxing the U.S. upper class. Eic-money is second hand imaginary-counterfeit money!
The U.S. Government is corrupt and The Senior Members of the U.S. Government are Criminals.
The U.S. Government is operating with a Ponzi scheme fiscal policy that is borrowing monopoly money from the future Americans and giving it to the current Americans. The U.S. Government tries to conceal the magnitude of this fraudulent borrowing by using a fraudulent accounting system. The U.S. Government is operating with Cash Accounting rather than the proper GAAP Accounting (Generally Accepted Accounting Principles).
This U.S. Government fraud is printing i-imaginary-counterfeit money with GAAP basis deficit spending, $105.2 Trillion to date and $15.42 Billion every day, that is being channeled to the U.S. upper class by making false U.S. Government benefit promises to the U.S. Common Man and then not properly funding these promises. For the 48 years since the Ponzi scheme was launched in FY1969, the U.S. upper class has been dramatically undertaxed because they have not paid for the cash basis deficit spending of the U.S. Government or for the funding of future benefit promises that the U.S. Government has made to the U.S. citizenry. This has dramatically enhanced the wealth and income of the U.S. upper class by undertaxing them by $105.2 Trillion but has put the U.S. Common Man into a coming financial crisis because the U.S. Government has not collected the money to pay the future benefit promises.
As I have seriously studied this U.S. Government fraud over the last 6 years, I have been puzzled over the best way to explain the impact of this fiscal and accounting fraud on the global economy and the global monetary system. The Meaning of Counterfeit Money, The Theory of Imaginary Money, and The Concept of Imaginary-Counterfeit Money were commentaries that represented my attempt to explain how operating with a dramatically unbalanced budget produces "imaginary but counterfeit money" so that the current Americans, by borrowing money from the future Americans, can buy things they cannot afford OR can retain this "imaginary but counterfeit money" as phantom wealth.
This U.S. Government fiscal policy has two problems; 1) the U.S. Government is spending more than it collects in taxes and 2) the U.S. Government is not adequately funding the future U.S. Government benefit promises that it has made to the U.S. citizenry. The U.S. Government, by using Cash Accounting, reports the impact of spending more than it collects in taxes. The U.S. Government, by not using GAAP Accounting, conceals the fact that it is not adequately funding the U.S. Government benefit promises.
This U.S. Government fraud has dramatically enriched the U.S. upper class by giving them $105.2 Trillion of i-imaginary-counterfeit money that the U.S. Government has fraudulently borrowed from the future Americans with GAAP basis deficit spending.
This U.S. Government fraud has dramatically cheated the U.S. Common Man by making false and unaffordable U.S. Government benefit promises and then underfunding these promises by $85.2 Trillion.
This U.S. Government fraud has significantly overpaid the U.S. ruling class by spending more than its tax receipts (e-imaginary-counterfeit money) and borrowing money from the public and from the future U.S. Government benefit trust fund to cover the shortfall.
This fiscal policy has, undertaxed the U.S. upper class by $105.2 Trillion of i-imaginary-counterfeit money (US Unfunded Liabilities (GAAP)), underfunded the future benefit promises by $85.2 Trillion (US Unfunded Future Liabilities), and has overpaid the U.S. ruling class by $20.0 Trillion of e-imaginary-counterfeit money (National Debt).
This U.S. Government fraud, if continued, is destined to give the U.S. upper class infinite i-imaginary-counterfeit wealth and income while the U.S. Common Man continues to work for relative static wages and income (See Two Classes of People/Two Kinds of Money). The U.S. Common Man works for real money while the U.S. upper class gains an ever-increasing amount of imaginary money produced by this U.S. Government fraud/Ponzi scheme.
Because the U.S. Government is not using GAAP Accounting, they are conveniently ignoring the impact of the future U.S. Government benefit promises that they have made to the U.S. citizenry. GAAP Accounting tells us that the U.S. Government has borrowed $20.0 Trillion and will need to borrow another $85.2 Trillion to meet future benefit promises. And worse yet, the amount the U.S. Government needs to borrow is growing by $15.42 Billion every day.
This explains why the U.S. Government needs to be using GAAP Accounting. GAAP Accounting gives an advance warning of the amount of borrowing that the U.S. Government will need to incur in the future to meet its current financial commitments.
This is why the amount of borrowing that the U.S. Government is doing right now is accelerating as rapidly as it is, the benefit payments for pensions, veteran's benefits, and social benefits are becoming real expenses that require "real money" that the U.S. Government must borrow to fulfill.
As time goes on both the eic-money and the iic-money will expand at an accelerating pace so the U.S. upper class will appear to get richer a lot faster.
Why is it important that we pay attention to the eic-money? As we incur National Debt (spend eic-money) the economy gets a double whammy stimulus. The Common Man gets paid the eic-money and the U.S. upper class gets undertaxed by an amount that includes the eic-money that the U.S. Government is overpaying the U.S. Common Man. This is because the National Debt is a component of US Unfunded Liabilities (GAAP).
US Unfunded Liabilities (GAAP) = National Debt + US Unfunded Future Liabilities
The reason that the amount of imaginary-counterfeit money is expanding exponentially is because the U.S. Government must pay interest on the National Debt and on the US Unfunded Future Liabilities because these future liabilities are measured at "present value". The amount of imaginary-counterfeit money in the financial system will expand without limit and therefore the imaginary-counterfeit wealth of the U.S. upper class will expand without limit.
The U.S. Government must eliminate this ever-expanding pool of imaginary-counterfeit money by properly balancing the U.S. Government budget.
|Cash Deficit in FY2017
|GAAP Deficit in FY2017
|US Unfunded Future Liabilities
|| $85.2 Trillion
|US Unfunded Liabilities (GAAP)
|| $105.2 Trillion
| Total National Assets
Source: www.usdebtclock.org February 15, 2017
This U.S. Government fiscal and accounting fraud can only be equitably eliminated by the adoption of GAAP Accounting and a commitment to a balanced GAAP basis budget by the U.S. Government.
I have published another website www.usaponzi.net that I think better explains how this fraud works to create a massive global wealth and income gap between the haves and the have-nots 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 www.usaponzi.com and in my book “USAPonzi” which is available on Amazon in Kindle and Paperback formats and on my website in PDF format.
This is the biggest ($105.2 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