The Great Economic Divide!
December 7, 2016
Op-Ed to WSJ/NYT/DMN Emailed Dec 10, 2016
The following is an Op-Ed to "The Wall Street Journal", "The New York Times", and "The Dallas Morning News" that explains how the U.S. Government has created "The Great Economic Divide" between the U.S. upper class and the U.S. Common Man and "The Great Economic Divide" between the United States and the rest of the Planet by operating with a corrupt and fraudulent fiscal policy and accounting system. The U.S. Government commits this fraud by borrowing monopoly money from the future Americans with GAAP basis deficit spending and giving most of it to the U.S. upper class. I feel sure that none of these newspapers will print this Op-Ed because they do not want the Common Man to know that the U.S. Government is massively favoring the U.S. upper class to the detriment of the U.S. Common Man and the rest of the Planet. But this fraud/crime has already been committed so eventually the Common Man will know the truth!
The Great Economic Divide!
December 7, 2016
The U.S. Government is corrupt!
The U.S. Government is massively enriching the rich ($104.4 Trillion worth of riches) and cheating the hell out of the poor and the rest of the Planet! The U.S. Government is promising government benefits ($90.0 Trillion worth of unfunded benefits) to the Common Man and not adequately funding these future promises so that it can overpay itself and enrich the rich. The U.S. Government has pretended to borrow $104.4 Trillion from the future Americans so that the current Americans can buy stuff from each other and from the rest of the Planet with this fraudulently borrowed monopoly money.
The Senior Officials in the U.S. Government are Criminals!
The U.S. Government is operating with a corrupt and fraudulent fiscal policy that is appearing to make the U.S. upper class richer and richer while many in the U.S. working class are having difficulty finding a decent paying job. I call this divergence of fortunes between the U.S. upper class and the U.S. Common Man "The Great Economic Divide".
The U.S. Government fiscal and accounting fraud, that I call USAPonzi, is causing The Great Economic Divide within the United States between the U.S. upper class and the U.S. Common Man, is causing The Great Economic Divide between the United States and the rest of the Planet, and is causing serious social and political divides throughout the Planet.
Simply stated, The Great Economic Divide has been caused by the U.S. Government fraudulently borrowing $104.4 Trillion from the future Americans and giving it to the current Americans with most of the money going to the U.S. upper class.
The following table provides a summary assessment of the U.S. Government financial condition as of December 7, 2016 as assessed and reported by www.usdebtclock.org that I will use to explain The Great Economic Divide.
|US Federal Tax Revenue
|Cash Deficit in FY2017
|GAAP Deficit in FY2017
|US Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
| Imaginary-counterfeit Money
|Total National Assets
Source: www.usdebtclock.org December 7, 2016
The U.S. Government is operating with a Ponzi scheme fiscal policy that is giving unlimited wealth to the U.S. upper class by dramatically undertaxing them and assuming massive public liabilities. This is happening because the U.S. Government is committing fiscal and accounting fraud by using Cash Accounting rather than the proper GAAP Accounting (Generally Accepted Accounting Principles). GAAP Accounting determines and reports the financial liabilities of the entity, in this case the public liabilities of the U.S. Government, by assessing how much money the entity has already borrowed to meet its current financial commitments (National Debt) PLUS how much money the entity has committed to pay in the future but has not properly funded (US Unfunded Future Liabilities). In the above table, www.usdebtclock.org calls our public liabilities US Unfunded Liabilities (GAAP) which are currently $104.4 Trillion. The U.S. Government is assuming that the future Americans will be able to pay this $104.4 Trillion someday and is adding another $5.67 Trillion (GAAP Deficit in FY2017) to that amount owed by the future Americans in FY2017.
The U.S. Government has now deferred $104.4 Trillion of public liabilities (US Unfunded Liabilities (GAAP)) to the future Americans, is deferring another $5.67 Trillion (GAAP Deficit in FY2017) to the future Americans in FY2017, and only has income in FY2017 of $3.3 Trillion (US Federal Tax Revenue). The U.S. Government has income of $3.3 Trillion but has put $104.4 Trillion on its credit card (31 times its income) and is overspending its income by $5.67 Trillion (1.7 times its income). What chance do you think the U.S. Government has of paying off this $104.4 Trillion credit card bill when the credit card balance is 31 times its income and the U.S. Government is spending nearly 3 times its income? The U.S. upper class is appearing to get rich because they have not had to pay this $104.4 Trillion in taxes.
As demonstrated by the above analysis, proper GAAP Accounting shows that the current U.S. fiscal policy is unsustainable so the U.S. Government tries to conceal this fraud by reporting its financial condition on a Cash basis which only reports our Cash Deficit and our National Debt rather than the much more informative GAAP basis reporting that reports our GAAP Deficit and our US Unfunded Liabilities (GAAP) as shown in the table above.
The U.S. Government has been operating this Ponzi scheme fiscal policy for 48 years, since FY1969, and as a result has been able to fraudulently shift most of the wealth in the United States to the U.S. upper class. In 1969, the private net worth in the United States was $5.2 Trillion and it is now $124.2 Trillion (Total National Assets). Since 1969, the U.S. Government has fraudulently borrowed $104.4 Trillion (US Unfunded Liabilities (GAAP)) of monopoly money (imaginary-counterfeit money) from the future Americans and has given most of this monopoly money to the U.S. upper class by undertaxing them.
This borrowed money is monopoly money because the future Americans can never pay it. By giving this monopoly money to the U.S. upper class, the U.S. Government has been able to fraudulently transfer 84% of the U.S. private net worth to the U.S. upper class with this massive Ponzi scheme ($104.4T/$124.2T = 0.84). This Ponzi scheme fiscal policy, if allowed to continue, will give Unlimited Wealth to the U.S. Upper Class because the U.S. Government will just borrow more and more monopoly money (imaginary-counterfeit money) from the future Americans and give it to the current Americans with the U.S. upper class getting most of it.
The reader can see Federal Reserve charts that show how the private net worth (Total National Assets) in the United States has been increasing since USAPonzi was launched in FY1969 by reading Getting Rich from U.S. Government Fraud. Private net worth in the United States started to increase much faster on a dollar basis when the U.S. Government started borrowing monopoly money from the future Americans in FY1969. The U.S. Government feels like it has hit the "mother lode" by being able to borrow an unlimited amount of monopoly money from the future Americans to enrich the current Americans, especially the U.S. upper class. The more monopoly money the U.S. Government borrows from the future Americans the richer the U.S. upper class becomes and the more the stock market goes up. Upper class Americans are appearing to get richer and richer and the stock market is going higher and higher simply because the U.S. Government is borrowing more and more monopoly money from the future Americans and giving it to the current Americans by undertaxing them. This is the nature of a Ponzi scheme, pay the early participants in the scheme with money from the late participants in the scheme.
But the fraud does not stop there. The U.S. Government tells the Common Man that while you may not have much money now, we will be sure to take care of you when you are old and need social security and health care, if you will just pay in money now so that the U.S. Government will be able to pay you these benefits in the future. But what does the U.S. Government do, it spends this money that is paid in by the Common Man to pay these future benefits, to overpay itself and then borrows even more money to outrageously overpay the U.S. Government workers, which has created a National Debt of $19.9 Trillion. And $5.5 Trillion of this National Debt is because the U.S. Government has borrowed and spent the money paid in by the U.S. taxpayers to fund future benefits.
But the fraud does not stop there. The U.S. Government has determined that it can make its U.S. upper class friends very rich if it does not collect all of the taxes required to pay for the future benefit promises that the U.S. Government has made to the Common Man. The U.S. Government just underfunds these future benefit promises by $84.5 Trillion and pretends like the future Americans will be able pay that money someday. The Common Man is being hoodwinked into thinking that the U.S. Government will pay these future benefits that the U.S. Government has no intention or capability to pay.
This Ponzi scheme fiscal policy has led to the following status:
1) The U.S. ruling class is really happy because they get outrageously overpaid.
2) The U.S. upper class is really, really, really happy because they have so far picked up an easy $104.4 Trillion.
3) Some of the current Common Man are happy because they are being paid generous but unaffordable U.S. Government benefits.
4) The future Common Man are screwed because the U.S. Government has made social benefit promises, that it cannot keep, which are valued at $90.0 Trillion ($84.5T + $5.5T). The U.S. Government has no money in the social benefit trust funds to pay future benefits, not one penny!
5) The future Americans are screwed because they have a tax bill of $104.4 Trillion to pay for what the current Americans have already spent and what U.S. Government has promised to spend in the future.
6) The rest of the Planet is getting screwed, and they don't yet know it, because the current Americans are buying their products and services with the monopoly money that the U.S. Government has fraudulently borrowed from the future Americans. The current Americans have been writing "hot checks" for most of the purchases that they have made over the last 48 years.
7) Item 6) is what has caused the Great Economic Divide between the United States and the rest of the Planet. Current Americans have been given $104.4 Trillion of this monopoly money to buy products and services that they could not otherwise afford. This makes America appear to be wealthy and prosperous relative to the rest of the Planet.
This Government fiscal and accounting fraud is dramatically shifting private wealth to the U.S. upper class while devastating the U.S. Common Man and cheating the rest of the Planet. And not only is the U.S. Government making false promises to the U.S. Common Man by spending their social benefit tax revenue and underfunding their benefit promises to enrich the U.S. upper class, the U.S. Government has inflated the cost of consumer goods by producing this monopoly money to the point that the working Common Man needs a larger and larger hourly wage to make ends meet which means that labor costs in the U.S. are uncompetitive with the rest of the Planet and the U.S. Common Man cannot find a decent paying job (See Inflation-A Byproduct of USAPonzi and Offshoring-A Byproduct of USAPonzi).
The U.S. ruling class and the U.S. upper class have no real problem with these higher consumer goods prices because the U.S. Government is taking good care of itself and its U.S. upper class friends by borrowing more and more monopoly money from the future Americans to continuously, fraudulently, and outrageously overpay itself and to continuously, fraudulently, and colossally enrich the U.S. upper class.
This is why the fiscal and accounting fraud, that I call USAPonzi, is causing The Great Economic Divide between the U.S. and the rest of the planet and between the haves and the have-nots within the United States. Fraudulently giving $104.4 Trillion to U.S. upper class is a serious crime that is causing not only an economic divide but social and political divides (See The Senior U.S. Government Officials are Criminals).
When the U.S. Government is fraudulently giving infinite wealth to the U.S. upper class with monopoly money and the Common Man cannot find a decent paying job, this is going to cause serious problems! But the U.S. ruling class is also getting rich from this fraud so there is no way they can bring themselves to tell the financial truth (See The Clinton Fraud). Continuing this fraud means that the U.S. ruling class can continue to get outrageously overpaid.
This is what has created The Great Economic Divide;
The U.S. Government fraud that I call USAPonzi!
The recent election result in the United States was, in my mind, precipitated by this Great Economic Divide. This divide within the United States can be seen rather clearly by looking at a red and blue map of the United States voting in the 2016 presidential election. The red tends to be where folks are struggling to find a decent paying job and the blue tends to be where folks are getting rich from U.S. Government fraud. The have-nots want something to be done to change their fortunes.
The haves in America are becoming extraordinarily wealthy from the monopoly money (imaginary-counterfeit money) produced by this fraud and the have-nots cannot earn a living wage in the U.S. economy because the haves are setting the price of consumer products because they are flush with the massive amount of monopoly money given to them by this U.S. Government fiscal and accounting fraud.
Until the U.S. Government starts telling the financial truth and balances the federal budget on a GAAP basis, this Great Economic Divide will continue to widen and the social and political divides will also continue to widen.
The U.S. upper class is living the "high life" because the U.S. Government just keeps giving them more and more monopoly money while the Common Man is feeling economic pain and wonders how they can ever recover. When the Common Man finds out that this problem is being caused by purposeful cheating (fraud) by the U.S. Government we will have a serious price to pay with civil unrest.
Reviewing the Trump Fiscal Plan
The U.S. upper class is living the "high life" because the U.S. Government is assuming massive public liabilities that now come to $104.4 Trillion. Let's quickly review how President-elect Donald Trump plans to "Make America Great again"! The U.S. Government has public liabilities of $104.4 Trillion, income of $3.3 Trillion, a deficit of $5.67 Trillion, and Donald Trump's plan to fix this problem is to reduce taxes on the wealthy and reduce the corporate tax rate from 35% to 15% so we can reduce our income. Does that sound like a workable plan to you?
Well, it is not a workable plan; it will just exacerbate the existing fraud. The haves will have more and more and the have-nots will have less and less!
This U.S. Government fiscal and accounting fraud can only be equitably eliminated by the adoption of GAAP Accounting (Generally Accepted Accounting Principles) and a commitment to a balanced GAAP basis budget by the U.S. Government.
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 ($104.4 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