The Imaginary Millionaires and Billionaires!
May 31, 2016
The United States of America is the home of millions of Imaginary Millionaires and Billionaires.
According to Forbes Magazine, as of October, 2015 there were 15.7 million Millionaires in the U.S. and as of March, 2016 there were 540 Billionaires in the U.S.
However, most of these Millionaires and Billionaires have been created by U.S. Government fraud. The U.S. Government is using a corrupt and fraudulent fiscal policy and as a result is creating imaginary-counterfeit money at an astounding rate because of its GAAP basis deficit spending.
The U.S. Government is in the process of giving infinite imaginary-counterfeit wealth to the U.S. Upper Class!
The fiscal policy of the U.S. Government is a classic Ponzi scheme that I have named USAPonzi. This Ponzi scheme is produced because the U.S. Government is using Cash Accounting rather than the proper GAAP Accounting (Generally Accepted Accounting Principles). As a result, the U.S. Government is operating with a dramatically unbalanced budget as indicated in the following table by the GAAP Deficit of $5.77 Trillion in FY2016 when the U.S. Government reports a Cash Deficit of $0.51 Trillion.
|Cash Deficit in FY2016
|GAAP Deficit in FY2016
|Unfunded Future Liabilities
|| $83.0 Trillion
|US Unfunded Liabilities (GAAP)
|| $102.3 Trillion
Source: www.usdebtclock.org May 31, 2016
Because the U.S. Government is not operating with GAAP Accounting, it is not assessing and collecting sufficient tax revenue to adequately fund the future liabilities for the veteran benefits, pensions, and social benefits promises that the U.S. Government has made. These Unfunded Future Liabilities now total $83.0 Trillion.
Therefore, this Ponzi scheme has accumulated total US Unfunded Liabilities (GAAP basis), including the National Debt, of $102.3 Trillion and has introduced an equivalent amount of imaginary-counterfeit money into the global economy and financial system with this unreported, but real, GAAP basis deficit spending.
The past and current U.S. taxpayers have gained $102.3 Trillion of imaginary-counterfeit wealth because they did not have to pay these taxes. The U.S. Government imagines that the future U.S. taxpayers can pay these taxes but obviously they cannot pay $102.3 Trillion so this apparent wealth gain is just imaginary-counterfeit money. (The Theory of Imaginary Money is explained in more detail in Chapter 2 of my book "USAPonzi").
This Ponzi scheme fiscal policy has also dramatically overpaid the social benefit recipients, the U.S. Government employees, and the Government related businesses increasing our National Debt to $19.3 Trillion.
The undertaxing of the U.S. upper class citizens and businesses by $102.3 Trillion is what has caused the "Wealth Gap" to expand. The undertaxing of the U.S. upper class citizens and businesses by $102.3 Trillion is also what has produced these Imaginary Millionaires and Billionaires. Is it any wonder that the 1% club is doing quite well! The U.S. upper class is simply and fraudulently getting richer and richer with imaginary-counterfeit money because of a dramatically unbalanced U.S. Government budget.
This Ponzi scheme fiscal policy has significantly favored Americans and within America has dramatically favored the U.S. ruling class and has colossally favored the U.S. upper class. A windfall gift to the U.S. upper class of $102.3 Trillion of imaginary-counterfeit money (over the last 47 years) has to be considered colossal favoritism.
This Ponzi scheme fiscal policy has also dramatically and artificially stimulated the U.S. and global economy with this GAAP basis deficit spending. The implosion of USAPonzi will cause a dramatic discontinuity in the global economy that will lead to a global depression that could be even more severe than "The Great Depression". See The Implosion of USAPonzi for a more complete assessment of what the author predicts will happen when USAPonzi implodes. What is now $102.3 Trillion of imaginary-counterfeit wealth will evaporate almost instantaneously when USAPonzi implodes.
USAPonzi is deferring massive and ever increasing liabilities to the future taxpayers to dramatically and artificially improve the lifestyle of current Americans and to dramatically and artificially increase the wealth of the U.S. upper class by $102.3 Trillion with imaginary-counterfeit money borrowed/stolen from future Americans. The U.S. Government is making the U.S. upper class appear to be wealthy beyond belief simply by operating with a dramatically unbalanced budget.
USAPonzi, if it is allowed to continue, will simply transfer an infinite amount of imaginary-counterfeit money from the future U.S. taxpayers to the U.S. upper class while devastating future Americans! In theory, this Ponzi scheme would produce an infinite number of Millionaires and Billionaires by pretending to borrow imaginary-counterfeit money from the future U.S. taxpayers. It must also be recognized that this U.S. Government fraud is creating imaginary Millionaires and Billionaires all over the planet not just here in the United States of America.
This Imaginary Wealth is produced simply because the U.S. Government "imagines" that the future U.S. taxpayers will be able to pay an infinite amount of taxes someday. This is the signature attribute of a Ponzi scheme; use money from the late participants to pay the early participants.
This problem can only be equitably resolved by the adoption of GAAP Accounting and a commitment to a balanced GAAP basis budget by the U.S. Government.
In order to create a level economic playing field throughout the planet, the U.S. Government must eliminate this fraud and corruption.
You can learn more about this fraud/Ponzi scheme by reading my website www.usaponzi.com or better yet by reading my book "USAPonzi" which is available on Amazon and also on my website in PDF format.
This is the biggest ($102.3 Trillion) financial fraud ever perpetrated, I call it "USAPonzi: The Ultimate Government Fraud" and "The Biggest Ponzi Scheme on the Planet"!