Two Classes of People-Two Kinds of Money
February 9, 2017 Emailed to WSJ/NYT/DMN 2/9/17
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 Ponzi scheme has created an economic divide between the Upper Class and the Common Man.
Two Classes of People-Two Kinds of Money
February 9, 2017
The U.S. Government is corrupt! The senior U.S. Government officials are criminals! The U.S. Government is using fraudulent accounting by using Cash Accounting rather than the proper GAAP Accounting! The U.S. Government is operating a $105.1 Trillion Ponzi scheme! The U.S. Government is fraudulently elevating the lifestyle of all current Americans by borrowing monopoly money from the future Americans to give to the current Americans!
The U.S. Government is fraudulently enriching the U.S. ruling class! The U.S. Government is fraudulently and colossally enriching the U.S. upper class by dramatically undertaxing them! The U.S. Government is fraudulently and colossally cheating the U.S. Common Man by promising them benefit payments but not adequately funding them! The U.S. Government is fraudulently and colossally cheating the rest of the planet by borrowing monopoly money from the future Americans so the current Americans can buy things from the rest of the planet with this monopoly money!
As anyone that has had even a glimpse of my websites or my book knows, I have been openly saying the same thing with increasing emphasis, increasing anger, but hopefully with improving clarity for nearly 4 years. But my message falls on deaf ears because the people that have the power to do anything about the problem are 1) making money, albeit imaginary-counterfeit money so they do not want to stop the fraud and 2) when this fraud gets exposed they themselves will be exposed as being criminal agents that are either perpetrating this fraud or are aiding and abetting this crime by failing to report it.
This situation has a parallel in the Baylor University football sex scandal. The longer the malfeasance continues the more culpability accrues to the bad actors. It is time that someone in a position of power steps forward and exposes this fraud. I have a lot of evidence that many people are willing to turn a blind eye to this criminal activity.
And the U.S. Government has been committing this crime for 48 years. The magnitude of this crime is shown in the following table as US Unfunded Liabilities (GAAP) which is the amount of imaginary-counterfeit money, now $105.1 Trillion, that the U.S. Government has fraudulently borrowed from the future Americans.
This crime gets bigger and bigger every day that it continues.
|Cash Deficit in FY2017
|GAAP Deficit in FY2017
|US Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|| $105.1 Trillion
|Total National Assets
Source: www.usdebtclock.org February 9, 2017
The only way to eliminate this fraud is to adopt GAAP Accounting and commit to a balanced GAAP basis budget.
Okay, now that I have gotten that off my chest, I will proceed with the topic of the day:
Two Classes of People-Two Kinds of Money
Let me say from the start, that this commentary is a general discussion of the tendencies in our society and our economic system and are not to be considered as absolute statements of the way things work. However, it is my contention that the U.S. Government fraud that I have named USAPonzi is causing an economic divide between two classes of people because they tend to operate with two different kinds of money (See The Great Economic Divide).
While this is a simplification of a complex system we have two kinds of people, the haves and the havenots, or another way to say it is the Upper Class and "all the rest" which I refer to as the Common Man. For the purposes of this discussion I will stick with names Upper Class and Common Man to identify these two classes of people.
We also tend to have two kinds of money: "real money" and "imaginary money". Real money is the kind of money that the Common Man tends to earn and spend. The Common Man earns "real money" by expending labor or producing a product and then spends most of this money at the rate at which he/she earns it. The Upper Class, by definition, has the luxury of earning more than he/she spends and therefore can accrue a measure of wealth, sometimes even massive wealth.
The Upper Class person tends to start out with a job that earns real money, as does the Common Man, and accrues enough real money to sock it away some place. If he/she can accumulate enough money in this way, he/she can even join the Upper Class.
As I say, this is a simplification of a complex system because both the Upper Class and the Common Man operate with both real money and imaginary money which I call complex money as described in The Theory of Imaginary Money but the Common Man tends to operate with real money and the Upper Class tends to operate with the imaginary Money that the U.S. Government is borrowing from the future Americans.
But then in FY1969, along comes USAPonzi the Ponzi scheme fiscal policy of the U.S. Government. This fiscal policy spends more than the U.S. Government takes in as tax revenue so the U.S. Government cannot set aside (accrue) the money to pay for future benefit promises so the U.S. Government defers these public liabilities to the future Americans.
Now remember, the Upper Class person still had some money left over each year so they could have paid the U.S. Government tax revenue shortfall (deficit) but did not so they got to keep this money. I call this money that they get to retain because the U.S. Government imagines that the future Americans can pay it, imaginary money. The U.S. Government imagines that the future Americans will be able to pay this money some day, so the Upper Class, as a total group, is getting richer by the amount of the U.S. Government deficit because they did not pay the taxes required to balance the budget.
Since FY1969 when USAPonzi was launched, the U.S. Government has given the U.S. upper class $105.1 Trillion of imaginary-counterfeit money by undertaxing them and deferring $105.1 Trillion of public liabilities to the future Americans.
It turns out that almost all of the money that the Upper Class has, total net worth of all Americans is reported as Total National Assets ($127.9 Trillion) in the above table, is this imaginary money that the Upper Class gets to keep because the U.S. Government did not collect all of the taxes that would be required to balance the U.S. Government budget. That is why I say that in the above table:
US Unfunded Liabilities (GAAP) = imaginary-counterfeit money
By the way, I add the term counterfeit to this name because the future Americans can never pay these deferred liabilities. The money retained by the U.S. upper class because of this undertaxing is both imaginary and counterfeit.
The current Americans now have private net worth of $127.9 Trillion but $105.1 Trillion of that has been "borrowed" from the future Americans with the fraudulent GAAP basis deficit spending of USAPonzi.
So in general terms, the Common Man earns and spends real money and the Upper Class fraudulently gains and spends imaginary money.
This economic model has two problems:
1) most of the wealth gained by the Upper Class is not real money; it is not only imaginary, it is counterfeit and will evaporate when USAPonzi implodes. This imaginary-counterfeit money exists only in the criminal minds of the senior U.S. Government officials.
2) but in the mean time, i.e. before USAPonzi implodes, the U.S. Government is creating more and more imaginary-counterfeit money so the Upper Class just gets richer and richer every day without lifting a finger. So far the U.S. Government has given the Upper Class $105.1 Trillion of imaginary-counterfeit money and is giving them $15.42 Billion more every day with ongoing GAAP basis deficit spending.
This is what is creating the wealth and income gap. This is what is causing the economic divide between the Upper Class and the Common Man. The Common man has to work for real money and the Upper Class just has to let time pass so that more imaginary-counterfeit money will show up in their pockets.
Every dollar of GAAP basis deficit spending becomes an imaginary-counterfeit dollar in the pocket of the current American, typically one in the Upper Class, that did not have to pay that tax dollar (See The Theory of Imaginary Money).
Until the U.S. Government starts telling the truth and balances the budget, the Common Man will continue to get cheated and the Upper Class will continue to get richer and richer but with imaginary-counterfeit money (See Enriching the Upper Class/Cheating the Common Man).
That is why the politicians promise to increase the Minimum Wage, they are trying to force the real money earned by the Common Man to keep pace with the imaginary money gained by the Upper Class. But that is not a good idea UNTIL the U.S. Government starts telling the financial truth. The U.S. Government is creating imaginary-counterfeit money at an exponentially increasing rate because the future Americans have a whole hell of a lot of imaginary-counterfeit money that the U.S. Government can fraudulently borrow.
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 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 www.usaponzi.com and in my book “USAPonzi” which is available on Amazon in Kindle and Paperback formats and on my www.usaponzi.net website in both Kindle and PDF formats.
This is the biggest ($105.1 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