U.S. Trade Deficit Explained
March 31, 2017 Emailed to WSJ/NYT/DMN on March 31, 2017
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. Trade Deficit has been caused by U.S. Government fraud. We are buying stuff from other countries with the $105.6 Trillion of imaginary-counterfeit money that the U.S. Government has fraudulently borrowed from the future Americans.
The "news media" has an ethical responsibility to inform the general public of how the U.S. Government is committing fiscal and accounting fraud to cheat the general public so they can "feather their own nests" and "dramatically feather the nests of their upper-class friends".
U.S. Trade Deficit Explained
March 31, 2017
This morning, on CNBC, I listened to our "billionaire" Secretary of Commerce Wilbur Ross, talking about our trade deficit and what the Trump Administration was thinking they might do to reduce this deficit. The United States is running a trade deficit because we buy more stuff from other countries than other countries buy from us. The comment from Wilbur Ross that really got my attention was: "Why should the U.S. absorb all of the trade surpluses from the rest of the Planet?"
Well I can tell Wilbur Ross exactly why this happens! The U.S. Government is committing fiscal and accounting fraud to borrow $105.6 Trillion of imaginary-counterfeit money from the future Americans so that the current Americans can buy all this stuff with monopoly money. The U.S. Government has borrowed/stolen $105.6 Trillion from the future Americans with GAAP basis deficit spending. The U.S. Government has created $105.6 Trillion of imaginary-counterfeit money out of "thin air" with fiscal and accounting fraud that the current Americans can use to absorb trade surpluses from the rest of the planet. We are buying stuff with money that we do not have and pretending like the future Americans will eventually pay for it. This is a $105.6 Trillion fraud!
We are buying all of this stuff because the U.S. Government has deferred $105.6 Trillion of public liabilities to the future Americans. GAAP Accounting reports this as US Unfunded Liabilities (GAAP) as reported on www.usdebtclock.org (See the table below).
We have a trade deficit because we are buying stuff that we cannot afford with money that the U.S. Government has fraudulently borrowed from the future Americans and given to the current Americans. This is fraud because the future Americans do not have $105.6 Trillion. The current Americans can't pay for everything the U.S. Government is spending today, so how are the future Americans going to come up with $105.6 Trillion extra to pay these deferred liabilities. And the U,S. Government is borrowing $15.34 Billion more imaginary-counterfeit money from the future Americans every day and giving it to the current Americans.
With the current fraudulent fiscal policy our trade deficit will approach infinity; that is until the rest of the planet catches on to the fact that we are buying their stuff with counterfeit money. We will just borrow more and more counterfeit money from the future Americans as long as we can get away with it. This is what makes a Ponzi scheme a Ponzi scheme. This will all come to a screeching halt when USAPonzi implodes.
GAAP Accounting tells us just how much counterfeit money the U.S. Government has borrowed from the future Americans and given to the current Americans and as of March 31, 2017 the U.S. Government has borrowed/stolen $105.6 Trillion.
You can buy more than you sell when you are buying things with counterfeit money. In fact some of the stuff we are selling to other countries is being purchased with recycled counterfeit money that they got from us when we bought their stuff with our counterfeit money. The United States of America is exporting counterfeit money by purchasing stuff with counterfeit money. The global economy is being massively stimulated because the U.S. Government is borrowing/stealing more and more counterfeit money from the future Americans every day.
That is how the Saudi Princes, Vladimir Putin, and Carlos Slim got to be billionaires. We are buying what they are selling, often times oil and gas, with the counterfeit money that the U.S. Government has fraudulently borrowed/stolen from the future Americans. This is also why the price of oil goes up, we are borrowing counterfeit money from the future Americans so the current Americans can buy oil and gas to run their cars and trucks. As the U.S. Government borrows more and more counterfeit money from the future Americans we can pay higher and higher prices for oil and gas. Without this counterfeit money, most cars and trucks would be sitting in driveways because the owners would not have the money to fill them up with gas (See The Automobile Bubble-How Oswald Creates Traffic Jams). In fact most Americans would not be able to buy their cars and trucks without this counterfeit money.
I have also written a couple of other commentaries to explain this problem.
We Need More and Bigger Docks!
Filling the Planet with Junk!
The U.S. Government is corrupt! The senior members of the U.S. Government are criminals. The U.S. Government is using a fraudulent accounting system in an attempt to conceal this fraud and corruption. The U.S. Government is using Cash Accounting rather than the proper GAAP Accounting (Generally Accepted Accounting Principles). I call this fraud USAPonzi because it is a classic Ponzi scheme that is being perpetrated by the U.S. Government. By operating with this fraudulent accounting, the U.S. Government is committing a $105.6 Trillion Crime!
The U.S. Government is a lot more cost effective at manufacturing money than we are at manufacturing products. But the real reason we do not manufacture more here in the United States is because this U.S. Government fraud has inflated our economy to the point that the U.S. worker is being priced out of the global labor market by this fraud. This fraud is causing inflation and offshoring which means it is often times more cost effective to buy foreign products and we have the money to buy these products because the U.S. Government has borrowed/stolen $105.6 Trillion of imaginary-counterfeit money from the future Americans and given it to the current Americans.
All Americans can buy stuff with this counterfeit money, but the upper class can get very rich with this counterfeit money that the U.S. Government is creating out of "thin air" with accounting fraud.
U.S. Trade will naturally become much more balanced when the U.S. Government stops cheating.
Sometimes a fraud is so huge that we cannot believe that it is actually a fraud. Sometimes we can't see the forest for all of the damned trees.
|Cash Deficit in FY2017
|GAAP Deficit in FY2017
|US Unfunded Future Liabilities
|| $85.7 Trillion
|US Unfunded Liabilities (GAAP)
| Total National Assets
Source: www.usdebtclock.org March 31, 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 a website www.usaponzi.net that 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 is the biggest ($105.6 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