USAPonzi-A Classic Ponzi Scheme
August 10, 2016
The U.S. Government is corrupt! The fiscal policy of the U.S. Government is a classic Ponzi scheme!
A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator.
The current U.S. Government fiscal policy (USAPonzi) fits that definition perfectly. The U.S. Government promises to pay social benefits that are irrational and unaffordable and does not collect enough tax revenue to pay these benefits leaving the cost of these social benefit promises to the next generation(s) of U.S. taxpayers and uses a corrupt and fraudulent accounting system to help cover up the scheme. The U.S. Government is using Cash Accounting rather than the proper GAAP Accounting (Generally Accepted Accounting Principles).
In addition, the U.S. Government spends more on a cash basis than it collects in tax revenues each year creating a Cash Deficit in FY2016 of $0.53 Trillion.
This creates a very simple and basic fraud. The U.S. Government, since it adopted the "Unified Budget" in FY1969, has been borrowing/stealing money from the future U.S. taxpayers and giving the money to current Americans with GAAP basis deficit spending. The following table shows the status of this massive faux wealth transfer as of August 10, 2016.
|Cash Deficit in FY2016
|GAAP Deficit in FY2016
|Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|Total National Assets
Source: www.usdebtclock.org August 10, 2016
The U.S. Government has borrowed/stolen $103.1 Trillion from the future U.S. taxpayers (US Unfunded Liabilities (GAAP)) and given it to the current Americans. But since the future U.S. taxpayers cannot possibly pay $103.1 Trillion, this money became imaginary-counterfeit money as it passed through the U.S. Government. The U.S. Government imagines that the future U.S. taxpayers can pay this $103.1 Trillion but since they cannot this is counterfeit money. It has no value. The current Americans are getting rich and buying stuff with imaginary-counterfeit money produced by U.S. Government fiscal and accounting fraud (See The Theory of Imaginary Money).
This is a fraud! This is a hoax! The U.S. Government has been operating with this corrupt and fraudulent fiscal policy for 47 years and nobody in the U.S. Government is prepared to standup and tell the rest of the planet that they have been cheating the Common man and the rest of the planet for 47 years in order to make themselves and their upper class friends appear to be very very rich.
I am sorry but I cannot be any more explicit when explaining this fraud. The U.S. Government has borrowed/stolen $103.1 Trillion of fake money (imaginary-counterfeit money) from the future U.S. taxpayers and given it to the current Americans.
This Ponzi scheme fraud is creating an ever expanding bubble of imaginary-counterfeit money that I call "The Oswald Financial Bubble" because this Ponzi scheme was launched in January of 1968 by Lyndon Baines Johnson who became President because Lee Harvey Oswald assassinated John F. Kennedy.
$103.1 Trillion of US Unfunded Liabilities (GAAP) has produced $103.1 Trillion of imaginary-counterfeit money that has contributed mightily to the apparent private wealth of the U.S. citizens and businesses shown in the above table as Total National Assets of $123.0 Trillion. 84% of the U.S. private wealth has been produced as imaginary-counterfeit money by the U.S. Government fiscal and accounting fraud that I call USAPonzi ($103.1T/$123.0T = 0.838). This U.S. Government fraud has given the U.S. upper class $103.1 Trillion of imaginary-counterfeit wealth by borrowing faux money from the future U.S. taxpayers.
The U.S. Government is continuing this fraud and is creating $15.7 Billion more imaginary-counterfeit money and imaginary-counterfeit wealth every day with GAAP basis deficit spending of $5.73 Trillion in FY2016 ($5.73T/365 = $15.7B).
The U.S. upper class is appearing to get very very rich with faux money that is being artificially produced with fiscal and accounting fraud. The U.S. upper class is appearing to get very very rich with imaginary-counterfeit money produced with GAAP basis deficit spending. Every dollar of GAAP basis deficit spending becomes an imaginary-counterfeit dollar in the pocket of the taxpayer that did not have to pay that tax dollar.
The U.S. Government is simply pretending to borrow imaginary-counterfeit money from the future U.S. taxpayers and giving it to current Americans. This is fraud because the future U.S. taxpayers do not have $103.1 Trillion. This imaginary-counterfeit money will evaporate when USAPonzi implodes (See The Implosion of USAPonzi).
USAPonzi has created $103.1 Trillion of imaginary-counterfeit money, $103.1 Trillion of imaginary-counterfeit wealth, $103.1 Trillion of imaginary-counterfeit prosperity, and is Filling the Planet with Junk purchased with this $103.1 Trillion of imaginary-counterfeit money.
To eliminate this fraud, the U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget. I have created a website www.usaponzi.com and have written a book "USAPonzi", available on Amazon, that explain this Ponzi scheme in much more detail.
This is the biggest ($103.1 Trillion) financial fraud ever perpetrated, I call it "USAPonzi: The Ultimate Government Fraud" and "The Biggest Ponzi Scheme on the Planet".