USAPonzi a simple fraud: Public Debt becomes Private Wealth!
May 17, 2016
We have a bunch of crooks running the U.S. Government!
The U.S. Government is operating with a Ponzi scheme fiscal policy (USAPonzi) that is allowing the U.S. citizenry to live dramatically beyond their means and is appearing to make the U.S. upper class super wealthy.
This fiscal policy is a lot like playing NFL football with the rules for table tennis. It absolutely makes no sense whatsoever! It is absurd! It is a hoax! It is corrupt! It is a fraud! But it is paying the U.S. ruling class a lot of money and it is making the U.S. upper class really rich so the U.S. Government is continuing this fraud and the U.S. upper class is cheering them on.
USAPonzi has basically inverted the global economy and financial system. We don't just earn real money to buy things, the U.S. Government is creating imaginary-counterfeit money so that we can buy a whole lot of things that we really cannot afford. Four of five things in the U.S. are unaffordable. Our economy and our financial system are both operating predominantly on the $102.2 Trillion of imaginary-counterfeit money that the U.S. Government is pretending to borrow from the future U.S. taxpayers with GAAP basis deficit spending (see The Theory of Imaginary Money).
The U.S. Government is corrupt! The U.S. Government is using a corrupt and fraudulent fiscal policy (USAPonzi) by using Cash Accounting rather than the proper GAAP Accounting. As a result, our real deficit in FY2016 is our GAAP Deficit of $5.77 Trillion when the U.S. Government tells us our deficit is our Cash Deficit of $0.51 Trillion.
|Cash Deficit in FY2016
|GAAP Deficit in FY2016
|Unfunded Future Liabilities
|| $82.9 Trillion
|US Unfunded Liabilities (GAAP)
|| $102.2 Trillion
|Total National Assets
|| $123.7 Trillion
Source: www.usdebtclock.org May 17, 2016
Our public liabilities (US Unfunded Liabilities (GAAP)) are now $102.2 Trillion and are increasing by our GAAP Deficit of $5.77 Trillion in FY2016. Further, this GAAP Deficit is increasing exponentially because the U.S. Government has to pay "virtual" interest every year on these public liabilities. When these public liabilities increase, private wealth appears to increase by an equivalent amount simply because the U.S. taxpayers don't have to pay the taxes to cover these government expenditures.
The U.S. upper class is appearing to get filthy rich because we have a bunch of crooks running the U.S. government. These crooks are committing fiscal and accounting fraud so that they can overpay themselves and make their rich friends (and themselves) appear to be really rich. Hillary Clinton ($2.12B) and Donald Trump ($3.91B and maybe a lot more) have both become faux wealthy because of this U.S. Government fraud (See Clinton/Trump: Getting rich(?) from U.S. Gov Fraud). When you have misappropriated $102.2 Trillion of imaginary-counterfeit money you have committed a massive fraud.
But this private wealth increase is phantom/counterfeit because the future U.S. taxpayers cannot pay these public liabilities. That is why I call this apparent private wealth increase, imaginary-counterfeit money. It is imaginary because the U.S. Government imagines that the future U.S. taxpayers can pay these public liabilities. It is counterfeit because the U.S. taxpayers cannot pay these public liabilities. The U.S. upper class (and the global upper class) is getting faux rich ($102.2 Trillion) from U.S. Government fiscal and accounting fraud.
USAPonzi has essentially inverted the U.S. and global economy. We are operating on imaginary-counterfeit money produced by U.S. Government fraud. The more the U.S. Government overspends and overcommits the richer the rich appear to become and the more things Americans can appear to buy with the imaginary-counterfeit money that is being produced by the GAAP basis deficit spending of USAPonzi.
The U.S. Government is just imagining that the current U.S. upper class could be really rich today if the future U.S. taxpayers could just pay a whole hell of a lot of taxes tomorrow.
The future U.S. taxpayers are now expected to pay for all of the things we have bought, built, and consumed but cannot afford. The tax bill that the future U.S. taxpayers now owe comes to $102.2 Trillion, our US Unfunded Liabilities (GAAP).
If the U.S. Government continues this Ponzi scheme fiscal policy, USAPonzi will create an infinite amount of imaginary-counterfeit money and therefore an infinite amount of faux private wealth. The U.S. Government is stuffing imaginary-counterfeit money into the pockets of Americans because of an unbalanced budget but most of this imaginary-counterfeit money is ending up in the pockets of the U.S. upper class.
When USAPonzi implodes, this imaginary-counterfeit money will go "poof" and what now appears to be $102.2 Trillion will vanish into "thin air".
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.
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 ($102.2 Trillion) financial fraud ever perpetrated, I call it "USAPonzi: The Ultimate Government Fraud" and "The Biggest Ponzi Scheme on the Planet"!