The Biggest Ponzi Scheme on the Planet-The U.S. Government
"American Economic Exceptionalism Explained"                     USAPonzi                                      by John W. White   Mar 29, 2013

Wealth and Prosperity in America by Fraud
February 24, 2018
Emailed to WSJ/NYT/WP/DMN, the US SEC, Congressman Pete Sessions, Congressman Sam Johnson, Senator John Cornyn, and Senator Ted Cruz on 2/25/18


The following is an Op-Ed to “The Wall Street Journal”, “The New York Times”, “The Washington Post”, and “The Dallas Morning News” that explains how U.S. Government fiscal and accounting fraud has created counterfeit “Wealth and Prosperity in America”!


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 and the rest of the planet so they can “feather their own nests” and “dramatically feather the nests of their upper-class friends”!


The “news media” is aiding and abetting the corrupt and criminal U.S. Government by refusing to report this fiscal and accounting fraud!


Wealth and Prosperity in America by Fraud
February 24, 2018


Note:
Financial data in this commentary was sourced from www.usdebtclock.org as of February 24, 2018 as shown in the table below!


The United States of America appears to be the wealthiest and most prosperous country on the planet. In this commentary, I will explain how this is happening and why it is a “hoax” that has been produced by U.S. Government fiscal and accounting fraud!


America appears to be wealthy and prosperous because the U.S. Government is not operating with proper GAAP Accounting and as a result is fraudulently borrowing money from the future Americans ($112.2 Trillion so far), money that the future Americans do not have, and giving it to the U.S. upper class! This is a classic Ponzi scheme that I have named USAPonzi! This is a $112.2 Trillion fraud!


The U.S. Government is not using the proper accounting system and as a result is stealthily and fraudulently deferring massive public liabilities to the future Americans. The U.S. Government is telling us that they have a significant Cash Deficit ($0.72 Trillion in FY2018) and as a result we now have a National Debt of $20.6 Trillion. But by reporting its financial condition on a cash basis, the U.S. Government is dramatically understating our true public deficit and our true public liabilities!


What the U.S. Government does not tell us is that they are not properly accruing for the future benefit promises that the U.S. Government has made to the U.S. general public. The U.S. Government now has US Unfunded Future Liabilities of $91.6 Trillion. The U.S. Government is not operating its fiscal policy with what is called “accrual accounting”.


Accrual accounting
says that when a financial entity is making future benefit commitments to its constituents, it must set aside the money to pay for these future benefit commitments when these future benefit commitments have been earned. For example, when a U.S. citizen turns 65 the U.S. Government must set aside (accrue) the money to pay all of the expected future Social Security and healthcare benefits for that citizen.


In the United States of America, accrual accounting is called GAAP Accounting (Generally Accepted Accounting Principles). The U.S. Government requires that all public companies report their financial condition according to GAAP Accounting so that investors in these companies can properly and fairly assess the value of these publicly traded companies. The U.S. Government itself is not operating its fiscal policy according to Generally Accepted Accounting Principles! The U.S. Government is not using GAAP Accounting!


The corrupt and criminal U.S. Government tells us that they have a deficit of $0.72 Trillion in FY2018 and public liabilities (National Debt) of $20.6 Trillion when our true deficit on a GAAP basis is $5.98 Trillion and our true public liabilities (US Unfunded Liabilities (GAAP)) are $112.2 Trillion.


By operating with simple Cash Accounting rather than the proper GAAP Accounting, the U.S. Government is cheating the U.S. general public by promising them future benefits but not properly “accruing” for them and is enriching the U.S. upper class by deferring this $112.2 Trillion of public liabilities to the future Americans. The corrupt and criminal U.S. Government appears to like the U.S. upper class a lot more than it likes the U.S. general public!


The U.S. upper class gets rich and the U.S. general public gets screwed!


Public liabilities become private assets in the pockets of the people and businesses that did not pay the taxes to cover the cost of these deferred public liabilities. I call this money that is gained by not having to pay these taxes; imaginary-counterfeit money. This money is imaginary because it does not exist, it is just a promise that it will be paid at some future date by the future Americans. This money is counterfeit because the future Americans can never pay these deferred public liabilities (See The Concept of Imaginary-Counterfeit Money).


Simply stated, GAAP basis deficit spending digitally prints imaginary-counterfeit money! Spending money that you do not have, and will never have, digitally prints imaginary-counterfeit money! The corrupt and criminal U.S. Government has fraudulently borrowed $112.2 Trillion of imaginary-counterfeit money from the future Americans and given it to the U.S. upper class by undertaxing them by $112.2 Trillion. The U.S. Government has deferred
$112.2 Trillion of public liabilities (US Unfunded Liabilities (GAAP)) to the future Americans!


America looks wealthy because the U.S. Government has borrowed $112.2 Trillion of imaginary-counterfeit money from the future Americans and given it to the U.S. upper class.


America looks prosperous because the U.S. Government is borrowing another $16.4 Billion from the future Americans every day and giving it to the U.S. upper class (GAAP Deficit in FY2018 of $5.98T/365 days = $16.4B/day).


America appears to be wealthy and prosperous because the U.S. Government is committing fiscal and accounting fraud by not using GAAP Accounting and not balancing the GAAP basis budget!


Because of this fraud, the U.S. upper class is getting filthy rich!


Because of this fraud, the U.S. general public is getting screwed!


Because of this fraud, America is cheating the rest of the planet because Americans are buying goods and services from them with imaginary-counterfeit money, currently $112.2 Trillion, that the corrupt and criminal U.S. Government has fraudulently borrowed from the future Americans and given to the current Americans, primarily the U.S. upper class.


Because of this fraud, the U.S. Government has created a massive bubble in the global money supply (I call it The Oswald Financial Bubble) which in turn has created bubbles in essentially all asset classes. This fraud has created a bubble of $112.2 Trillion of imaginary-counterfeit money and is expanding this bubble by $16.4 Billion every day!


According to www.usdebtclock.org, the total net worth of all U.S. citizens and businesses (US Total Assets) is estimated to be $135.5 Trillion but unfortunately 83% of that has been fraudulently borrowed from the future Americans as imaginary-counterfeit money ($112.2T/135.5T = 0.828)!


Because of this fraud, we now have millions of imaginary-millionaires and hundreds of imaginary-billionaires (See The Imaginary Millionaires and Billionaires)! $112.2 Trillion of imaginary-counterfeit money has made a lot of people appear to be very rich!


Because of this fraud, we are paying professional athletes and entertainers $millions of imaginary-counterfeit money to play a game, sing a song, or act in a movie!


Because of this fraud, we have created a massive wealth and income gap between the U.S. upper class and the U.S. Common Man. The U.S. Common Man has to live on real money earned by the “sweat of the brow” while the U.S. upper class gets to live on imaginary-counterfeit money that the U.S. Government is stuffing in their pockets with GAAP Basis deficit spending!


Because of this fraud, Americans are filling the planet with junk purchased with imaginary-counterfeit money!


Because of this fraud, Americans are buying an ever-increasing amount of stuff from Amazon with this ever-increasing and never-ending supply of imaginary-counterfeit money that the U.S. Government is fraudulently borrowing from the future Americans! Amazon's business will drop to essentially nothing when the U.S. Government starts telling the financial truth (See Amazon a Counterfeit Company)!


Because of this fraud, the global economy appears to be in a synchronized global expansion!


Because of this fraud, the stock market is in meltup mode!


Because of this fraud, essentially everyone in America has access to nice car, a color TV and a smartphone! Americans are buying essentially everything they own, use, and consume with imaginary-counterfeit money that the U.S. Government is fraudulently borrowing from the future Americans with GAAP basis deficit spending!


Because of this fraud, the price of everything is inflating by 4-5% per year (See Inflation-A Byproduct of USAPonzi)!


Because of this fraud, we are living in more and more urbanized communities (See Urbanization-A Byproduct of USAPonzi)! It does not take much space to produce an income stream of imaginary-counterfeit money with fraudulent accounting techniques.


Because of this fraud, we are offshoring labor intensive business processes (See Offshoring-A Byproduct of USAPonzi)! This fraud has produced inflation in America that has priced the American worker out of the global labor market. When USAPonzi implodes, the cost of living in America will be significantly reduced and pay from labor will better cover this reduced cost of living. In the USAPonzi economy, the U.S. upper class sets the price for food, fuel, housing etc and the U.S. class is gaining more and more purchasing power every day while hourly wage for the working man stays nominally the same.


Because of this fraud, the cost of healthcare in America is spiraling out of control! When the U.S. Government is paying for our healthcare with imaginary-counterfeit money, the healthcare providers are willing to charge exorbitant prices for delivering that healthcare service! Since the future Americans have an infinite supply of imaginary-counterfeit money, the healthcare industry is building fancy hospitals and emergency care centers all over America! As they say, a pet alligator will grow to fit the bath tub! But in this case, we are growing the size of the bathtub! The Oswald Financial Bubble of imaginary-counterfeit money, currently $112.2 Trillion, is expanding by $16.4 Billion every day. When the U.S. Government needs more money to pay for our healthcare it just borrows more imaginary-counterfeit money from the future Americans.


Because of this fraud, the good guys and the bad guys can both buy bombs and guns so the bad guys can terrorize and make war with the good guys! $112.2 Trillion of imaginary-counterfeit money can buy a lot of AR-15s and we now have millions of them most of which have been purchased with imaginary-counterfeit money the U.S. Government has fraudulently borrowed from the future Americans. Gun violence is enabled by this U.S. Government fraud! The NRA will evaporate when the U.S. Government starts telling the financial truth by using proper GAAP Accounting.


Because of this fraud, we are experiencing significant illegal immigration because people are clambering to get into the United States to get access to the free-money/imaginary-counterfeit money that the U.S. Government is fraudulently borrowing from the future Americans (See Illegal Immigration caused by Fraud)! When the U.S. Government starts telling the financial truth we will not need “the wall” because the economic conditions on both sides of the border will be nominally the same! We appear to need “the wall” now because we only want the “right kind” of people to play in the “con game” that I call USAPonzi!


Because of this fraud, we are building more and more and bigger and bigger houses!


Because of this fraud, the cost of housing has been going up by nominally 5% per year since FY1969!


Because of this fraud, we are filling our roads with cars that are causing traffic jams!


Because of this fraud, we are buying and building stuff we will not be able to use effectively when this Ponzi scheme implodes! We already have way too many of everything; cars, trucks, houses, airplanes, resorts, guns, bombs, cruise ships, oil tankers, cargo ships, TVs, computers, smartphones, banks, hotels, private schools and universities, hospitals, healthcare service centers, restaurants, windfarms, skyscrapers in the middle east, the city of Las Vegas, ghost cities and airports in China, etc etc! We are buying and building this stuff with imaginary-counterfeit money that the U.S. Government is fraudulently borrowing from the future Americans by not using proper GAAP Accounting!


Because of this fraud, the United States of America has built the mightiest military force ever produced with imaginary-counterfeit money that the U.S. Government has fraudulently borrowed from the future Americans!


This fraud is creating the appearance of “Wealth and Prosperity in America!


Unfortunately, this is counterfeit wealth and prosperity produced by a criminal act of the U.S. Government!


This bubble of imaginary-counterfeit money, currently $112.2 Trillion, will evaporate into the “thin air” from whence it came when USAPonzi implodes (See The Implosion of USAPonzi)!


The future Americans cannot pay $112.2 Trillion of public liabilities (US Unfunded Liabilities (GAAP)) and who in their right mind would be willing to buy $112.2 Trillion of U.S. Treasuries when the U.S. Government is running a $5.98 Trillion GAAP basis deficit in FY2018? The U.S. Government has already sold $20.6 Trillion of U.S. Treasuries that will never be paid back and the Federal Reserve Bank owns $4.4 Trillion of these U.S. Treasuries in an effort to keep interest rates low!


The corrupt and criminal U.S. Government is committing fiscal and accounting fraud to give the appearance of  “Wealth and Prosperity in America”!


The “news media” is aiding and abetting this criminal act by the U.S. Government by refusing to expose this fiscal and accounting fraud!

 

National Debt  $20.6 Trillion 
Cash Deficit in FY2018  $0.72 Trillion 
GAAP Deficit in FY2018  $5.98 Trillion 
US Unfunded Future Liabilities  $91.6 Trillion 
US Unfunded Liabilities (GAAP)  $112.2 Trillion 
Imaginary-Counterfeit Money  $112.2 Trillion 
Total National Assets  $135.5 Trillion 

Source: www.usdebtclock.org Feb 24, 2018


To eliminate this fraud, the U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget.


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. The www.usaponzi.net website is an introduction to my more detailed website www.usaponzi.com and my books “USAPonzi” (Nov 22, 2015), “USAPonzi2” (May 1, 2017), and “USAPonzi3” (Feb 1, 2018) which are available on Amazon to better explain this fraud/Ponzi scheme.


This is the biggest ($112.2 Trillion) financial fraud ever perpetrated, I call it “USAPonzi: The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”.


John W. White
Plano, TX