Chapter 6 The Infinite Counterfeit Money Machine
November 22, 2015
The U.S. Government is creating counterfeit wealth (84%) and counterfeit prosperity (39%) for the United States of America by operating with a corrupt and fraudulent fiscal policy that is a massive Ponzi scheme (USAPonzi). This Ponzi scheme, by using Cash Accounting rather than the proper GAAP Accounting and by over spending on a Cash basis, is stimulating the U.S. and global economy with GAAP basis deficit spending and is causing the U.S. citizens and businesses to appear to be very wealthy because they are being undertaxed. The USAPonzi fiscal policy of the U.S. Government is spending and committing to spend much more than the U.S. Government is collecting in tax revenue, producing what is called deficit spending. Deficit spending undertaxes the current U.S. taxpayers and defers the resulting liabilities to the future U.S. taxpayers while introducing new but counterfeit money into the U.S. and global economy.
USAPonzi is producing an exponentially increasing amount of counterfeit money each year and is pre-programmed to create an infinite amount of counterfeit money. Because of the current fiscal policy, the U.S. Government is "The Infinite Counterfeit Money Machine". The U.S. Government does this with a very simple technique; each year the U.S. Government assumes that the future U.S. taxpayers will be able to pay a larger and exponentially increasing tax bill. That tax bill is now $99.8 Trillion and is increasing by $5.9 Trillion this fiscal year (FY2016) and increasing by $16.1 Billion every day.
The U.S. Government is promising to pay social benefits, Government pensions, and veteran benefits to nearly half of the U.S. citizenry and since our economy does not produce enough tax revenue to pay these benefits, the U.S. Government will be required to eventually borrow the money to pay these massive Unfunded Liabilities of now $99.8 Trillion that are increasing by an exponentially increasing amount each year. The U.S. Government cannot borrow an exponentially increasing amount of money.
This fiscal policy will create an infinite amount of U.S. Unfunded Liabilities, an infinite amount of counterfeit money, and an infinite amount of counterfeit private wealth.
The current fiscal policy is grossly unfair to the middle and lower class citizens while treating the ruling class royally and treating the upper class super royally.
The working middle and lower class people get paid for service rendered, labor expended or product produced at a "relatively fixed" market rate. The non-working middle and lower class people get paid social benefits, pensions, or veteran's benefits at a "relatively fixed", "policy defined" rate that is more than the U.S. taxpayer can afford and some of which has to be paid with borrowed money.
The ruling class overpays itself relative to what the U.S. taxpayer can afford, some of which has to be paid with borrowed money but with little regard for value delivered (since there is not a market rate for most Government jobs) or budget affordability.
The upper class has the real financial leverage since they collect most of the resulting and ballooning counterfeit money that our GAAP basis deficit spending produces from unpaid taxes, $99.8 Trillion to date and $5.9 Trillion in FY2016. The upper class collects this counterfeit money with no service rendered, no labor expended, and no product produced. This counterfeit money just shows up in their pockets because of a corrupt and fraudulent fiscal policy and not for something they do but for something they don't do. They don't pay the taxes that are required to cover the cost of operating the U.S. Government.
The Cause of the "Wealth Gap"
This is what causes the "Wealth Gap"; the "Common Man" gets paid for services rendered, labor expended, or product produced (pay is nominally proportional to the value delivered) while the upper class is getting rich ($99.8 Trillion) from the fraud and corruption of the U.S. Government that is dramatically undertaxing the upper class. And to make matters even worse, this undertaxing means that the U.S. Government is lying about the promises it has made to pay social benefits, pensions, and veteran's benefits that were designed to benefit the "Common Man". The U.S. Government is not collecting the tax revenue required to pay for these future benefits so that it can appear to make the upper class wealthy.
The U.S. Government has been systematically slipping more and more counterfeit money to the U.S. upper class by undertaxing them with a corrupt and fraudulent fiscal policy for the last 47 years. The U.S. fiscal policy is rigged to favor the ruling class and to dramatically favor the upper class U.S. citizens and businesses by cheating the Common Man. But this is being done with counterfeit money and this counterfeit money will evaporate when USAPonzi implodes.
The U.S. Government, by adopting a corrupt and fraudulent fiscal policy, has turned a collection of social benefit, pension, and veteran's benefit programs that were designed to support Government retirees, veterans, the elderly, the disabled, and the underprivileged into a gravy train for the ruling class and a financial bonanza for the upper class by not collecting the tax revenues required to pay for these future commitments. It is just not right that upper class be given $99.8 Trillion of counterfeit money by using a simple little accounting trick and by overspending the Government's income on a Cash basis.
Because of our current fiscal policy, the United States of America cannot be considered a trusted party in global commerce. The U.S. Government is creating counterfeit money every day and with the current policy will create an infinite amount of counterfeit money. We can eventually pay whatever price they want to charge for oil because we can just print more counterfeit money. We can do it tomorrow if we need to just by voting to raise the minimum wage and increasing our social benefit promises. And the upper class would also appear to get richer a whole lot faster if we were to do that.
We talk endlessly about the monetary policy of the Federal Reserve creating money out of "thin air" with Quantitative Easing and yes it has introduced $4-5 Trillion of counterfeit money over the last few years but that is a "drop in the bucket" compared to the $99.8 Trillion of counterfeit money that the U.S. Government's fiscal policy (USAPonzi) has created out of "thin air" since FY1969. And the $99.8 Trillion of counterfeit money, that USAPonzi has produced to date, is a "drop in the bucket" compared to the infinite amount of counterfeit money that the current fiscal policy will produce if USAPonzi is allowed to continue.
The U.S. Government is operating USAPonzi;
"The Biggest Ponzi Scheme on the Planet"!!!!
Financial data sourced from usdebtclock.org Nov 22, 2015.
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