September 26, 2015 Emailed to SEC WSJ NYT DMN 9/26/15
TO: Mary Jo White Chairwoman
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549
CC: The Wall Street Journal
The New York Times
The Dallas Morning News
FR: John W. White
I am a Whistleblower! This is my 11th letter to the U.S. Securities and Exchange Commission expressing this same complaint.
I contend that the Fiscal Policy of the Government of the United States of America is corrupt and fraudulent!
The Fiscal Policy of the U.S. Government is a Ponzi scheme, which I have named USAPonzi, and all of these 11 letters have been written to expose this fraud. I hope that each successive letter provides better clarity into this fraud, its cause, its distortions, and the inequity it is creating for the citizens of the United States of America and in fact the entire planet.
The USAPonzi Fiscal Policy is very simply stated; the U.S. Government spends and commits to spend much more than the U.S. taxpayer can afford, dramatically undertaxes the current U.S. taxpayer relative to these spending commitments, defers the resulting liabilities to the future U.S. taxpayer, and attempts to conceal the magnitude of this fiscal imbalance by using corrupt and fraudulent accounting by using Cash Accounting rather than the proper GAAP Accounting.
By operating with this Ponzi scheme Fiscal Policy, the U.S. Government has been able to fraudulently and dramatically overpay itself!
The GAAP basis Deficit Spending of USAPonzi introduces a dollar of counterfeit money into the U.S. and global economy for each dollar deferred to the future U.S. taxpayer since the future U.S. taxpayer can never pay these deferred liabilities. This fraud has therefore inflated a financial bubble, the amount of counterfeit money in our economy, the size of which is our US Unfunded Liabilities (GAAP) of $97.7 Trillion and the rate at which that bubble is expanding is our GAAP basis Deficit of $5.42 Trillion in FY2015 both of which are reported on www.usdebtclock.org.
The U.S. Government is purposefully and knowingly using Cash Accounting rather than the proper GAAP Accounting to report the financial condition of the U.S. Government so that they can report a much smaller budget deficit and much smaller public liabilities to the U.S. Citizens.
Cash Accounting GAAP Accounting
Deficit FY2015 $0.50 Trillion $5.42 Trillion
Public Liabilities $18.4 Trillion Debt $97.7 Trillion US Unfunded Liabilities (GAAP)
US Unfunded Liabilities (GAAP) = Debt + Unfunded Future Liabilities
The U.S. Government is purposefully and knowingly using Cash Accounting rather than the proper GAAP Accounting to report the financial condition of the U.S. Government so that they do not have to openly disclose the fact that they are not funding the social benefit promises that they have made and are not adequately funding other future benefit promises.
Unfunded Future Liabilities (Social Benefits, Pensions, and Veteran Benefits) = $79.3 Trillion
The fact that the U.S. citizens and businesses did not pay the taxes required to pay for these now Unfunded Liabilities means that they are now richer by $97.7 Trillion and that means that the U.S. upper class is the beneficiary of this windfall wealth gain due to the undertaxing of this corrupt and fraudulent Fiscal Policy.
The future U.S. taxpayer now is not only responsible for the current period U.S. Government expenditures on a forward looking basis but is also responsible for this $97.7 Trillion of US Unfunded Liabilities (GAAP) that are increasing each year by our GAAP Deficit which was $5.42 Trillion in FY2015.
How would you feel if you had the following financial condition which is the situation for the U.S. Government as FY2015 is coming to a close on September 30th.
Income $3.175 Trillion Ratio to Income
Spending $8.592 Trillion 2.7X GAAP basis
GAAP Deficit $5.417 Trillion 1.7X
Credit Card Balance $97.701 Trillion 30.8X US Unfunded Liabilities (GAAP)
The U.S. Government is spending 2.7X its Income, its Credit Card Balance is 30.8X its Income and it put $5.4 Trillion more on its credit card in FY2015.
The U.S. Government is committing fraud by spending money it does not have, committing to spend money that it will never have, undertaxing the U.S. upper class citizens and businesses to make them appear to be very rich, and attempting to conceal this fiscal imbalance with corrupt and fraudulent accounting. The U.S. Government, by operating this fraud, has been able to dramatically overpay itself and its employees by using the Ponzi technique of passing the cost of this overpayment forward to the future U.S. taxpayer.
The U.S. Government refuses to admit to this fraud because fixing this problem will be very painful for everyone but for the U.S. Government it means dramatically cutting the U.S. Government payroll and reducing compensation for the U.S. Government employees that do remain. This corrupt and fraudulent Fiscal Policy has introduced severe distortions into the U.S. and Global economy and financial system but the U.S. Government keeps trying to put off the inevitable implosion of USAPonzi (see Sitting on a Global Financial System Time Bomb!).
The people in the U.S. Government are using this corrupt and fraudulent Fiscal Policy to "feather their own nest" and to dramatically "feather the nest" of the upper class U.S. citizens and businesses. The people in the U.S. Government have a strong personal financial motivation to continue to operate USAPonzi. Their level of pay and even their jobs!
The U.S. Government, as the operator of USAPonzi, is taking good care of itself and its rich friends by operating this Ponzi scheme just like Bernie Madoff took good care of himself and his rich friends with Madoff Ponzi!
USAPonzi, by any measure, is the biggest financial fraud ever perpetrated and is 2,000 times larger than Madoff Ponzi!
The www.usaponzi.com website includes a long series of commentaries that further explain the issues and distortions that this Ponzi scheme has created and is creating.
See The Distortions of USAPonzi! for an explanation of some of the issues and consequences of USAPonzi.
See The Implosion of USAPonzi! for an explanation of what I predict will happen when USAPonzi implodes.
This situation can only be resolved by the U.S. Government adopting GAAP Accounting and committing to a nominally balanced GAAP basis budget. This will ensure an equitable and sustainable Fiscal Policy.
Note 1: The financial data used in this letter to support my contention was sourced from www.usdebtclock.org as of September 26, 2015.
John W. White
Retired Information Technology Executive
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