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

America: A Debtor Nation!
March 27, 2016
As Posted on
 www.usaponzi.com


America is a “Debtor Nation”!
The U.S. Government is in debt by $101.6 Trillion on a GAAP Accounting basis. This GAAP debt is reported as US Unfunded Liabilities (GAAP) on www.usdebtclock.org.


The U.S. Government is not using proper accounting and therefore is not reporting its financial condition accurately. The U.S. Government has real debt (National Debt) of
$19.2 Trillion but it also has virtual debt (US Unfunded Future Liabilities) of $82.4 Trillion. This virtual debt does not show up with Cash Accounting because we don’t need to spend the cash right now but we will need it in the future. The U.S. Government should have $82.4 Trillion
more cash than it now has in trust funds to pay the future promises that it has made for pensions, veteran’s benefits, and social benefits.


The U.S. Government is only disclosing about 20% of its “true debt” of
$101.6 Trillion
by using Cash Accounting instead of the proper GAAP Accounting.


                             National Debt:  
$19.2 Trillion
           GAAP Deficit for FY2016:  
$5.80 Trillion
  US Unfunded Future Liabilities:  
$82.4 Trillion
US Unfunded Liabilities (GAAP):
$101.6 Trillion
 
Imaginary-counterfeit money: $101.6 Trillion
                 Total National Assets: $122.5 Trillion


The above table succinctly tells the story of
USAPonzi, "The Ultimate Government Fraud".


Total National Assets of
$122.5 Trillion is the estimate by www.usdebtclock.org of the wealth of all U.S. private citizens and businesses. The U.S. upper class appears to have gotten extremely wealthy over the last 47 years only because they did not have pay the $101.6 Trillion of taxes represented by US Unfunded Liabilities (GAAP). These US Unfunded Liabilities (GAAP) include the National Debt and the value of the pension, veteran’s benefits, and social benefits promises (US Unfunded Future Liabilities) that the U.S. Government has made but has not collected the taxes to fund.


The U.S. Government has simply chosen to overpay the U.S. ruling class by nominally our National Debt of $19.2 Trillion and to make the U.S. upper class appear to be very, very wealthy, by undertaxing them by $101.6 Trillion, instead of keeping its promises (US Unfunded Future Liabilities) of $82.4 Trillion to the Common Man.


The U.S. Government has overpaid the U.S. ruling class by
$19.2 Trillion, has given the U.S. upper class $101.6 Trillion of fake money (imaginary-counterfeit money), and has made $82.4 Trillion of false promises to the Common Man.


This is why I call
USAPonzi, “The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”!


USAPonzi, “The Ultimate Government Fraud”,
has caused America to become a "Debtor Nation"!


The U.S. Government is in real debt (
$19.2 Trillion) and virtual debt ($82.4 Trillion) for total US Unfunded Liabilities (GAAP) of $101.6 Trillion
.


The U.S. economy and the global economy are both operating/surviving  on the accumulation of real (National Debt) and virtual (Unfunded Future Liabilities) debt by the U.S. Government. The U.S. Government is providing dramatic but unsustainable economic assistance to all Americans by overpaying government workers, overpaying social benefit recipients, and undertaxing U.S. taxpayers by $101.6 Trillion. The rest of the planet does not receive this massive economic assistance but the rest of the planet does benefit indirectly from this U.S. Government fraud since Americans buy a lot of stuff that they cannot afford with this $101.6 Trillion of “free money”.


The U.S. Government has borrowed $101.6 Trillion from the future U.S. taxpayers over the last 47 years by operating with a dramatically unbalanced budget. This borrowed money becomes imaginary-counterfeit money in the global financial system. This borrowed money is imaginary money because the U.S. Government "imagines" that the future U.S. taxpayers can eventually pay back this borrowed money but it is counterfeit money because there is no hope of it ever being paid back.


The U.S. Government is creating this
imaginary-counterfeit money by borrowing it from the future U.S. taxpayers to dramatically elevate the standard of living for all Americans. The U.S. Government is operating a massive Ponzi scheme, which I have named USAPonzi, by using Cash Accounting rather than the proper GAAP Accounting and as a result has been incurring massive but unreported GAAP basis deficit spending for 47 years. The U.S. Government is projected to incur a GAAP Deficit in FY2016 of $5.80 Trillion and has accumulated US Unfunded Liabilities of $101.6 Trillion from this 47 years of GAAP basis deficit spending.


Every dollar of GAAP basis deficit spending by the U.S. Government becomes an
imaginary-counterfeit dollar in the global financial system. U.S. Government workers are being overpaid with imaginary-counterfeit dollars. U.S. social benefit recipients are being overpaid with imaginary-counterfeit dollars. The U.S. taxpayers, that did not have to pay the taxes to cover the GAAP basis deficit spending of the U.S. Government, have stealthily accumulated this $101.6 Trillion of imaginary-counterfeit dollars. There was not a formal loan agreement made with the future U.S. taxpayers to acquire this money and give it to the current U.S. taxpayers, it was just done implicitly with GAAP basis deficit spending and largely concealed by corrupt and fraudulent accounting.


This corrupt and fraudulent fiscal policy of the U.S. Government has essentially inverted the global financial system from being based on
real dollars to now being based on imaginary-counterfeit dollars. The GAAP basis deficit spending of USAPonzi is simply transferring imaginary but counterfeit dollars from the future U.S. taxpayers to the current U.S. citizens and businesses. The U.S. Government is creating imaginary-counterfeit money out of "thin air" and giving it to the U.S. citizens and businesses which they then can use to buy whatever they may want.


Every time we spend an
imaginary-counterfeit dollar we are cheating the seller. These dollars have no long term value because they were created by borrowing them from the future U.S. taxpayers who cannot pay these accruing public liabilities. These are imaginary dollars. These are counterfeit dollars. The U.S. Government "falsely imagines" that the future U.S. taxpayers will be able to pay an infinite amount of taxes sometime in the future (See The Theory of Imaginary Money).


The money earned by the hard working Common Man should be
real money, but most of the apparent U.S. private net worth is imaginary-counterfeit money that was created by USAPonzi undertaxing U.S. taxpayers. We have been recycling this imaginary-counterfeit money through the imaginary-counterfeit global economy for 47 years to create even more imaginary-counterfeit money.


We can deposit
imaginary-counterfeit money into banks so the banks can lend imaginary-counterfeit money and earn imaginary-counterfeit interest on the transaction. We  can buy smartphones, cars, houses, airplanes, and whatever with this imaginary-counterfeit money. We can build roads with this imaginary-counterfeit money.  We can buy and sell stocks and bonds with this imaginary-counterfeit money. We can buy oil and gas with this imaginary-counterfeit money. The Middle East countries have built skyscrapers with this imaginary-counterfeit money. The Chinese have built Ghost Cities with this imaginary-counterfeit money.


This
$101.6 Trillion
of imaginary-counterfeit money can buy a lot of stuff that we cannot afford (See How much money is $2.5 Trillion?).


Our economic activity is a hoax and an illusion. Our financial system is a hoax and an illusion. Why? Because most of our financial transactions are conducted with the
imaginary-counterfeit money that has been fraudulently produced by the GAAP basis deficit spending of the U.S. Government.


One only needs to look behind the curtain to find


"The Wizard of
pOnZi".


This U.S. Government fraud has turned America into a Debtor Nation!


The U.S. Government is corrupt!


The U.S. Government is
"Cooking the Books"!


The U.S. Government is
committing fiscal and accounting fraud!


The U.S. Government is using an improper accounting system by assessing and reporting its financial condition with Cash Accounting rather than the proper GAAP Accounting
.


The U.S. Government, by
"Cooking the Books", has been operating a $101.6 Trillion Ponzi scheme (USAPonzi) for more than 47 years.


USAPonzi is creating imaginary-counterfeit money at the rate of our GAAP basis deficit spending which is $5.80 Trillion in FY2016 ($15.9 Billion a day) and distributing it to the U.S. citizenry. So far this Ponzi scheme has distributed $101.6 Trillion of imaginary-counterfeit money to the U.S. citizens and businesses.


Does that not seem a little bit unfair?


Donald Trump makes a big deal about how our trading partners throughout the planet manipulate their currency to create unfair trade practices when the U.S. Government itself is committing the biggest financial fraud in the history of the planet by creating
$101.6 Trillion of imaginary-counterfeit money.


Many Americans do not work at all because they can live a better lifestyle from the social benefits, that are paid with this
imaginary-counterfeit money, than they can by working.


USAPonzi is the sole reason why we have more imports than we have exports. The most profitable product that the United States of America produces is imaginary-counterfeit money. That is why we buy more stuff than we sell; because the U.S. Government has instituted a fiscal policy and accounting system that produces $15.9 Billion of imaginary-counterfeit money every day. We are buying stuff from each other and from the rest of the planet with this imaginary-counterfeit money.


This is why people want to immigrate to the USA because the USA is where this fountain of
imaginary-counterfeit money originates. The U.S. Government is operating with a dramatically unbalanced budget which has deferred $101.6 Trillion of public liabilities to the future U.S. taxpayers so that they can overpay the U.S. Government workers, overpay the social benefit recipients, and undertax the current U.S. taxpayers.


USAPonzi is "Cheating the Planet"USAPonzi is "Cheating the Common Man"! USAPonzi is favoring the U.S. ruling class! USAPonzi is dramatically favoring the U.S. upper class.


The second paragraph of the
United States Declaration of Independence starts as follows:


We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are
Life, Liberty and the Pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed;


The U.S. Government is operating with a fiscal policy that is in direct conflict with the
United States Declaration of Independence. The current fiscal policy of the United States of America favors Americans over the rest of the planet, favors the ruling class over the Common Man, and favors the upper class over everybody else.


The U.S. Government adopted this fiscal policy and accounting system in 1968 the likes of which have caused many individuals to be imprisoned for this same kind of, but much smaller, financial fraud.


Is it any wonder that the Islamic World is upset with the Western World and especially with the United States of America?  The Western World and especially the United States of America enjoy a highly elevated standard of living because of this U.S. Government fraud and corruption.


Is it any wonder that the general U.S. population is upset with our U.S. Government?  But they have mixed emotions about it because they like the fact that the U.S. Government is paying and promising to pay lucrative social benefits that many other citizens of the planet do not enjoy but they are upset that the Government workers are overpaid, that the ruling class is getting rich, and that the upper class is getting super rich.


The Wealth Gap in America is continuing to expand because of the way the U.S. Government distributes the
imaginary-counterfeit money produced by USAPonzi to the U.S. citizens and businesses; it gives most of this imaginary-counterfeit money to the U.S. upper class as unpaid taxes.


Because of this
imaginary-counterfeit money (USAPonzi is producing an unlimited supply) we will be able to fill the United States, and eventually the planet, with smartphones, cars, trucks, houses, TVs, computers, cars, trucks, houses, office buildings, apartment buildings, golf courses, casinos, resorts, malls, restaurants, clothes, shoes, etc.; that is until USAPonzi implodes.


USAPonzi is also causing concussions and other physical injuries. Because of this ever increasing supply of imaginary-counterfeit money, we are paying our professional athletes unimaginable compensation which in turn causes them to take unimaginable physical risk to excel. This outrageous compensation for the elite performers in every area of sport, entertainment, business, finance, and politics will come to an abrupt end when USAPonzi implodes. When USAPonzi implodes, both the current stash ($101.6 Trillion) and the continuing stream ($15.9 Billion a day) of imaginary-counterfeit money will evaporate.


USAPonzi is causing animosity between nations.


USAPonzi is causing animosity between religious faiths.


USAPonzi is causing animosity between economic classes.


USAPonzi is causing animosity between racial groups.


When the ruling class and the upper class get to set the financial rules in a way that favors themselves it can cause some severe inequities for the masses and in this case for the entire planet.


The U.S. Government is
"Cooking the Books" so that it can overpay essentially all Americans and can transfer massive ($101.6 Trillion) imaginary-counterfeit wealth to the U.S. ruling class and the U.S. upper class.


The U.S. Government, by
"Cooking the Books", has created $101.6 Trillion of imaginary-counterfeit money and counterfeit wealth (See The Theory of Imaginary Money).


The U.S. Government has pretended to borrow this
$101.6 Trillion from the future U.S. taxpayers to perpetrate this fraud. The amount borrowed from the future U.S. taxpayers is posted on www.usdebtclock.org as "US Unfunded Liabilities (GAAP)".


This U.S. Government fraud has made both of our leading presidential candidates very wealthy
! The following is the amount of benefit that each of them have received from this fraud.  I have not attempted to separate Bill and Hillary's gains.


Bill and Hillary Clinton:
$2.12 Billion (Includes the $2 Billion of bribes paid to the Clinton Foundation by some of the grateful beneficiaries of this $101.6 Trillion of imaginary-counterfeit wealth)


Donald Trump:
$3.91 Billion


(See Clinton/Trump: Getting Rich from Government Fraud!)


Because of this U.S. Government fraud, America has become a Debtor Nation!


You can learn more about this massive U.S. Government fraud/Ponzi scheme by reading my website www.usaponzi.com
or better yet by reading my book "USAPonzi: The Ultimate Government Fraud" which is available on Amazon. This book can also be read directly from my website in PDF format.


This is the biggest financial fraud ever perpetrated, I call it


"USAPonzi: The Ultimate Government Fraud"!


"The Biggest Ponzi Scheme on the Planet"!


The financial data presented in this commentary was sourced from www.usdebtclock.org
as of March 27, 2016.