American Accounting Fraud
October 10, 2017 Emailed to WSJ/NYT/DMN on 10/10/17
The following is an Op-Ed to “The Wall Street Journal”, “The New York Times” and “The Dallas Morning News” that explains why I contend that American Accounting Fraud has had more influence on the history of the planet than any other single event or action over the last 48 years. Since 1969, American Accounting Fraud has been responsible for the apparent dominance, at least the attempt of dominance, by the United States of America over the rest of the planet; politically, economically, militarily, and socially.
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”!
American Accounting Fraud
October 10, 2017
I contend that American Accounting Fraud has had more influence on the history of the planet than any other single event or action over the last 48 years. Since 1969, American Accounting Fraud has been responsible for the apparent dominance, at least the attempt of dominance, by the United States of America over the rest of the planet; politically, economically, militarily, and socially.
The U.S. Government is borrowing money, an ever-increasing amount of money, from the future Americans, money that the future Americans do not have, and giving it to the U.S. upper class!
In January of 1968, Lyndon Baines Johnson proposed and the 90th Congress approved the Unified Budget. This action put in place a fiscal policy that is now a $107.8 Trillion Ponzi scheme which has dramatically enhanced the wealth, prosperity, and lifestyle of the U.S. upper class while oppressing the U.S. Common Man. I call this Ponzi scheme fiscal policy USAPonzi and have written two websites and two books that explain and attempt to expose this “American Accounting Fraud”. I have also written USAPonzi CliffsNotes which is a short story explanation of this U.S. Government fiscal and accounting fraud.
The essence of this fraud is that the U.S. Government is not using accrual accounting by operating with Cash Accounting rather than the proper GAAP Accounting. As a result, the current Americans are not paying the taxes required to meet current period spending or to pay for the future benefit promises the U.S. Government has made to the U.S. Common Man. These public liabilities of $107.8 Trillion (US Unfunded Liabilities (GAAP)) have been deferred to the future Americans which has given the current Americans $107.8 Trillion of what I call imaginary-counterfeit money. This fraud is giving the current Americans another $15.04 Billion of imaginary-counterfeit money every day with ongoing GAAP basis deficit spending of $5.49 Trillion in FY2018.
This fiscal and accounting fraud has given the current Americans $107.8 Trillion by deferring public liabilities of $107.8 Trillion to the future Americans. The current Americans are getting rich by the U.S. Government borrowing money from the future Americans, that the future Americans do not have, and giving it to the U.S. upper class. This is the cause of the American Accounting Fraud! This is a classic Ponzi scheme that I call USAPonzi!
Money is power and the U.S. Government has fraudulently created $107.8 Trillion of imaginary-counterfeit money out of “thin air” by deferring $107.8 Trillion of public liabilities to the future Americans!
The U.S. Government understands the new meaning of “The Golden Rule”; “he who has the gold makes the rules”! The U.S. Government is creating the gold by using fiscal and accounting fraud so America can make the rules!
This fraud has made the United States appear to be the richest and most prosperous country on the planet!
This fraud has made the U.S. upper class appear to be extremely wealthy!
This fraud has allowed the U.S. upper class to live super opulent lifestyles!
This fraud has underfunded the U.S. Government benefit promises to the U.S. Common Man by $87.4 Trillion!
This fraud has produced massive social injustice by giving the U.S. upper class $107.8 Trillion and underfunding the benefit promises to the U.S. Common Man by $87.4 Trillion!
This fraud has caused the wealth gap between the haves and the have-nots. $107.8 Trillion can create quite a wealth gap!
This fraud is causing the rich to get richer and richer!
This fraud is causing the poor to get poorer and poorer on a relative basis!
This fraud is enriching the U.S. upper class and is oppressing the U.S. Common Man!
This fraud has allowed the current Americans to buy stuff from the rest of the planet with $107.8 Trillion of imaginary-counterfeit money that has been fraudulently borrowed from the future Americans.
This fraud is filling the planet with stuff that is being fraudulently purchased with $107.8 Trillion of imaginary-counterfeit money that has been fraudulently borrowed from the future Americans. Cars and trucks may be the most visible asset bubble produced by this fraud. I estimate that we have 5-7 times as many cars and trucks as we can afford because we are buying them with money that has been fraudulently borrowed from the future Americans! This American Accounting Fraud is the cause of our traffic jams!
Starbucks stores and branch banks are two other asset bubbles produced by this fraud. It seems like everywhere you look you can find a Starbucks and a bank. We are buying premium coffee with imaginary-counterfeit money and we are depositing imaginary-counterfeit money into our banks! $107.8 Trillion can buy a lot of cars, trucks, and coffee. We now have 26,000 Starbucks stores selling coffee that is being purchased with counterfeit money! $107.8 Trillion of imaginary-counterfeit money has caused us to foolishly build 93,000 real branch bank buildings to manage all of this counterfeit money!
This fraud has allowed the United States to have plenty of money ($107.8 Trillion) to buy military equipment. This accounting fraud is the only way we could finance what is now the most powerful military force on the planet.
This fraud has allowed the United States of America to become the planet bully! We are buying guns, bullets, and bombs with $107.8 Trillion that has been fraudulently borrowed from the future Americans!
This fraud has given the United States the fake money to buy the most powerful military force on the planet!
This fraud has given the United States the fake money to fraudulently produce the largest economy on the planet!
This fraud has been produced by pretending to borrow $107.8 Trillion of imaginary-counterfeit money from the future Americans, money that the future Americans do not have, and giving it to the U.S. upper class!
This fraud has promoted terrorism because there are certain groups that resent the fact that the western world is living an enhanced lifestyle because of the American Accounting Fraud!
This fraud has promoted civil unrest in America because many people resent the fact that the U.S. upper class has been fraudulently given $107.8 Trillion because of the American Accounting Fraud!
This fraud has encouraged racism in America because of the racial make-up of the haves versus that of the have-nots. This fraud tends to enrich the white U.S. upper class while it tends to oppress the white, black and brown that make up the U.S. Common Man.
This fraud is causing the U.S. upper class to get richer and richer because of the way this fraud works while the typical “real worker” must work for a relatively fixed hourly wage or salary.
This fraud is causing inflation which the U.S. upper class can tolerate because they are getting richer and richer while the typical “real worker” cannot deal well with this inflation because of their relatively fixed hourly wage or salary.
This fraud is causing the well-paying jobs in America to be “offshored” making it difficult for many American workers to find a decent paying job!
This fraud is producing an ever-increasing amount of imaginary-counterfeit money that is continually improving the lifestyle of the U.S. upper class at the expense of the U.S. Common Man and the rest of the planet.
However, when USAPonzi implodes this imaginary-counterfeit money will evaporate and the global economy will suffer a massive economic depression!
The American Accounting Fraud, that I have named USAPonzi, has fraudulently enhanced the dominance of the United States of America over the rest of the planet; economically, politically, militarily, and socially.
The dominance of the United States over the rest of the planet will be dramatically diminished or even eliminated when USAPonzi implodes. When a country can print an unlimited amount of its currency, as USAPonzi is doing, this will distort the global balance of power in favor of that country for at least a period of time.
We know all too well what happened in Germany when the Weimar Republic (1919-1933) began to print German Marks without the economic resources to back this money. It took a wheelbarrow load of marks to buy a loaf of bread. This is precisely what the U.S. Government is doing by using Cash Accounting rather than the proper GAAP Accounting; printing imaginary-counterfeit money with GAAP basis deficit spending. GAAP Accounting requires that future benefit payments be funded as soon as these benefits are earned to ensure that these future benefits can be paid. With proper GAAP Accounting and a balanced budget, money promised can be money paid! By operating with Cash Accounting, the U.S. Government has already made $107.8 Trillion of financial promises that can never be paid!
The fall of the Roman Empire was also accompanied by a systematic dilution in the amount of silver in Roman coins. This action was the Roman Central Government's attempt to finance its otherwise unsustainable dominance over the Roman Empire by making more and more Roman coins.
The U.S. Government is attempting to sustain an unsustainable standard of living in America by printing more and more imaginary-counterfeit money. Unfortunately, this American Accounting Fraud is producing dramatic but temporary inequity within America and between America and the rest of the planet. This American Accounting Fraud has unfairly given the United States economic, political, and military dominance over the rest of the planet. The United States has also attempted, directly and indirectly, to impose our “social and political norms” on the rest of the planet.
We must stop this fiscal and accounting fraud before we reach the point that led to Nazi Germany.
I contend that this fraud is the primary reason that we have such political polarity in Washington today. If the U.S. Government was operating with honest accounting, and all parties were working with the reality of a fair and balanced budget, we could then come to rational decisions on what promises can be made and paid. None of us will like the result when we eliminate this fraud that I call USAPonzi, but at least we will be making difficult but rational and hopefully fair financial decisions.
In today's fiscal policy decision making, both political parties are making irrational and unaffordable promises with no basis of fact as to what is affordable and what is not! Unfortunately almost all of the social benefit promises that are being made to U.S. citizens are unaffordable. You can't have your cake and eat it too! The U.S. Government has been promising benefits but underfunding these benefit promises for 48 years so that it can enrich itself and dramatically enrich the U.S. upper class!
|Cash Deficit in FY2018
|GAAP Deficit in FY2018
|US Unfunded Future Liabilities
|| $87.4 Trillion
|US Unfunded Liabilities (GAAP)
|| $107.8 Trillion
|Total National Assets
Source: www.usdebtclock.org Oct 10, 2017
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) and “USAPonzi2” (May 1, 2017) which are available on Amazon to better explain this fraud/Ponzi scheme.
This fraud/Ponzi scheme is also explained in “short story style” in my October 1, 2017 commentary USAPonzi CliffsNotes. and in my October 8, 2017 commentary USAPonzi Elevator Speech.
This is the biggest ($107.8 Trillion) financial fraud ever perpetrated, I call it “USAPonzi: The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”.
John W. White