The Bankruptcy of The United States of America!
Converting Public Liabilities into Private Assets!
November 8, 2016
America appears to be wealthy because the U.S. Government has borrowed $104.1 Trillion from the future Americans.
America has $123.9 Trillion of apparent private net worth (US Total National Assets) largely because the U.S. Government has borrowed $104.1 Trillion from the future Americans (US Unfunded Liabilities (GAAP)).
The U.S. Government is corrupt because it is operating with a dramatically unbalanced budget on a GAAP basis and is reporting its financial status on a Cash basis. This unbalanced budget is undertaxing the current Americans and deferring public liabilities to the future Americans which the future Americans cannot pay.
Because of this fiscal policy, current Americans are appearing to be prosperous and wealthy simply because the U.S. Government is borrowing money (imaginary-counterfeit money) from the future Americans, money that they do not have, to give to the current Americans!
The U.S. Government is converting public liabilities into private assets (imaginary-counterfeit money) by operating with a dramatically unbalanced budget by using Cash Accounting rather than the proper GAAP Accounting.
The U.S. Government is undertaxing the current Americans which gives assets/money to current Americans while deferring public liabilities to the future Americans. As of November 8, 2016, the U.S. Government has borrowed $104.1 Trillion of imaginary-counterfeit money from the future Americans to make the current Americans appear to be very prosperous and wealthy. The problem with this fiscal policy of the U.S. Government is the fact that the future Americans do not have $104.1 Trillion. In fact, the current Americans cannot even pay for the U.S. Government's spending in FY2017 yielding a $5.68 Trillion GAAP Deficit this fiscal year.
When the U.S. Government needs money, it just borrows more money from the future Americans that the future Americans do not have. To date, the U.S. Government has borrowed $104.1 Trillion of imaginary-counterfeit money from the future Americans. If you tried this scheme, the U.S. justice system would put you away for a very long vacation. This is a classic Ponzi scheme; pay the early participants with money from the late participants.
|US Federal Tax Revenue (Cash)
|US Federal Spending (Cash)
|Cash Deficit in FY2017
|US Federal Spending (GAAP)
|GAAP Deficit in FY2017
| US Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|Total National Assets
Source: www.usdebtclock.org November 8, 2016
The U.S. Government now has $104.1 Trillion of public liabilities (US Unfunded Liabilities (GAAP)), income in FY2017 (US Federal Tax Revenue) of $3.29 Trillion, spending in FY2017 (US Federal Spending (GAAP)) of $8.97 Trillion, and therefore a GAAP Deficit in FY2017 of $5.68 Trillion. The current Americans will gain private wealth (imaginary-counterfeit money) of $5.68 Trillion this year by not paying the taxes required to balance the budget.
Public liabilities magically create imaginary-counterfeit private money that produces imaginary-counterfeit private prosperity and wealth. But when the planet finally realizes that these public liabilities cannot be paid, this apparent private prosperity and wealth will evaporate. In the theory of Ponzi schemes, this is referred to as the implosion of the Ponzi scheme. The fraudulent gains of the Ponzi scheme come crashing down when the late participants in the scheme finally realize that the operators of the scheme have been fooling them. The U.S. Government has been fooling almost all of the planet for 48 years.
Currently, the U.S. upper class thinks they are getting wealthy but their apparent wealth gain is in imaginary-counterfeit money, the Common Man thinks they are going to receive a continuing stream of government benefits that cannot be paid because the U.S. Government has not funded these future promises, and the rest of the planet thinks that they are going to get their money when they sell products and services to Americans but they are being paid with imaginary-counterfeit money. Everyone is going to suffer massive economic and financial distress when USAPonzi implodes causing "The Greatest Depression".
Public liabilities produce temporary (imaginary-counterfeit) private prosperity and wealth!
The U.S. Government is operating with an unbalanced budget to produce this imaginary-counterfeit private prosperity and wealth and is careful to give a little to the Common Man (overpaying government benefits), a lot to the U.S. ruling class (overpaying government employees, campaign contributions, book fees, speaking fees, and bribes), and a whole hell of a lot to the U.S. upper class (undertaxing).
The U.S. ruling class loves this fraud because they are being paid handsomely with this fraudulently borrowed money and some of them are even getting filthy rich because of this fraud (See The Clinton Fraud). The Clintons have gotten rich because the U.S. Government is fraudulently borrowing money from the future Americans which makes people, companies, and countries flush with imaginary-counterfeit money ($104.1 Trillion) so that they can pay campaign contributions, book fees, speaking fees, foundation contributions, and bribes to the Clintons.
The U.S. upper class loves this fraud because they appear to be getting filthy rich ($104.1 Trillion) with this fraudulently borrowed money!
Americans love this fraud because they are buying stuff they cannot afford with this fraudulently borrowed money.
The rest of the planet is getting ripped off because Americans are buying stuff from them with this fraudulently borrowed money. $104.1 Trillion of imaginary-counterfeit money can buy a lot of crazy stuff!
The Common Man is getting ripped off in the long run because the U.S. Government is promising to pay social benefits, pensions, and veterans' benefits but has underfunded them by $84.3 Trillion (US Unfunded Future Liabilities). The U.S. Government simply does not have the money to pay these false promises in the future because it has undertaxed the rich so that the U.S. upper class can become even richer and so that the U.S. ruling class can be overpaid rather than funding these future benefit promises.
The U.S. Government has borrowed $104.1 Trillion, which is 31 times its income, from the future Americans and is spending $8.97 Trillion which is nearly 3 times its income in FY2017. It should not take a genius to realize that the U.S. Government has a very serious problem.
The U.S. Government is overspending, overcommitting, undertaxing, lying, and bankrupt!
The U.S. Government is being run by a bunch of criminals!
When USAPonzi implodes and this stash ($104.1 Trillion) and flow ($15.6 Billion/day) of imaginary-counterfeit money evaporates, the global economy will come to an abrupt stop, triggering "The Greatest Depression".
And now the U.S. Government will be led by an imaginary-counterfeit Billionaire that will have to deal with the bankruptcy of United States of America while his family is dealing with his own bankruptcy!
The United States of America, the U.S. Government, and Donald Trump are all in one hell of a mess!
This fraud is explained in CliffsNotes format (USAPonzi CliffsNotes) and is also explained in much more detail on my website www.usaponzi.com and in my book “USAPonzi” which is available on Amazon in Kindle and Paperback formats and on my website in PDF format.
This is the biggest ($104.1 Trillion) financial fraud ever perpetrated; I call it “USAPonzi: The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”.