Creating Imaginary-Counterfeit Wealth
September 8, 2016
The U.S. Government is creating imaginary-counterfeit wealth by borrowing imaginary-counterfeit money from the future Americans and giving it to the current Americans. The U.S. Government does this by using an improper accounting system that has dramatically undertaxed the current Americans on a GAAP basis by $103.4 Trillion. This fiscal policy, if continued, will give an infinite amount of imaginary-counterfeit wealth to the U.S. upper class.
The U.S. Government has already handed out $103.4 Trillion of imaginary-counterfeit money, is handing out $5.71 Trillion (GAAP Deficit) more imaginary-counterfeit money in FY2016, and the amount being handed out each year is increasing on an exponential trajectory. The U.S. Government distributes this imaginary-counterfeit money by overpaying the U.S. Government employees and related businesses, overpaying the social benefit recipients, and undertaxing the U.S. taxpayers.
Since 1969, the U.S. Government has been operating with Cash Accounting and therefore has only been attempting to collect enough tax revenue to cover current year expenditures and ignoring the implied cost of future benefit commitments. The U.S. Government has not collected enough tax revenue to cover current year expenditures over the last 47 years creating National Debt of $19.5 Trillion. GAAP Accounting (Accrual Accounting) assesses the amount of additional money that the U.S. Government should have accrued in trust funds to meet all of its future benefit promises. This is called our Unfunded Future Liabilities and these public liabilities now total $83.9 Trillion.
The sum of our National Debt and our Unfunded Future Liabilities is called our US Unfunded Liabilities (GAAP) which now total $103.4 Trillion. This means that the U.S. Government has deferred public liabilities of $103.4 Trillion to the future Americans and undertaxed the current Americans by $103.4 Trillion. The U.S. Government has borrowed $103.4 Trillion from the future Americans and given this money to the current Americans. The U.S. Government imagines that the future Americans can pay these deferred public liabilities, making this borrowed money imaginary money but there is no hope that the future Americans can ever pay these taxes so this borrowed money is counterfeit money. This means that the current Americans have gained $103.4 Trillion of imaginary-counterfeit wealth simply by being undertaxed (see The Theory of Imaginary Money).
This is U.S. Government fraud. The U.S. Government has given the current Americans $103.4 Trillion by pretending that the future Americans can pay these deferred public liabilities of $103.4 Trillion. The U.S. Government has undertaxed the current Americans by $103.4 Trillion which has created $103.4 Trillion of imaginary-counterfeit money and $103.4 Trillion of imaginary-counterfeit wealth. Since the only taxpayers that could possibly pay these taxes are the upper class citizens and busineses, the U.S. upper class receives most of the benefit of this fraud. This is what has created the wealth gap, the U.S. upper class has been given $103.4 Trillion of imaginary-counterfeit money because the U.S. Government is operating with a dramatically unbalanced budget.
Worse yet, the Common Man and the under privileged have been promised U.S. Government benefits that are valued at $83.9 Trillion and the U.S. Government has chosen to overpay the U.S. ruling class and undertax the U.S. upper class rather than fund the future benefit promises that it has made to the Common Man and the under privileged.
|Cash Deficit in FY2016
|Cash Deficit in FY2016
|Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|Total National Assets
Source: www.usdebtclock.org Sep 8, 2016
This is how the U.S. Government has been able to make the U.S. upper class appear to be very, very wealthy, simply by undertaxing them by $103.4 Trillion. However, this money was borrowed from the future Americans who cannot pay it so this wealth gain is imaginary-counterfeit wealth.
The private net worth of all U.S. citizens and businesses is reported on www.usdebtclock.org as Total National Assets. As of Sep 8, 2016 the U.S. private net worth is estimated to be $123.4 Trillion but $103.4 Trillion of that is imaginary-counterfeit money that the U.S. Government has borrowed from the future Americans. Therefore, most (84%) of our U.S. private net worth has been created by U.S. Government fraud ($103.4T/$123.4T = 0.838).
The U.S. Government is creating imaginary-counterfeit money, imaginary-counterfeit prosperity, and imaginary-counterfeit wealth by using Cash Accounting rather than the proper GAAP Accounting. The U.S. Government is borrowing imaginary-counterfeit money from the future Americans and giving it the current Americans to make the U.S. upper class appear to be very, very wealthy and to allow current Americans to buy things they cannot afford with this imaginary-counterfeit money.
The U.S. Government is creating imaginary wealth and imaginary prosperity for the current Americans by borrowing $103.4 Trillion from the future Americans when the current U.S. taxpayers are not able to even pay for current year expenditures. This is the nature of a Ponzi scheme. The U.S. Government is allowing the current Americans to spend $103.4 Trillion of the future Americans' money when the current U.S. taxpayers are being undertaxed by $5.71 Trillion (GAAP Deficit) in FY2016.
This is absolutely absurd! This is fraud! This fraud is cheating the Common Man and the rest of the planet! This fraud is making the U.S. upper class very, very wealthy with imaginary-counterfeit money!
We are filling the planet with junk that is being bought and built with the imaginary-counterfeit money that has been fraudulently borrowed from the future Americans and we are borrowing more imaginary-counterfeit money every day (See Filling the Planet with Junk!).
The U.S. Government is creating imaginary-counterfeit money out of "thin air" by incurring public liabilities. This imaginary-counterfeit money will evaporate when this Ponzi scheme implodes (See The Implosion of USAPonzi).
This problem can only be equitably resolved by the adoption of GAAP Accounting and a commitment to a balanced GAAP basis budget by the U.S. Government.
In order to create a level economic playing field throughout the planet, the U.S. Government must eliminate this fraud and corruption.
You can learn more about this fraud/Ponzi scheme by reading my website www.usaponzi.com or better yet by reading my book "USAPonzi" which is available on Amazon and also on my website in PDF format.
This is the biggest ($103.4 Trillion) financial fraud ever perpetrated, I call it "USAPonzi: The Ultimate Government Fraud" and "The Biggest Ponzi Scheme on the Planet"!