November 22, 2015
The story of USAPonzi will end with either a controlled defusing of this Ponzi scheme or the more likely uncontrolled implosion when the participants become aware that the U.S. Government has been promising a fantasy world economic and financial system by operating with a corrupt and fraudulent fiscal policy.
The proper handling of the U.S. Government's fiscal policy can only be accomplished by the U.S. Government telling the truth and begin using honest accounting. This means adopting GAAP Accounting and committing to a balanced GAAP basis budget. But we must also get global agreement that all countries will begin using GAAP Accounting (or equivalent) and commit to a balanced budget. If we are to have fair and honest trade between countries. we must have confidence in the value and stability of the currency of the trading partners.
The Implosion of USAPonzi will be Very Traumatic
The implosion of USAPonzi will be very traumatic for many parts of the planet but especially in the United States as described in The Implosion of USAPonzi. The big problem is that it will reduce the standard of living across the board in the U.S. and it will cause a lot of our physical assets to fall into disuse since we really cannot afford to own, operate, use and maintain them. We didn't really have the money to buy and build these physical assets and after USAPonzi implodes, we will not have the money or the time to use them. We will be too busy trying to make a living wage. Right now, most of the U.S. and much of the developed world is living on the counterfeit money produced by USAPonzi.
Leveling the playing field
The implosion of USAPonzi will level the playing field both within the U.S. and across the planet. USAPonzi is rigged to favor Americans and within America it is rigged to favor the ruling class and is rigged to dramatically favor the upper class. Honest accounting will dramatically reduce all of these dimensions of inequality. But the price will be that everybody in the U.S. will see a lower, even much lower standard of living.
Reducing global conflict
The implosion of USAPonzi will likely reduce global conflict. One of the "benefits" of USAPonzi is that it creates lots of counterfeit money that, for now, can be used by all parties to raise a "war chest". Much of this capacity will go away when the counterfeit money evaporates and we will not be able to afford as many instruments of war and the mercenary warriors will not be so anxious to go to war when they are not getting paid.
Increasing local conflict
The implosion of USAPonzi will likely increase local conflict and lead to significant civil unrest. Since a major portion of the U.S. population is relying on social benefits that we cannot afford, we are going to have a lot of people that are very disappointed that the U.S. Government has hoodwinked them into thinking that they deserve something that we cannot afford. They will also not be happy to find out that the ruling class used their paid in money intended to finance these social benefits to overpay the ruling class. They will also not be happy to find out that the reason there is not enough money to pay these social benefits is because the ruling class was not funding the social benefit trust fund so they could undertax the upper class to make them appear to be very rich.
The fundamental problem is that the U.S. Government has made many commitments and promises that it cannot keep. The U.S. Government is using an accounting system that cannot accurately assess what is economically viable and what is not.
The coming global financial and economic meltdown and reset is going to be very traumatic and it will level the playing field, but I feel that it is imperative that the U.S. Government must establish a sustainable social benefit plan for the under privileged.
The current fiscal policy has been unfairly skewed toward the ruling class and the upper class but with the lowered standard of living that I predict the restructured fiscal plan must deliver a fair shake for the middle and lower class citizens. We must concentrate on providing sustainable basic benefits for all parties. That will mean lower medical benefits than would be desirable but jobs, food, and shelter should take priority.
The key problem with USAPonzi is that it does not in any way assess affordability and sustainability. That will change with the use of GAAP Accounting and a balanced GAAP basis budget.
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