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

High Net Worth-A Byproduct of USAPonzi
Nov 1, 2014
As posted on www.usaponzi.com


This commentary will explain how USAPonzi is systematically creating private net worth for U.S. (and global) citizens and businesses while incurring a massive U.S. public liability.  This commentary will also discuss a study done by Credit Suisse that shows that the United States has a disproportionately high percentage of the "Ultra High Net Worth" individuals in the world.  I contend that this is largely due to the effect of USAPonzi.


As this website has explained (see Introduction to USAPonzi), USAPonzi has dramatically undertaxed the U.S. citizens and businesses thereby creating $98.7 Trillion of counterfeit money over the last 46 years and as a result has caused many U.S. citizens and businesses to appear to be much richer (by 7-8X) than they really are and has caused U.S. businesses to appear to be much more successful, profitable, and valuable than they really are.  Since FY1969, the U.S. Government has been operating with Cash Accounting rather than the appropriate GAAP Accounting and as a result has not been properly reporting the magnitude of our Government's Deficit Spending.  The U.S. Government is only telling the U.S. citizenry and the world about our Cash Deficit and our Cash Debt and has not been reporting the magnitude of our Unfunded Liabilities.



By not taxing the U.S. citizens and businesses enough to cover our social benefit commitments, the U.S. Government has created a GAAP Obligation of $98.7 Trillion and as a result has caused U.S. citizens and businesses to appear to be $98.7 Trillion richer than rational and sustainable fiscal policy would dictate.  This GAAP Obligation is therefore a U.S. public liability that is to be paid for by future taxpayers.  But in FY2015, our U.S. Government income is projected to be $3.1 Trillion and our GAAP expenditures are projected to be $10.0 Trillion, so our Government is spending and committing to spend more than 3 times what the Government is taking in as revenue so there is no possibility that the future taxpayers can ever pay off this public liability.  The U.S. Government, in FY2015 alone, will create $6.94 Tillion of counterfeit money; $578 Billion a month and $19.0 Billion a day.  This undertaxing of the U.S. citizens and businesses is just creating counterfeit money that will vanish into "thin air" when USAPonzi implodes.


The current fiscal policy (USAPonzi) is therefore just a counterfeit money machine that is transferring counterfeit money from the future taxpayers to the current U.S. citizens and businesses at the rate of our GAAP basis Deficit Spending which is projected to be $6.94 Trillion in FY2015!  This GAAP basis Deficit is growing exponentially and if this policy is not corrected the U.S. Government will undertax the U.S. citizens and businesses by an infinite amount, create an infinite liability for future taxpayers, create an infinite amount of counterfeit money, and create an infinite (perceived) private net worth for U.S. citizens and businesses.

 

Washington has got to stop this madness.

 

But none the people in Washington or none the people on Wall Street or none the people in businesses want to fix the problem because it is appearing to make them rich and powerful and at an exponentially expanding rate.


But it will be a catastrophe of epic proportions when USAPonzi implodes.


U.S. Total Assets Bubble explains why the counterfeit money created by this GAAP Obligation is causing the private assets of Households, Corporations, and Small Businesses to appear to be worth 7-8 times what proper taxing according to GAAP Accounting would dictate.  The U.S. citizens and businesses have been enjoying a massive tax holiday for the last 46 years and it has made them appear to be much richer than they really are.   As of November 1, 2014

www.usdebtclock.org puts the value of our Total National Assets ( the assets of Households, Corporations, and Small Businesses) at $112.8 Trillion but $98.7 Trillion of that is the counterfeit money created by USAPonzi so "Real" private net worth is $14.1 Trillion which means that the "Real" net worth of all U.S. Households, Corporations, and Small Businesses is only about 12.5 cents on the perceived dollar (($112.8T-$98.7T)/112.8T=0.125).


Credit Suisse has published its 2014 Global Wealth Report that indicates that 49% of the Ultra High Net Worth (over $50 Million) individuals live in the United States.  I contend that USAPonzi is responsible for this dramatic skewing of the Ultra High Net Worth toward U.S. citizens by undertaxing U.S. citizens and businesses by $98.7 Trillion over the last 46 years.


The following table shows the number of Ultra High Net Worth (over $50 Million) residents by country according to this Credit Suisse report.

 

 

     United States          62,800
     China                        7,600
     Germany                   5,500
     United Kingdom        4,700
     France                       4,100
     Russia                       2,800
     Canada                     2,600
     Taiwan                      2,000
     Brazil                         1,900
     South Korea              1,900
     India                          1,800
     HongKong                 1,500


While it is clear to me that the number of Ultra High Net Worth individuals in the United States is highly influenced by USAPonzi ($98.7 Trillion of counterfeit money can make a lot of people appear to be very rich), I contend that USAPonzi is also a significant contributor to the total number of worldwide Ultra High Net Worth individuals since USAPonzi has created massive purchasing power for U.S. citizens and businesses which enhances global economic activity and wealth creation in other countries since we can spend our counterfeit dollars any place in the world, at least for now.

 

The U.S. Government's current corrupt and fraudulent fiscal policy has been causing U.S. citizens' and businesses' private assets to increase dramatically while the U.S. public liabilities have been increasing at nominally the same rate.  This makes it look like the economy is doing quite well, makes it look like businesses are quite successful, profitable, and valuable, and makes it look like a lot of people are getting very rich.  The U.S. Government is intentionally transferring counterfeit money from future taxpayers to current U.S. citizens and businesses.


But this is all an illusion that is created by USAPonzi.


The U.S. Government is virtually stuffing counterfeit money into the pockets of U.S. citizens and businesses at the rate of $6.94 Trillion in FY2015 for a total of $98.7 Trillion since FY1969.


USAPonzi Long Term Projection shows that if we continue with current fiscal policy (USAPonzi), by the year 2150 the U.S. Government will have created $98.6 Quadrillion (a Quadrillion is 1,000 Trillion) of counterfeit money and debt as a percent of GDP will be 13,108%.  By then the U.S. should have a much higher percentage of the world's Ultra High Net Worth individuals.


USAPonzi Long Term Projection also shows that if we continue with current fiscal policy (USAPonzi)our GAAP Deficit will exceed GDP by FY2052!


Next Page: Income Inequality-A Byproduct of USAPonzi