Icahn/Trump: We are in a Bubble like you've never seen before!
Updated July 9, 2015 to correct Debt double count. After further research of the usdebtclock GAAP Unfunded Liabilities, I have determined that this number includes the National Debt. In my prior commentaries I had separated money spent (debt) from money promised to be spent (unfunded liabilities). I will maintain that terminology on this website but recognize that the usdebtclock Unfunded Liabilities = Debt + Unfunded Future Liabilities.
As posted on www.usaponzi.com
The following is a quote by Carl Icahn on June 19, 2015 responding to Donald Trump's statement that "We are in a bubble like you've never seen before".
Excerpt from Carl Icahn's comments:
"But I am knowledgeable concerning markets and believe Donald is completely correct to be concerned that we have 'a big fat bubble coming up. We have artificially induced low interest rates.'
I personally believe we are sailing in dangerous unchartered waters. I can only hope we get to shore safely. Never in the history of the Federal Reserve have interest rates been artificially held down for so long at the extremely low rates existing today. I applaud Donald for speaking out on this issue – more people should."
End of Carl Icahn comments.
ZeroHedge article on Icahn's reaction to Trump considering him as his Secretary of the Treasury if he was elected President of the United States.
As the readers of this website well know, I contend that we are in a massive asset bubble because of the corrupt and fraudulent Fiscal Policy of the U.S. Government (see U.S. Total Asset Bubble) that has produced "The Biggest Ponzi Scheme on the Planet". I therefore agree with both Carl Icahn and Donald Trump that we are in a major bubble. However I do not agree with them that this bubble is caused by the Federal Reserve's Monetary Policy.
I am truly amazed that so few economists, media pundits, government officials, and business leaders are acknowledging the fact that we are in a major asset bubble because the U.S. Government is running a Ponzi scheme that is dramatically undertaxing the U.S. citizens and businesses (by $96.9 Trillion) to appear to make us wealthy and prosperous. This undertaxing has produced debt of $18.3 Trillion, Unfunded Future Liabilities of $78.6 Trillion, and counterfeit wealth of $96.9 Trillion. While most people do not comment on this bubble and its cause, there are several individuals and organizations that are in fact Sounding the Alarm on U.S. Government Fraud, our debt, our deficit, and our Fiscal Policy.
Our Monetary Policy has created $4.5 Trillion of counterfeit money by the phantom purchase of debt instruments. This is enough to produce a "small bubble".
Our Fiscal Policy has created $96.9 Trillion of counterfeit money by the GAAP basis undertaxing of the U.S. citizens and businesses. This has produced a "massive bubble".
If we do not have to pay taxes of $96.9 Trillion (and this amount is increasing exponentially) then some people have got to be getting rich!!! This is what is making the upper class U.S. citizens so rich and the upper class U.S. businesses so profitable.
Our Fiscal Policy has inappropriately made the ruling class prosperous and some of them rich and has inappropriately made the upper class super prosperous and some of them super rich. $96.9 Trillion of counterfeit money can appear to make a lot of people very rich.
The U.S. Government is Corrupt! Creating counterfeit money is what is causing bubbles in the stock market, the real estate market, the bond market, upper class wealth, upper class compensation, and basically all asset classes. Our Fiscal Policy (USAPonzi) is pre-programmed to create an infinite amount of Public Liabilities, an infinite amount of counterfeit money, and an infinite amount of apparent Private Net worth. That is what Ponzi schemes do; they create bubbles. USAPonzi has created a massive asset bubble as measured by our Public Liabilities which now stands at $96.9 Trillion! That is one damn big bubble!
When the U.S. economy and the global economy is being financed by counterfeit money that is being borrowed from the future U.S. taxpayer our apparent Private Wealth can go to the moon. We can increase the minimum wage and we can offer more social benefits without any problem because most everything we have and most everything we do will eventually be paid for by the future U.S. taxpayer. The current Fiscal Policy will create an infinite amount of Public Liabilities for the future U.S. taxpayer so the upper class citizens and businesses can buy and own whatever they want. 2X infinity is not any bigger than infinity. 4X infinity is not an bigger than 2X infinity. Etc.,etc.,etc.....
USAPonzi disproportionally allocates this counterfeit money to the most prosperous U.S. citizens and businesses since they are the ones that should be paying the taxes to fund the spending and committing to spend of the U.S. Government. USAPonzi operates like an inverted pyramid, the richer you are the richer you get. People that work for a fixed wage do not get much benefit from this Ponzi scheme, if fact they will have a decreasing quality of life unless their pay rate or social benefit payments keep pace with inflation since USAPonzi itself causes inflation.
Since the upper class U.S. citizens and businesses are primarily the ones that do not have to pay these taxes, they, in the end game, get almost all of the exponentially increasing amount of counterfeit money ($96.9 Trillion) that USAPonzi is producing.
The ruling class, the people that work in the U.S. Government, get pass thru benefit of this scheme since they are paying themselves much more than we can afford.
The people that work for the companies and businesses that are paid by the U.S. Government also get pass thru benefit of this scheme since the U.S. Government is paying them much more than we can afford.
The lower class citizens, the disabled, the unemployed, and the elderly see short term benefit from USAPonzi because they are currently being paid more social benefits than we can afford.
The middle class working citizens really get cheated because they make payments into Social Security and Medicare but the U.S. Government spends that money and does not fund the future social benefits so there is absolutely nothing in the social benefit trust fund to pay the ongoing/future social benefits for either the lower class or the middle class (see Cheating the Common Man!).
USAPonzi is making us appear to be much more wealthy and prosperous than we really are by spending money the current taxpayer does not have and promising to spend money the future taxpayer will never have. This is why The U.S. Government is corrupt!
Yes, Donald and Carl, "We are in a bubble like you've never seen before" and GAAP accounting, properly applied, tells us how big that bubble is (Public Liabilities = Debt + Unfunded Future Liabilities) and how fast it is expanding (GAAP Deficit).