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

imaginary-counterfeit money re-explained
February 27, 2018
Emailed to WSJ/NYT/WP/DMN, the US SEC, Congressman Pete Sessions, Congressman Sam Johnson, Senator John Cornyn, and Senator Ted Cruz on 2/27/18


The following is an Op-Ed to “The Wall Street Journal”, “The New York Times”, “The Washington Post”, and “The Dallas Morning News” that re-explains the meaning of imaginary-counterfeit money! The U.S. Government is digitally printing Trillions and Trillions of imaginary-counterfeit money by not operating with proper and Generally Accepted Accounting Principles (GAAP Accounting)!


The “news media” has an ethical responsibility to inform the general public of how the U.S. Government is committing fiscal and accounting fraud to cheat the general public and the rest of the planet so they can “feather their own nests” and “dramatically feather the nests of their upper-class friends”!


The “news media” is aiding and abetting the corrupt and criminal U.S. Government by refusing to report this fiscal and accounting fraud!


imaginary-counterfeit money re-explained

February 27, 2018


Note:
Financial data in this commentary was sourced from www.usdebtclock.org as of February 27, 2018 as shown in the table below!


In this commentary I will attempt to better explain the meaning of imaginary-counterfeit money! I originally tried to explain this concept in an earlier commentary The Concept of Imaginary-Counterfeit Money!


Imaginary-counterfeit money is the money that the U.S. Government has borrowed from the future Americans and given to the current Americans!


imaginary-counterfeit money = US Unfunded Liabilities (GAAP)


The United States of America appears to be the wealthiest and most prosperous country on the planet because the U.S. Government is borrowing money from the future Americans, money that the future Americans do not have, and giving it to the current Americans, primarily to the U.S. upper class by undertaxing them! I call this fraudulently borrowed money; imaginary-counterfeit money.


The U.S. Government must use proper GAAP Accounting AND balance the GAAP basis budget to avoid printing this imaginary-counterfeit money!


America appears to be wealthy and prosperous because the U.S. Government is not operating with proper GAAP Accounting and as a result is fraudulently borrowing money from the future Americans ($112.2 Trillion so far), money that the future Americans do not have, and giving it to the U.S. upper class! The U.S. Government, according to GAAP Accounting, has deferred $112.2 Trillion of public liabilities (US Unfunded Liabilities (GAAP)) to the future Americans and has undertaxed the current Americans by $112.2 Trillion! The current Americans, primarily the U.S. upper class, have gained $112.2 Trillion because they did not have to pay this $112.2 Trillion of taxes!


I call this money that is gained by undertaxing the current Americans; imaginary-counterfeit money! It is imaginary because the U.S. Government likes to imagine (pretend) that the future Americans will pay this money someday but it is counterfeit because the future Americans can never pay any of these deferred public liabilities (US Unfunded Liabilities (GAAP))! The future Americans cannot pay $112.2 Trillion of public liabilities!!!!


The U.S. Government is committing a $112.2 Trillion fraud by using Cash Accounting rather than the proper GAAP Accounting! This is a classic Ponzi scheme that I have named USAPonzi! This is a $112.2 Trillion criminal act that is being perpetrated by the U.S. Government! This fraud is producing money out of “thin air” to fraudulently enrich the U.S. upper class and fraudulently overpay the U.S. ruling class!


When the U.S. Government spends and promises to spend in excess of its income, this is called deficit spending! The cumulative effect over time of deficit spending by a sovereign entity (like America) is called public liabilities! The U.S. Government, by reporting our deficit and public liabilities on a Cash basis, reports that we have a Cash Deficit of $0.72 Trillion in FY2018 and a National Debt of $20.8 Trillion. But by reporting its financial condition on a cash basis, the U.S. Government is dramatically understating our true public deficit and our true public liabilities!


What the U.S. Government does not tell us is that they are not properly accruing for the future benefit promises that the U.S. Government has made to the U.S. general public. The U.S. Government now has US Unfunded Future Liabilities of $91.4 Trillion. The U.S. Government is not operating its fiscal policy with what is called “accrual accounting”!


US Unfunded Liabilities (GAAP) = National Debt + US Unfunded Future Liabilities
                               $112.2 Trillion$20.8 Trillion$91.4 Trillion  


Accrual accounting
requires that when a financial entity is making future benefit commitments to its constituents, it must set aside (accrue) the money to pay for these future benefit commitments when these future benefit commitments have been earned. For example, when a U.S. citizen turns 65 the U.S. Government must set aside (accrue) the money to pay all of the expected future Social Security and healthcare benefits for that citizen!


In the United States of America, accrual accounting is called GAAP Accounting (Generally Accepted Accounting Principles). The U.S. Government requires that all public companies report their financial condition according to GAAP Accounting so that investors in these companies can properly and fairly assess the value of these publicly traded companies. The U.S. Government itself is not operating its fiscal policy according to Generally Accepted Accounting Principles! The U.S. Government is not using GAAP Accounting!


The corrupt and criminal U.S. Government tells us that they have a deficit of $0.72 Trillion in FY2018 and public liabilities (National Debt) of $20.8 Trillion when our true deficit on a GAAP basis is $5.99 Trillion and our true public liabilities (US Unfunded Liabilities (GAAP)) are $112.2 Trillion!


By operating with simple Cash Accounting rather than the proper GAAP Accounting, the U.S. Government is cheating the U.S. general public by promising them future benefits but not properly “accruing” for them ($91.4 Trillion of US Unfunded Future Liabilities) and is enriching the U.S. upper class by deferring this $112.2 Trillion of public liabilities to the future Americans!


Public liabilities become private assets in the pockets of the people and businesses that did not pay the taxes to cover the cost of these deferred public liabilities. I call this money that is gained by not having to pay these taxes; imaginary-counterfeit money. This money is imaginary because it does not exist, it is just a promise that it will be paid at some future date by the future Americans. This money is counterfeit because the future Americans can never pay these deferred public liabilities (See The Concept of Imaginary-Counterfeit Money)!


GAAP basis deficit spending digitally prints imaginary-counterfeit money! The corrupt and criminal U.S. Government has fraudulently borrowed $112.2 Trillion of imaginary-counterfeit money from the future Americans and given it to the U.S. upper class by undertaxing them by $112.2 Trillion. The U.S. Government has deferred
$112.2 Trillion of public liabilities (US Unfunded Liabilities (GAAP)) to the future Americans which can never be paid!


America looks wealthy because the U.S. Government has borrowed $112.2 Trillion of imaginary-counterfeit money from the future Americans and given it to the U.S. upper class!


America looks prosperous because the U.S. Government is borrowing another $16.4 Billion of imaginary-counterfeit money from the future Americans every day and giving it to the U.S. upper class (GAAP Deficit in FY2018 of $5.99T/365 days = $16.4B/day)!


The U.S. upper class appears to be getting rich because the U.S. Government has borrowed $112.2 Trillion of imaginary-counterfeit money from the future Americans and given it to the U.S. upper class by undertaxing them!


Every dollar of GAAP basis deficit spending becomes an imaginary-counterfeit dollar in the pocket of the person or business that did not have to pay that tax dollar! The more the U.S. Government overspends the richer the U.S. upper class appears to be but with imaginary-counterfeit money! By running its fiscal policy with GAAP basis deficit spending since FY1969, the U.S. Government has given the current Americans $112.2 Trillion of imaginary-counterfeit money!


According to www.usdebtclock.org, the total net worth of all U.S. citizens and businesses (US Total Assets) is estimated to be $135.6 Trillion but unfortunately 83% of that has been fraudulently borrowed from the future Americans as imaginary-counterfeit money ($112.2T/135.6T = 0.828)!


Because of this fraud, we now have millions of imaginary-millionaires and hundreds of imaginary-billionaires (See The Imaginary Millionaires and Billionaires)! $112.2 Trillion of imaginary-counterfeit money has made a lot of people appear to be very rich! Upper-class Americans are getting filthy rich because they have been undertaxed by $112.2 Trillion by fraudulently deferring $112.2 Trillion of public liabilities to the future Americans!


Imaginary-counterfeit money
is money that the U.S. Government has borrowed from the future Americans, money that the future Americans do not have, and given to current Americans, primarily the U.S. upper class! GAAP Accounting reports the amount of imaginary-counterfeit money in the global financial system as the amount of public liabilities that the U.S. Government has deferred to the future Americans (US Unfunded Liabilities (GAAP))!


America appears to be wealthy and prosperous because the U.S. Government has fraudulently borrowed $112.2 Trillion of imaginary-counterfeit money from the future Americans, money that the future Americans do not have, and given it to the U.S. upper class!


Americans are now buying stuff with this $112.2 Trillion of imaginary-counterfeit money that the corrupt and criminal U.S. Government has fraudulently borrowed from the future Americans! Americans are buying cars, houses, airplanes, smartphones, junk from Amazon, etc with imaginary-counterfeit money that the U.S. Government has fraudulently borrowed from the future Americans and given to the current Americans. The U.S. Government has created $112.2 Trillion of imaginary-counterfeit money out of “thin air” by deferring $112.2 Trillion of public liabilities to the future Americans that the future Americans can never pay!


The future Americans cannot pay $112.2 Trillion of public liabilities (US Unfunded Liabilities (GAAP)) and who in their right mind would be willing to buy $112.2 Trillion of U.S. Treasuries when the U.S. Government is running a $5.99 Trillion GAAP basis deficit in FY2018? The U.S. Government has already sold $20.8 Trillion of U.S. Treasuries that will never be paid back and the Federal Reserve Bank owns $4.4 Trillion of these U.S. Treasuries in an effort to keep interest rates low!


The corrupt and criminal U.S. Government is committing fiscal and accounting fraud to give the appearance of  “Wealth and Prosperity in America”!


The “news media” is aiding and abetting this criminal act by the U.S. Government by refusing to expose this fiscal and accounting fraud!

 

National Debt  $20.8 Trillion 
Cash Deficit in FY2018  $0.72 Trillion 
GAAP Deficit in FY2018  $5.99 Trillion 
US Unfunded Future Liabilities  $91.4 Trillion 
US Unfunded Liabilities (GAAP)  $112.2 Trillion 
Imaginary-Counterfeit Money  $112.2 Trillion 
Total National Assets  $135.6 Trillion 

Source: www.usdebtclock.org Feb 27, 2018


To eliminate this fraud, the U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget.


I have published a website www.usaponzi.net that explains how this fraud works to create a massive global wealth and income gap between the haves and the have-nots and to create false wealth and prosperity for the current Americans. The www.usaponzi.net website is an introduction to my more detailed website www.usaponzi.com and my books “USAPonzi” (Nov 22, 2015), “USAPonzi2” (May 1, 2017), and “USAPonzi3” (Feb 1, 2018) which are available on Amazon to better explain this fraud/Ponzi scheme.


This is the biggest ($112.2 Trillion) financial fraud ever perpetrated, I call it “USAPonzi: The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”.


John W. White
Plano, TX