Op-Ed to the Wall Street Journal
Jan 5, 2015
As posted on www.usaponzi.com
To: Mark Lasswell
Editorial Features Editor
Wall Street Journal
The U.S. Government is promising to pay social benefits to U.S. residents that greatly exceed the U.S. taxpayer's financial capability to pay. The U.S. Government is attempting to conceal this inability to pay by using an improper accounting methodology, using Cash Accounting vs. the proper GAAP Accounting. This has created a classic Ponzi scheme by promising returns to the U.S. residents that can only be paid by an expectation of an ever increasing amount of future tax receipts, which now stands at $100 Trillion and is increasing by $17.8 Billion every day. By using Cash Accounting the U.S. Government does not disclose the fact that it is not even attempting to fund these social benefit promises.
The U.S. Government is therefore able to undertax the current and previous U.S. taxpayers making them appear to be very rich (by $100 Trillion) while putting the future U.S. citizens at great financial peril since many of them are counting on the social benefits that the U.S. Government will not be able to pay.
This has created a "Ponzi Economy" that I have named USAPonzi.
John W White
USAPonzi-The Ponzi Economy of the USA
The Government of the United States of America has been operating a massive ($100 Trillion) Ponzi scheme since Fiscal Year 1969 by promising that it will pay social benefits to U.S. residents that are unaffordable, and not funding these promises, creating $82 Trillion of Unfunded Liabilities. The U.S. Government has also been dramatically overspending its tax receipts, including dramatically overpaying themselves and the direct and indirect U.S. Government employees, creating $18.0 Trillion of Debt.
As a result, the U.S. Government now has a GAAP Obligation (Debt plus Unfunded Liabilities) of $100 Trillion by undertaxing the U.S. citizens and businesses making them (primarily the UPPER CLASS) appear to be $100 Trillion richer. The U.S. Government attempts to conceal this Ponzi scheme by using Cash Accounting versus the proper GAAP (Generally Accepted Accounting Principles) Accounting; reporting a Cash Deficit of $0.5 Trillion in FY2015 when our "real" GAAP Deficit is expected to be $6.5 Trillion.
By using Cash Accounting rather than the proper GAAP Accounting and by overspending its cash receipts; the U.S. Government is making the U.S. citizens and U.S. businesses appear to be $100 Trillion richer than they would be with honest accounting, is overpaying themselves and the direct and indirect government employees, and is cheating the common man and the underprivileged by $87 Trillion by not funding the social benefit promises.
The current fiscal policy of the U.S. Government has caused the U.S. citizens and U.S. businesses to appear to be 7-10 times richer than they really are because the U.S. Government has assumed $100 Trillion of public liabilities. This fiscal policy has passed this $100 Trillion GAAP Obligation forward to the future U.S. taxpayer and is adding $17.8 Billion (GAAP Deficit of $6.5T/365=$17.8B) more to this GAAP Obligation every day. This $100 Trillion is now circulating in the global economy as counterfeit money since it is to be paid by the future U.S. taxpayer but can never be paid since the U.S. Government is already spending more every year, even on a cash basis, than the U.S. taxpayer is paying in taxes.
By overspending, overpromising, undertaxing, and using corrupt and fraudulent accounting; the U.S. Government is running "The Biggest Ponzi Scheme on the Planet". This Ponzi scheme (USAPonzi) makes the United States appear to be much more prosperous and productive (by nearly 2X as measured by GDP) by dramatically undertaxing the U.S. citizens and businesses creating GAAP basis Deficit spending that is expected to be $6.5 Trillion in FY2015.
The U.S. Government is corrupt and fraudulent by using an improper accounting system to make the United States appear to be much more prosperous and successful than it really is. The U.S. Government is lying to the U.S. Citizens by promising them that it will pay social benefits that it cannot afford and then making no attempt to fund these promises. The U.S. Government is cheating the common man and the underprivileged by undertaxing the UPPER CLASS to make them super wealthy and by paying themselves and the direct and indirect employees of the Government much more than the taxpayer can afford.
The UPPER CLASS (aka the RULING CLASS) has been willing and eager for the U.S. Government to continue to use this corrupt and fraudulent accounting because they all appear to have benefitted massively ($100 Trillion is a lot of money for them to share even though it is counterfeit money) by this Ponzi scheme. LBJ was the scoundrel that set up this scheme by introducing the "Unified Budget" in FY1969 but the RULING CLASS liked it so much that they have agreed among themselves to let it continue for now 46 years.
The U.S. Government's Ponzi scheme (USAPonzi) is systematically creating counterfeit money out of "thin air" at the rate of our unreported, but real, GAAP basis Deficit Spending and stuffing it into the pockets of the UPPER CLASS U.S. citizens and businesses.
The U.S. Government is systematically taking from the poor and giving to the rich and has been doing so for now 46 years.
The current corrupt and fraudulent fiscal policy is appearing to make the UPPER CLASS very rich, is overpaying government employees, and is cheating the common man and the underprivileged by not funding the social benefit promises. By continuing with the current fiscal policy, the U.S. Government would, in theory, create infinite public liabilities (GAAP Obligation) and infinite private assets (private net worth). This is why the stock market keeps setting new records! This is why we have such a "wealth gap"! This is why the rich are getting richer and the poor are getting poorer!
The U.S. citizenry must demand that the U.S. Government adopt GAAP Accounting and commit to a balanced GAAP basis budget in order to establish an equitable and sustainable fiscal policy for the Government of the United States of America.
See www.usaponzi.com for more information about this Ponzi scheme.
John W White