December 20, 2013
Open Letter to:
The Supreme Court of the United States of America
Eric Holder U.S. Attorney General
The President of the United States of America
The Congress of the United States of America
Harry Reid Senate Majority Leader
John Boehner Speaker of the House
John Cornyn Texas Senator
Ted Cruz Texas Senator
Ben Bernanke Outgoing Federal Reserve Chair
Janet Yellen Incoming Federal Reserve Chair
Paul Ryan House Budget Committee Chair
Patty Murray Senate Budget Committee Chair
Tom Coburn U.S. Senator (R) Oklahoma
Erskine Bowles Co-Chair, National Commission on Fiscal Responsibility and Reform
Alan Simpson Co-Chair, National Commission on Fiscal Responsibility and Reform
David A. Vaudt Chairman Government Accounting Standards Board
Steve Forbes American Publishing Executive
Jim Cramer Television Personality-CNBC
David Faber Television Personality-CNBC
Joe Kernen Television Personality-CNBC
Larry Kudlow Television Personality-CNBC
Steve Liesman Television Personality-CNBC
Rick Santelli Television Personality-CNBC
Andrew Ross Sorkin Television Personality-CNBC
Neil Cavuto Television Personality-FOX News
Lou Dobbs Television Personality-FOX News
Bill O'Reilly Television Personality-FOX News
Greta Van Susteren Television Personality-FOX News
Bill Moyers American Journalist
Rush Limbaugh Radio Personality
Doug Casey Economic Newsletter-CaseyResearch.com
George Friedman Global Intelligence Newsletter-Stratfor.com
Michael Tanner Senior Fellow-Cato Institute
John Mauldin Financial Newsletter-MauldinEconomics.com
John Williams Financial Newsletter-ShadowStats.com
Robert Shiller Nobel Laureate in Economics
Paul Krugman Nobel Laureate in Economics
Jeremy Siegel Economics Professor-Wharton
Laurence Kotlikoff Economics Professor-Boston University
Gerard Baker Editor-in-Chief Wall Street Journal
Scott Burns Newspaper Columnist-Dallas Morning News
Will Deener Newspaper Columnist-Dallas Morning News
The fiscal policy of the Government of the United States of America is corrupt and fraudulent! For the last 45 years the U.S. Government has been using fraudulent accounting techniques to understate their out of control committing and spending of the U.S. taxpayer's money. By using Cash Accounting to assess and report our financial condition they have been able to conceal from most people in the U.S. and the rest of the world just how much in debt we truly are. We MUST begin using an accounting system that reflects our true financial health.
Every Member of Congress and every senior member of the Administration should be indicted on fraud and corruption charges if they vote for or support any financial budget that is based on our current Cash Accounting methodology.
Our current financial reporting is just as fraudulent as that which was used by the Madoff scheme and he was quickly sent to prison for life.
Our current financial reporting is just as fraudulent as that which was used by Enron and the key executives there were sent to prison.
Our current financial reporting is just as fraudulent as that which was used by Worldcom and the key executives there were sent to prison.
The U.S. Government financial fraud is just as egregious as these frauds but massively more serious (more than 1000X) since it is concealing the fact that nearly half of the people in the United States think they will be getting social benefit payments from the Government but the promised money is just not there to be spent but our accounting system does not appropriately report that condition.
I realize that none of the people in Washington were directly involved in starting this fraudulent accounting, that was done in 1968 by the Lyndon Johnson administration, but by continuing to accept the use of this fraudulent accounting each member of Congress that votes in favor of a budget based on this fraudulent accounting is immediately complicit in the fraud and therefore subject to indictment on fraud charges.
The www.usaponzi.com website includes a spreadsheet model (USAPonzi Fiscal Model) of the U.S. Government's financial condition for the next ten years and shows both the current Cash Accounting numbers and the GAAP Accounting numbers. It shows that we are reporting a current Cash deficit of about $700 Billion (and that is bad enough to put a chill on your bones) but the much more informative GAAP deficit shows it to be about $6 Trillion.
We have a U.S. Economy that is riding on the full faith and credit of the Federal Government and we are essentially in debt (Fiscal Gap) by $205 Trillion with an income stream of currently about $2.8 Trillion per year to both pay our current bills and to service that debt. Our current Cash Accounting methodology does not appropriately reflect the magnitude of this current liability. As is evident by this assessment the "virtual interest" on our "virtual debt" is more than twice as big as our "real" income.
The further complication will be that by taking the actions necessary to resolve this issue we will dramatically reduce that real income stream. But we really have no choice as we must assess and report properly before we can truly fix the problem.
This problem must be communally accepted by Congress and the U.S. citizenry but prompt action by Congress to consider and approve the INFORM ACT (www.theinformact.org) is essential to getting the United States of America on a sustainable fiscal path.
John W. White
Retired Information Technology Executive