August 18, 2014
To: Mary Jo White Chairwoman
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549
From: John W. White
2804 Fenwick Lane
Plano, TX 75093
I am a Whistleblower!
This is my sixth letter to the U.S. Securities and Exchange Commission expressing this complaint.
I contend that the fiscal policy of the Government of the United States of America is corrupt and fraudulent! By using Cash Accounting to assess and report our financial condition the Federal Government has 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.
I have created a website (www.usaponzi.com) that explains "The Biggest Ponzi Scheme on the Planet" which the U.S. Government has been operating since FY1969 due to the use of Cash Accounting rather than the appropriate accrual methodology of GAAP Accounting. The U.S. Government has now made "empty promises" to the public holders of $12.7 Trillion of U.S. Government debt and $84.3 Trillion of social benefits commitments to the U.S. Citizenry because of this corrupt and fraudulent accounting. By using improper accounting, the U.S. Government has been able to covertly undertax the U.S. Citizenry and U.S. Businesses by a total of $97 Trillion over the last 46 years while only admitting to the $17.7 Trillion that the U.S. Government has already been spent.
The U.S. Government is reporting deficit spending of $514 Billion in FY2014 when in fact our deficit spending (according to GAAP Accounting) is $6.4 Trillion in FY2014. This deficit spending is artificially stimulating the U.S. economy by nominally 1.8X (see U.S. "Real" GDP) and thereby is causing our tax revenues to also be artificially higher by about $1.36 Trillion. As a result our "Real" cash deficit would be $1.36 Trillion more than currently reported without this deficit spending stimulus.
By undertaxing the U.S. Citizens and Businesses by $97 Trillion over the last 46 years, this has created enormous, but phantom, private wealth (estimated by www.usdebtclock.org to be $112.3 Trillion as of Aug 18, 2014) for a relatively small percentage of the U.S. Citizens and Businesses, now called the "1%ers", (see U.S. Total Assets Bubble) but has also left the social benefit promises for the "99%ers" totally unfunded. The future taxpayers are left with this massive and exponentially increasing financial liability of $97 Trillion and they of course have no way of paying for it since the U.S. Government is already spending more each year than the taxpayers are paying in to the Government. In addition, the current U.S. Government Income is overstated by about $1.36 Trillion because of this GAAP basis deficit spending. In addition to that, more and more U.S. citizens are retiring or dropping out of the work force because the "false promises" of social benefits payments by the U.S. Government appear to be more attractive than continuing to work which will even further reduce the Government's income.
Until this accounting system is corrected and the U.S. Government GAAP basis budget is balanced, the rich citizens and businesses will continue to appear to get massively, exponentially, and phantomly richer, due to this undertaxing, and the future taxpayers will have an ever increasing but unpayable financial liability. This U.S. Government fiscal policy is systematically transferring phantom money from future taxpayers to current U.S. Citizens and Businesses at the rate of $17.6 Billion each and every day due to this GAAP basis deficit spending of $6.4 Trillion in FY2014.
That is why the stock market continues to go up almost every day. That is why real estate prices continue to escalate. That is why we have so many millionaires and billionaires. That is why the price of art is continuing to escalate. That is why a 1962 Ferrari sold last week for $34 million. That is why rich people can buy $20 million airplanes, $50 million houses, $100 million yachts, and $500 million islands. That is why rich folks can buy a $75,000 Tesla car like it is a bag of popcorn. The $97 Trillion of phantom money that has been created out of thin air by USAPonzi will buy a lot of stuff and at the same time make a lot of people appear to be very very rich. (see Asset Prices to Infinity)
I realize that it is difficult for the Securities and Exchange Commission to tell the U.S. Government that they are using corrupt and fraudulent accounting but by failing to expose this corrupt and fraudulent fiscal policy, the Securities and Exchange Commission has become an active co-conspirator in this massive fraud.
The www.usaponzi.com website also includes an open letter (USA Corrupt and Fraudulent Accounting Letter) to the U.S. Government officials that are the current perpetrators of and co-conspirators in USAPonzi; and a commentary (The Anatomy of USAPonzi) that explains how this Ponzi scheme works and my prediction of what will happen when it implodes.
John W. White
Retired Information Technology Executive
2804 Fenwick Lane
Plano, TX 75093