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

Whistleblower Letter #14 to the SEC Jan 28, 2019
January 28, 2019     Emailed to SEC/Fed/WSJ/NYT/WP/DMN on 1/28/19


The following is a Whistleblower Letter to the U.S. Securities and Exchange Commission (SEC) expressing the complaint that the U.S. Government is committing a fiscal and accounting fraud by not using accrual accounting. This accounting fraud is enriching the U.S. ruling class, is colossally enriching the U.S. upper class, is colossally cheating the U.S. general public, and is colossally cheating the rest of the planet!


I am also copying the Federal Reserve Chairman Jay Powell, “The Wall Street Journal”, “The New York Times”“The Washington Post”, and “The Dallas Morning News” since it is my view that the Federal Reserve Bank and the “news media” also have a responsibility to inform the U.S. general public that the U.S. Government is using fraudulent accounting to enrich the U.S. ruling class and the U.S. upper class at the expense of the U.S. general public and the rest of the planet!


Whistleblower Letter #14 to
The U.S. Securities and Exchange Commission
January 28, 2019


TO:
Jay Clayton
Chairman
        U.S. Securities and Exchange Commission
        100 F Street, NE
        Washington, DC 20549
        Regional Offices of the SEC


CC:
Fed Chairman Jay Powell
       The Wall Street Journal

       The New York Times
       The Washington Post
       The Dallas Morning News
      


FR: 
John W. White
        Plano, TX


I am a Whistleblower! This is my 14th letter to the U.S. Securities and Exchange Commission (SEC) expressing the same complaint; the U.S. Government is committing fiscal and accounting fraud!


I sent my first whistleblower letter to the SEC on January 8, 2014 and since that time I have sent 12 more whistleblower letters to the SEC expressing this same complaint! I also sent a formal SEC Tip-Complaint on May 21, 2018 (Number: 15269-876-041 was submitted successfully on Monday, May 21, 2018 at 12:06:01 PM EDT).


In my January 8, 2014 SEC whistleblower letter, I estimated the size of this fraud to be $93.2 Trillion but this fraud is growing at the rate of U.S. Government GAAP basis deficit spending which is now $16.7 Billion a day (FY2019) and has averaged $15.8 Billion a day since that first SEC whistleblower letter 1,846 days ago to now be a $122.3 Trillion fraud (($122.3T-$93.2T)/1846 = $15.76B)!


I am reporting a $122.3 Trillion accounting fraud that is being perpetrated by the U.S. Government!


I am reporting a $122.3 Trillion criminal act that is being committed by the U.S. Government!


The elite in America have resorted to fiscal and accounting fraud to enrich themselves!


The Government of the United States of America is perpetrating a fiscal and accounting fraud, a Ponzi scheme which I have named USAPonzi, that is enriching the U.S. ruling class, is colossally enriching the U.S. upper class, is colossally cheating the U.S. general public, and is colossally cheating the rest of the planet!


The U.S. Government is perpetrating this fraud by operating its fiscal policy with Cash Accounting rather than proper and Generally Accepted Accounting Principles (GAAP Accounting)!


Because the U.S. Government is not using proper GAAP Accounting, it is not accruing the money to pay future benefits to the U.S. general public. When the U.S. Government does not accrue the money to pay future benefits to the U.S. general public, the U.S. upper class gets undertaxed and rich! When the U.S. Government does not accrue the money to pay future benefits to the U.S. general public, this has the effect of borrowing money from the future Americans and giving it to the U.S. upper class!


Because of this accounting fraud, the U.S. Government has fraudulently borrowed $122.3 Trillion (US Unfunded Liabilities (GAAP)) from the future Americans, money the future Americans do not have, and has given this $122.3 Trillion to the U.S. upper class by undertaxing them!


This is the fundamental consequence of the accounting fraud that I call USAPonzi; GAAP basis deficit spending by the U.S. Government digitally prints imaginary-counterfeit money and gives it to the U.S. upper class by undertaxing them!


The fiscal policy of the U.S. Government is a classic Ponzi scheme, which I have named USAPonzi, and all these 14 letters to the SEC have been written to expose this accounting fraud. I hope that each successive letter provides better clarity into this fraud, its cause, its distortions, and the economic inequality that this accounting fraud is creating for the citizens of the United States of America and in fact the entire planet.


This U.S. Government accounting fraud is enriching the upper class and cheating the general public all over Planet Earth! Because of the size of this fraud, $122.3 Trillion, it is having dramatic impact on the global economy and the global financial system!


The U.S. Government is conspiring with the U.S. upper class to fraudulently transfer $122.3 Trillion of imaginary-counterfeit wealth to the U.S. upper class! This is the biggest crime in the history of the planet and it is being committed by the U.S. Government! This is a criminal activity by the senior officials of the U.S. Government because they are direct financial beneficiaries of this accounting fraud that they are perpetrating!


This USAPonzi fiscal policy is very simply stated; the U.S. Government spends and commits to spend much more than the future Americans can afford, dramatically undertaxes the current Americans relative to these spending commitments, defers the resulting public liabilities to the future Americans, and attempts to conceal the magnitude of this fiscal imbalance by assessing and reporting its financial condition with fraudulent accounting by using Cash Accounting rather than proper GAAP Accounting.


The following table gives a summary assessment of the U.S. Government financial condition as of January 28, 2019 as estimated by www.usdebtclock.org.

 

National Debt 
$22.0 Trillion 
Cash Deficit in FY2019  $0.86 Trillion 
GAAP Deficit in FY2019  $6.08 Trillion 
US Unfunded Future Liabilities  $100.3 Trillion 
US Unfunded Liabilities (GAAP)  $122.3 Trillion 
Imaginary-Counterfeit Money  $122.3 Trillion 
Total National Assets  $149.9 Trillion 

Source: www.usdebtclock.org Jan 28, 2019


The U.S. Government is reporting a Cash Deficit in FY2019 of $0.86T when proper GAAP Accounting reports that our real GAAP deficit in FY2019 is 7X that at $6.08T ($6.08T/$0.86T=7.07)!


USAPonzi is producing massive but imaginary-counterfeit wealth for the U.S. upper class with GAAP basis deficit spending!


The U.S. Government is not operating its fiscal policy with proper accrual accounting (
GAAP Accounting) and therefore is not properly accruing for future U.S. Government benefit commitments. The U.S. Government is promising future benefits that it has underfunded by $100.3 Trillion (US Unfunded Future Liabilities) and has overspent on a cash basis by $22.0 Trillion (National Debt). As a result, the U.S. Government has deferred $122.3 Trillion of public liabilities to the future Americans and has undertaxed the current Americans, primarily the U.S. upper class, by $122.3 Trillion (US Unfunded Liabilities (GAAP)).


The U.S. Government has fraudulently borrowed $122.3 Trillion from the future Americans and given it to the U.S. upper class by undertaxing them. The U.S. Government is colossally enriching the U.S. upper class with GAAP basis deficit spending. However, since this money was borrowed from the future Americans and the future Americans do not have $122.3 Trillion, I call this fraudulently gained money, imaginary-counterfeit money. This money does not exist; the U.S. Government just imagines that the future Americans will be able to pay it someday so it is imaginary but the future Americans can never pay it so it is counterfeit!


The total net worth of all Americans is currently estimated to be $149.9 Trillion (Total National Assets) but $122.3 Trillion of that is the imaginary-counterfeit money that the U.S. Government has fraudulently borrowed from the future Americans with GAAP basis deficit spending! The U.S. Government has fraudulently deferred $122.3 Trillion (US Unfunded Liabilities (GAAP)) of public liabilities to the future Americans and has undertaxed the U.S. upper class by $122.3 Trillion! This estimate indicates that 81.6% of the net worth in America is imaginary-counterfeit money ($122.3T/$149.9T = 0.816) that has been fraudulently borrowed from the future Americans. The U.S. upper class is appearing to get filthy rich because of this U.S. Government accounting fraud that I call USAPonzi!


This U.S. Government accounting fraud is enriching the U.S. upper class by undertaxing them and this accounting fraud is cheating the U.S. general public by underfunding their future benefit promises!


This U.S. Government accounting fraud is also causing Global Warming that is Destroying Planet Earth which is explained in the following Open Letter to Planet Earth! Simply stated, this U.S. Government accounting fraud is in the process of fraudulently borrowing an infinite amount of imaginary-counterfeit money from the future Americans so the planet can fraudulently buy, build, rent, and operate an infinite number of environment-polluting physical objects! The U.S. Government is committing what, as of January 28, 2019, is a $122.3 Trillion fiscal and accounting fraud that is causing Global Warming!


Destroying Planet Earth
Public Service Notice by John W White
January 28, 2019

The U.S. Government is corrupt!


This is an “Open Letter to Planet Earth” that explains how the U.S. Government is committing a fiscal and accounting fraud that is causing the United States of America to appear to be the richest and most prosperous country on the planet! The U.S. Government is fraudulently and continuously borrowing money from the future Americans, money the future Americans do not have, and giving it to the U.S. upper class!


The U.S. Government has fraudulently borrowed $122.3 Trillion from the future Americans and given it to the U.S. upper class!


This accounting fraud is in the process of Destroying Planet Earth!


This accounting fraud is in the process of printing an infinite amount of counterfeit money, by fraudulently borrowing it from the future Americans, that the planet is using to buy, build, rent, and operate an infinite number of environment-polluting physical objects which is causing Global Warming that is Destroying Planet Earth!


I am writing this letter with the hope of Saving Planet Earth!


The U.S. Government is committing fiscal and accounting fraud by assessing and reporting its financial condition with Cash Accounting rather than proper GAAP Accounting (Generally Accepted Accounting Principles)!


Because the U.S. Government is not using the proper accounting system, the U.S. Government is promising future benefits to the U.S. general public but is not taxing the U.S. upper class enough to pay for these promises! The U.S. Government is not using accrual accounting, called GAAP Accounting in America, which would properly accrue the money to pay future U.S. Government benefits!


Because of this accounting fraud, the U.S. upper class is getting rich and the U.S. general public is getting cheated! So far, the U.S. upper class has been given $122.3 Trillion (Unfunded Liabilities (GAAP)), the U.S. ruling class has been overpaid by $22.0 Trillion (National Debt), and the U.S. general public has been cheated by $100.3 Trillion (Unfunded Future Liabilities)!


Because the U.S. upper class is being undertaxed by $122.3 Trillion, the future Americans are now on the hook to pay $122.3 Trillion of deferred public liabilities which can never be paid! The U.S. Government is in the process of borrowing an infinite amount of money from the future Americans, money the future Americans do not have, and giving it to the U.S. upper class by undertaxing them!


The U.S. Government is running a classic Ponzi scheme, I call it USAPonzi, that is fraudulently borrowing money, I call it imaginary-counterfeit money, from the future Americans and giving it to the U.S. upper class by undertaxing them!


This accounting fraud is in the process of creating an infinite amount of imaginary-counterfeit money out of “thin air” that the planet is using to fill Planet Earth with cars, airplanes, boats, tall buildings, big houses, banks, restaurants, factories, chemical plants, oil wells, smartphones, guns, bombs, etc. etc. that are being bought, built, rented, and operated with imaginary-counterfeit money that the U.S. Government is fraudulently borrowing from the future Americans!


This is why traffic is getting so bad; this accounting fraud is in the process of filling up Planet Earth with an infinite number of cars! We are in the process of buying and building an infinite number of everything with imaginary-counterfeit money that is being fraudulently borrowed from the future Americans!


This accounting fraud is Destroying Planet Earth because it is causing Global Warming by fraudulently borrowing an infinite amount of imaginary-counterfeit money from the future Americans so the current Americans, and people all over the planet, can buy, build, and operate an infinite number of environment-polluting physical objects!


The United States of America must stay in the Paris Climate Agreement and admit to the planet that U.S. Government accounting fraud is the primary cause of Global Warming!


This accounting fraud is also Destroying Social Justice on Planet Earth because it colossally enriching the upper class and colossally cheating the general public all over Planet Earth!


I contend that this accounting fraud is what has caused the rise of populism all over the planet and is what caused a scoundrel, Donald J. Trump, to be elected President of the United States of America! The U.S. general public is rebelling against the corrupt and criminal U.S. Government with the only effective peaceful tool they have; the ballot box!


A Democrat scoundrel, Lyndon Baines Johnson, started this fraud with the Unified Budget in FY1969 and now the election of a Republican scoundrel, Donald J. Trump, in 2016 will likely expose this fraud!


The U.S. Government is lying to and cheating the U.S. general public by promising them future benefits that it is not funding so that it can give infinite imaginary-counterfeit wealth to the U.S. upper class!


This accounting fraud is causing the Wealth and Income Gap by giving the U.S. upper class an infinite amount of imaginary-counterfeit money! So far, this accounting fraud has given the U.S. upper class $122.3 Trillion and is giving them $16.7 Billion more every day with GAAP basis deficit spending! The U.S. Government GAAP basis deficit in FY2019 is estimated to be $6.08 Trillion!


This accounting fraud is overpaying the U.S. ruling class, enriching the U.S. upper class, cheating the U.S. general public, and cheating the rest of the planet because Americans are buying stuff from the rest of the planet with imaginary-counterfeit money that has been fraudulently borrowed from the future Americans!


As an example, Americans are buying an unending and ever-increasing amount of stuff from Amazon without paying even one plugged nickel of earned income! We are buying stuff from Amazon with an unending and ever-increasing amount of imaginary-counterfeit money that the U.S. Government is fraudulently and continuously borrowing from the future Americans! Amazon is an imaginary-counterfeit company created by U.S. Government accounting fraud! Amazon, as we currently know it, will go out of business when this accounting fraud is exposed!


This U.S. Government accounting fraud is making the U.S. upper class richer and richer, is making the stock market go higher and higher, and is making the U.S. economy stronger and stronger by fraudulently borrowing an unending and ever-increasing amount of imaginary-counterfeit money from the future Americans and giving it to the U.S. upper class by undertaxing them!


The U.S. Government likes the U.S. upper class a lot more than it likes the U.S. general public! The U.S. upper class pays bigger bribes and makes bigger campaign contributions than the U.S. general public! The U.S. upper class has lots of money to pay bribes and make campaign contributions because the corrupt and criminal U.S. Government has fraudulently given the U.S. upper class $122.3 Trillion of imaginary-counterfeit money by cheating the U.S. general public!


GAAP Accounting, properly applied, would prevent the U.S. Government from borrowing more money from the future Americans than the future Americans can be reasonably expected to pay!


The U.S. Government must adopt GAAP Accounting (Generally Accepted Accounting Principles) and commit to a balanced GAAP basis budget in order to eliminate this fiscal and accounting fraud and properly accrue for the future U.S. Government benefit promises that have been made to the U.S. general public!


The U.S. Government, and all sovereign entities that sponsor a currency that is used in international trade, must adopt GAAP Accounting, or its basic equivalent, to provide a level economic playing field in America and throughout Planet Earth!


This fraud/Ponzi scheme (USAPonzi) is explained in much more detail on my websites www.usaponzi.net and www.usaponzi.com and in my books USAPonzi, USAPonzi2, USAPonzi3, and my latest USAPonziA.


This is the biggest ($122.3 Trillion) financial fraud ever perpetrated, I call it “USAPonzi: The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”.


Financial data sourced from www.usdebtclock.org as of January 28, 2019.


John W White
Plano, TX