Sounding the Alarm on U.S. Government Fraud!
May 7, 2015
Updated July 9, 2015 to correct Debt double count. After further research of the usdebtclock GAAP Unfunded Liabilities, I have determined that this number includes the National Debt. In my prior commentaries I had separated money spent (debt) from money promised to be spent (unfunded liabilities). I will maintain that terminology on this website but recognize that the usdebtclock Unfunded Liabilities = Debt + Unfunded Future Liabilities.
As posted on www.usaponzi.com Updated July 9, 2015 to correct Debt double count.
This website was created to expose the massive Ponzi scheme, USAPonzi, that the U.S. Government has been operating since FY1969. This Ponzi scheme is caused by the U.S. Government operating with a massive fiscal deficit for the last 46 years and deferring the resulting financial liabilities to the future U.S. taxpayer who can never pay them. In this commentary I will identify other people and organizations that are also sounding the alarm on this critical issue of fiscal irresponsibility.
The mission of www.usaponzi.com is to:
Convince the U.S. Government that it must adopt GAAP (Generally Accepted Accounting Principles) Accounting and balance the GAAP basis budget to achieve an equitable and sustainable fiscal policy for the United States of America and terminate USAPonzi.
By overspending on a cash basis by $18.2 Trillion, by underfunding the social benefit promises on a GAAP basis by $77.7 Trillion, by undertaxing on a GAAP basis by $95.9 Trillion, and by concealing this fraud with corrupt and fraudulent accounting; the U.S. Government has provided massive artificial economic stimulus to the U.S. and global economy by creating $95.9 Trillion of Public Liabilities/counterfeit money. These numbers are as reported on www.usdebtclock.org. My USAPonzi Fiscal Model estimates the Public Liabilities/counterfeit money created by this Ponzi scheme at $102.4 Trillion. Until the U.S. Government formally adopts GAAP Accounting for budgeting, assessing, and reporting we will not have an official assessment of these Public Liabilities.
The U.S. Government has made the decision to pay itself $18.2 Trillion more than the U.S. taxpayer is paying in taxes.
The U.S. Government has made the decision to lie to the general population of the United States by promising that it will pay social benefits valued at $77.7 Trillion but not fund these promises.
The U.S. Government has made the decision to not tax the upper class citizens and businesses to pay for the U.S. Government overpaying itself or to pay for the social benefit promises that it has made to U.S. citizens, so that it can give the upper class citizens and businesses $95.9 Trillion.
And this is the U.S. Government that we have elected to fairly represent the people of the United States of America. The U. S. Government is taking care of themselves and their rich friends and businesses with a corrupt and fraudulent fiscal policy. Overpaying themselves by $18.2 Trillion and giving the upper class citizens and businesses nominally $100 Trillion while short changing the Common Man by $80 Trillion is an absolute atrocity.
This is just not right!!!
We must restore fairness and sustainability to the fiscal policy of the U.S. Government. Misappropriating $100 Trillion is an act of gross misconduct by the U.S. Government. When the U.S. Government makes the decision that it will lie to the Common Man so that it can overpay itself and make the upper class citizens and businesses appear to be super rich we have a serious ethics problem in the seat of our U.S. Government.
The following are some of the individuals and organizations that I have identified that are also calling for fiscal responsibility by the U.S. Government.
David Walker Former Comptroller General of the U.S. and founder of Comeback America. David Walker has been calling for reforms in our fiscal policies for many years as noted in this article from 2007 but his call for change even predates this article by several years.
August 14, 2007 12:06 am
David Walker, comptroller general of the US, issued the unusually downbeat assessment of his country’s future in a report that lays out what he called “chilling long-term simulations”.
David Stockman Former Congressman from Michigan and Budget Director for Ronald Reagan(81-85).
David Stockman: 'Unprecedented Deflation, Bursting Financial Bubbles' Coming
Wednesday, 08 Apr 2015 12:00 PM
David Stockman, White House budget director under President Reagan, has been warning for some time that central banks' massive easing programs will end in catastrophe for the global financial system.
And he's not backing down from those views now.
"The worldwide central bank money printing spree of the last two decades has generated massive excess capacity and mal-investment all around the planet," Stockman writes on his blog.
The Federal Reserve has kept its federal funds rate target at a record low of zero to 0.25 percent since December 2008 and inflated its balance sheet to $4.5 trillion through quantitative easing.
"What is coming, therefore, is not their father’s inflationary spiral, but an unprecedented and epochal global deflation," Stockman states. In the United States, consumer prices were unchanged in the 12 months through February.
"So the central banks just keep printing, thereby inflating the asset bubbles worldwide. What ultimately stops today’s new style central bank credit cycle, therefore, is bursting financial bubbles," he says.
www.usdebtclock.org This website provides realtime status of the Debt and other key financial data for the Government of the United states of America and several other countries.
The Purpose of USDebtClock.org is to inform the public of the financial condition of the United States of America. We are dedicated to bringing to the public the most accurate up-to-date debt information possible. The numbers are laid out in such a way to give a complete real-time snapshot of the country's balance sheet. Although the numbers involved are enormous, it is still easy to see the relative balance between wealth generated and wealth consumed.
All the debt clocks on the site are updated continuously to the most precise calculations, using complex formulas and exacting standards, and the values displayed are verified from the best sources available.
America is a proud country with a long history of triumphing over extreme circumstances. The debt crisis that the Government and individuals face is the most pressing issue of our time. We must begin to confront this challenge head-on and not squander away the future financial health of this nation.
www.theinformact.org Economists call for legislation that would require the adoption of Fiscal Gap Accounting by the U.S. Government.
The Intergenerational Financial Obligations Reform Act
“This generation of Americans is very likely to be the first generation in our history as a nation to leave a worse economy and a worse fiscal position than the one they inherited. THE INFORM ACT is a step in the right direction toward informing Americans of the magnitude of this problem.”
-- James Heckman, Nobel Laureate in Economics
Dear Fellow Economists and Other Fellow Citizens,
Please join the 17 Nobel Laureates in Economics, prominent former government officials, and others listed here in endorsing the INFORM ACT.
The INFORM ACT requires the Congressional Budget Office (CBO), the General Accountability Office (GAO), and the Office of Management and Budget (OMB) to do fiscal gap accounting and generational accounting on an annual basis and, upon request by Congress, to use these accounting methods to evaluate major proposed changes in fiscal legislation.
The INFORM ACT is a bi-partisan initiative. The bill was introduced Senators Kaine (Democrat from Virginia) and Senator Thune (Republican from South Dakota) and is being co-sponsored by Senator Coons (Democrat from Delaware) and Senator Portman (Republican from Ohio). The Bill will shortly be introduced on a bi-partisan basis in the House of Representatives.
With deep appreciation for your consideration of this request,
Professor of Economics,Boston University
American Institute of CPAs Calls for the adoption of Accrual (GAAP) Accounting by the U.S. Government.
What's at Stake? A CPA's Insights into the Federal Government's Finances.
A CPA’s Insights into the Federal Government’s Finances offers guidance for policy makers and the public on how the US government’s financial statements can be used for greater understanding of the nation’s fiscal health.
What's at stake?
Truth in Government Former Congressman from New York calls for the adoption of Accrual (GAAP) Accounting by the U.S. Government.
Truth In Government is a public watchdog organization dedicated to fiscal responsibility in government through the promotion of honest budgeting, accounting, financial management and reporting practices by Congress and the Executive Branch.
The President of Truth In Government, former two-term Congressman Joe DioGuardi, has been sounding the alarm for over 25 years about the lack of sound accounting, budgeting, and financial reporting practices for the federal government. Congressman Joe DioGuardi was the original author of the Chief Financial Officers Act in 1987, and has continued to preach a message of fiscal responsibility as a citizen-activist. In addition to the many articles and media appearances he has made since leaving Congress in 1989, DioGuardi continues to speak to students at various colleges and universities throughout the country about how the current fiscal situation of the United States threatens the prosperity of future generations of Americans.
Truth in Accounting TIA stands for Truth in Accounting™, the organization that operates this website. TIA was founded in 2002 to "compel governments to produce financial reports that are understandable, reliable, transparent and correct." It is a nonpartisan, non-profit organization headquartered in Chicago, Illinois.
To educate and empower citizens with understandable, reliable, and transparent
government financial information.
Founded in 2002, Truth in Accounting believes truthful accounting is the key for citizens, legislators, and the press to clearly understand the truth about government finances. To be knowledgeable participants in their governments' financial decisions, citizens need accurate and complete financial information. Our work has focused on encouraging public entities to produce financial reports that are comprehensive, clear, and transparent; and informing the public of the importance of truthful accounting.
www.fixthedebt.org Erskine Bowles and Alan Simpson pursue the principles outlined in their President Obama commissioned report to reform our Fiscal Policy.
The Campaign to Fix the Debt is a nonpartisan movement to put America on a better fiscal and economic path. We have come together from a variety of social, economic and political perspectives, around the common belief that America's growing national debt threatens our future and that we must address it now with a comprehensive, bipartisan plan. The Campaign mobilizes key communities -- including leaders from business, government, and policy -- and people all across America who want to see elected officials step up to solve our nation's long-term fiscal challenges.
Why does the U.S. Government continue this Ponzi scheme and its massive GAAP basis Deficit Spending?
The reason the U.S. Government does not want to face this problem is because it will mean giving up the "fantasy world" economy that USAPonzi has created. It will be a financial catastrophe of epic proportions when this Ponzi scheme is acknowledged but continuing the Ponzi scheme is not an acceptable solution. Continuing a Ponzi scheme means it continues to escalate and therefore the bigger the fall will be when USAPonzi implodes. We are in for one hell of a fall. Our perceived Private Net Worth will fall by 90% or more and our GDP will be nominally cut in half (Americans think we are richer and more prosperous).
I am convinced that the U.S. Government does not actually have its head stuck in the sand. The U.S. Government just wants to keep on pretending that our economy is performing well for as long as it can by continuing to operate with a corrupt and fraudulent fiscal policy.
What I find absolutely amazing is that the U.S. business class and the U.S. upper class, for the most part, continue to stay invested in this fantasy world scheme but as they say on CNBC this is a TINA economy. There Is No Alternative! If you want to appear to make money at the rate that this Ponzi scheme promises, then you have to have your resources invested in the Ponzi Scheme. When it goes POOF; $100 Trillion of counterfeit money, our Public Liabilities, will evaporate in a matter of months.
What is a Ponzi scheme?
A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator.
The current fiscal policy (USAPonzi) fits that definition perfectly. The U.S. Government promises to pay social benefit returns that are irrational and unaffordable and does not collect enough tax revenue to pay these benefits leaving the cost to the next generation(s) of U.S. taxpayers and uses a corrupt and fraudulent accounting system to help cover up the scheme.
This is exactly what the Madoff Ponzi did; promise investment returns that were irrational and unachievable, pay early investors with money collected from new investors, and use corrupt and fraudulent investor statements to conceal the fraud. Bernie Madoff then skimmed off some of the money from the new investors to be able for him and his cohorts to live an opulent lifestyle.
The U.S. Government is doing the exact same thing that Bernie Madoff did. The ruling class has skimmed off $18 Trillion so they can live opulent lifestyles and by undertaxing the upper class by $95.9 Trillion, has given their upper class friends a super opulent lifestyle and makes them appear to be super rich with counterfeit money.