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

The eBook of USAPonzi
November 22, 2015

By John W. White
As posted on www.usaponzi.com


I will tell you the ending to this story before you read the book.  The U.S. Government is operating with a fiscal policy that assumes that the U.S. Government can borrow an infinite (i.e. unlimited) amount of money so that Americans can eventually buy and have whatever we want and so that the U.S. upper class can end up really rich with dollars that won't be worth a "plug nickel". The U.S. Government is using a corrupt and fraudulent accounting system and fiscal policy to create what will be an infinite amount of counterfeit money with GAAP basis deficit spending that the U.S. Government is then giving to U.S. citizens and businesses.


The U.S. Government is stealing imaginary-counterfeit money from the future Americans and giving it to the current Americans. The money that the U.S. Government is pretending to borrow from the future Americans is both imaginary and counterfeit because the future Americans can never pay the ballooning public liabilities that GAAP Accounting reports as $99.8 Trillion as of November 22, 2015 (See www.usdebtclock.org Nov 22, 2015 US Unfunded Liabilities (GAAP)).


This is a story about USAPonzi: "The Biggest Ponzi Scheme on the Planet".


In January of 1968 as Lyndon Baines Johnson was preparing the final annual budget of his tenure as President of the United States of America, he was faced with a severe budget deficit caused by the cost of the Vietnam War.  While he was dealing with this budget problem, he noticed that the size of this budget deficit closely matched the amount of money that was in the social benefit trust funds. He was able to convince the 90th Congress that if they would approve his proposal for a Unified Budget he could balance the budget for his final budget year of FY1969 by "borrowing" the money from the social benefit trust funds to cover this deficit. This single act of accounting sleight of hand and tomfoolery, by the 90th Congress, introduced a corrupt and fraudulent accounting system and fiscal policy for the U.S. Government that has caused the U.S. Government to be operating a massive Ponzi scheme (USAPonzi) since FY1969.


The Unified Budget allowed the commingling of funds for general operating expenses and the social benefit programs which means that the U.S. Government can use the social benefit trust fund money to overpay itself. This has been a key contributor to the dramatic expansion of the size of the U.S. Government. The Unified Budget also established Cash Accounting as the accounting methodology for U.S. Government financial reporting rather than the proper GAAP Accounting which implicitly means that the U.S. Government has not been properly accounting for and funding the future financial commitments for social benefits since this Unified Budget was adopted for FY1969.


This Ponzi scheme fiscal policy has allowed the U.S. Government to overspend and undertax creating GAAP basis deficit spending which in turn has created counterfeit money that the U.S. Government has been handing out to U.S. citizens and businesses since 1969. This deficit spending and the counterfeit money it has produced has created a massive stimulus to the U.S. and Global economy that has produced massive counterfeit wealth and counterfeit prosperity.


I have been concerned about this issue, which I now call USAPonzi, for many years but was not able to quantify it well enough to analyze the financial details until recently. I began studying and writing about this problem in earnest in 2011 and started a website (www.usaponzi.com) March 29, 2013 to record and make public my earlier White Papers. This website has evolved into a blog, a long and repetitive diatribe of commentaries, that tends to restate the same issues and criticisms but relates them to the current events and the current financial data at the time of writing of each commentary.  For this reason, the financial data in these commentaries changes from one commentary to another as USAPonzi does its thing of creating more and more counterfeit money.


Another issue that causes the data to change in these commentaries is because I have changed my primary data source
a couple of times for the analysis work that is the basis for www.usaponzi.com.   My original source of data was David Walker's (former U.S. Comptroller General) Comeback America Initiative. It was David Walker's campaign to correct this unfunded liability issue that first alerted me to the magnitude of the problem that this courrupt and fraudulent fiscal policy was causing. However that data source dried up when this non-profit initiative was curtailed and the website was taken down.


I then began using John Williams' www.shadowstats.com because he has done some excellent work in re-constructing a history of what GAAP Accounting financial reporting would look like if the U.S. Government was using proper accounting. This forensic accounting work was done for fiscal years starting in 2000.


I switched my data source again in 2Q 2015 when www.usdebtclock.org began reporting U.S. financial data on a GAAP basis. The usdebtclock now provides a realtime estimate of our GAAP basis debt, deficit, and unfunded liabilities. The US Unfunded Liabilities (GAAP), as reported on www.usdebtclock.org, is the measure of how much counterfeit money the U.S. Government has created.


I also created a spreadsheet fiscal model (USAPonzi Fiscal Model) in December of 2013 that I used for some of my earlier analysis. The USAPonzi Fiscal Model is based on U.S. Government reported actuals for Cash Accounting data and www.shadowstats.com for GAAP Accounting data and covers the period 2008-2023.  I no longer use this data source since www.usdebtclock.org now reports on a GAAP basis. This changing of data sources causes some inconsistencies and discontinuities in the data presented in the various commentaries on www.usaponzi.com.


"The eBook of USAPonzi" is intended to provide a consolidated reading guide to what I consider to be the most informative of these commentaries and eliminates some of the redundancy. The commentaries included in "The eBook of USAPonzi" use links to other content on www.usaponzi.com as well as other information sources that I hope will be helpful in understanding USAPonzi.


If you want to read just one commentary I would recommend: USAPonzi-"The Biggest Ponzi Scheme on the Planet". If you are a glutton for punishment, you can read my entire website. If you want to really understand what the U.S. Government is doing and causing by using a corrupt and fraudulent fiscal policy, I recommend that you read the following eBook commentaries.


As of January 2016, I have published USAPonzi in PDF format that is downloadable from my website www.usaponzi.com and available in Kindle and Paperback on Amazon. All three of these versions are regularly updated with my most recent commentaries. I have also created a CliffsNotes version of USAPonzi that is available on my website.


At the end of each commentary in "The eBook of USAPonzi" is a link to the Next eBook Commentary.  You may select any commentary from the following Table of Contents as your desired starting point.

                           "The eBook of USAPonzi"

                                           Table of Contents

                                        www.usdebtclock.org  Realtime Government financial data
                                        Prologue
                                        1 What is a Ponzi scheme?
                                        2 What is GAAP Accounting?
                                        3 Introduction to USAPonzi
                                        4 USAPonzi-"The Biggest Ponzi Scheme on the Planet"
                                        5 The Oswald Financial Bubble
                                        6 The Infinite Counterfeit Money Machine
                                        7 Creating Counterfeit Wealth
                                        8 Buffett makes $8.3 Million a day on Government Fraud
                                        9 Creating Counterfeit Prosperity
                                        10 Cheating the Common Man!  
                                        11 Cheating the Planet!
                                        12 The End Game for USAPonzi
                                        13 The American Housing Bubble
                                        14 Apple: How LBJ Financed the Smartphone Phenomenon!
                                        15 Why Apple Joined the Dow!
                                        16 Amazon: A Counterfeit Company created by USAPonzi
                                        17 Washington DC-A Coming Ghost Town
                                        18 Las Vegas: A Mirage in the Desert created by USAPonzi                      
                                        19 Why Pro Athletes make $Millions!
                                        20 U.S. Total Financial Leverage 4.2X 1929  
                                        21 U.S. Financial Crisis is 9X Greece Crisis
                                        22 The Distortions of USAPonzi
                                        23 We Need More and Bigger Docks
                                        24 The Implosion of USAPonzi
                                        25 The Myth of American Economic Exceptionalism                        
                                        26 Scoundrels, Liars, and Cheaters!
                                        27 Fed Chairmen are Co-conspirators in USAPonzi 
                                        28 The Fed is NOT the Problem!
                                        29 Why the U.S. Government raises the Debt Ceiling
                                        30 Whistleblower Letters to the SEC
                                        31 How Oswald created ISIS
                                        32 U.S. Government is "Too Big to Save"
                                        33 Sitting on a Global Financial System Time Bomb
            
                                        34 The Rise and Fall of the American Empire                        
                                        35 A Disciplined Budget Process
                                        Epilogue