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

The Great American Housing Ponzi Scheme!
Oct 22, 2015   Emailed to SEC WSJ NYT DMN Oct 22, 2015
As posted on

This morning I read an interesting article;  "Drowning homeowners are getting relief!".  This article  demonstrates that the accounting and fiscal fraud of the U.S. Government is continuing to cause dramatic distortions in the U.S. and global economy. The U.S. Government, by creating massive amounts of counterfeit money and handing it out to the U.S. citizens and businesses, has made it possible for more and more people to be able to buy bigger and bigger houses. The Housing Bubble is re-inflating because the U.S. Government is continuing its fraud and corruption.

The U.S. Government is operating with a Ponzi scheme (USAPonzi) Fiscal Policy by spending and committing to spend much more than the current U.S. taxpayers can afford, dramatically and intentionally undertaxing the current U.S. taxpayers relative to this spending and committing to spend,  deferring the resulting liabilities to the future U.S. taxpayers, and attempting to conceal this overspending, overcommitting, and undertaxing by using Cash Accounting rather than the proper GAAP Accounting.

This Ponzi scheme Fiscal Policy is creating dramatic economic stimulus with massive GAAP basis Deficit Spending (a total of $98.8 Trillion) and the U.S. Housing market is surfing on this stimulus. In fact all U.S. businesses (and many businesses all over the Planet) are surfing on the massive economic stimulus of USAPonzi.

Just as an aside, I see that McDonald's announced great financial performance this morning. McDonald's, like many other food service companies, is able to show strong financial performance because we are able to buy their hamburgers and french fries with the counterfeit money that the U.S. Government is handing out to U.S. citizens with Deficit Spending. $98.8 Trillion can buy a lot of houses and still have money left over to buy hamburgers and fries.

By operating this massive Ponzi scheme (USAPonzi), the U.S. Government is committing accounting and fiscal fraud that is producing a massive amount of counterfeit money with GAAP basis Deficit Spending. As of October 22, 2015, the U.S. Government has created $98.8 Trillion of counterfeit money as reported by as US Unfunded Liabilities (GAAP). By undertaxing the U.S. citizens and businesses by $98.8 Trillion and deferring these massive, unpayable liabilities to the future U.S. taxpayers, the U.S. Government has magically created $98.8 Trillion of counterfeit money.  

That is why I say

USAPonzi is "The Biggest Ponzi Scheme on the Planet".

By creating this massive amount of counterfeit money, USAPonzi caused the Internet Bubble.

By creating this massive amount of counterfeit money, USAPonzi caused the Housing Bubble.

By creating this massive amount of counterfeit money, USAPonzi has been able to make America appear to be the most powerful economic, political, and military force on the Planet.

The U.S. Government and the Federal Reserve did not resolve the Financial Crisis of 2008 with the fiscal and monetary actions that they have taken, they just papered over this crisis with increased but unsupportable financial commitments by the U.S. Government. This Financial Crisis was created by the bursting of the Housing Bubble and now that bubble is starting to re-inflate because USAPonzi is creating an ever stronger stimulus to the U.S. and global economy.  The U.S. Government is "kicking the can down the road" and every day the can is getting bigger and bigger.

The U.S. Government, by continuing USAPonzi, is allowing/encouraging the Housing Bubble to re-inflate. "Drowning homeowners are finally getting relief!" just demonstrates that this re-inflation of the Housing Bubble is beginning to take hold.

People need to understand that this Ponzi scheme is in fact a pyramid scheme, year by year the amount of counterfeit money created by USAPonzi tends to increase exponentially. The U.S. Government is creating counterfeit money at a rate ($5.9 Trillion in FY2016) that is faster than the real economy is creating real houses so the price of housing will continue to go up until USAPonzi implodes. Until USAPonzi implodes, people will continue to have the money to pay for these houses because the U.S. Government is creating counterfeit money at the rate of $16.2 Billion every day and this daily rate will continue to increase year by year.

The future U.S. taxpayer is now responsible for paying for essentially all of our houses, cars, planes,  boats, and everything else we own or have bought to consume like oil, gas, food, and clothes. The future U.S. taxpayer now has a massive tax bill of $98.8 Trillion to pay for all of this stuff.

We must all understand that the re-inflation of the Housing Bubble is just one aspect of the much bigger problem which is the fraud and corruption within the U.S. Government that is causing our U.S. and global economy to be a massive Ponzi scheme.

USAPonzi is a simple and obvious fraud but we are all so intoxicated by the apparent financial prosperity that it affords us, we are willing go along with the U.S. Government's fraud and corruption.

See The Distortions of USAPonzi for an explanation of some of the other distortions and consequences of USAPonzi.

Because of this U.S. Government accounting and fiscal fraud, I predict that we are headed toward a global financial system meltdown because the U.S. Government will be forced to declare bankruptcy.

The Implosion of USAPonzi for an explanation of what I predict will happen when USAPonzi implodes and this global financial system meltdown occurs.

Financial data presented in this commentary was sourced from as of October 22, 2015.

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