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

The Infinite Counterfeit Money Machine!
The U.S. Government
August 5, 2015   Emailed to SEC, WSJ, NYT, & DMN on Aug 10, 2015
As posted on 
The financial data used in this commentary was sourced from as of August 5, 2015.

The U.S. Government is creating
counterfeit wealth (81%) and counterfeit prosperity (37%) for the United States of America by operating with a corrupt and fraudulent Fiscal Policy that is a massive Ponzi scheme (USAPonzi).  The Fiscal Policy of the U.S. Government is spending and committing to spend much more than the U.S. Government is collecting in tax revenue, producing what is called Deficit Spending.  Deficit Spending undertaxes the current U.S. taxpayer and defers the resulting liabilities to the future U.S. taxpaper while introducing new and counterfeit money into the U.S. and global economy.

According to this Fiscal Policy has produced a total of $97.3 Trillion of "US Unfunded Liabilities (GAAP)" since FY1969 when the U.S. Government adopted the Unified Budget.   The current U.S. citizens and businesses have therefore been given $97.3 Trillion by undertaxing them and deferring these liabilities to the future U.S. taxpayer.  Since the future U.S. taxpayer cannot pay these massive liabilities this $97.3 Trillion is counterfeit money.

USAPonzi is producing an exponentially increasing amount of counterfeit money each year and is pre-programmed to create an infinite amount of counterfeit money.  Because of the current Fiscal Policy, the U.S. Government is "The Infinite Counterfeit Money Machine".  The U.S. Government does this with a very simple technique; each year the U.S. Government assumes that the future U.S. taxpayer will be able to pay a larger and exponentially increasing tax bill.  That tax bill is now $97.3 Trillion and is increasing by $5.5 Trillion this fiscal year (FY2015) and increasing by $15.1 Billion every day.

The U.S. Government is promising to pay social benefits, Government pensions, and veteran benefits to nearly half of the U.S. citizenry and since our economy does not produce enough tax revenue to pay these benefits, the U.S. Government will be required to eventually borrow the money to pay these massive Unfunded Liabilities of now $97.3 Trillion that are increasing by an exponentially increasing amount each year.  The U.S. Government cannot borrow an exponentially increasing amount of money.

The USAPonzi fiscal policy is overpaying the Government workers, is overpaying the social benefit recipients, is intentionally undertaxing the current U.S. taxpayer, and is deferring the resulting Public Liabilities to the future U.S. taxpayer.  The U.S. Government is using a corrupt and fraudulent accounting system, Cash Accounting rather than the proper GAAP Accounting, in an attempt to conceal this overspending, overcommitting, and undertaxing.

Every dollar of Public Liabilities that is deferred to the future U.S. taxpayer is a dollar of counterfeit money that gets introduced into the U.S. and Global economy.  This is counterfeit money because the future U.S. taxpayer has no possibility to ever pay these Public Liabilities.  These Public Liabilities now total $97.3 Trillion and are increasing by $15.1 Billion a day.

As I attempt to explain in Scoundrels, Liars, and Cheaters, the current Fiscal Policy is grossly unfair to the middle and lower class citizens while treating the ruling class royally and treating the upper class super royally.  

The working middle and lower class people get paid for service rendered, labor expended or product produced at a "relatively fixed" market rate.  The non-working middle and lower class people get paid social benefits, pensions, or veteran's benefits at a "relatively fixed", "policy defined" rate that is more than the U.S. taxpayer can afford and some of which has to be paid with borrowed money.

The ruling class overpays itself relative to what the U.S. taxpayer can afford, some of which has to be paid with borrowed money but with little regard for value delivered (since there is not a market rate for most Government jobs) or budget affordability.

The upper class has the real financial leverage since they collect most of the resulting and ballooning counterfeit money that our GAAP basis Deficit Spending produces from unpaid taxes, $97.3 Trillion to date and $5.5 Trillion in FY2015.  The upper class collects this counterfeit money with no service rendered, no labor expended, and no product produced.  This counterfeit money just shows up in their pockets because of a corrupt and fraudulent Fiscal Policy and not for something they do but for something they don't do.  They don't pay the taxes that are required to cover the cost of the U.S. Government.

The cause of the "Wealth Gap"

This is what causes the "Wealth Gap"; the "Common Man" gets paid for services rendered, labor expended, or product produced (pay is nominally proportional to the value delivered) while the upper class is getting rich ($97.3 Trillion) from the fraud and corruption of the U.S. Government that is dramatically undertaxing the upper class.   And to make matters even worse, this undertaxing means that the U.S. Government is lying about the promises it has made to pay social benefits, pensions, and veteran's benefits that were designed to benefit the "Common Man".  The U.S. Government is not collecting the tax revenue required to pay for these future benefits so that it can appear to make the upper class wealthy.

The U.S. Government has been systematically slipping more and more counterfeit money to the U.S. upper class by undertaxing them with a corrupt and fraudulent fiscal policy for the last 46 years.  The U.S. Government has created $97.3 Trillion of counterfeit money since FY1969, paid some of it to the middle and lower classes as social benefits, paid a lot of it to the ruling class by paying them more than the U.S. taxpayer can afford, but the real winner is the U.S. upper class because most of this counterfeit money comes to rest as increased but counterfeit wealth for the upper class citizens and businesses.  This $97.3 Trillion of counterfeit money is now held in the names of individual citizens and businesses but the U.S. public, as a group, still owes the U.S. Government the $97.3 Trillion.  The U.S. Government is using "smoke and mirrors" to make their rich friends appear to be super wealthy.

Warren Buffett has known about this fraud since at least 1975 (see Buffett on Pensions) and knew that he could appear to become super wealthy because of this fraud (see Buffett makes $10M a day on Government Corruption).

The U.S. Fiscal Policy is rigged to favor the ruling class and to dramatically favor the upper class U.S. citizens and businesses by cheating the Common Man.  But this is being done with counterfeit money and as a result this counterfeit money will evaporate when USAPonzi implodes.

The U.S. Government, by adopting a corrupt and fraudulent Fiscal Policy, has turned a collection of social benefit, pension, and veteran's benefit programs that were designed to support Government retirees, veterans, the elderly, the disabled, and the underprivileged into a gravy train for the ruling class and a financial bonanza for the upper class by not collecting the tax revenues required to pay for these future commitments.  It is just not right that upper class be given $97.3 Trillion of counterfeit money by using a simple little accounting trick and by overspending the Government's income on a Cash basis.

The current fiscal policy, USAPonzi, if continued will create an infinite amount of Public Liabilities, an infinite amount of counterfeit money, and an infinite amount of counterfeit Private Wealth.  This is how "The Oswald Financial Bubble!" was created.

This problem can only be resolved by the U.S. Government adopting an honest accounting system.   The U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget.

Because of our current fiscal policy, the United States of America cannot be considered a trusted party in global commerce.  The U.S. Government is creating counterfeit money every day and with the current policy will create an infinite amount of counterfeit money.  We can eventually pay whatever price they want to charge for oil because we can just print more counterfeit money.  We can do it tomorrow if we need to just by voting to raise the minimum wage and increasing our social benefit promises.  And the upper class would also appear to get richer a whole lot faster if we were to do that.

We talk endlessly about the monetary policy of the Federal Reserve creating money out of "thin air" with Quantitative Easing and yes it has introduced $4-5 Trillion of counterfeit money over the last few years but that is a "drop in the bucket" compared to the $97.3 Trillion of counterfeit money that the U.S. Government fiscal policy (USAPonzi) has created out of "thin air" since FY1969.   And the $97.3 Trillion of counterfeit money, that USAPonzi has produced to date, is a "drop in the bucket" compared to the infinite amount of counterfeit money that the current fiscal policy will produce if USAPonzi is allowed to continue.

See The Implosion of USAPonzi for what I predict will have to happen when USAPonzi implodes.

See The Distortions of USAPonzi for a discussion of some of the issues that USAPonzi is causing in the global economy.

The U.S. Government is operating USAPonzi;

"The Biggest Ponzi Scheme on the Planet"!!!!

Next eBook Commentary:
The Impact of Deficit Spending