The Practice of Selective Taxation!
August 5, 2016
The U.S. Government has created $103 Trillion of imaginary-counterfeit money out of "thin air" by using "creative accounting"!
The U.S. Government has stuffed this $103 Trillion of imaginary-counterfeit money into the pockets of Americans by overpaying and undertaxing them!
This $103 Trillion of imaginary-counterfeit money has been borrowed from the future U.S. taxpayers by the U.S. Government and given to the current Americans. This money is imaginary because the U.S. Government imagines the future U.S. taxpayers can pay this $103 Trillion but it is counterfeit because the future U.S. taxpayers cannot pay this $103 Trillion (See The Theory of Imaginary Money).
$103 Trillion is actually quite a lot of money! (See How much Money is 2.5 Trillion Dollars). But the U.S. Government has now created 41.2X ($103T/$2.5T = 41.2) that much imaginary-counterfeit money over the last 47 years .
The U.S. Government is corrupt! I cannot be any more direct! The U.S. Government is using fraudulent accounting to conceal the fact that it is deferring massive public liabilities (currently $103 Trillion) to the future U.S. taxpayers. The U.S. Government can then decide who gets the benefit of this massive deficit spending. The U.S. Government has made the choice to pay unaffordable social benefits to U.S. residents, to dramatically overpay itself, and to colossally undertax the U.S. upper class. When you are "divvying up" $103 Trillion of imaginary-counterfeit money you can make a lot of people happy.
The U.S. Government can selectively decide who gets overpaid and who gets undertaxed and by what amount in order to direct the money where they want it to go.
Warren Buffett is happy. Bill Gates is happy. The Walton family is happy. Donald Trump is happy. Bill and Hillary Clinton are happy. Tiger Woods is happy. Michael Jordan is happy. Professional athletes and entertainers are happy. Bankers are happy. Business executives are happy. Silicon Valley investors are happy. Wall Street investors are happy. Most Americans are at least somewhat happy because they have smartphones, TVs, cars, gas, oil, food, and nice housing purchased with this imaginary-counterfeit money.
$103 Trillion of imaginary-counterfeit money borrowed from the future U.S. taxpayers can buy a lot of stuff and make a lot of people appear to be very very rich. With the current fiscal policy, the U.S. Government can borrow an infinite amount of imaginary-counterfeit money from the future U.S. taxpayers.
The U.S. Government officials have chosen to make the U.S. upper class very very rich by undertaxing them a lot so that they will have the money to make large contributions to their election campaigns. And in the case of the Clinton Foundation; donors will have the money to contribute $2 Billion to the Clinton Foundation so that the Clinton Foundation can pay Bill and Hillary a very nice management fee.
I am sorry but I cannot be any more explicit when explaining this fraud. The U.S. Government has borrowed $103 Trillion of fake money (imaginary-counterfeit money) from the future U.S. taxpayers and given it to the current Americans.
Once this U.S. Government fraud got started, as it did with the "Unified Budget" in FY1969, it is very hard to get it stopped (See Introduction to USAPonzi). If they can get by with a little bit of fraud why not do just a little bit more. This is now a $103 Trillion fraud and growing at an exponentially expanding rate. The U.S. Government is imagining that the future U.S. taxpayers have an infinite amount of money that they can borrow. That is what makes a Ponzi scheme a Ponzi scheme.
This Ponzi scheme fraud is creating an ever expanding bubble of imaginary-counterfeit money that I call "The Oswald Financial Bubble" because this Ponzi scheme was launched by Lyndon Baines Johnson who became President because Lee Harvey Oswald assassinated John F. Kennedy.
Once a camel gets his nose under the tent the camel is going to get into the tent.
Gary Johnson calls Hillary Clinton the "pay to play" candidate but most U.S. Government officials are in that "pay to play" category. The senior officials of the U.S. Government are receiving significant financial gain because of this fraud. The majority in the U.S. Government have to be willing to go along with this fraud or it would be stopped.
But let me remind you, this $103 Trillion is imaginary-counterfeit money because the future U.S. taxpayers are expected to pay it and they do not have the money. This is what makes USAPonzi a $103 Trillion Fraud.
The U.S. Government is operating with a dramatically unbalanced budget that has produced $103 Trillion of US Unfunded Liabilities according to Generally Accepted Accounting Principles (GAAP Accounting). These are Unfunded Liabilities because the U.S. taxpayers are not paying the taxes required to pay for all of the U.S. Government's spending and committing to spend. Therefore the U.S. taxpayers are wealthier by $103 Trillion because they did not pay $103 Trillion of taxes. Deferring these public liabilities to the future U.S. taxpayers is fraud because the future U.S. taxpayers cannot pay these deferred public liabilities.
The U.S. upper class appears to be very very wealthy because the U.S. Government is corrupt. The more corrupt the U.S. Government is, the wealthier the U.S. upper class becomes. The senior officials in the U.S. Government are also appearing to get rich by operating with a corrupt and fraudulent fiscal policy. The U.S. upper class is appearing to get very very rich because the U.S. Government is operating with a corrupt and fraudulent fiscal policy.
GAAP Accounting tells us that if the future U.S. taxpayers could just make a balloon tax payment of $103 Trillion we would have a lot of very rich people in the United States. The U.S. Government has a great imagination. The U.S. Government is imagining that the future U.S. taxpayers will find a huge and ever-increasing pot of gold at the end of the rainbow. This is why I call this $103 Trillion imaginary-counterfeit money. This is not real money, this is just money that the U.S. Government imagines will be paid at some point in the future by the future U.S. taxpayers. But it is counterfeit money because the future U.S. taxpayers can never pay it (See The Theory of Imaginary Money).
|Cash Deficit in FY2016
|GAAP Deficit in FY2016
|Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|Total National Assets
Source: www.usdebtclock.org August 5, 2016
$103 Trillion of Unfunded Liabilities has produced $103 Trillion of imaginary-counterfeit money that has contributed mightily to the apparent private wealth of the U.S. citizens and business shown in the above table as Total National Assets. 84% of the U.S. private wealth has been produced as imaginary-counterfeit money by the U.S. Government fiscal and accounting fraud that I call USAPonzi ($103.0T/$122.9T = 0.838). This U.S. Government fraud has given the U.S. upper class $103 Trillion of imaginary-counterfeit wealth.
The U.S. Government is continuing this fraud and is continuing to create more imaginary-counterfeit money and imaginary-counterfeit wealth every day with GAAP basis deficit spending of $5.73 Trillion in FY2016.
The U.S. upper class is appearing to get rich with faux money that is being artificially produced with fiscal and accounting fraud. The U.S. upper class is appearing to get very very rich with imaginary-counterfeit money produced with GAAP basis deficit spending. Every dollar of GAAP basis deficit spending becomes an imaginary-counterfeit dollar in the pocket of the taxpayer that did not have to pay that tax dollar.
The U.S. Government is simply pretending to borrow imaginary-counterfeit money from the future U.S. taxpayers and giving it to current Americans. This is fraud because the future U.S. taxpayers do not have $103 Trillion. This imaginary-counterfeit money will evaporate when USAPonzi implodes (See The Implosion of USAPonzi).
To eliminate this fraud, the U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget. I have created a website www.usaponzi.com and have written a book "USAPonzi", available on Amazon, that explain this Ponzi scheme in much more detail.