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

The U.S. Government is Lying and Cheating!
August 15, 2016


The U.S. Government has created $103.2 Trillion of imaginary-counterfeit money and $103.2 Trillion of imaginary-counterfeit wealth out of "thin air" by fraudulently borrowing it from the future U.S. taxpayers. No effort, no sweat, no labor expended! There is one small problem; the future U.S. taxpayers cannot pay the $103.2 Trillion that the U.S. Government has borrowed.


The U.S. Government is lying and cheating! The U.S. Government is corrupt! The U.S. Government is operating with a fiscal policy that is a classic Ponzi scheme that I have named USAPonzi. The following table shows the status of this massive U.S. Government fraud as of August 15, 2016.

 

National Debt  $19.4 Trillion 
Cash Deficit in FY2016  $0.53 Trillion 
GAAP Deficit in FY2016  $5.73 Trillion 
Unfunded Future Liabilities  $83.8 Trillion 
US Unfunded Liabilities (GAAP)  $103.2 Trillion 
Imaginary-Counterfeit Money  $103.2 Trillion 
Total National Assets  $123.1 Trillion 

    Source: www.usdebtclock.org August 15, 2016


The U.S. Government is lying by reporting its financial condition with Cash Accounting rather than the proper GAAP Accounting. The U.S. Government is lying by reporting our budget deficit in FY2016 as a Cash Deficit of $0.53 Trillion when our "real" deficit is a GAAP Deficit of $5.73 Trillion. The U.S. Government is lying by reporting our public liabilities as of August 15, 2016 as our National Debt of $19.4 Trillion when our "real" public liabilities are our US Unfunded Liabilities (GAAP) of $103.2 Trillion.


The U.S. Government is lying to the U.S. Common Man by making irrational and unaffordable promises to pay social benefits to the U.S. citizenry but has not been funding these future promises for the last 47 years. The U.S. Government now has Unfunded Future Liabilities of $83.8 Trillion! The U.S. Government is cheating the U.S. Common Man by collecting tax revenues to fund these future social benefit promises but has already spent all of that money to overpay itself. The U.S. Government is cheating the U.S. Common Man by borrowing money to overpay itself and now has a National Debt of $19.4 Trillion. The U.S. Government is cheating the U.S. Common Man and the rest of the planet by undertaxing its U.S. upper class friends by $103.2 Trillion (US Unfunded Liabilities (GAAP)) to make them appear to be very very rich. The U.S. Government is cheating the rest of the planet by issuing $103.2 Trillion of imaginary-counterfeit money to U.S. citizens and businesses so that Americans can buy things that they cannot afford.


Let me repeat that last sentence very slowly; The U.S. Government is cheating the rest of the planet by issuing $103.2 Trillion of imaginary-counterfeit money to U.S. citizens and businesses so that Americans can buy things that they cannot afford. The U.S. Government does this by undertaxing the U.S. taxpayers by $103.2 Trillion. The U.S. Government has given the "average" American $320,497 ($103.2T/322 million Americans = $320,497) simply by using fraudulent accounting. The U.S. Government is using Cash Accounting rather than the proper GAAP Accounting (Generally Accepted Accounting Principles).


However, most of this imaginary-counterfeit money has ended up in the pockets of the U.S. upper class. If this money was equally distributed it could buy 3.2 Tesla Model S cars for each and every American ($320,497/$98,700 = 3.2). But this is imaginary-counterfeit money because these public liabilities have been deferred to the future U.S. taxpayers who cannot pay this $103.2 Trillion. The U.S. Government imagines that the future U.S. taxpayers can come up with a balloon tax payment of $103.2 Trillion even though the current U.S. taxpayers are being undertaxed by $5.73 Trillion in FY2016! This is ABSOLUTELY ABSURD!


The U.S. upper class is simply appearing to get rich because the U.S. Government is corrupt. The U.S. Government has undertaxed the U.S. citizens and businesses by $103.2 Trillion. This is what is causing wealth and income inequality in America. The U.S. upper class gets most of the benefit of this undertaxing simply because they are the only U.S. taxpayers that have that kind of money and most of their wealth was gained from this U.S. Government fraud. The U.S. Government is introducing new imaginary-counterfeit money into the global financial system every single day and the amount it is introducing each day tends to increase exponentially. This is the fundamental nature of a Ponzi scheme; the difference between the results reported by the operator of the Ponzi scheme and the truth tends to increase as time goes on.


The U.S. Government is corrupt. The U.S. Government is cheating. The U.S. Government has been operating with a dramatically unbalanced budget for over 47 years and this has created massive apparent private wealth and massive apparent buying power simply by deferring $103.2 Trillion of public liabilities to the future U.S. taxpayers. Is that too hard to understand? Well, apparently it is for the U.S. Government! They are continuing this fraud that is causing the U.S. upper class to appear to be getting richer and richer every day with imaginary-counterfeit money.


The U.S. Government is being run by a bunch of scoundrels, liars, and cheaters but since the U.S. Government is making its upper class friends appear to be very very rich, the U.S. upper class is not about to confront the U.S. Government with the fact that the U.S. Government is corrupt. When the U.S. upper class is appearing to get very very rich with $103.2 Trillion of imaginary-counterfeit money, none of them want to complain.


The U.S. upper class is getting rich and the U.S. ruling class is getting overpaid with $103.2 Trillion of imaginary-counterfeit money that the U.S. Government is pretending to borrow from the future U.S. taxpayers so both the U.S. ruling class and the U.S. upper class have no interest in having the U.S. Government tell the financial truth. The U.S. Common Man has been lied to and cheated by the U.S. Government while both the U.S. ruling class and the U.S. upper class have been fraudulently collecting massive financial rewards. $103.2 Trillion is a massive amount of financial rewards by any measure! (See How Much Money is 2.5 Trillion Dollars?).


Warren Buffett has known about this fraud since at least 1975 but this fraud has made him appear to be the smartest investor in history so he has been very careful not to upset the apple cart (See Buffett makes $9 Million a day from U.S. Government fraud). Someone needs to ask Warren Buffett directly; "Is the U.S. Government making you richer by using Cash Accounting rather than the proper GAAP Accounting?" I am confident that Warren Buffett will give an honest answer (YES) to that question. But honest accounting by the U.S. Government will reduce his apparent wealth by about 85%.


To whom do you complain when the U.S. Government is the criminal? I have complained to the U.S. Securities and Exchange Commission with 12 whistleblower letters. I have complained directly to each member of the U.S. Congress by sending each of them a whistleblower letter. I have complained directly to each member of the U.S. Supreme Court by sending each of them a whistleblower letter. I have sent multiple complaints to "The Wall Street Journal", "The New York Times", and "The Dallas Morning News" but they refuse to print my Op-Eds. These whistleblower letters and Op-Eds are all documented on my website www.usaponzi.com and in my book "USAPonzi".


The U.S. Government has borrowed/stolen $103.2 Trillion from the future U.S. taxpayers (US Unfunded Liabilities (GAAP)) and given it to the current Americans. But since the future U.S. taxpayers cannot possibly pay $103.2 Trillion, this money became imaginary-counterfeit money as it passed through the U.S. Government. The U.S. Government imagines that the future U.S. taxpayers can pay this $103.2 Trillion but since they cannot this is counterfeit money. It has no value. The current Americans are getting rich and buying stuff with imaginary-counterfeit money produced by U.S. Government fiscal and accounting fraud (See The Theory of Imaginary Money).


Every dollar of GAAP basis deficit spending creates an imaginary-counterfeit dollar in the pocket of the U.S. taxpayer that did not have to pay that tax dollar.


This is a fraud! This is a hoax! The U.S. Government has been operating with this corrupt and fraudulent fiscal policy for 47 years and nobody in the U.S. Government is prepared to standup and tell the rest of the planet that they have been lying to and cheating the U.S. Common man and the rest of the planet for 47 years in order to make themselves appear to be rich and their upper class friends appear to be very very rich.


This Ponzi scheme fraud is creating an ever expanding bubble of imaginary-counterfeit money that I call "The Oswald Financial Bubble". I have named this bubble of imaginary-counterfeit money "The Oswald Financial Bubble" because this Ponzi scheme was launched in January of 1968 by Lyndon Baines Johnson who became President because Lee Harvey Oswald assassinated John F. Kennedy. As of August 15, 2016, "The Oswald Financial Bubble" contains $103.2 Trillion of imaginary-counterfeit money and is expanding by $15.7 Billion every day because of GAAP basis deficit spending of $5.73 Trillion in FY2016 ($5.73T/365 = $15.7B). The Oswald Financial Bubble will continue to expand indefinitely until the U.S. Government balances the national budget on a GAAP basis.


This imaginary-counterfeit money has been borrowed from the future U.S. taxpayers and given to the current Americans with unreported but real GAAP basis deficit spending. This imaginary-counterfeit money will evaporate when USAPonzi implodes.


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.


This is the biggest ($103.2 Trillion) financial fraud ever perpetrated, I call it "USAPonzi: The Ultimate Government Fraud" and "The Biggest Ponzi Scheme on the Planet".