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

This Time it's Different-Oaktree Capital 190619
June 19, 2019
Emailed to Fed Chair Jay Powell, Minneapolis Fed President Neel Kashkari, Dallas Fed President Robert Kaplan, Congressman Van Taylor, Congressman Colin Allred, Senator John Cornyn, Senator Ted Cruz, The U.S. SEC, NYT/WSJ/WP/DMN, and Dallas Mayor Eric Johnson on 6/20/19.


I sent the following message to Howard Marks co-chairman of Oaktree Capital Management, via email to his assistant Caroline Heald, on June 20, 2019.


To: Howard Marks
      Oaktree Capital Management


My name is John W. White and I am a retired information technology executive living in Plano, TX. I am sending this message to you to explain why I contend that “this time it really is different”!


I have read your June 12, 2019 commentary “This Time it's Different” and I contend that it is different this time” because the U.S. Government is committing a fiscal and accounting fraud that is borrowing money from the future Americans, money the future Americans do not have, and giving it to the U.S. upper class by undertaxing them!


The following is an excerpt from your commentary:


Today, we're not hearing much about historic valuations being irrelevant, as they're not terribly high. Instead, what we're told is different this time is the relevance of restrictions on future economic and market performance:


  1 There doesn’t have to be a recession.

  2 Continuous quantitative easing can lead to permanent prosperity.
  3 Federal deficits can grow substantially larger without becoming problematic.
  4 National debt isn’t worrisome.
  5 We can have economic strength without inflation.
  6 Interest rates can remain “lower for longer.”
  7 The inverted yield curve needn’t have negative implications.
  8 Companies and stocks can thrive even in the absence of profits.
  9 Growth investing can continue to outperform value investing in perpetuity.


I rarely participate in a meeting these days without someone asking about one or more of these propositions. The Bottom line is that for any of these nine to be true, things really have to be different this time. I'll discuss the outlook for each below.


My explanation for what is “really different this time” is that the U.S. Government is not properly accruing for the future benefit promises that it is making to the U.S. general public. Beginning in FY1969, when the U.S. Government adopted the Unified Budget, the U.S. Government did not switch from Cash Accounting to proper and Generally Accepted Accounting Principles, commonly called GAAP Accounting! As a result, the U.S. Government is not operating its fiscal policy with proper accrual accounting.


Because the U.S. Government is not properly accruing for future benefits, the U.S. upper class is getting rich because they are being undertaxed and the U.S. general public is getting cheated because these future benefits are not being properly funded.


Because the U.S. Government is not using proper GAAP Accounting, the U.S. Government, for the last 49 years, has been fraudulently borrowing money from the future Americans, money the future Americans do not have, and giving it to the U.S. upper class. So far, the U.S. Government has fraudulently borrowed $124.5 Trillion from the future Americans and given it to the U.S. upper class.


That is why you are a billionaire! The U.S. Government has fraudulently printed $124.5 Trillion of counterfeit money to make you appear to be very rich!


The U.S. Government has fraudulently created $124.5 Trillion of fake wealth for the U.S. upper class by fraudulently borrowing money from the future Americans, money the future Americans do not have, and giving it to the U.S. upper class! Every day, the U.S. Government fraudulently borrows another $16.8 Billion from the future Americans and gives it to the U.S. upper class (GAAP Deficit in FY2019 = $6.12T/365 days = $16.8B/day)!


The U.S. Government has fraudulently created $124.5 Trillion of fake wealth for the U.S. upper class by fraudulently borrowing money from the future Americans, money that the future Americans do not have, and giving it to the U.S. upper class by undertaxing them!


GAAP basis deficit spending by the U.S. Government prints counterfeit money and gives it to the U.S. upper class by undertaxing them!


The U.S. Government is committing fiscal and accounting fraud to enrich the U.S. upper class and cheat the U.S. general public simply by not accruing for future benefit promises!


The U.S. Government is in the process of printing an infinite amount of counterfeit money by deferring an unending and ever-increasing (infinite) amount of public liabilities to the future Americans (U.S. Unfunded Liabilities (GAAP)) and undertaxing the U.S. upper class!


This accounting fraud is deferring public liabilities to the future Americans and relieving the U.S. upper class of these liabilities! This accounting fraud is fraudulently borrowing counterfeit money from the future Americans, money that the future Americans do not have, and fraudulently giving it to the U.S. upper class by undertaxing them!


Incurring public liabilities produces private assets! But these private assets are counterfeit money when these public liabilities can never be paid!


This $124.5 Trillion does not exist and has no value. This $124.5 Trillion is a figment of the imagination of the U.S. Government and the U.S. Government thinks it can get away with this fraud because most of the people on Planet Earth cannot even imagine that the U.S. Government would even think about committing a $124.5 Trillion crime!


GAAP basis deficit spending by the U.S. Government prints counterfeit money and gives it to the U.S. upper class!


This is fraud!


This is a $124.5 Trillion fraud!


The U.S. Government is running a classic Ponzi scheme, I call it USAPonzi, that is printing counterfeit money, I call it imaginary-counterfeit money, and giving it to the U.S. upper class! So far, this accounting fraud has digitally printed $124.5 Trillion of imaginary-counterfeit money and given it to the U.S. upper class which is causing Global Warming that is Destroying Planet Earth (See Global Warming Apocalypse)!


The entire planet is in the process of buying and building an infinite number of environment-polluting physical objects that are being “paid for” with the infinite supply of imaginary-counterfeit money that the U.S. Government is fraudulently borrowing from the future Americans!


The following table, extracted from www.usdebtclock.org, shows how the U.S. Government has undertaxed the U.S. upper class by $124.5 Trillion (US Unfunded Liabilities (GAAP)) and given the U.S. upper class $124.5 Trillion of imaginary-counterfeit money!



National Debt  $22.4 Trillion 
Cash Deficit in FY2019  $1.01 Trillion 
GAAP Deficit in FY2019  $6.12 Trillion 
US Unfunded Future Liabilities  $102.1 Trillion 
US Unfunded Liabilities (GAAP)  $124.5 Trillion 
Imaginary-Counterfeit Money  $124.5 Trillion 
Total National Assets  $152.4 Trillion 

Source: www.usdebtclock.org June 19, 2019


That is
what is different this time; the U.S. Government is in the process of printing an infinite supply of imaginary-counterfeit money, by fraudulently borrowing it from the future Americans, to enrich the rich, to stimulate the global economy, and to cause the stock market to go ever higher!


As long as the U.S. Government continues to print an infinite supply of counterfeit money, most of your nine propositions, as listed above, can appear to be true!


When this Ponzi scheme is exposed, this imaginary-counterfeit money, currently $124.5 Trillion, will evaporate into the “thin air” from whence it came!


When this Ponzi scheme is exposed, it will become evident that none of your above listed nine propositions can be sustainably true!


This accounting fraud can only be eliminated by the U.S. Government adopting GAAP Accounting and committing to a balanced GAAP basis budget. GAAP Accounting, properly applied, will not allow the U.S. Government to borrow more money from the future Americans than the future Americans can be reasonably expected to pay!


So far, this accounting fraud that I call USAPonzi has fraudulently borrowed $124.5 Trillion of imaginary-counterfeit money from the future Americans to fraudulently enrich the U.S. upper class!


That is why we have a wealth and income gap; the U.S. Government is cheating the 99% so that it can enrich the 1%!


This fraud/Ponzi scheme is explained in more detail on my websites www.usaponzi.net and www.usaponzi.com and in my fifth book on this Ponzi scheme, USAPonziB!


John W White

Plano, TX