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

U.S Fiscal Policy is Patently Absurd!
(Living on Counterfeit Money)
Feb 9, 2015
As posted on www.usaponzi.com


The current U.S. Government Fiscal Policy is patently absurd!!!!  The U.S. Government is running a massive Ponzi scheme that has generated $100.4 Trillion of counterfeit money and a corresponding GAAP Obligation of $100.4 Trillion.  By spending much more than our cash receipts, the U.S. Government has generated $18.1 Trillion of debt.  By promising to pay $82.3 Trillion of social benefits to U.S. citizens and not taxing the U.S. citizens and businesses to pay for these social benefits, the U.S. Government now has a "virtual debt" (GAAP Obligation = Debt + Unfunded Liabilities) of $100.4 Trillion.  The U.S. citizens and businesses now appear to be $100.4 Trillion richer, due to this undertaxing, but with counterfeit money since the future U.S. taxpayer can never pay this tax bill.


By using Cash Accounting rather than the appropriate GAAP Accounting, the U.S. Government lies to the U.S. citizenry by saying that we have a deficit of $0.5 Trillion when our "real" deficit is a GAAP deficit of $6.5 Trillion.  The U.S. Government tells the U.S. citizenry that our debt is $18.1 Trillion when our "real" financial obligations are $100.4 Trillion.  The U.S. Government is lying to the U.S. citizenry by telling them that the U.S. Government will pay them Social Security at the currently promised rates when the U.S. Government does not have the money.  The U.S. Government has spent or never collected the tax revenue required pay for its Social Security promises.  The U.S. Government is lying to the U.S. citizenry by telling them that the U.S. Government will pay for their healthcare when the U.S. Government does not have the money.  The U.S. Government has spent or never collected the tax revenue required to pay for its healthcare promises.

 

That is why the U.S. Government is running a massive ($100 Trillion) Ponzi scheme (USAPonzi).  The U.S. Government is making promises it cannot keep and is paying its current bills and expecting to pay its future bills with money that it is borrowing from the future U.S. taxpayer that now has a balloon tax bill with a balance due of $100.4 Trillion and this amount due is growing by $17.8 Billion every day.



The U.S. Government is creating massive Unfunded Liabilities ($82.3 Trillion) by undertaxing the Upper Class (they are the only ones that have enough money to pay for these social benefit commitments), but the U.S. Government is also overpaying itself and its direct and indirect employees by now a total of $18.1 Trillion.  This is why we have so many rich people that live in and around Washington D.C.  (see DC-A Coming Ghost Town).  The people in the U.S. Government are routinely "feathering their nests and those of their direct and indirect employees" at the expense of the future U.S. taxpayer.

 

This current U.S. Fiscal Policy is creating counterfeit money at the rate of our GAAP basis deficit spending which I estimate to be $6.5 Trillion in FY2015.  This counterfeit money is producing an opulent lifestyle for many people in the Ruling Class and the Upper Class and is making the Upper Class very rich.  The U.S. Middle and Lower Classes are getting paid their social benefits today but the U.S. Government is having to borrow money to even make current year payments.  The U.S. Government will not be able to borrow enough ($100.4 Trillion and growing exponentially) in the future to continue to pay these promises.

 

The current U.S. Fiscal Policy will create infinite public debt and infinite private net worth.  But no one in the Ruling Class or in the Upper Class wants this Ponzi scheme to stop because they are all living an opulent lifestyle that continues to get better every day and the Upper Class can appear to become infinitely rich.  But at the same time many of the Middle and Lower Class folks that are expecting to get paid Social Security, pensions, Medicare, Medicaid, etc. are retiring and quitting work to collect these social benefits that the U.S. Government has promised but not funded so these folks are headed toward financial devastation.


The U.S. Government has created $100.4 Trillion of counterfeit money over the last 46 years.


The U.S. Government is creating $6.5 Trillion more counterfeit money in FY2015 or $17.8 Billion every day.


If U.S. businesses cannot make huge profits when the U.S. Government is giving them a $6.5 Trillion annual tailwind then they have a massively flawed business model; listen up Amazon!  The U.S. Government is giving social benefits to 40-45% of the population and is dramatically undertaxing the people that are working or making money investing, so everybody has much more money to spend than we can afford.  The U.S. Government is passing out counterfeit money to everyone with the current fiscal policy.  Some get paid directly with an EBT (Electronic Benefit Transfer) card and the rest get paid by not paying the taxes required to balance our GAAP basis budget.  But everybody is getting these phantom payments from the poor future U.S. taxpayer that is hopelessly in debt now but is on a trajectory toward infinite debt.


With all of this counterfeit money the U.S. consumer can buy a lot of products and services from businesses to make them appear to be prosperous and profitable.  We do not need to increase our work force participation rate to continue with this apparent, but fraudulent, prosperity.  We just need to have enough immigrant workers doing things for us that we can pay for with this counterfeit money.  This is why the stock market continues to set new records on a regular basis, the U.S. Government's Fiscal Policy is creating an unbounded supply of counterfeit money.  This is also why our GDP is overstated by nearly 2X.


The U.S. Government is printing enough counterfeit money to pay for social benefits to 40-45% of the U.S. population.  The U.S. Government is printing enough counterfeit money so that we can pay our champion golfer $1 Million every week.  The U.S. Government is printing enough counterfeit money so that we can pay our star quarterbacks $10-25 Million a year.  The U.S. Government is printing enough counterfeit money for Warren Buffet to make $10 Million every day.  The U.S. Government is printing enough counterfeit money to create hundreds of Billionaires and millions of Millionaires.  This $100 Trillion of counterfeit money, that is growing exponentially, can appear to make a lot of people very rich and/or earn a fabulous income without working or producing anything.  The Government of the United States of America is a $100 Trillion Counterfeit Money Machine.

 

But not to worry, it will be better tomorrow because the U.S. Government will print another $17.8 Billion of counterfeit money overnight.


We are living in a fantasy world that the U.S. Government has created with USAPonzi.

 

But we must not forget that this is a Ponzi scheme and that it will implode!  When it does implode this counterfeit money will evaporate into the "thin air" whence it came.  Football players and golfers (and a lot of other folks) will not be able to earn these outrageous salaries and 90% of the wealth of the Upper Class will go to "money heaven".


And we must remember that the U.S. Government is creating counterfeit money at the rate of our GAAP basis deficit spending ($6.5 Trillion in FY2015)!   You can forget about what the Fed is doing or threatening to do with Monetary Policy.  The Fed Monetary Policy is just noise in the grand scheme of things.  The U.S. Government Fiscal Policy is where this "virtual money" is being created and when the U.S. Government has $100 Trillion of "virtual debt" the only plausible interest rate is zero or negative.


The Swiss have already recognized this and the Swiss National Bank is now charging 1% interest for people to "keep money in a safe place"?



Until the U.S. Government adopts GAAP Accounting and commits to a GAAP basis balanced budget this lunacy will continue.


The Upper Class will continue to live an increasingly opulent lifestyle and will continue to get richer.


The Ruling Class will continue to live an opulent lifestyle.


The Middle and Lower Classes will continue to get cheated and will continue to retire or just quit working to collect social benefits that the U.S. Government is falsely promising.