Taking the Plunge into Fiscal Oblivion!
U.S. Government Financial Status October 1, 2015
An ABSOLUTELY ABSURD SITUATION!
Who does the U.S. Government think they are kidding!
Oct 1, 2015 Emailed to SEC WSJ NYT & DMN Oct 5, 2015
As posted on www.usaponzi.com
The U.S. Government is running a Ponzi scheme Fiscal Policy (USAPonzi) that is providing massive but artificial stimulus to the U.S. and global economy and creating a massive amount of counterfeit wealth for U.S. citizens and businesses. The U.S. Government operates this Ponzi scheme by
1) using Cash Accounting rather than proper GAAP Accounting and
2) overspending on a Cash basis.
GAAP stands for "Generally Accepted Accounting Principles" which the U.S. Government refuses to accept. The U.S. Government requires that public companies follow these generally accepted accounting principles to avoid the Enron, Worldcom, Tyco, and Healthsouth type financial frauds but they refuse to follow their own rules. The U.S. Government is committing the biggest financial fraud in the history of the Planet by failing to follow its own rules.
This Fiscal Policy is transferring an ever increasing amount of the cost of the running the U.S. Government to the future U.S. taxpayer who cannot even keep up with the rate of current period spending (cash basis) let alone pay for the now $98.5 Trillion of US Unfunded Liabilities (GAAP). The U.S. citizens and businesses have been undertaxed by $98.5 Trillion on a GAAP basis since FY1969 so the upper class U.S. citizens and businesses appear to be very rich, they did not have to pay these taxes, while at the same time the Government employees and the social benefit recipients are being dramatically overpaid relative to what the U.S. taxpayer can afford.
While this is an absurd Fiscal Policy, everyone seems to be prepared to close their eyes, hold their nose, and take the plunge into Fiscal Oblivion. The ruling class loves being dramatically overpaid, the social benefit recipients love being dramatically overpaid, and the U. S. upper class is intoxicated by the fact that they appear to be getting rich at an absurd rate with the counterfeit money that the U.S. Government is creating out of "thin air".
The U.S. Government does not formally report its financial condition with GAAP Accounting so I will use the data from www.usdebtclock.org to show the U.S. Government's "real" financial condition (GAAP basis) as of Oct 1, 2015. The U.S. Fiscal Year ends on Sept 30 of the Fiscal Year.
FY2015 FY2016 FY2017
Income $3.18 T $3.25 T
Cash Basis Spending $3.68 T $3.68 T
Cash Deficit $0.50 T $0.43 T
Beginning of Year Debt $17.8 T $18.4 T $18.8 T
GAAP Basis Spending $8.59 T $9.15 T
GAAP Deficit $5.42 T $5.90 T
Beginning of Year Unfunded Liabilities $93.1 T $98.5 T $104.4 T Counterfeit Money
T = Trillion
The U.S. Government falsely claims to be reducing the budget deficit by cutting the Cash Deficit from $0.50 Trillion to $0.43 Trillion when our "real deficit", our GAAP Deficit, is increasing from $5.42 Trillion in FY2015 to $5.90 Trillion in FY2016. Because we are running both a Cash Deficit and a GAAP Deficit our Debt and our Unfunded Liabilities both continue to increase. Further, our GAAP Deficit is increasing exponentially so our Unfunded Liabilities are also increasing exponentially. The US Unfunded Liabilities (GAAP) also tells us just how much counterfeit money has been introduced into the U.S. and global economy by the GAAP basis Deficit Spending of USAPonzi.
The U.S. Government is using fraudulent accounting and making unaffordable, false, and unfunded social benefit promises to the U.S. citizenry, so that it can overpay itself, its employees and its related businesses and make the U.S. upper class appear to be super wealthy. Ponzi schemes can cause severe distortions and USAPonzi is no exception.
To correct these Fiscal Policy Issues, the U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget in order to establish an equitable and sustainable fiscal policy for the Government of the United States of America.
This Fiscal Policy is a Ponzi scheme, which I have named USAPonzi, because the U.S. Government is deferring these massive Unfunded Liabilities to the future U.S. taxpayer who cannot pay them.
USAPonzi is "The Biggest Ponzi Scheme on the Planet".
Because of this corrupt and fraudulent Fiscal Policy, I predict that we are headed toward a global financial system meltdown because the U.S. Government will be forced to declare bankruptcy.
See The Implosion of USAPonzi for an explanation of what I predict will happen when USAPonzi implodes and this global financial system meltdown occurs.
Financial data presented in this commentary was sourced from www.usdebtclock.org as of October 1, 2015.