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

US Debt-Liabilities-Assets from $112.3T Fraud
March 8, 2018
Emailed to WSJ/NYT/WP/DMN, the US SEC, Congressman Pete Sessions, Congressman Sam Johnson, Senator John Cornyn, and Senator Ted Cruz on 3/9/18


The following is an Op-Ed to “The Wall Street Journal”, “The New York Times”, “The Washington Post”, and “The Dallas Morning News” which explains that because the U.S. Government is committing fiscal and accounting fraud, the U.S. upper class appears to be getting rich and the global economy appears to be strong! This is happening because the U.S. Government is not operating its fiscal policy according to Generally Accepted Accounting Principles (GAAP Accounting)!


The “news media” has an ethical responsibility to inform the general public of how the U.S. Government is committing fiscal and accounting fraud to cheat the general public and the rest of the planet so they can “feather their own nests” and “dramatically feather the nests of their upper-class friends”!


The “news media” is aiding and abetting the corrupt and criminal U.S. Government by refusing to report this fiscal and accounting fraud!


US Debt-Liabilities-Assets from $112.3T Fraud
March 8, 2018


The corrupt and criminal U.S. Government has committed a $112.3 Trillion criminal act!


In this commentary, I will explain why the U.S. upper class appears to be getting rich and why the global economy appears to be very strong! Both of these things are happening because the U.S. Government is committing fiscal and accounting fraud! The U.S. Government is not operating its fiscal policy according to Generally Accepted Accounting Principles (GAAP Accounting).


The United States of America appears to be the wealthiest and most prosperous country on the planet because the corrupt and criminal U.S. Government is borrowing money, $112.3 Trillion so far, from the future Americans, money that the future Americans do not have, and giving it to the U.S. upper class!


Because the U.S. Government is not operating its fiscal policy according to GAAP Accounting, the U.S. upper class is being colossally undertaxed and the global economy is being radically stimulated with GAAP basis deficit spending. The U.S. Government is incurring a GAAP basis deficit in FY2018 of $5.99 Trillion but is reporting a Cash basis deficit in FY2018 of $0.72 Trillion! Further, the U.S. Government is pretending like the future Americans will be able to pay $112.3 Trillion of public liabilities (US Unfunded Liabilities (GAAP)).


The corrupt and criminal U.S. Government has created $112.3 Trillion of imaginary-counterfeit money out of “thin air” by pretending to borrow it from the future Americans! The U.S. Government has given this $112.3 Trillion to the U.S. upper class!


This is a $112.3 Trillion Ponzi scheme!
This is a $112.3 Trillion fraud!


The U.S. Government launched this massive fraud/Ponzi scheme in FY1969 when LBJ proposed and the U.S. Congress approved the Unified Budget! I call this fraud/Ponzi scheme USAPonzi and it has been operating for the last 49 years! The following table demonstrates how, over the last few years, the apparent net worth of U.S. private sector has been colossally increased by undertaxing the current Americans and deferring public liabilities to the future Americans. The U.S. private sector gains assets (wealth) as the U.S. Government assumes public liabilities!

 

US  US 
    Unfunded  Unfunded  Total  Assets  Liabilities 
National 

Future 

Liabilities 

National 

Minus 

Percent 
Date  Debt 

Liabilities 

(GAAP) 

Assets 

Liabilities 

Assets 
9/26/15  $18.4 

$79.3 

$97.7 

$116.3 

$18.6 

84.0% 
11/22/15  $18.7  $81.1  $99.8  $118.7  $18.9  84.1% 
3/27/16  $19.2  $82.4  $101.6  $122.5  $20.9  82.9% 
7/1/16  $19.3  $83.4  $102.7  $122.5  $19.8  83.8% 
9/24/16  $19.5  $84.1  $103.6  $123.6  $20.0  83.8% 
12/27/16  $19.9  $84.7  $104.6  $126.9  $22.3  82.4% 
3/31/17  $19.9  $85.7  $105.6  $130.2  $24.6  81.1% 
6/29/17  $20.0  $86.6  $106.6  $132.0  $25.4   80.8% 
9/26/17  $20.2  $87.4  $107.6  $134.2  $26.6  80.2% 
12/28/17  $20.6  $88.8  $109.4  $134.1  $24.7  81.6% 
3/8/18  $20.9  $91.5  $112.3  $135.8  $23.5  82.6% 

Source: www.usdebtclock.org


The information in the above table was sourced from the www.usdebtclock.org website on the dates indicated. The following is the meaning of each of the columns in this table.


National Debt is the amount of money that U.S. Government has had to borrow to pay for its Cash basis deficit spending.


US Unfunded Future Liabilities is the amount by which the U.S. Government has underfunded the U.S. Government benefit promises that the U.S. Government has made to the U.S. general public. GAAP Accounting assesses and reports this shortfall in the funding of the trust funds to pay for future U.S. Government benefits like Social Security, healthcare, government pensions, and veterans benefits.


US Unfunded Liabilities (GAAP) = National Debt + US Unfunded Future Liabilities. This column shows the total amount of public liabilities that the U.S. Government has assumed by undertaxing the U.S. upper class. The U.S. Government routinely reports our National Debt but does not formally report our US Unfunded Future Liabilities. By not operating with GAAP Accounting, the U.S. Government is not properly setting aside (accruing) the money to pay future U.S. Government benefits!


Total National Assets is the total net worth of all U.S. households, Corporations, and Small Businesses. This is the apparent private net worth of the current Americans as estimated by the Federal Reserve Bank.


Assets minus Liabilities = Total National Assets - US Unfunded Liabilities (GAAP). This is the difference between the U.S. private net worth and the U.S. public liabilities! This column shows that the “net” U.S. private net worth is not increasing very much. Most of the apparent U.S. private net worth (Total National Assets) has been gained by fraudulently deferring public liabilities to the future Americans.


Authors Note: You can also see the impact of the “Trump Rally” in the Stock Market in this column as the “net U.S. private net worth” has increased from nominally $20 Trillion to $24-26 Trillion since Trump was elected president in November of 2016.


U.S. private net worth (Total National Assets) has been significantly enhanced because the current Americans have been undertaxed by deferring public liabilities to the future Americans in the amount of US Unfunded Liabilities (GAAP). I call this significant increase in U.S. private net worth imaginary-counterfeit money since these US Unfunded Liabilities (GAAP) cannot be paid by the future Americans. The U.S. Government just imagines (pretends like) the now $112.3 Trillion of US Unfunded Liabilities (GAAP) can be paid some day but this money is counterfeit because the future Americans can never pay these public liabilities!


Therefore imaginary-counterfeit money = US Unfunded Liabilities (GAAP).


By not using GAAP Accounting, the U.S. Government has borrowed $112.3 Trillion of imaginary-counterfeit money from the future Americans, money that the future Americans do not have, and given it to the U.S. upper class.


This is a $112.3 Trillion fraud!


The last column in this table (Liabilities percent Assets) shows the percent of the U.S. private net worth that has been gained because the U.S. Government has deferred public liabilities to the future Americans. The U.S. Government is fraudulently increasing private net worth by deferring public liabilities to the future Americans that can never be paid. 80-84 percent of the apparent U.S. private net worth has been gained 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!


This imaginary-counterfeit money, currently $112.3 Trillion, will evaporate when USAPonzi Implodes!


The U.S. Government has fraudulently increased the apparent private net worth of the current Americans, primarily the U.S. upper class, to $135.8 Trillion by deferring $112.3 Trillion of public liabilities to the future Americans. The “real” private net worth of the current Americans is therefore shown in the Assets minus Liabilities column.


As this table shows, the apparent net worth of the current Americans (Total National Assets) is increasing rapidly as the public liabilities (US Unfunded Liabilities (GAAP)) are increasing rapidly! This is fraudulent enhancement of the private net worth of the U.S. upper class by incurring public liabilities. The U.S. upper class gets rich as the U.S. Government assumes public liabilities! But this wealth gain is imaginary and counterfeit because the future Americans cannot pay these public liabilities!


The U.S. upper class appears to be getting rich because the corrupt and criminal U.S. Government is borrowing monopoly money from the future Americans and giving it to the U.S. upper class by undertaxing them!


The global economy appears to be very strong because the U.S. Government is digitally printing imaginary-counterfeit money with GAAP basis deficit spending. The Stock Market is going up because the U.S. Government is borrowing monopoly money from the future Americans and giving it to the U.S. upper class by undertaxing them! The Stock Market is in meltup mode because the U.S. Government has borrowed $112.3 Trillion of imaginary-counterfeit money from the future Americans and given it to the U.S. upper class!


The U.S. Government borrows $16.4 Billion more imaginary-counterfeit money from the future Americans every day with ongoing GAAP basis deficit spending (GAAP deficit in FY2018 = $5.99T/365 days = $16.4B). That is why the Stock Market continues to set new record highs, the U.S. Government just prints more imaginary-counterfeit money every day and gives it to the U.S. upper class!


The corrupt and criminal U.S. Government is enriching the U.S. upper class and stimulating the global economy by fraudulently borrowing money (imaginary-counterfeit money) from the future Americans, money that the future Americans do not have, and giving it to the U.S. upper class!


The corrupt and criminal U.S. Government is running a classic $112.3 Trillion Ponzi scheme (USAPonzi) by not using proper GAAP Accounting!


The U.S. upper class appears to be getting filthy rich because the corrupt and criminal U.S. Government has borrowed $112.3  Trillion of imaginary-counterfeit money (US Unfunded Liabilities (GAAP)) from the future Americans and given it to the U.S. upper class by undertaxing them!


The global economy (the Stock Market is a good proxy for the global economy) appears to be doing great because the corrupt and criminal U.S. Government has fraudulently borrowed $112.3 Trillion from the future Americans and given it to the U.S. upper class by undertaxing them!


The U.S. ruling class appears to be doing great because the corrupt and criminal U.S. Government has borrowed $20.9 Trillion (National Debt) from the future Americans and given it to the U.S. ruling class by overpaying them!


The U.S. general public is getting screwed because the corrupt and criminal U.S. Government has promised the U.S. general public government benefits worth $91.4 Trillion but has underfunded them so that it can overpay the U.S. ruling class, enrich the U.S. upper class, and run up the Stock Market!


The rest of the planet is getting screwed because the corrupt and criminal U.S. Government has borrowed $112.3 Trillion of imaginary-counterfeit money (US Unfunded Liabilities (GAAP)) from the future Americans and given it to the current Americans so that Americans can buy stuff from the rest of the planet without having to pay for it! Most of the things that Americans are buying and building are being paid for with imaginary-counterfeit money that has been fraudulently borrowed from the future Americans!


The corrupt and criminal U.S. Government is being run by either a bunch of fools or a bunch of criminals! Take your pick!


The “news media” is aiding and abetting this $112.3 Trillion criminal act by the U.S. Government by refusing to expose this fiscal and accounting fraud!

 

National Debt  $20.9 Trillion 
Cash Deficit in FY2018  $0.72 Trillion 
GAAP Deficit in FY2018  $5.99 Trillion 
US Unfunded Future Liabilities  $91.4 Trillion 
US Unfunded Liabilities (GAAP)  $112.3 Trillion 
Imaginary-Counterfeit Money  $112.3 Trillion 
Total National Assets  $135.8 Trillion 

Source: www.usdebtclock.org Mar 8, 2018


To eliminate this fraud, the U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget.


I have published a website www.usaponzi.net that explains how this fraud works to create a massive global wealth and income gap between the haves and the have-nots and to create false wealth and prosperity for the current Americans. The www.usaponzi.net website is an introduction to my more detailed website www.usaponzi.com and my books “USAPonzi” (Nov 22, 2015), “USAPonzi2” (May 1, 2017), and “USAPonzi3” (Feb 1, 2018) which are available on Amazon to better explain this fraud/Ponzi scheme.


This is the biggest ($112.3 Trillion) financial fraud ever perpetrated, I call it “USAPonzi: The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”.


John W. White
Plano, TX