USA: The Land of Endless Money!
May 23, 2016
The United States of America is the "Land of Endless Money". The current Ponzi scheme fiscal policy of the U.S. Government is creating an endless supply of imaginary-counterfeit money.
The U.S. Government is corrupt!
The U.S. Government is committing fiscal and accounting fraud!
The U.S. Government is being run by a bunch of crooks!
The U.S. Government is running a massive ($102.2 Trillion) Ponzi scheme that I have named USAPonzi.
The U.S. Government is borrowing an endless stream of imaginary-counterfeit money from the future U.S. taxpayers and giving it to the current U.S. citizens and businesses with GAAP basis deficit spending. This money is imaginary because the U.S. Government "imagines" that the future U.S. taxpayers will be able to pay what is now $102.2 Trillion of public liabilities. This money is counterfeit because the future U.S. taxpayers cannot pay this $102.2 Trillion of public liabilities (See The Theory of Imaginary Money).
The U.S. Government started this Ponzi scheme fiscal policy in FY1969 by adopting the Unified Budget that was proposed by Lyndon Baines Johnson and approved by the 90th U.S. Congress. Once the U.S. Government got hooked on the drug of borrowing money from the future U.S. taxpayers, it cannot seem to break the addiction. In fact, once the U.S. Government got started borrowing this imaginary-counterfeit money it has had to continually increase the amount it borrows each year to perpetuate this Ponzi scheme. This is because the U.S. Government has to pay interest on these US Unfunded Liabilities (GAAP).
The U.S. Government has created this Ponzi scheme by spending more than it collects in taxes and and by promising to pay future benefits but not funding these future promises. The U.S. Government attempts to conceal this fraud by using Cash Accounting rather than the proper GAAP Accounting.
The U.S. Government is dramatically undertaxing the current U.S. taxpayers (GAAP Deficit of $5.77 Trillion in FY2016) and deferring massive and ever increasing liabilities to the future U.S. taxpayers which now total $102.2 Trillion (US Unfunded Liabilities (GAAP)). This is the signature characteristic of a Ponzi scheme; pay the "early participants" with money from the "late participants".
By using Cash Accounting to report its financial condition the U.S. Government tells us that our deficit is our Cash Deficit of $0.50 Trillion when our real deficit is our GAAP Deficit of $5.77 Trillion in FY2016.
This undertaxing of the U.S. upper class by $102.2 Trillion has increased the private net worth of all U.S. citizens and businesses to an estimated $123.8 Trillion (Total National Assets). This is called getting rich by having your friends in Washington give you a massive tax break.
USAPonzi is the cause of the "WEALTH AND INCOME GAP" because the U.S. upper class gets by far the most benefit from this massive fraudulent undertaxing!
|Cash Deficit in FY2016
|GAAP Deficit in FY2016
|Unfunded Future Liabilities
|| $82.9 Trillion
|US Unfunded Liabilities (GAAP)
|| $102.2 Trillion
|Total National Assets
|| $123.8 Trillion
Source: www.usdebtclock.org May 23, 2016
The U.S. Government is giving U.S. citizens and businesses $15.8 Billion of imaginary-counterfeit money every day (GAAP Deficit in FY2016 of $5.77T/365 = $15.8B).
This is the biggest ($102.2 Trillion) financial fraud ever perpetrated, I call it "USAPonzi: The Ultimate Government Fraud" and "The Biggest Ponzi Scheme on the Planet"!
The financial data presented in this commentary were sourced from www.usdebtclock.org as of May 23, 2016.