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

USAPonzi CliffsNotes 11/01/16
November 1, 2016

For people that do not want to read my entire book that explains "USAPonzi", this is the CliffsNotes version of the book as updated on Nov 1, 2016.

The U.S. Government has gotten the global financial and economic system into one hell of a mess by using a fraudulent accounting system!

The U.S. Government has borrowed/stolen $104.0 Trillion of fake money (imaginary-counterfeit money) from the future Americans and given it to the current Americans. The U.S. Government is stuffing this fake money into the pockets of the current Americans with GAAP basis deficit spending.

This is why the rich are getting richer. This is why the poor are getting poorer on a relative basis. This is why we have so many cars and trucks that we have traffic jams; we are buying them with fraudulently borrowed fake money. This is why illegal immigrants will risk deportation, life, and limb to come to America to get some of this fake money. This is why the drug dealers will risk life and limb to sell drugs to the rich Americans that have this fake money. This is why football players will risk life and limb to make millions of fake money playing a sport that could give them concussions. This is why the stock market goes up continuously with this fake money. This may be why the terrorists want to terrorize us; they resent the fact that we have such an opulent lifestyle by spending fake money. This may be why the under privileged riot in the streets; they resent the fact that the elite have so much fake money and they have so little money of any kind. This is why many Americans do not want/need to work for low wages. This is why the cost of housing continues to escalate. This is why the cost of health care continues to escalate. This is why the cost of everything seems to have gone up by nominally 5% a year since 1969. This is why politicians will lie and cheat so that they can get elected and join this gravy train that they themselves have concocted.

The U.S. Government is corrupt! Since FY1969, the U.S. Government has been operating with a fiscal policy that is a criminal activity. The U.S. Government is not using proper accrual accounting (GAAP Accounting) and is therefore not properly accruing for future financial commitments that include government pensions, veteran benefits, and social benefits. This creates a dramatically unbalanced budget that has deferred $104.0 Trillion of public liabilities to the future Americans which is reported by as US Unfunded Liabilities (GAAP).


National Debt  $19.8 Trillion 
Cash Deficit in FY2017  $0.59 Trillion 
GAAP Deficit in FY2017  $5.68 Trillion 
Unfunded Future Liabilities  $84.2 Trillion 
    US Unfunded Liabilities (GAAP)       $104.0 Trillion 
Imaginary-Counterfeit Money  $104.0 Trillion 
Total National Assets  $123.8 Trillion 

       Source: November 1, 2016

The U.S. Government is simply pretending to borrow money from the future Americans and giving it to the current Americans. As of Nov 1, 2016, the U.S. Government has "borrowed/stolen" $104.0 Trillion of fake money from the future Americans and given it to current Americans. This is fraud because the future Americans cannot pay this $104.0 Trillion and worse yet the amount borrowed from the future Americans is increasing by $15.6 Billion every day because of ongoing GAAP basis deficit spending (GAAP Deficit in FY2017 of $5.68T/365 = $15.6B).

I call this fake money that the U.S. Government has borrowed from the future Americans imaginary-counterfeit money because the U.S. Government just imagines that the future Americans can pay it so it is imaginary but the future Americans cannot pay it so it is counterfeit. The U.S. Government is stealthily and systematically creating imaginary-counterfeit money out "thin air" with GAAP basis deficit spending (See The Theory of Imaginary Money).

The U.S. Government has been "Cooking the Books" by using Cash Accounting rather than the proper GAAP Accounting since FY1969. As a result, the U.S. Government and by association all Americans have been writing hot checks to each other and to the rest of the planet to buy stuff with this imaginary-counterfeit money. The U.S. Government, with the current fiscal policy, has authorized Americans to spend up to $104.0 Trillion of imaginary-counterfeit money and is authorizing $15.6 Billion more every day.

The U.S. Government has committed a $104.0 Trillion crime. The senior officials in the U.S. Government are criminals and as I said in my first of twelve whistleblower letters to the SEC dated January 8, 2014:

"I contend that every Member of Congress and every senior member of the Administration should be indicted on fraud and corruption charges if they vote for or support any financial budget that is based on our current Cash Accounting methodology."

The crime being committed by the U.S. Government is eerily similar to the Madoff and Enron frauds but 2000 times larger than either of these massive financial frauds. The U.S. criminal justice system quickly convicted the principals in both of these frauds and sent them to prison. Bernie Madoff was given a life sentence. What should be the penalty for committing a crime that is 2000 times larger than the Madoff Ponzi scheme?

USAPonzi is strikingly similar to Madoff Ponzi since it is making the rich friends of the U.S. Government (the U.S. upper class) appear to be quite rich by undertaxing them by $104.0 Trillion, deferring the public liabilities to the future Americans, and at the same time is skimming off a few billion dollars for themselves (See The Clinton Fraud). Bernie Madoff used this same model for his scheme; he claimed to have made billions of dollars through his investment firm for his rich friends but was actually paying investment returns to his early investors with money from new investors and skimming off a few million dollars for himself by using a fraudulent reporting system.

I call this massive U.S. Government Ponzi scheme USAPonzi. This Ponzi scheme fiscal policy of the U.S. Government is in the process of producing an infinite supply of imaginary-counterfeit money by borrowing it from the future Americans.

The table above shows the magnitude of the difference between Cash Accounting and the proper GAAP Accounting (Generally Accepted Accounting Principles). Cash Accounting reports a Cash Deficit in FY2017 of $0.59 Trillion while GAAP Accounting reports a GAAP Deficit in FY2017 of $5.68 Trillion. Cash Accounting reports public liabilities (National Debt) of $19.8 Trillion while GAAP Accounting reports public liabilities (US Unfunded Liabilities (GAAP)) of $104.0 Trillion.

Public liabilities (US Unfunded Liabilities (GAAP) on that are deferred to the future Americans become imaginary-counterfeit money in the pockets of the current Americans that did not pay these taxes.

The global economy is operating on this ever increasing supply of imaginary-counterfeit money produced by the GAAP basis deficit spending of the U.S. Government. The entire planet appears to be getting rich with imaginary-counterfeit money produced by USAPonzi. Americans are able to buy a lot of stuff that they cannot afford with this exponentially increasing supply of imaginary-counterfeit money that the U.S. Government borrows from the future Americans. The current Americans are buying stuff with the future Americans' money which the future Americans do not have.

I call this massive pool of imaginary-counterfeit money “The Oswald Financial Bubble” because USAPonzi was started by LBJ in FY1969 and LBJ became president because Oswald assassinated JFK. The Oswald Financial Bubble has, to date, had two major pulsations “The Internet Bubble” in 2000 and “The Housing Bubble” in 2008 but it has also caused a 48-year long bull run in the global equity markets creating “The Stock Market Bubble”. Most of the money made in the stock market over the last 48 years is not due to the performance of companies but rather due to the fraudulent creation of imaginary-counterfeit money by USAPonzi. USAPonzi is the reason that the stock market appears to be the only place that investors can earn a reasonable return today but most of these returns are in imaginary-counterfeit money. And by the way, the Internet Bubble and the Housing Bubble were just preliminary tremors to the financial earthquake that will occur when the Oswald Financial Bubble bursts. The last major pulsation of The Oswald Financial Bubble will occur when USAPonzi implodes. It will be a doozy!

The Oswald Financial Bubble
has filled the planet with stuff that we really cannot afford because we are buying and building this stuff with imaginary-counterfeit money creating “The Automobile Bubble”, “The Airplane Bubble”, “The Skyscraper Bubble”, “The Oil Price Bubble”, “The Gold Price Bubble”, “The Smartphone Bubble”, “The Bank Bubble”, “The Sports and Entertainment Pay Bubble”, “The Entertainment Facility Bubble”, “The Mall Bubble”, “The Restaurant Bubble”, “The Medical Cost Bubble”, “The Medical Facility Bubble”. etc.

Because of this fiscal and accounting fraud, I estimate that we have on the order of 5-7 times as many "things" like cars, planes, smartphones, restaurants, banks, golf courses, etc. as we can afford by borrowing $104.0 Trillion of imaginary-counterfeit money from the future Americans. We have much, much more imaginary-counterfeit money than we have real earned income. It is a lot easier to borrow an imaginary-counterfeit dollar from the future Americans than it is to earn a real dollar by expending effort or producing a product.

Total National Assets of $123.8 Trillion, in the above table, is the estimated private net worth of all U.S. citizens and businesses therefore approximately 84% of U.S. private net worth is imaginary-counterfeit money created by the undertaxing of USAPonzi ($104.0T/$123.8 = 0.842). Current Americans are getting rich by imagining that the future Americans will pay their bills.

is allowing Americans to live dramatically beyond their means because of this injection of $104.0 Trillion of imaginary-counterfeit money into their pockets.

is dramatically stimulating the U.S. and global economy with GAAP basis deficit spending of $5.68 Trillion in FY2017. This stimulus is actually accelerating because our deficit spending tends to increase exponentially. This is due to the fact that the U.S. Government has to pay real interest on the National Debt and virtual interest on the Unfunded Future Liabilities. The U.S. Government now has $104.0 Trillion on its credit card and the interest is compounding on the balance due.

has caused the wealth and income gap because the U.S. upper class tends to be undertaxed more than the Common Man. USAPonzi has created hundreds of imaginary Billionaires and millions of imaginary Millionaires. $104.0 Trillion of imaginary-counterfeit money that the U.S. Government has fraudulently borrowed from the future Americans can make a lot of people appear to be very rich.

The more public liabilities the U.S. Government incurs the richer the U.S. upper class appears to be. The more unfunded future liabilities the U.S. Government incurs the more at risk the pensioners, veterans, and social benefit recipients become. The longer this Ponzi scheme operates the more distorted the global financial and economic system becomes. We are building houses, apartment buildings, skyscrapers, sports complexes, office building complexes, Las Vegas, Disney Worlds, cities, airports, etc. etc. with the imaginary-counterfeit money that USAPonzi is producing by pretending to borrow it from the future Americans.

The Common Man works hard to earn real money while the U.S. upper class and the U.S. ruling class get paid and get rich by having the U.S. Government produce imaginary-counterfeit money by fraudulently borrowing it from the future Americans.

is bloating the U.S. Government because the U.S. Government is overspending on a Cash basis including spending the tax revenues that were intended to fund the future social benefit promises. The U.S. Government will have to be massively reformed when USAPonzi implodes.

The global dominance of the United States of America will be markedly diminished economically, financially, militarily, and politically when USAPonzi implodes.

The imaginary-counterfeit money in The Oswald Financial Bubble, currently $104.0 Trillion, will evaporate into the “thin air” from whence it came when USAPonzi implodes. $104.0 Trillion is actually quite a lot of money (See How much money is 2.5 Trillion Dollars?).

This will cause most banks to fail when USAPonzi implodes because most of the money in our banks is imaginary-counterfeit money that the U.S. Government has borrowed from the future Americans.

The global economy will suffer a massive economic recession/depression when USAPonzi implodes (See The Implosion of USAPonzi).

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

is explained in much more detail on my website and in my book “USAPonzi” which is available on Amazon in Kindle and Paperback formats and on my website in PDF format.

This is the biggest
($104.0 Trillion) financial fraud ever perpetrated, I call it “USAPonzi: The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”.