USAPonzi is a four tiered Fraud!
June 26, 2016
The U.S. Government is massively fiscally irresponsible. There are at least four tiers (layers) to this $102.6 Trillion fiscal and accounting fraud that I call USAPonzi.
1) The U.S. Government is using Cash Accounting rather than the proper GAAP Accounting so it is not even attempting to accrue enough money to pay future social benefit promises. This is the most significant problem with the fiscal policy of the U.S. Government.
2) The U.S. Government is not adequately funding the pensions and veterans' benefits that it is promising.
3) The U.S. Government is spending the paid in tax revenues for future social benefit promises to cover current period general operating expenses. The U.S. Government, because it is using Cash Accounting, is not collecting nearly enough tax revenue to adequately fund the social benefit promises it has made, but the token funds that it is collecting for that purpose are being spent in the current period for other purposes.
4) The U.S. Government is overspending on a cash basis. The U.S. Government spends all of its tax revenue and then some more creating our National Debt of $19.3 Trillion as of June 26, 2016.
The U.S. Government is corrupt! The U.S. Government is committing fiscal and accounting fraud to try to conceal the fact that it is borrowing $15.8 Billion every day from the future U.S. taxpayers to overpay the U.S. Government workers, to overpay the social benefit recipients, and to slip massive amounts of money to themselves and their rich friends under the table!
The U.S. Government is operating with a corrupt and fraudulent accounting system (using Cash Accounting rather than the proper GAAP Accounting) and fiscal policy (overspending on a cash basis) that is borrowing imaginary-counterfeit money from the future U.S. taxpayers so that it can overpay the U.S. Government workers, overpay the social benefit recipients, and undertax the current U.S. taxpayers.
As of June 26, 2016 the U.S. Government has borrowed $102.6 Trillion from the future U.S. taxpayers (US Unfunded Liabilities (GAAP)) and is borrowing $15.8 Billion more every day (GAAP Deficit of $5.75T/365 = $15.8B).
|Cash Deficit in FY2016
|GAAP Deficit in FY2016
|Unfunded Future Liabilities
|| $83.3 Trillion
|US Unfunded Liabilities (GAAP)
|| $102.6 Trillion
|Total National Assets
Source: www.usdebtclock.org June 26, 2016
Total National Assets in the above table is the estimated private net worth of all U.S. citizens and businesses. Therefore, most (84%) of the U.S. private net worth has been produced as imaginary-counterfeit money by this U.S. Government fraud ($102.6T/$122.4T = 0.84).
This Ponzi scheme fiscal policy, if it is allowed to continue, will steal an infinite amount of imaginary-counterfeit money from future Americans and give it to current Americans. With the current fiscal policy, Americans will have an unending and ever-increasing supply of imaginary-counterfeit money to spend.
The United States of America is "flat broke"! The U.S. Government has borrowed $102.6 Trillion from the future U.S. taxpayers and these borrowings are increasing exponentially. This money can never be paid back. People that are buying U.S. treasuries to convert this imaginary money to real money are being ripped off. The United States of America is being run by a bunch of scoundrels (both inside and outside the U.S. Government) that are willing to lie to and cheat the future Americans and the rest of the planet so that they can overpay themselves and make many of them appear to be very rich.
This fraud elevates the standard of living for all current Americans! This fraud creates an opulent lifestyle for the U.S. ruling class! This fraud creates a super opulent lifestyle for the U.S. upper class! This fraud has dramatically accelerated the consumption rate for all Americans! We have bought, built, and consumed more than 5 times what we can afford by borrowing $102.6 Trillion from the future U.S. taxpayers (See Four out of Five Things in America are Unaffordable!).
This money that is being borrowed from the future U.S. taxpayers is what I call imaginary-counterfeit money. The U.S. Government has to imagine that the future U.S. taxpayers can pay this money so that they can lie to the U.S. citizenry with a "straight face" when they present their financial reports but it is counterfeit because they and everyone else knows that the future U.S. taxpayers can never pay it back (See The Theory of Imaginary Money).
This imaginary-counterfeit money (currently $102.6 Trillion) will evaporate into the "thin air" from whence it came when USAPonzi implodes! (See The Implosion of USAPonzi)
We have a bunch of scoundrels, liars, and cheaters that are running the U.S. Government with this Ponzi scheme fiscal policy so that they can line their own pockets and so that they can dramatically line the pockets of their upper class friends.
This is fraud! This is corruption! The people in Congress and the leadership in the Executive Branch should be indicted on fraud and corruption charges for continuing this fraud.
The U.S. Government has been committing this fraud for 47 years and the people in the U.S. Government refuse to give up this gravy train for themselves and their rich friends.
This problem can only be equitably resolved by the adoption of GAAP Accounting and a commitment to a balanced GAAP basis budget by the U.S. Government.
In order to create a level economic playing field over time and throughout the planet, the U.S. Government must eliminate this fraud and corruption. The U.S. Government must stop cheating the future Americans and the rest of the planet just so it can enhance the lifestyle of current Americans!
You can learn more about this fraud/Ponzi scheme by reading my website www.usaponzi.com or better yet by reading my book "USAPonzi" which is available on Amazon and also on my website in PDF format.
This is the biggest ($102.6 Trillion) financial fraud ever perpetrated, I call it "USAPonzi: The Ultimate Government Fraud" and "The Biggest Ponzi Scheme on the Planet"!