Why the U.S. Government raises the Debt Ceiling!
October 28, 2015 Emailed to SEC WSJ NYT DMN October 29, 2015
As posted on www.usaponzi.com
Why does the U.S. Government raise the Debt Ceiling? They raise it so they can continue to pay themselves more than the U.S. taxpayers can afford!
The U.S Government's fiscal policy is a Ponzi scheme and Ponzi schemes tend to grow exponentially, until they implode, so the U.S. Government really has no choice but to increase the Debt Ceiling to perpetuate its fiscal policy fraud!
The U.S. Government goes through a periodic, typically once a year, farce of a ritual to increase the Debt Ceiling in an attempt to convince the U.S. citizenry that they are seriously addressing the Government's spending, deficit, and debt. This process is a total sham. The U.S. Government is dramatically overspending, overcommiting, undertaxing, and lying to the U.S. citizenry and the world about the U.S. Government's financial condition by using Cash Accounting rather than the proper GAAP Accounting. The U.S. Government is not politically capable of taking the actions necessary to truly balance the federal budget so the U.S. Government takes the politically expedient path of borrowing money to pay for their overspending. With the current fiscal policy this can never stop. Saying that they are committed to fixing the deficit and debt problem tomorrow is not a workable strategy.
The U.S. Government is spending every penny it collects each year to pay current year expenses and still has had to borrow money EVERY YEAR since FY1969 because it is spending more money than it is collecting in tax revenues. If a financial entity is spending every penny it earns and is incurring more debt every year, how does it ever expect to pay off that debt? Of course it can not! The U.S. Government has no plan, intent, or ability to ever pay off the National Debt which now exceeds the U.S. Gross Domestic Product. The U.S. Government approves the increase to the Debt Ceiling so that it can continue to overpay the U.S. Government workers and U.S. Government related businesses and can continue to overpay the social benefit recipients.
This a huge problem that the U.S. Government continues to ignore. The ruling class is enjoying the fact that the ruling class is living an opulent lifestyle by fraudulently borrowing money to overpay themselves and deferring the resulting financial liabilities to the future taxpayers. To date, the U.S. Government has borrowed $18.4 Trillion so that it can overpay itself and it will soon pass a resolution that will authorize raising the Debt Ceiling again so they can continue to overpay themselves.
While borrowing money to overpay themselves is a huge problem it pales in comparison to the fact that that the U.S. Government is not funding the future financial commitments that the U.S. Government has made to pay social benefits, pensions, and veteran's benefits. The U.S. Government has not adequately funded the pension and veteran's benefit commitments it has made and has chosen to not fund the future social benefits at all since FY1969. The U.S. Government is, every year, immediately borrowing the money that is intended for the social benefit trust fund and spending it to help overpay the U.S. Government workers and U.S. Government related businesses. And the U.S. Government is not even attempting to collect enough tax revenues to pay for all of its future benefit commitments. This has created Unfunded Future Liabilities of $80.4 Trillion and when you add that to the National Debt the U.S. Government now has total US Unfunded Liabilities (GAAP) of $98.8 Trillion as reported by www.usdebtclock.org.
Debt of $18.4 Trillion has been used by the ruling class to overpay the ruling class by $18.4 Trillion.
US Unfunded Liabilities (GAAP) of $98.8 Trillion has been used by the ruling class to make the upper class richer by $98.8 Trillion.
The U.S. Government continues to raise the Debt Ceiling year after year and they use the excuse that they are only raising it to pay for commitments that the U.S. Government has already made. And they claim that it is the right thing to do because it would be a financial crisis if they did not borrow the money to pay our bills. By using that logic the U.S. Government should raise the Debt Ceiling to $104.4 Trillion since the current budget for FY2016 has a projected GAAP Deficit of $5.9 Trillion and our US Unfunded Liabilities (GAAP) were $98.5 Trillion at the end of FY2015 so our U.S. Government financial commitments will be $104.4 Trillion by the end of FY2016. Therefore, the U.S. Government should raise the Debt Ceiling to $104.4 Trillion right now and recognize that our National Debt will, with the current fiscal policy, increase to infinity.
This creates a classic Ponzi scheme. With the current corrupt and fraudulent (USAPonzi) fiscal policy our financial commitments are currently $98.8 Trillion and they are increasing exponentially. The U.S. Government is technically bankrupt and yet the U.S. Government continues to authorize a budget that does nothing but continue to increase both our National Debt and our US Unfunded Liabilities (GAAP) which is an advance warning of the amount of Debt the U.S. Government will eventually have to incur to meet current U.S. Government commitments. Every year the financial liabilities of the future U.S. taxpayers increase exponentially.
The U.S. Government is financially out of control. The U.S. Government is much bigger than the U.S. taxpayers can afford. As my Open Letter to U.S. Citizens Oct 26, 2015 explains, the U.S. Government with the current fiscal policy is lining the pockets of the ruling class, dramatically lining the pockets of the upper class, and cheating the Common Man. EVERY DAY that the U.S. Government continues USAPonzi, the ruling class gets a more comfortable lifestyle, the upper class gets richer, and more and more of the Common Man are facing financial devastation because they are retiring or quitting work to depend on the false promises of social benefits from the U.S. Government.
This is why I say that we have a bunch of Scoundrels, Liars, and Cheaters in the U.S. Government.
See The Implosion of USAPonzi for my more detailed prediction of what will happen at "The End Game for USAPonzi".
The ever expanding US Unfunded Liabilities (GAAP) that USAPonzi is producing with GAAP basis Deficit Spending can only lead to a technical bankruptcy of the U.S. Government (See Dealing with National Bankruptcy).
We have a bunch of Scoundrels, Liars, and Cheaters in the U.S. Government that are responsible for this fraud and corruption and The Upper Class is no better because they are willing to go along with this fraud and corruption because it is appearing to make them filthy rich with counterfeit money.
This situation can only be resolved by the U.S. Government adopting GAAP Accounting and committing to a balanced GAAP basis budget. This will ensure an equitable and sustainable Fiscal Policy.
The financial data presented in this commentary was sourced from www.usdebtclock.org as of October 28, 2015