Chapter 25 The Myth of American Economic Exceptionalism
November 22, 2015
America appears to be Economically Exceptional only because of U.S. Government Fraud and Corruption!
The United States of America appears to be one of the most prosperous and successful countries on the planet. The United States of America is currently the most dominant economic, political, and military power on the planet. The United States of America has many many wealthy and super wealthy people. The poor in America have living conditions that are the envy of many other parts of the planet. Many of the "American poor" have color TVs and smartphones while a lot of the "global poor" do not have enough food or even clean water.
However this prosperity and wealth in The United States of America is a myth (an illusion) that has been created by U.S. Government fraud and corruption!
The U.S. Government is running a massive Ponzi scheme that I have named USAPonzi. The U.S. Government has created this Ponzi scheme by using a flawed fiscal policy and a flawed accounting system. The U.S. Government is using Cash Accounting when it should be using GAAP Accounting. In addition the U.S. Government is overspending its Cash income.
This corrupt and fraudulent fiscal policy is handing out counterfeit money, money we do not have now nor will we ever have, to the U.S. citizens and businesses by paying unaffordable social benefits, by overpaying U.S. Government workers and Government related businesses, and by undertaxing the U.S. taxpayers. This undertaxing creates GAAP basis deficit spending each year which has accumulated over the last 47 years to what are now massive US Unfunded Liabilities (GAAP).
According to usdebtclock.org Nov 22, 2015, we now have US Unfunded Liabilities (GAAP) of $99.8 Trillion and will incur a GAAP Deficit of $5.9 Trillion in FY2016 which ends September 30, 2016. By incurring these Unfunded Liabilities the U.S. Government has created $99.8 Trillion of counterfeit money.
The U.S. Government is using massive GAAP basis deficit spending (counterfeit money) to:
1) overpay social benefits, while incurring $18.7 Trillion of Debt.
2) overpay Government workers and businesses, while incurring $18.7 Trillion of Debt.
3) undertax the U.S. citizens and businesses, while creating $99.8 Trillion of counterfeit wealth.
This corrupt and fraudulent fiscal policy appears to provide:
1) at least sustaining social benefits to most Americans.
2) retirement income and medical care to many Americans.
3) a comfortable to opulent living for direct and indirect Government employed Americans and appears to make many of them wealthy.
4) an opulent to super opulent living for the upper class Americans and appears to make them wealthy or even super wealthy. $99.8 Trillion of counterfeit money can appear to make a lot of people very rich!
USAPonzi has created $99.8 Trillion of counterfeit money to produce this apparent "American Economic Exceptionalism". But all because of a corrupt and fraudulent fiscal policy. The future U.S. taxpayers are now expected to pay for these promises that the U.S. Government has made, which of course they cannot. As a result we will be facing a major financial crisis as the U.S. Government attempts to borrow an ever increasing amount of "real" money to meet these Unfunded Liabilities that now stand at $99.8 Trillion. This will eventually lead to the implosion of USAPonzi.
The U.S. Government is using fraudulent accounting and making unaffordable, false, and unfunded social benefit promises to the U.S. citizenry, so that it can overpay itself, its employees and its related businesses and make the U.S. upper class appear to be super wealthy. Ponzi schemes can cause severe distortions and USAPonzi is no exception.
To correct these fiscal policy Issues, the U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget in order to establish an equitable and sustainable fiscal policy for the Government of the United States of America.
USAPonzi is "The Biggest Ponzi Scheme on the Planet"
Because of this corrupt and fraudulent fiscal policy, I predict that we are headed toward a global financial system meltdown because the U.S. Government will be forced to declare bankruptcy.
Financial data sourced from usdebtclock.org Nov 22, 2015.
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