December 7,  2013

Open Letter to:
   Tom Coburn              U.S. Senator (R) Oklahoma
     Erskine Bowles         Co-Chair, National Commission on Fiscal Responsibility and Reform
     Alan Simpson           Co-Chair, National Commission on Fiscal Responsibility and Reform
     David A. Vaudt          Chairman Government Accounting Standards Board
     Jim Cramer                Television Personality-CNBC
     David Faber               Television Personality-CNBC
     Joe Kernen                Television Personality-CNBC
     Larry Kudlow              Television Personality-CNBC
     Steve Liesman           Television Personality-CNBC
     Rick Santelli               Television Personality-CNBC
     Andrew Ross Sorkin  Television Personality-CNBC
     Neil Cavuto                Televison Personality-FOX Business
     Lou Dobbs                 Television Personality-FOX Business
     Rush Limbaugh          Radio Personality
     Doug Casey               Economic Newsletter-CaseyResearch.com
     George Friedman       Global Intelligence Newsletter-Stratfor.com
     Michael Tanner          Senior Fellow-Cato Institute
     John Mauldin              Financial Newsletter-MauldinEconomics.com
     John Williams             Financial Newsletter-ShadowStats.com
     Robert Shiller              Nobel Prize Winning Economist
     Paul Krugman             Nobel Prize Winning Economist
     Jeremy Siegel             Economics Professor-Wharton
     Laurence Kotlikoff       Economics Professor-Boston University
     Gerard Baker              Editor-in-Chief Wall Street Journal    
     Scott Burns                 Newspaper Columnist-Dallas Morning News
     Will Deener                 Newspaper Columnist-Dallas Morning News
 

 The U.S. Federal Government has been using fraudulent accounting for 45 years (since fiscal year 1969) and as a result is running 

"The Biggest Ponzi Scheme on the Planet" (USAPonzi). 

This fraud would be exposed immediately if the U. S. Federal Government would follow it's own rules and report it's financial condition using GAAP accounting.

There is now an effort underway to bring a bi-partisan bill (the INFORM ACT) to congress that essentially requires that the Federal Government prepare GAAP-basis financial statements annually.

The following was taken from the INFORM ACT website:

The INFORM ACT is a bi-partisan bill introduced, in the Senate, by Senator Kaine (Democrat from Virginia) and Senator Thune (Republican from South Dakota) and co-sponsored by Senator Coons (Democrat from Delaware) and Senator Portman (Republican from Ohio).  Congressman Cooper (Democrat from Tennessee) and Congressman Shock (Republican from Illinois) have introduced the bill in the House.

The INFORM ACT requires the Congressional Budget Office (CBO), the General Accountability Office (GAO), and the Office of Management and Budget (OMB) to do fiscal gap and generational accounting on an annual basis to assess the sustainability of fiscal policy and measure, on a comprehensive basis, the fiscal obligations facing our children and future generations. The ACT also permits Congress to request fiscal gap accounting and generational accounting to evaluate major proposed changes to fiscal policy.

(see www.informact.org for further details).

This bill has been endorsed by over 1000 economists, including 15 Nobel Laureates in Economics.

Congress must take action quickly to correct this fraudulent accounting.  I know full well that it will create a fiscal crisis but the longer we wait the more traumatic that crisis will be. 

I have created a website (www.usaponzi.com) that analyzes this Ponzi scheme and projects what impact the implosion of USAPonzi might have on the U.S. and World economy.

John W. White Plano, TX