USAPonzi-The Great American Fraud

                                                 Copyright Declaration       PEMMA-Planet Earth Man-Made Apocalypse    John W. White   March 29, 2013

Urbanization-A Byproduct of USAPonzi
November 18, 2016

the act or fact of urbanizing, or taking on the characteristics of a city (

The U.S. Government fiscal and accounting fraud, that I call USAPonzi, is producing imaginary-counterfeit money which is causing the wealth gap, inflation, offshoring, under employment, and urbanization.

The U.S. Government is producing imaginary-counterfeit money by borrowing it from the future Americans. The U.S. Government is using improper accounting to conceal this fraud by assessing and reporting its financial condition with Cash Accounting when it should be using GAAP Accounting.

The U.S. Government is operating with an unbalanced budget and is "Cooking the Books"! The U.S. Government spends more than its income and it "spends" a lot more than it is reporting to the public, by spending on a GAAP basis and reporting on a Cash basis. Spending more than your income is called deficit spending and the future Americans are left with the bill for this deficit spending.

The following table quantifies on a macro level how this scheme works. The U.S. Government reports a Cash Deficit of $0.59T, when proper GAAP Accounting assesses and reports a GAAP Deficit of $5.67T, which undertaxes the current Americans by $5.67T creating imaginary-counterfeit money of $5.67T that ends up in the pockets of the current Americans but primarily in the pockets of the U.S. upper class. The U.S. Government is borrowing fake money, I call it imaginary-counterfeit money, from the future Americans and giving it to the current Americans. As of November 18, 2016, the U.S. Government has created $104.2 Trillion of imaginary-counterfeit money.

Most of this imaginary-counterfeit money ends up in the pockets of the U.S. upper class creating the Wealth Gap (See Creating the Wealth Gap). Introducing imaginary-counterfeit money ($5.67 Trillion in FY2017) into the global economy and financial system has created inflation of nominally 5% per year (See Inflation-A Byproduct of USAPonzi). This inflation of asset and consumer prices has tended to cause wage inflation for American workers relative to the rest of the planet which has caused offshoring to take advantage of lower cost labor (See Offshoring-A Byproduct of USAPonzi).

The automation of farming has also decreased the number of rural jobs to the point that now only 2% of the U.S. population is involved in farming when as recently as the "The Great Depression" in 1929 25% of the population was directly related to farming. The offshoring of jobs has further reduced the percentage of the population that would be productively clustered around job activity that requires labor to produce products.

National Debt  $19.8 Trillion 
US Federal Tax Revenue (Cash)  $3.29 Trillion 
US Federal Spending (Cash)  $3.88 Trillion 
Cash Deficit in FY2017  $0.59 Trillion 
US Federal Spending (GAAP)  $8.96 Trillion 
GAAP Deficit in FY2017  $5.67 Trillion 
US Unfunded Future Liabilities  $84.3 Trillion 
US Unfunded Liabilities (GAAP)  $104.2 Trillion 
Imaginary-Counterfeit Money  $104.2 Trillion 
Total National Assets  $124.0 Trillion 

Source: November 18, 2016

As a result, more and more people are moving into major cities that offer high skilled jobs that do not require significant space for performing the required tasks. But what is the ultimate value that these jobs are producing? Most of these jobs are white-collar jobs that are providing professional services which are meaningful and in many cases, critical but they are not producing products and assets that have intrinsic value to the global economy.

I contend that most of these urban jobs appear to be of value and are high-paying because the U.S. Government is producing imaginary-counterfeit money at the rate of its GAAP basis deficit spending which is now $5.67 Trillion in FY2017. The U.S. Government has created $104.2 Trillion of this imaginary-counterfeit money which provides an artificial money supply for the financial services businesses like banking, investing, real estate, and insurance to manage and manipulate. This imaginary-counterfeit money is also paying for medical, legal, and consulting services that can best be provided in highly concentrated population centers. This imaginary-counterfeit money is also providing the funds for the supporting the hotel, restaurant, travel, and entertainment businesses that can most profitably be conducted in these highly concentrated urban environments.

is producing this ever-increasing supply of imaginary-counterfeit money, by borrowing it from the future Americans, which is appearing to create high paying jobs when in fact the number of real product creating jobs in America is converging toward zero as the amount of imaginary-counterfeit money is expanding toward infinity. Ironically, the more imaginary-counterfeit money the U.S. Government creates, the higher the pay becomes for these white-collar jobs that are creating no "real" value to the global economy and the more imaginary-counterfeit money the U.S. Government creates the more the number of product producing jobs decreases because the U.S. labor cost inflates to the point that these jobs get offshored.

The U.S. economy, and in fact the global economy, is surviving on the GAAP basis deficit spending of USAPonzi that is borrowing imaginary-counterfeit money from the future Americans which in turn is falsely producing high paying white-collar jobs which causes urbanization and is destroying the real value producing blue-collar jobs by causing offshoring which is decimating the middle class job opportunities in the United States.

Every year the U.S. Government borrows more money from the future Americans!

Every year the U.S. Government borrows more imaginary-counterfeit money ($5.67 Trillion in FY2017) from the future Americans so that it can overpay itself and make its upper class white-collar friends richer and richer so that they can pay higher prices for housing in the city and can live a more opulent lifestyle while the blue-collar workers get paid an hourly wage that does escalate at the same pace as the inflation induced rate of USAPonzi so they cannot afford housing in the city and cannot pay the price for the consumer products that can be readily paid for by the white-collar workers that are getting faux wealthy with the imaginary-counterfeit money that USAPonzi is borrowing from the future Americans.

is causing the rich to get richer and richer with money that is less and less valuable and the poor are getting poorer and poorer on a relative basis because hourly pay does not escalate directly with the USAPonzi asset price inflator. The white-collar workers are becoming infinitely richer and richer while the blue-collar workers cannot pay for their housing in these highly urbanized areas and they cannot pay the escalating prices not only for housing but also for energy, transportation, food, clothing, entertainment etc. The fraudulent fiscal policy and accounting system of USAPonzi is creating a massive economic divide between the haves and the have-nots.

The U.S. Government has got to start telling the financial truth to stop this downward spiral and chain reaction. It will not be pleasant but we must all face reality.

This will end when investors refuse to buy more of this worthless debt from the U.S. Government. None of the National Debt can ever be paid back with the current fiscal policy and accounting fraud because the U.S. Government is spending nearly 3 times (see calculation below) its income today and the U.S. Government spending obligations are accelerating.

The U.S. Government has borrowed $104.2 Trillion of imaginary-counterfeit money from the future Americans, which is 31 times its income of $3.29 Trillion ($104.2T/$3.29T=31.6) and is spending $8.96 Trillion in FY2017, which is nearly 3 times its income ($8.96T/$3.29T=2.73). The U.S. Government has made financial commitments it cannot possibly keep and is therefore technically bankrupt (See The Bankruptcy of the United States).

This fraud is explained in CliffsNotes format (USAPonzi CliffsNotes) and is also 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
($104.2 Trillion) financial fraud ever perpetrated; I call it “USAPonzi: The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”.