US Wealth Gap Smell-Test 200212
February 12, 2020
Emailed to United Nations, Fed Chair Jay Powell, Minneapolis Fed President Neel Kashkari, Dallas Fed President Robert Kaplan, Congressman Van Taylor, Congressman Colin Allred, Senator John Cornyn, Senator Ted Cruz, The U.S. SEC, NYT/WSJ/WP/CNBC/DMN on 2/13/20
Does the Wealth Gap in America pass the “smell test”?
smell-test. Noun. (plural smell tests) (idiomatic) An informal method for determining whether something is authentic, credible, or ethical, by using one's common sense or sense of propriety. An inspection of an object using the sense of smell, as for freshness of food.
The following analysis gives a macro-assessment of how the use of fraudulent accounting, I call it USAPonzi, by the U.S. Government has created the Wealth and Income Gap in the United States and why this Wealth Gap will continue to expand until USAPonzi implodes!
Simply stated the U.S. upper class is getting rich because they are being dramatically undertaxed because the U.S. Government is not operating its fiscal policy with proper and Generally Accepted Accounting Principles (GAAP Accounting). The U.S. Government is incurring public liabilities (called US Unfunded Liabilities (GAAP) on www.usdebtclock.org) with GAAP basis deficit spending and the U.S. upper class is gaining wealth, I call it imaginary-counterfeit money, because they are being undertaxed.
The U.S. Government is borrowing imaginary-counterfeit money from the future Americans and giving it to the U.S. upper class.
This accounting fraud started in FY1969 and my analysis actually starts in 1970 therefore my analysis is not precise hence the term “smell-test”. Further, the U.S. Government does not officially report its financial condition on a GAAP basis and www.usdebtclock.org did not start reporting its estimates on a GAAP basis until 2Q 2015.
With those caveats, let me proceed with my analysis.
One of the neat things that usdebtclock.org has done is a “debt clock time machine” that shows history and a 4 year forward looking projection of key financial data on this same day in years past and 4 years in the future. The following table shows financial data for Feb 12, 2016 and Feb 12, 2020. The history data for GAAP Deficit and US Unfunded Liabilities (GAAP) are not included in this “time machine” data however, I collected this data from usdebtclock.org in my Feb 1, 2016 commentary How much money is $2.5 Trillion to fill out this table!
||Feb 12, 2016
||Feb 12, 2020
|Cash Deficit in FY2020
|GAAP Deficit in FY2020
|US Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|Total National Assets
|| $123.8 T
The following chart shows how US Wealth (called Total National Assets on usdebtclock.org) has been increasing over the last 50 years because the U.S. upper class is being undertaxed. Again we did not have GAAP basis estimates until 2016 but this chart shows how much of the US Wealth has been gained because the U.S. upper class has been undertaxed (called US Unfunded Liabilities (GAAP)) on usdebtclock.org.
The U.S. upper class is getting richer and richer because the U.S. Government is deferring more and more public liabilities to the future Americans! USAPonzi, if it is allowed to continue, will create infinite imaginary-counterfeit wealth (imaginary-counterfeit money = US Unfunded Liabilities (GAAP)) and give it to the U.S. upper class.
The U.S. upper class is getting richer, the U.S. economy is getting stronger, the stock market is going higher, the U.S. is appearing to get richer and more prosperous, and the US Wealth Gap is getting wider, because the U.S. Government is running a Ponzi scheme that is using fraudulent accounting to stealthily defer public liabilities to the future Americans with GAAP basis deficit spending! The U.S. Government is borrowing money, I call it imaginary-counterfeit money, from the future Americans, money the future Americans do not have, and giving it to the U.S. upper class by undertaxing them!
Unfortunately, this imaginary-counterfeit money will evaporate when USAPonzi implodes!
So how do I think the US Wealth Gap came out on this “smell test”?
Is it authentic?
Yes, I think it is genuine and of undisputed origin. It is well recognized by the U.S. population that the Wealth Gap exists and is continuing to expand. I also contend that the undisputed origin of the Wealth Gap is a fiscal and accounting fraud caused by the U.S. Government not operating its fiscal policy with proper GAAP Accounting!
Is it credible?
The Wealth Gap is able to be believed, and almost all of the U.S. population is of the opinion that the U.S. upper class is continuing to get richer and that the Wealth Gap is continuing to widen!
Is it ethical?
I contend that it is not ethical because the Wealth Gap is fraudulently enriching the rich and cheating the unrich! I contend that the Wealth Gap exists and is widening because the U.S. Government is committing a criminal act by not using GAAP Accounting to accrue the money to fund the benefit promises that the U.S. Government is making to the U.S. general public!
I have written two websites (usaponzi.net and usaponzi.com) and six books (the latest is USAPonziC) which are available on Amazon that explain how this U.S. Government fiscal and accounting fraud got started, the problems it is causing, and what I predict will happen when USAPonzi implodes!
This is the biggest ($128.1 Trillion) financial fraud ever perpetrated, I call it “USAPonzi: The Great American Fraud” and “The Biggest Ponzi Scheme on the Planet”.
John W White