Chapter 19 Why Pro Athletes make $Millions
November 22, 2015
Did you ever wonder why pro athletes can now make $Millions playing their favorite game? Pro athletes, entertainers, financial advisors, hedge fund managers, business executives, and many others are making $Millions and even $Billions because of U.S. Government accounting fraud and corruption. The U.S. Government has been running a massive Ponzi scheme (USAPonzi) for more than 47 years that is stimulating the economy and producing massive amounts of counterfeit money.
This Ponzi scheme is caused by the U.S. Government using Cash Accounting rather than the proper GAAP (Accrual) Accounting. By using Cash Accounting the U.S. Government is only assessing and reporting the taxes that are required to meet current year expenditures and is not accruing for the future year financial commitments. USAPonzi therefore produces this counterfeit money with GAAP basis deficit spending that is projected to be $5.9 Trillion in FY2016 and a cumulative total of $99.8 Trillion (US Unfunded Liabilities (GAAP)) since FY1969 when USAPonzi was launched.
The U.S. Government produces this counterfeit money by undertaxing (GAAP basis) the current U.S. taxpayers and deferring these liabilities to the future U.S. taxpayers. This counterfeit money gets introduced into the U.S. and Global economy by the U.S. Government overpaying social benefits, overpaying Government workers and Government related businesses, and undertaxing U.S. citizens and businesses. Essentially every U.S. citizen and business benefits from this fraud by either being overpaid or undertaxed. But the future U.S. taxpayers can never pay this ballooning tax bill that now stands at $99.8 Trillion so this money is therefore counterfeit money (see Creating Counterfeit Wealth).
The U.S. citizens and businesses, as a group, have $5.9 Trillion of new counterfeit money to spend or invest this year (FY2016) over and above their earned income and products produced. Therefore they can afford to buy event tickets, team paraphernalia, and TV subscriptions since they have this "free" counterfeit money to spend. $5.9 Trillion of Deficit Spending means that, on average, the U.S. Government is giving each U.S. citizen $18,323 of counterfeit money ($5.9T/322 million citizens = $18,323) this year. While this counterfeit money is not equitably distributed to all U.S. citizens, it does provide ample funds for supporting the professional sports industry as well as a lot of other consumer spending. These pro athletes are, in most cases, members of the upper class so they also get the further benefit of the undertaxing of USAPonzi.
This is why Arnold Palmer, Jack Nicklaus, Mickey Mantle, Jim Brown, Joe Namath, Bill Russell, Wilt Chamberlain, etc. have lamented that they were born too soon. They were born too soon because the amount of counterfeit money that USAPonzi is producing each year is growing exponentially and they were playing their sport before USAPonzi was launched or during the very early stages of this Ponzi scheme. People comment frequently that the current athletes should thank their predecessors for creating this lucrative sports and entertainment industry but they really should be thanking LBJ and Lee Harvey Oswald for setting up this corrupt and fraudulent accounting system and fiscal policy that has so far produced $99.8 Trillion of counterfeit money (see The Infinite Counterfeit Money Machine).
Each year the GAAP Deficit tends to be larger than the previous year because the U.S. Government must pay "virtual interest" on the Unfunded Future Liabilities (these liabilities are measured at present value) that are included in "US Unfunded Liabilities (GAAP)" (now $99.8 Trillion) as posted on usdebtclock.org Nov 22, 2015. So each year the U.S. citizens and businesses tend to be undertaxed more than the year before therefore they have more counterfeit money to spend and as a result the pro athletes appear to get a nice raise every year. By continuing this Ponzi scheme, these pro athletes would, in theory, have incomes that approach infinity. Nice work if you are really good at your game and if the U.S. Government will continue to play its fraudulent little financial game.
Ponzi schemes are a great thing for the early participants; UNTIL THEY IMPLODE.
When USAPonzi implodes, the era of multi-$million per year pro athletes (and entertainers, financial advisors, hedge fund managers, etc) will come to an abrupt end and the value of the various sports franchises will plummet. These pro athletes are being paid with counterfeit money that the U.S. Government is creating out of "thin air" with GAAP basis deficit spending. This is why professional golf tournaments can pay such huge purses to the top performing players every week and still give $Millions to charity. It is all done with counterfeit money compliments of LBJ and the other scoundrels within the U.S. Government.
The U.S. Government is filled with "Scoundrels, Liars, and Cheaters" that are willing to continue this corrupt and fraudulent fiscal policy!
And all because Lee Harvey Oswald assassinated JFK (See The Oswald Financial Bubble).
Financial data sourced from usdebtclock.org Nov 22, 2015.
Continue to: 20 U.S. Total Financial Leverage 4.2X 1929 Table of Contents