Healthcare Cost Escalation!
June 28, 2017 Emailed to the WSJ/NYT/DMN on June 28, 2017
The following is an Op-Ed to "The Wall Street Journal", "The New York Times", and "The Dallas Morning News" that explains how U.S. Government fiscal and accounting fraud has caused healthcare cost in the United States to escalate!
The "news media" has an ethical responsibility to inform the general public of how the U.S. Government is committing fiscal and accounting fraud to cheat the general public and the rest of the planet so they can "feather their own nests" and "dramatically feather the nests of their upper-class friends".
Healthcare Cost Escalation!
June 28, 2017
The fiscal policy of the U.S. Government must be managed, controlled, assessed, and reported with proper GAAP Accounting! This is not true today!
The U.S. Government is in the process of fraudulently borrowing an infinite amount of money from the future Americans so that it can "pay for" unlimited healthcare benefits!
Healthcare costs in the United States are continuing to escalate because the U.S. Government is using fraudulent accounting! Because the U.S. Government is not using Generally Accepted Accounting Principles (GAAP Accounting), the U.S. Government is operating a massive ($106.6 Trillion) Ponzi scheme that I have named USAPonzi. This Ponzi scheme has deferred $106.6 Trillion of public liabilities (US Unfunded Liabilities (GAAP)) to future Americans by undertaxing the current Americans by that same amount.
The U.S. Government is borrowing imaginary-counterfeit money from the future Americans to pay current period expenses and to pay for future benefit promises. The U.S. Government is "paying for" healthcare benefits with imaginary-counterfeit money that is being fraudulently borrowed from the future Americans with GAAP basis deficit spending. The more money the U.S. Government borrows from the future Americans, the more the U.S. Government can pay for healthcare benefits. So far the U.S. Government has borrowed $106.6 Trillion from the future Americans. The U.S. Government is creating money out of "thin air" that it is using to "pay for" healthcare and other U.S. Government benefits.
The fundamental problem is that the current U.S. Government fiscal policy is not using GAAP Accounting. GAAP Accounting, sometimes called Accrual Accounting, is required to assess what level of future benefit promises are affordable and sustainable relative to the U.S. taxpayer's ability to pay. GAAP Accounting dictates that the U.S. Government must accrue the funds that are required to pay the anticipated future benefits as soon as the benefit recipient becomes eligible for that benefit.
Because the U.S. Government is "paying for" healthcare with imaginary-counterfeit money that is being fraudulently borrowed from the future Americans and because the amount of this imaginary-counterfeit money is increasing toward infinity, the U.S. Government will eventually be able to pay an infinite amount for healthcare services. Healthcare costs will continue to increase at an exponentially expanding rate as long as the U.S. Government continues to operate with the Ponzi scheme fiscal policy that I call USAPonzi!
Balancing the GAAP basis budget means that the Government has properly accrued for future benefit promises that the U.S. Government has made. Currently the U.S. Government budget is out of balance by $106.6 Trillion. With the current Cash Accounting system, we do not have proper visibility into the future costs that the U.S. Government will incur. The U.S. Government is making defined benefit promises without constraining these promises with its ability to pay for them.
If someone needs a medical service, procedure, or medication, the U.S. Government just pays the cost without consideration for whether or not it is affordable. If someone needs or wants a surgery or a medical test the U.S. Government just pays for it with money that it is borrowing from the future Americans. With no accurate correlation and control between cost and affordability, healthcare costs will grow essentially without limit. With the current fiscal policy, the U.S. Government just defers the excess current period costs and the anticipated future period costs to the future Americans. Currently these deferred costs/liabilities are assessed by GAAP Accounting at $106.6 Trillion.
Because we are paying for our health care with this imaginary-counterfeit money that we are fraudulently borrowing from the future Americans, we are permitting healthcare providers to charge whatever they feel like they can get away with for their products and services. Proper GAAP Accounting dictates that the U.S. Government accrue the money in advance to pay these future health care benefits. The current Ponzi scheme fiscal policy makes the basic assumption that the future Americans will be able to pay these benefits, as they come due, whatever the cost might be when the health care services are delivered.
This means that the U.S. Government is making promises to pay unlimited healthcare benefits without regard to the future Americans ability to pay for these benefits. The U.S. Government has already made $86.6 Trillion of future benefit promises that have not been funded!
This is why the U.S. Government must adopt GAAP Accounting and commit to balanced GAAP basis budget! This budgeting and accounting process will limit the cost of healthcare promises to what U.S. taxpayers can afford to pay!
With GAAP Accounting, I can assure you that the healthcare benefits promised by the U.S. Government will be dramatically, and I do mean dramatically, less than what the U.S. Government is currently promising!
When healthcare promises are being paid with imaginary-counterfeit money that is being borrowed from the future Americans, the cost of the promised healthcare benefits will continue to increase without bound. The future Americans have an unlimited supply of imaginary-counterfeit money so healthcare promises can expand without limit.
The current approach for setting an affordable healthcare benefit plan is total folly. The U.S. Government must adopt GAAP Accounting in order to properly assess what benefits are affordable and sustainable.
The U.S. Government officials will not like a plan that is constrained the U.S. Government's ability to pay and the U.S. general public will be irate with this GAAP Accounting constrained plan. Healthcare benefits will be dramatically less than currently promised! The fact is, we cannot offer a blue ribbon health care plan and we cannot offer a blue ribbon Social Security plan. We just do not have the money. The U.S. Government must take a hard nosed approach to setting its fiscal policy and only spend and commit to spend what it can pay for.
The cost of healthcare will be dramatically constrained with GAAP Accounting and a balanced budget. Many high cost services, procedures, and medications that are now routinely offered will have to be eliminated. The cost of some of these healthcare services may be reduced to an affordable level if the free market can support that service at a reduced cost. We must accept the fact that some of the medical miracles that are currently possible are not services that can be routinely paid for by the U.S. Government. I know that sounds heartless but it is an economic fact that we must all come to accept.
That is why defined contribution plans must become the guideline rather than the current defined benefit plans. Open ended benefit promises are just not possible within an affordable and sustainable fiscal policy.
But this is why healthcare costs are escalating, we are "paying for" healthcare services and procedures with imaginary-counterfeit money that knows no bounds rather than with real money that the U.S. taxpayers can actually pay. The U.S. Government is borrowing more imaginary-counterfeit money every day to "pay for" the unbounded benefit promises that the U.S. Government is making.
U.S. Government fiscal and accounting fraud is causing the cost of healthcare to escalate. Operating with GAAP Accounting and a balanced GAAP basis budget will limit the cost of healthcare to a level that is affordable within an equitable and sustainable fiscal policy.
|Cash Deficit in FY2017
|GAAP Deficit in FY2017
|US Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|Total National Assets
Source: www.usdebtclock.org Jun 28, 2017
This U.S. Government fraud can only be equitably eliminated by the adoption of GAAP Accounting and a commitment to a balanced GAAP basis budget by the U.S. Government.
I have published a website www.usaponzi.net that explains how this fraud works to create a massive global wealth and income gap between the haves and the have-nots and to create false wealth and prosperity for the current Americans. The www.usaponzi.net website is an introduction to my more detailed website www.usaponzi.com and my books "USAPonzi" (Nov 22, 2015) and "USAPonzi2" (May 1, 2017) which are available on Amazon to better explain this fraud/Ponzi scheme.
This is the biggest ($106.6 Trillion) financial fraud ever perpetrated, I call it "USAPonzi: The Ultimate Government Fraud" and it is "The Biggest Ponzi Scheme on the Planet"!
John W. White