Wednesday, December 06, 2017

Empty Your Pockets! There Are Trillions Of Dollars Missing!

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Dr. Mark Skidmore – $21 Trillion Missing from US Federal Budget
Published on Dec 2, 2017
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Catherine Austin Fitts – We Need Our $40 Trillion In Stolen Cash Back
Greg Hunter
Published on Jul 18, 2017
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2.3 TRillion Dollars Missing from DOD Day before 911 2001 Rumsfeld LIES
epicbudscom
Published o Missingn Jul 15, 2013
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9 TRILLION Dollars Missing from Federal Reserve!
amy2x
Published on Dec 11, 2010
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$10 Trillion Missing From Pentagon And No One — Not Even the DoD — Knows Where It Is
March 27, 2017
Over a mere two decades, the Pentagon lost track of a mind-numbing $10 trillion — that’s trillion, with a fat, taxpayer-funded “T” — and no one, not even the Department of Defense, knows where it went or on what it was spent.
Even though audits of all federal agencies became mandatory in 1996, the Pentagon has apparently made itself an exception, and — fully 20 years later — stands obstinately orotund in never having complied.
Because, as defense officials insist — summoning their best impudent adolescent — an audit would take too long and, unironically, cost too much.
“Over the last 20 years, the Pentagon has broken every promise to Congress about when an audit would be completed,” Rafael DeGennaro, director of Audit the Pentagontold The Guardian recently. “Meanwhile, Congress has more than doubled the Pentagon’s budget.”
Worse, President Trump’s newly-proposed budget seeks to toss an additional $54 billion into the evidently bottomless pit that is the U.S. military  — more for interventionist policy, more for resource-plundering, more for proxy fighting, and, of course, more for jets and drones to drop more bombs suspiciously often on civilians.
Maybe.
Because, without the mandated audit, the DoD could be purchasing damned near anything, at any cost, and use, or give, it — to anyone, for any reason.
Officials with the Government Accountability Office and Office of the Inspector General have catalogued 
egregious financial disparities at the Pentagon for years — yet the Defense Department grouses the cost and energy necessary to perform an audit in compliance with the law makes it untenable.
Astonishingly, the Pentagon’s own watchdog tacitly approves this technically-illegal workaround — and the legally-gray and, yes, literally, on-the-books-corrupt practices in tandem — to what would incontrovertibly be a most unpleasant audit, indeed.
Take the following of myriad examples, called “plugging,” for which Pentagon bookkeepers are not only encouraged to conjure figures from thin air, but, in many cases, they would be physically and administratively incapable of performing the job without doing so — without ever having faced consequences for this brazen cooking of books.
To wit, Reuters reported the results of an investigation into Defense’s magical number-crunching — well over three years ago, on November 18, 2013 — detailing the illicit tasks of 15-year employee, “Linda Woodford [who] spent the last 15 years of her career inserting phony numbers in the U.S. Department of Defense’s accounts.”
Woodford, who has since retired, and others like her, act as individual pieces in the amassing chewed gum only appearing to plug a damning mishandling of funds pilfered from the American people to fund wars overseas for resources in the name of U.S. defense.
“Every month until she retired in 2011,” Scot J. Paltrow wrote for Reuters, “she says, the day came when the Navy would start dumping numbers on the Cleveland, Ohio, office of the Defense Finance and Accounting Service, the Pentagon’s main accounting agency. Using the data they received, Woodford and her fellow DFAS accountants there set about preparing monthly reports to square the Navy’s books with the U.S. Treasury’s – a balancing-the-checkbook maneuver required of all the military services and other Pentagon agencies.
“And every month, they encountered the same problem. Numbers were missing. Numbers were clearly wrong. Numbers came with no explanation of how the money had been spent or which congressional appropriation it came from. ‘A lot of times there were issues of numbers being inaccurate,’ Woodford says. ‘We didn’t have the detail … for a lot of it.’”
Where a number of disparities could be corrected through hurried communications, a great deal — thousands each month, for each person on the task — required fictitious figures. Murkily deemed, “unsubstantiated change actions” — tersely termed, “plugs” — this artificial fix forcing records into an unnatural alignment is common practice at the Pentagon.
Beyond bogus books, the Pentagon likely flushed that $10 trillion in taxes down the toilet of inanity that is unchecked purchasing by inept staff who must be devoid of prior experience in the field of defense.
This tax robbery would eclipse the palatability of blood money — if it weren’t also being wasted on items such as the 7,437 extraneous Humvee front suspensions — purchased in surplus over the inexplicable 14-year supply of 15,000 unnecessary Humvee front suspensions already gathering warehouse-shelf dust.
And there are three items of note on this particular example, of many:
One, the U.S. Department of Defense considers 
inventory surpassing a three-year supply, “excessive.”
Two, the stupefying additional seven-thousand-something front suspensions arrived, as ordered, during a period of demand reduced by half.
Three, scores of additional items — mostly unaccounted for in inventory — sit untouched and aging in storage, growing not only incapable of being used, but too dangerous to be properly disposed of safely.
Worse, contractors greedily sink hands into lucrative contracts — with all the same supply-based waste at every level, from the abject disaster that is the $1 trillion F-35 fighter program, to the $8,123.50 shelled out for Bell Helicopter Textron helicopter gears with a price tag of $445.06, to the DoD settlement with Boeing for overcharges of a whopping $13.7 million.
The latter included a charge to the Pentagon of $2,286 — spent for an aluminum pin ordinarily costing just $10.
Considering all the cooking of numbers apparently fueled with burning money stateside, you would think Defense channeled its efforts into becoming a paragon of economic efficiency when the military defends the United States. Overseas. From terrorism. And from terrorists. And terrorist-supporting nations.
But this is the Pentagon — and a trickle of telling headlines regularly grace the news, each evincing yet another missing shipment of weapons, unknown allocation of funds, or retrieval of various U.S.-made arms and munitions by some terrorist group deemed politically less acceptable than others by officials naming pawns.
In fact, so many American weapons and supplies lost by the DoD and CIA become the property of actual terrorists — who then use them sadistically against civilians and strategically against our proxies and theirs — it would be negligent not to describe the phenomenon as pattern, whether or not intent exists behind it.
Since practically the moment of nationalist President Donald Trump’s inauguration, the ceaselessly belligerent of the military-industrial machine have been granted a new head cheerleader with a bullhorn so powerful as to render calls to apply the brakes effectively, if not unpatriotically, moot.
Sans any optimistic indication thus far lacking from the Trump administration it would reverse course and move toward, rather than against, transparency, the painstaking audit imperative to DoD accountability remains only a theory — while the Pentagon’s $10 trillion sits as the world’s largest elephant in apathetic America’s living room.
For now, we know generally where our money is going: war. Which aspect of war — compared to the power of your outrage about its callous and reckless execution in your name — matters little.
Claire Bernish writes for TheFreeThoughtProject.com, where this article first appeared.
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U.S. Army fudged its accounts by trillions of dollars, auditor finds
Scot J. Paltrow
August 19, 2016
NEW YORK (Reuters) - The United States Army’s finances are so jumbled it had to make trillions of dollars of improper accounting adjustments to create an illusion that its books are balanced.
The Defense Department’s Inspector General, in a June report, said the Army made $2.8 trillion in wrongful adjustments to accounting entries in one quarter alone in 2015, and $6.5 trillion for the year. Yet the Army lacked receipts and invoices to support those numbers or simply made them up.
As a result, the Army’s financial statements for 2015 were “materially misstated,” the report concluded. The “forced” adjustments rendered the statements useless because “DoD and Army managers could not rely on the data in their accounting systems when making management and resource decisions.”
Disclosure of the Army’s manipulation of numbers is the latest example of the severe accounting problems plaguing the Defense Department for decades.
The report affirms a 2013 Reuters series revealing how the Defense Department falsified accounting on a large scale as it scrambled to close its books. As a result, there has been no way to know how the Defense Department – far and away the biggest chunk of Congress’ annual budget – spends the public’s money.
The new report focused on the Army’s General Fund, the bigger of its two main accounts, with assets of $282.6 billion in 2015. The Army lost or didn’t keep required data, and much of the data it had was inaccurate, the IG said.
“Where is the money going? Nobody knows,” said Franklin Spinney, a retired military analyst for the Pentagon and critic of Defense Department planning.
The significance of the accounting problem goes beyond mere concern for balancing books, Spinney said. Both presidential candidates have called for increasing defense spending amid current global tension.
An accurate accounting could reveal deeper problems in how the Defense Department spends its money. Its 2016 budget is $573 billion, more than half of the annual budget appropriated by Congress.
The Army account’s errors will likely carry consequences for the entire Defense Department.
Congress set a September 30, 2017 deadline for the department to be prepared to undergo an audit. The Army accounting problems raise doubts about whether it can meet the deadline – a black mark for Defense, as every other federal agency undergoes an audit annually.
For years, the Inspector General – the Defense Department’s official auditor – has inserted a disclaimer on all military annual reports. The accounting is so unreliable that “the basic financial statements may have undetected misstatements that are both material and pervasive.”
In an e-mailed statement, a spokesman said the Army “remains committed to asserting audit readiness” by the deadline and is taking steps to root out the problems.
The spokesman downplayed the significance of the improper changes, which he said net out to $62.4 billion. “Though there is a high number of adjustments, we believe the financial statement information is more accurate than implied in this report,” he said.
“THE GRAND PLUG”
Jack Armstrong, a former Defense Inspector General official in charge of auditing the Army General Fund, said the same type of unjustified changes to Army financial statements already were being made when he retired in 2010.
The Army issues two types of reports – a budget report and a financial one. The budget one was completed first. Armstrong said he believes fudged numbers were inserted into the financial report to make the numbers match.
“They don’t know what the heck the balances should be,” Armstrong said.
Some employees of the Defense Finance and Accounting Services (DFAS), which handles a wide range of Defense Department accounting services, referred sardonically to preparation of the Army’s year-end statements as “the grand plug,” Armstrong said. “Plug” is accounting jargon for inserting made-up numbers.
At first glance adjustments totaling trillions may seem impossible. The amounts dwarf the Defense Department’s entire budget. Making changes to one account also require making changes to multiple levels of sub-accounts, however. That created a domino effect where, essentially, falsifications kept falling down the line. In many instances this daisy-chain was repeated multiple times for the same accounting item.
The IG report also blamed DFAS, saying it too made unjustified changes to numbers. For example, two DFAS computer systems showed different values of supplies for missiles and ammunition, the report noted – but rather than solving the disparity, DFAS personnel inserted a false “correction” to make the numbers match.
DFAS also could not make accurate year-end Army financial statements because more than 16,000 financial data files had vanished from its computer system. Faulty computer programming and employees’ inability to detect the flaw were at fault, the IG said.
DFAS is studying the report “and has no comment at this time,” a spokesman said.

Edited by Ronnie Greene.
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$6.5 Trillion Missing From Defense Department
'Fact the Pentagon can't account for how it spent money reveals a potentially far greater problem than theft'
Bob Unruh
Published: 08/17/2016
This drug lord’s cache was estimated at $220 million, meaning the Defense Department can’t account for more than 29,000 stacks like this.
A relatively obscure audit report from the Office of Inspector General of the United States Department of Defense suddenly is getting a lot of attention for what it apparently reveals: The Pentagon can’t account for $6.5 trillion.
At ArmstrongEconomics, the blog reported, “Once again, the office of inspector general has come up with a huge hole in the Department of Defense with a missing $6.5 trillion.”
The day before 9/11, Defense Secretary Donald Rumsfeld admitted $2.3 trillion was missing from the Defense Department budget, noted the blog..
That figure has now grown to $6.5 trillion and counting.
To get a handle on its magnitude, a pile of $100 bills in that amount would be enough to make every man, woman and child in the states of Colorado, Wyoming and South Dakota an instant millionaire.
The report, “Army General Fund Adjustments Not Adequately Documented or Supported,” started out with the goal of finding out whether the changes in the Army General Fund data during Fiscal Year 2015 to financial statements were “adequately documented and supported.”
The report concluded “the office of the assistant secretary of the army (Financial Management & Comptroller) (OASA[FM&C]) and the Defense Finance and Accounting Service Indianapolis (DFAS Indianapolis) did not adequately support $2.8 trillion in third quarter journal voucher (JV) adjustments and $6.5 trillion in yearend JV adjustments occurred because OASA(FM&C) and DFAS Indianapolis did not prioritize correcting the system deficiencies that caused errors resulting in JV adjustments, and did not provide sufficient guidance for supporting system-generated adjustments.”
Further, there was no indication of why 16,513 of 1.3 million records were removed from the budget system during the third quarter of FY 2015, the report said.
“As a result, the data used to prepare the FY 2015 AGF third quarter and yearend financial statements were unreliable and lacked an adequate audit trail,” the report said. “Furthermore, DoD and Army managers could not rely on the data in their accounting systems when making management and resource decisions.
“Until the Army and DFAS Indianapolis correct these control deficiencies, there is considerable risk that AGF financial statements will be materially misstated and the Army will not achieve audit readiness by the congressionally mandated deadline of Sept. 30, 2017.”
How to fix it?
The auditors said the “adjustments” in the system need to be monitored and verified, and the “system deficiencies” that triggered errors should be addressed.
The Armstrong Economics site commented: “Let[‘s] faced the truth. Government is incapable of managing even a bubblegum machine. They are completely hopeless. This money is lining the pockets of unknown people and it is funding unknown military operations.
 “When will enough ever be enough? While the press micro-manages every word Trump utters, not a single one will [ever] investigate the massive government waste. Under the Obama administration, the total government spending on budget increased from $2.9 trillion to $3.9 trillion or about 32 percent while the off-budget increased 66 percent. This does not include the Quantitative Easing buying in debt by the Federal Reserve.”
The inspector general’s report said the military admitted there were problems.
“The deputy assistant secretary of the Army (Financial Operations), responding for the assistant secretary of the Army (Financial Management & Comptroller), and the director, DFAS Indianapolis, agreed with the recommendations,” the IG said.
While the military office promised to review system change requests, identify errors that result in unsupported adjustments and more, it still has failed to “provide an understanding of the reasons for system-generated JV adjustments,” the IG said.
It also has not addressed “the prioritization of system change requests for correcting system deficiencies resulting in JV adjustments.”
“Therefore, we request that the assistant secretary of the Army (Financial Management & Comptroller) and the director, DFAS Indianapolis, provide additional comments to this report by August 25, 2016,” the inspectors wrote.
One of the legacies of the Obama administration undoubtedly will be the the doubling of the national debt during his eight years in office.
Currently at $19.4 trillion, the debt is projected to hit $20 trillion by Inauguration Day, up from $10.6 trillion when Obama entered the White House on Jan. 20, 2009.
Put in perspective, it means Obama will have added to the debt as much as all previous 43 presidents have done cumulatively.
Sputnik News pointed out a 1996 law requires all federal agencies to audit regularly.
“The Pentagon has so far failed to conduct a single one,” the report said. “In common language, the Pentagon has no idea how it spent nearly $7 trillion.”
And Jay Syrmopoulos wrote at the Free Thought Project, “While there is nothing in the IG’s report specifying that the money has been stolen, the mere fact that the Pentagon can’t account for how it spent the money reveals a potentially far greater problem than simple theft alone.”
Writer Dave Lindorff at Opednews cited the report’s “dense bureaucrateze” and said “it means that for years – and $6.5 trillion represents … about 15 years’ worth of U.S. military spending – the Department of Defense (sic) has not been tracking or recording nor auditing all of the taxpayer money allocated by Congress – what it was spent on, how well it was spent, or where the money actually ended up.
“There are enough opportunities here for corruption, bribery, secret funding of ‘black ops’ and illegal activities, and [of] course for simple waste to march a very large army, navy and air force through.”
He pointed out the total federal discretionary spending in FY 2015 was just over $1.1 trillion.
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