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How $65,000 was stolen from each American

The Federal Government can’t account for $21 trillion, does anybody care?

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Here are key excerpts from the most concise, accurate, and clearest, news-reports about something that almost all U.S. news-media have been completely hiding (issuing no reports about, though the theft indisputably happened and grows each year) — a theft of $65,000 from each American.

Consequently, this composite news-report (which is herewith being submitted to all U.S. news-media) will likewise probably be hidden by them. But, the few news-media that have already reported on this very important matter are linked-to here, and deserve great praise for having done so, because the vast majority still haven’t yet reported on this important matter, at all.

On September 10, 2001, then Secretary of the Department of Defense Donald Rumsfeld said that for the 1999 DOD budget, “According to some estimates, we cannot track $2.3 trillion in transactions.” The War On Waste [was the CBS News report about this, dated 10 September 2001]. The following day the US sustained the terrorist attacks that forever changed our world, and this startling revelation was largely forgotten, until recently.

When a discrepancy occurs in an account that cannot be traced, it is usual to make what is called an undocumentable adjustment, or journal voucher. This is similar to when your balance is off by ten dollars when you reconcile your checkbook, so you add or subtract that amount to make everything balance with the bank. In 1999 the amount the Pentagon adjusted was eight times the DOD budget for that year, and one third greater than the total 1999 United States federal budget.

By 2015 the amount reported by the Office of the Inspector General (OIG) had increased to $6.5 trillion for the Army only. [The 31 July 2016 article,] Pentagon’s Sloppy Bookkeeping Means $6.5 Trillion Can’t Pass an Audit[, by] Dr. Mark Skidmore, Professor of Economics at Michigan State University, [indicated that he] thought this made no sense and suspected an error in media reporting.

Looking into this issue by using data published on the government’s own websites, he found that $21 trillion in unsupported adjustments have been reported by DOD and the Department of Housing and Urban Development (HUD) for the years 1998-2015. That’s $65,000 for every person in AmericaHas Our Government Spent $21 Trillion Of Our Money Without Telling Us?

Jim Minnery of the Defense Finance and Accounting Service traveled the country in 2002 looking for records on $300 million. “We know it’s gone. But we don’t know what they spent it on,” he said. He says higher-ups covered up the problem by writing it off, and he was reassigned.

According to a 2013 Reuters report [“Special Report: The Pentagon’s doctored ledgers conceal epic waste”], the Pentagon is the only federal agency that has not complied with a 1996 law [actually a 1992 law that took effect in 1996] that requires annual audits of all government departments.

The Pentagon has spent tens of billions of dollars to upgrade to new, more efficient technology in order to become audit-ready. But many of these new systems have failed, either unable to perform all the jobs they were meant to do or scrapped altogether.

That Reuters article says:

“Linda Woodford spent the last 15 years of her career inserting phony numbers in the U.S. Department of Defense’s accounts. Every month until she retired in 2011, 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. For those, Woodford and her colleagues were told by superiors to take ‘unsubstantiated change actions’ – in other words, enter false numbers, commonly called ‘plugs,’ to make the Navy’s totals match the Treasury’s.”

This is also standard operating procedure for the other defense branches. Difficulties included a massive backlog of audits meant to ensure that vendor contracts had been fulfilled.

In a December interview on USAWatchdog (Dr. Mark Skidmore – $21 Trillion Missing from US Federal Budget), an online news outlet run by former CNN and ABC News correspondent Greg Hunter, Dr. Skidmore said he frequently consults for local governments, and undocumentable adjustments, while common, are never more than one percent of the budget. In the case of the Army in 2015, the adjustment was over 50 times their budget for that year.

Of the missing $21 trillion he discovered, $11.5 trillion was for the Army, usually on the expenditure side. But in the 2016 OIG report for 2015, he found a single transfer from the Treasury to the Army of $800 billion when their budget was only $122 billion. The additional $688 billion had not been appropriated by Congress, and the Army doesn’t know what it was spent on.

Skidmore talked with OIG but could never make contact with anyone who had worked on the report. He also talked with the Congressional Budget Office and the General [actually “Government”] Accountability Office.

They said if there was a problem there would be Congressional hearings. Donald Rumsfeld did testify before Congress in 2005, but no substantive answers were forthcoming. 2.3 Trillion Dollars Missing from DOD Day before 911 2001 Rumsfeld LIES [A] short time later, Dr. Skidmore discovered that the online links to all the relevant documents he had researched had been disabled. Fortunately he had made copies and they are available at Solari.comDOD and HUD Missing Money: Supporting Documentation In his Watchdog interview he made a public appeal. “If you have a background in accounting or bookkeeping, please take a look at it. We need your help. Does this make any sense to you? The Federal Reserve is the fiscal agent for the Federal Government. I think if we wanted we could see the flow of resources through the Fed.”

After Dr. Skidmore made the document removals known, they were put back up online in a different location.
He further explains that:

“These reports are not at all transparent. It’ll say for example there are thousands of missing records. Not just missing but records appear to be erased. But there’s no indication of how much money would be associated with those records that we can’t see. Similarly the one report for the Army at 6.5 trillion dollars, it’ll say something like, there were 170 unsupported journal voucher adjustments that account for two billion dollars and then it stops. In my mind I’m thinking the next step would be to go into those 170. 170 doesn’t seem like that many to look into. Why don’t we go and look?”

“These government documents say we have inadequate computing systems that don’t talk to one another. That we have incompetence at some level. We have explanations of erased records and computing error and inadequate audit trails.”

Greg Hunter: “You’re not saying they’re incompetent.”

Mark Skidmore: “Yeah, I’m not saying that. That’s what they’re suggesting. In my experience with people within the Federal Government, that is not the case. They are not that stupid. They are very sharp. And many of them care about what’s going on and want to do a good job. That’s my personal experience. I’m sure that there is some level of people who aren’t as competent as they could be, but there are many competent people and typically those people are the ones who are appointed to positions of responsibility. But that’s what these reports say.”

Greg Hunter: “We lost 21 trillion and we’re just stupid. I mean that’s just what they’re saying.”

Mark Skidmore: “For me it’s like how can we have these kinds of adjustments and this massive amount of money? It doesn’t make sense to me. …

On 22 November 2013, McClatchy bannered “Pentagon’s bosses thwart accurate audit of DOD’s main accounting office”, and reported that the whistleblowing former Defense Finance and Accounting Service accountant, Jim “Minnery described a lucrative audit mill in which private certified public accounting firms make millions of dollars each year providing financial seals of approval that the Pentagon and other federal agencies then point to as proof that their congressionally approved funds are not mismanaged. ‘The reason the Defense Department gets these clean audits is because these firms that audit them want to do more business with the Pentagon,’ he said.” So: the higher-ups at the ‘Defense’ Department are the ones applying pressure to keep the Deparment’s books fraudulent, like they are.

Here are the gory details, the documentation of the dollar-amounts that have been faked (untraceable):

>And here are my analyses of what’s behind all this, and of whom the chief beneficiaries of these massive thefts from the public have been (my hypotheses, of what and who and how has caused this theft of $65,000 from each person in America):

“How the Military Controls America”

“Taxpayer-Funded Mercenaries Serving Both U.S. & Foreign Aristocracies”

To summarize the argument in my two articles: the U.S. military controls American foreign policies, in order to maximize sales-volumes for the corporations that really pay, in retirement, the bulk of the top-brass’s lifetime income; and so those generals — even while being paid by the Government; i.e., on the government-side of the revolving door between ‘public’ service and ‘the private sector’ — are actually mainly salespeople for those private firms, getting contracts for all those unnecessary weapons.

How else, for example, could the narrative that’s documented in the 2013 Reuters report, “Special Report: The Pentagon’s doctored ledgers conceal epic waste”, make sense? Those generals were doing what their arms-merchant masters needed to be done in order to puff-up American military spending to become now around half of the entire world’s military spending.

Here (click on this link) are the top 100 sellers to the U.S. military.

The top 5 U.S. military contractors (Lockheed, Boeing, Raytheon, General Dynamics, Northrop Grumman) = 32.44% of the total military sales to the U.S. Government.

The top 10 = 40.74% of the total such sales.

So, in order starting at the very largest, here are the top 10 beneficiaries of this system: Lockheed, Boeing, Raytheon, General Dynamics, Northrop Grumman, United Technologies, BAE, L-3, Huntington Ingalls, Humana.

Adding in the next 10, adds only around another 6% to that nearly 33%, and they are, also in order: Bechtel, Unitedhealth, McKesson, Healthnet, Bell-Boeing, SAIC, AmerisourceBergen, Textron, Booz Allen, GE.

So: U.S. military purchases are highly concentrated in only the top 5 (Lockheed, Boeing, Raytheon, General Dynamics, Northrop Grumman), which, collectively, sell around a third of all U.S. military purchases. The clout that these five gigantic firms have is about half as much as all of the others combined; and, since there are only 5 of them, they can coordinate amongst themselves much more easily than the dozens of those others can; so, these 5 firms (perhaps in conjunction with America’s big oil firms, and other big international extractive industries) probably effectively control the U.S. Government’s foreign policies (i.e., decide which countries will be invaded, what weapons will need to be purchased in order to do that, etc.).

Though the taxpayer-costs are costs to the public, the corporate-stock-value growth and dividends, etc., are private gains to the controlling owners. This system is called “capitalism.” And that is capitalism explained as “imperialism” — the international, instead of (as is more typical) as the domestic, economy. It’s international capitalism, instead of merely national capitalism. It is the aristocracies that profit from invasions and from military occupations. The biggest losers from this are the countries that become invaded and occupied — destroyed — by these aristocracies.

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Understanding the Holodomor and why Russia says nothing

A descendant of Holodomor victims takes the rest of us to school as to whether or not Russia needs to shoulder the blame.

Seraphim Hanisch

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One of the charges that nationalist Ukrainians often lodge against their Russian neighbors is that the Russian government has never acknowledged or formally apologized to Ukraine for the “Holodomor” that took place in Ukraine in 1932-1933. This was a man-made famine that killed an estimated seven to 10 million Ukrainians , though higher estimates claim 12.5 million and lower ones now claim 3.3 million.

No matter what the total was, it amounts to a lot of people that starved to death. The charge that modern-day Russia ought to apologize for this event is usually met with silence, which further enrages those Ukrainians that believe that this issue must be resolved by the Russian acknowledgement of responsibility for it. Indeed, the prime charge of these Ukrainians is that the Russians committed a genocide against the Ukrainian people. This is a claim Russia denies.

To the outside observer who does not know this history of Russia and Ukraine’s relationship, and who does not know or understand the characteristics of the Soviet Union, this charge seems as simple and laid out as that of the Native Americans or the blacks demanding some sort of recompense or restitution for the damages inflicted on these societies through conquest and / or slavery. But we discovered someone who had family connections involved in the Holodomor, and who offers her own perspective, which is instructive in why perhaps the Russian Federation does not say anything about this situation.

Scene in Kharkiv with dead from the famine 1932-33 lying along the street.

The speaker is Anna Vinogradova, a Russian Israeli-American, who answered the question through Quora of “Why doesn’t Russia recognize the Holodomor as a genocide?” She openly admits that she speaks only for herself, but her answer is still instructive. We offer it here, with some corrections for the sake of smooth and understandable English:

I can’t speak for Russia and what it does and doesn’t recognize. I can speak for myself.

I am a great-granddaughter of a “Kulak” (кулак), or well-to-do peasant, who lived close to the Russia/Ukraine border.

The word “кулак” means “fist” in Russian, and it wasn’t a good thing for a person to be called by this label. A кулак was an exploiter of peasants and a class enemy of the new state of workers and poor peasants. In other words, while under Communism, to be called a кулак was to bring a death sentence upon yourself.

At some point, every rural class enemy, every peasant who wasn’t a member of a collective farm was eliminated one way or another.

Because Ukraine has very fertile land and the Ukrainian style of agriculture often favors individual farms as opposed to villages, there is no question that many, many Ukrainian peasants were considered class enemies like my great grandfather, and eliminated in class warfare.

I have no doubt that class warfare included starvation, among other things.

The catch? My great grandfather was an ethnic Russian living in Russia. What nationality were the communists who persecuted and eventually shot him? They were of every nationality there was (in the Soviet Union), and they were led by a Ukrainian, who was taking orders from a Georgian.

Now, tell me, why I, a descendant of an unjustly killed Russian peasant, need to apologize to the descendants of the Ukrainians who killed him on the orders of a Georgian?

What about the Russian, Kazakh golodomor (Russian rendering of the same famine)? What about the butchers, who came from all ethnicities? Can someone explain why it’s only okay to talk about Ukrainian victims and Russian persecutors? Why do we need to rewrite history decades later to convert that brutal class war into an ethnic war that it wasn’t?

Ethnic warfare did not start in Russia until after WWII, when some ethnicities were accused of collaboration with the Nazis and brutal group punishments were implemented. It was all based on class up to that time.

The communists of those years were fanatically internationalist. “Working people of all countries, unite!” was their slogan and they were fanatical about it.

As for the crimes of Communism, Russia has been healing this wound for decades, and Russia’s government has made its anticommunist position very clear.

This testimony is most instructive. First, it points out information that the charge of the Holodomor as “genocide!” neatly leaves out. In identifying the internationalist aspects of the Soviet Union, Ukraine further was not a country identified as somehow worthy of genocidal actions. Such a thought makes no sense, especially given the great importance of Ukraine as the “breadbasket” of the Soviet Union, which it was.

Secondly, it shows a very western-style of “divide to conquer” with a conveniently incendiary single-word propaganda tool that is no doubt able to excite any Ukrainian who may be neutral to slightly disaffected about Russia, and then after that, all Ukrainians are now victims of the mighty evil overlords in Moscow.

How convenient is this when the evil overlords in Kyiv don’t want their citizens to know what they are doing?

We saw this on Saturday – taken to a very high peak when President Petro Poroshenko announced the new leading “Hierarch” of the “Ukrainian National Church” and said not one single word about Christ, but only:

“This day will go down in history as the day of the creation of an autocephalous Orthodox church in Ukraine… This is the day of the creation of the church as an independent structure… What is this church? It is a church without Putin. It is a church without Kirill, without prayer for the Russian authorities and the Russian army.”

But as long as Russia is made the “problem”, millions of scandalized Ukrainians will not care what this new Church actually does or teaches, which means it is likely to teach just about anything.

Russia had its own Holodomor. The history of the event shows that this was a result of several factors – imposed socialist economics on a deeply individualized form of agrarian capitalism (bad for morale and worse for food production), really inane centralized planning of cropland use, and a governmental structure that really did not exist to serve the governed, but to impose an ideology on people who really were not all that interested in it.

Personal blame might well lay with Stalin, a Georgian, but the biggest source of the famine lay in the structures imposed under communism as a way of economic strategy. This is not Russia’s fault. It is the economic model that failed.

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Mueller Finally Releases Heavily Redacted Key Flynn Memo On Eve Of Sentencing

Alex Christoforou

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Via Zerohedge


Having initially snubbed Judge Emmet Sullivan’s order to release the original 302 report from the Michael Flynn interrogation in January 2017, Special Counsel Robert Mueller has finally produced the heavily redacted document, just hours before sentencing is due to be handed down.

The memo  – in full below – details then-national security adviser Michael Flynn’s interview with FBI agents Peter Strzok and Joe Pientka, and shows Flynn was repeatedly asked about his contacts with former Russian Ambassador Sergey Kislyak and in each instance, Flynn denied (or did not recall) any such conversations.

The agents had transcripts of Flynn’s phone calls to Russian Ambassador Kislyak, thus showing Flynn to be lying.

Flynn pleaded guilty guilty last December to lying to the FBI agents about those conversations with Kislyak.

The redactions in the document seem oddly placed but otherwise, there is nothing remarkable about the content…

Aside from perhaps Flynn’s incredulity at the media attention…

Flynn is set to be sentenced in that federal court on Tuesday.

Of course, as Christina Laila notes, the real crime is that Flynn was unmasked during his phone calls to Kislyak and his calls were illegally leaked by a senior Obama official to the Washington Post.

*  *  *

Full document below…

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Don’t Laugh : It’s Giving Putin What He Wants

The fact of the matter is that humorous lampooning of western establishment Russia narratives writes itself.

Caitlin Johnstone

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Authored by Caitlin Johnstone:


The BBC has published an article titled “How Putin’s Russia turned humour into a weapon” about the Kremlin’s latest addition to its horrifying deadly hybrid warfare arsenal: comedy.

The article is authored by Olga Robinson, whom the BBC, unhindered by any trace of self-awareness, has titled “Senior Journalist (Disinformation)”. Robinson demonstrates the qualifications and acumen which earned her that title by warning the BBC’s audience that the Kremlin has been using humor to dismiss and ridicule accusations that have been leveled against it by western governments, a “form of trolling” that she reports is designed to “deliberately lower the level of discussion”.

“Russia’s move towards using humour to influence its campaigns is a relatively recent phenomenon,” Robinson explains, without speculating as to why Russians might have suddenly begun laughing at their western accusers. She gives no consideration to the possibility that the tightly knit alliance of western nations who suddenly began hysterically shrieking about Russia two years ago have simply gotten much more ridiculous and easier to make fun of during that time.

Couldn’t possibly have anything to do with the emergence of a demented media environment wherein everything around the world from French protests to American culture wars to British discontent with the European Union gets blamed on Russia without any facts or evidence. Wherein BBC reporters now correct guests and caution them against voicing skepticism of anti-Russia narratives because the UK is in “an information war” with that nation. Wherein the same cable news Russiagate pundit can claim that both Rex Tillerson’s hiring and his later firing were the result of a Russian conspiracy to benefit the Kremlin. Wherein mainstream outlets can circulate blatantly false information about Julian Assange and unnamed “Russians” and then blame the falseness of that reporting on Russian disinformation. Wherein Pokemon Go, cutesy Facebook memes and $4,700 in Google ads are sincerely cited as methods by which Hillary Clinton’s $1.2 billion presidential campaign was outdone. Wherein conspiracy theories that Putin has infiltrated the highest levels of the US government have been blaring on mainstream headline news for two years with absolutely nothing to show for it to this day.

Nope, the only possibility is that the Kremlin suddenly figured out that humor is a thing.

The fact of the matter is that humorous lampooning of western establishment Russia narratives writes itself. The hypocrisy is so cartoonish, the emotions are so breathlessly over-the-top, the stories so riddled with plot holes and the agendas underlying them so glaringly obvious that they translate very easily into laughs. I myself recently authored a satire piece that a lot of people loved and which got picked up by numerous alternative media outlets, and all I did was write down all the various escalations this administration has made against Russia as though they were commands being given to Trump by Putin. It was extremely easy to write, and it was pretty damn funny if I do say so myself. And it didn’t take any Kremlin rubles or dezinformatsiya from St Petersburg to figure out how to write it.

“Ben Nimmo, an Atlantic Council researcher on Russian disinformation, told the BBC that attempts to create funny memes were part of the strategy as ‘disinformation for the information age’,” the article warns. Nimmo, ironically, is himself intimately involved with the British domestic disinformation firm Integrity Initiative, whose shady government-sponsored psyops against the Labour Party have sparked a national scandal that is likely far from reaching peak intensity.

“Most comedy programmes on Russian state television these days are anodyne affairs which either do not touch on political topics, or direct humour at the Kremlin’s perceived enemies abroad,” Robinson writes, which I found funny since I’d just recently read an excellent essay by Michael Tracey titled “Why has late night swapped laughs for lusting after Mueller?”

“If the late night ‘comedy’ of the Trump era has something resembling a ‘message,’ it’s that large segments of the nation’s liberal TV viewership are nervously tracking every Russia development with a passion that cannot be conducive to mental health – or for that matter, political efficacy,” Tracey writes, documenting numerous examples of the ways late night comedy now has audiences cheering for a US intelligence insider and Bush appointee instead of challenging power-serving media orthodoxies as programs like The Daily Show once did.

If you wanted the opposite of “anodyne affairs”, it would be comedians ridiculing the way all the establishment talking heads are manipulating their audiences into supporting the US intelligence community and FBI insiders. It would be excoriating the media environment in which unfathomably powerful world-dominating government agencies are subject to less scrutiny and criticism than a man trapped in an embassy who published inconvenient facts about those agencies. It certainly wouldn’t be the cast of Saturday Night Live singing “All I Want for Christmas Is You” to a framed portrait if Robert Mueller wearing a Santa hat. It doesn’t get much more anodyne than that.

Russia makes fun of western establishment narratives about it because those narratives are so incredibly easy to make fun of that they are essentially asking for it, and the nerdy way empire loyalists are suddenly crying victim about it is itself more comedy. When Guardian writer Carole Cadwalladr began insinuating that RT covering standard newsworthy people like Julian Assange and Nigel Farage was a conspiracy to “boost” those people for the advancement of Russian agendas instead of a news outlet doing the thing that news reporting is, RT rightly made fun of her for it. Cadwalladr reacted to RT’s mockery with a claim that she was a victim of “attacks”, instead of the recipient of perfectly justified ridicule for circulating an intensely moronic conspiracy theory.

Ah well. People are nuts and we’re hurtling toward a direct confrontation with a nuclear superpower. Sometimes there’s nothing else to do but laugh. As Wavy Gravy said, “Keep your sense of humor, my friend; if you don’t have a sense of humor it just isn’t funny anymore.”

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