HUD SECRETARY DR. CARSON FINDS A MERE HALF A TRILLION IN ERRORS… ...

When then-President-elect Trump appointed former neurosurgeon and presidential candidate Dr. Ben Carson to be Secretary of the Department of Housing and Urban Development, I had to turn to my friend and colleague Catherine Austin Fitts, and exchange the "knowing wink." Seriously, folks, we weren't even in the same room when the announcement came. We were, in fact, hundreds of miles away, but nonetheless, I strongly suspect we both turned in that "metaphorical higher-dimensional imaged-space" that we all create when such things happen, and winked at each other. Indeed, later, during a phone call as we were discussing the various cabinet appointments that were rolling out, we both had to speculate on just how long it would take Dr. Carson to find major financial problems. I forget who said what, but one of use gave it about "six months."

Well, it's been about six months, and here we are, with the following story shared by Ms. S.H.:

BREAKING: Ben Carson Finds $516.4 BILLION Of Mismanaged Funds… Media SILENT

And here's the actual PDF put out by HUD:

U.S. Department of Housing and Urban Development, Washington, DC HUD’s Fiscal Years 2016 and 2015 (Restated) Consolidated Financial Statements Audit (Reissued)

Much of the latter is, of course, the usual government boiler-plate. So I direct your attention to page 3 of the PDF file, where we read this:

What We Audited and Why
In accordance with the Chief Financial Officers Act of 1990, as amended, we are required to annually audit the consolidated financial statements of the U.S. Department of Housing and
Urban Development (HUD). HUD reissued its fiscal year s 2016 and 2015 (restated) consolidated financial statements due to pervasive material errors that we identified. Our objective was to express an opinion on the fairness of HUD’s consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) applicable to the Federal Government. This report presents our reissued independent auditor’s report on HUD’s fiscal year s 2016 and 2015 (restated) consolidated financial statements, including an update to our report on HUD’s internal controls.
What We Found
The total amounts of errors corrected in HUD’s notes and consolidated financial statements were $516.4 billion and $3.4 billion, respectively. There were several other unresolved audit matters, which restricted our ability to obtain sufficient, appropriate evidence to express an opinion.These unresolved audit matters relate to (1) the Office of General Counsel’s refusal to sign the management representation letter , (2) HUD’s improper use of cumulative and first-in, first-out budgetary accounting methods of disbursing community planning and development program funds, (3) the $4.2 billion in nonpooled loan assets from Ginnie Mae’s stand-alone financial statements that we could not audit due to inadequate support, (4) the improper accounting for certain HUD assets and liabilities, and (5) material differences between HUD’s subledger and general ledger accounts. This audit report contains 11 material weaknesses, 7 significant deficiencies, and 5 instances of noncompliance with applicable laws and regulations.
(Emphases added).
Now, let's translate that from Governmentese to English:
1) "...pervasive material errors we identified," = "we identified pervasive material errors" = We couldn't make much sense of the way HUD keeps its books, but...
2) ...nonetheless we found "amounts of errors" totaling $516,400,000,000 = in spite of the deplorable state of HUD's books, we were able to identify half a trillion dollars of errors.
Now, you're probably wondering, given the title of the first article, whether or not this money is actually missing, or if these were simply "accounting errors." (Let the magnitude of those two possibilities to sink in for a moment!) Johnny and Susie can't read, write, add or subtract any more, so it probably should not come as a surprise that HUD can't add or subtract either. But, tempted as I am to indulge my penchant for rants on Amairikuhn edgykayshun, I will resist, because in the very next sentence we read:
3) "There were several other unresolved audit matters, which restricted our ability to obtain sufficient, appropriate evidence to express and opinion" = "we did the best audit that we could, but in spite of the fact that we were able to identify half a trillion dollars of errors, we we're able to get any further because there's 'something funny' about the books."
And let you think I'm reading too much into that statement, we are then told that
4) "We ran into 'improper accounting' of 'certain HUD assets  and liabilities,'" = "we don't even know what HUD owns or is liable for"...
...and yes, folks, I'd call that an "accounting problem. It's beginning to look an awful lot like we're not just looking at poor addition and subtraction skills from Johnny and Susie Hudd, but an actual missing half a trillion dollars.
But wait. There's more:
"Why," you might be asking yourself, "don't they even know what they own or are liable for?"
And the answer is:
5) There were "material differences between HUD's subledger and general ledger accounts," which is a nice Clinton-Obama-Bush-esque way of saying "we don't know what we own or are liable for because we're keeping two sets of books!"
Ponder that statement for a moment: they acknowledge the existence of something called a "subledger". Now, obviously, I've never served at any high level of the Federal Cesspool, nor would I want to. So perhaps "subledger" is a professional term of art for Federal Accounting.
But to my hack-from-South-Dakota ears, it sounds like "two sets of books". And hey, if we can have subledgers, then why not sub-subledgers, and so on, and several sets of books, all the way from the local to the state to the regional to the federal level. Would that confusion allow the looting of the agency? You bet. And why would one loot any federal agency?
To keep their covert operations, drug running, and secret research going.
And that's a fancy way of saying that, while there is a problem in HUD, the problem doesn't originate there.
See you on the flip side...

28 thoughts on “ HUD SECRETARY DR. CARSON FINDS A MERE HALF A TRILLION IN ERRORS… ...”

  1. Milton Zentmyer

    Maybe Carson was chosen BECAUSE he has no vested interests in any way, either to cover his bottom or someone else’s bottom. He strikes me as the boy in the fairy tale saying the Emperor has no clothes….look. Now whether an investigation can get started …….is this not in the jurisdiction of Jeff Sessions?

    I heard, read….somewhere, you know how the information tends to surface and then fall into a hole….that the missing money from Fannie May and Freddie Mac has gone to prop up Obama Care. Just sayin

  2. Double book keeping, fer’ sure, because that is how we get something from nothing.
    The way I see it, the Federal Reserve Bank, is a big cash cow. The left milks it for “social welfare” and the right milks it for “defense”. Those in the know; agencies, capital corporations, non-profits, individuals, etc., are all hooked up catching the monetary overflow into their own very deep, very dark pockets..
    I think Dr. Carson is simply revealing the method. The general public will grow bored with the topic and the milking will resume as scheduled.

  3. WE are being “harvested” ….IN EVERY sense of the …word !
    harvest
    [hahr-vist]

    Synonyms
    Examples
    Word Origin

    See more synonyms on Thesaurus.com
    noun
    1.
    Also, harvesting. the gathering of crops.
    2.
    the season when ripened crops are gathered.
    3.
    a crop or yield of one growing season.
    See Synonym Study at crop.
    4.
    a supply of anything gathered at maturity and stored:
    a harvest of wheat.
    5.
    the result or consequence of any act, process, or event:
    The journey yielded a harvest of wonderful memories.
    verb (used with object)
    6.
    to gather (a crop or the like); reap.
    7.
    to gather the crop from:
    to harvest the fields.
    8.
    to gain, win, or use (a prize, product, or result of any past act, process, etc.):
    She has finally harvested the rewards of her dedication.
    9.
    to catch, take, or remove (animals), especially for food:
    Fishermen harvested hundreds of salmon from the river.
    10.
    to collect (any resource) for future use:
    to harvest solar energy; spammers who harvest email addresses.
    11.
    to extract (an organ or tissue) from a living or dead body, as for transplantation or research:
    to harvest a kidney; to harvest embryos.
    verb (used without object)
    12.
    to gather a crop; reap. … um hum !!!

  4. proves the Earth is flat … the only place all that money could have gone is off the edge of the world

  5. Robert Barricklow

    As Catherine Austin Fitts appropriately called it years ago:
    Crime That Pays
    Is Crime That Stays!

  6. I just Dr. Carson doesn’t get a sore neck from looking over his shoulder. And you won’t hear any more about this story, until maybe RT covers it.

  7. Why the sudden praise of Ben Carson in all this? It seems to me he’s hardly the hero people think. In fact, he’s about the last person on Earth I would appoint to drain a swamp. Just like Trump, he’s made a career out of contaminating swamps. If even half the lawsuits against him are true, the idea of him being appointed to drain a swamp is nothing short of laughable. For starters, according to Zerohedge, he’s been sued at least 13 times for leaving staples, wires, steel pincers, sutures, pins, plastic moulding, broken blades, and even a whole pair of scissors, at various surgical sites in the brain. These are not the qualities we look for in an accountant. My own neurosurgeon has been practicing for 55 years and has not been sued even once. It’s not what Ben Carson is capable of discovering which attracts Trump. It’s what he’s willing to leave behind when its time to get out of Dodge.

      1. On The contrary! You miss my point! Carson was appointed head of HUD because Trump knew he was incapable of carrying out a serious investigation. What does it matter that Carson finds half a trillion in missing money? There’s 18 trillion missing! Sorry About that, Doctor. But anyone who happily makes a choice between a criminal and a showman deserves what they get!

  8. As Senator Everett Dirksen (R-IL) said, “$500 Billion here, $500 Billion there — pretty soon it adds up to be real money” (adjusted for inflation).

    Dirksen served in the U.S. Senate from 1951 to 1969 and in the House of Representatives from 1933 to 1949.

  9. A word of warning to the investigative team: Don’t assemble in one place.

    The last time a major books ‘discrepancy’ happened – under Dov Zakheim, Comptroller at the Pentagon under George W. Bush – the investigators were concentrated at one Wing of the Pentagon. Curiously enough, that was the Wing hit by the 757 (or cruise missile), while Donald Rumsfeld was on the opposite side of the building.

    Wikipedia: “125 people were killed at the Pentagon, most of whom worked for the United States Army or the United States Navy. Of the 125 deaths, 70 were civilians, including 47 Army employees, six Army contractors, six Navy employees, three Navy contractors, seven Defense Intelligence Agency employees, and one Office of the Secretary of Defense contractor; and 55 were members of the United States Armed Forces, including 33 Navy sailors and 22 Army soldiers. Lieutenant General Timothy Maude, an Army Deputy Chief of Staff, was the highest-ranking military official killed at the Pentagon.”

    So, spread yourselves out, and be wary of any collective meeting – especially if a known AZ boss just happens to be delayed in traffic…

    1. Good advice, goshawks. Back in the day when I was in the military it was a standing ‘joke’ whenever a bunch of us were in one group, even when drinking a beer at a public bar someone would invariably say, “Hope a bomb don’t go off.”

  10. Hells Bells, folks! If the accounting of the military budget, Obamacare budget, transportation and highway budget, and the Federal budget at large is ever exposed to the light of day it will be just as confusing and obfuscated as it appears to be at HUD.

    When I first heard an interview of Catherine Austin Fitts it was shortly after the 2008 financial debacle. She convinced me the USSA was so out of control it will take an army of dragon slayers to put the Leviathan down.

    A big “Thank you!!!” to Trump for putting a true patriot in charge of HUD. Dr. Ben Carson is a true patriot, and all around great man.

  11. We appear to be at the “robbery of the treasury” stage of empire which precedes the total collapse. The “owners”, as G. Carlin so aptly put it, are draining off what they can, while they can, and our “exceptional” status will evaporate the moment the dollar loses “reserve currency” status. The “federal” government is bankrupt beyond belief, and the “states” are beginning to drop like dominoes in the same manner. We are, and have been for some time, a third world country where corruption rules and the people suffer while its “leaders” grow fat off the carcass. The water is beginning to boil and the frogs are still unaware.
    Preparations have already been put in place for the chaos which will follow.

    1. Robert Barricklow

      The best democracy one can buy will soon be picked clean.
      The heads will not roll; but fly out first class.

  12. If he serious he has a job of unraveling this modern day Gordian knot of malfeasance and corruption, throughout the government of the USSA from federal to local branch’s. I just hope Dr. Carlson he is up to task set before him he is in for a wild ride untangling this uber-criminal enterprise it maybe to late to act to act the rot may go to deep.

  13. So, I wondered why the Office of the General Counel @ HUD refused to sign off on the report.
    In link to the the pdf provide for that report, one reads:

    During our fiscal year 2016 audit, HUD’s acting general counsel refused to sign off on certain
    matters included in the management representation letter concerning all known actual or possible
    litigation, claims, and assessments related to HUD, including its component entities. We believe
    that HUD’s acting general counsel is responsible for and knowledgeable about those matters that
    should be considered in Office of the Chief Financial Officer (OCFO) management’s preparation
    and fair presentation of the financial statements. Due to HUD’s acting general counsel’s refusal to
    sign off on these matters, which is a scope limitation, we lacked assurance that all known actual or
    possible litigation, claims, and assessments had been properly accounted for or disclosed in the
    consolidated financial statements in accordance with GAAP.

    One will note that ALL the matters on which the acting counsel refused to sign off are NOT listed.
    Why ?
    Also, one would notice that, although the audit and and the subsequent report were initiated and published by the OIG (Office of Inspector General )of HUD, there’s no obvious comment by the HUD OIG on the findings of the audit.

    An Audit Report not signed off by the Office of General Counsel and without comments from the HUD Inspector General ?

  14. Truth, reality or whatever metaphor seems to does not provide a fix to feel good.
    The pursuits are voluntary and need activation from a person to lift the veil obscuring truth, reality.

    Could that be a reason so little “persons” are interested and if tidbits do make it in the news it never reaps a world-wind?

    Or is the dopamine fix already firmly replaced by other technological means on persons not being capable of being persons anymore?

    If a neurosurgeon can count to this big number one wonders what number a specialist would come up with!

  15. Governments use the expedient of appointing people who apparently know little about job. Either to prevent them from doing anything or, more subtly, to act in unexpected ways. Anybody who has held a management position in a major hospital for 29 years will know all the “tricks of the trade”.
    If he knows half of what C.A. Fitts has been saying publicly for years on mortgage fraud, he also realises that this is a risky business. So we’ll have to watch for further news, including attempted smears or other retaliation.

    1. Im expecting the news to fall that he’s head of a pedophile network.. run from a burritos truck..

    1. That is a good one Basta. They are way short of the Defense Dept. Can you say ACORN, Obummercare, laraza and other private organizations that own the gobment. db

    2. Phil the Thrill

      ….or…..he’s got it stashed in the wall safe behind that big ol’ painting of him and Caucasian Jesus.

  16. I wasnt following this Mr.. It seems he’s clean.. But why is a neurochirurgien with no to little political experience doing, doing an audit…ah.. maybe because he has little to no political staining to get in the way..
    I bet.. that no one will be held accountable for this missing money.. (like someone at the top highest level)
    Something funny in the books all right.. I wonder what a half trillion dollars buys..

    1. A neurochirurgien’s profession is to look deep inside the brain to find a problem. Perhaps a little bit identical …

    2. Phil the Thrill

      He’s a dispensational evangelical Christian, which means he’s about as clean as the Hobby Lobbyists. Also, he is a practitioner of allopathic medicine, which makes him a Rockefailure agent.

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