ANOTHER $35 TRILLION: AN ACCOUNTING ERROR?

ANOTHER $35 TRILLION: AN ACCOUNTING ERROR?

Yesterday I blogged about the new logo for the USA's new "Space Force," a logo that to my and many other people's eyes looks all-too-suspiciously like the "Starfleet" logo from Star Trek. Well, I suspect today's article, shared by G.P., may have something to do with yesterday's story. And it may contain another hint of that hidden system of finance and its practices as well. The story concerns yet more trillions of dollars, in this case, $35,000,000,000,000 worth of accounting errors:

Pentagon Racks Up $35 Trillion in Accounting Changes in One Year

The story is simple enough, and sadly, it's a measure of how accustomed we've become to astronomical amounts of missing money, that at best it only raises an eyebrow. Yet, there's a detail in this article that caught my eye, and that fuels today's high octane speculation. It seems that once again the Pentagram has mislaid a few trillions and has had to make accounting adjustments:

The Pentagon made $35 trillion in accounting adjustments last year alone -- a total that’s larger than the entire U.S. economy and underscores the Defense Department’s continuing difficulty in balancing its books.

The latest estimate is up from $30.7 trillion in 2018 and $29 trillion in 2017, the first year adjustments were tracked in a concerted way, according to Pentagon figures and a lawmaker who’s pursued the accounting morass.

In other words, we're already far afield of former Defense Secretary Donald Rumsfeld's September 10, 2001 admission that the Pentagram had about $2 trillion it couldn't account for. But, says the article, you can breathe easy, because the money isn't really lost, it's just all poor accounting:

The military services make adjustments, some automatic and some manual, on a monthly and quarterly basis, and those actions are consolidated by the Pentagon’s primary finance and accounting service and submitted to the Treasury.

There were 546,433 adjustments in fiscal 2017 and 562,568 in 2018, according to figures provided by Representative Jackie Speier, who asked the Government Accountability Office to investigate. The watchdog agency will release a report on the subject Wednesday after reviewing more than 200,000 fourth-quarter 2018 adjustments totaling $15 trillion.

‘Sloppy Record-Keeping’

The “combined errors, shorthand, and sloppy record-keeping by DoD accountants do add up to a number nearly 1.5 times the size of the U.S. economy,” said Speier, a California Democrat. The report shows the Pentagon “employs accounting adjustments like a contractor paints over mold. Their priority is making the situation look manageable, not solving the underlying problem,” she said.

...

The GAO estimated based on a sample that at least 96% of 181,947 automatic adjustments made in the fourth quarter of fiscal 2018 “didn’t have adequate supporting documentation.”

“In layman’s terms, this means that the DoD made adjustments to accounting records without having documentation to support the need or amount for the adjustment,” said Dwrena Allen, spokeswoman for the Pentagon’s inspector general. “The size and scope of unsupported adjustments is deeply concerning because it tells a story of poor internal controls and lack of financial data integrity.”

But not so fast. There's something that caught my eye and I hope that caught yours, and it's this little detail:

“Within that $30 trillion is a lot of double, triple, and quadruple counting of the same money as it got moved between accounts,” said Todd Harrison, a Pentagon budget expert with the Center for Strategic and International Studies.

The Defense Department acknowledged that it failed its first-ever audit in 2018 and then again last year, when it reviewed $2.7 trillion in assets and $2.6 trillion in liabilities. While auditors found no evidence of fraud in the review of finances that Congress required, they flagged a laundry list of problems, including accounting adjustments.

Now, there's two ways to count money two, or three, or several times: one is to do so inadvertently and by mistake, which is what we're being asked to believe here. But the other is to do it deliberately. In the banking world, where the same pile of assets are assigned to several different accounts all at the same time, it's not only fraudulent, but there is actually a word for it: re-hypothecation.

It's that term, plus the admission that "things" are being counted "more than once" in these accounting "adjustments", that bring me to today's high octane speculation: What if we've just been given another profound clue into the nature of the hidden system of finance? What if the practice of rehypothecation is not confined to the world of banking, but has in fact become a modus operandi of government agencies  themselves, in this case, of the Department of Defense? In my original model of this hidden system, articulated in various books and at the first Secret Space Program conference in San Mateo, California in 2014, rehypothecation formed one of the techniques by which I speculated vast amounts of fraudulent liquidity could be created and kept from the public by a kind of double-bookkeeping. This, as I suspected then, was confined to banking and to the presence in the system of hidden and undisclosed bullion acting as a secret reserve on the ledgers. Since the reserve was secret, I reasoned that it could be rehypothecated over and over again, and generate the vast amounts of liquidity that a large secret research program would require.

But that liquidity in its turn could itself become a reserve and be rehypothecated by the agencies receiving it, and with the FASAB 56 regulations, the climate of secrecy is created to allow that to be done.

In my original speculations I pointed out that President Truman's decision to secretly recover looted Japanese gold and to turn it over to the National Security Council as a top secret slush fund for covert operations and secret research put the intelligence agencies and the military into the banking business.

Perhaps, with this story, we've been given a little confirmation of that hypothesis.

See you on the flip side...

28 thoughts on “ANOTHER $35 TRILLION: AN ACCOUNTING ERROR?”

  1. and should it not sometimes go the other way around with accounting errors.. like the Monopoly Game’s chance cards… bankster error in your favor, receive $35 trillion. government announced funding to build something or 10 trillion free school lunches all over the world. Military takes 20% to prepare for the onslaught, cause they hate us for our free lunches.

  2. I wanted to think through this for a bit before tossing my two cents worth into the arena. After all, the US is being forced to watch an impeachment hearing of a sitting President for abuse of power for fighting corruption. Honestly, I believe, Dr. Farrell, you can, at the very least, say the military industrial complex (MIC) is “acting as if they are in the banking business.” Such behavior, once permitted after exposure, means the USG tacitly approves the activity–which the Financial bailouts of 2008 strongly suggests. If you want a rapid ramp up of a new branch of the military and want a series of hardware purchases quickly, you need both FASAB 56 and a very large cash reserve to staff, equip and operate within a military capacity. Perhaps this revelation casts the whole context of corruption and impeachment into a whole new light. The problem I have with this approach, though, is this new branch of the military may be more private than public–with the adjustments purchasing access to that military space by the USG for national interests. After all, it appears the MIC has more leverage in space operationally than the USG. It’s beginning to smell a lot like Venice! Every where you go…

  3. Remember 9/10/2001 when our hero Secdef Rumsspringerfeld declared 2.1 T missing and he’d get right on it? He put the military’s top inspector generals in that special room on the opposite side of the Pentagram from Rummy’s office? The room that got dissappeared by a missile like craft of some sort on 9/11/2001?

    Apologies if my tone is too similar to Kurt Vonneguts. I have been enjoying Liam Scheff’s book. He writes alot like Vonnegut.

  4. Doc, I read a Peter Breggin book last week. This is more related to threads running throughout this fabric. Breggin thinks Darwin to have been much misappropriated and misinterpreted on purpose and that he felt way differently about life the universe and everything than we were taught. Imagine that.

    Now imagine that happening to my view of CS Lewis.

  5. Sounds simply like usury, by way of deception.. but I repeat myself. (/mark Twain on politicians and scoundrels)

    What is suspicious is that accounting errors should, on the whole, in the medium term, cancel each other out.

    So do we have 3500 trillion one way and 3465 trillion the other way?

  6. They have been studying at the Rothschild’s school of economics; if you don’t have it, make it up, rehypothicate it beyond belief, and loan all of it to others at interest.
    These numbers are, after all, not real; they’re just bits in a spreadsheet on some computer. The more unrealistic you can make them the more you can get away with and pocket.
    You are, after all, running the largest criminal enterprise the Earth has ever witnessed. All of your useless idiots are compromised beyond belief and selected to serve in various positions of power ensuring your enterprise is never investigated or brought to justice while your MSM, like some carnival barker, is there to insure you never realize the intent is to rob you blind while your attention is focused on everything but that fact.
    This is what has now become known as “business as usual”.

    1. WD, well said. This leaves their larger ‘motives’ in question. Is it simply the love of control over humanity, or is there some larger agenda in play?

      1. Their intent is fairly obvious. They conjure the money from thin air and use it to buy real assets for essentially nothing. The intent is to own the entire earth and everything on it eventually.

        1. It’s more meme watfare. Along those lines Juicy Smooliay is back un court and in msm limelight. Just in time to see local Chicago news show him entering the courthouse and break to a commercial for Kim Fox’s Democratic opponent. Looks more n more like that meme was a political direct hit on Fox and indirect hit on Obusha. Curious since Rahm Emmanuel was so aggressively involved. That Rahm, brother of Ari, Trumps longtime agent and close friend. Almost as odd as seeing Epstein’s friend Dershowitz defending the Donald’s impeachment.

          1. That is Rahm Emmanuel former Chicago mayor and former Obusha chief of staff and his brother Ari. If memory serves they both served their military obligation in the IDF.

          2. They have to take it slow and easy so not to wake too many people up. Too many unhappy, angry mobs coming out with pitch forks would spoil their plans. They certainly don’t want mayhem, until we are all under constant surveillance and every thing is under “their” control. They know how far and how fast to push their agenda. Religion, money and wars were the soft control until the time where technology could bring in the more advanced features like transhumanism, scaler weapons, 5G and space travel.
            The one thing they can’t achieve though is supernatural eternal life. They might have thousand year lifespans but when they do die they go back to a spec of dust with no spiritual understanding or hope to come back again. They will never know what it feels like to be human, unity, emotions and the freedom choose good over evil.

  7. Eh let me get this straight, the US owes $22 trillion to the Federal Reserve, there’s $22 trillion missing, you have a blotted military fighting wars all over the planet, you’ve got 44 million people on food stamps, you’ve got people sleeping on the streets in San Francisco and LA. Now saying that, the MSM is telling everyone that the US economy is doing great. I think the Saker is right, The Empire is a slow moving train wreck, who could’A known ??

  8. You gotta be kidding me.
    In one year?
    IF this is true it sounds like a panic move.
    a kind of “throw as much money at the problem as you can and solve it!”
    but 35 trillion should buy a lot of problem solving LOL.
    This is incredible.
    So what is that now 55 Trillion in missing money?

  9. Let’s assume it is true that “Within that $30 trillion is a lot of double, triple, and quadruple counting of the same money as it got moved between accounts.” Wouldn’t this apply to other assets too? Some personnel, vehicles, tanks, missiles or whatever are transferred from one place or one branch to another, and poof! as if by magic, they double, triple and quadruple in number, or just vanish altogether. As a matter of fact, wasn’t there a news item where they admitted they had “lost” a significant number of people?

  10. Someone has to pay for all those fan blades from Precision Castparts, the Conoco jet fuel and those flights to dust the sky. Buffett and Gates have it well hidden in the Pentagon budget.

  11. Reading title:
    kleptocracy disguised as economic warfare.
    That’s a whole lot of tunnels and space investment?
    They find another $35 trillion asteroid?
    Or, are they just plain thieves?

    It’s just Ben Rich’s formula for getting rich.
    Yes, he’s been very rich.
    The error has made them trillions.
    If you don’t believe; ask E.T., I took him home yesterday

    The alchemy of money secret.
    Nothing up my sleeve.

  12. Unholy mission of greater Satan is to reestablish throne of David in lesser Satan.

    Cooking the books ensures controlled demolition of superstructure into servitude.

    Anointed kingship was abandoned, and replaced with Druidic kingship, by Christ.

    Runology is DIY kingship, by pyramidal 8-point compass.

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