Documentation of US Dept of Defense admitting ‘losing’ $6.5 trillion ($65,000 per average US family), with 18 year history of ‘losing’ trillions. Your .01% illegal rogue state government at ‘work’ until ‘We the People’ demand arrests for OBVIOUS crimes in war, looting, lying

Catherine Austin Fitts just published documentation of Department of Defense (DOD) official audit reports from 1998 that acknowledge “losing track” of $6.5 trillion, along with Department of Housing and Urban Development (HUD) admission of “losing” over $100 billion. This is euphemistically termed “unaccounted,” and literally means that DOD agrees they received these funds, agrees the funds are gone, and then claims to not have records of where the money went.

This is the work of Dr. Mark Skidmore and graduate students; Dr. Skidmore is the Director of the North Central Regional Center for Rural Development at Michigan State University and Professor and Morris Chair in State and Local Gov’t Finance and Policy. Catherine was managing director and member of the board of directors of the Wall Street investment bank Dillon, Read & Co. Inc., Assistant Secretary of Housing and Federal Housing Commissioner for HUD in the first Bush Administration, and president of Hamilton Securities Group, Inc. She has designed and closed over $25 billion of transactions and investments to-date, and has led investment strategy for $300 billion of financial assets and liabilities.

I wrote last year upon publication of DOD’s report. Of course, such “official” looting never happens with lawful accounting because records always show where the money goes. This would be like your bank agreeing they received a $65,000 deposit from you, agreeing the money was gone, and not refunding your account while claiming no further information of this “unaccountable,” “lost,” and “missing” money.

The most common historical explanation of governments “losing” money is, of course, embezzlement to enrich an oligarchy.

$6.5 trillion means how much now?

  • ~$65,000 per US average household, based upon ~$50,000 annual income. This means if your household’s annual income is ~$100,000, your family was looted ~$130,000.
  • Embezzling a billion dollars from a US military project 6,500 times.
  • Embezzling a billion dollars of our tax money every day for 18 years (that’s $10 from every US household everyday).

Please read those three real-world comparisons twice to allow your emotions to feel the outrageous .01% looting of your family.

An Inspector General is supposed to be head of an independent and non-partisan auditing organization to discover and investigate waste, embezzlement, and fraud. They are supposed to act as “watchdogs” to ensure government agencies are transparent and lawful, with power to subpoena and take testimonies under oath.

You may recall that DoD’s claims of trillions of our tax dollars somehow going missing isn’t new, and reported as $2.3 trillion by Secretary of Defense Rumsfeld on September 10, 2001 as “a matter of life and death” the day before a claimed airplane bulls-eyed into the Pentagon’s accounting department, killing the very accountants tasked to find the “missing” money.

3-minute CBS report:

The fact that the Inspector General has not investigated with subpoenas and testimonies under oath speaks strongly as evidence of criminal complicity with the embezzlers.

A similar condition exists with the Federal Reserve, but we’re allowed a little clarity from this 5-minute video of Congressman Alan Grayson (an economist) asking questions of the Fed’s Inspector General during the Financial Services Subcommittee on Oversight and Investigations in 2009, where she admits she has no idea who received trillions in off-balance-sheet transfers from the Fed:

Both cases are .01% oligarchs transferring public funds to “other than public” recipients; that is, massive theft.

This could never occur within an ethical, law-abiding government, but would occur within a dictatorial empire. Let’s look at connected facts:

Therefore: DoD acts as its Orwellian opposite: Department of Offensive Wars.

Therefore: Government of the people, by the people and for the people acts as its Orwellian opposite: Government of the oligarchs, using the people, and enriching themselves.

Essential economic facts showing .01% looting & lying

Before we consider the obvious solution of We the People seeing the Emperor’s New Clothes facts and demanding arrests to stop these OBVIOUS crimes centered in war, money, and lies, a few more data points of more trillions of our dollars looted from us by oligarchs:

For Americans still zombiefied to “believe” in America, please embrace the reality that 40% of US children live at least one year of their lives in under-measured poverty, while oligarchs most responsible literally laugh in grandiose glee of the poverty they euphemise as “income inequality.” Please absorb this 1-minute reality check:

John Perkins’ 2-minutes of context as an illustration of what the US rogue state executes:

More game-changing economic data that confirm what we receive for economic leadership is literal criminal fraud:

15-minute video of obvious solutions: Mark Anielski and Ellen Brown’s powerful 15-minute response to an interview at the Seizing an Alternative conference (and here, with videos here) with former World Bank economist Herman Daly and co-author John B. Cobb of For the Common Good (video should start at 1:04:43):

81-minute interview with Byron Dale and Greg Soderberg of (the three of us have combined over 90 years of research on this topic):

Demand .01% arrests for Orwellian lies and crimes

Obviously, when the truth is rogue state empire annually killing millions, harming billions, and looting trillions, the foremost response for justice is public call for .01% arrests.


I mean really, this is beyond anyone’s imagination of psychopathic Big Lie crimes (although the facts will show more .01% horrendous crimes when Truth is unleashed).

The categories of crime we can demonstrate beyond reasonable doubt now include:

In just 90 seconds, former US Marine Ken O’Keefe powerfully states how you may choose to voice “very obvious solutions”: arrest the criminal leaders (video starts at 20:51, then finishes this episode of Cross Talk):

StormCloudsGathering’s 3-minute video: Police, Military – Was your Oath sincere?


Note: I make all factual assertions as a National Board Certified Teacher of US Government, Economics, and History, with all economics factual claims receiving zero refutation since I began writing in 2008 among Advanced Placement Macroeconomics teachers on our discussion board, public audiences of these articles, and international conferences (and here). I invite readers to empower their civic voices with the strongest comprehensive facts most important to building a brighter future. I challenge professionals, academics, and citizens to add their voices for the benefit of all Earth’s inhabitants.


Carl Herman is a National Board Certified Teacher of US Government, Economics, and History; also credentialed in Mathematics. He worked with both US political parties over 18 years and two UN Summits with the citizen’s lobby, RESULTS, for US domestic and foreign policy to end poverty. He can be reached at

Note: has blocked public access to my articles on their site (and from other whistleblowers), so some links in my previous work are blocked. If you’d like to search for those articles other sites may have republished, use words from the article title within the blocked link. Or, go to, paste the expired link into the box, click “Browse history,” then click onto the screenshots of that page for each time it was screen-shot and uploaded to webarchive. I’ll update as “hobby time” allows; including my earliest work from 2009 to 2011 (blocked author pages: herehere).

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  • Beverlycadorno

    Google is paying 97$ per hour! Work for few hours and have longer with friends & family! !pa272d:
    On tuesday I got a great new Land Rover Range Rover from having earned $8752 this last four weeks.. Its the most-financialy rewarding I’ve had.. It sounds unbelievable but you wont forgive yourself if you don’t check it
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  • Zartan

    What a Joke! And, the Average American is worried about the people collecting Food stamps! America cannot afford healthcare for its citizens but it can afford this Insanity!

    IS someone RUBBING it in the FACES of all the Lost Sheep!

    • Holleytfulford

      Google is paying 97$ per hour! Work for few hours and have longer with friends & family! !pa200d:
      On tuesday I got a great new Land Rover Range Rover from having earned $8752 this last four weeks.. Its the most-financialy rewarding I’ve had.. It sounds unbelievable but you wont forgive yourself if you don’t check it
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      • Zartan

        Where is the Discus Censor?

        This Rubbish “above” IS PURE SPAM, now where is the IP BAN???? Now, this is interesting because we see how DISCUS works. They do nothing about SPAM and only BAN posters who they do not agree with, government censorship! This same poster has been posting spam for months, and it`s obvious because they have not even changed their Sanford and Son Special Story!

        I know it is not your doing, Carl.

        • Carl_Herman

          We remove such spammers from our blog about twice a day. If you’re feeling it, contact Discus to discuss disgusting spam.

  • Falcon101

    This “Missing” money isn’t missing at all!
    The system has spent this money on black ops in all their illegal wars and private programs that they cannot tell the American people about since their entire corrupt game would instantly dissolve if we knew the TRUTH! This is the price of PURE CORRUPTION!

  • George_Costanza

    The secret space program(s?) had better start paying ‘dividends’ soon.

    Seriously, Quantum vacuum energy systems {‘zero-point’} had better replace coal & nuclear power plants, so we have free electricity in the USA.
    Next, how about new “airplanes” that can take you anywhere on planet Earth, in the time it takes for the country you are going to, to process customs. Say you want to go surfing in Australia, how about two hours? {watch a movie, eat a meal, do some stretching, etc.} Much better than ~20 hours!
    How about a Moon resort? the reduced, 1/6th gravity is fun!

    • Carl_Herman

      Yes; those investments are ours, not just for our .01% psychopaths.

  • sellinpitchforks

    Like the police are ever going to arrest themselves or the military? File that one under not gonna happen. They want those jobs, and naturally must create “reasons” to keep their jobs.
    The “security state” is like a mob protection racket.

    • Carl_Herman

      Perhaps it works like this:
      1. Significant leaders in law enforcement and military recognize and speak the truth.
      2. Some are killed, and this sparks greater numbers seeing the facts.
      3. Over time, more people see the facts until an “Emperor’s New Clothes” event sparks an action.
      4. Once the action attracts public attention, if enough of us are informed, the lies won’t stand scrutiny.

      What is your best response for a solution? What are you sellin, sellin?

      • sellinpitchforks

        I’d say nothing is going to change until law enforcement and the military can’t get paid, or increasingly can’t find jobs. The money system is a fraud anyhow. So nothing changes as long as the king can hire assassins and pay off the guards with his fake money.

  • CatherineAustinFitts


    The $6.5 trillion figure is undocumentable adjustments for DOD for fiscal 2015 ALONE. It is not the total. The total is much more.

    • Carl_Herman

      Hi Catherine! We met at a conference about two years ago. Given DOD budget in direct funding is ~$700 billion/year, isn’t the $6.5 trillion a running total of unaccountable losses? That is, they make the accounting adjustments from all accounts, and irrespective of the amounts/years money was added, yes?

      That said, in the documentation of the $2.3 trillion “missing” from 1999, it seems possible some accounts were closed with those amounts erased from existence. When the books are cooked, it would take significant work to discover the true amounts “disappeared.” I agree that whatever is admitted is just a fraction of the looting.

      • CatherineAustinFitts


        They had another $2 trillion plus of undocumentable adjustments during 2015 that were a part of the $6.5. I have found no indication that the amounts are cumulative, however, between years.

        That said, the information is insufficient and the source is unreliable. I am treating them as annual, not cumulative.

        • Carl_Herman

          Fair enough; thank you, Catherine.

          Of course, an obvious citizen response would be for a full and independent accounting of what happened to that money, with criminal arrests of those responsible for those “missing” funds. The prima facie evidence would be to assume embezzlement since a prudent leader would have enforced standard accounting procedures, and already enacted reasonable actions to recover missing funds.

          • CatherineAustinFitts

            My guess – This is a symptom of significant securities fraud involving Treasury, GSE, agency and related securities. The bailouts cleaned out some – but did not extinguish the problem. It continues to grow. My expectation is the amount of the securities fraud is way beyond these amounts. No one is asking since they think they have sovereign paper.

        • Zartan

          I do not have any trust in government. I am sure those numbers are far greater, by orders of magnitude. I once did some basic accounting for the FED, which required a T/S clearance, I now know why! The government is nothing but a criminal organization. There is much worse going on, things so bad wars could break out if the truth gets out, but then, who knows how many have been paid, “or threatened” to keep quiet?

    • Zartan

      Sure, I would never trust the figures they ( Government/DOD) report. The only thing I am having trouble with is Why NO Downgrades? You know, other nations, all, should be thinking about teaming up and dumping the US into JUNK. Trillions wasted of Foolish Wars … Trillions for Bankers, Trillions for Criminals and not a GD PENNY for the PEOPLE! With Trillions lost and Trillions Blown US Credit should be hovering just over JUNK . I wonder why all the other nations are so quiet, especially Russia!

      Is the American Tax-FOOL paying bribes without their knowledge? I wonder what that has cost?

  • andrew1212

    Pages 116-120 of Tim Weiner’s BLANK CHECK: The Pentagon’s Black Budget (1990) give some interesting backstory to the post-WWII origins of how CIA/DOD became so unaccountable.

    Takes “What’s past is prologue” to new heights!!!

    The 5 pages are viewable in this post (scroll down to comments to keep reading):

  • Guest

    “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 made to AGF data
    during FY 2015 financial statement compilation. … In addition, DFAS
    Indianapolis did not document or support why the Defense Departmental Reporting
    System-Budgetary (DDRS-B), a budgetary reporting system, removed at least
    16,513 of 1.3 million records during third quarter FY 2015.”

    1998 “The DoD continues to lack
    systems capable of compiling financial reports that comply with Federal
    accounting standards and laws, nor will those systems be in place for several
    more years. … a record $1.7 trillion of unsupported adjustments were
    made in preparing the statements.”

    1999 “… $2.3 trillion were
    unsupported by reliable explanatory information and audit trails or were
    made to invalid general ledger accounts.”

    2000 “$1.1 trillion were
    unsupported or improper.”

    2001 Not
    Audited “For FY
    2001, we did not attempt to quantify amounts of unsupported accounting entries;
    however, we confirmed that DoD continued to enter material amounts of
    unsupported accounting entries to the financial data. […]

    DoD did not resolve financial and
    accounting inconsistencies to accurately report Fund Balance with Treasury in
    accordance with Statement of Federal Financial Accounting Standard (SFFAS) No.
    1. We identified $17.3 billion in inconsistencies that affected the accuracy of
    Fund Balance with Treasury as of September 30, 2001. These differences included
    $12.4 billion of disbursement disparities including in-transit disbursements,

    disbursements, and negative
    unliquidated obligations; $3.6 billion in unreconciled differences between U.S.
    Treasury records and DoD disbursing station records for deposits, interagency
    transfers, and checks issued; and $1.3 billion in unreconciled suspense account

    Fiscal Year 2001-
    2/26/02 Not Audited “We did not obtain sufficient, competent evidential matter
    to support the material line items on the financial statements. The Under
    Secretary of Defense (Comptroller) acknowledged to us that DoD financial
    management and feeder systems did not provide adequate evidence supporting
    various material amounts on the financial statements.”

    Fiscal Year 2002- 1/15/03 Not Audited “The Under Secretary of Defense (Comptroller)/Chief
    Financial Officer has acknowledged that (1) DoD financial management systems do
    not substantially comply with Federal financial management systems
    requirements, generally accepted accounting principles, and the US Government
    Standard Ledger at the transaction level and (2) DoD financial management and
    feeder systems cannot currently provide adequate evidence to support various
    material amounts on the financial statements. Therefore, we did not perform
    auditing procedures to support material amounts on the financial statements.”


    ‘Rumsfeld says $2.3 TRILLION
    Missing from Pentagon’, CBSNews

    “Undocumented accounting
    adjustments, totaling $3.1 billion (net value) at year-end FY 2003 and
    $(323.8) million (net value) at first quarter FY 2004, occurred during the
    manual compilation processes.”

    “DOD Systems … As noted above, the
    DOD financial management systems did not substantially comply with Federal
    financial management system requirements, applicable Federal accounting
    standards, or the USSGL at the transaction level.”

    Fiscal Year
    2006 “For FY 2006, the Department’s financial management systems are unable to
    meet all of the requirements for full accrual accounting. Many of the Department’s
    financial and non-financial feeder systems and processes were designed and
    implemented prior to the issuance of GAAP for feeder al agencies. These systems
    were not designed to collect and record financial information on the full
    accrual accounting basis as required by GAAP. Most of the Department’s legacy
    systems were designed to record information on a budgetary basis.”

    “In the Cleveland DFAS office where
    Woodford worked, for example, “unsupported adjustments” to
    “make balances agree” totaled $1.03 billion in 2010 alone,
    according to a December 2011 GAO report.

    In its annual report of
    department-wide finances for 2012, the Pentagon reported $9.22 billion in
    “reconciling amounts” to make its own numbers match the
    Treasury’s, up from $7.41 billion a year earlier.”

    “– Outside audits by a certified
    public accounting firm of the Defense Finance and Accounting Service’s books
    turned out to be shoddy, according to the Pentagon’s own accountants, although
    that same CPA firm had endorsed the agency’s previous fiscal records for years.

    The Defense Department’s Office of
    the Inspector General, which was brought in to watchdog the audit, not only
    helped squelch the critical work but also allowed the outside firm to be paid
    despite the serious questions about the quality of its work.“

    “Government auditors say some $61
    billion was spent on reconstruction projects in Iraq from 2003 to 2012. At
    least 10 percent of the money cannot be accounted for. Some 15 percent of the
    money spent, or roughly $8 billion, was wasted.”

    “DOD, State, and USAID should each
    establish an Office for Anticorruption to provide support, including advice on
    anticorruption methods, programming, and best practices, for personnel in
    contingency operations.” –September 2016, Special Inspector General for
    Afghanistan Reconstruction Corruption in Conflict Lessons from the U.S.
    Experience in Afghanistan

    “Taxpayers might have benefited from
    honest audits of the Defense Finance and Accounting Service.” -McClatchyDC,
    11/22/13, ‘Pentagon’s bosses thwart accurate audit of DOD’s main accounting

    FED largess:

    trillion of financial assistance
    -July 2011 GAO Report to Congressional Addresses FEDERAL RESERVE SYSTEM, table
    8, page 131

    “Most people think that the big bank
    bailout was the $700 billion that the treasury department used to save the
    banks during the financial crash in September of 2008. But this is a long way
    from the truth because the bailout is still ongoing. The Special Inspector
    General for TARP summary of the bailout says that the total commitment of
    government is $16.8 trillion dollars with the $4.6 trillion already paid out.
    Yes, it was trillions not billions and the banks are now larger and still too
    big to fail.”

    “The audit of the Fed’s emergency
    lending programs was scarcely reported by mainstream media – albeit the results
    are undoubtedly newsworthy. It is the first audit of the Fed in United States
    history since its beginnings in 1913. The findings verify that over $16
    trillion was allocated to corporations and banks internationally, purportedly
    for “financial assistance” during and after the 2008 fiscal crisis.”

    “Do I play ball or do I do my job?” -Neil Barofsky, former
    Special Inspector General for TARP, $700 billion Troubled Assets Relief Program

    “In the end, Hartung says that the
    military’s stature and almost holy status make focusing on accountability
    difficult. If lobbying doesn’t work, he says, they can always “wrap themselves
    in the flag and say this is necessary for defense. But if people don’t poke
    into the details,” they won’t “find out that, in fact, not every penny being
    spent is sacrosanct”.”

    ““Where is the money going? Nobody
    knows,”” -REUTERS, 8/19/16, ‘U.S. Army fudged its accounts by trillions of
    dollars, auditor finds’