The Case of the Missing Military-Industrial-Complex Money

James HallJames Hall
21st Century Wire

When Major General Smedley Butler made his case, “War is a Racket” he did not pull any punches…

“The normal profits of a business concern in the United States are six, eight, ten, and sometimes twelve percent. But war-time profits – ah! That is another matter – twenty, sixty, one hundred, three hundred, and even eighteen hundred per cent – the sky is the limit. All that traffic will bear. Uncle Sam has the money. Let’s get it.”

The business of military procurement has multiplied since his fateful revelations.

Not satisfied with fair profits or feasible competition, the practices of the defense corporatists illustrate one aspect of waste, graft and systemic bribery. William D. Hartung describes the consolidation and expanse of a select group of companies in the paper, The Military-Industrial Complex Revisited: Shifting Patterns of Military Contracting in the Post-9/11 Period

“Many of the same companies that benefited from increased Pentagon and war spending were top contractors for other security related agencies. For example, Lockheed Martin was not only the top contractor for the Pentagon, but it also ranked number one at the Department of Energy; number eight at the Department of Homeland Security (Boeing was number one); number two at the State Department; and number three at the National Aeronautics and Space Administration (NASA). Contracts let by these agencies were only a fraction of the levels awarded by the Pentagon, but they were significant nonetheless. For example, the Department of Homeland Security issued $13.4 billion in contracts in FY2008, NASA $15.9 billion, the State Department $5.5 billion, and the Department of Energy $24.6 billion.”


DONALD RUMSFELD: On Sept 10, 2001, he admitted, ‘There is a $2 trillion hole in the Pentagon’s accounting”.

This dramatic growth in budgets is even more significant, when viewed in the context of world expenditures of other counties. Leaving aside the relative merits of the dangers and risk of external threats, the gigantic enterprise of fostering the biggest military apparatus in history has made select factions rich at the expense of the many.

Jonathan Turley in Pentagon Plugs: New Study Finds Pentagon Has Hidden Trillions In Missing Money And Equipment, references an example on how the overall avoidance of financial accountability, outright fraud and intentional concealment operates.

“A new report has detailed how the military has cooked the books to hide trillions, that’s right trillions, in missing money and equipment. The military calls them “plugs,” a curious term for fraud. These are knowingly fake figures used to hide the fact that there is no accurate record of the money.

The plugs are generally the work of the office of the Defense Finance and Accounting Service, the Pentagon’s main accounting agency. Required to complete an audit, the staff simply faked the numbers.”

Reuter’s reports on a Special Report: The Pentagon’s doctored ledgers conceal epic waste.

“Over the past 10 years, the Defense Department has signed contracts for the provision of more than $3 trillion in goods and services. How much of that money is wasted in overpayments to contractors, or was never spent and never remitted to the Treasury, is a mystery. That’s because of a massive backlog of “closeouts” – audits meant to ensure that a contract was fulfilled and the money ended up in the right place.”

Now trillions are sums that are unimaginable The Department of the Treasury acknowledges that U.S. gold reserves (if you believe their figures) total $11,041,059,958.16 as of their Current Report: January 31, 2014.

An eleven billion dollars equivalent is a mere drop in the bucket to the monies allocated to the military and homeland security. Taxpayers are regularly deceived about the costs. Congress is kept in the dark about black programs. And the war racket keeps funneling and siphoning off unknown sums to accounts that only a super computer can track.

Corporatocracy: How the Corporate Welfare State Divides and Conquers is a video by journalist James Corbett (below) that provides an insightful analysis which establishes a surreal account how the oligarchy operates. The financial shenanigans of corporatists contribute to the interlocking directorates, which run the money pit that keeps the empire operating.

A rational reform of a depraved money laundering arrangement is impossible without a fundamental repudiation of the internationalist foreign policy doctrines that permeates the State Department. Funding advance technological warfare platforms that are unheard of to even congressional oversight is profoundly unconstitutional.

When such practices become routine, the economic incentives breed crooked abuses. The obligations for responsible public policy are methodically destroyed, when transparency is eliminated.

The Washington Blog provides several useful sources that document the extent of the problem in “$8.5 TRILLION In Taxpayer Money Doled Out By Congress To The Pentagon Since 1996 … Has NEVER Been Accounted For” and sums up with a bleak assessment.

“The Pentagon is the only federal agency that has not complied with a law that requires annual audits of all government departments. That means that the $8.5 trillion in taxpayer money doled out by Congress to the Pentagon since 1996, the first year it was supposed to be audited, has never been accounted for. That sum exceeds the value of China’s economic output last year.”

Evidently, the elites that benefit from bilking appropriations and the board members that steer the defense contractors want the con to continue. For all the money directed towards maintaining the war machine, our actual security become less secure.

Banks laundry ill-gotten gain, as prevailing practice, in the normal course of business because the arm merchants are protected players in the trade. The reprehensible circle that the dogs of war unleash the cash flow from their illicit drug sales, through arms sales, allows for the smooth transfer of hidden blood money into number accounts.

Such an organized system of mutual payoffs greases the ever growing industry of fear and destruction. All the missing money is buried in the unknown cashes of subterranean tyranny. Creating false flag threats allows for imaginary scourges to be new enemies. Protection from such manufactured foes is the real business of the military-industrial-complex.

So, when more details surface about the lost and unaccounted military funding money, it is just part of the price of keeping you safe.

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  • dawggone

    Black budgets for defense-type of super secret programs will be the recipient of most of that missing money. So, it is not really missing. They just don’t want us knowing where it went.

    If curious individuals would only dip a toe into the continuing episode of the UFO phenomena, they would find in the recent decades and starting about the time of Reagan’s Space Defense Initiative, so-called “Star Wars,” the appearance across the US of a remarkable new type of mystery craft. The became known as “black triangles” and they had all of the traditional characteristics of the typical round UFOs seen shortly after we released the power of the atomic bomb.

    These new craft are a result of an intense program to build equipment that utilized the mysterious physics of the original UFOs, which by the way, are genuine alien craft from some other world.

    Not only do we have these extremely powerful new weapons–and they are that in a major aspect of their utility–but they are the reason why the shuttle was retired with no replacement from NASA.

    It is a mistake to think that the US is not solidly at work in space but is allowing the Chinese, India, Japan and whomever else to leap ahead of us in space exploration. With the aid of the very versatile triangles which are also space-capable, we obviously have bases on the Moon and possibly have been to Mars. Most people are also unaware that the US has an active Space Force that encompasses all of the armed services. Part of the service plan for the Space Force is the control of space out to and including the Moon.

    So there, folks is where trillions of that money has gone. Do not assume, therefore, that money has been totally wasted. While YOU may not know what I’ve just put down here, the Chinese certain will know. And if you ever wonder why
    the Chinese have not yet used their economic clout to destroy our country
    or in other aggressive manners, look no further for a likely deterrent than
    fleets of the secret triangles that by this time have enough firepower to
    immediately halt any nation that attempts to cause harm to the
    US.

  • Jeff Murray

    how can we be expected to set up global government for global private central bankers if we don’t have a black budget?

  • CMRedwood

    Important topic because as our economy contracts there will be some public pressure to cut military expenditures rather than austerity for the masses – the usual guns vs. butter debate. HOWEVER, this is especially compelling at this juncture since we KNOW there are no real adversaries and the Global War on Terror is elite theater despite efforts by TPTB to (1) manufacture fake or exaggerated tensions between the US and China, Russia, and satellites such as Iran AND (2) create a meme of new “roaming international terror cells” out of the Syria terrorist cesspit ….. all to justify the bloated military budget and surveillance police state.