Oh Look! It's a Billion Wasted!
The Market Ticker - Commentary on The Capital Markets
Logging in or registering will improve your experience here
Main Navigation
Topic list
Sarah's Resources You Should See
Sarah's Blog Buy Sarah's Pictures
Full-Text Search & Archives

Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.


The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

Considering sending spam? Read this first.

2018-02-10 11:00 by Karl Denninger
in Corruption , 225 references Ignore this thread
Oh Look! It's a Billion Wasted!
[Comments enabled]

Wow, man, it's misdirection again -- on purpose!

A new audit about a Pentagon agency losing hundreds of millions of dollars is reported by Politico as an “exclusive.” While that’s technically correct, a government agency losing or wasting or misplacing millions, billions and even trillions of dollars (this is not hyperbole, folks) is nothing new.

Politico’s report is a reminder of what bloated, unaccountable government gets you.

Uh huh.

By the way, the report is true.  And while it should enrage you that our government treats money so cavalierly, given that you pay taxes, and they are running a huge deficit anyway, it is an utter misdirection, and an intentional one, to keep your eye off the ball when it comes to where the structural problems are in government spending that, if not addressed now, will cause the collapse of our economy and markets.

That's in health care.

Most problems that have some level of complexity to them can be "80% solved" quite easily.  The last 20% is really hard, but it's also where all of the attention is focused when it comes to the budget.  That above-referenced article, which managed to hit the top line of Faux Snooz, is just one example.  It focuses your attention on a very real, but mathematically immaterial, part of the problem -- and one that is both diffuse and common enough that actually fixing all of it will be quite hard.

As I've pointed out in my article "The Low-Hanging Fruit" there is a very simple fix for a $400 billion+ waste and scam in government spending that takes place every single year.  It also takes place in the private sector as well, and likely wastes at least as much there, so we're talking close to a trillion dollars -- each and every year.

It's not diffuse, and thus it's easy to address should people care to because it can be fixed with one policy change aimed in one direction instead of having to spread a lot of effort and attention all over the millions of government workers and thousands of agencies.

When have you ever seen a Faux Snooz -- or CNN for that matter -- article on that point?  Never, and the reason is simple: It would actually put a monstrous dent in the deficit, it would do it immediately, it's focused and easy to do and yet it would also stop a huge scam that is not only making a lot of people very rich it is also killing and maiming a sizable number of Americans each and every year.

This makes it unacceptable to actually do unless you, the American public, rise up and demand it, being willing to enforce that demand through any means necessary.  Why?  Because if it's done then all the people who profit mightily from that near-trillion dollar annual expense no longer steal that money.

That tens of thousands of Americans also don't die every year as a consequence of that scam doesn't matter to those in the medical and pharmaceutical fields who make that trillion bucks, and the hundreds of thousands of people who are employed stealing it and maiming or killing said Americans lose their jobs.

Thus it is very important that the "press" never talk about that issue and God forbid no lawmaker brings it up either because should any such debate happen in the public and traction be gained then a whole lot of theft will stop immediately.

Oh, and your Grandma or Dad might not only live longer, but much better as well -- and we can't have that especially when we can rob a trillion dollars a year at the same time we shove Granny in the hole.

Go to responses (registration required to post)

User: Not logged on
Login Register Top Blog Top Blog Topics FAQ
User Info Oh Look! It's a Billion Wasted! in forum [Market-Ticker]
Posts: 975
Incept: 2008-12-17

Report This As A Bad Post Add To Your Ignored User List
I have seen resumes that show Lt Col/Col's with staff jobs that gave them authority over budgets in the 100 million to quarter billion range. That is a insane amount for what are essentially mostly mid upper managers in non combat/point of spear roles.

Knowing that, does the fact that a billion is lost surprise me? No, in fact what surprises me is that dozens of them (billions) in aggregate.
Posts: 151591
Incept: 2007-06-26
A True American Patriot!
Report This As A Bad Post Add To Your Ignored User List
And none of it matters in the big picture.

Winding it down.
Posts: 99
Incept: 2010-06-27

Lawrence, KS
Report This As A Bad Post Add To Your Ignored User List
LOL! The linked article is pretty funny, in a twisted sorta way.

Dr. Mark Skidmore... whose specialty is analysis of how many moves in organizations... heard a radio interview of Catherine Austin Fitts talking about the missing trillions at DOD and HUD... and thought it sounded kinda crazy.

So, he started poking around with the numbers... and found a few trillion in undocumented expenditures at DOD... and thought, "Well now, THIS is interesting."

He put together a research team of graduate assistants... and did a deep dive on HUD/DOD expenditures... the number kept going UP... and by the time they were done, they had found 21 TRILLION in undocumented expenditures, from 1998-2015.

About 20 Trillion at DOD... about 1 Trillion at HUD. Actually a bit more than our entire national debt.

For an absurd read, just do "skidmore 21 trillion missing" in web search...

It's SO absurd... it's almost unbelievable. I wonder if they spent it on stuff they don't want us to know about?


Login Register Top Blog Top Blog Topics FAQ