Will Defense Run the "Real" Stimulus Package?

In fiscal 1999, the Department of Defense was “missing” $2.3 trillion dollars. To put that amount of money in perspective, it is approximately 3X what President-elect Obama is .

In fiscal 2000, the Department of Defense was “missing” $1.1 trillion, about 1.5X what President-elect Obama wants to invest in America.

So between October 1998 and September 2000, the Department of Defense was “missing” $3.3 trillion. Because the amount of money disappearing is so enormous, years ago we started a archive of articles on the “missing money” to try to keep up with the trillions sliding out of the federal accounts.

From 1997 to March 2001, the Under Secretary of Defense (Comptroller) who served as the chief financial officer for the Department of Defense was William J. Lynn III. In that position, he was the chief financial officer for the Department of Defense and was the principal advisor to the Secretary and Deputy Secretary of Defense for all budgetary and fiscal matters. That means he was the person responsible to make sure no money went missing and that the Department of Defense published audited financial statements — which it failed to do in those years and every year since.

When Mr. Lynn left Defense in 2001, he joined DFI International and then in 2005 became the chief lobbyist for Raytheon. He was replaced at Defense by Dov Zakheim.

Today, President Elect Obama nominated William J. Lynn III as the Deputy Secretary of Defense. The press release said, “Lynn brings decades of experience and expertise in reforming government spending and making the tough choices necessary to ensure that American tax dollars are spent wisely.”

Obama also nominated Robert Hale to Lynn’s former position,  Under Secretary of Defense (Comptroller).  From 1994 to 2001, Mr. Hale served as the Assistant Secretary of the Air Force (Financial Management and Comptroller). That means that Hale, same as Lynn, was in charge of the money when all the money disappeared.

I guess the guys who got the last $3.3 trillion were pretty happy with Mr. Lynn and Mr. Hale and decided to bring them back.

Which brings me to the question I keep asking, “Where is the money and how do we get it back?


  1. I come from and USAF family. We have alot of worry about how jobs/equitity/skills of americians are getting erroaded. our $XXX,XXC.00 net worth had been sucked downward. I have been studying to be a webmaster, and now I can’t find a position in that field. I have been job hunting for 2 years, and living on my saving here in Hillsboro, Or.

    If my dad the “Colonol” – ( Col. Brant Holme ,Jr USAF) learned of the missing Defense monies, He would be on the phone to Mr. Gates to ring his neck. Col. Brant knew a man named Henry Morganthau,jr in the state dept. way back in the 1940’s.

    any way, I don’t want to loss my faith/trust in investing and working for my family. But I am getting very mad. For instance. The New Digital TV’s, hell they can’t gain a good signal (Decode) off the air, and replay on the Tv display. You just get pixel shit. WHy is that???? The USA does not need Digital TV. Hocky Pock Hoouey! Non-proven technology-just got rammed down our necks.

    and the Tarp bail out is a werid bunch of Hoouey too. Where is our Money going to?? Wall street is werid all of 2008, and now too. An investor can’t even trust charting technigues.

    Ok I will calm-down, I am glad I learn about this missing chunk of $$ from Mrs. K.A Fits. Thank you for being a great Americain patriot for US investors.

  2. Catherine,

    This “missing” $Trillions swallowed by DOD begs the question:
    Who is running the “Government” or more precisely “our” micro/macro economic policy?

    The missing funds at least defend a “parallel” USA command and control; is this the proverbial industrial military complex warned about by the POTUS Eisenhower?

    Such wealth redistribution leads me to the conclusion that feudalism still exists – though with the possibility of some quality of life movement by applying personal productivity and prudent spending / saving plans.

    Is the solution dividing the USA into regions (east, central, and west) each with its own executive to return to federalism while maintaining a common defense and monetary system?
    This could be accomplished peacefully by Constitutional convention while utilizing our current government structures / DC locations / 538 federal legislators.

    Regardless, the USA will survive and heal from this self inflicted wound as we wisely apply eternal vigilance. God save the USA.

  3. The true former Comptroller of the Defense Dept in 2000 who stole 3.3 trillion dollars out of its budget was Rabbi Dov Zakheim, and not as now some newsmedia and you allege, William J. Lynn. For the truth kindly type in Google search, finnics7 or http://finnics7.blogstream.com. When in blog, scroll down a tad to link, Dov Zakheim. Also in google search type Dov Zakheim. Also see, http://www.debatebothsides.com/showthread.php?t=56508. For your blog to be trustworthy then you will kindly state the true Comptroller–and thief of 3.3 trillion–was the good Rabbi Zakheim. Dov Zakheim stole 3.3 trillion while Bernie Madoff stole only 50 billion dollars. Dr. Will PS. I sent a copy of this comment to my email address, for my record of it. So we wait your kind coreection. Thank you.

  4. The true former Comptroller of the Defense Dept in 2000 who stole 3.3 trillion dollars out of its budget was Rabbi Dov Zakheim, and not as now some news media and you allege, William J. Lynn. For the truth kindly type in Google search, finnics7 or http://finnics7.blogstream.com. When in blog, scroll down a tad to link, Dov Zakheim. Also in google search type Dov Zakheim. Also see, http://www.debatebothsides.com/showthread.php?t=56508. For your blog to be trustworthy then you will kindly state the true Comptroller–and thief of 3.3 trillion–was the good Rabbi Zakheim. Dov Zakheim stole 3.3 trillion while Bernie Madoff stole only 50 billion dollars. Dr. Will PS. I sent a copy of this comment to my email address, for my record of it. So we wait your kind correction. Thank you. PPS Corrected mispelling, news media and correction.

  5. Will:

    Various reports list Lynn as leaving in March 2001 and replaced by Dov Zakheim. The first link you post has no details on dates and the second does not work.

    Before reading your comment, I posted Zakheim in succession because of the criticality of his role.

    For more see our “missing money” page linked in the blog post.


  6. For a while this AM I had HP tek take control of my computer to solve font size problem (too large) when I edited my blog with Microsoft Office Word. And he showed me how. So during that time period you may not have been able to access my blog clicking on link I gave, http://finnics7.blogstream.com/. But you can also access my blog by typing in Google search, finnics7. Now I apologize for getting year when the good Rabbi Dov Zakheim made the heist from Pentagon of 3.3 trillion. You are right. The good Rabbi did the heist after Lynn had left as comptroller at Pentagon, March 2001. The good Rabbi Dov Zakheim did the heist sometime after March and before September, 2001. And the day after Rumsfeld was on CBS stating there was a thief inside the Pentagon sending trillions of Pentagon monies overseas (I wonder where?) the Twin Towers were attacked (9/11). It is extremely important to note that the adjacent WTC-7 building where all Swift Code records of all monies sent overseas–and other crucial records–was ordered “pulled” by the lease owner, Larry Silverstein, After an hour or so when I come back to your blog and click on the links I have put in they do work, open. In any event, thank you for helping inform the world’s people about many important matters. Dr. Will. PS. I wonder where the good Rabbi is.

  7. Will:

    Having served as the FHA Commissioner with fiduciary obligations for $300 billion in assets and liabilities and annual originations of $50-100 billion, I can assure you that one person can not steal $3.3 trillion and they certainly can not do it in a short period of time several years after it was reported missing.

    We are looking at a SYSTEM. The SYSTEM is very deep and very old. It involves thousands of people, numerous government agencies, including intelligence agencies, banks and defense contractors, not to mention societies and secret societies.



  8. Lots and lots of paper (called money) which in a real reality or a right reality would have (probably) negative value. Its not the money, what do a bunch of dumb cattle being herded into (eventually) new gas chambers need with worthless paper. Go to youtube.com and type in Fema camps and start a journey towards the very ugly truth. New World Order of greedy power crazed monsters that imagine complete control but will never obtain this goal. Nazi Germany all over again except much worse. Lets hope I am wrong but I am not. Hard to see the real reasons behind this insane insanity when you consistently focus on bullshit.

  9. Do you want to know…I mean REALLY know who is behind it all?

    Google: six pointed star mark

    Youtube search: shriner lucifer

    Google: D.C. jerusalem masonic shrine

    Youtube search: Biden powell

    Youtube search: generated crisis

    Google: talmud truths

    They you will know who is running the ‘show’. They are the ones EXACTLY prophesied in the Holy Bible to be in power at this late hour.

    Yawheh bless you, dear readers, in Yeshua, Jesus Christ


  10. I had to correct a link as I had a word in link that should not have been in it. I appreciate your intelligence. But the good Rabbi did not steal 3.3 trillion dollars from Pentagon several years after it was reported missing. So I do not understand what you mean by theft done several years after money was reported missing. In any case, all the good Rabbi Dov Zakheim had to do as Pentagon Comptroller was “arrange/order” between March and September 2001 a key person–or alone if he knew the code–to send 3.3 trillion dollars to a foreign account by Swift Code through a computer(s) in WTC-7 building, http://www.youtube.com/watch?v=oj1rT4bszWg. In fact you have this CBS clip on YouTube in your Aug. 10, 2008 blog, where is the missing money?

    But you may be correct in directing our attention to the possibility of the theft occurring when William J Lynn was Pentagon Comptroller, http://www.raytheon.com/ourcompany/rtnwcm/groups/public/documents/content/bio_lynn.pdf. The theft would have occurred before the good Rabbi could do the theft. Hm? Is it any wonder that Obama wants Lynn close by to learn how truly mega big theft of tax payer dollars is done, http://www.huffingtonpost.com/2009/01/09/obama-picks-defense-lobby_n_156536.html. Does Obama have a ready foreign account? Hm. Or does the “handler” of Obama want to “order” where monies must be sent; his handler or controller being soon to be Chief of Staff Rahm Emmanuel, http://www.voltairenet.org/article144314.html. Will

  11. Catherine what country can I move to that doesn’t steal the publics hard earned money?
    I know this is a common paradigm and I know that it can’t be stopped any more that I can stop a train with my nose.
    It’s painfull not being a zombie and having to see this happen in plain sight while the masses
    are thanking the perpetrators for a job well done.

  12. Where is the missing money? Clearly this is graft, corruption, cronyism. Have you ever read the book called Black Budget: Blank Check? Money was being wasted back then on 1000 dollar screws and such to build an airplanes that couldn’t fly in the rain. The other issue is the secret black budget stuff which is abused so that a bunch of greedy folks can rob the American people.

    Obama should get rid of all the Black Budgets, CIA and Pentagon both. He should shut the Pentagon down for a month to audit their books and then fire about 75% of them. Then he should cut our defense budget down to a tenth which is what China’s is. We can’t eat bombs. During a Depression we need to focus on people not the war machine.

  13. Catherine:

    Suerly loss of this kind is the product of either a massive systemic “failure”, or deliberate fraud on a massive scale, perhaps involving a sort of “shadow DND”. Such a scale suggests a more sinister “conspiratorial” angle wouldn’t you agree? How does that much money go missing without leaving any footprints in the sand? On the other hand, any group that could pull this off, and cover their tracks year after year (to this present moment), is literally capable of re-engineering reality. Such a group would be (for all intents and purposes) “all-powerful”. Folks that pose a serious risk to such arganization would simply disappear. How on earth does one defeat this kind of power and hold “them” accountable?

  14. My comments will be far and away from your typical and you will tend to think them too outlandish, I’m afraid. The key to the missing money can be glimpsed in the alien-invasion movie Independence Day. Jeff Blum’s movie father says, “You don’t really think they paid $400 for a toilet seat do you?” Those trillions of dollars and many more from many other years have gone to build incredible weapons. Some of these are the black triangles that are seen increasingly since the mid 1980s. (Google Belgium Air Force mystery triangle, etc. or my article.) These are our craft that have been reversed engineered from real UFOs. The shuttle and space station are just shams. The English hacker is correct, we have a space force and beam weapons stationed out there that will destroy in seconds a about any aircraft, missile or ship at sea. We would never had allowed them such money if they had to ask for it in the budget. Was their methods the right thing to do? I fear that if we did not have those weapons that our enemies obviously would know about, those enemies would be destroyed us one way or another by now. Since those enemies are also working on their own versions, I fear that a preemptive war may be eventually trigger to “bomb them back into the stone age” and thus prevent them from becoming a threat. I don’t like that possibility, but militaries seem to be fond of that strategic move these days.

  15. What a revealing comment, Catherine…

    “We are looking at a SYSTEM. The SYSTEM is very deep and very old. It involves thousands of people, numerous government agencies, including intelligence agencies, banks and defense contractors, not to mention societies and secret societies.”

  16. Just wondering how much of that money went into black ops. Things like HAARP, mind control, spy networks on American citizens, I imagine I COULD GO ON AND ON.


  17. Catherine,
    Heard you many times on the radio George Nory’s program while driving home. You are the best and you need to ask listeners to forward your site to friends. I send links to your blogs to over friends – business owners, bankers, accountants etc. Thank you for your work.
    Jerry Pavelec

  18. The Rabbi is currently hard at work for Booz Allen…(gd luck to B.A.)

    OK, that piece of info gets my one swing at bat for 2009, so wish me luck.

    1.-There is no money in the US Treasury.
    2.-The Federal Reserve balance sheet looks like this:
    On the left side, there is nothing left. On the right side, there is nothing right.
    3.-The Greenbriar Resort in White Sulfur Springs, Wt Va. has a Mt Weather type facility built
    for the Barney Frank family, and Chris Dodd, Nancy Pelosi types.
    4-Mt Weather , located in Thurmont, Md. has blast doors protecting the cavernous interior capable of housing thousands, that take 12, repeat TWELVE minutes to close.
    4. I recommend you dear readers of this unsolicited blog response, go to the Luray Caverns, located
    in Luray,Va and check out mother nature’s very own Mt Weather.

    It is a mile deep of solid rock and only costs about $5-6 bucks to take a tour. Once down there, you can hide behind a huge boulder, and ride out the Obama first term….(no joke)

    Good luck everybody.

    Walter Reed

  19. There is obviously tremendous Evil afoot. The American Citizen allows this Evil to reign unchecked. Black Budget monies are divided among culprits such as Sandia National Laboratories and the DOE. Nothing is EVER for the Average Citizen. 90% of all Americans are seen as Useless, Expendable, Eaters. It is like George Orwell’s “1984” come to life. “Hoaxes” like Alternative 3 have actually been achieved. Even an Omega-Level event, such as a Asteroid impact would not end this corrupt nightmare.

  20. Top banks accused of laundering money for Iran


    Ten international banks including British-based Lloyds laundered “billions of dollars” for Iran through New York banks, Manhattan District Attorney Robert Morgenthau announced Friday. The scheme helped Iran turn its dirty money into greenbacks, which it could then use to buy goods prohibited by international sanctions.

    Some of the money went to fund terrorist groups like Hamas and Hezbollah, and to help Iran get materials, including tungsten, for long-range missiles, sources said.

    “This is one of the biggest investigations we’ve ever conducted,” said Morgenthau.

    Lloyds admitted it laundered $300 million and agreed to pay a $350 million fine and open its books to investigators. If records show that the bank knew it was helping Iran break international law or foster terrorism, Lloyds could face criminal prosecution, authorities said.

    None of the other nine banks was identified because they are working out similar agreements with Morgenthau’s investigators. The CIA will also review the bank records.

    Revolutionary France
    January 11th, 2009 at 4:33 pm
    Time for pitchforks.


    Dr. Jim DeCosta
    January 11th, 2009 at 4:43 pm
    I think you’re going to be reading a whole lot more soon in re: the role of abusive naked short selling and money laundering. Remember that the bad guys need to “collateralize” these debts with cash or securities. The investor’s money stays with the purchasing b/d for him to earn interest off of until delivery is achieved. The bad guys doing the selling need to post collateral at their own clearing firm to protect their clearing firm’s caboose. Nothing is theoretically more risky than the naked short selling of penny stocks and the clearing firm knows this. Dirty money works just fine for “collateralization” purposes. As the share price predictably tanks the collateralization necessities also do and this new “clean” money can flow back offshore. Our b/ds are theoretically supposed to be monitoring for money laundering activity by filing “suspicious activity reports” or “SARs” due to the mandates of “the banking secrecy act”. I think it was E-trade just paid a measly 1 million dollar fine last week for not having a mandated anti-money laundering program from 2003 all the way until 2007. Some securities scholars have proffered that a b/d with no anti-money laundering program in effect might be the ideal b/d to use in abusive naked short selling crimes. We’ll see. How in the heck can you “forget” to have a mandated anti-money laundering for 5 straight years? I think I tried to make this point either today or yesteday: where do you think that b/ds charging $7 per trade are making their money? Some are making it through the interest “earned” during that period in which the NSCC will pay you to “wait” for the delivery of the failed to be delivered shares instead of opting for a buy-in.

  21. mhelburn:

    Your concerns about money going to Iran, Hamas and Hezbollah are probably misplaced as none of those groups has harmed you anywhere near what your own crooked Military Industrial Complex (that Eisenhower warned about) has.

    SO???? Who are the real terrorists? You don’t have to look very far. Conservative Islam would have chopped off the heads of most Wall St bankers by now.

  22. In India Mr. Ramalinga Raju and his brother ran for several years India’s biggest Ponzi scheme. In the scheme they used their majority owned and India’s largest computer company, Satyam. But on Friday, 1-9-09, they were arrested and JAILED until at least 1-23-09. Yet America’s biggest Ponzi schemer, Madoff, gets no slammer bed and stripes, but lives in his penthouse in silk shorts! See; http://www.theaustralian.news.com.au/business/story/0,28124,24899133-36418,00.html. Will

  23. What was going on when this money went missing between 1998 and 2000? I recall the Republicans furious over the “peace dividend.” Wasn’t Clinton cutting back on defense then? Did they have to steal to cover their own business. What I’m getting at is the adage that when the tide goes out we see who is not wearing a suit.

    I think you’re right about it being a system. Those who were entrusted with our defense instead used their position to steal from us and betray us. I wonder if there are people in the intelligence/defense who subscribe to their code of honor enough to help right this wrong.

  24. I really don’t get it….well that not right, I do get it. 3 trillion dollars did not just vanish, like any good business deal it was used to sweeten the pot ( excuse the poker reference) to obtain something someone wanted. The question what were the somethings and who are the someones doing business. You can look at it as a investment that will never pay off in the intended way.

    Hunting for a 3 trillion dollar treasure is just a grand adventure or mental masturbation. So here are my kudos to you Catherine. I await your findings with glee. This puzzle is really a matter more suited to those who know the players and the game.

    PS I love your appearances on coast to coast

  25. Catherine,
    Is it possible that the money went to build up underground cities like Cheyenne Mountain and Raven Rock where the connected folks hope to ride out the 2012 global catastrophe and resultant population riotings? Who knows how much other secretive underground construction has been going on?

    I have read (and saw You Tube videos) that between now and 2016 our Universe will be passing through the center of the Milky Way’s gravitational field and that, at its peak in Dec 2012, it will cause a temporary loss of the Earth’s magnetic fields which will then allow Solar Wind destruction of power grids (NASA says to plan for two months of no power). There is also supposedly the potential during that time for a pole shift, which will really wreak havoc across the globe.

    Maybe I am just being paranoid, but something strange is going on with all this wealth destruction/disappearance and bailouts. Are we spending money like there is no tomorrow because there very well may not be a tomorrow as we now know it?

  26. I have been thinking it would be better accounting wise if the state would retain larger amount of the taxes and take care of their need as health insurance, unemployment, business growth and so many other areas now in charge of the federal government. The fed should have the amount they need for defense and Transportation, commerce, trade and public land management.
    I believe micro economics would allow better control of resources and give more power to the states to develop their economy independently and nationally.
    We could have grop of states cooperating for example to develop a new transit rail road making easier to travel and reducing use of cars. Also those states that can produce solar energy could sell to other states near them.
    I think that a new model of business should could emerge based less on profit and more on saving and finding the more practical and frugal way to produce will actually create better paying jobs and in long term save resources.
    I see to much waste for sake of free enterprises yet no national plan to direct them or coordinate their efforts for maximum effectiveness and return.
    While the underlying idea could be cooperative and socially better it will not allow for large monopoly of resources for the sake of large profit at the expenses of the environment, job loss or
    waste. When we pay someone not to produce there is something inherently wrong with the system.
    We manipulate the market for the sake of the few yet it has dire consequences in other areas never intended.We have no free market where there is manipulation,lack of ethics and interest groups with an agenda.
    A last note for the banks, until we get rid of them people and the Fiat money system we will be slave of the compounding interest forever and never own anything.

  27. Dan:

    I believe that the likely use of the money is:

    1. Secret projects — including invisible weaponry not widely understood, including electromagnetic weaponry and weapons that can be delivered from satellites and space.

    2. To finance the New World Order and various factions, including the transfer of assets from sovereign governments to the NWO and to shift liabilities back into governent

    3. To fund the derivatives used to manipulate markets and to shift control of real assets to the NWO and shift the general population into ownership of paper assets and to ensure domination of financial systems by centralized institutions.

    4. Personal wealth of people involved in engineering 1-3 above, both knowingly and unknowingly

    5. To shift investment out of countries with aging populations and into countries with young populations

    6. To ensure that the NWO has sufficient control of the populations in the first world so that it will not lose control when various types of medical and energy technology are unsuppressed.

    7. To prototype various forms of population reduction.

    These things are never just one thing…


  28. Hi Catherine,
    I think you have the list done pretty well. We often see evil in these things and wonder what sinister plans are afoot for the human race.
    However, lets take a step back for a second and try the other side of the coin. The human race is a plague upon the planet; consuming without restraint, polluting without regard for their own safety. The governments are mostly secretive buffoons who couldn’t find their own um knees in the dark with both hands and a flashlight. The educational institutions are bent on self-delusion and herd-shaping. Perhaps the ‘sinister’ plans are really possible salvation of the planet Earth by destroying our economy to moderate our behavior. Too bad they didn’t think of a simple sales tax instead….
    We can’t know WHAT they are planning without opening records in government.
    I think that is the only hope we can have for the new president, who stated “and do our business in the light of day – because only then can we restore the vital trust between a people and their government.”

    Here’s to you, Catherine, and the good work you are doing. “Cheers!”

  29. Obama’s stimulus plan should also envision changing regulations & economic policies to have short-term & long-term effects on unemployment, middle-class and the market stability. Strengthening the middle class and creating more job opportunities should be the primary objective of the package, rather than handing the blank check to the Wall Street and failed big corporations.

  30. We’ve seen many instances of pump and dump in various sectors, Several pump and dump schemes in whole countries. I must admit I’m impressed that they managed to pump and dump the entire planet.

  31. The trillion dollar stimulus package contains some of the spending that is not necessary and we’ve got to look at the package in terms costs and benefits. If creating a $40k-$50k a year job costs taxpayers $200-$300K, then this does not make sense and such programs are not necessary. We’d be better off transferring that money directly to struggling homeowners and giving further larger tax breaks for laid off workers and the middle class. I think we need to concentrate on further empowering the middle class, rather than spending taxpayers money on unnecessary spendings such as opening/renovating museums and constructing water parks.

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