THE BLOG
02/28/2013 12:05 pm ET Updated Apr 30, 2013

Government Sequestration Cuts Pale in Comparison to Rampant Fiscal Abuse

The president, Congress and the media are all trying to convince us that the $85 billion annual sequestration budget cuts will cripple our government. Don't believe it. We don't need to raise taxes or cut Medicare or Social Security to balance the budget and cut the deficit. We simply need to cut the rampant, blatant and widespread fraud, abuse and fiscal irresponsibility in federal spending. Here are some typical examples of how the federal government operates that you might not be aware of.

On the day before 9/11, Secretary of Defense, Donald Rumsfeld announced that $2.3 trillion in Pentagon spending could not be accounted for. $2.3 trillion is $2,300 billion. Compare that to the piddling $85 billion in annual federal budget cuts that are proposed. Think of it this way, the amount of money that's unaccounted would make it possible for the U.S. to avoid the $85 billion in annual budget cuts for 27 years.

Fraud and abuse with expenditures at the Pentagon and the Department Of Homeland Security have degenerated even further since 9/11. The Department of Defense has gone to such great lengths to hide financial abuse the General Accounting Office (GAO) is unable to audit their books. The GAO stated, "Serious financial management problems at the Department of Defense (that) made its financial statements unauditable." Up to 25 percent of Pentagon expenditures can no longer even be tracked.

Did you hear about the trillions of dollars that are unaccounted for at the Federal Reserve? Google it. Watch the YouTube video of former Congressman Alan Grayson questioning the Inspector General for the Federal Reserve about the trillions of dollars in off-balance sheet funds that were not accounted for. Up to $9 trillion in Federal Reserve funds seem to have been missing. Let's see, $9 trillion is $9,000 billion. That's enough money to circumvent the $85 billion a year spending cuts for more than 100 years.

The GAO audited the Federal Reserve and found $16 trillion in secret, near $0 interest loans to some of the largest banks in the world along with worldwide corporate giants and even other countries. Did anyone you ever voted for approve that? The simple answer is: No. $16 trillion is $16,000 billion. That would avoid the $85 billion budget cuts for more than 188 years.

Have you heard about the undisclosed amount of new un-circulated $100 dollar bills that seem to have disappeared on their way to the Federal Reserve? It seems no one in the federal government even knows how much was lost. Was it billions, maybe trillions? Nobody seems to know.

Every American should watch the documentary, We're Not Broke which reports that many of the nation's largest corporations pay little or no federal income tax. A recent Huffington Post story reported the 10 most successful U.S. firms paid an average income tax rate of just nine percent.

The practical and logical solutions to solving America's economic problems are simple. The Federal Reserve needs to be investigated, restructured and closely regulated immediately with full and open transparency. Eliminate the tax loopholes that have allowed the nation's largest and most successful corporations to defraud America out of trillions of dollars in tax revenue. And finally, reduce the Pentagon budget every year by the exact amount they seem to lose or can't account for. These three solutions will dramatically cut the federal budget, the deficit and dramatically increase tax revenue. No cuts to government services of any kind will be necessary.

So what can you do about this? A lot of people have died for America. All you have to do is read the stories we have linked to. Educate yourself about what is really happening in this country. Next, send this piece to everyone you know. Tell them to then send it to everyone they know.

Finally, everyone needs to contact their senators and congressmen and tell them you want the rampant fiscal abuse to end now. It's called democracy. Try it, you'll like it.

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