Medusa242 [CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0)]
We have previously commented on FASAB 56, in podcasts and interviews, but felt it was time to put something in writing to highlight a very serious issue, which predictably has had virtually no coverage in the mainstream media and also very little in the alternative media too.
We would first direct people to look at the extensive work that Catherine Austin Fitts and Mark Skidmore have done in highlighting the missing minimum $21tn on the US balance sheet and how when questioned about this apparent oversight, the matter was conveniently buried. We would also draw your attention to the following link which details extensively the work undertaken with regards to FASAB 56.
We would however like to mention a few points in this article to highlight why we regard this as having major potential ramifications. FASAB sets the generally accepted accounting principles (GAAP) for the federal government and are used to determine the content and structure of the financial reports the federal government agencies and departments should adhere too. The adoption of Standard 56 (FASAB56), which came into force on October 4th, 2018, determined that national security concerns now override the need for public financial transparency.
What this means is that FASAB56 allows federal entities to manipulate data and even omit spending altogether when reporting on the grounds of national security. This as the aforementioned article states, raises the following questions:
Who counts as a federal reporting entity? When and how can these entities conceal or remove financial information from their reports? What information can be removed? When does something count as confidential, and who makes that determination?
FASAB 56 also allows departments within government to change their reports in ways that don’t reflect their actual spending, under the guise of the very grey area of how information is classified and how such information is handled with respect to unclassified reports. FASAB 56 also undermines the reliability of government accounting standards and financial statements to such a degree, that from a public perspective they become worthless. It also allows the addition of misleading information and information to be omitted on spurious grounds. This lack of transparency is staggering, open to potentially serious abuse and was approved by the Trump administration.
In a broader context, this missing minimum $21tn is indicative of the US printing dollars Zimbabwean style and that there is actually tens of trillions more dollars in the system than conventional wisdom understands. These dollars are going eventually to come home which is going to cause rampant hyper-inflation. The consequences for the American people is self-evident, economically, socially and politically. It is also why the principal reason why the world is de-dollarising because they have realised that the US has been partaking in this reckless debasement of the dollar.