That Time The Military Let $2.3 Trillion Go "Missing" - How Money Works | How Money Works
Oct 8, 2025
Uncover the astonishing tale of $2.3 trillion that vanished within the military budget, sparking public outcry and conspiracy theories. Explore the amusing absurdities, like a $10,000 toilet seat, highlighting the chaos of military spending. Delve into the baffling accounting challenges faced by military accountants and the outdated practices that led to such staggering discrepancies. This financial fiasco invites a critical examination of accountability and the role of money in politics, leaving listeners questioning the integrity of defense finances.
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insights INSIGHT
Timing Changed The Story
Donald Rumsfeld's announcement about $2.3 trillion missing was drowned out by 9/11 the next day.
The timing shifted public focus from outrage to support for the military.
insights INSIGHT
Secrecy In Military Accounting
The DoD must keep detailed records for purchases from office supplies to major acquisitions.
Some military-ledgers are classified, so secrecy can be preserved without using code words in entries.
question_answer ANECDOTE
The $10,000 Toilet Seat Explained
The $10,000 toilet seat story became shorthand for military waste and possible kickbacks.
The episode explains the part was unique, installed by licensed technicians, and truly expensive to produce.
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That Time The Military Let $2.3 Trillion Go "Missing" - How Money Works
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In 2001 defence secretary Donald Rumsfeld announced that the department of defence had lost more than 2.3 trillion dollars.
At this time the entire federal budget was only 1.8 trillion dollars which meant that the military had basically just oopsied away more than a years’ worth of the governments entire bankroll.
The public was furious to say the least, and rumours quickly started circling about where this money ended up.
Fortunately for Rumsfeld and the entire militaries senior brass the public announcement of the missing money was made on a very opportune day, September 10th.
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Edited By: Andrew Gonzales
Music Courtesy of: Epidemic Sound
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