by Steven J. Smith
from ScientificPapers Website


At what point shall we expect the approach of danger? By what means shall we fortify against it? Shall we expect some transatlantic military giant, to step the Ocean, and crush us at a blow? Never!

All the armies of Europe, Asia and Africa combined, with all the treasure of the earth in their military chest; with a Bonaparte for a commander, could not by force, take a drink from the Ohio, or make a track on the Blue Ridge, in a trial of a thousand years.

At what point then is the approach of danger to be expected? I answer, if it ever reach us, it must spring up amongst us. It cannot come from abroad. If destruction be our lot, we must ourselves be its author and finisher. As a nation of freemen, we must live through all time, or die by suicide.

Abraham Lincoln
January 27, 1838


Most people assume covert government projects are paid for with separate budget appropriations, passed by a vote of congress. They also assume that while congress may not know what the money is being used for, at least congress knows how much is being spent. Sadly, nothing could be farther from the truth. In the last 50 years, at least $40 trillion (in 2004 dollars) has been siphoned away from legitimate uses and spent on secret projects.


The diversion of public monies on a scale this vast can not be accomplished through conventional parliamentary mechanisms. It requires a coordinated effort at the very highest levels of government. It also requires a continuous flow of maladapted policies and legislation to supply the raw material. This raw material is human victims. In other words, you...

With less than 5% of the world population, America now consumes over 50% of the world's natural resources and manufactured goods. If you're a Japanese factory worker, or a Brazilian farmer, a Canadian cattle rancher, or a European banker. Chances are directly or indirectly, you're working for America. The American people do not receive the fruits of your labors. Contrary to government generated statistics, the economic standard of living in America has been declining for decades.

What follows is a detailed description of the biggest theft in human history. A theft spanning half a century, and involving the diversion of wealth from an entire planet.

The master magicians:

The art of magic involves the skillful capture of attention. A magician says "watch closely while I make this rabbit disappear". He must capture your full attention because without it, you will notice the slight-of-hand performed by his assistant, that creates the illusion of his magic. The diversion of federal government revenue into clandestine projects makes use of this same technique.

Every day on TV news programs, you see the political leaders of America engaged in a grand debate over how to make the world in general, and America in particular, a better place to live. And every few weeks another foreign dignitary makes a pilgrimage to the White House, in order to confer on momentous matters of world peace and security. These men and women are not America's leaders, they are magicians. And you are not their constituency, you are their audience. Their proclamations are as meaningless as a magician's pronouncement of abracadabra. They capture your attention, while their assistants pilfer your wallet, and plunder your children's future.

Most people assume that congress and the president jointly determine how tax revenue is being spent. However, the money is actually spent by semi-autonomous bureaucratic empires, with names like Department of Defense, Department of Energy, Department of Homeland Security, Department of Housing and Urban Development (the list goes on and on)...


Each Department is managed by a secretary, nominated by the president, and approved by congress. These managers (secretaries) are the "magician's assistants". And they are responsible for stealing the rabbit, while your watching the magic show. As a general rule, the less public visibility a department secretary has, the more money that bureaucratic empire is diverting (stealing).

Each bureaucratic empire, guided by a magician's assistant (the secretary), creates an annual budget that is submitted to congress and the president for review and approval. 90% of the time, approval is automatic. In other words, most of the time congress and the president don't tell the bureaucratic empires how to spend money, just how much money to spend.

A typical department budget consists of hundreds (sometimes thousands) of individual items or programs with obscure names, and vague definitions. The diversion of American tax revenue into covert projects is accomplished piecemeal, through these budgetary items. A little bit from one item, a little more from another. No one really knows the exact amount of diversion taking place. Estimates run as high as 60% of the entire federal budget as being diverted into clandestine projects through this mechanism.

The trick behind the magic:

A short review of some department budget items will prove useful in understanding the mechanics of how the diversion is accomplished. I shall use the DOE (department of energy) proposed budget for fiscal year 2006. This document is publicly available at the DOE website.


According to the document, proposed DOE budget for 2006 is $23.4 billion dollars, and represents a decline of $475 million dollars from the 2005 budget which, and I quote: "shows DOE's commitment to results-driven performance." This is utter non-sense, as I shall demonstrate.

The following is a screen capture form the DOE 2006 proposed budget.

The DOE is requesting $9.4 billion dollars for something called the NNSA (national nuclear security administration). They claim this money will be used for national security activities. This is a very big number, beyond the comprehension of most people, so lets see if we can put it in perspective.


Assume the DOE pays an annual salary of $60,000 per "nuclear security worker", then the DOE could hire an astounding 156,000 people with this money. But wait, it gets even better. The NNSA will work in partnership with the Department of Defense, and Department of Homeland Security. In other words, these other bureaucratic empires will also receive billions of dollars to pay for their end of the "partnership".


Suppose each of the "partner empires" receives the same amount as the DOE. Combined, they could hire nearly half a million people! Since the population of America is roughly 300 million, this would translate into approximately one "nuclear security worker" for each 600 Americans.

Let's be a bit more conservative. Assume only half of this $9.4 billion dollars is used to pay salaries (78,000 workers). Now according to government census data, the average American family is 3.86 individuals. So we have one nuclear security worker for each 996.4 American families.


But what about the "partner" bureaucratic empires? If they are included (assuming an equal work force in each empire), the number drops to roughly one nuclear security worker for each 332 American families. Do you believe that one person in each 332 families is (directly or indirectly) working on nuclear security? If not, then were did all that money go?

In all fairness, the DOE budget does break this $9.4 billion dollar figure down into smaller amounts for specific purposes. But a review of these "specific purposes" leads to the same conclusion, as the following examples illustrate.

The screen capture (below) is part of the $9.4 billion dollar NNSA budget breakdown.

The DOE proposes to spend $1.4 billion dollars on something called "Directed Stockpile Work". And a list of "specific activities" is included with the budget item. The budget item goes on to mention "three weapons" so this item does not apply to ALL nuclear weapons, but just the warheads for three classes or types of weapons. The key issue is this budget item fails to mention how many warheads will be maintained and refurbished.


Would you buy a bottle of aspirin without knowing how many pills are in the bottle?


The DOE could maintain, refurbish, and certify just three warheads (one in each weapons class) to fulfill the terms of this budget item, and assuming they spent the extravagant sum of $100 million per warhead, that would still leave $1.1 billion tax payer dollars for diversion into clandestine schemes.

Next the DOE wants $2.1 billion dollars for "Facility Operations" and "Infrastructure Recapitalization". Lets put this number in perspective. A 10 story apartment building with 500 luxury apartments, would cost in the neighborhood of $50 million ($100,000 per apartment). Therefore $2.1 billion would buy 42 of these apartment buildings, or 21,000 luxury apartments. This budget item also mentions "excess facilities".


Why is DOE building new facilities, when it already has excess facilities? Why not sell these excess facilities to partially offset the cost of new facilities? The final irony is, this budget item might even be the truth, assuming the "infrastructure" is underground. (see companion paper entitled "Underground Infrastructure")

The proposed federal budget for 2006 is in excess $2.5 trillion dollars. This is 2,500 billion dollars. Multiply the billion dollar examples above by 2,500 and you begin to understand the magnitude of diversion taking place.

This is why the master magicians work so hard to keep your attention fixated on their grand debates. And this is how the magician's assistants have stolen your tax money and redirected it into clandestine schemes. Schemes of such stunning evil they must be shrouded in utmost secrecy.

As a side note, the DOE not only builds and maintains the American strategic weapons stockpile, but also funded the Human Genome Project.


The implications are both obvious and ominous.


Domestic revenue enhancement:

More government revenue, means more money is available for diversion into clandestine projects. A simple statement with disastrous consequences.

  • Do you ever wonder why consumer prices continue to rise?

  • Or why the border patrol can't stop the flood of illegal immigrants?

  • Or why American jobs are being outsourced to other countries?

  • Or why America can't supply its own energy needs?

The answer is two simple words. Revenue enhancement.

Let's start with illegal immigration.


An illegal immigrant working in America, has taxes withheld from his or her paycheck, just like an American citizen. However, an illegal immigrant does not have a valid social security number, and therefore can not collect social security benefits, or file a valid tax return to receive a tax refund.


Since most illegal immigrants work at low paying jobs, if they could obtain a tax refund, it would nearly equal the tax they paid. So the federal government receives the tax revenue, but incurs no obligation to pay benefits or tax refunds. Assume you want to enhance (tax) revenue, then ask your self which worker is more profitable. An American citizen, or an illegal immigrant?

The CPI (consumer price index) is a measure of what goods and services cost. In other words, a measurement of inflation. Inflation is caused by an increase in the supply of money, without a corresponding increase in the supply of goods and services. Therefore if the amount of money, and the amount of goods and services were constant, the rate of inflation would be zero (the CPI would not change).


Your work creates the goods and services, and the federal government prints the money. If the federal government prints & spends more money, its revenue is enhanced, but the value of your paycheck is reduced. Assume you want to enhance revenue for diversion into covert government projects. Is inflation beneficial to this goal?

When you buy a Japanese car, where does the money you paid end up going? Sounds like a stupid question, doesn't it? It goes to Japan, right? Wrong! The Japanese use that money to buy American government bonds.


Now consider... The federal government receives (through taxation) about 33% of an American car sale, but receives (through Japanese purchase of bonds) nearly 100% of a Japanese car sale. Assume you want to enhance (government) revenue. Is it better to have American workers building cars, or Japanese workers building cars?

Every day you see TV commercials showing how American energy companies are working hard to supply your energy needs. You see off-shore drilling platforms, and people in white lab coats staring intently at computer screens. The commercials always end with some humanizing image. A little girl, playing in a field full of wild flowers, or a house wife coming in out of the rain, and tuning on a light switch.


The implication is these companies are concerned about your welfare, and your future. This is a blatant lie. When you buy a gallon of gasoline refined from Saudi Arabian oil, where does that money end up going? Re-read the Japanese car example (above). If you want to enhance (government) revenues, which is better, American oil, or Saudi oil? Don't blame the Arabs for high energy prices. They're just helping the American government enhance its revenues.

Each of the four revenue enhancement techniques outlined above, requires as its precursor, maladapted government policies and legislation. Otherwise free market forces would quickly counteract the imbalance. The American government's voracious appetite for revenue enhancement to finance its covert projects, is the true motivation behind the magic mantra of "free trade".

Attention! Foreign Holders of American Government Notes and Bonds.

Do you honesty believe a country that produces less tangible value with each passing year, will ever repay this debt? I advise you to ponder this question long and hard, before purchasing bonds with 30 year maturities.

One additional technique for revenue enhancement is deserving of mention. The struggle against some perceived evil or threat has always been successful in persuading the American people to willingly tolerate greater tax burdens. In the past, communism served this goal admirably. Today it's the threat of global terrorism.


However recent public opinion polls indicate that another attack on America may be required to revive the fading public hunger for:

"Another triumph of American righteous might over the evil forces of tyranny, no matter what it costs!".

I leave you with this final observation. Since WWII, every conflict has been halted before victory was achieved. Perhaps the master magicians are worried they will run out of villains to use against the American tax payer, in their never ending quest for revenue enhancement...


Vote for Democrats because they're looking out for the little guy. Vote for Republicans because they're pro-business. But what ever you do, be sure to vote!


Suppose you saw the following help wanted ad in your local newspaper.

Wanted: Energetic person with good acting and communication skills. Must enjoy making speeches, shaking hands and kissing babies. No experience required, you will work from prepared scripts. Employment length, 4 years with possible 4 year extension. Salary: $400,000 per year. Non-refundable job application fee: $100,000,000

Would you apply for this job?

Yet this is the help wanted ad every presidential candidate answers. Do you believe those who contribute to political campaigns have patriotic ideals and altruistic motives? If someone contributes $10,000 to a political campaign, they expect at least 10 times that amount in return. After all, this is a risky investment. The "job applicant" might not get selected - oops I mean elected.


So once (s)elected, the president owes at least $1 billion dollars in what are euphemistically known as "political favors". Where will he (or she) obtain that money (see 1.5.2 & 1.5.3 above). The "application fee" for congress, while smaller is still paid in the same manner.


Lets do some math and see if we can get a rough estimate of what your vote is costing you.




Application Fee




$100 million

$100 million



$15 million

$1.5 billion



$5 million

$2.175 billion

Total application fees

$3.775 billion

Political favors owed (at 10:1 payback)

$37.75 billion

Cost per voter (100 million voters)


Under federal law it's illegal for you to sell your vote, but buying your vote is obviously BIG business!

Every magician (politician) knows exactly what you want, and has a detailed plan to make it happen. All you have to do is vote for him (or her) and the magician will appoint a blue ribbon commission to investigate the issue, which after lengthy deliberations, will make its recommendations.


The magician will say the magic word "abracadabra", create a new bureaucratic empire (or modify an existing one), and everything will be fixed. If you hired a plumber to fix a leak, and when he was finished the leak was worse, you would not pay him. If a doctor performed an operation, and after he finished you were blind in one eye, paralyzed from the waist down, and suffering from hallucinations, your have the right to sue that doctor for malpractice.

Unfortunately, the master magicians do not work for you. They work for those who made their (s)election possible. All your get is a bill for the magic show, and you have no legal right to refuse payment. The real purpose for casting your ballot is to shift responsibility from those who are stealing, to those who are victimized. In other words, your vote is the magician's license to commit larceny.


The choice you make on election day is an illusion. The difference between Democrats and Republicans is preference, not substance. Like the difference between card tricks and animal tricks. In that sense, there are no Democrats or Republicans.

Only Demo-Publican magicians...

Regime adjustment (foreign revenue enhancement):

In the introduction I touched upon the topic of foreign subjugation. This section will bring that subject into sharp focus. As elsewhere, it is the unquenchable appetite of the American government for ever greater revenue, that motivates the plundering of other sovereign nations.


When an American master magician uses the phrase "regime change", most people understand this means the over throw of a foreign government, and installation of a new government, sympathetic to American ambitions. However, regime change is actually the option of last resort.


The magicians prefer to use less blatant methods of coercion collectively known as "regime adjustment". Many of these techniques have the common characteristic of appearing to be guided by desirable (often benevolent) goals, while simultaneously producing a hidden and very sinister result. In other words, these techniques capture attention, diverting it away from the real consequences, and therefore are nothing more than another class of magic tricks.

These tricks fall into four broad categories.

Political tricks:

The American master magicians are always extolling the virtues of democracy. They desire that people in every nation receive the same benefits bestowed upon American citizens. A population that believes it is master of its own fate is more easily manipulated. Furthermore as its social fabric unravels and its standard of living declines, a democracy is more likely to blame it self (self directed guilt), than to blame outside influences (externally directed anger).

One of the greatest achievements of the American master magicians is the nearly universal belief in representational democracy.

The range of options available to the master magicians for manipulating democratic governments and elections is truly spectacular. Remember that America has been a democracy longer than any other nation on earth, and therefore its master magicians have a vast pool of experience at rigging elections and coercing democratic governments.


What follows is a small sampling of the more commonly used options.

  1. Covert financing of an opposition candidate is always the first choice.

  2. Use of advanced American surveillance technology to uncover embarrassing information on a candidate or politician is also a favorite tactic.

  3. The dissemination of rumors and lies designed to discredit a candidate or politician is obviously useful (CIA & NSA have entire sections dedicated to this art).

  4. Creating political opposition pressure groups to intimidate an obstinate government has worked well in the past.

  5. Arranging an unsuccessful assassination attempt, will raise a candidate or politician's popularity. Especially if the assassin is a member of some group that is despised by the general population.

  6. Of course real political assassination is best accomplished by arranging a fatal accident.

As a final note, the American movie entitled "Wag the Dog" is a very good exposť on the skillful use of media for political manipulation.

Financial tricks:

The American dollar is the de-facto currency of international trade. For this reason, the central banks of many nations hold the majority of their reserves in dollars or American government bonds. This allows the American magicians to exercise enormous leverage over these foreign central banks. With little more than a few key strokes on a computer keyboard, the American central bank (known as the Federal Reserve, or just "FED") can reduce the value of dollars and bonds held in a foreign central bank by any arbitrary amount.


This is possible because physical currency and bonds no longer move from nation to nation. Instead a method known as EFT (electronic funds transfer) is used, and what "moves" is nothing more than numbers in a computer memory.

For those nations that have chosen to hold their central bank reserves in other currencies (or precious metals), a physical trade embargo can be used. Enforced with American military power (if needed).

A particularly vicious trick, especially useful on poor nations, is American humanitarian aid. Suppose America gives 100,000 tons of free grain to a nation like Ethiopia. What happens to the farmers in Ethiopia? They are driven out of business because they can't compete with free American grain, thereby destroying domestic Ethiopian food production.


Before American "humanitarian aid", 10% of the people were starving. After American "humanitarian aid", 100% of the people will starve. Of course the American master magicians will be happy to supply more humanitarian aid, providing the Ethiopian government will make some minor adjustments in its policies...

Military tricks:

When you mention the American military, the vision that most people have is of smart bombs, cruise missiles, and attack helicopters. Yet these weapons are reserved as a last resort, when all else fails. Less well known are the American military special forces, and exotic weapons systems. These weapons and personnel are used in clandestine intervention operations. And if used properly, leave no evidence directly traceable back to America.


Some examples follow.

  • An EMP (electro-magnetic pulse) bomb can be used to disrupt a national communications network or power grid at a critical moment. During a key political speech or rally for instance.

  • A special forces team can be deployed to blow up a factory or laboratory and make it look like the opposition political party is responsible.

  • An influenza epidemic can be triggered by aerosol dispersion over a city, using a stealth aircraft. Useful when low voter turnout favors one candidate over another, or when an anti-American demonstration is planed.

Another regime adjustment technique involves military equipment rather than military intervention. A nation that resists American hegemony, may find its neighbors are recipients of advanced military equipment, courtesy of the American master magicians.


This tactic is generally performed in three stages, thereby giving the uncooperative nation an opportunity to reconsider the wisdom of their behavior.

  1. The magician's assistant in charge of the Department of State (American ministry of foreign affairs) makes a public proclamation that nation X needs new military equipment for self defense.

  2. The master magicians hold a public debate over the advisability of supplying nation X with this military equipment.

  3. The military equipment is sold to nation X on very favorable financial terms. And the Department of Defense trains nation X solders in its use.

Finally as Saddam Hussein and Manuel Noriega discovered, if regime adjustment fails, there is always forced regime change, carried out at the point of American military guns...

The trick of disaster:

During the last 15 years, America's master magicians have acquired a whole new class of secret persuasion techniques for use against an unsuspecting world. These techniques involve the intentional generation of what appear to be natural disasters.


They range from relatively mild calamities such as drought induced crop failures, to moderate disasters such as wild fires, to severe devastation such as killer earthquakes. These tactics are generally used (so far) as adjuncts to the more traditional methods of regime adjustment (outlined above).


Some examples follow.

  1. A crop failure (engineered drought) provides the perfect pretext for humanitarian aid.

  2. A hurricane can be steered at a population center to make a point during trade negotiations, then steered away after a successful conclusion.

  3. Wild fires can be used to destroy a timber resource, thereby making a nation less self sufficient, and more dependent international trade.

  4. Earthquakes can be used as a pretext for American military intervention to restore order and provide humanitarian aid (while simultaneously mapping natural resources for later plunder).

  5. A flood can be used to destroy dams and bridges, which will require American aid (loans & advisors) to rebuild. Of course these loans will have to be paid back with interest.

Weather engineering is also useful as an adjunct to military operations. During operation Iraqi Freedom prior to the final assault on Baghdad, a sand storm with winds blowing from the south provided cover for American military units as they rested and re-supplied. AND it also guaranteed that any poison gas used by Iraqi military units would be blown back over territory still held by Iraq forces.

Several companion papers provide details on the science and technology behind un-natural (engineered) disasters.



The American government and its master magicians have perverted democracy and free enterprise, turning them into instruments of tyranny and slavery. They have performed this seeming feat of magic by capturing your attention with their rhetoric, while their assistants (accomplices) pulled off the biggest theft in recorded history.

The picture I paint is a grim one.


An entire world, endlessly working to provide an ever greater source of wealth for diversion into clandestine schemes that benefit no one except the magicians and the power elite who make their (s)election possible. It may seem their hold over your lives is unassailable. However, if this were true the magicians would not labor so hard at deceiving you. By your work, you produce the wealth they steal. They need you. You do not need them. They have known this fact all along. Now you know it as well.

I can not offer any easy solutions. Under current America law, even discussing political change can be construed as conspiracy to commit terrorism. Just by exposing the "magic show", I have no doubt made my self a target for further government harassment or possibly worse. Yet a solution must be found, otherwise you and your children will endure the cruelest trick of all.

Perpetual human slavery, at the hands of America's master magicians.

But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.

From the Declaration of Independence - July 4, 1776