PDB Afternoon Bulletin | November 19th, 2024: Kyiv Launches First US-Backed Long-Range Strike On Russia & Pentagon Unable To Account For Trillions Of Dollars

Summary

The President's Daily Brief: PDB Afternoon Bulletin | November 19th, 2024

Host: Mike Baker, Former CIA Operations Officer
Release Date: November 19, 2024

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1. Ukraine Launches First US-Backed Long-Range Strike on Russia

Overview: In a significant escalation of the ongoing conflict, Ukraine has conducted its first known use of U.S.-supplied long-range missiles against Russian territory. This development comes after receiving approval from the White House on Sunday, marking a pivotal moment in the war dynamics between Ukraine and Russia.

Details of the Missile Strike: On Tuesday morning, Ukraine fired six ballistic missiles at a military facility in the Bryansk region of Russia. These included American-built ATACMS (Army Tactical Missile System), supersonic ground-launched tactical ballistic missiles with a range of approximately 190 miles. According to Russian Defense Ministry reports, five of these missiles were intercepted by Russian air defenses, while the sixth was damaged, resulting in fragments striking a military facility and causing a fire. Fortunately, no injuries or casualties were reported.

U.S. Authorization and Kyiv's Confirmation: While Kyiv has not officially commented on the strikes, Mike Baker references an anonymous source from the Ukrainian Military who told the BBC, "Indeed for the first time we used ATACMs to strike Russian territory" (02:45). This action was authorized by President Biden, who relaxed long-standing restrictions on the use of U.S.-supplied long-range missiles, allowing Ukraine to strike deeper into Russian territory.

Implications and Putin's Response: Russian President Vladimir Putin has responded by revising Russia's nuclear doctrine, lowering the threshold for the possible use of nuclear weapons in response to conventional Western missile strikes. Baker highlights the gravity of this shift, stating, "nuclear annihilation wasn't something I had on my Christmas wish list" (04:15). The revised doctrine now considers an attack on Russia by a non-nuclear power, supported by a nuclear-armed state, as a joint attack warranting a potential nuclear response. Additionally, Russia has specified that attacks on its ally Belarus with conventional Western weapons could also trigger a nuclear response.

Quotes and Reactions:

• Mike Baker: "But first, our afternoon spotlight. It appears that Ukraine is wasting no time employing US Long range missiles inside Russian territory." (01:15)
• Fake Quote Attribution: Baker humorously cites a fabricated quote from President Biden: "come on man, I'm on my way out the door. Good luck with that nuke thing." (03:00) to emphasize the satirical disbelief regarding nuclear threats.
• Russian Lawmaker: "a very big step towards the start of World War 3." (05:30)

Analysis: Baker underscores the precariousness of the situation, noting that while Ukrainian leaders advocate for Western disregard of Putin's nuclear posturing, the potential for miscalculation remains high. He cautions that Putin remains a "wild card," especially with Russia's ongoing production of mobile bomb shelters designed to withstand nuclear attacks.

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2. Pentagon Unable to Account for Trillions of Dollars in Assets and Liabilities

Overview: For the seventh consecutive year, the U.S. Department of Defense (DoD) has failed its mandatory annual audit, unable to account for trillions of dollars in assets and liabilities. This persistent issue highlights significant challenges in financial transparency and accountability within the Pentagon.

Audit Failures: The DoD’s inability to pass the annual audit, which has been a requirement since 2018, continues to draw public and congressional criticism. Despite a growing defense budget that has risen to over $824 billion this year, the department struggles to maintain accurate financial records. Mike Baker points out the irony, "They've probably already misplaced" the massive budget allocation (12:00).

Audit Details and Financial Discrepancies: Undersecretary of Defense Michael McCord, Comptroller and Chief Financial Officer, announced that out of 28 entities audited, more than half (15) received disclaimers of opinion due to insufficient data. Only nine entities achieved unqualified or clean opinions, a slight improvement from the previous year. Baker cynically remarks, "Well done. You." in response to these minimal improvements (13:20).

Costs and Resource Allocation: The DoD spent $178 million and utilized 1,700 auditors to audit $4.1 trillion in assets and $4.3 trillion in liabilities, yet failed to achieve a passing grade. In comparison, last year's audit cost $187 million with 1,600 auditors, highlighting the inefficiency and escalating costs without tangible results.

Key Challenges: The primary obstacle remains the accurate accounting of physical assets and property across various branches, including the Army, Navy, and Air Force. McCord acknowledged that without all three branches achieving clean audits, the DoD cannot attain an overall clean audit.

Milestones and Progress: Despite overarching failures, there have been minor successes. The Marine Corps passed its first audit earlier this year, and the Defense Threat Reduction Agency also achieved a clean audit. Baker sarcastically congratulates the Marine Corps and Defense Threat Reduction Agency, "Well done, Wethernex." (16:30).

Future Outlook: With Congress mandating a clean audit by 2028 through the 2024 National Defense Authorization Act, the DoD faces increased pressure to rectify its financial management issues. Baker expresses skepticism about the Pentagon meeting this deadline, confidently stating, "I'll bet you a trillion dollars that doesn't happen." (18:00).

Quotes and Reactions:

• Mike Baker: "Well, I don't want to minimize fears about nuclear escalation, but we've heard these threats before from the Putin regime." (06:00)
• Michael McCord: "Progress in resolving issues." (14:10)
• Baker on Audit Costs: "Apparently The Pentagon spent $178 million conducting an audit to find out that the Pentagon yet again failed the audit." (15:05)

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3. Conclusion and Final Thoughts

In this episode of The President's Daily Brief, Mike Baker sheds light on two critical and intertwined issues facing the United States and its allies. The first topic delves into the evolving dynamics of the Ukraine-Russia conflict, highlighting the precarious balance of power and the looming threat of nuclear escalation. The second issue underscores the systemic financial management problems within the Pentagon, questioning the efficacy and accountability of one of the largest defense budgets in the world.

Baker effectively uses humor and sharp commentary to underscore the gravity of these issues, urging listeners to remain informed and vigilant about both international conflicts and domestic governance challenges.

Final Quote:

• Mike Baker: "Stay informed, stay safe, stay co." (20:00)

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Note: This summary excludes advertisements and non-content sections, focusing solely on the core discussions presented by Mike Baker.

Transcript

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[Mike Baker]

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Then we turned stateside where the Pentagon has failed their mandatory annual audit for the seventh year in a row. Well done fellas. Apparently unable to account for trillions of dollars in assets and liabilities. Now to be fair, who hasn't lost a trillion dollars down the back of the sofa at some point? Come on. But first, our afternoon spotlight. It appears that Ukraine is wasting no time employing US Long range missiles inside Russian territory. After getting the green light from the White House on Sunday, Russia accused Ukraine of launching a barrage of U S made long range missiles into the Bryansk region on Tuesday morning, the first known use of these weapons by Ukraine since the war began. While Kyiv has not yet officially commented on the strikes, two U.S. officials confirmed the action to CNN saying Ukraine fired six ballistic missiles at a milit facility in Bryansk, including American built atacms, a supersonic ground launched tactical ballistic missile with a range of roughly 190 miles. According to the Russian Defense Ministry, Russian air defenses shot down five of the missiles and damaged the sixth. Fragments of that missile reportedly struck a military facility causing a fire. No injuries or casualties were reported by Russian officials as a result of the attack. As I mentioned, officials in Kyiv have not formally commented on the attack. However, an anonymous source from the Ukrainian Military told the BBC, quote, Indeed for the first time we used ATACMs to strike Russian territory. As we discussed yesterday, President Biden authorized on Sunday Ukraine's use of US supplied long range missiles to strike deeper into Russian territory, relaxing long standing restrictions that were aimed at keeping the conflict from escalating further. The move, while hailed by the US's NATO allies, has prompted concerns about nuclear escalation and the threat of a wider conflict breaking out in Europe. In response, President Biden said, quote, come on man, I'm on my way out the door. Good luck with that nuke thing. Yes, that was a fake quote. Back in September, Russian President Putin floated the idea of making changes to Russia's nuclear doctrine, warning that Moscow could use nuclear weapons if it was struck with conventional Western missiles. Message clearly meant to intimidate the US and other Western nations. He claimed that the approval of Ukraine's use of Western long range weapons would constitute the direct involvement of NATO countries, the United States and European countries in the war in Ukraine. On Tuesday, following Ukraine's first official strike with these advanced munitions, Putin officially updated Russia's nuclear doctrine, significantly lowering the stated threshold for the possible use of nuclear weapons. Specifically, the revision says that an attack on Russia by a non nuclear power, but with the participation and support of a nuclear power would now be seen as a, quote, joint attack on the Russian Federation. To be clear, the altered doctrine doesn't specify if Russia will use nuclear weapons in such a scenario, only that they could, obviously leaving room for interpretation and speculation. Additionally, the doctrine says that Russia reserves the right to use nuclear weapons if its ally Belarus comes under attack by conventional Western weapons. The new doctrine states, quote, aggression of any state from a military coalition against the Russian Federation and its allies is considered as aggression by the coalition as a whole. The Kremlin stressed that their revised doctrine is meant as a deterrence or a threat, either one, and aims to make it abundantly clear to the west what their red lines are regarding the use of nuclear weapons. It's a significant revision considering their last published nuclear doctrine, issued in 2020, said Russia would only consider nuclear weapons if it first came under a nuclear attack by an enemy and Russia was facing an existential threat. Now look, I don't want to minimize fears about nuclear escalation, but we've heard these threats before from the Putin regime. And Ukrainian leaders have increasingly encouraged the west to ignore such saber rattling. They say the success of the Kursk concursion in August exposed Putin's arbitrary red lines as frankly meaningless and at the dictator's threats should no longer be taken seriously by the West. On the other hand, Putin is a wild card. And in addition to the revised nuclear doctrine, reports indicate that Russia has recently been mass producing mobile bomb shelters that can protect against radiation and shock waves. On Tuesday, a Russian lawmaker called the situation, quote, a very big step towards the start of World War 3, end quote. On that cheery note, coming up, we turn to the US where the Pentagon has failed their mandatory annual audit for the seventh year in a row, unable to account for trillions of dollars. But hey, who's counting? Obviously not the Pentagon. I'll be right back.

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[Mike Baker]

Welcome back.

To the Afternoon bulletin. For the seventh year in a row, the Department of Defense the DoD has flunked its mandatory annual audit. Unable to account for trillions of dollars in assets and liabilities since the audits began in 2018, the Pentagon has yet to pass one. Mandatory audits for the DoD were introduced as part of broader Financial accountability measures. Yeah, that seems like a good idea. Despite ongoing efforts to improve transparency, the DoD has faced repeated public criticism for its inability to meet standards, a failure that comes as its Ann budget continues to rise, swelling to over $824 billion just this year. Which they've probably already misplaced. The latest results announced on Friday by Michael McCord, the undersecretary of Defense, the Comptroller, and the Chief Financial Officer. Oh, they have one reported. The result was, quote, expected. Of the What? Of the 28 entities audited, more than half 15 to be exact, received disclaimers of opinion, meaning they failed to provide sufficient data for a comprehensive evaluation. Sounds like Chief financial officer McCord has also failed. Nine entities achieved unqualified or clean opinions, up one from last year. Wow. Well done. You. Signaling a slight improvement, McCord noted that eight of these entities resolved or corrected previous audit issues in collaboration with the Treasury Department, pointing to, quote, progress in resolving issues. Well, I don't think the Chief Financial Officer has a firm grasp on the definition of progress. Regardless, that so called progress came at a price of $178 million for 1,700 auditors to sift through $4.1 trillion in assets and $4.3 trillion in liabilities. Now, in case you missed the humor in that, apparently The Pentagon spent $178 million conducting an audit to find out that the Pentagon yet again failed the audit. Now, I'm no Chief Financial Officer, but. But that doesn't sound like a bargain. For reference, last year's DoD audit involved 1,600 auditors and cost $187 million. The primary hurdle for the DoD, aside from being able to find anything, remains accounting for physical assets and property. McCord identified the Department of the Army, Navy, and Air Force as critical components for achieving an overarching clean audit. McCord stated, without all three of those turning green, it is mathematically impossible for the Department to have a clean opinion. Despite the disappointing results, there was a milestone. The Marine Corps made history earlier this year by passing its first audit for the prior fiscal year, becoming the first branch to do so. Well done, Wethernex. This year's audit added the Defense Threat Reduction Agency to the list of entities receiving clean audits. Other entities with clean records include the Defense Health Agency, Military Retirement Fund, National Reconnaissance Office, and the US Army Corps of Engineers Civil Works. While McCord acknowledged that challenges remain, do you think? He expressed optimism about the department's trajectory, stating, momentum is on our side in 2020. The Pentagon originally thought it might pass by 2027. Following that string of failures, Congress gave it an extra year, mandating a clean audit by 2028 in the 2024 National Defense Authorization Act. Now it's important to note that three entities are still undergoing review. That would be for this year, the Marine Corps, the Defense Logistics Agency's National Def pile transaction fund, whatever that is, and the Office of Inspector General. As Congress and taxpayers push for greater transparency, the DoD has four years left to meet the 2028 congressional mandate for a clean audit. And I'll bet you a trillion dollars that doesn't happen. And that, my friends, is the PDB Afternoon bulletin for Tuesday 19th November. If you have any questions or comments, please reach out to me at PDB the first tv.com now as you probably recall from your old Sunday school sermons to to the show ad free. Well just become a premium member of the President's Daily brief by visiting pdbpremium.com I'm Mike Baker and I'll be back tomorrow. Until then, stay informed, stay safe, stay co.