Dear Reader,
$250 million. Gone. Every dollar of it was supposed to feed hungry children in Minnesota. Instead, it funded beach resorts in Kenya, luxury hotels, and shell companies that existed on paper only. Not one meal reached a single child at most of those sites. 125 million fake meals were claimed. The federal government wrote the checks and never asked a single question.
Inside today's issue:
- The Fraud Was Designed In: Vance's task force calls it loopholes. I call it architecture. When you build a system with no eligibility checks, no oversight, and self-certification of benefits, fraud is not a bug. It is the product.
- $10 Billion a Year. Every Year.: SNAP alone wastes $10 billion annually in overpayments. That's the figure the government admits to. Total improper SNAP payments since 2003: $45.75 billion. Your money. Gone.
- Rome Did This Too.: Every empire that subsidized grain discovered the same thing. The bigger the program, the larger the theft. The audits came last, after the looting was already done.
- Larry Benedict: Oil Skimming: Larry Benedict just released a new presentation on a strategy called "Oil Skimming." It's worth a look. (Brownstone Research)
On October 3rd, President Trump called on Congress to impose mandatory minimum prison sentences on anyone convicted of Medicare, Medicaid, or Social Security fraud. Vice President Vance chairs Executive Order 14395, the Task Force to Eliminate Fraud, signed in March. The crackdown is real. I support it.
But here is what nobody in Washington wants to say out loud.
THEY BUILT THIS SYSTEM. The White House's own executive order says it plainly: states embraced loopholes that allow self-certification of eligibility and expand benefits far beyond what Congress intended. No individual eligibility validation. No oversight. Just money flowing down a pipe with no one watching where it went.
The Feeding Our Future case proves it. A Minnesota nonprofit opened 250+ fake meal sites. They claimed to serve 125 million meals to needy children. Not one child was fed at most of those sites. The ringleader, Aimee Bock, was sentenced to nearly 42 years in May 2026. But here is the number that stopped me cold when my research team put it in front of me: Federal prosecutors now estimate total fraud in that case could top $350 million. They have recovered around $75 million. The rest went overseas. Into investments the U.S. cannot seize.
And Minnesota is one state.
At the Department of Housing and Urban Development, an early review found $1.9 billion in what officials described as "misplaced funds." HUD Secretary Scott Turner said they want to be "good stewards of taxpayer money." Good stewards. They misplaced $1.9 billion and called it a stewardship issue.
SNAP. $10 billion wasted every single year in overpayments. That number comes from the government itself. Since 2003, the USDA has reported $45.75 billion in improper SNAP payments. That is more than the GDP of dozens of countries.
I have studied cycles my entire life. Every empire in history that subsidized consumption discovered the same thing. The Romans subsidized grain. The grain merchants cheated. The bureaucrats knew and looked away. The empire kept paying because the alternative was political pain. This is not a new story. This is the oldest story in government. The audits always come after the looting.
Now. Here is what this means for your money. Every dollar stolen from SNAP and Medicaid and HUD is a dollar that was printed first. The government does not have a vault of savings to draw from. It prints. It borrows. It taxes. The fraud does not disappear when the prosecutors show up. It has already been monetized into the currency supply.
Before I tell you the one thing you can actually do about it while the politicians hold press conferences about cleaning up the mess they designed, a word from our partner:
Here is the truth they will not tell you at the fraud task force press conference.
The fraud is a symptom. Not the disease.
The disease is a system so large, so complex, and so politically untouchable that fraud is the only rational response to it. When you hand states billions in federal money with no eligibility validation, criminals do not miss the opportunity. They never have. They never will.
Mandatory minimums are a great idea. I support them. Lock up every last person who stole a dime from those programs. But do not let the press conference distract you from the larger theft: the one that runs 24 hours a day, seven days a week, with no criminal penalties and no oversight whatsoever.
That theft is called inflation. The Federal Reserve prints the money that covers the fraud. Your savings lose purchasing power. Your dollars buy less. The machine keeps running.
My rich dad said it clearly. Savers are losers in a system built on debt and debasement. The answer is not to wait for Washington to fix Washington. The answer is to hold what they cannot print: gold, silver, Bitcoin, real assets. Not because the world is ending. Because the system has always worked this way, and always will.
They are going after the small fraud. The big fraud is the currency itself.
To your freedom,
Robert Kiyosaki
Author, Rich Dad Poor Dad
P.S. There's a public document that shows what a small group of people in Washington does with their own money. Most people who find it have no idea what they're looking at. My research team does, and they'll show you. See the briefing.