October 4th, 2018, was a busy news day. The only thing that did not make the news was an announcement by a little-known government body called the Federal Accounting Standards Advisory Board - FASAB - that essentially legalized secret national security spending. The new guidance, "SFFAS 56 - CLASSIFIED ACTIVITIES" permits government agencies to "modify" public financial statements. It also expressly allows federal agencies to refrain from telling taxpayers if and when public financial statements have been altered. To Michigan State professor Mark Skidmore, who's been studying discrepancies in defense expenditures for years, the new ruling - and the lack of public response to it - was a shock. "From this point forward," he says, "the federal government will keep two sets of books, one modified book for the public and one true book that is hidden." Catherine Austin Fitts was Assistant Secretary for Housing and Urban Development during the George H.W. Bush administration. She's been working with Skidmore on defense accounting issues for two years. She was so alarmed about the new FASAB ruling she commissioned an in-depth study of "Standard 56" for her site, the Solari Report. The report writes bluntly that SFFAS 56 is: "... taking government accounting practices from laxly enforced reporting standards to a new benchmark entirely-expressly approved obfuscation of reporting and, in some cases, outright concealing financials."