I think the $1000 hammer and $10000 toilet were done by contractors for the military. I think it was ratheon that charged the government ridiculous amounts for things like that. Totally different type of budget, much easier to overcharge.
I couldn't find a reference for that story either.
I completely believe that the military makes damn sure it's people don't waste money and keep track of anything.
Of course, they lost six billion in Iraq, in cash.
Do you guys know where that went? Was it paying people to be our friends? (serious question).