Not sure that "Why don't we know where the currency is?" is a question you can answer with a straight "yes/no"..! But anyway, it's like asking where the currency is when you pay by credit card. There is no physical currency involved, it's just ones and zeros ricocheting around between various computers. This isn't fraud, it's a fact of everyday life.
RE: Black Ops & Red Ink: The Pentagon's $21 Trillion Disappearing Trick