07 September 2015

Eating the seed corn.

The main economic releases from Washington—the ones that make the headline news: the unemployment rate, payroll jobs, GDP, and the consumer price index—are worthless. The unemployment rate does not include millions of unemployed, the CPI is rigged to undercount inflation, and as inflation is undercounted, real GDP is over-reported. Indeed, in my opinion and that of economic-statistician John Williams of shadowstats.com, nominal GDP deflated with a correct measure of inflation shows essentially no growth during the alleged recovery. What the government and financial media call economic growth is essentially price rises or inflation.

* * * *

What is happening to America is that all of the surplus in the system accumulated over decades of success is being used up.[1]

And in the process we are being subjected to base lies about "recovery" and the wisdom of our stimulus-crazed Keynesian central bankers. The icing on the cake applied by the political establishment is layer upon layer of dishonest "statistics."

If you have any belief that the economy, the legal system, the electoral system, our foreign policy, or the immigration fiasco are being managed by grownups and patriots, you have just woken up from a 30-year coma.

Notes
[1] "Whither The Economy?" By Paul Craig Roberts, Zero Hedge, 9/5/15.

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