Deceptive Data: How Can We Rely On Government Figures?
The federal government collection of economic data should be objective and reliable. It is not supposed to be deceptive data or misleading figures. For example, in collecting the Census information, do you want them to report exactly how many people are residing in the US? Or do you want them to lower the number of figures (if one is concerned about overpopulation) or increase the figures in a state so that particular state can argue they are entitled to another U.S. Congressional seat at the expense of another state?
Just like when you hire an accountant do you want that accountant to report the numbers accurately or fudge the numbers and get you in a lawsuit, or worse, a tax audit?
When we go to the grocery store and see the size of packages shrinking, the price of products going up and cheaper products being substituted, we know instinctly that the government monthly and yearly figures on food inflation just does not jive.
But what if those figures, although we know instinctly they are wrong, greatly distort the level of inflation? What if the economic situation is much more serious than even our gut instincts tell us? Although that may be really bad news and we don’t want to hear it, is it better that we know so we can make more prudent decisions? Or is it better to ignore it and have deep regrets later when we could have mitigated our losses?
As a former litigator I can tell you when there is smoke, and someone is trying to significantly distort or hide the truth, there is usually a forest fire lurking around the corner. After all, if things were not really bad, what is the motivation to mislead?
Please carefully read the next article. Distortions like this just do not go on unless things are very ill internally.
Some may argue that the government may not want to upset or alarm you and they think they can resolve things before it gets out of hand. This is akin to a spouse, taking money from the joint account without telling you, spending it foolishly but thinking that they can put the money back in the account before the other spouse discovers it. If you’re the spouse not “dipping in the kitty” do you want to know what’s happening before all the money is gone or do you want to first learn about it when all the money has vanished or the well is dry? (I can hear it now: Honey, I really needed the money. You have too many pressures on you. I did not want to add any more. I thought I could handle this….Yeah, sure!)
What’s different about a domestic “breach of fiduciary duty” and the government in this situation? Feel free to share your thoughts.
Stone Cold Proof That the Government Economic Numbers Are Being Highly Manipulated
By Michael Snyder of the Economic Collapse Blog
How in the world does the government expect us to trust the economic numbers that they give us anymore? For a long time, many have suspected that they were being manipulated, and as you will see below we now have stone cold proof that this is indeed the case. But first, let’s talk about the revised GDP number for the first quarter of 2014 that was just released. Initially, they told us that the U.S. economy only shrank by 0.1 percent in Q1. Then that was revised down to a 1.0 percent contraction, and now we are being informed that the economy actually contracted by a whopping 2.9 percent during the first quarter. So what are we actually supposed to believe? Sometimes I almost get the feeling that government bureaucrats are just throwing darts at a dartboard in order to get these numbers. Of course that is not actually true, but how do we know that we can actually trust the numbers that they give to us?
Over at shadowstats.com, John Williams publishes alternative economic statistics that he believes are much more realistic than the government numbers. According to his figures, the U.S. economy has actually been continually contracting since 2005. That would mean that we have been in a recession for the last nine years.