They also lie about the real inflation rate, so they can give zero or almost zero Cost of Living Allowance raises to Social Security recipients and military retirement pensions.
Posted on 12/03/2016 8:53:23 AM PST by Rockitz
The Fed has a very serious problem on its hands.
That problem concerns the fact that for seven years the Fed has spread the myth of a “recovery.”
I say “myth” because the reality is that when you remove accounting gimmicks, the US has been a “hair’s breadth” away from a recession since 2010.
The most obvious gimmick being employed is the phony “deflator” used to understate inflation and overstate growth.
Everyone knows that the official CPI measure for inflation is bogus. But the Fed routinely uses a deflator that is even lower that CPI when calculating GDP.
This sounds rather technical, so let’s run through this one step at a time.
Consider this simple example. Let’s say that the US GDP grew by 10% last year. Now let’s say that inflation also grew by 10%. In this scenario, real inflation adjusted GDP growth was ZERO.
However, announcing ZERO GDP growth is a major problem politically. So what do the Feds do? They claim that inflation was just 8%, and BOOM you’ve got 2% GDP growth announced for a year in which real GDP growth was actually zero.
This is one of the biggest games being played by the Fed post-2008. By using a deflator metric that is way below even the bogus CPI measure, the Fed is dramatically understating inflation and overstating GDP growth.
By using nominal GDP measures, you remove the Feds’ phony deflator metric. With that in mind, consider the year over year change in nominal GDP that has occurred in the US since 2011.
As you can see, since 2011, the nominal GDP has at levels that have signaled RECESSIONS at any other point in the last 30 years.
(Excerpt) Read more at zerohedge.com ...
I beg to differ. We have been in a depression for eight years , but the NWO has been hiding it with these new ways of figuring. 94 million not working? 25 trillion in debt (real figures)? 37% unemployment? Food stamps, welfare, SNAP, etc. etc (I actually lost track of those figures). NOW we are worried about a recession? The Dems, NWO WILL make sure it happens just to say Trump did it.
Do you know what you call being on the vere of recession for 5 years?
Being in a recession.
Here in NJ the Greater Depression never ended; more job losses, foreclosures, and Americans fleeing each year...
I feel for youse (couldn't help it - sorry) - I would imagine a lot of the liberal bastions are to the point where the only way to redeem them is to move enough folks out until they collapse then begin anew. The painful part is that there are a lot of good folks stuck in them that keep getting kicked in the teeth. I grew up In Rochester, NY and the suburbs south of it and left when I joined the military - trips back over the years showed a great deterioration of the inner city and the loss of a lot of pretty big businesses - with Kodak being one of the most recent of those to die the death of liberal PC stagnation.
Stripped of accounting gimmicks, the US has been in flat-out capital-D Depression since the tech bubble popped in the late 1990s.
They also lie about the real inflation rate, so they can give zero or almost zero Cost of Living Allowance raises to Social Security recipients and military retirement pensions.
If we truly stripped all accounting gimmicks we would find ourselves in a lot worse shape than a recession.
Obama has accomplished what is tantamount to “wealth rape”.
It would be an amazing thing if Mr. Trump ordered all federal agencies to begin reporting the absolute numbers on the economy and everything else. Start from scratch, do it honestly from here on out. No more phony B.S.
I'd recommend going slowly on that. While it is imperative, it needs to be done gradually, over 4 years, to avoid spooking markets.
Yep. Since the fall of 2008 and probably even since January 2007 when the first signs of unraveling were starting to appear.
You’re right, and we’ve reached a point here in NJ where nobody wants to buy a share in our massive IOUs by buying a house or opening a business here. The death spiral is speeding up, being helped along by trafficking Third Worlders here to keep schools, housing, and store aisles full...
Hare breadth there is not. Recession reality there is
The economic activity has been diminished and the economy has barely grown if at all. Compared to history, the level of economy activity is lessened, depressed when adjusted for inflation that is miss measured.
The Obama administration is all about presenting numbers that are politically correct rather than numerically accurate. It is Black Math
You are correct.
I’m sure that Obama is pissed that problems of his making are already solved while he still occupies the seat.
Government and education are the only sectors that seem to have grown.
Worse than that, the Republicans were afraid of being called racists and not being invited to all the right Georgetown Cocktail Parties.
Wow, very telling graphic!!!
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