When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Tuesday, November 18, 2014

Fake Growth, Fake Jobs, Fake Economic Data, When Will It All End?

As reported in The New York Times:

"The economic statistics are fake. There is no real economic recovery... “Nobody can predict how long governments can get away with fake growth, fake money, fake jobs, fake financial stability, fake inflation numbers and fake income growth,” Mr. Singer wrote to his investors, according to a report by Bloomberg News... Greece used phony economic numbers to qualify for the eurozone... the deception succeeded... government statistics are often questionable and sometimes turn out to have been highly misleading... We now know the economy was much worse off in early 2009 than the economic statistics indicated at the time... The numbers on jobs and unemployment have become the most-watched statistics of this era, but they can be among the most confusing. That is because the figures come from two different surveys... they can radically disagree, with one survey showing an increase in employment and the other a decline. Both surveys have problems ... In the 10 months from April 2008 through January 2009, the current estimate is that the economy lost 1.9 million more jobs than the initial reports indicated. The figures in the household survey are rarely revised, but they are subject to significant sampling errors... month-to-month fluctuations may be meaningless... more people decline to be interviewed now... That may make the numbers less reliable than they used to be. The survey questions are complicated ... that latter index has not declined nearly as much as the regular unemployment rate. That fact has been noted by Janet L. Yellen, the Federal Reserve chairwoman, as an indication the job market is not as healthy as the unemployment rate might make it appear... what are people to make of the blizzard of economic statistics? First, be suspicious... Look for trends... pay attention to the real world around you... official statistics might be overstated ..." (emphasis added)

Fake! Fake! Fake! When and How will it all end?

The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects