Busted: Bankers and The Global Economy

January 10, 2009

Unemployment: Jiggering with Accounting

abc-news-job-loss1102008There is no question that American job losses over the last year have been stunning. Whether Americans like to admit the truth or not, over time the Federal Government has demonstrated that they feel compelled to dicker with statistics, often simply to make a single administration look better, if that is possible. As a result, most of the statistics and measures that are commonly published do not use the same standards as measures used consistently for decades. Instead, dickering with statistics has become a legendary propaganda tool, usually to make whatever the statistics are supposed to prove appear much better. This “dumbing down” of statistics is legendary with the Federal Reserve, notably in changing from M-3 statistics and is prevalent in Unemployment Statistics. You will find similar cheats when comparing state economies across the United States. It is all about the perception of the public and the attempt to more evenly distribute data.

At this posting, the “government darling” unemployment rate is 7.2%. By the end of 2009, this economist expects the unemployment rate to approximately double to just at 15%, although a proliferation of additional and unknown failures  could easily bring that number higher. Meanwhile, the real statistics that Americans are actually living with are higher as demonstrated in the chart below.

Chart of U.S. Unemployment
The passion of John Williams is to keep up with older and usually more accurate measures of economic statistics. The details at shadowstats.com, if you care to examine them, demonstrates the manipulation of data by government officials to their own ends. The average  and often clueless American citizen often wonders why he or she is having such a hard time treading economic water.  John Williams sheds a lot of light on this situation and has been doing so for years. This chart shows an unemployment rate approaching 18%. It all depends whom you choose to believe. ~ E. Manning

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