Sunday, January 01, 2012

Debt and Unemployment: Government Cuts Numbers From Whole Cloth

As we have pointed out in this blog throughout 2011, the government's numbers, whether GDP, debt, growth, inflation, or unemployment, are pure fiction. Perhaps the most perplexing are the debt and unemployment figures released by the federal government regularly which bear no relationship to reality and on which businesses rely to make critical decisions. Even more disturbing is the blind acceptance by mainstream media and the people of these fabrications.

Thanks to WorldNetDaily for the following summary rarely reported by mainstream media. The story can be found at:

"The true rate of unemployment and inflation and the real state of the U.S. economy . . . is far worse than reported.

"When the Obama administration prepared to finance a 2011 budget deficit expected to top $1.6 trillion, the American public was largely unaware that the true negative net worth of the federal government reached $76.3 trillion last year.

"The figure was five times the 2010 gross domestic product of the United States and exceeded the estimated gross domestic product for the world by approximately $14.4 trillion, according to economist John Williams.

"Statistics compiled by Williams, based on the 2010 Financial Report of the United States Government, demonstrate the real 2010 federal budget deficit was $5.3 trillion, not the $1.3 trillion reported by the Congressional Budget Office.

"The difference between the $1.3 trillion "official" 2010 federal budget deficit numbers and the $5.3 trillion budget deficit is that the official budget deficit is calculated on a cash basis, where all tax receipts, including Social Security tax receipts, are used to pay government liabilities as they occur.

"The government cannot raise taxes high enough to bring the budget into balance," Williams said. "You could tax 100 percent of everyone's income and 100 percent of corporate profits and the U.S. government would still be showing a federal budget deficit on a GAAP accounting basis."

"Meanwhile, the government's own statistics showed in December that if the same number of people were seeking work today as in 2007, the jobless rate would be 11 percent.

"While the Obama administration touted a November unemployment rate of 8 percent, much of it was a result of people leaving the labor force, not because they've become sick or too old, but because they have been unable to find a job and have stopped trying.

"What's more, the seasonally-adjusted rate adjusted for long-term discouraged workers – who were defined out of official existence in 1994 – was more than 22 percent in November.

"The Bureau of Labor Statistics broadest measure of unemployment, which includes the short-term discouraged and other marginally attached works, along with part-time workers who can't find full-time employment is more than 15 percent.

"Methodological shifts in government reporting also have depressed reported inflation. If inflation were calculated the way it was in 1990, the annual rate would be nearly 7 percent."

Read more of the most ignored stories of 2011?



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