Sunday, January 30, 2011

Lies, damn lies and statistics...

Greetings good citizen,

It’s reasonably ‘safe’ to speak my mind here behind the ‘opt in’ wall that Blogger provides. Naturally, safety comes at a price. I’ve seen readership drop dramatically since I ceased posting on Conceptual Guerilla.

Whatever…I don’t tend to sweat the small stuff.

Which is to point out that there are much larger, er, situations to stay on top of.

Like the relentless torrent of ‘dis-information’ the Corporate owned media continues to spew.

The latest ‘puzzler’ to be pawned off by the professional liars of the CO media is the 4th quarter GDP number, which with unemployment of the charts, comes in at a hefty 3.2%.

The ‘rationale’ behind this incredible claim…’the recovery’ is taking place somewhere else on the planet (but ‘magically’ the US economy is expanding because of it!)

Worse, these same idiots tell us that the Chinese economy continues to expand at more than a 10% annual rate, but, the question remains unanswered. Just who the fuck are they selling to? Name the global economy that isn’t bankrupting itself to provide its citizens with basic services?

(Understand the challenge is literal, name ONE economy that ISN'T busting at the seams...and you can't because they're ALL CONNECTED!)

Must be that ’free trade agreement’ we signed with MARS last month!

OR it could just be more smoke and mirrors

No. 347: 4th Quarter GDP, December Durable Goods, Home Sales

January 28th, 2011

"Advance" 4th-Quarter GDP Estimate Was Meaningless
Durable Goods Orders Fell Fourth Straight Month and Fourth-Quarter Housing Market Conditions Remain Bleak More ...

Housing has been down for what, three years now? (Going into its fourth year)

Isn’t it curious the same ‘happy talk’ crowd totally ignores the single largest factor here and that factor is the LACK OF QUALIFIED BUYERS!

Mr. Williams (of shadow stats) measures the economy the ‘old fashioned way’, this is why his figures don’t ‘jive’ with the bullshit ‘official’ ones.

How can our GDP be 3.2% when the gains in the ‘liars (stock) market’ are due to the Fed pumping up the price of, er, ‘assets’?

If we leave it to the bandits to determine what is or isn’t banditry, the abuse of power will always go ‘underreported’

Worse, the rampant ‘theft’ continues unabated.

We will soon encounter some ‘massive’ imbalances in the commodities markets that will threaten every government, even the most brutal dictatorship, around the planet.

Can this be stopped?

Like everything which has gone before, the answer is ‘yes and no’.

The ‘fuck you, pay me’ crowd CAN be stopped in their tracks BUT the people charged with executing this straight-forward task seem to be in the pay of the criminals, creating a conflict.

So once again we will all suffer needlessly for the greed of a few.

  Zero Total Credit Expansion in 2009-10

Credit expansion in the private sector collapsed after 2008 with the financial sector leading the way  down by contracting over 15% in two years.   The federal government took over as its borrowing zoomed 76% after 2007.  Net-net, however, total credit outstanding has been flat in 2009 and 2010, at least until the end of the third quarter (latest data available).

It seems to me, therefore, that QE1 and QE2 have merely substituted for  some of the "money" that has been destroyed via debt defaults and should not in theory create overall inflationary pressures.  But markets are mostly psychological manifestations and not theoretical structures;  if punters believe new money is pouring out of the printing presses, then they bet accordingly and commodities - to name but one - rise in price.  That's what I call Quantum Finance or, Perception Creates Reality.

Looking at things from a longer-term perspective it is obvious that total debt (i.e. money) and prices should move together: if there is more money chasing goods and services prices will inevitably rise.  Commodity prices have tripled in the last ten years (see chart below - click to enlarge).

which brings us back to today’s ‘theme’, if you will. Allow the criminals to determine what is or isn’t a crime and soon you have all manners of , er, ‘anti-social’ behavior protected by law.

Vigilance is much easier said than done, worse, the ‘guard dog’ is so old it is both totally blind and deaf (along with being toothless.)

Depending on how you look at it good citizen, it is either too late or too soon to replace it.

Thanks for letting me inside your head,


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