Wednesday, June 13, 2018

Who needs George Orwell when the mainstream can sell 21% unemployment, 10% inflation, and -1% GDP as a roaring economy

One of the most famous terms coined from the book 1984 is that of Newspeak, and where Newspeak is a controlled language, of restricted grammar and limited vocabulary, a linguistic design meant to limit the freedom of thought—personal identity, self-expression, free will—that ideologically threatens the rĂ©gime of Big Brother and the Party, who thus criminalized such concepts as thoughtcrime, contradictions of Ingsoc orthodoxy.

Ie.... war is peace, freedom is slavery, etc...

And while this orthodoxy was only supposed to an idea from a fictional book, it is of course interesting to note that much of today's change in language has its roots in Newspeak, only where now it is known as political correctness.

In today's economic and political world, Newspeak is a very real concept used to 'spin' bad information into something good.  And nothing could cement this more than in how for more than a decade, the Federal Reserve and Executive Branch have manipulated bad economic data to the point where they have the audacity to call it good.

Official central bank and government economic numbers:

Unemployment:  3.8%

GDP:  2.3%

Inflation:  2.3%

Actual economic numbers measured using 1980 models:

Unemployment 21%

GDP: -1%

Inflation: 10%
Let’s start by talking about unemployment.  We are being told that the unemployment rate in the United States is currently “3.8 percent”, which would be the lowest that it has been “in nearly 50 years”
It would be great, if the numbers that they were using were honest. 
The truth, of course, is that the percentage of the population that is employed has barely budged since the depths of the last recession.  According to John Williams, if honest numbers were being used the unemployment rate would actually be 21.5 percent today
If inflation was still calculated the way that it was in 1990, the inflation rate would be 6 percent today instead of about 3 percent. 
And if inflation was still calculated the way that it was in 1980, the inflation rate would be about 10 percent today. 
Because inflation is massively understated, that has a tremendous effect on our GDP numbers as well. 
If accurate inflation numbers were being used, we would still be in a recession right now.
In fact, John Williams insists that we would still be in a recession that started back in 2004. - The Economics Collapse Blog
As the markets await what is sure to be one of the more crucial decisions of the year from the Fed later today, the most disconcerting part in their policy making is that since they have lied so long about the real state of the economy, no matter what they choose to do in regards to interest rates will inevitably result in either no effect, or even worse, a negative effect for America.


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