Guest Post: Who's Lying?

Tyler Durden's picture

Submitted by Jim Quinn of The Burning Platform

Who's Lying?

Have you noticed the latest sound bites coming from the punditry in
the corporate mainstream media? Here is the latest wisdom flowing from
the lying mouthpieces of the ruling oligarchy (Wall Street, Washington
DC, Mega-corporations):

The economy is recovering and employment is growing.

Consumers are deleveraging, saving and using cash for purchases.

Retailers are doing fantastic as consumers increase spending.

These are the three themes being proclaimed
simultaneously by the mainstream media. Every time I hear these themes
proclaimed, I want to shout out like Joe Wilson – “YOU LIE!!!”

How can consumers be deleveraging, saving and increasing spending at the same time? Let’s examine the facts to see who is lying.

The fallacy that the economy is recovering
and employment is growing can be put to rest by an examination of the
BLS data accessed here:

The number of Americans employed over the last few years is as follows:

  • 2007 – 146.0 million
  • 2008 – 145.5 million
  • 2009 – 139.9 million
  • 2010 – 138.9 million

It seems there are 7.1 million less
employed people than there were three years ago. Contrary to the spin
from the White House, there are 1 million less people employed today
than during the horrific 2009 year. Luckily, another 6 million people
left the work force, or we’d really have a problem. The truth is that if
the government actually counted everyone in the country who wants a
job, the unemployment rate is not 9.8%, but 23% and it continues to

The economic recovery lie can be refuted by examining the data from the BEA located HERE and HERE.

The GDP of the US peaked at $14.5 trillion in the 3rd quarter of
2008. Today it stands at $14.8 trillion, two years later. GDP has gone
up for one reason and one reason only – the Federal Government has
borrowed trillions from future generations in order to artificially prop
up a system already crumbling from the weight of too much debt.
Highlights from the GDP calculation are:

  • Private investment is $216 billion lower today than it was in the 3rd quarter of 2008.
  • Exports are $80 billion lower today than they were in the 3rd quarter of 2008.

You may ask yourself how can GDP be higher if private businesses are
investing less and exporting less. The answer of course is your friendly
neighborhood Feds. The Federal government is spending $128 billion more
today than it was in 2008. The last piece to the puzzle is the beloved
consumer, who accounts for 70% of GDP. Good old Joe Sixpack has ramped
up his spending by a good $470 billion since the 1st quarter of 2009.
With this figure, we must be in a strong recovery. Larry Kudlow says so.

A little more digging on the BEA website reveals some interesting data:

  • Personal income has risen by $300 billion since the 1st quarter of 2008.
  • Strangely, private industry wages have DECLINED by $213 billion since the 1st quarter of 2008.

It seems that personal income has risen due to two major items. You
will be glad to know that government wages have risen by $58 billion and
drum roll please: government entitlement transfers have increased by
$523 billion since the 1st quarter of 2008. The Federal government has
borrowed hundreds of billions from future generations and paid it out in
the form of unemployment benefits and other social programs so that
consumers would spend it today. This is how you generate a positive GDP,
without generating a real recovery. And, of course, if the government
used an honest CPI rate, GDP would still be negative, just as it has
been for most of the past decade.

The great consumer deleveraging lie has been ongoing for the last six
months. The savings rate has “surged” from 4.8% in the 2nd quarter of
2008 to 5.8% today. The savings rate is calculated as what is left over
when you subtract personal consumption expenditures from disposable
personal income. The surge in saving is the result of the Federal
government borrowing from the Chinese and handing it to consumers to
spend. If the government wasn’t transferring these funds from future
generations to current generations, the savings rate would be 1.2%.

Revolving consumer debt (credit cards) has declined by $173 billion
in the last two years. This must mean that consumers are deleveraging.

Total consumer credit peaked at $13.9 trillion in the 1st quarter of
2008 and currently stands at $13.4 trillion. It sure looks like consumer
deleveraging. Consumers must have paid off $500 billion of debt. But,
the facts obliterate this fallacy. The Wall Street banks have written
off in excess of $600 billion since the 1st quarter of 2008, as reported
by the Wall Street Journal.
This means that consumers are actually charging more on their credit
cards than they were in 2008. Having your debt written off, rather than
paying it off says much about the great economic recovery of 2010.

The false reports circulating on network news programs is that
Americans are paying cash, rather than using credit cards. This is
completely false, as both Visa and Mastercard reported increases in
transaction volumes in their last quarters. Having worked for a big box
retailer, I know that the average credit card transaction is 50% to 70%
higher than the average cash transaction. If people were truly charging
less, the average ticket at the major retailers would be plunging.
Retail sales would be plunging. They are not plunging, as the major US
retailers report decent comparable store sales in the 2% to 5% range.

The National Retail Federation has forecast November- December
holiday sales will rise by 2.3 percent from a year ago, the most since
2006. A Bloomberg survey taken Dec. 2 to Dec. 8 showed economists raised
projections for consumer purchases, the biggest part of the economy, to
2.6 percent for next year, up from their 2.3 percent estimate the prior

A little reality check about retail sales is in order. According to
the US Census Bureau, total retail sales over the last few years are as

  • 2007 – $4.5 trillion
  • 2008 – $4.4 trillion
  • 2009 – $4.1 trillion
  • 2010 – $4.4 trillion (estimated)

The fact is that there are thousands more retail outlets today than
there were in 2007, and total sales are still below the level reached in
2007. Not only that, but even using the government manipulated CPI,
inflation has risen 8% since 2007. On an inflation adjusted basis, 2007
retail sales in today’s dollars would be $4.9 trillion. Using the real
inflation rate of 20% over this time frame would generate an inflation
adjusted retail sales figure of $5.4 trillion. As you can see, the great
retail recovery of 2010 is a sham. Comparable store sales increases of
3% are inflation adjusted decreases of 5%. If you drive around with your
eyes open, you would think the hot new retailer in America is called SPACE AVAILABLE.  

I hate to be a wet blanket during this festive holiday season, but
the truth is that there is no self sustaining recovery happening. The
powers that be, with the help of their lackeys in the mainstream media
are desperately trying to convince you that everything is alright. It is
not alright. It is getting worse by the day. The only people spending
are Lloyd Blankfein and his ilk, while middle class Americans sink
further into despair and debt.

Who’s lying? You know.

            RULING ELITE


            MIDDLE CLASS

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SilverIsKing's picture

"Let’s examine the facts to see who is lying."

Do we really need facts to see it?  Maybe one slightly blind eye would do the trick.

DavidPierre's picture

SmokeyQuinn again displaying his bestest yet


 A man who sucks at the .gov teat all day at the Wharton School of 'Busyness', why actually blogging away on his website @ .

"It seems that personal income has risen due to two major items. You will be glad to know that government wages have risen by $58 billion..."

The only people spending are the hyprocrites  like  SmokeyQuinn ... who took his entire family on a week long cruise to the Caribbean recently, while middle class Americans, (who are not working for the state), sink further into despair and debt.


Who’s lying? You know!  Don't you... SmokeyQuinn!

{*about The9/11}

EvlTheCat's picture

Could you please elaborate on why taking your family on vacation would be hypocritical? 

Are we all suppose to cancel our lives on the off chance the world will end tomorrow?  Am I suppose to write a check to the idiotic middle class, while I spent the last 10 years saving every penny, storing food, buying gold/silver, and alternate currencies? 

I can't speak for Quinn, but for me and my family, it's party time now. I went to Disney World over Thanksgiving and stayed at the park for 5 days.  I happily wear the crown of hypocrite!

While I watched all my friends blow their wads every month on crap like big screen TV to watch football, the latest iPod type gadgets, leasing BMW's, and Mercedes to look stylish, frequenting the mall once a week to blow a load on useless clothes, and buying $300,000+ homes because they were too stupid to realize they were over priced.  We saved, we lived within our means, we bought, and paid off, the dorky fuel efficient car, and we bought and sold our house when the market was down then up.

I am tired of the middle class (myself included) bitching about being blindsided by fraudulent bank practices, whining that it's not our fault we are being sucked into a quagmire of debt.  I am not even a financial genius and I figured out what the hell was going on?  And to top it off I stay home and raise my kids while my wife works.  How can we do all of this on one salary, two kids, two mediocre cars, two home mortgages?  We don't waste f-ing money, we plan and we save. 

Is it getting worse?  You damn right it is.  Am I scared?  You damn right I am, but I can tell you one thing my kids are going to have some fun while they are still young.  And while I can tap my vast savings to do so.  Because I will be damned if I am going to hand one penny more over to the government after they have already taken enough, the middle class after they have squandered so much, and the poor whose hand never stops extending.

Rastadamus's picture

I'm with you. I suffered privation and being the laughingstock of all my friends and now, I'm not laughing, I'm enjoying myself.

Wish it didn't have to go down like this, but it is, and I ain't.

Mark Medinnus's picture

Why can't we flag a comment positively?

Walter_Sobchak's picture

how bout a thumbs up and thumbs down counter.


I'm long cannabis myself.

DavidPierre's picture

What can one say to top this...

"I went to Disney World over Thanksgiving and stayed at the park for 5 days.  I happily wear the crown of hypocrite!"

Yuppers!... Spending your quality time and limited $ on Disney lies and propaganda 'to have some fun' sure makes sense and...

'... teach'ed you's chillen well...'


Mickey Mouse Monopoly {Propaganda}



EvlTheCat's picture

That is it? That is all you can conjure?  BTW, I didn't junk you because every time you write something you show the world what you are truly made of.

And no I actually spent my quality time with my kids, and my wife.  Disney only received a small portion of my entertainment expenditures because I went in the off season.  I get to cherish the memories of their smiling faces, and comical laughter. Oh, and I did stop at Cape Canaveral on the way back to give them a little education about the Universe.  But I do appreciate your concern in both areas.

Oh, and my children know how to plant, grow and harvest their own food.  Do yours?  I sure hope so. Because if they don't, and we get lucky and the government doesn't take away our right to grow our own food, I will be glad to sell you some from my plot of dirt, but I only take silver and or gold depending on how desperate times are.  I have a fishing canal next to my house too.  If you would like to go hunting I will be happy to let you lease my property up North so you can get some nice boar?

Have a happy holiday, a great life.

DavidPierre's picture

"Oh, and my children know how to plant, grow and harvest their own food.  Do yours?"


Got a great harvest this year.  Even the 3 yr. old grand daughter was out picking the potatoes with me.  I also... 'got to cherish the memories of her smiling face, and comical laughter.' (and it was free of the  toxic mental slug of Disney (Edward Barnays) Commercial Propaganda.  

The huntin and fishin is great, here in the valleys, way back up in the Northern Rocky Mountains with that great big lake.  I just be a'lovin them 'Slow Elk' and big Rainbows.  Not to mention all that great BC Bud... {free to locals...if you know how keep your yap shut.}

After my 40 years here, tis truly a wonder to my eyes  beholding U'alls that are finally waking up and understanding the 'NAZI PROGOM'...

{a form of violent riot, a mob action, approved and condoned by government and military authorities}...

being brought to a final climax now in the USSA.


How to Brainwash a Nation



EvlTheCat's picture

Do you believe in God?  Humility is one characteristic you missed out on at Sunday school.  I have never before, engaged a person before, who obviously has the knowledge and skills to survive, but lacks even the most basic ability to hold an adult conversation.  Why do you even bother engaging us mere mortals, if for nothing else to rub our nose in the shit?  Do you only come online to fling vial and dusgust at the world, not searching for one kindred spirit?  I hope the mountains can continue to enshrine your ego because if it grows any larger I fear it may blot out the sun.

And no I did not buy my children any toys there.  We went for the rides, but I am sure by engaging in these I have torn some hole in the fabric of the universe, which will doom us all to a burning hell.

I can't promise you much else David, but I will make this the last time I post to one of your replies. No matter how vial you are to me.

Enjoy your life!

EvlTheCat's picture

And to address your obvious disgust at Disney separately.  As a Floridian I can tell you honestly there are a lot of happy people here because Disney is one of the largest employers in the U.S.. They have only laid off 2000 employees since the economic downturn, and a lot of people feel pretty lucky.  I may not agree with everything Disney does these days, but I am happy for one thing.  They are employing my fellow Floridians.

DavidPierre's picture

U'alls just a keeps a'bein happys and pretty luckies... with makin that mini-mums wages... a'workin for da 'MAN' that "is one of the largest employers in the U.S.S.A. ...

Mean whiles they keeps a'peddling more lies and falsey-fides and child-likened imaginings to yous' fellow MORONS. 

StychoKiller's picture

I understand what you're saying, but Children don't thrive too well in a bunker, go b!tch at some bankster instead.

ElvisDog's picture

Hey, I hope the ponzi holds together for 7 more months so my family and I can go to the Kaanapali Alii for a week.

Might as well enjoy ourselves while we can.

Smokey1's picture

David Pierre is a traitor coward who fled in disgrace to Canada instead of serving in Viet Nam. He is a deluded fucking nutcase and consumed with 9/11 conspiracy theories and other such nonsense. Quinn allows much latitude for expression on his site, and I  have been known to make off-color and/or racist comments over there. David Pierre siezes on this and claims Quinn and I are the same person. DP is angry that Quinn booted his sorry ass off the site for spamming 9/11 conspiracy shit. David Pierre is mentally unstable and in severe need of professional psychological evaluation.

DavidPierre's picture


You is a'sttt...sttt...sttt...utterering and a'blathering and a'caring on as if you is got hot pee runnin down you leg in you's anger and frustrations. 

Why it a proved and beyond a doubt...backed by other ZH posters... and as well documented and foots-noted as is possible on the inner-netty: by  QUINN'S OWN FORMER WEBMASTER... that Jim Quinn and Smokey is and are the sames and like MORONS.

Now... just gives my a few moments and to go a'lookin back so to find find all them many and damn-nationing links to proves it a'once and for alls to see.

I wills be back in short orders.

DavidPierre's picture

Some of that basic research 


Go backing up using these links and read SmokeyQuinn's sordid history.

Now this is just some of the classic shit SmokeyQuinn runs on his blog.





Jason Rines, @ Smokey Quinn's former webmaster...

"Smokey and Jim are the same people, YES.

I mapped both the I.P.'s back to his office at Wharton."

Now... this is the teste-moanial WORD of a fine upstanding young man, and ZH member, who RAN AND GAVE FOR FREE, SmokeyQuinn a wonderful website for over a year.

His webmaster dumped him after many and repeated lies and out right class bigotry and obscene racist postings.  Quinn is a hypocrite surrounding himself by 'ewe lovin' sycophants.


Quinn is THE problem... not just a symptom.

The guy is absolutely stupidist about The9/11  and believes everything in the offical lies and untruths of the Mafia/Government conspiracy theory.

"YUP!... Three buildings just fall down...end of story."

He's just a convenient tool for the system...spouting economic BS... just more Smokey & Mirrors.

 SmokeyQuinn's is an angry Philly hillbilly: an ivory tower right wing racist reactionary. Quinn sucks at the government tit, while pretending to have all these great dem dar "Fourth Turding" insights!



Go on back to your shit blog!  You will always have 'your sheep' who will still respect you in the morning.

EvlTheCat's picture

Thanks for the background Smokey1.  I am new to ZH, but not new to individuals like David.  In fact I have an uncle who probably is his neighbor in whatever compound he resides in. 

DavidPierre's picture

Hey likkey SmokeyQuinn so muchy go checks out his recent comments over at where they are presently indulging in some more racist shit.

Smokey says:

That’s liberals putting your tax money to work. Malcolm X—–black supremacist, avowed racist, alley nigger.

ragman—-You reckon if any of the Founding Fathers had been a nigger, there is a remote chance there would be a mural of him?


Like or Dislike: 3  1

13th December 2010 at 4:14 pm


I'm just a shill for SmokeyQuinn... sending MORONS by the dozen over to his blog. 

You  next?

DavidPierre's picture


In case you miss it... left you a couple of love songs here...#803949

I do nose how much you luvs the polelitekal-songs and funnies-comics and moving-pictures and such like important cultural stuff.

EvlTheCat's picture

What astounds me Smokey1 is that by his own admission he has at least one grandchild.  Meaning some women out there found him comely enough to bread with.  Maybe it was the 2 minutes after he was done, and the silence was broken, she began to regreted her choice?

DavidPierre's picture


Yous MORONS just'a proves me a'rights overs and overs agins.

I for surely tooks ma 'bread' and a split U'alls MORONS Nazi Homeland when TheNixon was Mine Furher.

*I was a readin a whiles back yous no longers wants to play with I ...

Pity!  Yous speells worsen I does.

Smokey1's picture

EvlTheCat----There are many regulars on Quinn's site. All of them know that Quinn and me are different people. I get in arguments with Quinn on his site all the time about various issues. Even glancing at his website will verify this and expose David Pierre as a liar. Nearly everybody on that site ridicules DP because he has a well deserved reputation as a psychotic fool. Every article that this site picks up of Quinn's, DP starts in with his lies about Quinn. David Pierre is a sociopath that needs professional help.

EvlTheCat's picture

Smokey1 my brief encounter with mister Pierre is what it is.  Time is never wasted when exposing fools to the world.  Especially ones who are so willing and eager to do it themselves.  Many people with very valid arguments just seem to loose all contact with reality when faced with the truth. 

I bid you a good evening, and I do apologize for the misspellings in my last post.  It seems that someone was so eager to flame me that I was unable to go back and correct my two mistakes.

I look forward to chatting with you again in the future.

Smokey1's picture

Best to you, EvlTheCat.

Jim Quinn's picture


Stop over at The Burning Platform if you want to avoid David Pierre. He is banned from my site for being a pathetic excuse for a human being.


DavidPierre's picture

Bring your own KY jell for SmokeyQuinn is  obscenely anal fixated.  His site... just about as bad a Doucheingger's but with lots more racism thrown into the mix... for those so inclined.

I'm disappointed in you MORON... what no obscenities or references to your love of bestiality with ewes?

When you going to do another 9/11 on ZH to let the folks know... 'how's reallies smarts yous is'?


EvlTheCat's picture

Mr. Quinn I appreciate the invitation, and happily accept.  With such a white hot poker of an endorsement, as has been given by Mr. Pierre personally, I would be a moron not to check it out.  If not for the insightful information, but to escape the malignant nature of David Pierre.

P.S. I hope you and yours had a splendid Thanksgiving vacation?!?  That is, if there is any fact in what Mr. Pierre has divulged?

DavidPierre's picture


There's I gots a really fine newbie for yous MORONS on to abuse and ridicule and mock with cartoons and such like features of the place.

Tell him to go and read Your 30 Blocks of Racism Thread and then he can get back to me.  You know the thread you went and tried to clean up by deleting after I called you out on ZH.  Why don't you come out and lie some more and deny this also...MORON!

DavidPierre's picture


Someone else be a'callin you out for your plagiarism.

on Mon, 12/13/2010 - 21:03

john williams of likes link love and it least a mention when you use his charts mr quincy.

Seer's picture

Not in defense of DP, but this "traitor" shit is, well, it's shit, unless, of course, one is a traitor by not committing crimes (Viet Nam).

Also, 9/11, the "official" story is closer to a conspiracy theory than the apparent reality (you know, pesky gravity getting in the way of that concocted BS).

You're free to bash DP, but these other ramblings don't exactly paint you as a some sort of knowledgeable saint...

DavidPierre's picture


Those are some fine, understanding and upstanding words and 'The DP' is most and awful gratified and humbled to be taken somewhat seriously in this here esteemed and learned journal by peoples like you.

ps. happy anniversary!

pps. Love songs to SmokeyQuinn


pamriallc's picture

Just awesome Tyler....  Hard Hitting as usual....

Remember, though, that unemployment or rather, the "rate of employment" is a lagging indicator and not a leading indicator.

Typically you'd see more action that we've seen so far on the employment front, but my view is that we'll see it soon enough,  We'd have witnessed employment and credit ressurection more quickly *without* all of this stimulus, but since we didn't have a vote on that one, we're now having to work it out more creatively given what we're being left with.  Not ideal by a long shot.

Sold my farm a few months ago, now trying to acquire a much larger one.

Gotta hit all of the elements of investment.  Should we see a total collapse, we're left with the *ONE* eternal truism for any government, capitalist or quasi-capitalist system.

***You only own what "people" agree that you own***

Regardless of the final outcome, diversification is absolutely critical to long term survival.

Become a farmer?  Sure, if that's what it takes, you bet....

Shawn A. Mesaros, Pacific Asset Management  (Pamria, LLC)

Windemup's picture

The same blind eye that lets these lies pass for facts?

caconhma's picture

In a nation of blind people, an one-eye man is a king.

In a land of stupid and ignorant people, the government is a kingdom of truth.

Mr Lennon Hendrix's picture

Using the term "ruling elite" is a stupid way to trick yourself into continuing the paradigm.  They do not rule and they are not elite.  It is only by accepting these terms that this could happen.

The problem is that people, as the tribe, do not hold their own wealth, and by letting banks hold the ways and means, the entire system is ruined.  It is very simple:  Buy Silver.

Hold Your Own; $500 Silver:

unwashedmass's picture

ah, why get so bent out of shape? watching CNBC awhile ago, there was a talking head who proclaimed smugly, "this is a pretty comfortable place here now for retail to get back into stocks"...

i mean when you got people who can lie thru their teeth as smoothly as this as the Dow hits lunatic highs that every technician is salivating to short......

akak's picture

And yet ZeroHedge continues to post the same kind of ridiculous, dissembling, disingenuous CNBC-like crap, via the contributions of Leo Kovilakis.  His every post, and most especially his execrably pro-establishment, pro-financial-corruption comments in the ZH forum, runs exactly contrary to the anti-establishment, anti-corruption, pro-transparency, pro-reform message disseminated by everything else on ZeroHedge.  So what is his purpose here?

DoChenRollingBearing's picture

Fellow warrior akak!

ZH has always seemed to me to be a freedom oriented site.  Let a 1000 trolls bloom!

We´ll just blow them away!  Like you, dumpster, Colonel_Cooper, etc. did to Bravo!

I´ll take yellow gold over yellow sun Leo!

akak's picture

Let a 1000 trolls bloom!

Cool, that gives me the opportunity to use my 55 gallon drum of industrial-strength Roundup!

Must be just a coincidence that they put it in a gold-colored drum, too.

But I wonder, does it work on insects too?  I wouldn't want to miss Leo.

DoChenRollingBearing's picture

Any trolls come round my place after the SHTF, I will hose ´em down with my AK...

tmosley's picture

Why would you do that?  I'd rather give them a job--perhaps pumping out septic systems by hand.  They can get paid in all the shiny paper they want, or a silver dime a day.

DoChenRollingBearing's picture

OK, I will clarify.  People I know and (reasonably) trust I might hire in a SHTF scenario.

Rest of the trolls would have to move along.  Would you hire a troll, tmosley?  Having observed your replies, I don´t think so!

A silver dime a day to cut trees into firewood, I do like that idea.

tmosley's picture

I would indeed, provided it was menial and humiliating.  I'm happy to put food on their tables in exchange for labor.  Let them learn the true value of money, and the true value of their over-esteemed selves.

Of course, I wouldn't turn my back for a second, or let them near the house.  After all, the smell from the septic systems will be pretty bad.

New_Meat's picture

DCRB-please conserve what will be in short supply.

nay hose, that is for ... well ... others.

tap, Tap, ... TAP and service the next target.

rock'n roll is for newbies (FNGs) who, well, we can't afford to lose.

just sayin'

- Ned

Hook Line and Sphincter's picture

Don't use your own drum of Round-up.

I've been using the glyphosate in my urine to 'round-up' the weeds in the garden. That's the fringe benefit of what I get from eating corn products the last decade. 

Incidentally, did I mention that my woman squirts colloidal silver from her skene gland?

I'm a fortunate soul.

(I was sidetracked, Leo is useful in he provides counter-point [to the point on his head?]. So was JB, and I'm sad to see his trollilicious rantings disappear.)

Walter_Sobchak's picture

Incidentally, did I mention that my woman squirts colloidal silver from her skene gland?


-that's hottt

unununium's picture

Upgraded Cracklin' Rosie.  Get on board.

Cursive's picture

@Hook Line and Sinker

I am still laughing and my wife's pissed.  Thanks for the didactic laugh.