Guest Post: The 5 Economic "Big Lies" The Government Is Telling You

Tyler Durden's picture




 

Submitted by Michael Snyder of The Economic Collapse blog,

According to a whistleblower that has recently come forward, Census employees have been faking and manipulating U.S. employment numbers for years.  In fact, it is being alleged that this manipulation was a significant reason for why the official unemployment rate dipped sharply just before the last presidential election.  What you are about to read is incredibly disturbing.  The numbers that the American people depend upon to make important decisions are being faked.  But should we be surprised by this?  After all, Barack Obama has been caught telling dozens of major lies over the past five years.  At this point it is incredible that there are any Americans that still trust anything that comes out of his mouth.  And of course it is not just Obama that has been lying to us.

Corruption and deception are rampant throughout the entire federal government, and this has been the case for years.  Now that some light is being shed on this, hopefully the American people will respond with overwhelming outrage and disgust.

The whistleblower that I mentioned above has been speaking to John Crudele of the New York Post.  In his new article entitled "Census ‘faked’ 2012 election jobs report", he says that the huge decline in the unemployment rate in September 2012 was "manipulated"...

In the home stretch of the 2012 presidential campaign, from August to September, the unemployment rate fell sharply — raising eyebrows from Wall Street to Washington.

 

The decline — from 8.1 percent in August to 7.8 percent in September — might not have been all it seemed. The numbers, according to a reliable source, were manipulated.

Two years earlier, the Census had actually caught an employee "fabricating data", but according to this whistleblower the corruption at the Census Bureau goes much deeper than that...

And a knowledgeable source says the deception went beyond that one employee — that it escalated at the time President Obama was seeking reelection in 2012 and continues today.

 

“He’s not the only one,” said the source, who asked to remain anonymous for now but is willing to talk with the Labor Department and Congress if asked.

 

The Census employee caught faking the results is Julius Buckmon, according to confidential Census documents obtained by The Post. Buckmon told me in an interview this past weekend that he was told to make up information by higher-ups at Census.

Well, is it really such a big deal that some of the unemployment numbers were faked?

After all, hasn't the unemployment rate been consistently going down anyway?

Unfortunately, as you will see below, that is simply not the case.  The following are five massive economic lies that the government has been telling  you...

1. "The Unemployment Rate Has Been Steadily Going Down"

According to the official government numbers, the U.S. unemployment rate has fallen all the way down to 7.3 percent.

That sounds really good, and it would seem to imply that a higher percentage of the American people are now working.

Sadly, that is not the truth at all.

Posted below is one of my favorite charts.  The employment-population ratio measures the percentage of the working age population that actually has a job.  As you can see, this number fell dramatically during the last recession and since the end of 2009 it has remained remarkably flat.  In fact, it has stayed between 58 and 59 percent for 50 months in a row...

Employment-Population Ratio November 2013

At the moment, the employment-population ratio is just one-tenth of one percent above the lowest level that it has been throughout this entire crisis.

So are we in an "employment recovery"?

Absolutely not, and anyone that tries to tell you that is lying to you.

So how is the government getting the unemployment rate to go down?

Well, they are accomplishing this by pretending that millions upon millions of unemployed Americans have disappeared from the labor force.

According to the government, the percentage of Americans that want to work is now supposedly at a 35 year low...

Labor Force Participation Rate

If the labor force participation rate was still exactly where it was at when Barack Obama was first elected in 2008, the official unemployment rate would be about 11 percent right now.  People would be running around going crazy and wondering when the "economic depression" would finally end.

But when people hear "7.3 percent", that doesn't sound so bad.  It makes people feel better.

Of course if you are currently unemployed and looking for a job that doesn't exactly help you.  At this point there is intense competition even for minimum wage jobs in America.  For example, according to Business Insider you actually have a better statistical chance of getting into Harvard than you do of being hired at a new Wal-Mart that is opening up in the Washington D.C. area...

The store is currently combing through more than 23,000 applications for 600 available positions, reports NBC Washington.

 

That means that Wal-Mart will be able to hire one person for every 38 applications it receives — i.e., just 2.6% of applicants will walk out with a job.

 

That's more difficult than getting into Harvard. The Ivy League university accepts 6.1% of applicants.

2. "Inflation Is Low"

This is another lie that government officials love to tell.  In particular, the boys and girls over at the Federal Reserve love to try to convince all of us that inflation is super low because it gives them an excuse to recklessly print lots more money.

But anyone that goes to the grocery store or pays bills on a regular basis knows that there is plenty of inflation in the economy.  And if we were being given honest numbers, they would show that.

According to John Williams of shadowstats.com, if the U.S. inflation rate was still calculated the exact same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.

But the Federal Reserve certainly doesn't want everyone running around talking about "Jimmy Carter" and "stagflation" because then people would really start pressuring them to end their wild money printing schemes.

And without a doubt, what the Fed is doing is absolutely insane.  The chart posted below shows that the M1 money supply has nearly doubled since the beginning of 2008...

M1 Money Supply 2013

 

3. "Quantitative Easing Is Economic Stimulus"

How many times have you heard the mainstream media tell you something along these lines...

"The Federal Reserve decided today that the economic stimulus must continue."

There is just one thing wrong with that statement.

As I showed in a previous article, it is a total hoax.

In fact, a former Federal Reserve official that helped manage the Federal Reserve's quantitative easing program during 2009 and 2010 is publicly apologizing to the rest of the country for being involved in "the greatest backdoor Wall Street bailout of all time"...

I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.

Yes, quantitative easing has most certainly helped Wall Street (at least temporarily).

Meanwhile, median household income in the U.S. has fallen for five years in a row.

Meanwhile, the federal government is now spending nearly a trillion dollars a year on welfare.

Meanwhile, 1.2 million students that attend public schools in America are now homeless.  In fact, that number has risen by 72 percent since the start of the last recession.

4. "Obamacare Is Going To Be Good For Middle Class Americans"

There were three giant promises that were used to sell Obamacare to the American people...

#1 We would all be able to keep our current health insurance plans.

#2 Millions more Americans were going to be covered by health insurance.

#3 Most Americans would be paying lower health insurance premiums.

Well, it turns out that all of them were lies.

At this point, approximately 4 million Americans have already had their health insurance plans canceled due to Obamacare, and according to Forbes that number could ultimately reach 93 million.

And so far only about 100,000 Americans have actually signed up for Obamacare, so that means that the number of Americans with health insurance has dropped by about 3.9 million since the beginning of October.

Good job Obama.

Meanwhile, Americans all over the country are being hit with a massive case of sticker shock as they start to realize what Obamacare is going to do to their wallets.

According to one study, health insurance premiums for men are going to go up by an average of 99 percent under Obamacare and health insurance premiums for women are going to go up by an average of 62 percent under Obamacare.

And if you are a young man, you are going to get hit particularly hard.  At this point, it is being projected that health insurance premiums for healthy 30-year-old men will rise by an average of 260 percent.

But you don't have to be young to pay higher premiums.  As I mentioned the other day, one couple down in Texas was recently hit with a 539 percent rate increase.

 

5. "The U.S. National Debt Is Under Control"

The mainstream media would have us believe that the budget deficit is now under control and the U.S. national debt is not a significant problem any longer.

But that is not the truth.

The truth is that we are on pace to accumulate more new debt under the 8 years of the Obama administration than we did under all of the other presidents in all of U.S. history combined.

Every single hour of every single day, our politicians are stealing about $100,000,000 from future generations of Americans.  It is a crime so vast that it is hard to put into words, and it is literally destroying the economic future of this country.

Over the last 13 and a half months, the U.S. national debt has increased by more than 1.12 trillion dollars.

If you were alive when Jesus Christ was born and you had spent a million dollars every single day since then, you still would not have spent that much money by now.

And most Americans don't realize this, but the U.S. government must borrow far more than a trillion dollars each year.  Trillions more in existing debt must be "rolled over" just to keep the game going.

For example, the U.S. government rolled over more than 7.5 trillion dollars of existing debt in fiscal 2013.

So what is going to happen someday when the rest of the world pulls out and stops lending us trillions of dollars at ridiculously low interest rates that are way below the real rate of inflation?

Our financial system is far more vulnerable than we are being told.  We are in the terminal phase of the greatest debt bubble in the history of the planet, and when this bubble bursts it is going to be an absolutely spectacular disaster.

Please don't believe the mainstream media or the politicians when they promise you that everything is going to be okay.

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Wed, 11/20/2013 - 21:12 | 4175856 King_of_simpletons
King_of_simpletons's picture

Yawn. Is the sermon over ? Nothing will change ..... Has not changed in decades. Sheep is on Xanax.

Wed, 11/20/2013 - 21:23 | 4175879 Crash Overide
Crash Overide's picture

I think everyone is sick of it by now waiting for the end game. I guess it gives you more time to prepare though.

Wed, 11/20/2013 - 21:29 | 4175906 Dear Infinity
Wed, 11/20/2013 - 22:19 | 4176074 SafelyGraze
SafelyGraze's picture

UMD to ACC: am I being detained? am I free to go now?

ACC: don't play that little game with me, son

http://www.usatoday.com/story/sports/college/2013/11/19/maryland-acc-exi...

and no, tX, you are not free to leave the union. 

conference.

whatever.

Wed, 11/20/2013 - 22:34 | 4176121 markmotive
markmotive's picture

America's moral fiber is being destroyed through lies and and corruption.

http://www.planbeconomics.com/2013/11/lies-corruption-and-moral-decay-of...

Wed, 11/20/2013 - 23:12 | 4176220 TwoShortPlanks
TwoShortPlanks's picture

The 8 steps beneath the 5 lies.

USSA: Emergence of a Socialist State

http://twoshortplanksunplugged.blogspot.com.au/2013/11/ussa-emergence-of-socialist-state_20.html

 

Wed, 11/20/2013 - 23:51 | 4176323 MisterMousePotato
MisterMousePotato's picture

Bonus chart (prepare to have your cedulity strained):

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=A103600001&f=M

Things are far worse than they appear.

Thu, 11/21/2013 - 00:34 | 4176421 Freedumb
Freedumb's picture

Woops, looks like someone forgot to "seasonally adjust" this at the EIA.

Thu, 11/21/2013 - 09:28 | 4176816 Paveway IV
Paveway IV's picture

That chart you linked is retail sales by refiners. Because of the odd way the EIA classify sales, one would think retail consumption plummeted. That was made up by Rack sales for Retail. There's a way to chart all of them together on this page:

http://www.eia.gov/dnav/pet/pet_cons_refmg_c_nus_EPM0_mgalpd_m.htm

Consumption, overall, has been pretty flat for the last five years (suggesting unemployment and GDP figures are mostly fake). Gasoline continues to being consumed at around 8.7 MMBbl/day and is projected flat through next year.

http://www.eia.gov/forecasts/steo/report/us_oil.cfm

 

Wed, 11/20/2013 - 23:19 | 4176240 DeadFred
DeadFred's picture

Bless you, you lovely PM manipulators. 1240!!!

Wed, 11/20/2013 - 21:52 | 4175982 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, Crash Overide, that is the way I am thinking about all of this waiting as well.  More time to prepare.

Wed, 11/20/2013 - 21:24 | 4175886 Croesus
Croesus's picture

Forget all the lies that DotGov tells us...how about a list of "The Truths DotGov has Told Us?" 

(cue crickets chirping, and Jack Nicholson claiming "You can't handle the truth"

Wed, 11/20/2013 - 22:29 | 4176102 bonin006
bonin006's picture

Jimmy Carter said "life isn't fair"

Wed, 11/20/2013 - 23:32 | 4176273 TBT or not TBT
TBT or not TBT's picture

Man I hope the Dems let him and obozo have front row seating at the convention.

Wed, 11/20/2013 - 22:32 | 4176108 azzhatter
azzhatter's picture

One truth I'm sure of- Obama is busy swallowing Reggie Love's seed tonight

Wed, 11/20/2013 - 22:46 | 4176151 bonin006
bonin006's picture

The request was for truths actually told by the gov. Also, what you say is not correct, according to this source:

http://hillbuzz.org/why-wont-the-agenda-driven-media-report-on-barack-ob...

"According to the gossip, Barack Obama would never reciprocate in these encounters, but enjoyed being pleasured by older white guys.  Evidently, he is not a giver and is something of a selfish bathhouse regular when not being the current President of the United States."

Wed, 11/20/2013 - 23:22 | 4176250 DeadFred
DeadFred's picture

Rumor is that Reggie is old news but word on who's his replacement is being kept on the down low.

Wed, 11/20/2013 - 23:40 | 4176289 TBT or not TBT
TBT or not TBT's picture

Let's try to focus on him being demonic. I think his tendency to reciprocate ingratiously in gay sex is just a corollary of the bigger issue.

Thu, 11/21/2013 - 00:27 | 4176409 Zymurguy
Zymurguy's picture

I don't care if he blows goats... it doesn't change the fact that nearly our entire govt. is one big fucking tyrannical demon.

Thu, 11/21/2013 - 01:45 | 4176518 RafterManFMJ
RafterManFMJ's picture

Well I do care! What if he visits, and my goats are out?

Thu, 11/21/2013 - 04:10 | 4176621 StychoKiller
StychoKiller's picture

Umm, you'll have a bunch of smiling goats?

Thu, 11/21/2013 - 03:51 | 4176607 boogerbently
boogerbently's picture

Seriously, we couldn't even drum up any interest in the FACT he has no birth cert or school records.

Proving he's gay????? ...."Enough of these phony scandals, let's concentrate on the economy, and getting Americans back to work".

Wed, 11/20/2013 - 21:34 | 4175923 seek
seek's picture

They may be on Xanax, but we're getting to the point where the sheep don't have money to buy Xanax, or insurance, or pay the fine for not having the insurance.

The math is starting to get real obvious even to the slow ones that things can't work as they are.

Wed, 11/20/2013 - 21:55 | 4175994 DoChenRollingBearing
DoChenRollingBearing's picture

I am torn, torn I tellz ya, between next writing about BTC or the disaster that is Obamacare.  I'll get to them both.  

Two big fat softballs pitched my way...

Wed, 11/20/2013 - 22:05 | 4176029 seek
seek's picture

Speaking of BTC, you should generate a few more inbound addresses so blockchain snoops such as myself don't know about incoming donations.

(I was verifying paper wallets and my transaction logs today and happened to notice.)

Wed, 11/20/2013 - 22:11 | 4176053 DoChenRollingBearing
DoChenRollingBearing's picture

"Paper Wallets"?  Are those the things that carry fiats?  "Transaction Logs"?  I am reluctant to make a guess.  "Blockchain"?  That sounds kind of S & M, so I won't go there...

:)

Thu, 11/21/2013 - 08:32 | 4176756 therover
therover's picture

DoChen,

If I sign up for Obamacare and pay via Bitcoin, is it Obitacare ?

 

Wed, 11/20/2013 - 22:17 | 4176067 Crash Overide
Crash Overide's picture

Yeah seek, the sheep are getting hit over the head now... lol

Thu, 11/21/2013 - 10:27 | 4176983 SkottFree
SkottFree's picture

"According to the government, the percentage of Americans that want to work is now supposedly at a 35 year low..."

With the advent of Obama Free Shit I can see that this is now the new norm!

Wed, 11/20/2013 - 21:20 | 4175872 texas sandman
texas sandman's picture

#6  I'll pull out..no I promise.

 

At least that one doesnt need fancy charts and graphs.

Wed, 11/20/2013 - 21:39 | 4175944 max2205
max2205's picture

Burp....I am too drunk to care....burp

Wed, 11/20/2013 - 23:48 | 4176311 TBT or not TBT
TBT or not TBT's picture

Let me be clear. When we said you wouldn't get my pulsing glans inundating your tonsils, that was just pillow talk, baby. Come on. What are we talking about here?

Thu, 11/21/2013 - 02:49 | 4176565 Phil Free
Phil Free's picture

Just the Tip!

 

Wed, 11/20/2013 - 21:20 | 4175873 blindman
blindman's picture

what is a wep worker?
http://historymatters.gmu.edu/d/7031/
.

Wed, 11/20/2013 - 22:46 | 4176152 blindman
blindman's picture

if you are going to address the matter answer the question
or bugger off.

Thu, 11/21/2013 - 00:39 | 4176429 TheReplacement
TheReplacement's picture

In the instance provided, a gimmedat.  Apparently some gimmedats might want to unionize. 

FORWARD SOVIET!

Wed, 11/20/2013 - 21:49 | 4175874 JungleCat
JungleCat's picture

What difference at this point does it make? We have four dead American banks. Their resuscitation takes priority over Tyler's recitation. And the big banks have promised to be gentle with me.

Wed, 11/20/2013 - 21:22 | 4175877 johngaltfla
johngaltfla's picture

#7 Oil export data to China is classified and not reflected in our Census Bureau's balance of trade reports.

#8 40% of military spending is "off the books" and attributed to classified programs which still include the Afghan and Iraq wars.

#9 Government pension obligations on the books are fiction, reality = insolvency.

Wed, 11/20/2013 - 21:24 | 4175885 This just in
This just in's picture

What do you mean nothing will change!? On The Voice last night, the sponge headed emo fuck totally owned the uptight urban yodeller.  

This is fuckin epic.

I'm fuckin twittering right now!

Wed, 11/20/2013 - 21:28 | 4175902 Running On Bing...
Running On Bingo Fuel's picture

#7 - Juice are your friends.

Over.

Wed, 11/20/2013 - 21:42 | 4175930 Dr. Engali
Dr. Engali's picture

I'm not knocking Mr. Snyder, and I don't dispute the facts. But fuck, I've been reading this same shit for four years. I've seen this shit so many times that I recognized the charts before I even started the article. Waiting for the house of cards to tumble is exhausting.

Wed, 11/20/2013 - 21:47 | 4175972 Groundhog Day
Groundhog Day's picture

I'm actually depressed over this.  I really am considering anti depressants.  This shit is worse then chinese water torture.  If it goes beyond 2014 i'll have to check myself into a mental institution or cut myself off from all these financial blogs.  I don't see any other way for mental peace. I read this stuff from morning til night and can't take much more of it

Wed, 11/20/2013 - 21:54 | 4175995 seek
seek's picture

It'll make it past 2014. 2016, I'm not so sure, and by 2018 I'm 95% sure we'll have seen at least one major world-changing event (dollar devaluation, currency collapse, bail-in, martial intervention, etc etc) i fnot the whole shebang.

Wed, 11/20/2013 - 23:04 | 4176198 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

anti depressants? get out of here with that bullshit, that would be doing exactly what TPTB want you to do. buy some good weed and go to a chinese happy ending massage parlor once a week. most problems solved.

Thu, 11/21/2013 - 09:04 | 4176793 gonetogalt
gonetogalt's picture

My head was about to explode a few months back, anti-depressants seemed the only option...then I started taking fish oil capsules.  Immediate relief from the stress of the insolvable problems we read here everyday.  Anyone thinking about meds, and I'm thinking specifically about kids who are ritlan, etc, candidates should try this.  In the old days folks gave cod liver oil regularly to children, now I know why.

Thu, 11/21/2013 - 09:13 | 4176798 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

add spirulina and green tea as well. great for health in general. i take omega 3 pills and those everyday.

Fri, 11/22/2013 - 10:33 | 4180881 Kobe Beef
Kobe Beef's picture

+1. throw in some meditation and classical music for mental health.

Wed, 11/20/2013 - 23:29 | 4176267 DeadFred
DeadFred's picture

Not a chance it goes past 2014. If you look hard you can see a bunch of black swans out there and you only need to have one land. I think I see one dressed in holiday colors waiting for Thanksgiving to pass.

Wed, 11/20/2013 - 22:44 | 4176001 JungleCat
JungleCat's picture

I feel your pain and have felt the same way at times. You probably should cut yourself all from ALL tthe news, you' ll be happier. I know I am when I do.

Thu, 11/21/2013 - 04:18 | 4176626 Deacon Frost
Deacon Frost's picture

However, you must stay informed and prepared.

Do NOT follow this link or you will be banned from the site!