When All Else Fails, Change The Math: Japan To Fudge GDP Calculation, Will Add Up To 2% To GDP

Tyler Durden's picture

Proving once again that when it comes to fudging numbers, Japan (which previously was best known for changing the minimum legal radiation absorption dose on a daily basis following the Fukushima disaster, anyone remember that?) is leaps and bounds ahead of even China and the US, the Nikkei reports that the Japanese government will change the method it uses to calculate GDP, and the result will be an "increase" in the country's economic output by JPY 5-10 trillion. As a reminder, Japanese GDP is currently JPY 540 trillion, so in essence the math fudge could add about 2% to Japanese "growth." Accordingly, the main difference is inclusion of interest rate spread earned by financial institutions: we were wondering how long until blowing out CDS spreads would add to sovereign GDP. We now know. The new method will be applied to figures to be announced Friday. At least Japan has not yet adjusted its GDP pro forma for foreign currency gains vis-a-vis the dollar (there is time). And that's how things are done in a Keynesian world in which everything is now fraud, lies and relentless number fudging. Furthermore, we are 100% certain no analyst will look at the number on an apples to apples basis, and the result will be a miraculous Japanese golden age. Expect this experiment in excel spreadsheet modelling to come to a developed banana republic near you very soon.

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GeneMarchbanks's picture

Harikiri, bitchez!

Mr Lennon Hendrix's picture


Starring- Yoshihiko Noda

It's Alive!

GeneMarchbanks's picture

Noda ... for now.

See Kyle Bass' Japanese Finance Ministers Index for more details...

iDealMeat's picture

OT:  Sorry to thread jack..

Why Rod Blagojevich got 14 Years today.


redpill's picture

Pretend Economics, it's the 21st Century way!

sqz's picture

I'm surprised sovereigns don't DVA their sovereign debt and add it into GDP... They are missing a trick from their own banks!

JustObserving's picture

We have pretend money - so why not carry that pretense a bit further. What harm can that do? Bernanke can always print everyone a million if needed.

FEDbuster's picture

More doublespeak from the Ministry of Truth (and Numbers).

Strider52's picture

Ann Barnhardt said it best (sorry if you guys already caught this, it's 6 days old)

Ann Barnhardt: Well that is the point of this. We are now living in a lawless, Marxist, Communist, usurped, what used to be a representative republic but is no more. This is no longer a nation of laws. This has now transformed into a nation of men. It doesn’t matter what crime you commit. In the case of Jon Corzine, this man has stolen in excess of a billion dollars. I think by the time it is all panned out it is going to be closer to $3 billion of customer funds that he stole. Why did he do it? Is he stupid? Well, of course he’s not stupid. This is a former head of Goldman Sachs. This man doesn’t have a low IQ per se. Why in the world would a man wake up in the morning one day and say you know what, I think I am going to steal all the customer seg funds in this FCM that I’m running, which is the biggest FCM in the country. Yeah, that sounds like a good plan. No. Why would a man like that even engage in a nefarious plot like this? Because he knew going into it he could get away with it. And the reason he could get away with it is he is in tight with the Obama regime. He is one of Obama’s highest fundraisers. Earlier this year Jon Corzine had a fundraiser dinner at his New York City apartment for Barack Obama where it was charged at $35,000 a plate. Okay? He bundled high six figures for Obama in one evening! He is a crony of the regime. This is Marxist Communism. There is no rule of law.

Lawless. Ain't it the truth? Complete transcript of Ann:


LouisDega's picture

And also starring Raymond Perry Mason ironside Burr

tempo's picture

the biggest story is that BOA has moved its $77 trillion derivative investment to its banking arm. Under a 2005 admendment to the bankruptcy law, losses from derivative trading have priority claims over customer deposits (MF Global deposits go to JP Morgan) in the event of a banking failure. A 5% loss on BOA derivatives will blow up all financials and allow the US Government to control/claim all cash, bond, equity investments making the FDIC/SIPC guarantees meaningless. Thats the threat that will force Germany to fund the ECB.

jdelano's picture

If this is accurate could you please link to the law?    

hedgeless_horseman's picture



BOA has moved its $77 trillion derivative investment to its banking arm...losses from derivative trading have priority claims over customer deposits

Hard to see how BAC's actions are not pre-meditation of and preparation for mass murder.

Mentaliusanything's picture

Correct BAC has seen the future and hedged accordingly and that is why it is beyond urgent to separate "Investment Banks" from "Savings Banks"

You have no insurance if the Insurance company is bankrupt.

But who would have seen it coming ? ----- Answer every one on the inside

way-out-west's picture


Can someone smarter than I show us where the language is that allows this?


Text: http://www.gpo.gov/fdsys/pkg/PLAW-109publ8/html/PLAW-109publ8.htm

PDF: http://www.gpo.gov/fdsys/pkg/PLAW-109publ8/pdf/PLAW-109publ8.pdf But for the life of me I can't decipher which sections would allow a Bank to "put derivatives before depositors".

Thanks in advance. This forum is the best.


tempo's picture

The story was carried on www.marketticker.org yesterday and the loss by MF Global deposits being transferred to JP Morgan is also headlined. Its nearly impossible to believe BOA has traded $77 trillion in derivatives. Its just a nightmare.

onebir's picture

Terrifying & incredible BoA was allowed to do this...

fonzanoon's picture

I believe that BoA is being fought on this topic by the FDIC and has notg actually done it.....yet.

EscapeKey's picture

FDIC rejecting the request of a big bank?


Ruffcut's picture

That's alot of fudge. Glad to see this fudge packing industry is doing well.

youngman's picture

If you can´t beat em....saki em....

LawsofPhysics's picture

And why wouldn't they? There is no rule of law anymore, no fraud is prosecuted.  Just another step in the decoupling of all things paper from all things physical.  Boring world indeed.

Divided States of America's picture

Ever since the end of WW2, the Japanese have become a subservient bunch. They wont care even if the government continues to take them up the ass. Japanese made cars are not as highly renowned anymore. Their only economic advantage left from Japan is the quality of the porn they produced. YAMETE!

CvlDobd's picture

But sorting through the censored stuff sucks.

catacl1sm's picture

BAH! Eastern European porn is where it's at!

Totentänzerlied's picture

"There is no rule of law anymore"

There never was, it's the Big Lie of republicanism.

PrintingPress's picture

Can they print fudge?

HedgeAccordingly's picture

We cant print OIL.. but we can print the dollar's to buy oil with = 200 a bbl - http://hedge.ly/rMEWEC 

Barnaby's picture

Germans can. It's called the skid-Mark.

UGrev's picture

It's called "The Fuk-u-shima fudge, baby!"  Can't win? move the line and laugh to the bank. 

EscapeKey's picture

Funny how all these model changes always favour the establishment.

knukles's picture

"Fiddle about, fiddle about, fiddle about."
          -apologies to the Who

surf0766's picture

It has been that way here for years.

GeneMarchbanks's picture

Since the 90s at least. Tobashi... Standard practice among Japanese corporates.

Cassandra Syndrome's picture

Rounding error perhaps?....

SilverIsKing's picture

Sounds similar to a company that books interest income on bad loans.

SheepDog-One's picture

Ah so! So EASY! Just flat out make up numbers...why cant the US and Europe just do this? GDP is 6%, unemployment 1.2%, every american is a multi billionaire...FIXED!

Can I get my Nobel in economics now please?

El Viejo's picture

Nobel prizes have been devalued.



CrimsonAvenger's picture

Sure - we'll mail it to you. Oh, wait - USPS is bankrupt - you'll have to come pick it up.

Sophist Economicus's picture

Hey, don't knock this.   I just downloaded my bank statement, tweaked a few inputs and am now 4% richer!    Gonna go buy something pretty now, see ya


In case this doesn't work, can somebody call the PEW Research team and send them to my prison cell ....

El Viejo's picture

Doesn't China already fudge theirs??

Barnaby's picture

Does the Dalai Lama poop saffron?

JustObserving's picture

Dagong, the Chinese rating agency, claims that we fudge ours by  just 200%.  That leaves a lot of room for the Japanese to upgrade:

"If we exclude the factor of virtual economy, the U.S. actual GDP is about 5 trillion U.S. dollars in 2009, per capita GDP about $ 15,000. Meanwhile, the total domestic consumption was 10.0 trillion U.S. dollars and government expenditure was 4.5 trillion U.S. dollars."


SheepDog-One's picture

Oh, I see we do already do this...my bad.

Dr. Engali's picture

"Expect this experiment in excel spreadsheet modelling to come to a developed banana republic near you very soon".

Hmmmm.... hedonic regression ....seasonal adjustments......excluding food and energy.  We would never have anything like that here.

Barnaby's picture

Hey, printing staved off kodoku-shi for an entire generation. What could be the harm?

razorthin's picture

Wow, they just blatantly put out there in plain sight now - all the governing bodies.  More fodder for the coming obliteration of the plutocratic few by the uncountable masses.