"There are three kinds of lies: lies, damned lies, and statistics."
~Mark Twain, autobiography, 1904
Another way that logic is turned on its head is when the bankers, politicians, and economists (who are trained in schools financed by bankers), compare GDP (Gross Domestic Product) to our nation’s debt! What do the two have to do with one another? Very little!
What’s far more important is our nation’s debt compared to our nation’s income. After all, it requires income to service debts, not some trumped up measurement of production. Even using our crooked $14 Trillion current debt number, it is 583% of our nation’s $2.4 trillion annual income:
Why do I say that number is crooked? For starters our government refuses to use GAAP accounting like they demand of companies within the United States. This means that we are failing to acknowledge accounts payables – future obligations and other promises that are not currently on the books, that’s why it’s called the “current” account deficit. Adding future obligations catapults the $14 Trillion total into the $60 Trillion (conservative figure) to $100 Trillion + range ($322,000+ per person, $1.3 million for a family of four).
Additionally, GDP is supposed to be the measurement of goods and services produced in this country. This figure is VASTLY overstated for two primary reasons – this makes our debt condition all the more ominous:
1. Credit money production and derivatives, aka financial engineering, should be subtracted from GDP as creating a debt dollar only pulls future demand forward into the here and now and thus creates a future obligation. This is like taking a cash advance on a credit card and counting it towards your personal income! It’s not income, it’s a loan! This single effect has masked the fact that the United State’s real output of goods and services has not actually increased in the past decade at all. This overestimates the value of our GDP by roughly 30% to 40%.
2. Our GDP is measured in dollars and not in actual goods or services. Thus if the value of the dollar falls, it will appear that more goods and services are being created than actually are (apparent growth). For example, if the value of the dollar falls 5% in real terms, but GDP supposedly increases 3%, then real growth is actually -2%. The BEA (Bureau of Economic Analysis) and BLS (Bureau of Labor Statistics) calculate supposed inflation and then use a “deflator” to adjust the GDP number, but due to errors in the way they calculate those numbers, the net effect is to understate inflation and that overstates GDP.
The net effect of these errors is that you are being fed disinformation about the state of our economy, and about our ability to service our debts. Our nation is functionally insolvent as are large private banks.
Join us on our
Share this page with your friends
on your favorite social network: