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News Link • Economy - Economics USA

Symptoms Don't Lie

• The Daily Bell
 When the data says one thing and the symptoms continuously say another, it makes sense to question the reliability of the instruments. This would be particularly true if the instruments are furnished by a party with a stake in a favorable diagnosis, say an insurance company on the hook for treatment costs. The same holds true for the U.S. economy. Although our government-supplied data suggests we are experiencing low inflation and modest economic growth, the economy shows symptoms of low growth, rising prices and diminishing purchasing power.

In my latest commentary I discussed how the Big Mac Index (The Economist magazine's 30 year-data set on Big Mac prices) provided strong anecdotal evidence that inflation in the United States is higher than official figures. More information has come in since then that tells me the same thing: that Americans are downsizing their lives as their incomes fail to keep pace with rising prices. These symptoms are at odds with the widespread belief in an accelerating recovery that has resulted in braggadocio in Washington and euphoria on Wall Street.

1 Comments in Response to

Comment by Ed Price
Entered on:

A reliable group of instruments is the Ten Commandments. Further, more specialized instruments can be found in the books of Exodus, Leviticus, Numbers and Deuteronomy in the Bible. Additional instruments can be found throughout the whole Bible.

The problems that America is having, have been predicted for nations that act as America acts, by the above instruments, at least in general, a long time ago. Read the Bible, compare what you read with the USA, and see how reliable it is as an Instrument.

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