Hard Numbers: The Economy Is Much Worse Than You Know!

Hard Numbers: The Economy Is Much Worse Than You Know!

www.tampabay.com

Numbers that crunch

The real numbers, to most economically minded Americans, would be a face full of cold water. Based on the criteria in place a quarter century ago, today's U.S. unemployment rate is somewhere between 9 percent and 12 percent; the inflation rate is as high as 7 or even 10 percent; economic growth since the recession of 2001 has been mediocre, despite a huge surge in the wealth and incomes of the superrich, and we are falling back into recession.

Undermeasurement of inflation, in particular, hangs over our heads like a guillotine. To acknowledge it would send interest rates climbing, and thereby would endanger the viability of the massive buildup of public and private debt (from less than $11-trillion in 1987 to $49-trillion last year) that props up the American economy.

(visit the link for the full news article)



[edit on 10-5-2008 by DimensionalDetective]

This is an interesting read, and one with which I agree with. The folks setting policy and giving financial and economical national reports have been skewing numbers and hiding relevant data. The thing is, the vast majority of the populace KNOWS something doesn't jive with these numbers, as almost all of us are struggling to survive, save for the top 1-2 percent of super rich. Yet we constantly get these number games and propaganda spewed out how unemployment is low, the economy is just in a "little slowdown" and other nonsensical, fairy-tale garbage that insults our intelligence.

This article touches on some of that deception...

Moreover, the rising cost of pensions, benefits, borrowing, and interest payments — all indexed or related to inflation — could join with the cost of financial bailouts to overwhelm the federal budget.

Arguably, the unraveling has already begun. As Robert Hardaway, a University of Denver professor, pointed out last fall, the subprime lending crisis "can be directly traced back to the (1983) BLS decision to exclude the price of housing from the CPI. … With the illusion of low inflation inducing lenders to offer 6 percent loans, not only has speculation run rampant on the expectations of ever-rising home prices, but home buyers by the millions have been tricked into buying homes even though they only qualified for the teaser rates."

Were mainstream interest rates to jump into the 7 to 9 percent range — which could happen if inflation were to spur new concern — both Washington and Wall Street would be walking in quicksand. The make-believe economy of the past two decades, with its asset bubbles, massive borrowing, and rampant data distortion, would be in serious jeopardy.

www.tampabay.com
(visit the link for the full news article)

reply to post by DimensionalDetective

Thanks again for being a true patriot, and exposing all of this important information. May you get more Stars + Flags, as this story develops. You already got my support, I'm sure of that, indeed.

My god, the most disturbing part.... No one BELIEVES there is anything wrong!!!! Unless you are one of the families that lost jobs and are being turned away from food boxes, eh?

Last night I had this Aussie ATS dude posting replies to my post showing gov stats that show that 85% of Americans are living above the poverty line. WTF is that !?!?!??!!?!? Did anyone see that? Pissed me off.

reply to post by LostNemesis


My research shows that one in eight Americans are living below the poverty line. For a single person such as myself, that is less than about ten grand per year. I can't even pay rent with that, much less have any other money for survival. And on top of that, someone making that little still has to pay income tax!

I made about twice the official poverty rate, and still wound up homeless last year. And that was not due to irresponsibility. For example, I never turned on more than one light at a time, and kept my thermostat glued to 55 degrees all Winter. (I would have turned it off if it hadn't been for the lease contract.)

So by that measure, I would say that in all practicality, half of Americans are poor. Then on top of that, you have to factor in all of the people who have not yet been pushed into the abyss, and are still surviving on a terminal credit line.


[edit on 5/10/0808 by jackinthebox]

me and my wife are both disabled and as such we have a fixed income of about 12 grand a year so i know what it means to barely scrape by we save money by eating only once a day. the economy is compleatly screwed.

Hey Jack. I feel ya. I absolutely burned/flamed out of the dialysis 'industry' two years ago after 22 yrs of service doing clinical and biomed equipment repair. As usual my timing is about as good as Mr. Magoos driving. I bounced around a couple jobs in the meantime, a gig at a bank doing lethally monotonous high speed statement machine op, then a gig with hhrgregg doing straight commision (aka indentured servitude). Fortunately I have some savings and a home equity loan to fall back on.
Problem is I keep getting sick, bad sick. I'm 45. I've applied to dozens of jobs in the Cleveland area which is depressed beyond belief now. Crime is rampant and foreclosures are in nations top five. I wake up every day trying to be optimistic and pray my tail off. To no avail. It's tough as nails out there right now. Everything I've worked for in the last 25 yrs I see slipping away. I have two dogs I rescued. And have been too ill to properly walk them. John is not in a happy place right now. I listen to police scanner to while away the time in the background. Every other week someones taking/ or attempting to take a triple Monty off one of our myriad of bridges. I don't think it's ever been this bad before. Sigh.

reply to post by krill

...we save money by eating only once a day.

And of course that will cost you in long term-healthcare as well as shorten your lifespan.

reply to post by jackinthebox


well im coverd for health care but i think your right about our lifespan i just hope i die first so i dont have to live without my angel. selfish i know but its how i feel.

reply to post by krill


That reminds me of a news story I once heard. I wish I had a link to it.

The daughter of an elderly couple, found her parents deceased in their bed. They had both expired of natural causes, while they slept, on the same night. Brought tears to my eyes. Actually, it is right now too thinking about it.

reply to post by krill

well im coverd for health care ...

Someone is paying for it though. Not that you aren't entitles though, please don't misunderstand. Just another inflation factor. They cut back so far that it winds up costing the people more in the long run, but isn't that there whole plan really anyway.



[edit on 5/10/0808 by jackinthebox]

You do realize those figures are based on calculations that are like a hundred years old, right?

Dangit krill! I hate to cry. Dangit! Just moved me to tears. God bless you and your angel. Dangit!

Of course people will not realize anything is wrong when the leaders are handing you down sugar coated lies. The wars, the useless spending by consumers, and corporate greed is what spiraled US out of control. Nothing
to do now but to ride out the storm.

reply to post by krill


I am sorry to hear that! I am sorry to say this but it will only get tougher from here before it gets easier.

Originally posted by DimensionalDetective

Hard Numbers: The Economy Is Much Worse Than You Know!

www.tampabay.com

Undermeasurement of inflation, in particular, hangs over our heads like a guillotine. To acknowledge it would send interest rates climbing, and thereby would endanger the viability of the massive buildup of public and private debt (from less than $11-trillion in 1987 to $49-trillion last year) that props up the American economy.

(visit the link for the full news article)
[edit on 10-5-2008 by DimensionalDetective]

I suppose the current euro-dollar ratio fully supports your theory. I believe its around $1.60 per euro. Pathetic!

Oil is trading at around $120 per barrel. Even more pathetic!

I never used to take economics seriously but I will admit its getting quite scary. Try to imagine what it's like for americans living abroad or even tourists venturing to europe. I think it will be a very slow season, if any!

i compleatly understand what your saying jack and i agree, and jpm thanx for the kind words may the gods bless you and yours aswell. and equinox yeah i know it will get toughter were expecting that we allready started stockpiling ramen noodles, soup and canned goods.

okay, I told people so...in my life I happened to meet a few masters of money. The Rothschild family, are the true money masters of this world. They have owned it for hundreds of years. But they play by a certain set of rules, and once you learn these rules, you can learn to MASTER MONEY. A lot of people have been socially programmed to believe that money is the root of all evil and blah blah blah.
The fact is money is simply energy and 10 percent of the richest people own 90 percent of the world. Whereas 90 percent of the people own less than 10 percent of the world.
As a spiritual person, I don't believe I truly own my properties. They are merely atoms in the universe...its absurd to me to think that I can own atoms. But anyway that doesn't stop me from beating them at there own game.
What it will take is not bloody revolution, but merely a revolution of the mind.
Think about it...
If you were to learn how to manage risk and invest the right way, and truly learn how to master money, with the same effort you put into working for someone else, you would be able to amass wealth.
Wealth doesn't necessarily equal greed, but most people don't understand how the mind works. The richest people do and they exploit that fact. The evidence?
Look around you..
how long could you survive without a paycheck?
A year?
A month?
Two weeks?

Its time people wake up to the truth about money. The faster you do it the quicker their pyramid will topple. They fear this...
we need to learn to play by their rules and beat the elite at their own game.
Screw your negative energy and get with the program...

easy business ideas

look around you what do people need, or more importantly..what are they about to need. Figure this out and you golden..dont focus on money, focus on making change on a large to medium scale.

large apartment complexes(i.e. 2.5 mill-15 mill) are easier to purchase than your average single family home. Don't believe me? Then you haven't done your homework.

In any market, there is a way to make money. Right now you could make a killing investing in china. Just don't go along with other people's plans if you haven't done your homework.

The second most important part of business, but not less important, is DUE DILIGENCE!
The reason 90 percent of small businesses fail, is that people don't do their due diligence. What is due diligence? Simply doing all of your homework.

Its easier, and more rewarding, IMO, to work for yourself than for someone else.
And a lot of the people I see on here have brilliant minds!
Simply apply your mind power from becoming free from being a wage slave!

Play by their rules...then we could all pool in and create a counter surveillance agency for big bro...
think about your options, create a vision, and make it reality...
its not magic, but then again it is

I agree that the economy is screwed. When we see $5.50 a gallon gas, this summer, there will be blood in the streets.

I'm actually doing pretty good financially, but it is because I have a full time job, and 3 part time jobs, and I work 7 days a week. My wife has a good job too. If she quit working we would have a greatly diminished lifestyle.

As the food bill increases it leaves less for everything else. I can imagine how hard it is for people that don't have the ability to "work through it". With the amount of people depending on social security, the inflation kills them. When groceries cost 50% more than last year (which is pretty accurate in my area) and your check is the same it's hard.

We will reach 3rd world status soon. The petro dollar is dead this year.

2010 we will see the Amero as the Dollar becomes toilet paper.

i believe your numbers are accurate but the poster that 1 in 8 is below poverty might be right in his area but where i live if you ain't a doctor or lawyer or a drug dealer chances are you below poverty line. the management jobs at local factories is 50 grand. cops make 17 grand
most of us make 30 grand or less