Bankster Crime

Exposing Fraud in the Banking System

1/22/24 How the Government Constructs Positive Economic Data, Its All Made-Up

Featured Story

Tyler Durden's Photo

by Tyler Durden


A startling disconnect as we edge closer to the 2024 general election: On one hand, so-called “experts” parade optimistic economic reports, but for the average American, the story is starkly different.

 In heated debates, economists squabble over whether the public is hoodwinking pollsters or if mysterious forces are at play.

Our guest columnist explains how the government is playing a smoke-and mirrors-game with the economy.

 It’s more subtle than making up numbers.

They’re pumping up GDP and job figures through hefty spending and hiring. Unlike the struggling private sector, the government can spend tax dollars and create deficit-financed jobs without having to prove their worth:

The following article was originally published by the Mises Wire. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

As the 2024 general election gets closer, Democrats and proestablishment pundits are growing frustrated with the American public for not feeling as good about the economy as the so-called experts say they should. The elitism of this view aside, it is true that traditional economic indicators are pretty good and that, at the same time, people aren’t feeling good about the economy.

Center-left economists have been locked in a debate over whether people are lying to pollsters about experiencing hardship in what is actually an excellent economy or are struggling due to mysterious noneconomic factors.

Others, like Paul Krugman, have decided to blame Donald Trump and his supporters—framing the widespread economic pessimism as a MAGA ploy to win back the White House—a theory Jonathan Newman showed is disproven by the very data Krugman cites.

So, what’s really going on here?

Daniel Lacalle laid the truth out well in his recent appearance on Radio Rothbard. In short, the government is making the economy look a lot better than it is.

Those who argue the economy is doing great usually cite economic growth as measured by gross domestic product (GDP) and various measures of the employment rate.

And while on the surface it seems to make sense to use these indicators to get an idea of how the economy is faring overall, there’s one big problem.

None make any serious distinction between private economic activity and government spending.

But there is a big difference between the two.

Government, unlike any other entity in the economy, can simply take money and resources from others to spend on things and hire people. Whether or not the spending brings people value is irrelevant.

It’s the private sector that’s responsible for producing goods and services that actually meet people’s needs and wants. So, the private components of the economy have the most significant effect on people’s economic well-being.

And according to Lacalle, the private sector of the US economy is already experiencing a recession. However, the high levels of government spending are artificially boosting the GDP above the technical recession threshold. Similarly, government hires have featured disproportionally in the recent seemingly positive jobs reports.

That’s why we’re seeing a divergence between the positive economic data in the headlines and the more negative sentiments of the American people. It’s not a mystery, and it’s not fake news or partisanship. It’s the government.

But don’t expect any politicians, center-left economists, or proestablishment pundits to admit it. All insist the government can boost economic growth and employment—especially during times of war. Take, for instance, the myth that World War II brought an end to the Great Depression. What happened back then is similar to what we’re dealing with now, albeit on a much larger scale. The government spent and hired enough not only to hide the destructiveness of the war, but also to make it appear like a good thing for the economy.

That is the same trick at play today. Because the government printed trillions of dollars to hide the economic damage of the covid lockdowns, a tremendous amount of malinvestment has locked in a major market correction. Now, as the economy begins to falter, the government is again spending and hiring on a massive scale to keep up the illusion of a strong economy.

But most Americans can tell something’s off. And they’re right.

Be gentle with your skin. Our soaps are kind to your skin and create a creamy, silky lather that is nourishing. Small batches are made by hand. We only use the best natural ingredients. There are no chemicals, phthalates, parabens, sodium laurel sulfate, or detergents. GraniteRidgeSoapworks

To Get 20% Of Use Coupon Code Bankster20 Or HNews20

Don't Miss

3/1/24: The Fed Pretends to Send a Warning to Wall Street’s Mega Banks on Derivatives and Counterparty Risk

By StevieRay Hansen

BanksterCrime: By Pam Martens and Russ Martens: On Tuesday, the Vice Chair for Supervision at the Federal Reserve, Michael Barr, delivered a speech at a risk management…

Read More

2/29/24: David Boies, Is the Epstein Beast Banking System a House of Cards? Jamie Dimon Just Paid $87 Million for This. It Was Constructed on the Backs of Child Sex Trafficking Worldwide

By StevieRay Hansen

By SRH, Is the Epstein Beast Banking System a House of Cards? It was built on the backs of child sex trafficking around the world….

Read More

2/27/24: all-American” Companies That Are Now Internationally-Owned

By StevieRay Hansen

By SRH, There are many well-known enterprises that are considered typically American. These firms provided some of the best services and products the world has…

Read More

2/27/24: Jamie Dimon and Nine of His Top Executives at Jpmorgan Chase Have Dumped Over $150 Million of Their Jpmorgan Stock in Last Two Months

By StevieRay Hansen

By Pam Martens and Russ Martens: According to Form 4 filed with the Securities and Exchange Commission by corporate insiders, ten of the key executives at the…

Read More

2/26/24: Why Are Some U.S. Lawmakers Opposed to CBDCs?

By StevieRay Hansen

By SRH, Update: Government oversight, management, and regulation are applied to digital currencies called CBDCs. There are concerns that these measures could pave the way…

Read More
Posted in

StevieRay Hansen

In his riveting memoir, "A Long Journey Home", StevieRay Hansen will lead you through his incredible journey from homeless kid to multimillionaire oilman willing to give a helping hand to other throwaway kids. Available on Amazon.


Your email address will not be published. Required fields are marked *