Conspiracy Theory

Rather ironic that the last thread with this title seems to have disappeared from the boards.....just when we were discussing freedom of speech.

Yet another way the government hides inflation
By Bill Fleckenstein
The government may be the only institution that can say a price increase isn’t a price increase. Here’s how it masks the inflationary pressures building. As the government loses credibility on this subject, which I expect (the process takes time, but is almost impossible to repair), the erosion of confidence will impact financial markets bearishly and precious metals bullishly. It's part and parcel of the change in psychology that occurs in bear markets generically. And it is all the more likely in this bear market, given the insanity that's been perpetrated and perpetuated by the Fed and the statisticians in the government. That erosion of confidence will bring about a transformed environment, in which stocks bypass being "fair-valued" on the way to being downright cheap.
http://moneycentral.msn.com/content/P73981.asp

Not surprising really, Fed schmed.

Lies, God damn lies and statistics.

Another ironic point on this topic is that the Enron's of the world are small fry playing with their figures, compared to the US govt.

WHERE THE HELL ARE THE PPI FIGURES - Computer problems my backside.

I dont know whether the government is hiding inflation. For one thing, 'inflation' is not a small, selective basket of *consumer* goods. But the government has never claimed to measure inflation, they measure consumer prices - huge difference.

If they really measured inflation they would include all prices, that goes for crazy asset classes like the stockmarket and property.

With the largest asset class in the UK exploding in price by 15-25% PA how can anyone really say inflation is 2%?

It also brings into question the whole GDP figures, because as far as I'm aware, the nominal GDP figures are deflated by dodgy measures of inflation. Then throw in the hedonic indexing business that counts unrealised dollars.. suddenly the U.S. trade and budget deficit as a % of GDP is much larger than it really is..

maybe I'm wrong.. if so put me right

I agree with you Ford.

The only reason Tony b'Liar hasn't taxed statistics yet (eh?) is because he'd be facing the biggest tax bill this century.

If the govt doesn't like the facts, they simply get the Stats for Beginners book out and re-represent the figures.

Unemployment figures are the obvious example. The govt need to show falling unemployment, so they stash all the kids of to Uni (and tax them 30k for it!), and all people who have been unemployed for less than 6 months. blah blah blah, lie, lie, lie

It's what government is all about.
The prime imperative is to cling to power, whatever the cost to the rest of us.
The second imperative is to keep as many feet in the trough as possible.

That's not just applicable to gvot's.think about corporate behaviour.
Cheers

Gov't conspires to manipulate every statistic possible, the 'conspiracy' regarding GDP, is that it is meaningless, yet is haled a statement of economic strength. A fat **** yank who fills up his SUV, stops to pick up a six pack, swallows down a bucket of dog burgers, etc, etc, has just contributed to the US GDP total, but exactly how 'productive' was he? GDP grows because the liquidity bubble is pumped full, and then...?